- There are plenty of companies in the Amazon ecosystem that help sellers gain more visibility on their products.
- Insider collected nine prominent names in the Amazon advertising and supply chain market, and the VCs funding them.
- Major startups and companies include Pattern, Feedvisor, and Downstream.
- Visit Insider’s homepage for more stories.
It’s no secret that Amazon has been successful as of late: The retail behemoth’s 2020 third-quarter earnings report outlined a 39% jump in North American revenues as consumers stayed home and ordered more products for delivery. Non-Amazon products — goods sold by third-party sellers — represented 54% of items sold in the third quarter, the company reported.
For these sellers, Amazon functions much like a search engine, and the competition to rise to the top is fierce, said Lori Barzvi, CEO and founder of footcare company LOVE, LORI and inventor of Amazon bestseller My Solemate.
“I started selling on Amazon in 2014, when there wasn’t much competition — but you still had to understand how the site’s algorithms worked, how to identify and source the right products, and how to reach your audience,” Barzvi said.
“Learning how to do that and do it well took me about two years of taking courses and talking to and learning from other Amazon sellers. You have to stay on top of the changes and continue to learn, otherwise you will get left behind,” she added. But today she works with a company that specializes in sponsored ads.
Barzvi’s revenues, and those of thousands of other sellers like her, are boosted by accentuating the visibility of their products through such ads and other means.
Amazon’s success has turned the companies who help sellers into juggernauts of their own: According to company data, Amazon advertising platform Quartile, for example, manages more than $1 billion in sales for more than 2,300 brands.
Advertising revenues are a growing source of income for Amazon itself: In the third quarter, the category largely composed of these funds grew more than 50% to $5.4 billion.
Amazon offers a wide range of advertising products for sellers to choose from. However, for most small and medium-sized businesses, the process will begin much as it does on Google — with keywords that have an enormous impact on how all the rest plays out.
Here’s a look at some of the top companies steering brands through the Amazon selling experience, and the venture capitalists that fund them.