An analysis of UK-based Amazon sellers by online consumer goods company Thrasio has revealed that there could be 2,795 UK-based sellers turning over at least £83,334 per month on the platform which translates to more than a million pounds per year.
The categories most likely to have million-pound sellers include grocery (667 sellers), beauty (533), home & kitchen (370), pet supplies (279) and electronics & photo (256). PC & video games (1), jewellery (1), watches (2), shoes & bags (3) and lighting (3) were the categories least likely to have sellers turning over more than a million pounds a year.
The data also reveals the surprising ways that sellers can create thriving online offerings. 31 million-plus sellers focus on dog biscuits and snacks, 20 offer chocolate boxes and gifts, and 18 primarily sell face serums.
Amazon’s platform provides sellers with a number of routes to grow their business, and they can take advantage of its fulfillment network (FBA) to rapidly scale their logistics in line with demand. Thrasio’s research suggests that million-pound sellers are leveraging FBA for at least 32% of sales.
After growing their brands, many sellers will look to exit with companies like Thrasio, which can then apply optimizations, supply chain efficiencies, and marketing tactics to help those brands grow.
Thrasio has created dozens of Amazon multi-millionaires via acquisitions of sellers which turnover more than a million each year. In the last six weeks, three UK retail millionaires have been created via Thrasio acquisitions.
“The UK is becoming a nation of online shopkeepers – entrepreneurs powered by online marketplaces and experts in remote working, digital marketing, customer service and supply chain,” says Jim Mann, director of acquisitions at Thrasio. “Our research shows the scale and breadth of the e-commerce and entrepreneurial boom. These brands are just the start. There are thousands of online businesses and entrepreneurs that are thriving and growing into the next generation of retail success stories.”
Mann adds: “In the past, building a multi-million-pound retail offering took many, many years and a lot of startup capital. Now, practically anyone, in any city, town or village in the UK can become a retail titan. Then, when the time is right, they can pursue an exit. At Thrasio, we offer competitive sums of money on exit, while our world-class team helps brands reach new heights. Over the next few years we’re likely to see hundreds or thousands of new millionaires, creating a virtuous circle where entrepreneurs create new businesses and inject wealth into their local economies.”