Does Amazon Increase Total Sales?

Info
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Source: NP Digital
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Date: December 2024
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Category: Ecomm & User Behavior
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Study Methodology: We analyzed 18 ecommerce websites.
Many brands worry that selling on Amazon will cannibalize direct website sales. This data looks at what actually happens after businesses expand onto Amazon. It tracks sales performance over a 12-month period. The results show whether Amazon acts as a growth channel or a replacement channel.
Essential Statistics
- Total sales were indexed at 100% before joining Amazon.
- Sales increased to 103.9% within the first 3 months.
- Sales grew to 114.7% between months 4 and 6.
- Sales peaked at 135.8% between months 7 and 9.
- Sales remained elevated at 128.1% after 12 months.
Key Takeaways
- Amazon increased total sales rather than replacing website revenue.
- Sales growth accelerated after the initial onboarding period.
- The strongest lift occurred between months 7 and 9.
- Marketplace exposure expanded overall demand.
- Amazon functioned as a complementary channel.
Actionable Insights
- Use Amazon as a growth channel, not a defensive move. The data shows Amazon expands total revenue instead of cannibalizing existing sales.
- Plan for a ramp-up period. The largest gains occurred after several months, so brands should commit long enough to see full impact.
- Optimize Amazon listings aggressively. Strong performance mid-cycle suggests optimization compounds over time.
- Maintain strong direct-to-consumer efforts. Website sales remained a core contributor even after Amazon launch.
- Track blended ROAS across channels. Evaluating Amazon separately may understate its total business impact.
Amazon doesn’t steal your customers. It exposes you to new ones. The brands that win treat it as expansion, not competition. – Neil Patel

