Sales of Amazon’s Third-Party Sellers Jumped 50 Percent

Amazon.com, Inc. (NASDAQ: AMZN) announced that it delivered more than two billion items for third-party sellers in 2016, which is 50% more items than that in 2015, breaking the company’s own holiday sales record. The strong results give hope to investors that Amazon may report a profit for the fourth quarter.

Peter Faricy, the vice president of Amazon Marketplace, said in a statement that sales from third-party retailers were “record-breaking” in 2016. The company expected that the operating income in the fourth quarter to be between zero and $1.25 billion, with spending on warehouses and video production may weaken profits.

For Fulfillment by Amazon (FBA) service, the company said that users of FBA increased over 70% in 2016. FBA deals with packaging and shipping for merchants, which also help Amazon keep control of customer satisfaction and give an access to third-party sellers to benefit from Amazon’s Prime program.

The company said that on Cyber Monday, more than 28 million items were ordered from third-party sellers in 2016, compared with the 23 million the same period last year.

“As a growing business and brand owner, the Amazon Exclusives and FBA programs helped us accelerate our business to achieve more than 100 percent growth in sales this year,” Ben Arneberg, the co-founder of Willow & Everett, said in the statement.

“The FBA service handles the work of packaging and shipping orders to customers, which gives us the time to create new products that customers will love. We had our most successful Black Friday and Cyber Monday ever, and on Prime Day earlier in the year our sales boomed more than 10x compared to last year,” Ben added.

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