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Almost every day, I hear or read about someone complaining about the demise of the mom-and-pop store. The folks complaining are missing the whole story—the mom-and-pop stores haven't disappeared—they've moved online—and they're doing better than ever. They have moved to eBay, Etsy, and Amazon. Sellers now have a plethora of choices that never existed a couple of decades ago. They can sell their products from their website or physical store or through eBay, Etsy, Amazon, or other social media. They can also sell through traditional physical retailers and other options. Furthermore, the vast majority of small business owners agree that selling online allows their businesses to reduce overall expenses they would otherwise incur, such as order fulfillment, payment processing, and ads. According to the National Small Retailer Attitudes Survey of 1003 Small Business Retailers:

"98% of survey respondents sell through two or more sales channels, and the average seller utilizes three online and two other (primarily physical in-store) sales channels."

"85% agree that e-commerce marketplaces generate more revenue for their business than do physical stores."

"92% of surveyed retailers agree that e-commerce marketplaces allow them to reach potential customers more easily."

"89% agree that e-commerce marketplaces allow them to establish credibility with potential customers."

"88% agree that e-commerce marketplaces give them the tools and opportunities to reach a broader market of international customers."

Question 4 from the survey asks, "Which sales channels have you used to sell products in the past year? (Select all that apply)." E-Commerce Marketplaces

	Amazon						657	66%
	eBay						398	56%
	Etsy						221	35%
	Mercari						115	18%
	Walmart Online Marketplace			261	30%
	Other e-commerce marketplaces			173	29%
Other Sales Channels
	Walmart (in-store)				249	28%
	Target (in-store)				166	18%
	Home improvement stores (in-store)		70	8%
	Grocery stores (in-store)			152	17%
	Drugstores (in-store)				58	6%
	Television retail channels (QVC, HSN, etc.)	57	7%
	Wholesale clubs (Costco, Sam's Club, etc.)	112	12%
	Other brick-and-mortar stores			48	7%
	I sell in my own brick-and-mortar store		82	13%
	I sell on my own website			162	31%

In this article, I will focus on Amazon. In my previous article, 'Does Amazon Deliver' I explained the economic benefits created by Amazon. Now, as then, I have no financial interest or stock in Amazon and no bias. The Small Business Empowerment Report describes, in detail, Amazon's impact on small businesses. Here are some highlights from the report.

"Today, more than 60% of the sales in the Amazon store come from independent sellers—most of which are small and medium-sized businesses."

"Independent sellers in the US averaged more than $290,000 in annual sales in Amazon's store in 2024."

"More than 55,000 independent sellers generated over $1 million in sales in 2024."

"In 2024, independent sellers employed over 2 million people in the US to support their Amazon-related businesses."

"Shipping with Fulfillment by Amazon costs 70% less per unit than comparable premium options offered by other major US carriers."

"Independent sellers in the US support local jobs—more than 65% employ at least one person within 50 miles of their primary business location."

According to a new Small Business & Entrepreneurship Council survey:

86% of Amazon sellers say that Amazon supports small sellers.

88% of Amazon sellers say profit margins are the same or higher on Amazon than on other channels.

92% of Amazon sellers say Amazon pricing is fair.

In 2024, more than 1.5 million independent sellers used Amazon's free Seller University, the Amazon Small Business Academy, and the Small Business Success Studio training to help them use articles, videos, webinars, and case study learning formats to grow and optimize their business. The courses include topics like finance, marketing, and operations. Amazon Lending has enabled independent businesses to grow by providing or helping to provide $15 billion in capital. Amazon's IP Accelerator assists small businesses by offering a cost-effective way for business owners to protect their brands and obtain intellectual property rights. In addition, Amazon reports that "in 2024, Amazon Business launched a grant program offering over $250,000 to small businesses, including cash awards and Business Prime memberships, to foster innovation and growth." Amazon's records indicate that in 2023, "U.S. independent sellers sold over 4.5 billion items on Amazon, averaging more than 8,600 items per minute." That same year, more than 10,000 sellers had annual sales surpassing one million dollars, and the average seller earned more than a quarter of a million dollars in sales. These independent sellers employed over 1.8 million people—more than 1% of the U.S. workforce. Furthermore, U.S. sellers exported over 330 million items to consumers in more than 130 countries with the help of Amazon's translation tools and its global logistics network. Much concern about small businesses and life in general results from falling into a logical trap. Folks want things to get better, but they are afraid of change. Here are the facts: nothing gets better without change! While all change is not necessarily good—hence the fear—the only way to improve anything is to change it. In free-market capitalism, the consumer constantly drives commerce to change. The changes tend to be for the better due to the wisdom of crowds. Short-term mistakes are corrected, and long-term gains are the result. Most people suffer from the misapprehension that free-market capitalism favors big corporations, but it's simply not true. The big corporations all evolved from successful smaller efforts that satisfied consumers better than the alternatives. Only in free markets can anyone with a good idea bring it to market. Marketing conditions will constantly evolve, but that evolution creates greater opportunities. As a result, small businesses have the best chance ever to succeed. Conquer the fear and celebrate.

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