According to the “KMU Reports Deutschland 2023,” a record number of small and medium-sized enterprises (SMEs) in Germany are selling their products on Amazon, with export volume rising to over 4.75 billion euros, marking a 10% increase. The report indicates that 47,500 German SMEs sold over 725 million products on Amazon, with over 75% exporting their products to customers worldwide. There has been a growth in every category.
Furthermore, more than 16,000 SMEs recorded sales exceeding 100,000 EUR, with over 600 companies surpassing this threshold for the first time. The report also reveals that SMEs have created over 160,000 jobs in Germany directly related to their Amazon sales.
Amazon also surveyed 600 owners of small and medium-sized businesses in Germany about their views on digitalization and its challenges. The result: while 80% recognized the opportunities brought by digitalization, 76% were uncertain about how they could further digitally scale their operations.
The “KMU Reports Deutschland 2023” also presents data breakdowns by federal states. North Rhine-Westphalia remains the undisputed leader, with over 11,200 SMEs and export turnover exceeding 1.4 billion euros. It is followed by Bavaria (over 8,250 SMEs and more than 600 million euros in export turnover) and Baden-Württemberg (over 6,000 SMEs with 475 million euros in export turnover). Notably, trade partners in Hamburg (over 200 million euros in export sales) and Brandenburg (over 125 million euros in export sales) managed to increase their sales of exported goods by nearly a third compared to the previous year. Berlin continues to defend its position as the capital of trade partners. With around 3,000 small and medium-sized firms, it is the German city with the highest density of SMEs on Amazon. In 2022, Berlin’s trade partners exported products worth over 500 million euros.
These data are intriguing for at least two interrelated reasons:
Firstly, it’s evident that an increasing number of SMEs recognize their opportunity to boost sales through Amazon. For many, this platform offers perhaps the only or certainly the easiest chance for international expansion. Diversifying revenue sources is always an excellent idea, especially when these revenues come from different regions of the world, which are not necessarily affected by the same problems at the same time (excluding global phenomena like a pandemic).
Secondly, it’s clear that many SME owners do not know how to exploit the potential of the world’s largest trading platform. While Amazon offers a range of free courses, there is also significant potential for consulting firms (including those from the SME sector) and experienced consultants capable of introducing and comprehensively managing sales on Amazon. I may be repeating myself, but I believe that Generative AI, with thousands of tools available at very affordable prices (the average price for a tool useful in digital marketing, sales, or analytics in a subscription model is between $29 and $49 per month), holds great promise.
Source: Amazon Presse DE