Amazon reveals states with most digital entrepreneurs

Iowa came in first place for 2 categories

Amazon on Thursday revealed the top 10 states with the most digital entrepreneurs based on the number of small- and medium-sized businesses (SMBs) selling in Amazon's online stores.

The retail giant revealed the top 10 states with the most SMBs selling in Amazon's stores per capita, as well as the top 10 states with the fastest-growing number of SMBs selling in Amazon's stores per capita.

Iowa came in first place for both categories.

"We Love Our Heroes" is displayed outside a costume shop in the Valley Junction neighborhood of Des Moines, Iowa, U.S., on Friday, May 8, 2020. (Rachel Mummey/Bloomberg via Getty Images)

"Iowa is home to thousands of small and medium-sized businesses selling in Amazon’s stores, and we’re working hard to support their growth despite the global pandemic,” Keri Cusick, head of small business empowerment at Amazon, said in a Wednesday statement.

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The top states with the most SMBs selling in Amazon stores per capita are:

  1. Iowa
  2. Delaware
  3. California
  4. Wyoming
  5. New Jersey
  6. Vermont
  7. New York
  8. Utah
  9. New Hampshire
  10. Florida

A poster urging locals to stay strong amid hardship in a Gillette, Wyo, storefront on the Eagle Butte mine just north of Gillette. (AP Photo/Mead Gruver, File)

The top states with the fastest-growing SMBs selling in Amazon stores per capita are:

  1. Iowa
  2. Washington
  3. Alabama
  4. Virginia
  5. Louisiana
  6. Georgia
  7. West Virginia
  8. South Dakota
  9. Rhode Island
  10. Alaska

"It’s always surprising to see what interesting businesses selling in Amazon’s stores are hidden in all the different nooks and crannies around town," Tahmi DeSchepper, an Iowa business owner, said.

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She added that Amazon helped her "double" sales of her homemade jewelry in 2019, and she is "expecting another 50 to 75 percent increase in sales this year, despite the pandemic."

Amazon logo displayed on a smartphone / iStock

Blake Anderson, the CEO of another Iowa-based business, said Amazon has helped his store reach more customers than his team could have on their own, and it has helped his business "continue to grow more than 90 percent year-over-year."

More than 15,000 U.S. SMBs surpassed $1 million in sales in Amazon stores worldwide in 2019, and almost 25,000 exceeded $500,000 in sales. Products from SMBs make up more than half of all items sold in Amazon’s stores globally, according to the company. 

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Retailers have been largely dependent on e-commerce companies like Amazon during the coronavirus pandemic. According to a June 9 update on eMarketer's digital buyer forecast, more than 204 million consumers ages 14 and up will make an online purchase during the pandemic.

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