An analysis of over one hundred thousand ASINs with Amazon’s Small Business Badge revealed a 13.5% average increase in weekly sales. This increase surpassed the Climate Pledge Friendly badge but trails the Best Seller Badge’s 41.5% boost. However, the Small Business badge’s impact varied significantly by category and prior sales levels.

For products earning less than $1,000 weekly on Amazon US, the Small Business badge significantly boosted sales on average, but it had minimal influence on products already generating high revenues. The sales effect across price points was relatively uniform, with slightly higher increases for products priced between $4 and $12, and those priced from $97 to $272.

Category breakdowns revealed striking differences. While Patio, Lawn & Garden products saw an 81% sales increase with the badge, categories like Clothing, Shoes & Jewelry, and Home & Kitchen saw little to no change. Toys & Games even showed a slight negative impact, potentially due to consumers being very brand-conscious in this category, as evidenced by the category’s high rate of branded search (26%).

Interestingly, the dynamics of how capturing the Small Business badge impacts sales contrasts with the Climate Pledge Friendly badge. The former helps less popular products more strongly on average – with the badge potentially instilling a sense of trust. The latter’s benefits tilt more towards popular products – as consumers presumably value trusted products that also have climate credentials.

Biggest Takeaways for Brands

• In most cases, the Small Business badge is worth pursuing for newer or longer-tail-type products assuming your brand qualifies
  • The data strongly suggests that consumers are meaningfully swayed by the Small Business badge on Amazon for products that are making less than $1K per week
  • For already successful products, the Small Business badge is unlikely to provide a big sales boost – so don’t expect much uplift
• Outside of Clothing, Shoes & Jewelry, or Home & Kitchen, brands should generally expect to see a notable sales improvement following the badge appearing alongside the product on the SERP
  • In cases like Patio, Lawn & Garden where the average impact is particularly pronounced, it may also be worth supplementing your listing with relevant terminology to emphasize your brand’s story (e.g. ‘family-owned’, ‘locally produced’ etc.)

How Do you Get a Small Business Badge?

• Brands must first prove they are eligible for a Small Business badge
  • A brand that qualifies as a Small Business must meet Gartner’s U.S. definition:
    • Employs less than 50 people
    • Earns less than $50 million in annual revenue both on and off of Amazon
  • The brand must be registered through the Brand Registry
  • The brand must be headquartered in the United States
• Once a brand confirms its eligibility, simply contact Selling Partner Support and provide the business brand and company name, business address, and merchant token ID
• Obtaining the Small Business badge has no extra costs associated

For more Small Business Badge-related questions, visit Amazon’s FAQ page.

Methodology

Momentum Commerce analyzed more than a hundred thousand products that held the ‘Small Business’ badge on Amazon US between September 2022 and February 2024. Performance comparisons are based on the average weekly sales following the badge appearing alongside the product on the SERP versus the prior weekly average. To provide additional points of comparison, products were broken down based on category, average price, and annualized revenue.