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Alyssa Connolly
April 21, 2022
Amazon News, Amazon Seller, Jungle Scout Data Science, News
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New Amazon sellers are earning an average of nearly $30,000 in annual profits. What does it take to start selling on Amazon, and what can new sellers do to ensure they are profitable this year? Jungle Scout’s latest report has the data.
49% of new Amazon sellers cite a desire to “be their own boss” as the top motivator to use the platform. Additionally, 38% of new sellers are looking for extra income to supplement their existing income. Many are also searching for flexibility to work from any location or to travel the world while more than a third want to feel successful or accomplished.
Whatever the reason for selling on Amazon, it’s the primary income stream for many.
So just how much can you expect to make selling on Amazon in 2022?
The team at Jungle Scout, the leading all-in-one platform for selling on Amazon, recently surveyed* thousands of Amazon sellers so you can learn all you need to know about getting started selling on Amazon from those who are doing it.
What we’ll reveal:
Now, on to the data!
Though there are a number of different methods for selling on Amazon, the most common is Amazon’s Fulfillment-by-Amazon (FBA) program.
Like any other business, selling on Amazon will involve some expenses and fees on the seller’s part, but what makes Amazon FBA so appealing is that it simplifies that for sellers.
Simply put, you choose a product, get it to Amazon’s warehouses, set up your Amazon listing, and Amazon takes care of the rest. And you start seeing sales and profits.
Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make more than $100,000 each month in sales.
Selling on Amazon became a viable way of building an ecommerce business relatively recently, so many Amazon sellers are new to the game. But that hasn’t limited their sales.
Nearly a third (30%) of SMB Amazon sellers have reached lifetime sales of over $100,000:
While sales are often a strong measure of a healthy Amazon business, they don’t paint a complete picture of what money an Amazon seller takes home. So let’s turn to profits.
The higher the profit margin, the better. Small companies often struggle to achieve profitability in their first few years, but Amazon SMB sellers see healthy profit margins.
While profits change based on factors including sales volume and business expenses throughout the year, sellers weighed in on their total lifetime profits since they started their Amazon businesses.
One in five SMB sellers has reached lifetime profits of more than $50,000 — not bad for what many start as a “side hustle” — and 14% have lifetime profits over $100,000.
Lifetime profits
14% of Amazon SMB sellers achieve lifetime profits over $100,000
And for many Amazon sellers, those profits turn quickly.
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Across all respondents, the majority (64%) said they were profitable within the first year of selling.
So, how do you get started selling on Amazon? We asked sellers how much money and time they invested to get their businesses up and running.
One of the biggest hurdles for people starting to sell on Amazon is the idea that it will cost them too much money. As with many things, what you put in impacts what you get out. But that doesn’t have to mean cash — it can mean time, the necessary data to inform your decisions, or simply the will to succeed.
In fact, nearly one-third (32% ) of Amazon sellers spent no more than $1,000 to start their businesses. Overall, most sellers (69%) spent less than $5,000 to get started selling on Amazon.
What is that money spent on? Typically, initial costs include sourcing your product (including samples), Amazon fees, and promotions. (Read more about how much it costs to sell on Amazon here.)
And where does that money come from? An overwhelming number of sellers (82%) are bootstrappers, funding their entrepreneurial endeavors with their own cash. A smaller portion of sellers (22%) borrowed money from banks, family, or other lenders.
Overall, Amazon sellers don’t need to spend a lot of time on their Amazon businesses. Most (64%) spend fewer than 20 hours per week.
More than three-quarters (78%) of sellers were also able to launch their businesses within 6 months.
In fact, you’re likely to give more time to get your business off the ground in its early stages; after they find products to sell and create their niche, many sellers simply maintain their businesses and let the income roll in.
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Nearly all sellers (90%) had planned to continue selling on Amazon in 2022, and 82% are optimistic that selling on Amazon will be a viable way to make money online in the future, compared to 63% who said the same last year.
Amazon is an industry unto itself, and it’s irrevocably tied into so many other industries that the opportunity for sellers to find a profitable niche to sell in is massive.
While 8% of SMB sellers are not yet profitable, most are already taking big Amazon money home — or using it to invest further in their businesses:
What does that amount to in dollars? Let’s just say it’s enough to be considered much more than “side hustle money.”
SMB sellers are making an average* of $11,671 in sales each month — or $140,052 in sales per year.
Considering the average profit margin of SMB sellers, 21%, new sellers are averaging $2,451 per month or $29,412 in annual profits.
And for the 29% of sellers with profit margins of 21% and higher, they could be taking home monthly profits upwards of five figures and beyond.
New Amazon sellers are earning an average profit of nearly $30K per year.
A handful of new sellers are fortunate enough to be raking in incredibly high sales — upwards of $250,000 per month — $3 million per year. While these “super sellers” are outliers from the average seller, they’re certainly aspirational.
*Weighted average calculated based on reported sales by midpoint of range, and capped at the high-end range ($250K) to prevent arbitrary projection.
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Countless have tried their hand at selling on Amazon. So what can you learn from those who’ve had distinct, measured success? Here are the top takeaways:
For more tips and resources, check these out:
If you’re ready to start selling on Amazon, consider signing up for Jungle Scout’s Freedom Builder Bootcamp! Join Jungle Scout Founder and CEO Greg Mercer on a limited bootcamp course designed to get you up and running as a seller on Amazon.
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Between December 1, 2021 – January 3, 2022, Jungle Scout surveyed 3,500 Amazon sellers, including prospective and former sellers.
This article reflects responses from 676 active first- and third-party Amazon sellers earning $2 million or less in annual ecommerce revenue.
Also included in the analysis for Jungle Scout’s 2022 State of the Amazon Seller Report were sellers and brands earning over $2 million in annual revenue, respondents representing agencies that offer services to Amazon sellers and their businesses, sellers who are looking to launch a business on Amazon but have not yet started, and respondents who previously sold on Amazon.
Respondents represent 117 countries, all 20 Amazon marketplaces, and all relevant Amazon product categories. They are ages from 18 to 80+, as well as all genders and levels of education.
Sign up for Jungle Scout’s newsletter to make sure you don’t miss the report!
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Alyssa Connolly
Alyssa is a researcher and writer with 10 years of experience in research, technology, and journalism. She is a published expert in The New York Times, NPR, The Washington Post, Bloomberg, Forbes, and Politico, among others.
local_offer Tags: Amazon News, Amazon Seller, Jungle Scout Data Science
Hi Alyssa, thanks for sharing this informatin and statistics on Amazon seller’s performance.
Hi,
Good info. I used to subscribe to Jungle Scout but left because I wasn’t ready. I will be joining again soon. Do you have an Affiliate program?
Ed
Hi Ed,
Yes, we do have an affiliate program.
I sold books a few years ago using FBA and while I didn’t get rich I got out what I put into my business. Just like everything else in life it can work if you put enough effort into it.
Exactly! Thanks for sharing.
Thanks for sharing such a detailed and helpful piece of content, keep sharing these types of valuable stuff.
Hi Brian,
We’ve been looking at 2021 reporting and are seeing that advertising and all other Amazon fees are running at a rate of 62.5% of sales. Would a number like this be considered as normal?
Thanks,
Bill
Hi Bill,
Not knowing what your actual advertising costs are, it’s hard to say. Amazon fees eat up roughly 30-40% of sales and advertising costs can take up a big chunk as well. I would work on trying to reduce the costs of your ads. Figure out ways to improve your products or listings to increase conversions on your ads.
I*m a cab driver here in newyork and seen alot of garbage boxes mark amazon.yep your rigth somebody is making money,im thinking of joining you,soon
You should! Start making money like the rest of Amazon sellers!
The truth is that most reseller are working for free for Amazon and loosing money for year. Amazon refunds customers that should not be refunded. Just a business to avoid.
Hi GG,
I am sorry that you feel that way! Sure, while some sellers likely lose money selling on Amazon, many sellers are very profitable. You just need to find the right products at the right price!
Thanks for reading.
I have been doing my research on Amazon FBA and came across this article. This happens to be one of the most helpful articles, research I have found in all of my hunting towards learning about Amazon FBA. To be honest, I just learned, yesterday October 10, 2021, what “Jungle Scout” was. So not only do I know what you guys do, but now I know you guys create educational articles and create courses to help advance new sellers. Of course the more sellers there are on Amazon the better chance you guys getting new sellers using your company as well. With that being stated when I start with Amazon FBA I will be using Jungle Scouts services as well.
Hi Mattro,
Welcome! If you have any more questions, feel free to ask.
How much will it cost me to start selling in amazon using Jungle scout
Hi Marimba,
If you choose the professional selling plan with Amazon, that is $39.99 per month. Jungle Scout’s basic plan is $29 per month. That is before you purchase any products to sell on Amazon. You need to figure out what your overall starting budget is and start doing product research to see which products you can invest in.
Hi, bro. I am soon starting amazon. As a new seller, will i be able to make profit more than 20 000$ a month. After 3 or 4 months. With products under 10$
After 3 or 4 months will be tough to do that, especially with products so low in price. I suggest selling higher-priced products as you will be left with more profit typically.
My friend have been trying to convince me to start a business on Amazon for over a year now and I’m really ready to jump in after reading this article , so thank you.
She always gave me the feeling of telling me all about the good and nothing about the bad. I hate surprises and always want to know what to expect before starting.
I’m glad they’re a lot of free resources out there to help new seller. I only have 3k to invest in and hopefully this will be enough to start.
its so fine but can i get one to lecture me on how to do
Hi Ronald,
We have the academy inside our Jungle Scout subscription or I suggest checking out our Youtube for some great free information!
Please can I get some genuine tutorial from successful Amazon sellers
Hi David,
Check out our recent seller success story!
https://www.junglescout.com/blog/amazon-seller-stories-littil/
Hello, I just want to let you know how helpful this article was for me. I have been dreaming about getting started on Amazon for some time, but fear has held me back, that along with uncertainty. After reading this article I feel like I have the statistics to help me manage my time better and set more targeted goals. Thank you for answering our questions in such a resourceful way!!
That is great to hear! Thanks for reading!
your information and you are great dear,, i learn A lot reading your article
Wholesome information! thank you for your time, information in here is like water to the thirsty!
I really like your information but it sounds to good to be true my 21year old son is trying to convince me to start a buisness on Amazon I’m old school i need more information i now have a life treating condition do to covid-19 and and i need extra $$$ my savings are getting low and I’m not sure if i would ve doing a good move
Hi Liliana,
Thanks for reading! I know it may sound too good to be true but it is not. You do need to make sure you do thorough research beforehand, though. While sellers can make a lot of money, they can also lose a lot of money.
I suggest checking out our How to Sell on Amazon for Beginners Guide to give you an idea of what you are up against. You can also start reselling used books or retail items if you need to start with a smaller budget.
Look around our blog, we have lots of great free resources!
Hello.
I’m looking to become an amazon seller do sellers source their own products?
Hi Cathal,
That’s great to hear! And yes, when sellers first start out, they will typically source their own products. As a business grows, you can hire additional help to source products for you. What business model on Amazon do you want to follow? Private label?
Brian
How do I begin
Hi Allyson,
Please check out our How to Sell on Amazon guide here: https://www.junglescout.com/how-to-sell-on-amazon-fba/
Hi there,
I’m very much interest get involve amazon on line
business but I couldn’t figure out how I can start.
In the on line business so many people talk and thousands of side. It’s difficult to find out right one
If I start and with wrong people then I became negative minded.
Please let me know proper path.
Thank you.
Hi Fakhrul,
Please check out our free How to Sell on Amazon guide for beginners! It’ll show step by step on how you get can started selling on Amazon.
Well I’m glad u mentioned it’s no get rich quickly scheme . Although financially secure at 68 I’m still a money man aka enjoys life , pay your bills and save money. I’ve had a very successful sales career just by persistence and being a nice guy & making sure the clients are happy. That said I’m clueless where to begin but I always challenge myself and I won’t enter the business to make less than $25k after my first year. I apologize if I sound cocky but I was a Money maker for decades. $50 k min is acceptable but I’ve never made under $100k since 1984 as 2020 I came up a bit short . NOTE > I don’t have my own website?
Great stuff. This article cleared my many confusions. Keep sharing your knowledge.
We are glad this article helped you, Kali!
Where do I get products from to sell on Amazon?
You can source them from China by going the Private Label route. You can purchase products from retail stores doing retail arbitrage. Take a look around our blog, it will give you plenty of free resources to figure out what you can sell!
Hi
Is it better to use a course on how to sell on Amazon or just jump in and which course would you highly recommend and where does it compare against other competitors?
Hi Sujit,
I suggest you go through our blog and youtube. We have lots of free resources to go check out!
We also have out Freedom Builder Bootcamp.
Be aware that since Covid, sellers in North America using Chinese based-capital have been driving profit margins into the ground on common commodities and products. What was once highly profitable is now slaving for pennies. I might as well be working in China. I do over $50,000 in sales monthly on Amazon, but profit margins have TANKED . I see this as being a calculated move, since a Chinese competitor appeared in my product categories the same month Covid was announced, and they quickly deflated price points like crazy. What I used to make $10 on, I now make .66 cents on per sale…
This is a war, and the goal is for them to take over the online market.
Hm interesting. 20kish a year in profits. You probably had to invest 4-5k in a course and all the upfront costs
So you make what someone that just got a job does. Only a person with a job has less mental gymnastics
I dont think theres a point. And that profit you make will need to be re-invested back into more product.
Meanwhile you have to be paying rent or living with family for free or something. Car payment? Etc.
The only people that could do this are people with some successful business already and then add this into another income stream
Just my thoughts.
How much do Amazon charges as a commission for their services?
Which all states their presence is there in India? We want to sell fresh pork / frozen, with all Government certificate. And our speciality RTE retort packed off the shelf of about one year
Please guide us
Reg
Norman.
Hi Norman,
You cannot sell meat on Amazon.
GREETINGS!
I’M SOO SOO VERY INTERESTED IN SELLING WITH AMAZON, I WOULD LIKE TO GET SOME TRAINING COURSES FIRST SO I WONT FEEL LOST IN THE MIDDLE OF THE ROAD AND OFCOURSE BE SUCCESSFUL ! I WANT TO BE MY OWN BOSS , I”M 45 AND VERY VERY SERIOUS TO DO MY OWN BUSSINES , IM READY TO INVEST AND GET PROPER TRAINING FOR THIS NEW JOURNEY IN MY LIFE , PLEASE HELP, THANK YOU
Hi Martha!
Check out our Freedom Builder Bootcamp that will teach you the ins and outs of selling on Amazon!
https://www.freedombuilderbootcamp.com/
How I can start small business with Amazon.
I’m interested to start small business as retail stores for Amazon products. In case of emergency they come to store buy products.
Small store like UPS store.
Hi Kirit,
I am not sure I understand your question. Do you want to sell on Amazon or open a retail store?
I want to make at least 1500 a month or more, heck I would love to make and see the most money I’ve ever seen.
How much is the start up. And how do you pick the right product or products
Hi Branden,
Thanks for the comment! We have tons of free resources in our blog on how to get started and find the right product to sell.
This is good article but as a newbie i want to start this Amazon business with 10k usd.but i don’t know from where i have to start.please guide me.
Am looking 110000 monthly profit
If im from Indonesia. How to start this business? Please advise
I have read that Amazon looks at the best performing sellers,sees what they sell and how they do it then undercuts them selling the same thing but they can do it for less than anyone else and how does anyone know who owns what?
Yes, Amazon has been accused of using seller data when creating their own private label products. That’s why you should focus on creating something very unique and different in the marketplace that would be difficult for someone to replicate.
Great training
Glad you enjoyed it!
Do I have to purchase an inventory of a product that I want to sell? Can I resell products without having to spend cash? How do I establish an inventory of products to sell without having to purchase it first myself?
Hi Michael,
What you are referring to is the dropshipping method. You can find out more info in this post here: https://www.junglescout.com/blog/dropshipping-on-amazon/
Iwant be seller on amazon but I live ethiopia please help me how I over come
Hi Amanuel! Thanks for getting in touch about this as Ethiopia is not on Amazon’s list of countries accepted for seller registration. For that reason, you won’t be able to sell on any of the Amazon marketplaces. I am sorry about that.
I need to try and make money for the long run. I dont expect to see profits right away. I just want to secure for the future.
I really doubt anyone is making money in Amazon these days except for Amazon itself. They hack your listing. They get money through fees, keep insisting on Advertising, all coupons and deals they money for sure but not the seller. Customers can beat the seller left, right and center and seller has little to no say at all.
Which is the best & inexpensive course to take that covers every thing? Is it a must to take one before selling on Amazon?
I am glad you asked, Yvonne, because taking a paid course is unnecessary. There is a lot of free content out there that takes you through the entire process of creating an online business on Amazon. My recommendation? Check out our most recent Million Dollar Case Study – https://www.junglescout.com/mdcs4/
If you scroll down to the bottom of the above page, you’ll have access to all 18 episodes, for free. 🙂 Hope this helps!
Invigorating information. Thancks.
It’s a system where you can decide the levels of income that you want to attain each month..Not a Boss.Thanks you Amazon..Stay Bless.
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