Is selling on Amazon worth it? Before selling on Amazon, you might be curious about how much Amazon sellers make. According to a report by Jungle Scout, 13% of sellers make between $25,000 and $250,000 per month, resulting in annual sales between $300,000 and $3,000,000. The top 6% of sellers make up to $250,000 per month in sales.
Do these numbers interest you? Wondering about your own earning prospects on Amazon? This guide is for you if you’re seeking more detailed stats before making the leap. In this guide, you can find:
- How much do Amazon sellers make?
- How long does it take to become profitable on Amazon?
- Is selling on Amazon profitable?
- Amazon seller success stories
- 3 tips for a profitable from successful Amazon sellers
All the data is based on Jungle Scout’s survey. Keep reading to explore further!
How Much Do Amazon Sellers Make?
Amazon sellers’ monthly sales can vary significantly. While some may generate only a few hundred dollars per month, others achieve sales figures in the hundreds of thousands or even millions. It’s uncommon for new sellers to immediately reach high sales volumes, but with time and experience on the platform, they can gradually increase their earnings. So, how much do Amazon sellers make on average? Let’s explore further to uncover the answer.
How much do Amazon sellers make a month?
Even for individual sellers and small businesses (SMBs), Amazon potentially helps them generate more income than the typical side job. About 19% of SMB sellers achieve average monthly sales surpassing $10,000. Furthermore, it is a profitable platform for larger brands and retailers, with 78% exceeding $50,000 in average monthly sales. Here are some detailed statistics on Amazon sales for both sellers and SMBs in 2023.
- 52% of Amazon sellers generate monthly earnings ranging from $1,000 to $25,000, potentially translating to $12,000 to $300,000 in annual sales, offering a promising avenue for additional income.
- 19% of Amazon sellers achieve sales exceeding $5,000 per month, amounting to $120,000 in annual sales.
- 31% of sellers generate less than $500 monthly in sales when starting their Amazon journey.
To be more specific, here are more details on how much Amazon sellers make on average:
Sales figures provide valuable insights into an Amazon business’s performance. However, they alone do not offer a comprehensive understanding of an Amazon seller’s earnings, particularly what they actually take home. Therefore, it’s essential to shift the focus to profits.
Average Amazon Seller Profit Margin
While increasing sales is undoubtedly a cause for celebration in an Amazon business, it’s crucial to remember the significance of profits. How much do Amazon sellers make after deducting all expenses?
Now, let’s shift our focus to profits and delve into the intricacies of an Amazon seller’s earnings retention. By prioritizing profits, you’ll gain valuable insights to make informed decisions and further expand your business.
- 57% of sellers experience profit margins exceeding 10%.
- Additionally, 28% enjoy profit margins surpassing 20%.
- Conversely, 13% indicate that their businesses have not yet reached profitability.
Profits vary due to various factors such as sales volume and business expenses over time. However, sellers pay more attention to their overall lifetime profits since launching their Amazon businesses.
How much profit have Amazon sellers made over the years?
30% of SMB sellers have accumulated lifetime profits exceeding $50,000—a commendable achievement for what often begins as a “side hustle.” Meanwhile, 10% have lifetime profits ranging from $100,000 to $500,000.
Lifetime profits:
Additionally, for numerous Amazon sellers, these profits accumulate rapidly.
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How Long Does it Take to Become Profitable on Amazon?
With Amazon, rapid profitability is achievable! According to the data, 58% of sellers reported being profitable within their first year of selling, followed by:
Time frame | Percantage of sellers |
3 months | 22% |
3 - 6 months | 16% |
6 - 12 months | 20% |
1 - 2 years | 11% |
More than 2 years | 2% |
Don't know | 7% |
Now, let’s explore how to sell on Amazon. We asked sellers about the investments made by sellers to initiate and establish their businesses, and here’s what we found.
How much do you need to start selling on Amazon?
To calculate how much profit do Amazon sellers make, you should take into account the cost. For many individuals beginning to sell on Amazon, the high cost is a significant concern. However, it’s essential to recognize that, as with many businesses, inputs influence outcomes. These inputs may include financial investment, time commitment, relevant data for decision-making, or determination to succeed.
Interestingly, a quarter (25%) of Amazon sellers initiated their businesses with an investment of less than $1,000. Overall, the majority of sellers (64%) spent less than $5,000 to embark on their Amazon selling journey.
Here are some more numbers to break down the costs:
Cost range | Percentage of sellers |
Less than $500 | 16% |
$500 - $1,000 | 9% |
$1,001 - $2,500 | 16% |
$2,501 - $5,000 | 23% |
$5,001 - $10,000 | 18% |
More than $10,000 | 17% |
Don't know | 2% |
When starting an Amazon business, you might wonder where you’ll need to spend your money. Usually, you’ll need to pay for things like getting your product, Amazon seller fees, inventory, and advertising. But don’t worry, you can find out more about these costs here.
Read more: How to Sell on Amazon without Inventory: The Easy Guide
Next, you might ask, where do people get the money from? Well, most sellers (82%) use their own money to start their business. They invest their own cash. But if you don’t have that much money, some sellers (22%) borrow money from banks, family, or other sources.
How much time do you need to start selling on Amazon?
In general, Amazon sellers don’t have to dedicate a considerable amount of time to their businesses. The majority (71%) spend less than 20 hours per week on their Amazon ventures.
Here’s the breakdown of the time needed to start selling on Amazon:
Time range | Percentage of sellers |
Fewer than 4 hours | 19% |
4 - 10 hours | 31% |
11 - 20 hours | 21% |
21 - 30 hours | 12% |
31 - 40 hours | 7% |
41 - 50 hours | 4% |
51 - 60 hours | 4% |
More than 60 hours | 3% |
Nearly three-quarters (74%) of sellers were also able to launch their businesses within 6 months.
Indeed, you’re likely to invest more time in getting your business started during its initial phases. Once sellers have identified the best products to sell on Amazon and established their niche, many simply maintain their businesses and allow the income to flow in.
Is selling on Amazon Profitable?
You already know how much Amazon sellers make. Do you think selling in this marketplace is still profitable? Amazon is like its own big industry, and it’s connected to lots of other industries, too, giving sellers a big chance to find a good thing to sell. Most sellers want to keep selling on Amazon in 2024, and 39% want to make more money and bring out new stuff. Also, 21% of new Amazon sellers are making around $30,000 a year on average. But it’s not just the usual sellers; there are a few new sellers making a lot of money—more than $250,000 a month, which is $3 million a year. These “super sellers” are not the same as most sellers, but they’re something to aim for.
Then you can see Amazon remains a popular option for sellers looking to make money and, of course, turn a profit.
Amazon Seller Success Stories
If you’re seeking some genuine inspiration, consider delving into real-life seller stories. By learning how much money do Amazon sellers make via real-life examples, you can push yourselves forward to succeed in this marketplace.
Tech Exchange
Learn how Tech Exchange, a smart Amazon seller, is making an incredible $5,000 every day by selling refurbished electronics. Tech Exchange has figured out how to make a lot of money on Amazon, and the key is selling refurbished gadgets. If you’re curious about making big bucks with little investment, keep reading to discover how this method can lead you to financial success.
Their journey to an impressive $1.8 million in annual revenue on Amazon is a lesson in smart online selling. Partnering with big names like Apple, Samsung, and Beats was a game-changer. This step gave them access to a customer base already loyal to quality and brand, setting the stage for a trustworthy online reputation.
Brisco
Ever imagined having your own trendy fashion shop on Amazon? Well, it’s not just a dream—it’s real! Meet Brisco, an Amazon store that’s been making waves by selling simple yet essential fashion items. And here’s the exciting part—they earned over $75,000 in just one year!
Specializing in must-have fashion basics, Brisco has built a significant presence, raking in approximately $75,000 in yearly revenue. That’s roughly $6,250 monthly, with an impressive 5,000 orders annually.
Their secret? A sharp focus on everyday fashion basics for men, women, and children. Brisco’s online shop stands out for its quality and comfort and its wide range of clothing, perfect for almost any occasion.
Merfs Condiments
Kelly Schexnaildre’s journey from growing up in Louisiana to becoming a hot sauce trailblazer with Merfs Condiments showcases her unwavering belief in her product. Despite facing challenges as a non-binary lesbian in a male-dominated industry, Kelly successfully started her business in Denver in 2014.
Her biggest challenge came during the 2020 pandemic, which severely impacted her restaurant-focused revenue. To overcome this obstacle, Kelly shifted to a co-packing model and expanded her market by launching Merfs Condiments on Amazon in late 2021.
This decision paid off, with sales reaching $96,000 in 2022, a significant increase. Kelly’s determination and flexibility highlight her commitment to her brand’s success, driving her ambitious goals for the future.
3 Tips for a Profitable from Successful Amazon Sellers
Now you know everything about how much do Amazon sellers make, let’s discover some takeaway tips from successful sellers. They can help you have more ideas to succeed in the marketplace.
1. Jump in now
You can achieve success as an Amazon seller in no time! Within just three months, over half of Amazon sellers have already found success. Plus, many of them dedicate just 10 hours or less per week to their business. Don’t hesitate any longer – kickstart your Amazon business today and start seeing significant results in no time.
2. Put in the effort — it will pay off
Most sellers (60%) acknowledge that building an Amazon business requires effort but believe the rewards justify it. Moreover, 45% of Amazon sellers are expanding their businesses by introducing new products in the next year.
For those seeking opportunities to earn online, Amazon presents a promising avenue. Don’t overlook the chance to establish a thriving business on this platform!
3. Find the right resources and tools
Achieving success as an Amazon seller is entirely feasible! The critical ingredients for building a thriving business include dedicating sufficient time and having access to the necessary knowledge and tools. Once you have these essentials sorted, you’ll be on the path to Amazon success!
If you’re ready to sell on other platforms and want to join Amazon, consider signing up for LitCommerce – a multichannel selling tool that makes selling on multiple channels easy.
How Much Money Do Amazon Sellers Make: FAQs
The success rate of Amazon sellers varies, but according to TrueProfit, 46% of them typically achieve an Amazon FBA success rate ranging from 11% to 25%. Additionally, around 64% of Amazon sellers start making a profit within their first year of operation. However, the level of profitability can be influenced by factors like product selection, pricing strategies, marketing efforts, and customer service quality. Reselling products on Amazon can be profitable if you think through everything and put effort into growing your business. To earn money as a seller, you must discover items priced much lower elsewhere than what they’re sold for on Amazon. Amazon sellers receive prices every two weeks, specifically on the 1st and 16th day of each month. However, there’s a seven-day holding period for all payments. This means Amazon holds the payment for seven days after the order is delivered to allow the buyer to inspect the order and request a refund if needed. The monthly earnings of an FBA seller vary widely, as they depend on several factors. So, how much do Amazon FBA sellers make a year? The data from Product Video Studio reveals that more than 70% of sellers maintain a profit margin exceeding 10%, with nearly 20% enjoying profit margins of 25% or higher. For example, if you sell a product with a $10 profit margin and move 100 units monthly, you could potentially earn $1000 per month.
Conclusion
So, how much do Amazon sellers make? We hope you can find the answer after reading this guide. Amazon sellers’ earnings vary greatly, with some generating only a few hundred dollars monthly while others earn tens of thousands. Ultimately, the outcome mostly depends on your chosen product niche, pricing approach, and marketing endeavors.
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