Is it really worth it to sell on Amazon? (2023)

What is the success rate of Amazon seller?

63% of sellers achieve profitability within one year of launching their business on Amazon. 25% of sellers with 2 or fewer years in business on Amazon are earning over $100,000 in annual ecommerce revenue. 60% of sellers with 3+ years in business on Amazon are earning over $100,000 in annual ecommerce revenue.

You can sell products on Amazon whether or not you have an established business. They also take care of a lot of the hardest part of online business — marketing. It's true that there are a ton of people making six figures or more by selling on Amazon, but many more do not. It's not easy, and it's not quick.

Reason #1 why people quit Amazon: not understanding the rules. Reason #2: focussing on the negative. Reason #3: not finding profitable products to sell. Reason #4: not knowing their numbers well enough.

What are the average monthly sales for Amazon sellers? 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. 50% of Amazon sellers make $1,000 to $25,000/month, which could mean $12,000 to $300,000 in annual sales.

If you're selling just on Amazon, then my answer is yes, it is still worth it. The higher cost of actually selling on the platform is outweighed (in my opinion) by their awesome customer service, shipping and handling, and refund management.

Some people have built successful businesses selling on Amazon. A recent survey of Amazon sellers found that 26% sold less than $1,000 per month, and 4% didn't know how much they sold. Another 20% make between $1,000 and $5,000 per month, which is enough for a nice side hustle or even a decent income.

According to Forbes, “Amazon delivered a record performance in 2020 with annual revenue up 38% to $386 billion. This is a yearly increase of over $100 billion, which means that the platform is doing fairly well. “ These figures are testimony that starting an eCommerce business can still be profitable in 2022.

Many brands avoid selling on Amazon because of the platform's drawbacks. Sellers don't have access to customer data. They can't remarket to shoppers who purchase their products and can't control the customer experience. These are only a few problems retailers name.

Which products are best to sell on Amazon?

In short: yes Amazon FBA is still profitable in 2022, but it's getting more competitive as 4000 new sellers join every day. Old tactics of selling generic products, is not working as well as it did 5 years ago. But Amazon grew from 100 million prime users in 2018 to 200 million prime users in 2021.

If you are consistent, you can quickly launch your first product within 3 months, just like 55% of other Amazon sellers have done. 29% launched in less than 6 weeks! Don't feel like you need to get up and running that quickly, though. 14% of sellers took 6 months to a year to launch their Amazon business.

An Amazon Best Sellers Rank (BSR) is a number that nearly every product in its multi-million product catalog is awarded once the item has had at least one sale. For that reason, the BSR is a good indicator of how well a product is currently selling on Amazon. The lower the product's BSR, the better its sales.

If you are planning to sell branded products on Amazon, you need to register for Amazon's brand registry. When you apply for it, they will give you Amazon Standard Identification Numbers (ASINS) for your products so no other seller can list the same items from your pages.

Minimal budget to start an Amazon FBA business

The minimal budget required to start a private label Amazon FBA business is approximately $3500. This budget will get you started with about 500 units of your unique product that costs about $4/unit to manufacture and source and gives a 100% return on investment.

FBA is better for high volume, higher margin products where sellers don't want to handle storing and shipping products. FBM is better for smaller scale, small margin products or one-off products where the seller doesn't mind storing and shipping products.

The retail arbitrage Amazon side hustle. Retail arbitrage is one of the most popular online side hustles. It involves buying products on sale in stores and reselling them online for a profit.

How many sellers does Amazon have?

Amazon is one of the largest seller platforms in the world, with 6.3 million total sellers and an incredible 1.5 million active sellers in 2021, according to Marketplace Pulse. Of course, this should come as no surprise since Amazon is the largest online retailer in most of the world.

According to Forbes, “Amazon delivered a record performance in 2020 with annual revenue up 38% to $386 billion. This is a yearly increase of over $100 billion, which means that the platform is doing fairly well. “ These figures are testimony that starting an eCommerce business can still be profitable in 2022.

Time. To sell well on Amazon, you must invest the time necessary to succeed. If you're consistent, you'll be able to launch your first product in under three months, just like 54% of other Amazon sellers. 31% of sellers got their Amazon business up and running in less than 6 weeks, while 14% needed 6 months to a year.

In short: yes Amazon FBA is still profitable in 2022, but it's getting more competitive as 4000 new sellers join every day. Old tactics of selling generic products, is not working as well as it did 5 years ago. But Amazon grew from 100 million prime users in 2018 to 200 million prime users in 2021.