The Amazon Seller’s State represents the opinions of thousands of online retailers and sellers who participated in our 2021 annual survey. We are proud to offer this annual report as a resource for new and seasoned Amazon FBA sellers, sharing insights into the challenges and successes that entrepreneurs face in today’s ecommerce world.
Over three-quarters of sellers said they were profitable by 2022, and over half of new sellers were profitable within six months.
However, profits are not the only measure of success: 63% of respondents said their business was viable in less than a year, and more than a quarter were already earning over $100,000 a year.
Success on Amazon
Success on Amazon can be overwhelming: nearly half (47%) of respondents said they sold on other ecommerce platforms, 25% had other businesses outside Amazon and 20% said they planned to become multi-channel sellers in the next year.
The data for this report comes from a survey of more than 700 Amazon FBA sellers. Respondents included business owners, ecommerce professionals and CEOs who sell on Amazon or have been selling for at least one month. Participants did not receive any compensation for completing the survey.
The average age of an Amazon FBA seller is 44 years old.
Men represent 65% of Amazon FBA sellers, while 35% are women.
60% of sellers with 3+ years in business on Amazon are earning over $100,000 in annual ecommerce revenue.
Half of Amazon FBA sellers sell 5 or fewer products
Most sellers price their products between $11-$25, use amazon seller fee calculator to calculate total revenue for all categories
85% of sellers spend an average of $2,500 or less on advertising for their Amazon business. 32% plan to increase ad spend in 2022.
38% of sellers will try new marketing tactics in 2022.
16% of Amazon sellers currently work with an agency to manage their business.
The report found that Amazon sellers are optimistic about the future of their ecommerce sales, with 95% planning to expand their business in 2022.
The State of the Amazon Seller also includes a snapshot of:
Current seller demographics and experience levels. How Amazon sellers are growing their ecommerce businesses. Seller pain points and marketplace challenges. Amazon’s role in the overall ecommerce industry
The Amazon marketplace is massive. The company commands nearly 40% of all ecommerce sales in the U.S., not to mention its international marketplaces and its growing advertising business. But how much do we really know about the sellers that make Amazon’s marketplace function?
In late 2020, Sellics and Feedvisor set out to answer that question with their first annual State of the Amazon Seller survey. The results were surprising, especially when it comes to how Amazon sellers are planning to grow their businesses in 2021 and beyond.
Consider your selling strategy
You might think that anyone can sell anything on Amazon, but there are actually some restrictions. For example, in order to sell clothing, shoes and handbags, you must apply for approval to be an apparel seller. You can’t sell items that are currently restricted from being sold by Amazon, such as collectibles and jewelry. Some categories have additional guidelines that sellers must follow as well, such as toys and clothing.
Consider product categories
First, consider your product categories and selling strategy. If you’re interested in selling books, DVDs, CDs, and video games, Amazon has separate marketplaces for those items and you must choose which one is best for you to sell on:
Amazon Marketplace is a place where third-party sellers list products for sale, and where buyers can browse available products to buy. In order to reach more customers and sell more products on Amazon Marketplace, sellers should consider joining Fulfillment by Amazon (FBA). With FBA, sellers send their inventory to an Amazon fulfillment center where it is stored, packed for shipping when an order is placed, and shipped directly to the customer. In addition to increasing sales on Amazon.