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How Much Do Amazon Sellers Make?

How Much Do Amazon Sellers Make?

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You know what?

Selling goods online has never been easier than it is today. But the question is, is it lucrative?

These days there are several different selling platforms to choose from, but chances are, if you’ve landed on our site, you’re probably already leaning towards Amazon. And rightly so.

Financial Benefits Of Selling Online

Financial Benefits Of Selling on Amazon

To sell goods online is far cheaper than to run an actual store. Sure you have to pay a little money in the way of fees, but you don’t have to pay any rent, which would be considerably more expensive, or any of the other costs associated with running a physical store.

Amazon Vs Other Online Retail Platforms

Ebay

Ebay for example is hands down a buyers market, where consumers get away with paying severely cut down prices, leaving buyers with negligible profit margins. And the last thing you’d want is to have to sell below the listing price.

Etsy

And as for Etsy, that’s seen as being only for handmade goods, which is no good to you if that’s not the type of product you want to sell.

Amazon vs

Facebook Stores

Despite just how many people use Facebook the world over, people are still yet to come to trust Facebook sellers…

Anyone can get their pages and their ads onto the platform, and as a result of this scammers have taken advantage of the situation.

Consequently, people have learned not to trust Facebook, making it not such a good platform for your business.

Your Own Website

And as for setting up on your own with your own website, whether it’s Shopify, or WordPress, or any of the others, you’d face a big challenge ahead of you before you even launch. And I’m not just talking about the construction of the website and your company logo…

It takes a lot of work to really get your name out there and get people to even visit your website, let alone make a purchase, or provide repeat buying.

Amazon

Amazon, in contrast to all the other main alternatives, is a much better platform for most online retail businesses. Customers have been buying from Amazon for decades now since its founding in the 1990s.

In fact, we’d go so far as to say it’s THE go-to shop for a huge customer base the world over. It has proved to be a lifeline for those people who can’t get out to supermarkets or obscure niche stores.

People have learned to trust Amazon, and that’s why it’s such a great platform to sell your goods. People will readily buy from you, believing that your product/s is/are the real deal. And they have trust in Amazon that they won’t get scammed.

How Much Money Can Amazon Sellers Make?

How Much Money Can Amazon Sellers Make_

If you’ve been looking into this already, you may have heard some wonderful stories about how someone from out of nowhere suddenly started making 6 figure sums by selling on Amazon. (And if you haven’t, where have you been?)

And it’s true there are some Amazon super-sellers out there that make upwards of $250,000 every month in sales. And it’s super tempting to believe that one day, that could be you.

But, let’s be real. Such success does not happen overnight, it takes a lot of hard work and dedication. But it can be done. And as it’s been said many times before, it’s better to have tried and failed, than to never try at all.

As with any new business venture, it’s often best to start off gradually. And if you don’t have a lot of capital behind you, you may have no choice but to start small.

And even if you have more modest aims about how much money you want to make, you can expect to put in a lot of work before the business even gets off the ground.

And you ought to accept that your ideal income may not come as quickly as you like, but with some perseverance you could potentially get some great results.

How Much Does The Average Person Make Selling On Amazon?

So, we’ve covered how much the super-sellers make on Amazon, but how about the average Jo?

Jungle Scout carried out a survey as recently as 2021, and found that “Nearly half (44%) of Amazon sellers make between $1,000 and $25,000/month, which could mean annual sales from $12,000-$300,000.”

And that sounds quite promising – surely $300,000 in sales means a big slice of profit right? 

Well, not necessarily. Only 3% of those surveyed achieved profit margins of 51% or more, and 8% said that they weren’t currently profitable.

How Much Do New Sellers Make Selling On Amazon?

How Much Do New Sellers Make Selling On Amazon_

According to the same survey by Jungle Scout in 2021, new Amazon sellers, who have only been selling for 1 to 2 years, earn an average of $42,000 in annual profits.

Technically, this is less than the average annual average wage in the US, which is $51,916.27 according to policyadvice.net. Yet it’s above the median annual wage in the US, which falls at $34,248.45.

So, it’s safe to consider the income as quite reasonable, and is more than enough for at least one person to live off, if not enough for their entire family.  

And more importantly, this is very encouraging. It demonstrates that you may not have to wait too long to start making enough product to live off. Indeed, it means that it doesn’t need to be a mere side hustle, and could easily become your family’s main source of income.

What Are The Various Factors That Influence How Much Money Sellers Can Make On Amazon?

How much you make depends on a number of different factors. These include (but aren’t limited to) the following:

  • The profit margin between wholesale and retail costs
  • How effective your branding and marketing is
  • How hard it is to get hold your products
  • The popularity of / demand for the products you want to sell
  • The budget of your target market

How Our Website Can Boost Your Chances Of Success With Amazon FBA

On our website, we’ve got a whole host of tools that can really help you to make money doing Amazon FBA.

We’ve got links for:

How To Get Estimates Of Your Predicted Amazon FBA Sales

How To Get Estimates Of Your Predicted Amazon FBA Sales

Once you’ve set yourself up as an Amazon FBA Seller, you can use special tools which will calculate your expected sales for you.

This is perfect for those who are cautious about pinning too much hope for success. And it gives you a clear idea of what to expect in the coming months so you can plan ahead.

Check out our article titled “Best Amazon Sales Estimator for FBA Sellers” available on this link. It features our reviews on 6 different sales estimators. 

Wrap Up

So, we can safely say that Amazon FBA is certainly profitable for most sellers, and with the help of this website, you can have an edge over the competition.

Sure it’s unlikely that you’ll make money overnight, but the data is very encouraging. And as the saying goes, “Nothing ventured, nothing gained” and “He who dares, wins”. 

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