Is It Profitable To Sell On Amazon

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You’re interested to start selling on Amazon? Find out is this online business really profitable and how much Amazon sellers earn. Nowadays, many people make a significant amount of money by selling on Amazon. Some of them even quit their 9 to 5 jobs, and Amazon online business is their primary source of income. But are all those stories actually true? How profitable is the Amazon online business? And what does it take to become a successful Amazon seller? Read our article and find out answers to all your questions.

How much money do Amazon sellers make?

There are many different selling models on the biggest selling platform, but the one that is mainly used and probably draws the most significant profit is the Fulfillment by Amazon. Aldo sellers have to pay the additional price for selling as an FBA seller, this model is actually cheaper in the long run because Amazon will do all the tasks related to your orders, and by doing this, you will be able to cut costs. 

The average monthly sales for Amazon sellers

This number depends on many factors, and it can vary drastically. Some Amazon sellers obtain $1.000 in sales per month, while others obtain up to $250.000 monthly. 

  • Almost 50% of marketers on Amazon obtain somewhere between $1,000 and $25.000 each month.
  • Every fifth Amazon marketer makes $25.000 to $250.000 every month.
  • About 20% of sellers obtain fewer than $1.000 each month in sales on Amazon.
  • 2% of Amazon sellers aren’t quite sure how much money they obtain in monthly sales.

How much do they profit?

The higher the profit margin, the more money sellers earn. It’s not easy to obtain high-profit margins within the first year of selling on Amazon, but few sellers make it, even in the first year. 

  • Around 70% of marketers obtain profit margins higher than 10%.
  • Approximately 20% of Amazon merchants have profit margins greater than 20%.
  • Almost 10% of the sellers stated that their business is within the first year, and they still don’t expect high-profit margins.

How much money Amazon sellers earn in a lifetime?

Around 50% of marketers on Amazon obtain a profit above $250.000 over time. This is pretty encouraging since most of them started just to gain a few extra bucks, and many of them struggle through the first year. 

  • About 38% of marketers hold lifetime profits of less than $25.000.
  • 13% of them obtain around $50.000.
  • Approximately 8% of traders earn up to $100.000.
  • Around 12% of them obtain lifetime earnings of up to $500.000.
  • More than 3% of Amazon marketers obtained $1.000.000.
  • Approximately 8% of them obtained between a million and $10.000.000. 

How long does it take to become profitable on Amazon in 2020?

The average time it took for Amazon business owners to obtain a highly profitable business is approximately one year. 

  • 22% of the sellers made a profit within 3 months.
  • 22% of them made it in 3-6 months.
  • 23% of the marketers obtained significant earnings within 6 to 12 months.
  • 13% of them made a profit between the first year and two.
  • 3% of the sellers made a profit after two years or more.

Even sellers with no experience managed to obtain earnings after a year or two. 

How many hours per week sellers need to invest in this online business?

Usually, when people are just starting their online business on Amazon, they already have a job. They are thinking about the time they need to devote to the second job, online selling business, to determine whether they can actually pull this off. While beginners need to invest more time until their store is entirely developed, sellers who are working on Amazon for a while, spend less than 30 hours per week. Once you find profitable products and niches and your business is all set up, you will need a lot less time to manage it.

  • 13% of Amazon marketers consume less than 4 hours of their time in one week.
  • 24% of them spend approximately 4 to 10 hours each week.
  • 20% spend more than 10 and up to 20 hours every week.
  • 15% of the sellers consume less than 30h each week, but more than 20 hours.
  • 10% spend less than 40 hours per week
  • 9% of marketers spend approximately 40-50 hours per week.
  • 3% of sellers spend up to 60 hours each week on Amazon business.
  • 6% of them spend more than 60h every week.

Software solutions for Amazon sellers, like IO Scout, will save a lot of your time, effort, and money. The comprehensive set of tools will help you run your Amazon online store more efficiently and make better strategic decisions that will lead straight to success. Accurate and reliable data received from IO Scout Amazon seller tools will help newbies, and professionals, understand the market better.

What is the most profitable item to sell on Amazon?

If you’re thinking about starting an online store on Amazon, you need to find profitable products with high profit margins and demand but with low competition. Aldo, this seems pretty logical, great products aren’t easy to find, and you will need a lot of time and research to find the right ones. Luckily, IO Scout has an excellent tool that will help you find rockstar products within seconds. Sellers who use Product Finder and Amazon Sales Estimator by IO Scout won’t need countless hours in front of the screen to find profitable products to sell in their stores. This tool analyzes more than 200 million products from the Amazon catalog very quickly. With the help of customizing filters, sellers can find the product that matches all of their specific criteria, on a dime. 

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