Does it worth to sell via Amazon FBA, when almost everyone already talked about that? Definetly yes, but let me prove you why.
How much do Amazon sellers make?
This question that every new seller asks is, How much can I make selling on Amazon? Let’s look at some stats on what current sellers profit from selling products on Amazon FBA.
It is also worth mentioning that nearly 65% of third-party sellers have reported earning profit margins higher than 10% and 32% reported earning profit margins above 20%.
Let’s see some monthly sales numbers:
- 50% of Amazon sellers sell anywhere from $1,000 to $25,000/month
- 13% of Amazon sellers sell $25,000-$250,000/month
- 22% of sellers sell under $500/month
|Monthly sales||Percentage of Amazon sellers|
|$1,001 – $5,000||27%|
|$5,001 – $10,000||13%|
|$10,001 – $25,000||10%|
|$25,001 – $50,000||8%|
|$50,001 – $100,000||4%|
|$100,001 – $250,000||1%|
|I don’t know||3%|
Many sellers have recently begun to sell products on Amazon, and, with the power of Amazon’s supply chain and massive customer base, they are seeing early signs of success.
Sure, revenue numbers are great, but what is the profit?
I know, I know. Revenue doesn’t tell the whole story of someone’s business. You could have $1 million in sales, but you’re not making any money if your costs are over that.
Compared to other traditional businesses such as brick-and-mortar, Amazon sellers see relatively higher profit margins.
- 65% of Amazon sellers achieve profit margins greater than 10%
- 32% of Amazon sellers earn at least a 20% profit margin
- 14% of Amazon sellers have seen lifetime profits over $100,000
Not too bad, considering many new sellers start this venture as a side hustle!
|Profit margin||Percentage of Amazon sellers|
|Not currently profitable||8%|
These numbers are encouraging to see but it’s worth noting that 8% are not yet profitable and another 8% don’t know if they’re profitable at all. If you are unsure of your profits and losses, you can get a full financial picture of your business by using a tool such as Sales Analytics to track your performance.