As a million-dollar business owner, one question I am often asked is, “should I really put effort into selling on Amazon?” and “is it worth it?”. You should know my answer to those questions by now, but I wanted to share some proof in the data on why Amazon is such an incredible platform for handmade artisans and business owners to tap into.
JungleScout performed a report on Amazon sellers and took a deep dive into Amazon seller’s experiences and data.
Let’s chat about some of the interesting data that is included in the report for Amazon seller statistics for 2021:
62% Increase in Profit
In the report, 62% of Amazon sellers said that their profit has increased in 2021, which is 3 out of every 5 sellers. If that doesn’t scream business growth, I don’t know what does. It’s an exciting sign that even with increasing competition, Amazon sellers can still grow their businesses and increase their profit margins.
64% Profitable in First Year
How about this one? 64% of Amazon sellers are profitable in their first year on the platform. That’s incredible when we compare that information to Etsy, where sometimes it can take months even to make your first sale, let alone become a profitable business owner.
Most new Amazon sellers with 1-2 years on the platform take home approximately $42,000 per year in profit. The key term here is profit, not just revenue.
Fulfillment Method Data
Another interesting statistic from this report is that:
- 64% of sellers do FBA (fulfillment by Amazon) only
- 9% of sellers do FBM (fulfillment by merchant) only
- 34% of sellers do a mix of FBA and FBM
Interesting Amazon Business Stats
- Amazon’s Annual Revenue: $386,000,000,000
- Amazon.com has 3 billion visits per month
71% of Sellers Have Sales Over $1,000 Per Month
That’s right, 71% of Amazon sellers have monthly sales of over $1,000 per month. And, even better, 26% have monthly sales of over $25,000 per month.
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There are definitely challenges when selling successfully on Amazon, but these numbers don’t lie. It’s absolutely worth it, and it’s so incredible that we have a space for handmade businesses with the potential audience that Amazon has built for its 3rd party sellers.
What statistic do you find the most interesting? You can read more and download the full report right here from JungleScout.
