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Recently, the enterprise software platform Enterprise Apps Today released the "2024 Amazon Seller Statistics" report. This report covers a number of data such as products, platforms, profits, and commonly used software for sellers . From the report, we can see some major trends and operating models of the Amazon market in 2024.
As of 2022, there are approximately 9.5 million Amazon sellers worldwide, 500,000 of which are located in the United States.
By 2023, 30% of SMB sellers will be first-party sellers, 70% will be third-party sellers, and 7% of Amazon sellers will be both first-party and third-party sellers.
- On average, US sellers sell 7,400 products per minute.
- In 2023, revenue from third-party sellers increased by 20% year-on-year.
- 68% of sellers become profitable within less than 1 year of starting their business.
- As of now, 89% of small and medium-sized businesses (SMBs) are profitable.
- In 2023, 72% of small and medium-sized sellers will have monthly sales of US$1,000, and 55% of large sellers will have monthly sales of US$5,000.
- By 2023, 47% of small and medium-sized sellers have generated $100,000 in profits, and 73% of large sellers have generated $1 million in profits.
- 55% of small and medium-sized sellers and 67% of large sellers generated profit margins of more than 15%.
- In 2023, 52% of Amazon sellers have opened new e-commerce platforms, an increase of 30% over the same period, while 50% of sellers have opened new international markets.
- In 2023, 61% of sellers selling on Amazon also sell on other e-commerce platforms, an increase of 58% from 2022.
- Of all Amazon sellers in the United States, 45% conduct business on at least one cross-border e-commerce platform.
- In 2023, the top three sources of funding for Amazon sellers working alone are self-financing (77%), credit cards (27%), and business loans (15%).
- Most sellers start out with more than $10,000 in capital.
- 51% of sellers sell 0-10 products on Amazon, and 35% of sellers sell 0-5 products.
- 58% of Amazon sellers price their products between $16 and $50.
- In 2023, home & kitchen, beauty & personal care, and clothing, shoes & jewelry were the most popular product categories for small and medium-sized sellers.
- As of 2023, the United States is Amazon's largest market in the world.
- It takes most sellers 3 to 6 months to gradually start taking orders.
- As of 2023, e-commerce platforms are the most commonly used advertising channel for sellers, accounting for 59%.
- 31% of sellers spend 4 to 10 hours on Amazon per week, and only 3% of sellers will spend more than 60 hours on Amazon by 2023.
By education level
On Amazon, 40% of sellers have at least a bachelor’s degree, 24% have a master’s degree, 16% have an associate’s degree/high school diploma or secondary education, and only 2% have some other type of education.
By age
The data shows that the largest number of sellers are in the 35 to 44 age group, accounting for 30%, followed by sellers aged 25 to 34, accounting for 28%. Currently, Amazon has sellers of all ages (18 to 65 years old), and they are distributed in more than 20 countries.
By gender
On Amazon, male sellers account for the majority, accounting for 72%, while female sellers account for 26%. In addition, 2% of sellers do not disclose their gender.
By Geographic Location
The top three countries with the largest number of Amazon sellers are the United States (55%), the United Kingdom (7%), and Canada (6%). It is worth mentioning that the number of Amazon sellers in Canada is twice that of India. In addition to these countries, other Amazon sellers are mainly distributed in Pakistan (2%), China (2%), Italy (2%), and Nigeria (2%).
By employment status
Data shows that most sellers on the Amazon platform are employees of a company and work more than 40 hours a week. 35% of sellers own their own business. Other sellers are part-time workers, retired, unemployed but looking for a job, students, or unable to work due to disability.The top three sales models that Amazon sellers prefer by 2023 are private label (54%), wholesaler (26%), and retail arbitrage (25%). Other popular sales models include online arbitrage (24%), direct mail (17%), and handmade (8%). In 2023, Facebook became the main social media platform for sellers to place advertisements, with 67% of sellers using it. Other popular social media platforms include Instagram (49%), Pinterest (15%) and TikTok (31%). Data shows that 12% of businesses hired influencers on social media to promote their brands in 2023. On the other hand, 24% of sellers use personal or brand social media accounts to promote their products.
In 2023, the top three alternative platforms for Amazon sellers are eBay, Shopify, and Walmart. However, compared with the previous year, the proportion of sellers choosing eBay has dropped by 14%.
On the contrary, the number of sellers who chose Shopify and Walmart as alternative platforms increased by 6% and 28% respectively. In addition, Etsy, Facebook Marketplace, Alibaba, Instagram, AliExpress, WooCommerce and WordPress are also popular alternative platforms.
In 2023, 86% of sellers use Amazon Logistics (FBA), which allows sellers to send products to Amazon warehouses in advance. Once a customer places an order, Amazon will take care of everything from packaging to delivery. On the other hand, 37% of Amazon sellers use FBM to deliver goods directly to buyers.
In 2023, about 70% of Amazon sellers will spend less than $2,500 on advertising, only 1% will spend between $50,000 and $100,000; about 32% will spend between $2,500 and $50,000.
As of 2023, the United States, Canada, the United Kingdom, Mexico, and Germany are the top five favorite markets for Amazon sellers, accounting for 83%, 24%, 18%, 12%, and 10%, respectively.
The most profitable product categories for Amazon sellers are beauty and personal care (30%), home and kitchen (30%), and apparel, shoes and jewelry (27%) by 2022. On the other hand, mobile phones and accessories are relatively poor performing categories worldwide.
Data shows that Black Friday is the shopping event with the largest sales growth for Amazon sellers in the United States, contributing 34% of sales. Other events contribute as follows: Prime Day (17%), Cyber Monday (13%), Thanksgiving (10%), New Year (7%), Prime Early Access Sales (6%) and Super Sunday (5%).
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