Amazon Sellers Current Status Survey Report: The Real Survival Situation Revealed

Amazon Sellers Current Status Survey Report: The Real Survival Situation Revealed


At the end of 2019, Jungle Scout, an Amazon product selection tool, conducted a comprehensive survey of 1,046 Amazon sellers, covering business models, sales and profits, future plans, etc. These sellers came from 93 countries around the world, had been selling on Amazon for more than a year, involved 14 Amazon sites and all product categories, and were between 18 and 80 years old.

Seller's age
57% of sellers are between 25-44 years old, and more than a third are over 45 years old:
Seller's gender
Male sellers account for about 70%:
The main differences between male and female sellers are as follows:
  • Male sellers spend more time managing their business than female sellers
  • Male sellers are more interested in using black technology than female sellers
  • Male sellers are more likely to operate their own brands
  • Although most male sellers say their business is profitable overall, the percentage of profitable male and female sellers is the same, both exceeding 25%.
  • Female sellers have lower starting capital than male sellers, but their business development level is faster than that of male sellers
  • Female sellers are often older than male sellers
  • Female sellers are more willing to try different e-commerce platforms
  • Female sellers are more likely to choose the retail arbitrage model
Product types and logistics methods
The product categories sold by the surveyed sellers include (multiple categories can be selected):
Logistics method:
  • 66% only ship via FBA
  • 6% Self-delivery
  • 29% ship both by FBA and by courier
The differences between FBA and FBM sellers include:
  • Among FBA sellers, a high proportion of sellers focus on selling their own brands; among FBM sellers, the proportion of sellers using other models is even higher;
  • FBA sellers spend more to start their business than FBM sellers;
  • It is easier for FBA sellers to optimize listings, manage advertising, and finances than FBM sellers;
  • FBM sellers can start their business faster than FBA sellers;
  • The number of listings of FBM sellers is higher than that of FBA sellers;
  • FBM sellers have higher profit margins than FBA sellers.
Seller's business model
The business models of the sellers surveyed are as follows:
      
Note:
  • Retail Arbitrage — Buying discounted merchandise from retailers and selling it to Amazon customers.
  • Online Arbitrage - Buying discounted merchandise from the Internet and selling it to Amazon consumers.
The profit margins of the above business models are as follows:
  • Handmade: 28%
  • Private label: 21%
  • Online arbitrage: 20%
  • Retail arbitrage: 20%
  • Wholesale: 15%
  • Dropshipping: 13%
Site
Most of the sellers surveyed operate primarily on the US site , but many also operate on other sites.
Product quantity
36% of sellers list no more than 5 valid products , and 21% of sellers list 100 or more products.
Note: Products with multiple variations are considered 1 product.
Seller's monthly sales
74% of sellers have monthly sales of more than $1,000, 39% have monthly sales of more than $10,000, and only 24% have sales of less than $1,000:
Total sales
Half of the sellers had total sales of more than $100,000, and 22% had total sales of more than $1 million.
Profit Margin
67% of sellers have a profit margin above 10%, 36% have a profit margin above 20%, but there are still 8% of sellers who are not profitable.
Total Profit
Since operating Amazon business to date, 43% of sellers have made profits of more than 25,000 US dollars, and 5% have made profits of one million US dollars.
Profitability
67% of sellers started to make a profit within one year, 13% made a profit within one to two years, and 3% made a profit after more than two years:
  
Features of Million Sellers:
  • Compared with ordinary sellers, millionaire sellers spent almost the same amount to start their Amazon business, but they launched new products faster, with 46% of sellers launching a product within 6 weeks;
  • The number of products is key. 59% of the top 100 sellers have more than 50 product listings.
  • 74% of the millionaires sell their own brands;
  • Millions of sellers find profitable products faster, but face more challenges managing expenses and inventory.
Seller startup capital
59% of sellers have a starting capital of less than $5,000 , and 28% have a starting capital of even less than $1,000:
Preparation time
From preparation to the first product listing, 60% of sellers completed it within 3 months :
Time spent running Amazon per week
57% spend less than 20 hours a week, 13% spend only 30 minutes a day, and 18% spend more than 40 hours a week:
Plans and Goals
54% of sellers plan to launch new brand products, and 48% plan to launch other new products; 46% will focus on optimizing existing product listings, and 41% hope to get higher ratings and more reviews; 39% expect to invest more budget in advertising; 36% plan to enter other sites, and 32% are preparing for multi-channel sales; 23% of sellers will purchase tool software, and 19% are preparing to launch independent sites.
The Pros and Cons of Selling on Amazon
92% of sellers plan to continue selling on Amazon. Amazon is twice as likely to be profitable as other business models. Although sellers are optimistic about Amazon's business, they are also concerned about fees, competition and other issues.
78% of sellers are concerned about the increasing advertising costs on Amazon, and 66% are worried about having to invest more money in the future. Competition with Amazon and black technology sellers is also a concern for sellers.


Do you plan to continue working for Amazon in 2020? Leave a comment at the end of the article to tell us~


Compiled by ✎ Mary/
Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained.

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