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Start Selling On Amazon: How Much Do Amazon Sellers Make?

by Denis K. | | 17 min read
how-much-do-amazon-sellers-make

One question ecommerce entrepreneurs constantly ask themselves is — how much do Amazon sellers really make? If you’re interested in becoming an Amazon seller, you may be wondering how much money you can earn. Selling on Amazon is becoming increasingly popular as more people look for ways to make money online. With the proper knowledge and dedication, it is possible to make a substantial income through selling on Amazon.

If you’re reading this, you’re likely curious about how much money you can make as an Amazon seller. The truth is, the income potential on Amazon can vary greatly depending on a variety of factors. Nevertheless, whether you’re just starting out or are an experienced ecommerce pro, this article has something for you.

Starting your own business on Amazon can be exciting and rewarding! And the best part is, new sellers on average are earning a whopping $30,000 in annual profits. That’s pretty awesome, right?

But what does it take to start selling on Amazon and how can you make sure you’re profitable this year?

Well, Jungle Scout has all the answers for you in their latest report. In fact, according to the report, a whopping 49% of new Amazon sellers are driven by the desire to be their own boss and 38% are looking for extra income to supplement their existing income. It’s a great way to earn some extra cash while having the freedom to work from anywhere you want, or even travel the world.

No matter the reason, Amazon selling can be a great primary income stream for many. So, let’s dive in and explore the earning potential of Amazon sellers together.

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Why Amazon is the preferred destination for online sellers

picture banner with money that amazon sellers make

Selling on Amazon is like hitting the jackpot for sellers! With millions of customers, you have access to a huge potential market.

Amazon has a user-friendly interface and a simple registration process, which means you can start listing your products and reaching potential customers almost immediately. Plus, with the platform’s wide range of tools and resources, such as Amazon Seller Central, you can manage your listings, inventory, and orders with ease.

More than 89% of US buyers agree that they would rather buy products from Amazon than from other ecommerce sites

Another fantastic thing about Amazon is that it offers a variety of selling options to suit different business models and goals. You can choose to sell your own products as a merchant or use the platform’s fulfillment services to sell products that are stored and shipped by Amazon. This means you have the flexibility to choose the option that best suits your business needs. And let’s not forget about the variety of marketing and advertising tools that Amazon offers to help sellers promote their products and reach more customers.

Amazon has 300+ million active users

Furthermore, Amazon’s conversion rate is through the roof! This means that people who visit the platform are more likely to make a purchase. This is thanks to Amazon’s reputation as a trusted online marketplace. Plus, Amazon’s search algorithm is optimized to help customers find the products they’re looking for quickly, which can increase the chances of a sale.

Finally, Amazon has a very supportive community of sellers who are more than happy to share their knowledge and experience. This can be a great resource for new sellers who are looking for guidance and advice on how to succeed on the platform. With all these amazing features, it’s no wonder why Amazon is one of the best ways to create an additional income stream.

How much do Amazon sellers actually make

The earning potential on Amazon is pretty amazing! Most sellers make at least $1,000 per month in sales, and some super-sellers are making more than $100,000 each month!

Here are some captivating Amazon sales stats for you to know.

According to statistics, 50% of Amazon sellers make $1,000 — $25,000/month, which could mean $12,000 to $300,000 in annual sales. Looks like definitely a great way to create an additional income stream! 

13% of sellers make between $25,000 and $250,000/month, resulting in annual sales between $300,000 and $3,000,000. That’s like hitting the jackpot!

Nevertheless, not everyone makes it to the top of the mountain and makes the same amount of money. For instance, 22% of sellers make under $500/month in sales, and 3% don’t know their monthly sales.

Evidently, starting a side-hustle selling on Amazon definitely has great potential. So, if you’re ready to start your Amazon selling journey, go for it! With the right approach and a bit of hard work, you can turn your Amazon selling venture into a profitable business.

  • What is the profit potential for Amazon sellers 

When it comes to measuring the success of an Amazon business, sales are definitely something to be excited about!

Seeing those numbers go up is always a good feeling. However, let’s not forget about profits! It’s not just about how much you’re selling, it’s about how much you’re making after all the expenses.

So, let’s turn our attention to profits and dive into the nitty-gritty details of what money an Amazon seller takes home. It’s essential to have a clear picture of your expenses and profits, so you can make informed decisions about your business and optimize it for even more success.

By focusing on profits, you’ll be able to make more informed decisions and grow your business even more.

The good news is, Amazon sellers often see healthy profit margins. Nearly two-thirds of sellers (65%) see profit margins higher than 10%. And 32% see profit margins above 20%! That’s pretty amazing, right?

Of course, not every business is the same and some sellers may not be profitable just yet, 8% said their businesses are not yet profitable. It’s important to remember that profit margins can change based on factors like sales volume and business expenses throughout the year.

But it’s worth noting that these numbers are based on total lifetime profits since sellers started their Amazon businesses. So, even if you’re just starting out, it’s possible to achieve healthy profit margins with Amazon. It’s all about finding the right products and strategies that work for your business.

14% of Amazon sellers achieve lifetime profits of over $100,000

Transforming dreams to reality: Real stories of ecommerce triumph

  • If we can make people happier, and bring more joy by getting more people outside, then why wouldn’t we want to do that?

Picture of Sarah Douglass, creator of Wise Owl

Sarah Douglass, founder of Wise Owl Outfitters, had a passion for camping but disliked the high costs of camping gear. She and her husband spent $2,500 on gear, which inspired her to start Wise Owl. Now, Wise Owl is a successful Amazon business, selling top-rated hammocks and camping accessories.

Sarah believed everyone should have affordable access to nature, which drove her business mission. Despite lacking formal education, Sarah and Todd started Wise Owl, focusing on hammocks for their simplicity and appeal. Starting small, they gradually expanded their product line, achieving significant success with nearly 50,000 ratings and multiple best seller badges on Amazon.

By 2021, Wise Owl dominated the camping hammock market on Amazon, proving that success can come from pursuing one’s passion.

  • “We’re on a mission to redefine the bedding game”

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Let me tell you the story about this one Amazon store that’s all about keeping it green with eco-friendly bedding stuff. We’re talking soft, cozy sheet sets and pillowcases for grown-ups and kids alike. The kicker? They’ve raked in over $2 million!

They’ve been changing the game in eco-friendly home goods since 2011. Based in Tampa Bay, Florida, this isn’t just any bedding store. It’s a testament to what happens when you combine a passion for sustainability with smart ecommerce strategies. Let’s peel back the layers of their success and see what makes them tick.

Niche Focus: Home essentials, with a spotlight on eco-friendly bedding products. CGK Unlimited has carved out a special place in the hearts of adults and kids looking for greener dreams. Revenue Revelations: Pulling in an impressive $2,100,000 a year with around 70,000 orders annually, this store is living proof of the lucrative potential in green goods.

By understanding their audience’s desires for eco-friendly, high-quality, and affordable bedding, CGK Unlimited has nailed their market fit.

  • “High-ticket sales changed everything”

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Kelly’s journey in the ecommerce world is truly remarkable. Starting with a dropshipping business, she turned it into a success story, making $28,000 in just 30 days. In this article, we’ll explore how Kelly achieved this feat and learn valuable lessons for anyone interested in dropshipping.

Kelly’s journey began with her transition from university to ecommerce, where she juggled multiple commitments but remained resilient. Despite initial experiments with low-ticket dropshipping, she found success with high-ticket items, earning significant revenue. Her breakthrough came with a $16,000 sale, showcasing the potential of high-ticket sales and strategic ad targeting.

Reflecting on her journey, Kelly advises aspiring entrepreneurs to put in consistent effort and stay proactive. Her success serves as a blueprint for those interested in high-ticket dropshipping, showing that with determination and strategy, financial freedom is achievable.

  • A diverse collection for every occasion

Brisco amazon store numbers

Ever dreamed of running your own trendy fashion store on Amazon? Well, it’s not just a fantasy — it’s a reality! Let me introduce you to Brisco, an Amazon store that’s been making waves by selling simple yet essential fashion items. And here’s the exciting part — they made over $75,000 in just one year!

Specializing in fashion essentials, Brisco has carved out a significant presence with approximately $75,000 in annual revenue, translating to about $6,250 each month, from an impressive 5,000 orders annually.

Their secret? A keen focus on everyday fashion essentials for men, women, and even kids. Brisco’s online store stands out not just for its quality and comfort but also for its incredibly diverse assortment of apparel, perfectly tailored for almost any occasion you can think of.

  • Nobody got rich with a salary

meet Lana Rahib known as the ecom wolf

As a young immigrant in the United States, Lara Rahib witnessed her family’s hopeful pursuit of prosperity. After studying biology, Lara confronted the harsh reality of a competitive job market, experiencing rejection and financial strain. Yet, these struggles fueled her determination to carve her path. Transitioning to real estate offered hope, but setbacks tested Lara’s confidence. In 2016, she embraced ecommerce, driven by a desire for autonomy and passive income.

Starting modestly, Lara learned the essentials of online sales and digital marketing, launching her store and witnessing sales growth. Despite challenges with Amazon’s policies, Lara asserted her independence by establishing her ecommerce site. Within months, her sales skyrocketed, marking her arrival as the ‘Ecom Wolf’. Today, Lara’s venture earns $4 million annually, a testament to her resilience and determination.

Her journey serves as an inspiration for those grappling with fear and uncertainty, proving that with perseverance, dreams can be realized.

  • “It’s been a really exciting journey for me, for sure”

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For a dynamic entrepreneur and mother of three, the path to achieving financial freedom led to Sellvia. She chose this platform due to its ease of use, swift shipping, quality control, and affordability, all contributing to a minimally risky start to her ecommerce journey. Sellvia’s amiable and skilled team provided ample support, ensuring a smooth ride into the ecommerce world.

Her promotional strategies prioritize organic growth, aiming to boost visibility and sales mainly via social media collaborations, particularly on Pinterest. The intent is to establish a strong presence on platforms like Facebook, Instagram, TikTok, Snapchat, Tumblr, Twitter, YouTube, LinkedIn, and Pinterest, believing in the potency of a well-curated social media strategy.

Balancing the excitement of her ecommerce journey with motherhood, she cherishes the flexibility offered by the remote lifestyle.

Her story stands testament to Sellvia’s empowering role in facilitating ecommerce ventures!

  • “I knew nothing when I started”

Get A Free Online Store To Launch Your Dropshipping Journey

For Martin from Denmark, Sellvia emerged as a pivotal ally, solving critical issues with delivery times and customer complaints that once plagued his business. His online venture — centered on selling home exercise equipment and sporting goods — was born out of personal interest and well-timed market intuition, launched amidst the pandemic’s surge.

This experience deepened his understanding of digital marketing, social media, and website management — areas he had no prior knowledge of. It brought a new dimension to his existing sales career and expanded his professional network with like-minded individuals intrigued by ecommerce and digital marketing.

Now, his ambitions lie in scaling his business, aiming for a monthly profit of $10,000, launching additional stores, and expanding to platforms like Etsy and Amazon. He’s already taken a step towards this goal by ordering a Sellvia Turnkey Amazon business. This diversified strategy points to a promising future for his flourishing ecommerce endeavor.

Ready the story of how he managed to create a $14K revenue store for yourself!

  • Selling electronics online

Discover how Tech Exchangee, a savvy Amazon seller, is making a staggering $5,000 per day by selling renewed electronics. Tech Exchangee has cracked the code to making a fortune on Amazon, and the secret lies in selling renewed gadgets. If the idea of earning big with minimal investment intrigues you, read on to uncover how this approach can set you on the path to financial freedom.

Their ascent to an impressive $1.8 million in yearly revenue on Amazon is a masterclass in strategic ecommerce execution. Aligning with industry giants like Apple, Samsung, and Beats was a game-changer. This move provided access to a customer base already committed to quality and brand loyalty, paving the way for a trustworthy online presence.

How quickly can you start seeing profits from selling on Amazon?

how much do amazon sellers make

With Amazon, it’s possible to see profits quickly! According to the statistics, the majority of sellers (64%) said they were profitable within the first year of selling. What’s more, 21% of sellers reported profits within 3 months of starting their business, 24% reported profits within 3-6 months, 19% reported profits within 6 months — 1 year and 11% reported profits within 1-2 years.

It’s important to keep in mind that everyone’s journey is different, and some sellers may take longer to become profitable, but with Amazon, the earning potential is high, and the time for profitability is relatively short. And if you’re wondering, only 2% of sellers reported profits within more than 2 years.

  • What is the initial investment required to start selling on Amazon?

One of the biggest hurdles for people starting to sell on Amazon is the idea that it will cost them too much money. But it’s important to remember that with many things, what you put in impacts what you get out. It doesn’t have to be all about cash, it can mean time, the necessary data to inform your decisions, or simply the will to succeed.

According to statistics, nearly one-third (32% ) of Amazon sellers spent no more than $1,000 to start their businesses. And the majority of sellers (69%) spent less than $5,000 to get started selling on Amazon.

Here are some more numbers to breakdown of the costs

17% of sellers spent less than $500 to get started, while 15% spent $500-$1,000, 19% of Amazon sellers $1,001-$2,500, another 19% invested $2,501-5,000, 16% put in $5,001-$10,00 in their business, and 13$ of sellers spent more than $10,000. 

When it comes to starting an Amazon business, you might be wondering where that money goes. Typically, initial costs include sourcing your product (including samples), Amazon fees, and promotions. But don’t worry, you can find more detailed information on the cost of starting an Amazon business here.

The question that comes next is where does the money come from? An overwhelming number of sellers (82%) are bootstrappers, which means they fund their entrepreneurial endeavors with their own cash. This means they invest their own money to start their business. But, don’t worry if you don’t have that kind of cash, a smaller portion of sellers (22%) borrowed money from banks, family, or other lenders.

  • How much time investment is required to begin selling on Amazon?

Starting an Amazon business doesn’t have to take up all your time!

In fact, most sellers (64%) spend fewer than 20 hours per week on their business. Moreover, 16% of sellers spend fewer than 4 hours per week, 28% spend 4-10 hours, 20% spend 11-20 hours, 13% spend 21-30 hours, 12% spend 31-40 hours, 6% spend 41-50 hours, 3% spend 51-60 hours and 4% spend more than 60 hours.

And the best part is, you don’t have to wait forever to launch your business. Most sellers (78%) were able to launch their businesses within 6 months. It’s important to remember that you’ll likely give more time to get your business off the ground in its early stages, but once you find products to sell and create your niche, many sellers simply maintain their businesses and let the income roll in.

How new sellers start making a living on Amazon

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Sellers are making an average of $11,671 in sales each month — or $140,052 in sales per year. Considering the average profit margin of sellers, 21%, new sellers are averaging $2, 451 per month or $29,412 in annual profits. And for the 29% of sellers with profit margins of 21% and higher, they could be taking home monthly profits upwards of five figures and beyond.

New Amazon sellers are earning an average profit of nearly $30K per year. It’s not just about the average sellers, there are a handful of new sellers who are fortunate enough to be raking in incredibly high sales — upwards of $250,000 per month — $3 million per year. While these “super sellers” are outliers from the average seller, they’re certainly aspirational.

New Amazon sellers are earning an average profit of nearly $30K per year

Tips from top-performing Amazon sellers for a successful 2024

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With the right knowledge, you can be on your way to success too. So, what can you learn from the top-performing Amazon sellers? Here are the key things to keep in mind:

  • Reaching your results in little time

With Amazon, you can become a successful seller in no time! In just three months, more than half of all Amazon sellers have seen success.

Many of them spend just 10 hours or less per week on their business. So, why wait? Start your Amazon business today and start making big wins in little time.

  • The more effort you put in — the more it will pay off

60% of sellers agree that it takes effort, but the rewards are worth it.

Many Amazon sellers are still growing and evolving their business, with 45% planning to add new products in the coming year.

If you’re looking for a way to make money online, Amazon is a great option — don’t miss out on the potential to create a successful business!

  • Find the right resources and tools

For Amazon sellers, success is within reach! The most important factors in building a successful business are having the time to commit to it and having the right information and tools. With these two elements in place, you’ll be well on your way to achieving success as an Amazon seller.

With the right strategies and commitment, you can start making money as an Amazon seller today. Don’t wait — start your journey to success on Amazon and begin tapping into the potential of this lucrative platform! Book a call with our business advisors for an easy and seamless start in the exciting world of Amazon ecommerce!

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by Denis K.
Denis is a copywriter at Sellvia. Having graduated from the Faculty of International Business as a specialist in advertising, he explores the rapidly changing and evolving digital marketing industry and feels committed to sharing his findings with a wider reader’ audience.
3 Comments
subhan October 17, 2023 22:14:33

how con i sell product on amazon

Artemis K. October 18, 2023 5:38:49

Hi, thank you for your interest!
Please feel free to book a call with our business advisor willing to give you details — https://sellvia.com/calendar-welcome/

Eduardo Mendieta January 12, 2024 15:11:01

Where can I buy products to resell them on Amazon????

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