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New Amazon sellers are earning an average of nearly $30,000 in annual profits. What does it take to start selling on Amazon, and what can new sellers do to ensure they are profitable this year? Jungle Scout’s latest report has the data.

46% of new Amazon sellers cite a desire to “be their boss” as the top motivator to use the platform. Additionally, 42% of new sellers are looking for extra income to supplement their existing income. Many are also searching for flexibility to work from any location or to travel the world while more than a third want to feel successful or accomplished.

Whatever the reason for selling on Amazon, it’s the primary income stream for many.

So just how much can you expect to make selling on Amazon in 2023?

What we’ll reveal:

    1. How much Amazon sellers make, in sales and profits
    2. How long it takes sellers to start earning profits — and how much time and money they need to start
    3. Whether selling on Amazon will be profitable in 2023
    4. Tips from sellers to get started making money on Amazon now

1. How much do Amazon sellers make?

Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make more than $100,000 each month in sales. 45% of Amazon sellers make $1,000 to $25,000/month, which could mean $12,000 to $300,000 in annual sales.

Though there are several different methods for selling on Amazon, the most common is Amazon’s Fulfillment-by-Amazon (FBA) program.

Like any other business, selling on Amazon will involve some expenses and fees for the seller. Part of what makes Amazon FBA so appealing is that it simplifies this process for sellers.

Simply put, you choose a product, get it to Amazon’s warehouses, set up your Amazon listing, and Amazon takes care of the rest. Then you start seeing sales and profits.

What are the average monthly sales for Amazon sellers?

Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make more than $100,000 each month in sales.

Monthly sales Percent of sellers
Under $500 17%
$501-$1,000 10%
$1,001 – $5,000 17%
$5,001 – $10,000 12%
$10,001 – $25,000 16%
$25,001 – $50,000 12%
$50,001 – $100,000 8%
$100,001 – $250,000 5%
$251,000 – $500,000 1%

 

Selling on Amazon has been a viable way of building an e-commerce business for years, which attracts new Amazon sellers to the game. But that hasn’t limited their sales.

17% of SMB (small and medium-sized businesses) Amazon sellers have reached lifetime sales of over $100,000:

 

While sales are often a strong measure of a healthy Amazon business, they don’t paint a complete picture of how much Amazon sellers make — that is, what they take home. So let’s turn to profits.

How much do Amazon sellers profit?

The higher the profit margin, the better. Small companies often struggle to achieve profitability in their first few years, but Amazon SMB sellers see healthy profit margins.

Profit margin for SMB sellers Percent of sellers
~1-5% 7%
6-10% 16%
11-15% 19%
16-20% 17%
21-25% 19%
26-50% 16%
51-100% 3%
Not currently profitable 8%

While profits change based on factors including sales volume and business expenses throughout the year, sellers weighed in on their total lifetime profits since they started their Amazon businesses.

How much money have Amazon sellers made over time?

47% of SMB sellers have reached lifetime profits of more than $100,000 — not bad for what may start as a “side hustle” — and 12% have lifetime profits between $100,000 and $500,000.

Lifetime profits

47% of Amazon SMB sellers achieve lifetime profits over $100,000

 

And for many Amazon sellers, those profits turn quickly.

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2. How long does it take to become profitable on Amazon?

Across all respondents, the majority (68%) said they were profitable within the first year of selling.

So, how do you get started selling on Amazon? We asked sellers how much money and time they invested to get their businesses up and running.

How much do you need 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. As with many things, what you put in impacts what you get out. But that doesn’t have to mean cash — it can mean time, the necessary data to inform your decisions, or simply the will to succeed.

One quarter (25%) of Amazon sellers spent less than $1,000 to start their businesses. Overall, most sellers (58%) spent less than $5,000 to get started selling on Amazon.

What is that money spent on? Typically, initial costs include sourcing your product (including samples), Amazon fees, and promotions. (Read more about how much it costs to sell on Amazon here.)

And where does that money come from? An overwhelming number of sellers (77%) are bootstrappers, funding their entrepreneurial endeavors with their cash. A smaller portion of sellers (37%) borrowed money from banks, family, or other lenders.

How much time do you need to start selling on Amazon?

Overall, Amazon sellers don’t need to spend a lot of time on their Amazon businesses. Most (76%) spend fewer than 20 hours per week.

Nearly three-quarters (71%) of sellers were also able to launch their businesses within 6 months.

You’re likely to give more time to get your business off the ground in its early stages; after they find products to sell and create their niche, many sellers simply maintain their businesses and let the income roll in.

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3. Is selling on Amazon profitable in 2023?

Nearly all sellers (85%) had planned to continue selling on Amazon in 2023, and 82% are optimistic that selling on Amazon will be a viable way to make money online in the future, compared to 63% who said the same last year.

Amazon is an industry unto itself, and it’s irrevocably tied into so many other industries that the opportunity for sellers to find a profitable niche to sell in is massive.

While 9% of SMB sellers are not yet profitable, most are already taking big Amazon money home — or using it to invest further in their businesses:

What does that amount to in dollars? Let’s just say it’s enough to be considered much more than “side hustle money.”

How new sellers could start making nearly $30K/year on Amazon

SMB 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 SMB sellers, 21%, new sellers are averaging $2,451 per month or $29,412 in annual profits.

And for the 38% 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.

A handful of new sellers 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.

*Weighted average calculated based on reported sales by the midpoint of the range, and capped at the high-end range ($250K) to prevent arbitrary projection.

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4. Takeaways from successful Amazon sellers for a profitable 2023

Countless have tried their hand at selling on Amazon. So what can you learn from those who’ve had distinct, measured success? Here are the top takeaways:

Achieve big wins in little time. 

What Amazon sellers say:

Put in the effort — it will pay off.

What Amazon sellers say:

Find the right resources and tools

What Amazon sellers say:

For more tips and resources, check these out:

If you’re ready to start selling on Amazon, consider signing up for Jungle Scout’s Freedom Builder Bootcamp! Join Jungle Scout Founder and CEO Greg Mercer on a limited boot camp course designed to get you up and running as a seller on Amazon.

*Methodology

Between December 1, 2022 – January 3, 2023, Jungle Scout surveyed more than 2,000 Amazon sellers, including prospective and former sellers. 

This article reflects responses from 715 active first- and third-party Amazon sellers earning $2 million or less in annual e-commerce revenue. 

Also included in the analysis for Jungle Scout’s 2023 State of the Amazon Seller Report were sellers and brands earning over $2 million in annual revenue, respondents representing agencies that offer services to Amazon sellers and their businesses, sellers who are looking to launch a business on Amazon but have not yet started, and respondents who previously sold on Amazon. 

Respondents represent 117 countries, all 20 Amazon marketplaces, and all relevant Amazon product categories. They are ages from 18 to 80+, as well as all genders and levels of education. 

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