How Much Do Amazon Sellers Make? [Answered]
Many new entrepreneurs wonder: How much do Amazon sellers really earn? If you’re considering selling on Amazon, you’re probably curious about the earning potential. Selling on Amazon is gaining popularity as more people seek ways to earn money online. With the right knowledge and effort, you can make a good income through it. The truth is, Amazon income can vary widely due to different factors. Whether you’re just starting or you’re an experienced ecommerce expert, this article has insights for you.
Starting your own Amazon business is thrilling and rewarding! And here’s an exciting fact: new sellers typically make around $30,000 in profit annually. Impressive, isn’t it? But what does it take to start selling on Amazon and ensure profitability this year?
Jungle Scout has the answers you need in their latest report. According to it, 49% of new Amazon sellers want to be their own boss, and 38% are seeking extra income. It’s a fantastic way to earn money flexibly, whether you prefer working from home or exploring the world.
No matter your motive, selling on Amazon is a significant source of income. So, let’s delve into the earning potential of Amazon sellers together.
Why Amazon is the preferred destination for online sellers
Selling on Amazon is like hitting the jackpot for sellers! With millions of customers, you can tap into a vast market. Amazon makes it easy to get started with its user-friendly interface and simple registration process.
You can list your products and reach potential customers almost immediately. Plus, Amazon Seller Central provides tools to manage your listings, inventory, and orders seamlessly.
A remarkable 89% of US buyers prefer shopping on Amazon over other ecommerce sites.
Amazon boasts over 300 million active users.
Moreover, Amazon’s high conversion rate means visitors are more likely to buy, thanks to its reputation as a reliable online marketplace. The platform’s search algorithm enhances product visibility, boosting sales potential.
Additionally, Amazon fosters a supportive community of sellers eager to share knowledge and tips. This support is invaluable for new sellers aiming to succeed on the platform. With all these outstanding features, it’s clear why Amazon is among the best ways to generate additional income.
Here’s how much an Amazon seller makes
The earning potential on Amazon is truly remarkable! Many sellers consistently earn at least $1,000 per month, while top sellers can rake in over $100,000 monthly!
Here are some intriguing Amazon sales figures to consider:
- Half of all Amazon store owners make between $1,000 and $25,000 per month, translating to annual sales ranging from $12,000 to $300,000. It’s a fantastic way to boost your income!
- Thirteen percent of sellers generate between $25,000 and $250,000 each month, which means annual sales of $300,000 to $3,000,000. That’s hitting the jackpot!
- However, success varies: 22% of sellers earn less than $500 per month, and 3% are uncertain about their monthly sales.
Clearly, starting a side business on Amazon holds a huge potential. If you’re ready to begin your Amazon selling journey, go ahead! With the right strategy and dedication, you can transform this venture into a profitable enterprise.
-
The profit potential for Amazon sellers
14% of Amazon sellers achieve lifetime profits of over $100,000
Starting an Amazon business? Sales are exciting, but profit is what really matters. Here’s why focusing on profits can help you succeed.
Why profits matter: Profits show how much money you’re actually making after all expenses. Understanding this helps you make better decisions to improve your business.
High profit margins ahead: Many Amazon sellers have strong profits. About 65% of them have profit margins over 10%, and 32% have margins above 20%. That’s impressive!
All you need is enthusiasm: Not all sellers are profitable right away. About 8% are still working on it. Profit margins can change based on sales and expenses, so it’s important to keep track.
Set up today, benefit for the years to come: These numbers come from sellers’ total lifetime profits on Amazon. Even if you’re just starting, you can achieve good profits with the right strategies.
Focus on profits, make smart choices, and watch your Amazon business grow — the easiest recipe for success!
Transforming dreams to reality: Real stories of ecommerce triumph
-
“It’s been a really exciting journey for me, for sure”
She is a mom of three, and finding a path to financial freedom led her to AliDropship. Veronice chose AliDropship because it’s easy to use, has fast shipping, ensures quality, and is affordable, making it a low-risk start for her ecommerce journey. Our skilled team supported her every step of the way.
Balancing ecommerce and motherhood, she loves the flexibility of working from home.
Her story shows how AliDropship can help anyone start a successful ecommerce business!
-
“I knew nothing when I started”
Martin from Denmark found a crucial partner in AliDropship, which resolved issues with delivery times and customer complaints that had troubled his business. His online venture focuses on selling home exercise equipment and sporting goods, sparked by personal interest and launched during the pandemic’s peak.
This journey deepened Martin’s grasp of digital marketing, social media, and website management — areas he had little prior experience in. It added a new dimension to his sales career, expanding his professional network with fellow ecommerce and digital marketing enthusiasts.
Now, Martin aims to scale his business, targeting a monthly profit of $10,000. He plans to launch additional stores and expand onto platforms like Etsy and Amazon. Taking a proactive step, he recently invested in a AliDropship Turnkey Amazon business. This diversified approach signals a bright future for his growing ecommerce venture.
Discover how Martin built a $14K revenue store firsthand!
-
“If we can make people happier, and bring more joy by getting more people outside, then why wouldn’t we want to do that?”
Sarah Douglass, the founder of Wise Owl Outfitters, had a passion for camping but found camping gear too expensive. She and her husband spent $2,500 on gear, which motivated her to launch Wise Owl. Today, Wise Owl is a thriving Amazon business known for its top-rated hammocks and camping gear.
Sarah’s mission was to make nature accessible to everyone at an affordable price. Despite lacking formal education, Sarah and Todd started Wise Owl with a focus on hammocks for their simplicity and appeal. They began small and gradually expanded their product range, achieving remarkable success with nearly 50,000 ratings and multiple best seller badges on Amazon.
By 2021, Wise Owl had become a leader in the camping hammock market on Amazon, demonstrating that pursuing one’s passion can lead to great success.
-
“We’re on a mission to redefine the bedding game”
Let me share the story of a unique Amazon store dedicated to eco-friendly bedding. They offer soft, cozy sheet sets and pillowcases for both adults and kids, and they’ve achieved over $2 million in sales!
Since 2011, this Tampa Bay, Florida-based store has been a trailblazer in eco-friendly home goods. It’s more than just a bedding store — it’s a testament to combining a passion for sustainability with savvy ecommerce strategies. Let’s explore what drives their success.
Focused niche: CGK Unlimited specializes in eco-friendly bedding products, catering to adults and kids who prioritize sustainability in their home essentials.
Impressive revenue: With approximately 70,000 orders per year, they generate an impressive $2,100,000 annually. This success underscores the lucrative potential of green products.
By deeply understanding their customers’ desire for eco-friendly, high-quality, and affordable bedding, CGK Unlimited has perfectly aligned with their market’s needs.
-
“High-ticket sales changed everything”
Kelly’s ecommerce journey is truly inspiring. Starting with dropshipping, she transformed her efforts into a remarkable success, generating $28,000 in just 30 days. Let’s delve into how Kelly achieved this and uncover valuable insights for anyone interested in ecommerce.
Kelly’s venture began during her university years, where she navigated various responsibilities with resilience. After experimenting with low-ticket items initially, she found her stride with high-ticket products, which led to substantial earnings. A pivotal moment was a $16,000 sale, highlighting the potential of strategic ad targeting and focusing on higher-value items.
Looking back, Kelly advises aspiring entrepreneurs to maintain consistent effort and proactive engagement. Her journey underscores the possibilities in high-ticket dropshipping, demonstrating that with determination and strategic planning, financial independence is within reach.
-
A diverse collection for every occasion
Have you ever dreamed of owning a trendy fashion store on Amazon? Well, it’s not just a dream — it’s a reality! Meet Brisco, an Amazon store that’s been gaining attention for its simple yet essential fashion items. And the best part? They’ve earned over $75,000 in just one year!
Specializing in fashion essentials, Brisco has established a strong presence, averaging about $6,250 per month, from an impressive 5,000 orders annually. Their success lies in focusing on everyday fashion essentials for men, women, and kids. Brisco’s online store is renowned for its quality, comfort, and diverse range of apparel suitable for any occasion imaginable.
-
“I was a homeless migrant, now I’m a millionaire”
Manny Khoshbin’s tale begins when he was just 14, during the war in Iran. His family fled to the US, and it wasn’t easy: none of them spoke English, and their “home” was a 1972 Datsun car, crammed with six poeple. Not exactly the American dream they had in mind, huh?
Despite the odds, Manny has spirit! He starts off simple: door-to-door sales. But oops! Turns out, there are rules about selling food without health checks. Bumps along the way, right? With $20,000 in savings, Manny teams up with a buddy to run a gas station. But it turns out to be a scam, and the money? Gone! Plus, those were the days of the US-Iraq war, so being an immigrant comes with its own set of challenges. But our man doesn’t stop. He dives into the home loan scene and makes a cool recovery, and slowly becomes a millionaire.
-
“Nobody got rich with a salary”
Lara Rahib’s journey as a young immigrant in the United States is truly inspiring. Initially facing the challenges of a competitive job market after studying biology, Lara witnessed her family’s pursuit of prosperity firsthand. These experiences fueled her determination to chart her own course. Transitioning to real estate provided hope, but setbacks tested Lara’s resolve. In 2016, she turned to ecommerce driven by a desire for autonomy and passive income.
Starting small, Lara mastered online sales and digital marketing essentials, launching her store and experiencing steady sales growth. Despite initial hurdles with Amazon’s policies, Lara asserted her independence by establishing her own ecommerce site. Within months, her sales soared, earning her the nickname ‘Ecom Wolf’. Today, Lara’s venture generates $4 million annually, a testament to her resilience and unwavering determination.
Her journey is a beacon of hope for anyone facing fear and uncertainty, proving that with perseverance, dreams can indeed be achieved.
-
Selling electronics online
Meet Tech Exchangee, an Amazon store making an astonishing $5,000 per day by specializing in renewed electronics. They’ve cracked the code to success on Amazon, focusing on selling refurbished gadgets. If you’re curious about achieving significant earnings with minimal investment, keep reading to learn how this strategy can lead you towards financial independence.
Tech Exchangee’s rise to an impressive $1.8 million in annual revenue on Amazon exemplifies strategic ecommerce expertise. Partnering with industry leaders like Apple, Samsung, and Beats was pivotal, providing access to a loyal customer base committed to quality and brand recognition. This strategic move has established them as a trusted presence in the online marketplace.
How quickly can you start seeing profits from selling on Amazon?
With Amazon, profits can come quickly! According to statistics, a majority of sellers (64%) became profitable within their first year of selling. What’s impressive is that 21% saw profits in just 3 months, another 24% within 3 to 6 months, and 19% within 6 months to a year. Additionally, 11% achieved profitability between 1 to 2 years after starting.
Every seller’s journey is unique, and some may take longer to turn a profit. However, with Amazon’s high earning potential, profitability often arrives relatively swiftly. Interestingly, only 2% of sellers reported needing more than 2 years to become profitable.
-
What is the initial investment required to start selling on Amazon?
One of the biggest concerns for new Amazon sellers is the perceived high cost of starting out. However, it’s essential to understand that investment doesn’t always mean just money — it can also involve time, essential data for informed decisions, or simply a strong determination to succeed.
Statistics reveal that nearly one-third (32%) of Amazon store owners launched their businesses with less than $1,000. The majority of sellers (69%) started with less than $5,000.
Here’s a breakdown of the costs:
- 17% spent less than $500
- 15% spent between $500 and $1,000
- 19% invested between $1,001 and $2,500
- Another 19% spent between $2,501 and $5,000
- 16% invested between $5,001 and $10,000
- 13% spent over $10,000
When starting an Amazon business, you might wonder where these funds are allocated. Initial costs typically cover product sourcing (including samples), Amazon fees, and promotional expenses. Detailed information on these startup costs can be found here.
The next question often concerns funding sources. A large majority of sellers (82%) bootstrap their businesses, meaning they finance their ventures with personal funds. Alternatively, a smaller segment (22%) obtain funding through loans from banks, family, or other sources.
-
How much time investment is required to begin selling on Amazon?
Starting an Amazon business doesn’t have to consume all your time!
A significant majority of sellers (64%) spend fewer than 20 hours/week on their business. 16% spend less than 4 hours weekly.
The best part? You don’t have to wait indefinitely to launch your business. Most sellers (78%) were able to start their ventures within 6 months. Initially, you’ll likely invest more time to establish your business and find profitable products. However, once your niche is set and products are selling, many sellers maintain their businesses with minimal effort, allowing income to flow in steadily.
How new sellers start making a living on Amazon
Sellers on average are generating $11,671 in monthly sales, totaling $140,052 annually. With an average profit margin of 21%, new sellers are earning around $2,451 per month or $29,412 annually. For the 29% of sellers achieving profit margins of 21% or higher, monthly profits can exceed five figures and more.
New sellers are averaging nearly $30,000 in annual profits.
Beyond the average, some fortunate new sellers are achieving exceptionally high sales, reaching over $250,000 per month or $3 million annually. While these “super sellers” represent outliers compared to the average, they serve as inspirational examples of what’s possible.
Tips from top-performing Amazon sellers for a successful 2024
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:
-
Achieving quick results with Amazon
You can achieve success as an Amazon seller in record time! More than half of all Amazon sellers reach success within just three months. Many sellers devote less than 10 hours per week to their business. So, why wait? Start your Amazon business today and begin achieving significant results quickly.
-
Effort leads to reward
Sixty percent of sellers agree that success on Amazon requires effort, but the rewards are well worth it.
-
Amazon stores on the rise
Many Amazon stores continue to grow, with 45% planning to introduce new products in the next year.
-
Discover your online potential with Amazon
Amazon offers an excellent opportunity to earn money online — don’t miss out on the chance to build a thriving business!
-
Access the right resources and tools
Success on Amazon is achievable with dedicated time and access to the right information and tools. With these essentials in place, you’re on your way to establishing a successful Amazon business.
Start your own business on Amazon with AliDropship FOR FREE
We’re offering FREE dropshipping stores with Amazon Business Package. Yes, you heard it right, it’s absolutely FREE! Imagine having your own online store and a ready business on Amazon. We’ve got it all covered!
With AliDropship, you get:
- A fully automated ecommerce store
- Import file to start business on Amazon
- Access to Amazon best-sellers and not only
- 24/7 customer support
At AliDropship, we’re committed to helping people start their own stores and make a fortune. This is why it’s easy now to become a business owner — get a ready-to-go online store and Amazon Business Package today!
The journey of a thousand miles begins with a single step. We’ve done our best to help you become a business owner and succeed. Now it’s your turn. While others benefit from the opportunities given, will you miss them? Don’t wait — start a business on Amazon for free and enjoy making money online!
Get Started
tutorials and special offers from AliDropship
Recommended for You
