By Brenda Crimi
Web Retailer’s conducted a poll in the beginning of 2016 and asked approximately 1500 Amazon sellers questions like where they sell, how much profit they make, their expansion plans, the software they use and more. These results may surprise you.
When asked what their annual sales were, 54% quoted sales of less than $100,000 annually. This number is made up of primarily small sellers or sole proprietors. That leaves a whopping 46% of sellers with sales over $100,000 annually. If that doesn’t excite you, then maybe knowing that 24% of those sellers actually quoted sales of over half a million a year. Further proof of the power of the Amazon marketplace.
When asked which other marketplace they sell on in addition to Amazon, 73% noted eBay. This is not surprising as there are several third-party resources that help make the process a breeze. The software we use is called JoeLister For a small monthly fee, their software will tie right in to your Amazon seller account and copy your listings right in to eBay at a click of a button. Even easier, when your product sells on eBay, a fulfillment order in Amazon is created. Making the process seamless.
Right on the heels of eBay, is Jet.com. With 27% of sellers looking to diversify. Jet has promised to feature cheaper prices and a streamlined way to shop that saves everyone money, including third party sellers. Although they are very small right now, it may pay to keep an eye on open for this up and coming contender.
These numbers clearly show that consumers are shopping on Amazon, but what are they buying? The top three categories are Home & Kitchen, Toys & Games, and Books. Of these shoppers, most are taking advantage of free Prime shipping. Making it important to note that almost 30% of sellers receive 100% of their profits from selling FBA (fulfilled by Amazon) exclusively, resulting in a 27% higher profit margin.
With FBA costing sellers more in fees, how can it stand to reason that profits are higher? FBA could be cheaper shipping, shopper’s confidence in Prime allows for higher prices, greater sales volume, and certainly less man hours spent packing, shipping, and customer service.
As the Amazon marketplace continues to expand, third party sellers are eager to take advantage of the opportunity. It’s all very exciting. Where else can a sole-proprietor play in the same market as big brand owners? While it is true, Amazon has tight rules and regulations for their sellers to follow, the opportunity their vast marketplace provides to both small and large businesses alike, is undeniable.
To view full report, go to http://www.webretailer.com/lean-commerce/amazon-sellers-survey-2016/