How Much Can You Make Selling on Amazon?

Building a business from starch isn’t simple. There are hundreds of factors you need to consider and take care of before deciding. But even doing so doesn’t guarantee success.

This is because you also have to prepare for every obstacle you might run into on your journey. This becomes tougher when you are starting from zero.

You need to prepare the best strategies, invest the money wisely and keep believing in yourself.

Another aspect you must focus on is the product you are trying to sell. Most people skip this step and enter the business, rushing to make profits. But regret later.

This is because making proper market research about the demand of the product in the market is one of the most critical aspects of a successful business.

After all, you want to avoid investing enormous sums in a dying industry.

This is where e-commerce giants have come to the top and revolutionized the businesses of small to medium business owners, especially in the pandemic era.

E-commerce platforms provide a streamlined way for business owners to get through to their customers and make profits.

Amazon.com is the best example.

Hundreds of thousands of sellers use the Amazon Marketplace to sell their products.

But there is one question newbie sellers often ask: How much can you make selling on amazon?

Well, the answer depends on many factors and metrics.

In this article, we’ll discuss all about the question: How much can you make selling on amazon?

We’ll also look at some interesting facts about sellers’ profits in the Amazon Marketplace.

Let’s get started…

Is Selling on Amazon Profitable?

Let’s answer this question by measuring the recent performance of sellers in the Amazon Marketplace.

The Covid-19 pandemic helped sellers reach new heights because people staying at home shopped more from online marketplaces, with Amazon the most widely used.

In one of its trends reports, Jungle Scout reported 65% of consumers shopped on Amazon in the third quarter of 2021.

This shows the potential of the market increased and gave sellers an effective way to sell their products. Another report on consumers outlined the expectations of the consumers from Amazon and its sellers.

For instance, in the second quarter of 2021, 80% of consumers expected free shipping and 91% of them wanted a delivery time of less than a week.

Retailers capitalized on these expectations and, hence, kept the customers happy.

They hit the bullseye by providing the best-quality products and addressing customers’ needs.

This is the reason Amazon was successful during the pandemic.

Amazon considers this an opportunity to give back to the sellers and customers who use its marketplace.

The net income of the company bagged a 38% increase from 2020 and went from $11.6 billion (2019) to $21.3 billion.

Now, you know the answer. Yes, selling on Amazon is profitable.

What About the Average Earnings?

How much does an Amazon seller make in a month?

Well, this question intrigues new sellers who get confused about selling on Amazon?

Again, let’s look at some metrics to find the answer to this question.

Jungle Scout reports sellers earn an average of $1000 to $25000 per month, which translates to $12000 to $150,000 a year.

This is true for 50% of the Amazon sellers, and only 26% makes less than the average.

The margins also play a critical role. Margins depend on many factors and the aim is to increase it.

Newbie sellers, through Amazon’s FBA program, effectively generate some profit with a low margin.

While this is opposite for experienced sellers who capitalize on margins between 16-50%.

What does this mean?

This means, even if you are a new seller on Amazon, you can make respectable profits starting from the first month.

And if you accumulate the sales and margins, you can make massive profits per year. The best part about this is Amazon would do over half the task for you.

Let’s Talk About Lifetime Earnings

How much can you earn from selling on Amazon? Let’s address the lifetime version of this question.

Selling on Amazon is one of the most attractive prospects for generating passive and regular income.

Sellers around the world take part in the marketplace to make sizable monthly profits.

But does this mean you can expect massive lifetime earnings?

The answer to this question depends on how much you improve on the platform.

In simple words, the average lifetime earnings from Amazon are unique to individuals.

But there are sellers who have earned exceeding $10 million.

This sum directly results from the effectiveness of your selling strategies, product demand, profit margins, and gradual growth on the platform.

How Long Does Making Profit on Amazon Take?

Again, there is no straightforward answer to this question. This depends on the performance of your products on the platform.

But if we look at the statistics, most newbie sellers generate profits in the first year of selling.

Does this mean you’ll also take a year?

No, this is because many sellers generate profits in the first few months.

All thanks to the simple programmes Amazon is offering to the sellers. With the massive reach and advanced tools, newbie sellers are successful in catching up with older sellers.

People trust the Amazon Marketplace and believe in the quality of the products sold on the platform.

Amazon also offers a plethora of exciting rewards to the customers.

Hence, making a profit on Amazon depends on your strategies, products, and creativity.

Conclusion

There you have it. Now you know the answer to the question:

How much can you make selling on amazon?

Well, you can generate massive profits from selling on Amazon.

But this depends on many factors, and you need to put in the best efforts to make this true.

Sellers enjoy making sizable passive income and lifetime earnings from Amazon.

I hope this article helps.