How Much Money Do Amazon Sellers Make

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One question that aspiring business owners frequently have is, “How much do Amazon sellers really make?” You may be wondering how much money you make if you want to become a free Amazon seller.

The popularity of selling on Amazon is rising as more people search for online income opportunities. Selling on Amazon can be a great way to generate a significant income if you have the correct information and are committed to the process. The truth is that a wide range of circumstances might determine an Amazon seller’s financial potential. Nevertheless, this post contains something for everyone, regardless of their level of expertise in e-commerce.

The main reason given by 45% of new Amazon sellers to join the marketplace is the desire to “be their own boss.” Furthermore, 41% of new sellers want to augment their current income with additional revenue. More than a third want to feel successful or accomplished, and many more desire the freedom to work from anywhere or travel the world.

For many, selling on Amazon serves as their primary source of income, regardless of why they do it. So what kind of earnings can you expect from selling goods on Amazon in 2024-25?

This article describes how much money sellers make on Amazon. You will also learn the truth about potential earnings, profit margins, and startup costs associated with selling on Amazon. Along with this, you can also learn some important lessons from successful sellers to increase your sales.

What is The Income Of Amazon Sellers?

The majority of Amazon sellers generate at least $1,000 in revenue each month, and some super-sellers generate over $100,000. 40% of Amazon sellers earn between $1,000 and $25,000 a month, or between $12,000 and $300,000 in total sales annually.

While there are other ways to sell products on Amazon, the most popular approach is to start a private label business and use Amazon’s Fulfillment-by-Amazon (FBA) program for fulfillment.

Selling on Amazon will come with costs and fees for the seller, just like any other business. One of Amazon FBA’s main selling points is that it makes this procedure easier for merchants.

Simply put, you select a product, ship it to one of Amazon’s warehouses, create an Amazon listing, and let them handle the rest. After that, sales and profits become visible.

How Much Money Do Amazon Sellers Typically Make Each Month?

For many, selling on Amazon may be a much more profitable venture than your typical side gig.

Only 19% of Amazon sellers make more than $10,000 a month on average.
A third of Amazon vendors report monthly sales exceeding $5,000.
31% of vendors start with sales of less than $500 each month.

For years, creating an e-commerce business through selling on Amazon has been a feasible option, which draws new players into the market. However, it hasn’t affected their sales.

A quarter of Amazon sellers who are SMBs (small and medium-sized businesses) have achieved lifetime sales exceeding $100,000.

Under $25,000: 47%.
$25,001-50,000: 10%.
$50,001-100,000: 6%.
$100,001-500,000: 10%.
$500,001-1,000,000: 8%.
$1,000,001-5,000,000: 5%.
$5,000,001-10,000,000: 1%.

Although sales are frequently a reliable indicator of a successful Amazon business, they do not fully represent the income that Amazon sellers actually receive. Let’s now discuss earnings.

What is Their Profit Margin On Amazon?

Better still, the profit margin should be more significant. Although many small businesses fail to turn a profit in their first few years, Amazon SMB sellers find solid profit margins.

More than half of vendors (57%) perceive profit margins above 10%.
Even better, 28% perceive profit margins higher than 20%.
However, 13% of respondents stated that their companies are not yet profitable.

Sellers provided information on their overall lifetime profits since starting their Amazon companies, even if profits fluctuate depending on factors like sales volume and operating expenses during the year.

How Much Money Do Vendors On Amazon Make Overall?

That’s not bad for something that many begin as a “side hustle.” Thirty percent of SMB sellers have made lifetime profits of more than $50,000, and only 10 percent of sellers have made profits between $100,000 and $500,000.

Overtime earnings:

Under $25,000: 47%
$25,000-50,000: 10%
$50,001-100,000: 6%
$100,001-500,000: 10%
$500,001-1,000,000: 8%
$1,000,001-5,000,000: 5%
$5,000,000-10,000,000: 1%
Don’t know: 13%

And those earnings add up rapidly for a lot of Amazon sellers.

How Long Does It Take To Turn A Profit On Amazon?

The majority (58%) of respondents claimed to have turned a profit in their first year in business.

Within three months, profits: 22%
Profits in three to six months: 16%
Within six months to a year, profits: 20%
Profits in a year or two: 11%
Earnings in less than two years: 2%
Not sure: 7%

So, how can one begin selling products on Amazon? Researchers questioned Amazon SEO services providers and established sellers about the financial and human resources they used to launch their businesses.

What is The Minimum Amount Required To Begin Selling On Amazon?

One of the main obstacles for new sellers is the belief that selling on Amazon will be too expensive. As with many things, what you put in affects what you receive.

However, it doesn’t always equate to money; it can also refer to time, the knowledge you need to make wise judgments, or just the drive to achieve.

In fact, 25% of Amazon sellers started their enterprises for less than $1,000. Generally, the majority of merchants (64%) only needed to spend $5,000 or less to begin selling on Amazon.

Sellers made a below $500 purchase: 16%
$500–1,000: 9%
$1,001–$2,500: 16%
$2,501–5,000: 23%
$5,000–$10,000: 18%
Over $10,000: 17%
Uncertain: 2%

What is the purpose of that money? The procurement of your products (including samples), Amazon fees, and promotions are usually included in the initial price. (Click here to learn more about the cost of selling on Amazon.)

And from where does that cash originate? A resounding majority of sellers (81%) are bootstrappers, meaning they at least partly finance their business ventures using their funds. Only 33% of sellers took out loans from banks, relatives, or other lenders.

How Long Does It Take To Begin Selling Products On Amazon?

In general, Amazon sellers don’t have to invest a lot of time in running their companies. The majority (71%) only put in less than 20 hours a week.

Less than four hours a week: 19%
4–10 hours: 31%
11–20 hours: 21%
21–30 hours: 12%
31–40 hours: 7%
Between 41 and 50 hours: 4%
51–60 hours: 4%
Over sixty hours: 3%

Additionally, 74% of vendors were able to start their firms in less than six months.

In fact, you’ll need more time to get your business off the ground in the beginning; many sellers keep their operations running after they identify things to sell and carve out a market niche. If you are new to the online selling business, you must discover proven strategies to increase Amazon sales.

Will Amazon Be A Successful Place To Sell In 2024-25?

In 2024-25, the vast majority of sellers intended to keep selling on Amazon; additionally, 39% designed to boost their earnings and introduce new items.

Because Amazon is both a sector unto itself and inextricably linked to so many other industries, sellers have numerous opportunities to identify a lucrative market niche.

Three Lessons From Profitable Amazon Sellers For A Successful Business

Many people have attempted to sell on Amazon. What, then, can you learn from people who have achieved clear, quantifiable success? Here are the key lessons learned:

Lesson 1: Make Significant Progress Quickly.

Within three months, 48% of merchants started their businesses on Amazon.
Fifty percent of sellers work on their Amazon businesses for no more than ten hours a week.

What Amazon vendors have to say:

“Enter right away. Profit is opposed by perfection.
“I wish I had realized how crucial it was to get started sooner. With time, the barrier to a rapid trajectory is rising.
“I wish I had known where to look for reliable information and where to start.”

Lesson 2: Put Out The Work; It Will Be Worthwhile.

54% of sellers believe that selling on Amazon is not a “get-rich-quick strategy” and requires some work.
With 29% intending to introduce new products in the upcoming year, the majority of sellers are continuing to develop their Amazon companies.

What Amazon vendors have to say:

“I should devote more time to conducting product research.”
“Time is necessary for you.”
“Analyze, more, more.”

Lesson 3: Locate The Appropriate Tools And Resources.

Sellers cited having the time to dedicate to their business and having the required resources—such as tools and information—as the main reasons for their success when selling on Amazon.

What sellers on Amazon say: