Selling goods on Amazon is an excellent way to enter the overseas market. We talked to experts and found out how to start on the marketplace, what nuances you need to consider, and how to legally withdraw money. However, do you know how much can make on Amazon?
Expert practitioners helped us in preparing the article and let you know know how much you can make on Amazon.
What is Amazon And Why Should You Sell There?
According to Wikipedia, Amazon is an American multinational e-commerce company. For us, of course, the first point is of interest. So, a little about what Amazon is in numbers:
- Platform share in the e-commerce market in the US – almost 50%
- The number of active customers worldwide – 300 million;
- The number of monthly site visits – 1.6 billion users;
- Annual turnover – 513.98 billion US dollars
Amazon is the largest American marketplace. Customers not only from America but also from many other countries make purchases on it. There is a separate site for each country. For example, if you want to sell a product in America and Europe, you need to register on Amazon twice – on the American and European domains.
So, why Amazon? Amazon is a platform that allows people from around the world participate to buy and sell products online. It is a vast opportunity for sellers.
Benefits of Doing Business On Amazon
The platform is an advanced service with a large number of tools for successful promotion and sales. Starting a business on this marketplace, you get:
- free hot traffic. 90% of sales are made from products that are in the TOP issuance of the service. If you get there, you won’t have to think about attracting visitors at all;
- own delivery service – Fulfillment by Amazon (FBA). You don’t have to deal with transport companies and international courier services – Amazon has its service;
- opportunity to sell products worldwide. The bulk of buyers are located in the United States of America, but there are also customers from Australia, South Korea, Italy, and other countries;
- It is possible to choose one of several formats of work: sell as a private person, open an online store, or combine these approaches;
- There is no need to make a separate website for selling goods abroad. The budget for such a resource can be several tens of thousands of rubles. A considerable amount will have to be paid for an English or multilingual version of an existing site. When working on Amazon, these problems are solved automatically.
The Key Features Of Doing Business On Amazon
To figure out how to effectively sell on Amazon, you will need to scrupulously and meticulously approach the study of the platform’s functionality and the nuances of how to work with goods, suppliers, and customers.
This will let you learn how to do business on Amazon and how much can make on Amazon. So, let’s get a closer look at the key features below.
You Need Knowledge Of English
No matter how obvious it may sound, this is an American site and it is necessary to know English at a good level. If you doubt your knowledge but still want to work with this resource, then you should find yourself a partner who is fluent in English.
On the one hand, you will have to share profits, but on the other hand, you will be able to share responsibilities and achieve your goals much quicker.
Follow The Reviews
There is a lot of competition here and a lot of unscrupulous sellers who can write negative things about other people’s products and thereby underestimate their rating and demand. They can be removed if you contact the company’s technical support, but you will have to prove that this is not true. Be prepared for the fact that this can happen and you need to deal with it.
Study Suppliers And Goods
Demand product certificates from suppliers before entering into a purchase agreement. The presence of certificates is one of the requirements of the site, so they must be.
Study Your Target Audience
Read reviews, and profile communities dedicated to your (or similar) product. This way you can be aware of trends and what your potential customers want to see and use it in your sales.
How Can You Make Money on Amazon?
Before doing business on this site, you need to be aware that you will first have to work for a reputation, and only then make a profit from it. For the first few months, your profit may be very small and even negative.
After you get your first feedback and figure out how to work with this platform and products, things will go uphill. You will have constant orders, which will increase every day and help you earn more than before.
Your earnings depend on what you sell, in what quantity you sell, and at what margin you sell on Amazon. It is difficult to guess the exact amount. It can range from $1,000 to several tens of thousands.
This is all quite real, but you need to understand that this takes time and productive work on your part. Only then will you get the profit you are striving for?
Also, see: How to Change Billing Address on Amazon
How Much Does An Amazon Seller Profit?
Small companies on Amazon often struggle a lot, in the beginning, to get profitability, but Amazon FBA sellers see handsome profit margins. Here is the list of profit margins an Amazon seller achieves:
- 52% of sellers see profit margins of more than 10%
- 27% see a profit margin above around 20%.
- Alternatively, 14% stated their businesses aren’t yet profitable, as well as 8% didn’t know their profit margin.
| The profit margins | Percent of Amazon sellers |
| Less than 1 to 5% | around 12% |
| 6 to 10% | around 13% |
| 11 to 15% | around 11% |
| 16 to 20% | around 14% |
| 21 to 25% | around 10% |
| 26 to 50% | around 13% |
| 51 to 100% | around 4% |
| Not profitable currently | around 14% |
| Do not know | around 8% |
Many sellers on Amazon make at least 1,000 dollars a month in sales, as well as some super-sellers on Amazon make over $100,000 a month in sales.
- Around 45% of sellers on Amazon make around $1,000-$25,000 a month, which means $12,000-$300,000/annum.
- 25% of sellers make around $25,000 to $250,000 a month, meaning sales between $300,000-$3,000,000 annually.
- 17% make under $500 a month in sales.
Conclusion
In conclusion, exploring Amazon’s earning potential can lead to a successful transition from side hustle to full-time income. With its vast marketplace, global reach, and various business opportunities, Amazon provides a platform for individuals to leverage their skills and entrepreneurship. By tapping into its resources, sellers can unlock a world of financial possibilities and achieve their goal of turning their side hustle into a sustainable and rewarding full-time venture.
