At this point, Amazon’s influence in the online retail market is undisputable, and this statement can be verified by reviewing Amazon seller statistics.
While Amazon manages and sells many of its own products, it also hosts a seemingly endless list of independent sellers.
This not only increased Amazon’s revenue, but it broadened their market and significantly increased their product catalog.
Nowadays, independent sellers account for about 60% of Amazon’s sales online.
Companies like eBay may have paved the way for such services, but Amazon has turned it into an entirely different monster.
For this article, you’ll get a detailed look at Amazon seller statistics that show just how vital the business model is to Amazon’s current success.
- Amazon has 9.7 million registered sellers, with 1.9 million of them being active.
- Sellers in the U.S. sold over $4.1 billion worth of products to customers worldwide in 2022
- The U.S.-based sellers averaged over $230,000 in sales in 2022
- Thanks to independent sellers, brand owners’ sales grew by more than 20%
- Last year, Amazon sellers sold 3.6 billion products, averaging 7,400 products per minute
- Sellers have created an estimated 1.8 million jobs in the U.S.
- 76% of sellers run their operation out of their own homes
- 29% of sellers work with one or more partners
- 14% to 28% is the average profit margin for most Amazon sellers
- 57% of third-party sellers on Amazon are 27 to 44 years old
Amazon Seller Statistics On the Surface in 2024
The statistics alone make being an Amazon seller sound like a good idea, but it isn’t as easy as the numbers make it seem.
It takes a lot of work, not to mention the amount of competition you’re facing from the start.
However, the data provides a good look at the role of independent sellers in the Amazon marketplace.
At this point, they’re a crucial part of the ecosystem, and Amazon will continue to support this endeavor with more incentives moving forward.
Even if the market is oversaturated, this hasn’t stopped plenty of sellers from finding their own success on the platform.
1. Billions in Independent Product Sales
When you consider the amount of money that stems from independent sellers, it starts to make sense why Amazon offers so much support.
In 2022, independent sellers brought in $4.1 billion in sales worldwide.
Now that Amazon hosts many trusted sellers and brands, people have grown accustomed to finding a majority of their everyday products through Amazon.
This benefits everyone involved, from the customer to the seller and, of course, Amazon as well.
It should be noted that not all sellers find success on the platform.
However, due to the sheer number of independent sellers and customers, it isn’t too difficult to pass $4 billion in independent sales.
Amazon can’t look away from such a profitable part of their business.
There was a time when independent sellers weren’t as reputable, but the company has done well at improving buyer confidence over time.
This will inherently lead to larger numbers in sales over time.
Even if many people are against how big Amazon has become, this demographic won’t slow the progress of the company one bit.
2. Average Earnings for Sellers in the U.S.
Independent sellers have been on Amazon for years now, and many of them have hit their stride when it comes to sales.
On average, U.S.-based sellers brought in $230,000 in sales throughout 2022. This isn’t the experience for every seller in the U.S., but it shows there’s still plenty of opportunity on the platform.
You also have to consider that Amazon’s reach is global, which means U.S.-based sellers are making sales on an international market.
Once you factor in the various tools in place to streamline the process, having your own Amazon store sounds like a pretty good idea.
Amazon currently ships to over 100 countries and regions throughout the world.
Moreover, many sellers don’t touch a single one of their products during the process; they simply manage the store, sales, and customer service.
When set up right up, being an independent seller on Amazon can be a profitable business model.
3. Brands are Benefiting from Independent Sellers
While some sellers on Amazon may focus on their own personal products, this isn’t really the norm.
Most independent sellers on Amazon focus on products that are bound to sell, many of which tend to come from brands people already know.
It’s simple supply and demand, and many independent sellers capitalize on this.
Due to the endeavors of independent sellers, many brands have seen a 20% increase in their overall sales.
This only fuels the Amazon machine further, as many major brands support the company’s endeavors with their products.
Although Amazon is a massive conglomerate at this point, the company has found a way to benefit everyone involved, which continues to keep them in business.
As long as brands continue to benefit from this business model, they’ll continue to participate and support it.
4. Billions of Products Out the Door
When you look at independent sellers on the global stage, the number of products being sold is pretty impressive.
Averaging at 7,400 products every minute, Amazon sellers sold around 3.6 billion products last year.
As you might expect, this number is expected to grow in the near future.
Here are a few other interesting statistics related to products on Amazon:
- 32% of sellers are active in the Home & Kitchen product category
- 40% of customers have used a voice assistant to order products on Amazon
- 26% of shoppers on Amazon end up buying the first product in the search results
- 50% of sellers mention that Amazon sells products that directly compete with them
- 81% of sellers advertise their products on platforms outside of Amazon as well
The company has created a massive market that generates a lot of money, but the system isn’t perfect by any means.
While many people find success, there are many more who can’t say the same.
The substantial amount of money that goes in and out of the independent seller market makes one wonder how this could potentially affect the job market.
5. Amazon Sellers Have Created a Lot of Jobs
Focusing on sellers in the United States, they’ve created nearly two million new jobs in the U.S. over the years.
While plenty of sellers are a one-man show, there’s a long list of others who need people to help them run their operations.
This has led to 1.8 million new jobs in the U.S., and Amazon sellers are on track to continue to benefit the job market in this regard moving forward.
Being a seller on Amazon won’t work out for everyone, but to say it’s not worth the time or effort is simply wrong.
The data proves what’s possible; it just takes consistency and perseverance.
Those with growing sales and customer bases will inevitably have to hire help at some point.
Many people will postpone this as long as they can, but it’ll eventually take more than one person to meet demand on Amazon’s platform.
How Amazon Sellers Run Their Business
You won’t find a cookie-cutter approach when it comes to being an independent seller on Amazon.
While you can learn plenty from others’ success stories, your journey will be entirely unique.
Statistics show some interesting points regarding how some sellers run their businesses.
Some aspects come down to personal preference, while others are necessities that must be met for the business to survive.
Keep reading below for a better look at how independent sellers run their stores on Amazon.
6. Home Based Amazon Sellers
As one might expect, many independent Amazon sellers run their business out of their homes.
Considering what Amazon has done to improve inventory management, running operations out of your home isn’t too difficult.
In reality, most sellers choose to do this.
76% of independent sellers run their business out of their homes.
Some of them are making six figures annually and have no need for any storage or rented space.
It’s a great business model with plenty of room to expand if needed.
The percentage of sellers that are home-based is bound to fluctuate, but you can expect to always be the majority, no matter what.
Some sellers go on to create entire organizations around the business model to improve sales and create a brand image of their own.
7. Some Sellers Decide to Partner Up
Being an independent seller on Amazon offers enough tools and resources to get started by yourself, but that doesn’t mean it’s always easy to manage.
Some people prefer to go it alone, while others start up their endeavors with one or more partners involved.
29% of sellers on the platform have one or more partners involved.
Although this means splitting profits, it can make managing operations and logistics easier.
Whether it’s a want or a need, working with a partner as an Amazon seller can help reduce stress, increase sales, and more.
Partnering up in business doesn’t always lead to a success story, so one should tread with caution when it comes to considering bringing someone else into the mix.
Amazon provides enough resources to manage your business all in one place.
It’s advisable to ensure a business partner is a need before incorporating a new face in your operations.
8. How Sellers Advertise Their Products
When it comes to the digital landscape of online sales, you can assume that digital marketing is a part of the process as well.
Amazon generates a ton of organic traffic, but this isn’t always enough to drive sales.
This is especially true considering how oversaturated the seller’s market is at this point.
In the chart below, you’ll find comparisons between 2022 and 2023 on how Amazon sellers are advertising their products.
Traditional media has been on its way out in the marketing world for quite some time now.
However, most people have preferences when it comes to how they approach digital marketing.
Many avenues speak for themselves, as it’s hard to argue with the reach that’s possible on social media.
Then again, paid search can still be very lucrative and, sometimes, much more beneficial than social media ads or influencer campaigns.
Overall, marketing across other e-commerce platforms seems to be the marketing channel of choice for most Amazon sellers.
9. What’s the Average Profit Margin?
As one might expect, many people become Amazon sellers to make money, which means they’re only interested in products that will sell.
Regardless of which way you spin it, profit margin matters and Amazon sellers navigate all kinds of margins based on the types of products they sell.
On average, Amazon sellers will see a profit margin of anywhere from 14% to 28%.
Again, it’s important to note this isn’t a guarantee for everyone, but merely an average.
When you dive a little deeper, data shows that the highest profit margin is in the Computers category, while the lowest is in Collectibles & Fine Art at 14%.
There are many other categories that come with unique profit margins, and some of them might surprise you.
For example, the Automotive Parts & Accessories category can come with a profit margin that ranges from 21% to as high as 100%.
However, only 42% of sellers within this category will see a profit margin within this range.
Most sellers know there are ways they can improve their margins, but it seems many sellers have settled into their averages.
10. Most Popular Social Media Channels for Amazon Sellers
Revisiting a few points we made on marketing for Amazon sellers, social media is a crucial component of their long-term success.
As with any individual, you can expect sellers to prefer some platforms over others when it comes to marketing their products.
Influencer content has proven to drive sales when done correctly, and this approach can be applied to many social platforms.
In our current era, this information isn’t too surprising.
It’s pretty evident that Facebook, Instagram, and TikTok are the most popular social platforms at this time.
So, you can assume that most sellers are going to put their marketing dollars toward such platforms.
Although Facebook is now seen as a social platform for older generations, it’s still one of the best marketing services among others.
Facebook offers a ton of customization when it comes to ads.
Not to mention the direct integrations with Instagram, allowing you to manage all of your ads for both platforms in one place.
Whether a new social media platform rises or others continue to adapt, social media marketing is one of the most effective marketing tactics in our modern era.
It can be challenging to navigate but equally rewarding if you’re working with the right information.
The Support System Sellers Need
Without the support and business integrations Amazon brings to the table, most Amazon sellers wouldn’t be as successful as they are.
Of course, this isn’t to say it isn’t possible without them, but their business services make the process much easier.
Not only does Amazon facilitate a space for sellers to make sales, but it also provides the education, tools, and resources needed to succeed in the long run.
Not all sellers will make use of these resources, but those who do only have good things to say about it for the most part.
11. Fulfillment via Amazon FBA is Cost Efficient
Major U.S. shipping carriers may have control of the market, but they’re definitely not the most affordable shipping option in most cases.
Shipping products through Amazon FBA costs 30% less per unit and 70% less per unit on average when it comes to traditional premium shipping options.
These figures make it a no-brainer for Amazon sellers, as any business owner is always looking for ways to save money.
This benefit from Amazon only adds to the many benefits and support systems in place for Amazon sellers.
Although marketing is a necessary evil in business, Amazon has incorporated multiple features on its website that incentivize more purchases.
One clear example of this is their Subscribe & Save feature, which offers discounts on repeat purchases.
This is just one example of many, and sellers waste no time making use of such features.
12. The Benefit of Subscribe & Save
This feature has been on Amazon’s website for quite some time now.
Even if you don’t use the feature yourself, there’s a good chance you’ve seen it when browsing products.
Statistics show that sellers who incorporate the Subscribe & Save feature on their products can potentially increase their sales by 1.8 times.
Of course, this isn’t a guarantee, but it doesn’t cost anything to maintain.
One angle sellers have to consider is their profit margin.
They just have to make sure they’ll still come out positive, even with a 10 to 15% discount on repeat orders.
It’s also a feature that only really makes sense for repeat purchases like household items.
People who sell more niche products may not ever utilize the Subscribe & Save feature, but there’s more than one way to increase sales on the platform.
13. Amazon Offers Financial Support
In some cases, people may need a little capital to get their Amazon shop off the ground.
While there are those who are perfectly okay with a small operation, others have much bigger ideas on the horizon.
Regardless, Amazon has offers in place that can put money in the pockets of select entrepreneurs.
You can expect a few requirements to be in the mix, but it’s something that’s available to those who qualify.
In 2022, Amazon lent roughly $2.1 billion to Amazon sellers throughout the year.
It’s something that has been the catalyst to success for many sellers.
The fine print will tell you who qualifies and who doesn’t, but it’s evident that the program has been relatively effective for many sellers.
14. Amazon Net Sales Continue to Grow
As Amazon continues to grow and succeed, many independent sellers are bound to benefit from it.
The company’s net sales with each passing quarter are enough incentive to start a shop of your own.
Many people want their piece of the Amazon pie, but few realize what it actually takes to get there.
You can get a glimpse at Amazon’s recent net sales growth in the table below.
|Net Sales 2021
|Net Sales 2022
Each year seems to be better than the last for Amazon, but the company isn’t doing this entirely on its own.
It can also thank the thousands of sellers who actively churn sales around the clock.
15. Endless Variety of Product Categories
Another angle that adds to the number of dedicated Amazon sellers is the vast product categories that they can choose from.
Whether you want to sell a little bit of everything or one specific item, Amazon has the infrastructure for it.
Here are some of the most popular product categories on Amazon:
- Home & Kitchen = 35%
- Beauty & Personal Care = 26%
- Clothing, Shoes and Jewelry = 20%
- Toys and Games = 18%
- Baby Products = 16%
- Electronics = 16%
The list goes on from there, but you can tell that most people are interested in categories that apply to a broad demographic of customers.
You don’t have to stick to these categories to be successful, but they’re a good place to start if profits are at the top of your concerns.
The Bottom Line
Opportunity as a seller on Amazon won’t be going anywhere any time soon.
It may be a saturated market, but there’s still enough space to carve out your own slice of customers.
While working as an Amazon seller may not be for everyone, there’s enough data to back up numerous success stories over the years.
This article highlighted many Amazon seller statistics, pulling the curtain back on the realities of being a seller in a saturated marketplace.