Amazon’s third-party marketplace is rapidly expanding. It’s time to get your piece of the ever-expanding Amazon FBA pie, which is expected to be worth $400 billion. There are still plenty of opportunities to start an Amazon FBA or FBM business in 2021, but how much money can you expect to make selling on Amazon? You can read the Zonbase Blog for more information.
Average Salary of an Amazon Seller
According to JungleScout’s polls, nearly half of Amazon sellers make between $1000 and $25,000 per month. That’s an extensive range, and it means that selling on Amazon can earn you anywhere from $12,000 to $300,000 each year! Only roughly 26% of these sellers reported generating more minor than the above range, indicating that the chances of making money on Amazon in 2021 are still good.
When it comes to profit margins, 68 percent of Amazon sellers have more than 10% margins. Let’s look at the bottom end of the typical monthly sales range, $1000. If you’re a new Amazon FBA seller, you can expect to make $100 per month at 10% margins. This isn’t to be sneered at, especially if Amazon is your side business. You’ll earn $1200 in passive income
by sitting at your computer for a year.
10% is the low end; most merchants have significantly larger margins. Profit margins of 16-50 percent were recorded by 52 percent of merchants, implying a profit of $2,000-6,000 per year. You may make $3600 per year without breaking a sweat if you keep a healthy 30% profit margin for your Amazon FBA business and strive for at least $1000 monthly sales.
Earnings for a Lifetime
Selling on Amazon has good long-term potential. The average career earnings of Amazon sellers are pretty evenly split, with 42 percent earning less than $25,000 and 38 percent earning more. It all boils down to how you improve and optimize your business regarding lifetime profitability.
Don’t be put off by typical lifetime profitability statistics; they vary from person to person. If your business succeeds, you can find yourself among the top 10% of Amazon Sellers, with lifetime revenues ranging from $500,000 to $10 million.
Final thoughts
The vast majority of sellers stated that their first year of selling was profitable! Twenty percent of the 64 percent of people who made money in their first year of business did so in the first three months. Furthermore, 58 percent of new Amazon sellers with less than two years of experience were profitable in their first year on the platform. In 2021, selling on Amazon is the fastest way to make money through e-Commerce.
When it comes to how much time you should spend on your Amazon business to make that kind of money, most Amazon sellers (including new Amazon sellers) spend fewer than 20 hours each week. To boil it down, that’s only approximately 3 hours each day (including weekends), which you can easily find after returning home from your full-time job.
According to the survey, which polled consumers in nine countries, more than half of the respondents said they would continue to purchase online. Meanwhile, 56% of shoppers in the United States stated that if they could only shop from one store, it would be Amazon. The numbers speak for themselves, and Amazon purchasing won’t disappear anytime soon.