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How Much Money Do Amazon Sellers Make?

New Amazon sellers are earning an average of $42,000 in annual profits. What does it take to start selling on Amazon, and what can new sellers do to ensure they are profitable in 2022? Jungle Scout’s latest report has the data.

42% of new Amazon sellers (who have been selling for 1-2 years) say they sell on Amazon to “be their own boss.” Additionally, 36% of new sellers are looking for extra income to supplement their existing income. Many are searching for flexibility to work from any location or to travel the world while a third want to feel successful or accomplished. 

Whatever the reason for selling on Amazon, it’s the primary income stream for many.

So just how much can you expect to make selling on Amazon in 2022?

The team at Jungle Scout, the leading all-in-one platform for selling on Amazon, recently surveyed* thousands of Amazon sellers so you can learn all you need to know about getting started selling on Amazon from those who are doing it.

What we’ll reveal:

    1. How much Amazon sellers make, in sales and profits
    2. How long it takes sellers to start earning profits — and how much time and money they need to start
    3. Whether selling on Amazon will be profitable in 2022
    4. Tips from sellers to get started making money on Amazon now

Now, on to the data!

 

1. How much do Amazon sellers make?

Though there are a number of different methods for selling on Amazon, the most common is Amazon’s Fulfillment-by-Amazon (FBA) program.

Like any other business, selling on Amazon will involve some expenses and fees on the seller’s part, but what makes Amazon FBA so appealing is that it simplifies that for sellers. 

Simply put, you choose a product, get it to Amazon’s warehouses, set up your Amazon listing, and Amazon takes care of the rest. And you start seeing sales and profits.

 

What are the average monthly sales for Amazon sellers?

Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make upwards of $250,000 each month in sales — that amounts to $3 million in annual sales!

  • Nearly half (44%) of Amazon sellers make from $1,000-$25,000/month, which could mean annual sales from $12,000-$300,000. 
  • One in five (19%) makes $25,000-$250,000/month, amounting to annual sales between $300,000 and $3,000,000; another 6% make more than $250,000 in monthly sales.
  • Only 26% of sellers make under $1,000/month in sales, and 4% don’t know their monthly sales.
Monthly sales Percent of sellers
Under $500 17%
$501-$1,000 9%
$1,001 – $5,000 20%
$5,001 – $10,000 13%
$10,001 – $25,000 12%
$25,001 – $50,000 10%
$50,001 – $100,000 5%
$100,001 – $250,000 5%
More than $250,000 6%
I don’t know 4%

Selling on Amazon became a viable way of building an ecommerce business relatively recently, so many Amazon sellers are new to the game. But that hasn’t limited their sales. 

More than two out of five Amazon sellers (43%) have reached lifetime sales of over $100,000:

  • Lifetime sales $100,000-500,000: 16%
  • $500,001-1,000,000: 8%
  • $1,000,001-5,000,000: 8%
  • $5,000,001-10,000,000: 4%
  • $10,000,001-50,000,000: 4%
  • More than $50,000,000: 3%

While sales are often a strong measure of a healthy Amazon business, they don’t paint a complete picture of what money an Amazon seller takes home. So let’s turn to profits.

 

How much do Amazon sellers profit?

The higher the profit margin, the better, but small companies often struggle to achieve profitability at all in their first few years. Contrastingly, Amazon sellers see relatively high-profit margins.

  • More than two-thirds of sellers (68%) see profit margins higher than 10%.
  • Better still, 36% see profit margins above 20%.
  • On the other hand, 8% said their businesses are not yet profitable, and 8% did not know.
Profit margin Percent of sellers
~1-5% 6%
6-10% 10%
11-15% 13%
16-20% 19%
21-25% 14%
26-50% 19%
51-100% 3%
Not currently profitable 8%
Don’t know 8%

While profits change based on factors including sales volume and business expenses throughout the year, sellers weighed in on their total lifetime profits since they started their Amazon businesses.

How much money have Amazon sellers made over time?

A large number of Amazon sellers (38%) have seen lifetime profits of more than $25,000 — not bad for what many start as a “side hustle” — and 6% are millionaires from their Amazon businesses alone.

  • Lifetime profits under $25,000:  42%
  • $25,000-50,000: 10%
  • $50,001-100,000: 8%
  • $100,001-500,000: 10%
  • $500,001-1,000,000: 4%
  • $1,000,001-5,000,000: 3%
  • $5,000,000-10,000,000: 1%
  • More than $10,000,000: 2%

6% of Amazon seller are millionaires from their Amazon businesses alone

And for many Amazon sellers, those profits turn quickly.

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2. How long does it take to become profitable on Amazon?

Across all respondents, the majority (64%) said they were profitable within the first year of selling. 

  • Profits within 3 months: 20%
  • Profits within 3-6 months: 17%
  • Profits within 6 months-1 year: 23%
  • Profits within 1-2 years: 16%
  • Profits within more than 2 years: 4%

Even newer Amazon sellers (1-2 years of experience) still pulled in some strong profits in 2019 and 2020, and well over half of these new sellers (58%) were profitable within their first year:

  • Profits within 3 months: 14%
  • Profits within 3-6 months: 17%
  • Profits within 6 months-1 year: 27%

So, how do you get started selling on Amazon? We asked sellers how much money and time they invested to get their businesses up and running.

 

How much money do you need to start selling on Amazon?

One of the biggest hurdles for people starting to sell on Amazon is the idea that it will cost them too much money. As with many things, what you put in impacts what you get out. But that doesn’t have to mean cash — it can mean time, the necessary data to inform your decisions, or simply the will to succeed.

In fact, over one in five (27%) of the most successful Amazon sellers spent no more than $500 — if any — to start the businesses they are still operating more than five years later. 

Overall, most sellers (58%) spent less than $5,000 to get started selling on Amazon, and (28%) spent less than $1,000.

  • Sellers spent less than $500: 18%
  • $500-1,000: 10%
  • $1,001-2,500: 12%
  • $2,501-5,000: 18%
  • $5,001-10,000: 14%
  • More than $10,000: 22%

What is that money spent on? Typically, initial costs include sourcing your product (including samples), Amazon fees, and promotions. (Read more about how much it costs to sell on Amazon here.)

Interestingly, you don’t need to spend a lot of money to be successful selling on Amazon, and often starting small correlates to greater success. 

Sellers who spent less than $500 starting their Amazon businesses:

  • …got their listings live on Amazon before higher spenders; 59% were actively selling within 6 weeks, compared to at most 42% from *higher spenders in that time frame.
  • …were profitable before those who invested more; 40% of lower-spend sellers reported being profitable in fewer than 3 months, compared to at most 24% of higher spenders in that time frame.
  • …have solid profit margins; 73% said they had profit margins higher than 10%, and 24% had profit margins higher than 25%.

*higher spenders = spend $501-$1,000

 

How much time do you need to start selling on Amazon?

Overall, Amazon sellers don’t need to spend a lot of time on their Amazon businesses. Most (59%) spend fewer than 20 hours per week doing so, and 17% spend just over 30 minutes each day.

  • Fewer than 4 hours per week: 17%
  • 4-10 hours: 22%
  • 11-20 hours: 21%
  • 21-30 hours: 16%
  • 31-40 hours: 9%
  • 41-50 hours: 7%
  • 51-60 hours: 4%
  • More than 60 hours: 6%

In fact, you’re likely to give more time to get your business off the ground in its early stages; after they find products to sell and create their niche, many sellers simply maintain their businesses and let the income roll in. 

For new sellers (with 1-2 years of experience), most (65%) spent up to 20 hours per week on their Amazon businesses, compared to 47% of sellers with more than five years of experience.

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3. Will selling on Amazon be profitable in 2022?

By all known indicators, yes, selling on Amazon will be profitable in 2022. 

Nearly all sellers (80%) had planned to continue selling on Amazon in 2021, and 63% are optimistic that selling on Amazon will be a viable way to make money online in the future.

Amazon is an industry unto itself, and it’s irrevocably tied into so many other industries that the opportunity for sellers to find a profitable niche to sell in is massive.

This goes for new sellers, too. Close to half of Amazon sellers surveyed (49%) have been selling for just 1 to 2 years, and 64% of them earn more than $1,000 in monthly sales — some much more. 

While some new sellers (19%) are not yet profitable, most are already taking big Amazon money home — or using it to invest further in their businesses:

  • Amazon seller with a profit margin less than 10%:  17%
  • Profit margin 11-20%:  31%
  • Profit margin 21-50%: 33%
  • Profit margin 50+%: 3%

What does that amount to in dollars? Let’s just say it’s enough to be considered much more than “side hustle money.”

How new sellers could start making $42K/year on Amazon

New Amazon sellers (with 1-2 years of experience) are making an average* of $19,510 in sales each month — or $234,120 in sales per year.

Considering the same group’s average profit margin, 18%, new sellers are averaging $3,511 per month or $42,142 in annual profits.

And for the more than one-third of new sellers with profit margins of 21% and higher, they could be taking home monthly profits from $4,200/month to five figures and beyond.

New Amazon sellers are earning an average profit of nearly $42K per year.

A handful of new sellers are fortunate enough to be raking in incredibly high sales — upwards of $250,000 per month — $3 million per year. While these “super sellers” are outliers from the average seller, they’re certainly aspirational.

*Weighted average calculated based on reported sales by midpoint of range, and capped at the high-end range ($250K) to prevent arbitrary projection.

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4. Tips from successful Amazon sellers for a profitable 2022

Countless have tried their hands at selling on Amazon. So what can you learn from those who’ve had distinct, measured success? Some of their top tips:

Start now.

  • 66% of sellers wish they had started selling on Amazon sooner.
  • Of the most successful sellers who have been selling on Amazon for more than five years, most (69%) got started and had a live product listing within 6 weeks.

What Amazon sellers say:

  • “Just jump in now. Perfection is the enemy of profit.”
  • “I wish I knew how important it was to start sooner. The barrier to quick trajectory seems to be higher over time.”
  • “I wish I had known where to start and where to get good information.”

 

Put in the effort — it will pay off.

  • 68% of sellers maintain that selling on Amazon takes some effort and is not a “get-rich-quick strategy.”
  • Most sellers are still evolving their Amazon businesses and 50% plan to add new products in the coming year.

What Amazon sellers say:

  •  “I need to spend more time doing product research.”
  • “[You] need time.”
  • “More and more analytics.”

 

Find the right resources and tools

  • The primary factors sellers said contribute to their success selling on Amazon are having the time to commit to their business and having the necessary tools and information to help them.

What Amazon sellers say:

  • “I wish I knew the right way to launch without burning a ton of money.”
  • “I wish I knew about product research for finding ideal products.”
  • “I wish I knew about the tools for selling on Amazon.”
  • “I wish I knew which metrics are most important to keep track of.”

For more tips and resources, check these out:

If you’re ready to start selling on Amazon, consider signing up for Jungle Scout’s Freedom Builder Bootcamp! Join Jungle Scout Founder and CEO Greg Mercer on a limited bootcamp course designed to get you up and running as a seller on Amazon. 

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*Methodology

Between December 1-28, 2020, Jungle Scout surveyed 4,864 Amazon sellers about their experiences. This article references responses from 989 experienced Amazon sellers who have more than a year of selling experience and at least one live product listing and new sellers with at least one to two years of selling experience.

Respondents represent 70 countries, all 17 Amazon marketplaces, and all relevant Amazon product categories. They are all ages from 18 to 80+, as well as all genders and levels of education.

Sign up for Jungle Scout’s newsletter to make sure you don’t miss the report!

For more information about this survey and/or Jungle Scout’s data, please contact [email protected].

 

56 comments on “How Much Money Do Amazon Sellers Make?

  1. I have been doing my research on Amazon FBA and came across this article. This happens to be one of the most helpful articles, research I have found in all of my hunting towards learning about Amazon FBA. To be honest, I just learned, yesterday October 10, 2021, what “Jungle Scout” was. So not only do I know what you guys do, but now I know you guys create educational articles and create courses to help advance new sellers. Of course the more sellers there are on Amazon the better chance you guys getting new sellers using your company as well. With that being stated when I start with Amazon FBA I will be using Jungle Scouts services as well.

    1. Hi Marimba,

      If you choose the professional selling plan with Amazon, that is $39.99 per month. Jungle Scout’s basic plan is $29 per month. That is before you purchase any products to sell on Amazon. You need to figure out what your overall starting budget is and start doing product research to see which products you can invest in.

    1. After 3 or 4 months will be tough to do that, especially with products so low in price. I suggest selling higher-priced products as you will be left with more profit typically.

  2. My friend have been trying to convince me to start a business on Amazon for over a year now and I’m really ready to jump in after reading this article , so thank you.
    She always gave me the feeling of telling me all about the good and nothing about the bad. I hate surprises and always want to know what to expect before starting.
    I’m glad they’re a lot of free resources out there to help new seller. I only have 3k to invest in and hopefully this will be enough to start.

    1. Hi Ronald,

      We have the academy inside our Jungle Scout subscription or I suggest checking out our Youtube for some great free information!

  3. Hello, I just want to let you know how helpful this article was for me. I have been dreaming about getting started on Amazon for some time, but fear has held me back, that along with uncertainty. After reading this article I feel like I have the statistics to help me manage my time better and set more targeted goals. Thank you for answering our questions in such a resourceful way!!

  4. I really like your information but it sounds to good to be true my 21year old son is trying to convince me to start a buisness on Amazon I’m old school i need more information i now have a life treating condition do to covid-19 and and i need extra $$$ my savings are getting low and I’m not sure if i would ve doing a good move

    1. Hi Liliana,

      Thanks for reading! I know it may sound too good to be true but it is not. You do need to make sure you do thorough research beforehand, though. While sellers can make a lot of money, they can also lose a lot of money.

      I suggest checking out our How to Sell on Amazon for Beginners Guide to give you an idea of what you are up against. You can also start reselling used books or retail items if you need to start with a smaller budget.

      Look around our blog, we have lots of great free resources!

    1. Hi Cathal,

      That’s great to hear! And yes, when sellers first start out, they will typically source their own products. As a business grows, you can hire additional help to source products for you. What business model on Amazon do you want to follow? Private label?

      Brian

  5. Hi there,
    I’m very much interest get involve amazon on line
    business but I couldn’t figure out how I can start.
    In the on line business so many people talk and thousands of side. It’s difficult to find out right one
    If I start and with wrong people then I became negative minded.
    Please let me know proper path.
    Thank you.

    1. Hi Fakhrul,

      Please check out our free How to Sell on Amazon guide for beginners! It’ll show step by step on how you get can started selling on Amazon.

  6. Well I’m glad u mentioned it’s no get rich quickly scheme . Although financially secure at 68 I’m still a money man aka enjoys life , pay your bills and save money. I’ve had a very successful sales career just by persistence and being a nice guy & making sure the clients are happy. That said I’m clueless where to begin but I always challenge myself and I won’t enter the business to make less than $25k after my first year. I apologize if I sound cocky but I was a Money maker for decades. $50 k min is acceptable but I’ve never made under $100k since 1984 as 2020 I came up a bit short . NOTE > I don’t have my own website?

    1. You can source them from China by going the Private Label route. You can purchase products from retail stores doing retail arbitrage. Take a look around our blog, it will give you plenty of free resources to figure out what you can sell!

  7. Hi
    Is it better to use a course on how to sell on Amazon or just jump in and which course would you highly recommend and where does it compare against other competitors?

    1. Hi Sujit,

      I suggest you go through our blog and youtube. We have lots of free resources to go check out!

      We also have out Freedom Builder Bootcamp.

  8. Be aware that since Covid, sellers in North America using Chinese based-capital have been driving profit margins into the ground on common commodities and products. What was once highly profitable is now slaving for pennies. I might as well be working in China. I do over $50,000 in sales monthly on Amazon, but profit margins have TANKED . I see this as being a calculated move, since a Chinese competitor appeared in my product categories the same month Covid was announced, and they quickly deflated price points like crazy. What I used to make $10 on, I now make .66 cents on per sale…
    This is a war, and the goal is for them to take over the online market.

  9. Hm interesting. 20kish a year in profits. You probably had to invest 4-5k in a course and all the upfront costs

    So you make what someone that just got a job does. Only a person with a job has less mental gymnastics

    I dont think theres a point. And that profit you make will need to be re-invested back into more product.

    Meanwhile you have to be paying rent or living with family for free or something. Car payment? Etc.

    The only people that could do this are people with some successful business already and then add this into another income stream

    Just my thoughts.

  10. How much do Amazon charges as a commission for their services?
    Which all states their presence is there in India? We want to sell fresh pork / frozen, with all Government certificate. And our speciality RTE retort packed off the shelf of about one year
    Please guide us
    Reg
    Norman.

  11. GREETINGS!
    I’M SOO SOO VERY INTERESTED IN SELLING WITH AMAZON, I WOULD LIKE TO GET SOME TRAINING COURSES FIRST SO I WONT FEEL LOST IN THE MIDDLE OF THE ROAD AND OFCOURSE BE SUCCESSFUL ! I WANT TO BE MY OWN BOSS , I”M 45 AND VERY VERY SERIOUS TO DO MY OWN BUSSINES , IM READY TO INVEST AND GET PROPER TRAINING FOR THIS NEW JOURNEY IN MY LIFE , PLEASE HELP, THANK YOU

  12. How I can start small business with Amazon.
    I’m interested to start small business as retail stores for Amazon products. In case of emergency they come to store buy products.
    Small store like UPS store.

  13. I want to make at least 1500 a month or more, heck I would love to make and see the most money I’ve ever seen.
    How much is the start up. And how do you pick the right product or products

    1. Hi Branden,

      Thanks for the comment! We have tons of free resources in our blog on how to get started and find the right product to sell.

  14. I have read that Amazon looks at the best performing sellers,sees what they sell and how they do it then undercuts them selling the same thing but they can do it for less than anyone else and how does anyone know who owns what?

    1. Yes, Amazon has been accused of using seller data when creating their own private label products. That’s why you should focus on creating something very unique and different in the marketplace that would be difficult for someone to replicate.

  15. Do I have to purchase an inventory of a product that I want to sell? Can I resell products without having to spend cash? How do I establish an inventory of products to sell without having to purchase it first myself?

  16. I need to try and make money for the long run. I dont expect to see profits right away. I just want to secure for the future.

  17. I really doubt anyone is making money in Amazon these days except for Amazon itself. They hack your listing. They get money through fees, keep insisting on Advertising, all coupons and deals they money for sure but not the seller. Customers can beat the seller left, right and center and seller has little to no say at all.

    1. I am glad you asked, Yvonne, because taking a paid course is unnecessary. There is a lot of free content out there that takes you through the entire process of creating an online business on Amazon. My recommendation? Check out our most recent Million Dollar Case Study – https://www.junglescout.com/mdcs4/

      If you scroll down to the bottom of the above page, you’ll have access to all 18 episodes, for free. 🙂 Hope this helps!

  18. It’s a system where you can decide the levels of income that you want to attain each month..Not a Boss.Thanks you Amazon..Stay Bless.

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