20 Amazon Seller Statistics & Facts You Need to Know in 2023
Online shopping has taken off recently, with Amazon leading the way. The e-commerce giant dominates the marketplace by focusing on seller success and customer experience. Amazon offers unparalleled shopping and selling. Full stop. As an individual seller, you can tap into their massive global reach to grow your business. In 2020 alone, Amazon powered $200 billion in sales for third-party sellers - record growth even for them. Now that's impressive.
The numbers tell the story: Amazon has the scale and shoppers to improve your business. This article highlights 20 key Amazon seller statistics worth knowing. Opportunities abound if you understand how to leverage Amazon's marketplace. Read on to learn more.
The key statistics tell the story:
- Out of the 9.7 million sellers registered on Amazon, just 1.9 million engaged actively on the site.
- Sellers on Amazon located in the United States sold products worth more than $4.1 billion in 2022.
- Amazon sellers in the United States made an average of $230,000.
- Sales of brand owners increased by over 20% with the help of independent sellers.
- Sales forecasts have predicted that Amazon sales in 2023 will hit $746.22 billion.
- Over 300 million people actively use the Amazon platform.
- Most shoppers on Amazon use the forum due to the wide range of products and price variance.
- About 1.8 million jobs were created in the United States by sellers on Amazon.
- Over 60% of Amazon sales are from independent sellers.
- 76% of Amazon sellers do their business operations outside their homes.
- 29% of sellers on Amazon collaborate with partners in their business operations.
- Most Amazon sellers make an average profit between 14% and 28% margin.
- Over 50% of Amazon third-party vendors are between 27 and 44 years of age.
Starting an online store on Amazon is a great idea, but it is a challenging task. It requires much work and the ability to face competition from brands that sell related products on the platform. However, the statistics below show independent sellers' role in the marketplace. These independent sellers are essential to the marketplace ecosystem, and Amazon drives toward supporting their activities with better incentives. Though the Amazon marketplace is highly saturated, this hasn't stopped many from succeeding on the platform.
1. Amazon's Sales Are Expected to Hit $746.22 Billion in 2023.With its large user base, amazon will continue to dominate online retailing. Experts expect Amazon sales to hit $746.22 billion by the end of 2023. It is the largest e-commerce retail platform globally, accounting for 37.8% of e-commerce activities in the United States retail market.
2. Yearly Independent Sellers Make Billions in Sales on the Amazon Market Place.Independent sellers make billions yearly on the Amazon marketplace place, which explains the level of support it receives from Amazon.Independent sellers made a whopping sale of $4.1 billion globally. The presence of a large number of independent, trusted sellers on the Amazon platform has attracted a great number of people for everyday online shopping. The influx of sellers, brands, and buyers benefits all parties, including Amazon. Over the years, Amazon has boosted its buyers' confidence in independent services' products and services. Amazon's efforts have yielded tremendous returns regarding sales from independent sellers.
3. An Average of $230,000 was Made By Sellers Based in the United States in 2022.Independent sellers who have been carrying out e-commerce activities on Amazon over the years have achieved quite a good feat in terms of sales.In 2022, sellers on Amazon based in the United States made $230,000. This is, however, not the experience of all sellers based in the United States but a demonstration of how much sellers can make via selling on the platform.One primary reason for the high sales recorded by independent sellers is the global audience that the Amazon platform provides. Data shows that Amazon ships products across 100 countries of the world. Most sellers on the Amazon platform do not touch any of the products but rather manage an online store, customer service, and promote sales.
4. Independent Sellers Focus on Selling Those Products That People Are Likelier to Purchase.Focusing on selling your products on Amazon is different from a custom seller. This is because most independent sellers focus on the effects of popular brands. Most independent sellers on the Amazon platform operate on a supply and demand system as it has better financial gain. A good number of brands have experienced up to 20% increase in sales due to the activities of independent sellers. Even though Amazon has grown to be a vast conglomerate, it still has the means to benefit every person involved. The platform continues to grow in leaps and bounds as all parties involved are satisfied.
5. Leading Customer Service Delivery.Most buyers (90%) are satisfied with their customer service experience on Amazon. 33% of users of the Amazon platform stated the quick response of the customer service representative is the most appealing feature of the Amazon store.
6. A Large Number of Products Are Sold Daily on Amazon.Many products are sold even with independent sellers on the Amazon platform globally. An average of 7,400 products are sold every minute on Amazon, and this number is expected to keep increasing. Below are some interesting facts on Amazon sales:
- 32% of retailers on Amazon are actively involved in kitchen and home products sales.
- 40% of Amazon customers have used the services of a voice assistant to purchase a product.
- 26% of shoppers on Amazon purchase the first sampled product on a search result.
- 50% of Amazon sellers stated that its products compete with theirs.
- Over 80% of Amazon sellers also put their products on other online stores.
Amazon has created a massive online market space to accommodate all involved in the buying and selling process of products.
7. Amazon Sellers Have Created Several Jobs.Amazon sellers have created about 2 million jobs in the United States. Though most sellers on Amazon run their online stores themselves, they are those who require the help of others to sell products.The sales activities of sellers have created a total of 1.8 million jobs just in the United States, and this will not be slowing down anytime soon.
8. It Takes Most Shoppers Less Than 15 Minutes to Purchase on Amazon.It takes most shoppers 15 minutes or less to purchase on Amazon. However, 28% of shoppers take barely 3 minutes to complete a purchase order on Amazon. Ensuring a good customer experience will encourage repeated purchases.
9. Most Popular Channel For Gift Shopping in 2022.In a survey, Amazon became the topmost online sales channel for gift and online shopping in the fourth quarter of 2022. 67% of persons in the survey intended to make an online gift purchase on Amazon stores. Walmart was the second most used online gift store, with 36% in the fourth quarter of 2022.
10. Over $5,000 is Made Monthly By 55% of Amazon Sellers.Over 50% of sellers earn over $5,000, 16% earn between $10,000 and $25,000, and 47% have a lifetime sale of over $100,000 monthly.
Amazon Seller Mode of Operation
There is no easy cutout pattern for success as an Amazon seller. While learning from the success stories of others, you should expect a unique journey.
11. The Majority of Independent Amazon Sellers Work in Their Homes.It is known that most Amazon sellers operate their business within the comfort of their homes. Amazon has made many efforts in portfolio management and enabling sales operations outside the home. 76% of Amazon independent sellers prefer to operate business outside the home. These groups of individuals make as much as a million dollars yearly from the comfort of their homes. This business model creates room for expansion without payment for a storage or rental facility for operations.Though there is bound to be a fluctuation in the number of home-based sellers, there will always be many independent sellers. Many sellers have risen to create a brand name for themselves through this business model.
12. Sellers on Amazon Collaborate With Partners in Carrying Out Their Business Operations.As an independent seller on Amazon, you have access to the right tools to get started on your sales journey and achieve success. Some persons prefer to embark on this journey alone, while others prefer to get others involved in their business operations.On Amazon, 29% of sellers have partners involved in their business operations; this implies that they will have to share profits alongside logistics. Working with a partner on Amazon will help to reduce the stress and also increase the volume of sales.Since a partnership may not always lead to success, sellers must be cautious when considering bringing in a partner.
13. Digital Marketing Is An Important Tool in Driving Sales.Digital marketing is a very vital tool when it has to do with generating online sales. The organic traffic generated by Amazon is insufficient to pull in massive sales because of the over-saturation of the marketplace.The traditional media of marketing is gradually fading out with the presence of digital marketing worldwide. There are various avenues of digital marketing ranging from using social media, ads on social media, paid search, and influencer campaigns. All of which can help pull sales from the target audience. Using e-commerce tools across various marketing channels is how most Amazon sellers drive sales traffic.
14. Amazon Sellers Make Up 14% of the Profit Margin.Most people become sellers on Amazon to earn a good income. The profit margin of most sellers on Amazon lies between 14% and 28%. Sellers in the fine arts and collectibles category make an average profit margin of 14%, and automobile and car parts accessories range from 21% to 100%. However, just 42% of Amazon sellers receive up to the average profit margin.
Important Sellers Support System
Amazon sellers owe their success to the platform's business integrations and support systems. Services such as a space to sell products and provide information, resources, and tools to sellers have brought success to most users of the forum. However, not all sellers take advantage of these services, which is a reason for the failure of most sellers.
15. The Cost-Effectiveness of Amazon FBA.Amazon FBA costs an average of 30% to 70% less than the traditional shipment method. This makes shipping products using Amazon appealing to most sellers as they want to conserve costs permanently.Multiple features are displayed on the Amazon platform that draw the attention of buyers and increase product purchases.
16. Subscribe and Save to Boost Sales Volume.The subscribe and save feature has helped increase sellers' sales volume and has invariably boosted most sellers' profit margins. Buyers who purchase household items are the highest users of the subscribe and save feature.
17. Amazon Offers Startup Capital to New Sellers.Some people need little capital, while others have big ideas for operating their online store.Irrespective of your needs, Amazon provides the best offers for individual entrepreneurs. About $2.1 billion was lent out to sellers by Amazon in 2022. The success of many sellers can be associated with Amazon's financial assistance.
18. Amazon's Net Sales Have Continued to Grow.As Amazon's net sales continue to grow, so also does the success of independent sellers increase. Many sellers want a part of its success without realizing that it takes great effort to get there. Below is a table showing Amazon's net sales in 2021 and 2022.
| Timeframe | Net Sales 2021 | Net Sales 2022 |
| Q1 | $108.52B | $116.44B |
| Q2 | $113.08B | $121.23B |
| Q3 | $110.81B | $127B |
| Q4 | $137.41B | $149.2B |
From the table above, we see that Amazon increased net sales in 2022, all thanks to its sellers, who are actively involved in ensuring sales.
19. Prime Members Keep Increasing.The Amazon Prime membership program was launched in 2005 and is accessible in all countries. Subscribers have unrestricted two-day access to ship products and video and music streaming. In 2013, there were 17 million subscribers, and in 2022, Amazon had 168 million subscribersto its Prime membership program. Prime members make up a significant part of sales generation on the Amazon platform.
20. Amazon Revenue.The volume of revenue generated by Amazon sales and e-commerce activities increased considerably between 2004 and 2022. In 2021, the company made a net total revenue of $470 billion; in 2022, it made about $514 billion.
ConclusionAmazon is more than just the biggest online store - it's a bustling marketplace of independent sellers making a living. Amazon sells everything - gadgets, clothes, grooming supplies. It has become many sellers' full-time income source.
The key to Amazon's success is its community of regular, trusted sellers. Data tells that by letting entrepreneurs easily reach customers globally, Amazon enables job creation and boosts its profits. Amazon offers sellers helpful tools to succeed. Fulfillment by Amazon handles shipping and returns, freeing you up to focus on sales. Amazon Prime gives your products exclusive access to over 200 million loyal members. Features like subscribe and save help you earn repeat business.
Amazon offers endless opportunities for ambitious sellers. With the right game plan, anyone can launch and grow a business on their platform. Your diligent work can become a thriving livelihood by tapping into Amazon's massive reach and existing buyer base. You need to consider facts and data and make them work for you.
FAQs What are the best products to sell on Amazon?Amazon's most successful sold-out products are household and kitchen appliances, beauty products, baby products, pet supplies, and electronics.
How much does an Amazon FBA cost?Sellers must pay Fulfillment By Amazon, popularly called (FDA) on the marketplace. Sellers can choose to be on the individual monthly plan of $0.99 or the professional plan of $39.99 monthly.
Can I sell it for free on Amazon?Opening an individual account on Amazon is free, but you must pay $0.99 as a commission for each sale you make on the platform.
SourcesThe post 20 Amazon Seller Statistics & Facts You Need to Know in 2023 appeared first on The Tech Report.