Survey: 86% of Amazon’s Third-Party Sellers Profitable Going Into 2020
Jungle Scout Surveys the Sellers Responsible for More Than Half of Amazon’s $280b Annual Revenue, Revealing Revenue Insights, Pain Points, and Plans
Jungle Scout, the leading all-in-one software tool for Amazon sellers, released the results of a survey among 1,046 third-party sellers on Amazon. The 2020 State of the Amazon Seller Report explores the health of their Amazon businesses, including their profit margins, diverse sales strategies, key pain points with Amazon, and plans for 2020.
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Amazon’s third-party sellers are responsible for more than half of the company’s annual revenue — which surged to more than $280 billion in 2019*. Key insights from these sellers reveal:
86% of third-party Amazon sellers are profitable:
- 67% are profitable within their first year selling.
- 61% say their Amazon profits increased during 2019.
- Some new Amazon sellers are earning upwards of $800,000 per year in profits.
Third-party sellers raise concerns about the power of Amazon:
- 76% of sellers are concerned about Amazon shutting down their account without reason.
- 58% say Amazon has made it harder for third-party sellers to compete in their product category.
- 53% say Amazon sells its own products that directly compete with the seller’s products.
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Challenges in China are driving up costs on Amazon:
- 68% of sellers are concerned about Chinese suppliers selling their or similar products at lower costs.
- Nearly half of Amazon sellers (47%) have had to pay more for their products due to higher tariffs on goods from China, and 34% of sellers have passed on those costs to their customers with higher prices.
“Amazon is an undisputed global powerhouse, and third-party Amazon sellers are an enormous part of that business,” said Greg Mercer, founder and CEO of Jungle Scout. “While these sellers need to remain adaptable and put in the effort to keep up with Amazon, it’s clearer than ever that they can achieve tremendous success with the right strategies and resources.”
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