Report: 76% of Amazon Sellers Profitable to Start 2022 Despite Supply Chain Crisis

Jungle Scout’s annual report explores ecommerce insights from Amazon entrepreneurs, brands, and businesses to learn about strategies for 2022

New research released today by Jungle Scout, the leading all-in-one platform for ecommerce sellers, reveals that 76% of Amazon sellers are profitable to start 2022, despite 90% experiencing the negative impact of supply chain challenges. The 2022 State of the Amazon Seller Report reveals insights from 3,500 entrepreneurs, brands, and businesses on Amazon to understand sellers’ diverse business strategies, profits, pain points, and plans for 2022.

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Amazon’s net sales from third-party (3P) sellers grew 28% year-over-year in 2021 and accounted for 22% percent of the company’s $470 billion revenue. 3P seller revenue reached $30.3 billion in Q4, the highest fourth-quarter amount in the company’s history.

Jungle Scout’s report shares valuable ecommerce intelligence and insights into the growing Amazon seller landscape. Key findings include:

• 45% of sellers reported their profits increased from 2020 to 2021
• 95% of Amazon sellers plan to expand their businesses in 2022
  • 25% of new sellers plan to sell their business to an aggregator (a company that acquires ecommerce brands with the goal to scale them and gain revenue for investors).
  • 32% of sellers will increase marketing and advertising spend in 2022
  • 67% are concerned about Amazon changing search results to favor paid results over organic results
  • 39% of sellers will grow their brand through social media, influencer marketing, or other marketing efforts this year
  • 53% would consider working with an agency to build and manage their business
• More than half of Amazon sellers also sell on Walmart and Shopify
  • Plus, 30% are exploring selling on other platforms, including eBay, Facebook, and Etsy
• Increasing shipping costs are a top concern for 64% of sellers
  • 46% of sellers waited months to receive inventory due to global supply chain challenges in 2021
  • 44% lost $5,000 or more due to supply chain issues.

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“It’s heartening to see Amazon sellers continue to find success in the constantly evolving ecommerce landscape. Especially despite a global pandemic and supply chain disruptions, which speaks to the staying power and adaptability of Amazon sellers,” said Greg Mercer, Founder and CEO of Jungle Scout. “The steady growth of Amazon and ecommerce demonstrates that consumers can rely on ecommerce businesses during times of uncertainty and sellers can count on a stable source of revenue.”

Methodology

Between Dec. 1, 2021, and Jan. 3, 2022, Jungle Scout surveyed 3,500 Amazon sellers, including prospective and former sellers. Respondents represent 117 countries, all 20 Amazon marketplaces, and all relevant Amazon product categories. They are ages from 18 to 80+, as well as all genders and levels of education.