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Amazon Statistics For Sellers

Millions of sellers worldwide prefer partnering with Amazon because of the effective services that it provides to small and medium-scale businesses (SMBs). These services help SMBs not only thrive but also create economic opportunities within the local communities globally.

Thus, the strong partnership between Amazon and SMBs has delighted millions of customers with vast product selection, low prices, and convenient delivery.

Whether someone wants to start a new brand or has a brand that is well-established, Amazon has set a platform for businesses of all sizes to launch and build a successful brand. It offers a range of new and improved tools, programs, and services that help brands scale and grow their business.

As a result of the powerful tools and effective services that Amazon offers to sellers, independent sellers sold more products year over year in Amazon’s stores in 2023. In fact, these sellers broadened their customer reach beyond the U.S. through increased international export sales.

According to the reports, independent sellers in the U.S. sold more than 4.1 billion products, an average of 7,800 every minute, in Amazon’s stores and exported over 260 million products. Sellers in rural areas together achieved more than 40% year-over-year sales growth in Amazon’s stores, showcasing the opportunity Amazon opens for small businesses across the country.

In this article, we are going to look at some of the important Amazon Statistics 2023 to understand how sellers or SMBs have been faring on Amazon and how Amazon has performed globally in terms of sales and profits.

Amazon Seller Statistics: Amazon Statistics 2023

  • 60% of sales in Amazon’s stores come from independent sellers, most of which are small and medium-sized businesses.
  • 39% of sellers described themselves as “digital nomads” who worked remotely and traveled.
  • 8% of sellers on Amazon belonged to the 18 to 24-year-old age group, 30% were within the age group 35 to 44 years, and 28% fell within the 25 to 34-year-old age group. The remaining 34% of the sellers were above 44 years old.
  • 55% of the sellers on Amazon belonged to the United States, 7% to the United Kingdom, 6% to Canada, and the remaining 32% to India, Pakistan, China, Italy, Mexico, Nigeria and all the other countries.
  • In 2023, 70% of the SMB sellers were Third-Party Sellers (3P) selling products to Amazon as a vendor and using Vendor Central, 30% were First-Party Sellers (1P) selling products on Amazon’s platform and using Seller Central, and 7% sold as both Third-Party and First-Party Sellers.
  • 54% of the SMB Amazon Sellers sold products under a private label, that is, created their own product label or brand. 26% sold products, sourced directly from a brand or from distributors with extra stock, under the Wholesale Model. Another 25% of the SMB sellers sold products, sourced at discounted prices through retailers, under the Retail Arbitrage Model. And 24% sold products, sourced at discounted prices through online retailers, under the Online Retail Arbitrage Model. Then, 17% of the SMB sellers followed the Dropshipping model to sell products on Amazon. Finally, 8% of the sellers sold handmade products on Amazon in 2023.
  • 60% of the Amazon sellers agreed that selling on Amazon was not a “get rich quick” tactic. 52% of sellers were able to turn a profit with their first product launch, others weren’t successful until their second or third product launch.
  • Most sellers were able to get a fully functioning business set up on Amazon within 3 months in 2023, and most could manage their business with fewer than 20 hours per week.
  • 58% of the sellers spent less than $5,000 to start their business on Amazon and 25% spent less than $1,000.
  • 63% of sellers were profitable within a year of launching their business.
  • 77% of sellers said they at least partially funded their business with their own cash.
  • 46% of sellers agreed that the increasing cost of goods was a concern for them. 39% believed that increasing competition driving prices down was another common challenge that they faced in 2023.
  • Inflation and rising business costs emerged as the most commonly shared concern among SMB sellers in 2023. 38% said increasing ad costs was a common challenge whereas 36% agreed that inflation was a shared challenge among SMB sellers in 2023.
  • 32% of sellers experienced higher-than-normal returns in 2022.
  • 52% of sellers experienced inventory delays in 2022, up 6% from the previous year.
  • 46% of sellers lost sales in 2022 on account of the extreme supply chain disruptions that emerged in the early days of the COVID-19 pandemic. This percentage is 28% down from the previous year, as 74% of sellers lost sales in 2021.
  • Amazon’s Third-Party Seller ecosystem accounts for 60% of their unit sales.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

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Amazon Sales Statistics: Amazon Statistics 2023

  • 22% of SMB sellers surpass $10,000 in average monthly sales.
  • 72% of the SMB sellers report sales above $1000 per month.
  • 55% of the SMB sellers report sales above $5000 per month.
  • 58% of the Enterprise sellers, earning more than $2 million in annual revenue, report sales above $250,000/month.
  • 21% of the Enterprise sellers report sales above $1 million/ month.
  • Nearly three out of four Amazon sellers (73%) report a profit margin above 10%, and more than a third (35%) exceed 20%. While the profit margins for small businesses can vary significantly depending on the industry, the average for U.S. companies ranges between 7% and 10%.
  • 55% of the SMB sellers have profit margins above 15%. While 67% of the Enterprise sellers have profit margins above 15%.
  • In 2023, 89% of sellers are profitable, up from 85% the year before.
  • 37% of Amazon sellers say they saw increased profits last year despite growing concerns around inflation which impacts consumer spending habits along with business costs for Amazon sellers.
  • The profits earned by SMB sellers in 2022 compared to 2021 increased by 37% and their profits decreased by 30% in 2022 relative to 2021. Among SMB sellers whose profits increased in 2022, 62% saw increases between 1 and 20%.
  • The profits earned by the Enterprise sellers in 2022 compared to 2021 increased by 49% and their profits decreased by 33% in 2022 relative to 2021. Among Enterprise Sellers whose profits increased in 2022, 69% saw increases between 1 and 20%.
  • 47% of the SMB sellers selling products on Amazon have lifetime profits over $100,000. Whereas, 73% of the Enterprise Sellers have lifetime profits over $1,000,000.
  • In 2022, the independent sellers sold more than 4.1 billion products in Amazon’s U.S. stores and averaged more than $230,000 in sales in Amazon’s stores.
  • Brand owners grew sales more than 20% year-over-year.
  • Sellers using tools like the Manage Your Experiments tool that allows sellers to run experiments for testing different versions of their product content increase customer interest and sales by an average of 25%.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

Amazon FBA Statistics: Amazon Statistics 2023

  • Fulfillment by Amazon, or Amazon FBA, is the most popular fulfillment method for Amazon sellers as 86% of the SMB sellers fulfilled orders using Amazon FBA. 37% of the sellers handled their own fulfillment through Fulfillment By Merchants (FBM). Of the total number of sellers using FBA, FBM, or both, 64% fulfilled orders through FBA only, 15% through FBM only, and 22% of the SMB sellers fulfilled orders through both FBA and FBM.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

Amazon Marketplace Statistics: Amazon Statistics 2023

  • The U.S. marketplace receives the most visitors (83%) among all of Amazon’s 20 global marketplaces. Canada receives 24%, the second highest, and the United Kingdom receives 18% of the visitors among all of Amazon’s global marketplaces. Then, Mexico receives 12%, Germany receives 10%, and France and Australia each receive 9% of the global visitors on Amazon. Italy takes the eighth position among the top ten global marketplaces receiving visitors with 8% share, Spain takes the ninth position with 6% share, and Japan takes the tenth position with 5% share.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

Amazon Advertising Statistics: Amazon Statistics 2023

  • 80% of Amazon sellers advertised their products on or off Amazon.
  • Amazon’s pay-per-click (PPC) advertising options remained the most popular marketing tactic, but the use of social media channels for advertising was increasingly popular.
  • In 2023, 41% of sellers advertised on social media, up 16% from the previous year. 67% of sellers advertised through Facebook Ads, down 7% from the previous year. 29% of sellers advertised through YouTube Ads, up 86% from the previous year. Instagram Ads also saw a downward trend with 49% of sellers advertising on Instagram, down 11% from the previous year.
  • 29% of sellers advertised on search engines through paid search ads. 90% of the sellers advertised through Google Ads, while 17% advertised through Bong Ads.
  • 59% of the sellers advertised on eCommerce platforms through paid ads, down 6% from the previous year. 41% of sellers advertised through Amazon PPC ads as Sponsored Brands, 41% through Amazon PPC ads as Sponsored Products, and 33% through Amazon PPC ads as Sponsored Displays. 23% of sellers advertised through Amazon Video Ads.
  • 24% of sellers posted advertising content on their branded or personal social media accounts. While 12% hired influencers to promote their products on social media.
  • 69% of sellers spent around $0 to $2,500 on monthly advertising costs across all platforms, including Amazon PPC, search engines, social media, and traditional media. This percentage is down from the previous year, when 85% of SMB sellers fell into that same range for advertising spend, thus indicating rising ad costs, which continues to be a common challenge for Amazon sellers. About half of those using Amazon PPC and other Amazon marketing products spent less than $500 per month on Amazon marketing investments.
  • 38% of SMB sellers said increasing ad costs was a concern for them.
  • One of the most common challenges among SMB sellers was managing pay-per-click (PPC) advertising.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

Amazon Revenue Statistics: Amazon Statistics 2023

  • Amazon’s annual revenue in 2022 stood at $ 513,983 million, up 9% from the previous year. The revenue generated in North America was $ 315,880 million, up 13% relative to the previous year. The international revenue stood at $ 118,007 million, down 8% from the previous year. AWS sales increased 29% and stood at $ 80,096 million.
  • Amazon generated a revenue of $ 117.7 billion through third-party retail, $ 18.9 billion through physical stores, $ 220 billion through online stores, $ 35.2 billion through subscription services, $ 80 billion through AWS, $ 37.7 billion through advertising, and $ 4.2 billion revenue through other sources.
  • If we look at the revenue breakdown by region, Amazon generated a revenue of $ 315.8 billion from North America, $ 118 billion internationally, and $ 80 billion from AWS.
  • Amazon’s consumer business grew extraordinarily from $245 billion in 2019 to $434 billion in 2022.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

Amazon Product Statistics: Amazon Statistics 2023

  • The top three Amazon product categories for SMB sellers were Home and Kitchen (35%), Beauty and Personal Care (26%), and Clothing, Shoes, and Jewelry (20%).
  • 84% of sellers on Amazon sell 50 or fewer products, whereas around 7% of sellers offer more than 500 products. 35% of sellers have 5 or fewer products while 51% of sellers have 10 or fewer products.
  • 58% of sellers price their products between $16 and $50, while just 9% of the sellers price their products above $50.
  • Amazon-owned top 10 most successful private label brands that contribute 81% of the total sales by all Amazon private label brands. AmazonBasics alone contributed 57% of the total volume. The top three private label brands on Amazon were AmazonBasics, Amazon Collection, and Amazon Essentials. Together, these brands contributed 70% of the total sales by all Amazon private label brands.
  • 49% of products of the top 10 brands are under $20, 38% are between $20 and $50, and only 12% are more than $50.
  • The average product rating is 4.1 out of 5 stars. 30% of products of the top 10 brands are rated 4.5 or more, and 83% are rated 4.0 or more.
  • Only three of Amazon’s private label brands, Amazon Collection, AmazonBasics, and 365 Everyday Value, offer more than a thousand products. 89% of Amazon’s private label brands have less than 100 products, 25% of brands have under 10 products, and 64% from 10 to 100.
  • About 70 percent of the word searches done on Amazon’s search browser are for generic goods.
  • 5.4% of the top 1,000 search terms on Amazon result in a customer clicking on an AmazonBasics product as one of their first three choices.
  • 47.7% of Amazon’s private labels sell clothing, shoes, and jewelry, 11.1% of brands sell Home and Kitchen, and 8.4% of the brands sell Grocery and Gourmet Food.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

Amazon Company Statistics: Amazon Statistics 2023

  • As of 2022, Amazon was ranked as the world’s most valuable retail brand, with a brand value of around 282 billion U.S. dollars.
  • Amazon Technologies was granted a total of 2,051 patents in 2022 by the U.S. Patent & Trademark Office.
  • Amazon went negative in 2022, after remaining positive in terms of net profit for seven years. Amazon’s core business is estimated to have had an annual net loss of over $15 billion in 2022.
  • Amazon’s valuation dipped slightly to $ 1005.3 billion in 2023 from $ 1641.5 billion, though it still remains a trillion-dollar company.
  • Amazon Prime’s annual subscribers grew from 200 million in 2022 to 220 million in 2023 as Amazon has expanded its store and delivery targets.
  • Amazon’s AWS grew 29% year-over-year (“YoY”) in 2022 on a $62B revenue base.
  • In 2022, Amazon’s international consumer segment drove $118B of revenue. The UK saw a compound annual growth rate of 30%, Germany 26%, and Japan 21% (excluding the impact of FX). Over the past several years, Amazon has also invested in new international geographies, including India, Brazil, Mexico, Australia, various European countries, the Middle East, and parts of Africa.
  • Amazon Business drove roughly $35B in annualized gross sales. More than six million active customers, including 96 of the global Fortune 100 companies, enjoy Amazon Business’ one-stop shopping, real-time analytics, and a broad selection of hundreds of millions of business supplies.
  • Amazon saw enormous growth in its Prime Video offering over the last three years with 190 million subscribers, up from 175 million subscribers in 2022. Amazon spent $16.6 billion on content for Amazon Prime Video in 2022, an increase of $3 billion from 2021.
  • In 2022, Amazon spent $16.6 billion on content for Amazon Prime Video, up $3 billion from 2021.

Data Source: The State Of The Amazon Seller 2023 By Jungle Scout

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