76% of Amazon Sellers’ profitable to start 2022 despite supply chain crisis.
With a whopping 76% of Amazon sellers profitable, it’s clear that taking advantage now will pay off big for those who invest in their own ecommerce store. Despite the numerous challenges they face along with 90%, many are still able get ahead and stay competitive as new research reveals most (76%) report positive results from this year so far! The 2022 State of the Amazon Sellers Report is a fascinating look into how entrepreneurs are making money on this platform. 3,500 brands and businesses were surveyed for their insights regarding various aspects related to selling online through amazon’s marketplace service-they shared plans they have going forward in order protect profits while also addressing pain points like customer support or shipping time frames.
What is the one thing you could do to make your business more successful? Maybe it’s something as simple and straightforward, like selling on Amazon! third party sellers are a huge part of why amazon generates so much revenue. They sold $30 billion worth in Q4 alone which accounts for 22% percent–a new highwater mark achieved by this sector during their history finest quarter yet.
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 (acompany 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.
See the full report for more details.
“It is fascinating to see that Amazon sellers, who are known for their adaptability and staying power in the constantly evolving ecommerce landscape have continued success even with global pandemic outbreaks as well supply chain disruptions. This speaks volumes about these individuals’ ability not only survive but thrive during difficult times,” said Greg Mercer from Jungle Scout CEO’s perspective. “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.”
July 8, 2022
About the Author:
Nick Uresin is the Founder and CEO of ArgoMetrix, a New York based software and consulting company established in 2013. Nick is an Entrepreneur, Electronics, Communications and Computer Science Engineer, who has a passion for problem solving with technology. Nick built an online retail company with annual revenues of over $10 million. He developed his vision to organize the knowledge and technology he developed to become a large Amazon Seller and provide it as a service to manufacturers and sellers of consumer products. Let's get social! Follow us and get ArgoMetrix's latest updates on Twitter, Facebook or LinkedIn.