Amazon is becoming a trade platform and culture in the retail industry. It has been more than two decades amazon is ruling the online retail platform. With great customer and seller database, it’s the best in the field. Amazons mission statement which make it more customer-oriented is the core of its business. As the customers, it values its sellers too. The introduction of FBA (fulfilment by amazon), FBM and vacation mode settings have increased high trafficking of sellers towards the online platform.

The expectation of amazon towards the year 2020

In 2020 also amazon assures its sellers that it will remain a perfect profitable niche in the market making money. It was also noted that 61% of sellers peaked their profit in 2019. And it is also a piece of boosting news for amazon that 90% of the sellers will continue with amazon in the new year.

Amazon earns in a year

 As per CNN report amazon earned 232.9 billion dollars in revenue. It is really hard to calculate what amazon makes a year.

If amazon earns $232.9 billion a year. That tells you that

  • $19.4 billion per month
  • $4.5 billion per week
  • $638.1 million per day
  • $26.6 million per hour
  • $443,112,63 per minute
  • $7,385.21 per second

 The numbers are mesmerising. If we calculate the time it takes to bring in enough revenue to pay for 

  • Microsoft Xbox One S ITB Portnite bundle $249- 0.03 seconds
  • Apple MacBook Pro 15.4” laptop $2,499 – 0.34 seconds
  • Mid-sized sedan $25,838 – 3.5 sec
  • Jeff Bezos base salary $81,840 – 11.08 sec 
  • US national debt $22 million – 94.46 years

Thus when we check its amazing what amazon does in a year, in a second and a minute.

Amazons main revenue makers are the sellers so amazon makes its policies and services more simplified to attract more customers to its business and make a profit. On the other hand, its amazon who makes money.

Average monthly sales of sellers and their profit

The average monthly sales of sellers are a crucial market quotient of amazon. Half of the customers make $1000- $25000/ month which will count to an annual sales of $12000-$30000. A portion of five (20%) gross $25000-$250000/month which could mean annual sales between $300000 and $3000000 the other 3.3% makes more than $250000 monthly sales. Only 23.8% of sellers make the amount under $1000/month in sales. 

Amazon is very lenient to its new sellers and has options to help them to catch up with the changing market scenario through a lot of market options makes it more viable for them.

Much of them achieved their lifetime sales in amazon of more than $100000

  • Lifetime sales  $100,000- $500,000 :20.3%
  • $500,001- 1000,000: 8.3%
  • $1000,001-5,000,000 :11%
  • $5,000,00,- 10,000,000 :3.2%
  • $10,000,00,-50,000,000 :4.3%
  • > $50.000,000: 3%

This peaking sale denotes the growth of Amazon. It is always given out healthy sales growth in the past years. But it’s not ready to reveal the right amounts their sellers take home.

  • About 67.2% of sellers see profit margins higher than 10%.
  • About 36% see profit margins of 20%.
  • On the other hand, 8.4% does not make it profitable and 5.3% did not know.

Money made by the sellers is the contribution of sellers to amazon growth. So to double that amazon have introduced many tactics.

Time is taken for becoming profitable in amazon

According to our research, about 67% of the sellers became profitable within one year.

  • profits within 3 months:22%
  • profits within 6months: 22%
  • profits within 1 year:23%
  • profits for more than 2 years:13%
  • profit-making in more than 2 years :3%

 Some claim that they made a mesmerising profit within a 2-year experience. but the majority stands for making a good profit in one year. The profit-making of new sellers are as follows

  • within 3 months: 16%
  • within 3 to 6 months:23%
  • profits within 1 year:24 %

Capital to start up an amazon account

capital is always a hardship for the newbies in the online field. If it’s in the case of money or time it’s difficult. But when we enquired with the new sellers they were happy with the service of amazon offers. Even though amazon imposes some fees on its services compared to the quality of service it is nothing. With the new tech, any sellers could be profitable in no time.

As an overall, 60% of the sellers started selling in amazon  with less than $5000 and around 20% spent less than $1000 

  • sellers spent less than $500: 17%
  • $500-$1000: 12%
  • $1001- $2500 : 13%
  • $2501- $5000 :18%
  • $5001- $10,000 :21%
  • More than $10,000 : 21%

Mainly this capital amount is spent on the sourcing of the products, amazon fees and promotions or advertisements. As per a recent survey, the sellers claimed that its easy with amazon to catch up a retail platform.

Time is taken to start selling in amazon

About 57% of sellers spend less than 20hours  and around 13% spend about 30 minutes in front of their system.

  • Less than 4 hours a week:13%
  • 4 to 10 hours:24%
  • 11 to 20 hours: 20%
  • 21 to 30 hours: 15%
  • 31 to 40 hours:10%
  • 41 to 50 hours: 9%
  • 51 to 60 hours : 3%
  • > 60 hours : 6 %

Any way of spending more time on the business can shoot up your profits and sales at the maximum. 

How can be a successful seller in amazon? 

Making use of your time properly can make you a successful seller on Amazon. In amazon time is money. Becoming a clever seller can gross a substantiate amount of money from amazon. As amazon is a two-decade-old business it is not a simple task to be continuously successful in such a competitive field. To make the selling more profitable we have numerous tools. By making use of both amazon business options and the tools available in the market can lead the sellers to be successful.

Tips for successful business growth with Amazon

Finding precise product sources and making your marketing nice can make you a successful business in amazon. If you are using the FBA service by amazon you can be free from the back end processes and find ample time doing product promotions and advertising. We have many product tools to hype up our profits that includes repricing tools, vacation mode settings by amazon to make money during vacations and many more. The wise use of such tools and software can ensure your business growth and success in amazon.

Final Thoughts 

Amazon from its beginning as a humble bookseller to the online retail market giant in the past two decades is worth watching. As the retail giant is branching to more business areas it expects to rule the online retail platform omnipotent. When we checked the recent survey reports it was very clear that amazon makes money irrespective of the demographic ranges and countries. The buying power of amazon is amazing as it could buy its old competitors Barnes and Noble with its one day earning. It was their motto to claim to their sellers to sell their products in ease and to the customers to buy goods at reasonable rates and enjoy the marketing tactics of the tech giant.

 

Even though Amazon is facing a lot of ongoing issues regarding its communication and seller platform FBM it is making sufficient moves to tackle the issues when it heads to the new year. And it is even more mesmerising the amount made by the amazon to pay off its employees as a multinational corporation.