New Sellers earn between $26,000 to $810,000 per year in profit

[jpanarra]

New Amazon Sellers Average $26k in Profits in First Year, Survey Reveals


I came across this article yesterday, I know there are a number of very successful amazon sellers on here and aspiring entrepreneurs looking to get in FBA.


I’m a numbers guy and I found this article rather interesting due to the massive growth, 80% amazon sellers sell directly on amazon and most of them say they’ve gotten a 61% net profit gain.


Another number that caught my eye was that 20% of sellers make a range of $25,000 to $250,000 per month.

I do catch myself questioning is that net sales or is that net profit, regardless if they have a 15% profit margin they’ll bring home $3,750 per month on the 25k number. The NIAT should be around $2,625 per month. which is a good amount of cash for a good lot of us.


Most of them seem to be profitable within the first year they start posting and a range of investments to be in between $500 to $10,000 which is more than feasible for a savings plan in one year then tackle it in the next.


I do recognize that this article has information from jungle scout which is an amazon seller’s tool SAAS and it could be a piece of promotion. I just wanted to share and hear your input on this article, especially from people that have a lot of experience in this space.

 

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[MJ DeMarco]

$26K extra a year could do wonders for someone struggling.

Wherever someone ends up on this scale, $26K/year or $26K/ a month, it's definitely a channel that can't be ignored.

The CAGR on these businesses, even small side hustles, is phenomenal and still outperforms a bullish stock market.

 

[Everyman]

Great article and eye-opener. I didn't know that it is THIS profitable...

Of course there is more than just revenue/profit, still interesting to read and consider actioning on it.

net sales or is that net profit

"By the way, this is not their profit, just total sales." - from the article.

I don't run one so I can only ask questions too.

How much time do you need to start earning?
How much money do you need etc...?
What are the profit margins for different products? (this can probably 'googled')
Also, stats are only stats and would be good to see who makes the top producers, medium-level etc etc etc to learn if the data is not biased/cooked somehow, or as you called it 'piece of promotion'...

Anyway great share jpanarra.

 

[jpanarra]

$26K extra a year could do wonders for someone struggling.

Wherever someone ends up on this scale, $26K/year or $26K/ a month, it's definitely a channel that can't be ignored.

The CAGR on these businesses, even small side hustles, is phenomenal and still outperforms a bullish stock market.

Yup, but it still needs a good amount of elbow grease to get it to that point but all the information is accessible on this forum and elsewhere.

Great article and eye-opener. I didn't know that it is THIS profitable...

Of course there is more than just revenue/profit, still interesting to read and consider actioning on it.



"By the way, this is not their profit, just total sales." - from the article.

I don't run one so I can only ask questions too.

How much time do you need to start earning?
How much money do you need etc...?
What are the profit margins for different products? (this can probably 'googled')
Also, stats are only stats and would be good to see who makes the top producers, medium-level etc etc etc to learn if the data is not biased/cooked somehow, or as you called it 'piece of promotion'...

Anyway great share jpanarra.

Ah thanks! Sometimes I read things a bit too quickly and overlooked that tiny bit of detail.

I know there are a number of threads on the INSIDERS side of things and I recall Biophase offering a mentorship/course type of deal on how to succeed on amazon.

I've seen many people change their lives by just tweaking and branding something from china's alibaba and be successful within the year right here on the FLF.

 

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[Deleted74396]

Wish I'd known this last year when things started to go south and I wasn't sure what to do. Even total sales rather than profit, $26k/year would've paid my bills whilst I found my focus.

 

[biophase]

I don't run one so I can only ask questions too.

How much time do you need to start earning?
How much money do you need etc...?
What are the profit margins for different products? (this can probably 'googled')
Also, stats are only stats and would be good to see who makes the top producers, medium-level etc etc etc to learn if the data is not biased/cooked somehow, or as you called it 'piece of promotion'...

To answer your questions, I'm actually in the 3.3% as I do +$250k a month now. But I'm going to point out the biggest flaw in your questions. Because your question will lead you to be in the "23.8% of sellers make less than $1,000 per month".

The reason a quarter of the people make less than $1000/mo is because they hear that Amazon is a cash cow and want to jump in without thinking that this is hard and a real business. Amazon is a channel, a great way to jumpstart a business, but if you only think in terms of Amazon, you will get crushed.

1) How much time do you need to start earning? - For me, it's day one

2)How much money do you need etc...? - $10k minimum in my opinion

3)What are the profit margins for different products? (this can probably 'googled') - 33% is what I shoot for. 20% is good. 10% is pretty easy.

4) Also, stats are only stats and would be good to see who makes the top producers, medium-level etc etc etc to learn if the data is not biased/cooked somehow, or as you called it 'piece of promotion'...

The data is going to be biased. They interviewed the 2000 sellers that are still selling. they didn't interview the other (just throwing a number out there) 5,000 sellers that went out of business and lost all their money.

So imagine if they had a pool of 7,000 sellers, then the average profit would be $7.500.

 

[MoneyDoc]

To answer your questions, I'm actually in the 3.3% as I do +$250k a month now. But I'm going to point out the biggest flaw in your questions. Because your question will lead you to be in the "23.8% of sellers make less than $1,000 per month".

The reason a quarter of the people make less than $1000/mo is because they hear that Amazon is a cash cow and want to jump in without thinking that this is hard and a real business. Amazon is a channel, a great way to jumpstart a business, but if you only think in terms of Amazon, you will get crushed.

1) How much time do you need to start earning? - For me, it's day one

2)How much money do you need etc...? - $10k minimum in my opinion

3)What are the profit margins for different products? (this can probably 'googled') - 33% is what I shoot for. 20% is good. 10% is pretty easy.

4) Also, stats are only stats and would be good to see who makes the top producers, medium-level etc etc etc to learn if the data is not biased/cooked somehow, or as you called it 'piece of promotion'...

The data is going to be biased. They interviewed the 2000 sellers that are still selling. they didn't interview the other (just throwing a number out there) 5,000 sellers that went out of business and lost all their money.

So imagine if they had a pool of 7,000 sellers, then the average profit would be $7.500.

Just to add to @biophase post, another reason he's in the top 3.3% is because he isn't selling another spatula to make a quick $1000. Let's say he is in the spatula industry, the reason he's doing so well is because he has most likely niched down, is targeting a very specific type of customer, and has a brand.

I personally have a supplement brand. You might think to yourself, "you're just selling another supplement". True, but I have a defined customer. I have a defined niche. I have a defined brand. And all that is reflected in my labels, prices, etc.

 

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[AgainstAllOdds]

No one here took the time to look at the numbers in that article.

To summarize: the headline of this thread, and the presentations made in that article are bullshit. Using the data they provided, the average person doesn't make any significant money on Amazon.

I went ahead and spent two hours diving into these numbers. You can find them here: Why Amazon Sucks: The Master Thread

 

[Everyman]

@biophase thanks for your input. I figured it is the same as everything else. A person needs to be smart, put in the time and effort (not even money because what is 10k in today's world... nothing...).

@MoneyDoc exactly what I thought. Being unique and separating from everyone else seems to be one of the most important factors.

No one here took the time to look at the numbers in that article.

To summarize: the headline of this thread, and the presentations made in that article are bullshit. Using the data they provided, the average person doesn't make any significant money on Amazon.

I went ahead and spent two hours diving into these numbers. You can find them here: Why Amazon Sucks: The Master Thread

Where is the rep bank?!!! How can I send you moneyz? If you give me a PO box or an address I will send you a small gift for this comment and the whole new thread.

 

[Ing]

No one here took the time to look at the numbers in that article.

To summarize: the headline of this thread, and the presentations made in that article are bullshit. Using the data they provided, the average person doesn't make any significant money on Amazon.

I went ahead and spent two hours diving into these numbers. You can find them here: Why Amazon Sucks: The Master Thread

I had a short look at it yesterday and I thought: what a bs! Noone who is thinking about it will sell again on A.
but your thread shows it better than I could express in 10 years.

 

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[MoreVolume]

Did $36K on Amazon in ‘19, which was my first year up there