Here is your midweek jetpack of Amazon seller news, updates, and other useful clicks for your e-commerce business…
2023 State of the Amazon Seller
Jungle Scout just released its juicy annual report: 2023 State of the Amazon Seller.
Based on insights from over 2,000 Amazon sellers, the report dives into the strategies of sellers and small businesses that generate a major chunk of Amazon’s $514 billion revenue.
*Image credit from the JungleScout report
Here is a quick summary:
On Profitability:
- 89% percent of Amazon sellers are profitable. 37% reported increased profit throughout 2022.
- 3 out of 4 Amazon sellers have profit margins above 10%.
- More than 50% have profit margins above 15%.
On Social Media Advertising:
- 41% of sellers now advertise their products on social media– up 15% over the last year.
- Facebook, Instagram, and Pinterest ads have trended down.
- Youtube, TikTok, and Snapchat ads have trended up.
- Over 50% of Amazon sellers plan to advertise on social media in 2023
On Global and Multichannel Reach:
- 61% of Sellers were selling on at least one other channel in 2022.
- In 2023, over 50% are looking to expand to other ecommerce platforms and new global marketplaces.
- One in three sellers are focused on acquiring other brands in 2023– “signaling overall confidence in the industry’s future.”
- The fastest-growing global Amazon marketplaces include: Turkey (+80% YoY), Japan (+53% YoY), Saudi Arabia (+50% YoY), Brazil (+220% YoY) and Australia (+47% YoY).
- The top alternative ecommerce platforms used by Amazon sellers include (in order): eBay, Shopify, Walmart, Etsy, and Facebook Marketplace.
On the Typical Amazon Seller:
- 58% of Amazon sellers are between the age of 24 and 44
- 72% are male
- 50% have full or part-time jobs outside of ecommerce selling
Curious, do you fit this profile?
You may read more highlights and download the full report with pretty graphs and pictures here.
Giveaway Winners Announced!
The fbaleadlist.com giveaway ended this past weekend, and we are happy to announce the two winners:
Taylor N (#177) and Terry G (#257) — congratulations! You will receive an email from our team about setting up your free lead list subscription. Wahoo!
Thanks for entering!
Is Amazon’s Slice of the Pie Too Large?
According to new research by the founder of Marketplace Pulse, Joe Kaziukénas, Amazon is pocketing more than 50% of the FBA sellers’ revenue, 10% higher than it was five years ago.
The reasons behind this are two-fold: increasing fulfillment fees and the pay-to-play arena Amazon is evolving into which necessitates advertising and use of its services like FBA.
Remove advertising from the puzzle and the slice of the pie drops to around 40%. (RA/OA sellers adding to listings that are already ranking.)
*graph source from Marketpulse article
Despite the stomach-punch fees, Amazon’s services are truly mind blowing, and remove many headaches from the puzzle of running a business.
These worldwide marketplaces allow us to plug and play into a system that none of our ancestors ever had access to. Instead of selling cow’s milk to Fred in the town down the road, we can sell anything to anyone anywhere in the world. With the click of a button, we can support ourselves and our families.
Amazon is dominant when it comes to reach. The marketplace presence spans 58 countries and reaches an internet population of 1.2 billion.
So yea, the fees are annoying and do cut into your profits– but perhaps they are still worth it?
Amazon Is Radically Transforming Small Businesses
While it’s still uncertain whether Amazon is exploiting or lifting up small businesses, one thing is certain – it has certainly transformed what small businesses are.
Moira Wegel, assistant professor of communication studies at Northeastern University, says that Amazon sellers look nothing like traditional American entrepreneurs anymore, and can now be more likened to day traders.
“To be an Amazon seller does not look much like running the mom-and-pop corner store that politicians and pundits evoke when they talk about American small business,” she adds. “As several of my interviewees put it, it typically looks more like day trading—interpreting and trying to speculate on global data flows that you experience primarily through screens.”
Weigel and her graduate assistant Zhazhou Dai spent the last two years corresponding with Amazon third-party sellers to chart the retail giant’s impact on the hidden but vital part of the global consumer economy. She shares her findings in her report “Amazon’s Trickle Down Monopoly – Third Party Resellers and the Transformation of Small Businesses” which she recently released.
Read the full interview here.
Awesome Products are Awesome
Product research is important. You already know this. You can create profits by niching down into a specific line of products, and also by diversifying into hundreds or thousands of different products. The rabbit holes of product research always lead to gold if you are consistent and have enough patience.
We found two sources for potential products to sell on Amazon to help start your rabbit trails:
Amazon Best Sellers and Trending Products in February 2023
Genius Things That Solve So Many Weird Problems That Are Always Sold Out at Amazon
Learning Opportunities this Week
Here are a few learning resources for your Amazon business this week:
Blog Posts:
- How to Sell on Amazon International Marketplaces by Jungle Scout
- Beginners Guide on How to Sell on Amazon Canada by Sellerapp
- How Does FBA and Fulfillment Help You as an Amazon Seller in the Category of Automotive Parts by Toucan Advisors
Podcasts:
- How to Get Ungated and What to Do with an IP Complaint by Silent Sales Machine Radio
- The Three Areas of Focus for Amazon Sellers by Silent Sales Machine Radio
Other Quick Clicks
- Amazon Sustainability Accelerator returns to find recyling-led startup innovators
- Amazon invests in, sells products from sustainable tech company
- Amazon’s Zoox Robotaxi has made its way to public streets with passengers
- Amazon bursts back into the trillion-dollar club as the stock rally allows Big Tech to retake top slots among most valued companies
- Can Amazon’s CEO eclipse the Bezo’s legacy
Thank you for reading. If you have any questions, comments or violent reactions, let us know below!
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