Is It Profitable To Sell On Amazon?

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Is it really that profitable to open an online store on Amazon? Read on, and find out how much money you can make.

Many people have online businesses on Amazon and earn a lot of money from the comfort of their own home. There are countless options from retail, arbitrage, brand owners to dropshipping. If being your own boss is your dream job, you have already been thinking about opening an online store on Amazon. But one of the main questions you’ve probably asked yourself is, is it really worth it, or earning it big on Amazon is just an urban legend.

In this article, we will provide you with useful information such as is it profitable to sell on Amazon, how much money Amazon sellers make, how much time per week you need to run an online store, and when you can start.

How Much Money Do Amazon Sellers Make?

Probably the most common question and the one that people start asking first is how much they can earn. It depends on various factors, such as your effort, money invested in your online store, and your store inventory. For example, the seller who invests $1.000 in inventory is most certainly going to earn more than someone who sells used books from their home. Also, sellers who invest in promotions and software tools will earn more than someone who won’t do either of those. But let’s talk about some rough numbers.

An average monthly sales for Amazon sellers

  • Approximately 50% of Amazon sellers obtain somewhere between $1.000 and $25.000 per month.
  • One on every five sellers obtains $25.000 to $250.000 each month.
  • Nearly 20% of marketers make fewer than $1.000 per month in sales.
  • 2% of them don’t keep track of their monthly sales.

An average monthly profit margin for Amazon sellers

High-profit margins mean more significant earnings, and sellers who find products with high-profit margins run a successful business.

  • Approximately 70% of sellers obtain profit margins greater than 10%.
  • Nearly 20% of them have profit margins higher than 20%.
  • About 10% of the sellers aren’t sure of their profit margins, or their business is still in a developing phase.

How much money and time do I need to start selling on Amazon?

How much time do sellers need to invest in Amazon online store?

It depends on various factors, such as:

  • Is your store in a developing phase or it’s all set up and running smoothly
  • Do you have the experience, are you a newbie or a professional online seller
  • Do you use any software solutions for Amazon sellers
  • Do you fulfill your orders with Amazon FBA or you do everything by yourself
  • And so on.

But here are some rough numbers:

  • Around 13% of sellers devote less than 4 hours per week to their online store.
  • Approximately 24% of marketers spend 4-10 hours per week.
  • Nearly 20% of them devote up to 20 hours each week.
  • 15% of Amazon marketers spend between 20 and 30h every week.
  • Around 10% of sellers consume less than 40h each week on their Amazon business.
  • About 9% of merchants work between 40 and 50h each week.
  • Only 3% of Amazon sellers spend more than 50 but less than 60h weekly.
  • 6% of sellers work more than 60 hours per week.

How much money do you need to invest in the product inventory?

The more money you can invest, the more profit you will gain, but even if you don’t have any budget to start with, you can pull it off. If your budget is $0, you can sell used books that you don’t need, or try the flip challenge. Aldo, this won’t bring you the real profit, it can be a starting point for you. Everything you earn, invest in your product inventory, and soon you will start to make enough money that you won’t need to reinvest all of your profits.

If you have saved some money, we recommend investing at least $500, and at the most $2.500 for a start. If your products have high-profit margins and operate well on the market, you can invest even more.

With the Product Finder tool from IO Scout, you will be able to find excellent product ideas with high-profit margins, high demand, and low competition. Products like these aren’t easy to find, and without the Product Finder and several other Amazon seller tools by IO Scout, it will take days to find great product opportunities that will draw you a significant profit. Also, it’s highly recommended to check all your product ideas with the reliable data provided by IO Scout before you invest the money in products that won’t operate well on the market.

When can you start selling on Amazon?

After you create your Amazon seller’s account, you can start immediately. If you choose an Individual Seller account, you won’t be paying for any fees to Amazon for selling before selling your first product.

In case you don’t have product inventory, you can’t start selling before you find the supplier and get your inventory. But if you practice dropshipping, even with no inventory, you can list your products immediately and start selling on Amazon today. Before you choose dropshipping as your selling method, make sure you’re aware of all Amazon requirements for dropshippers.

IO Scout Product Tracker tool will help you find high-quality suppliers from more than dozens of resources to turn your product ideas to reality and start your Amazon business today. IO Scout FBA calculator for Amazon will help you to calculate product revenue and Amazon fees. Many manufacturers from China offer quality products for an excellent price, and you can find them all directly in the IO Scout Product Tracker feature.

Time is money, so don’t wait. Start your Amazon online business and start making money right away.