If you're considering being an e-commerce seller, you probably wonder if it is worth selling on Amazon. And if you're a seller on Amazon, you're probably wondering if it is worth sticking with Amazon or branching out. We are here to help! That is why we are giving you the hard facts and statistics to help you make that decision.
We will give you the statistics from the many sources we have researched and a little analysis on how that impacts you as a seller.
1. Number of Visits to Amazon is Through the Roof
Amazon had a whopping 2-3 billion visits each month in 2020. That is a lot of web traffic going through Amazon in one month. As a seller, this number is very encouraging as this amount of views can translate to considerable traffic to your product listing. If anything, you would want to list your product at least on Amazon with this kind of traffic.
2. Plenty of Amazon Mobile App Users
Not only does Amazon have many views in general, but it also has quite a large number of mobile users. 150.6 million mobile users accessed Amazon in September 2019 alone. With Walmart ranking second with only 86.05 million users, this comparison shows that Amazon is a hit among mobile users. You will gain more exposure with mobile users through Amazon than any other e-commerce app.
3. Lots of Amazon Prime Users
Jeff Bezos, the CEO of Amazon, announced that 150 million individuals are Amazon Prime subscribers as of 2019. The years before, there has been an upward trend of individuals using Amazon Prime. This large number of Prime users is good to know as Fulfilled By Amazon (FBA) is one of the most excellent perks of Amazon Prime, which is something you should consider as a seller. Amazon Prime users love their free, two-day shipping through FBA.
4. Younger Adults Are All About Amazon Prime
81% of U.S. adults in the 18-34 range use Amazon Prime. This 81% is a massive percentage of the American population that use Amazon Prime. Knowing this statistic is essential if you are trying to determine who your product target audience should be. To start, you should consider targeting young adults.
5. Amazon Customers Love Their Fast, Free Shipping
A survey shows some of the top reasons individuals shop on Amazon as follows:
79.8% Fast, free shipping.
68.9% Broad selection of items, where people feel like they can buy everything.
65.7% Individual is an Amazon Prime member.
Two out of the three of these reasons point towards Amazon FBA. Sellers can sell products through FBA to Amazon Prime users with free, 2-day shipping. With this combination being the case, it is in your best interest to make sure that your product is eligible for all those Amazon Prime subscribers for fast, free shipping through FBA.
6. As a Brand, Price Your Products Right
When it comes to customers buying from a brand on Amazon, below is the percentage of Amazon customers' biggest motivations in choosing a brand:
Having a competitive price is vital. You may be selling the same or similar product with many other Amazon sellers. This statistic shows that you will need to out beat your competition by having a comparatively lower price if you want to receive that purchase.
7. People Turn to Amazon to Buy
You might be surprised, but 74% of consumers go to Amazon when they're ready to buy a specific product. Despite their online researching efforts, a hefty 74% come back to Amazon to purchase the product they need. If you were considering selling exclusively on any other platform other than Amazon, you should reconsider.
8. The Hit Categories on Amazon
Amazon has several categories you can sell your products on. Below is a list of Amazon's highest volume selling types:
Home & kitchen goods
This list is a good hint of what niche you should consider going into when selling on Amazon. It would be wise to start trading in a category with a high percentage of sales than other classes.
9. Top Sellers Sell Top-Selling Items
You will see that the top sellers correspond with the top-selling items as follows:
18% of top sellers sell mainly in the Electronics category.
15% of top sellers sell primarily in the Clothing, Shoes & Jewellery category.
13% of top sellers sell mainly in the Home & Kitchen category.
11% of top sellers sell mainly in the Health & Household category.
This list is further affirmation that you should start selling some of the top-selling items so that your odds of sales increase instead of selling in categories with very little demand.
10. Being the First Listing on SERP Is Key
54% of all individuals who shop on Amazon daily or almost every day buy the first product listed on Amazon's search engine results pages (SERP). That's a considerable fraction of individuals purchasing the first product listed. This statistic depicts that either organically ranking as number one on the SERP or promoting your item to the top is crucial to reap high revenues. You need to hook customers that do not have the time to go through pages and pages of listings.
11. Big Amazon Ecommerce Net Sales
As of 2021, Amazon has already received over $127 billion in net e-commerce sales in a matter of months. This large number is including products sold while excluding any profits from subscriptions and fees from third-party sellers. Compared to other e-commerce platforms, Amazon's net sales volume is way bigger. Like other statistics show, you want to increase the odds of your sales by sticking with the company that has the higher revenues.
12. Decent Share of Third-Party Sellers on Amazon
In the last quarter of 2020, the third-party seller's product unit percentage share was up 55%. Year to year, this share percentage has been increasing, meaning more sellers reap the profits from selling on Amazon. This increase shows that more sellers are gaining traction on Amazon. This statistic is a good sign for current sellers and new sellers.
13. Merry Holiday Sales
During the 2020 holiday season, customers ordered more than 1 billion items from third-party sellers on Amazon, with more than 140 million items ordered between Thanksgiving and Cyber Monday. You will need to be sure that you have your listing up and are well-stocked and prepared during this holiday rush. It will be a good season for sellers.
14. Global Amazon Prime Day Sales Success
On top of the holiday season, global Amazon Prime Day is a hit as well. In 2019, Amazon reached $7.18 billion in sales on Amazon Prime Day alone. That's big sales in just a matter of two days. These significant trends during these specific periods and days are good to know so that you sell a big chunk of your inventory.
15. Amazon Dominating Online Sales
In 2019, the total e-commerce sales in the U.S. reached $602 billion. Amazon sales comprised 36.9% of all U.S. e-commerce sales during this year. This number is further proof that Amazon is dominating the e-commerce market with its lucrative profits. This statistic is further proof that you should stick to Amazon as your central e-commerce selling platform.
16. Sellers Can Make $100k+
As of 2019, 225,000 Amazon sellers are selling over $100,000 a year on Amazon alone. This statistic shows that breaking through the 6-digits in revenue on Amazon is not an impossibility for you. You have a shot at making high returns that would benefit you financially by becoming an Amazon seller.
17. Amazon Sellers Selling Big Just on Amazon
Half of all Amazon sellers receive 81% to 100% of their sales from Amazon. Many Amazon sellers are selling more exclusively on Amazon as opposed to trading on other platforms. This percentage demonstrates that Amazon is doing something right by attracting and keeping third-party sellers. These numbers are just another reason to pursue selling on Amazon.
18. Not Too Many Negative Reviews
Out of all of the reviews made on Amazon, only 4% of reviews are negative in 2020. Reviews on your listings and products are crucial as a seller, especially having many positive reviews. Positive reviews will draw in buyers. The fact that only 4% of all reviews are negative means that you don't have to worry too much about being flooded with negative reviews, which in turn can hurt your business.
19. Top Sellers Use FBA
Another significant statistic is that 66% of the top 10,000 sellers use FBA. The fact that most top sellers use FBA is an indication that you should follow suit and sell on FBA. There are several benefits from FBA that sellers enjoy, such as Amazon handling all of the products' shipments. Join the bandwagon and get the perks of FBA.
20. FBA: Sellers Like or Love It
Another tidbit about FBA is that 75% of Amazon seller respondents on a survey either like or love FBA as a seller. The fact that many Amazon sellers are pleased with using FBA is another reason you start using FBA. You'll see that individuals such as yourself find Amazon FBA great for selling their products from experience.
We've given you some helpful statistics that will direct you on deciding whether you want to start selling on Amazon or even if you're going to stick with selling on Amazon. Overall, selling on Amazon is the way to go. Here's a summary of the facts and statistics taken as a whole:
Amazon is a profitable and successful company that helps third-party sellers gain more sales than other e-commerce companies, making selling on Amazon the way to go.
Sellers should opt to use FBA when selling on Amazon.
Make sure your listings are up and running and your products are in stock during the holiday season as well as Amazon Prime Day.
A high sales volume occurs in the following categories: Electronics; Apparel; Footwear/Jewelry; Home & kitchen goods. These niches are good to consider selling in.
There is a high amount of viewers overall on the Amazon website and app, meaning that it is beneficial to sell on Amazon to receive more exposure.
Merely posting your product on the website doesn't automatically guarantee you success, however. You will need to make sure that you fully optimize your listing and your products to get the buyers, which leads to the revenues.
That is why hiring Angora Solutions for all of your Amazon solutions and product development is the way to go. We recognize the success that Amazon brings, and our experts are here to create a company for you that will reap the benefits of the Amazon selling world. Contact us today so that we can help and guide you through the Amazon selling process.