New Amazon sellers are earning an average of nearly $30,000 in annual profits. What does it take to start selling on Amazon, and what can new sellers do to ensure they are profitable this year? Jungle Scout’s latest report has the data.
45% of new Amazon sellers cite a desire to “be their own boss” as the top motivator to use the platform. Additionally, 41% of new sellers are looking for extra income to supplement their existing income. Many are also searching for flexibility to work from any location or to travel the world, while more than a third want to feel successful or accomplished.
Whatever the reason for selling on Amazon, it’s the primary income stream for many.
So just how much can you expect to make selling on Amazon in 2024?
The team at Jungle Scout, the leading all-in-one platform for selling on Amazon, surveyed* thousands of Amazon sellers so you can learn all you need to know about getting started selling on Amazon from those who are doing it.
Want to learn more about selling on Amazon? Check out our complete guide.
How to Sell on Amazon FBA
Now, on to the data!
How much do Amazon sellers make?
Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make more than $100,000 each month in sales. 40% of Amazon sellers make $1,000 to $25,000/month, which could mean $12,000 to $300,000 in annual sales.
Though there are a number of different methods for selling on Amazon, the most common is launching a private label product and fulfilling through Amazon’s Fulfillment-by-Amazon (FBA) program.
Like any other business, selling on Amazon will involve some expenses and fees for the seller. Part of what makes Amazon FBA so appealing is that it simplifies this process for sellers.
Simply put, you choose a product, get it to Amazon’s warehouses, set up your Amazon listing, and Amazon takes care of the rest. Then you start seeing sales and profits.
What are the average monthly sales for Amazon sellers?
Selling on Amazon can be a very lucrative business for many — more than the average side hustle.
- 19% of Amazon sellers surpass $10,000 in average monthly sales.
- 30% of Amazon sellers report sales above $5,000/month.
- 31% of sellers make under $500/month in sales when first starting out.
| Monthly | Percent of sellers |
|---|---|
| Under $500 | 31% |
| $501-$1,000 | 17% |
| $1,001 – $5,000 | 22% |
| $5,001 – $10,000 | 11% |
| $10,001 – $25,000 | 7% |
| $25,001 – $50,000 | 5% |
| $50,001 – $100,000 | 4% |
| $100,001 – $250,000 | 1% |
| $251,000 – $500,000 | 1% |
Selling on Amazon has been a viable way of building an ecommerce business for years, which attracts new Amazon sellers to the game. But that hasn’t limited their sales.
24% of SMB (small- and medium-sized businesses) Amazon sellers have reached lifetime sales of over $100,000:
- Under $25,000: 47%
- $25,001-50,000: 10%
- $50,001-100,000: 6%
- $100,001-500,000: 10%
- $500,001-1,000,000: 8%
- $1,000,001-5,000,000: 5%
- $5,000,001-10,000,000: 1%
While sales are often a strong measure of a healthy Amazon business, they don’t paint a complete picture of how much Amazon sellers make — that is, what they take home. So let’s turn to profits.
How much do Amazon sellers profit?
The higher the profit margin, the better. Small companies often struggle to achieve profitability in their first few years, but Amazon SMB sellers see healthy profit margins.
- Over half of sellers (57%) see profit margins higher than 10%.
- Better still, 28% see profit margins above 20%.
- On the other hand, 13% said their businesses are not yet profitable.
| Profit margin for SMB sellers | Percent of sellers |
|---|---|
| ~1-5% | 12% |
| 6-10% | 16% |
| 11-15% | 13% |
| 16-20% | 15% |
| 21-25% | 15% |
| 26-50% | 13% |
| 51-100% | 1% |
| Not currently profitable | 13% |
While profits change based on factors including sales volume and business expenses throughout the year, sellers weighed in on their total lifetime profits since they started their Amazon businesses.
How much money have Amazon sellers made over time?
30% of SMB sellers have reached lifetime profits of more than $50,000 — not bad for what many start as a “side hustle” — and 10% have lifetime profits between $100,000 and $500,000.
Lifetime profits:
- Under $25,000: 47%
- $25,000-50,000: 10%
- $50,001-100,000: 6%
- $100,001-500,000: 10%
- $500,001-1,000,000: 8%
- $1,000,001-5,000,000: 5%
- $5,000,000-10,000,000: 1%
- Don’t know: 13%
And for many Amazon sellers, those profits turn quickly.
How long does it take to become profitable on Amazon?
Across all respondents, the majority (58%) said they were profitable within the first year of selling.
- Profits within 3 months: 22%
- Profits within 3-6 months: 16%
- Profits within 6 months-1 year: 20%
- Profits within 1-2 years: 11%
- Profits within more than 2 years: 2%
- Don’t know: 7%
READ MORE
How to Make Money on Amazon in 2024 – 16 Top Methods
So, how do you get started selling on Amazon? We asked sellers how much money and time they invested to get their businesses up and running.
How much do you need to start selling on Amazon?
One of the biggest hurdles for people starting to sell on Amazon is the idea that it will cost them too much money. As with many things, what you put in impacts what you get out.
But that doesn’t have to mean cash — it can mean time, the necessary data to inform your decisions, or simply the will to succeed.
In fact, one quarter (25%) of Amazon sellers spent less than $1,000 to start their businesses. Overall, most sellers (64%) spent less than $5,000 to get started selling on Amazon.
- Sellers spent less than $500: 16%
- $500-1,000: 9%
- $1,001-2,500: 16%
- $2,501-5,000: 23%
- $5,001-10,000: 18%
- More than $10,000: 17%
- Don’t know: 2%
What is that money spent on? Typically, initial costs include sourcing your product (including samples), Amazon fees, and promotions. (Read more about how much it costs to sell on Amazon here.)
And where does that money come from? An overwhelming number of sellers (81%) are bootstrappers, at least partially funding their entrepreneurial endeavors with their own cash. A smaller portion of sellers (33%) borrowed money from banks, family, or other lenders.
READ MORE
Amazon FBA Fees: How They Work and How to Profit as a Seller
How much time do you need to start selling on Amazon?
Overall, Amazon sellers don’t need to spend a lot of time on their Amazon businesses. Most (71%) spend fewer than 20 hours per week.
- Fewer than 4 hours per week: 19%
- 4-10 hours: 31%
- 11-20 hours: 21%
- 21-30 hours: 12%
- 31-40 hours: 7%
- 41-50 hours: 4%
- 51-60 hours: 4%
- More than 60 hours: 3%
Nearly three-quarters (74%) of sellers were also able to launch their businesses within 6 months.
In fact, you’re likely to give more time to get your business off the ground in its early stages; after they find products to sell and create their niche, many sellers simply maintain their businesses and let the income roll in.
Is selling on Amazon profitable in 2024?
The majority of all sellers had planned to continue selling on Amazon in 2024, and 39% plan to increase their revenue and launch new products.
Amazon is an industry unto itself, and it’s irrevocably tied into so many other industries that the opportunity for sellers to find a profitable niche to sell in is massive.
While 13% of Amazon sellers are not yet profitable, most are already taking big Amazon money home — or using it to invest further in their businesses.
What does that amount to in dollars? Let’s just say it’s enough to be considered much more than “side hustle money.”
How new sellers could start making nearly $30K/year on Amazon
SMB (small to medium businesses) sellers are making an average* of $11,671 in sales each month — or $140,052 in sales per year.
Considering the average profit margin of SMB sellers, 21%, new sellers are averaging $2,451 per month or $29,412 in annual profits.
And for the 29% of sellers with profit margins of 21% and higher, they could be taking home monthly profits upwards of five figures and beyond.
A handful of new sellers are fortunate enough to be raking in incredibly high sales — upwards of $250,000 per month — $3 million per year. While these “super sellers” are outliers from the average seller, they’re certainly aspirational.
*Weighted average calculated based on reported sales by midpoint of range, and capped at the high-end range ($250K) to prevent arbitrary projection.
3 Takeaways from successful Amazon sellers for a profitable 2024
Countless have tried their hand at selling on Amazon. So what can you learn from those who’ve had distinct, measured success? Here are the top takeaways:
1. Achieve big wins in little time.
- Nearly half of sellers (48%) launched their business on Amazon within 3 months.
- 50% of sellers spend 10 hours per week or less working on their Amazon business.
What Amazon sellers say:
- “Just jump in now. Perfection is the enemy of profit.”
- “I wish I knew how important it was to start sooner. The barrier to quick trajectory seems to be higher over time.”
- “I wish I had known where to start and where to get good information.”
2. Put in the effort — it will pay off.
- 54% of sellers maintain that selling on Amazon takes some effort and is not a “get-rich-quick strategy.”
- Most sellers are still evolving their Amazon businesses, and 29% plan to add new products in the coming year.
What Amazon sellers say:
- “I need to spend more time doing product research.”
- “[You] need time.”
- “More and more analytics.”
3. Find the right resources and tools
- The primary factors sellers said contribute to their success selling on Amazon are having the time to commit to their business and having the necessary tools and information to help them.
What Amazon sellers say:
- “I wish I knew the right way to launch without burning a ton of money.”
- “I wish I knew about product research for finding ideal products.”
- “I wish I knew about the tools for selling on Amazon.”
- “I wish I knew which metrics are most important to keep track of.”
For more tips and resources, check these out:
- Million Dollar Case Study
- Sales Estimator
- FBA Calculator
If you’re ready to start selling on Amazon, consider signing up for Jungle Scout’s Freedom Builder Bootcamp! Join Jungle Scout Founder and CEO Greg Mercer on a limited bootcamp course designed to get you up and running as a seller on Amazon.
*Methodology
Between December 1, 2023 – January 3, 2024, Jungle Scout surveyed nearly 2,000 Amazon sellers and businesses, including prospective and former sellers. In total, respondents represent more than 100 countries, 20 Amazon marketplaces, and all relevant Amazon product categories. They are from ages 18 to 80+ and all genders and levels of education.
This report focuses on 1,064 first-party and third-party sellers that have at least one live product listing on Amazon. This group includes data from 916 small-to-midsize businesses and sellers earning less than $2 million in annual ecommerce revenue as well as 84 large brands and retailers earning more than $5 million in annual revenue. Comparisons made to 2023 survey data reflect responses from 824 sellers and businesses meeting the same criteria.
Respondents represent sellers’ stated perspectives and are not meant to indicate or predict actual future seller behavior. The survey was conducted in English only.
Sign up for Jungle Scout’s newsletter to make sure you don’t miss the report!
)
