76% of Amazon sellers are profitable, and the market is expanding

Recently, foreign software company Jungle Scout surveyed more than 3,500 Amazon sellers from 20 markets. The survey showed that although some sellers’ businesses have been interrupted due to supply chain problems and the continued impact of the epidemic , 75% of sellers still said they would be profitable in early 2022 .

The survey showed that 45% of Amazon sellers said that their profits increased from 2020 to 2021 , despite some consumers returning to physical stores . However, 30% of Amazon sellers said that their sales losses exceeded $10,000 due to supply chain issues in 2021.

In the new year, many sellers have formulated growth plans for 2022. More than half of them sell on multiple platforms , and more sellers plan to expand both the market and business this year . Among them, the United States and Europe are still the main markets for expansion. It is worth noting that Mexico is also one of the important markets that sellers intend to expand .

In terms of possible business expansion, sellers believe that home and kitchen , beauty and personal care , toys and games , clothing, shoes and jewelry , home and baby care , etc. are the most suitable categories for Amazon sellers.

In addition, Amazon's advertising costs are also a focus of this article. Advertising is an important way for sellers to promote their products. Although it costs a lot, many sellers still invest huge costs.

Among the sellers participating in the survey, 5% of sellers spend an average of less than or equal to $2,500 on Amazon advertising . One-third of sellers plan to increase advertising spending in 2022. Among them, Amazon sponsored product ads, Facebook, Google ads, etc. are all on the list of sellers' most popular marketing investments.  

Although the results of this survey show that the Amazon sellers participating in the survey ushered in new growth in early 2022, they also face many challenges, such as increased inventory and shipping costs for order fulfillment , price drops , and increased advertising costs .

Overall, whether it is this survey or the actual situation, the development of Amazon sellers is generally positive. Even though many sellers have encountered a series of Amazon incidents in 2021, it has to be admitted that in terms of seller settlement rate and influence, Amazon still has a clear leading advantage and has always been the preferred platform for sellers and buyers.

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