New Amazon sellers earn 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 for using the platform. Additionally, 41% of new sellers are looking for additional income to supplement their existing income. Many also seek the flexibility to work from any location or to travel the world, while more than a third want to feel successful or accomplished.
Regardless of the reason for selling on Amazon, it is the primary income stream for many.
So how much can you expect to earn 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 everything you need to know about getting started selling on Amazon from them , who do it.
Want to know more about selling on Amazon? Check out our complete guide.
Now for the data!
How Much Do Amazon Sellers Make?
Most Amazon sellers make at least $1,000 a month in sales, and some super sellers make more than $100,000 a month in sales. 40% of Amazon sellers earn $1,000 to $25,000/month, which can mean $12,000 to $300,000 in annual sales.
Although there are a number of different methods of selling on Amazon, the most common is to launch a private label product and fulfill 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.
In short, you choose a product, get it to Amazon warehouses, set up your Amazon listing, and Amazon takes care of the rest. So 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 exceed $10,000 in average monthly sales.
- 30% of Amazon sellers report sales over $5,000/month.
- 31% of sellers make less than $500/month in sales when they first start.
| Monthly | Percentage 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 to build an e-commerce business for years, attracting new Amazon sellers to the game. But that hasn’t limited their sales.
24% of SMB (Small and Medium Business) Amazon sellers have achieved 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 earn—that is, what they take home. So let’s turn to profits.
How Much Do Amazon Sellers Make?
The higher the profit margin, the better. Small businesses often struggle to achieve profitability in their first few years, but Amazon SMB sellers are seeing healthy profit margins.
- Over half of sellers (57%) see profit margins in excess of 10%.
- Even better, 28% see profit margins above 20%.
- On the other hand, 13% said their businesses are not yet profitable.
| Profit margin for SMB sellers | Percentage 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 have weighted their total lifetime profits since starting their Amazon businesses.
How Much Money Have Amazon Sellers Made Over Time?
30% of SMB sellers have achieved 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 profit:
- 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 around 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 the sale.
- Profit within 3 months: 22%
- Profit within 3-6 months: 16%
- Profit within 6 months-1 year: 20%
- Profit within 1-2 years: 11%
- Profit within more than 2 years: 2%
- Don’t know: 7%
So how do you get started selling on Amazon? We asked the 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 obstacles 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 affects what you get out.
But that doesn’t have to mean cash – it can mean time, the data needed to inform your decisions, or simply the will to succeed.
In fact, a 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, startup costs include purchasing 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 money. A smaller proportion of the sellers (33%) borrowed money from banks, family or other lenders.
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 less than 20 hours a 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%
Almost three quarters (74%) of sellers were also able to launch their businesses within 6 months.
In fact, you’ll probably want to allow 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 is irrevocably tied to so many other industries that the opportunity for sellers to find a profitable niche to sell in is enormous.
While 13% of Amazon sellers are not yet profitable, most are already taking home big Amazon cash – or using it to further invest in their businesses.
What does it amount to in dollars? Let’s just say it’s enough to be considered much more than “sidehustle money.”
How New Sellers Could Start Making Almost $30,000 a Year on Amazon
SMB (small to medium sized business) sellers earn an average* of $11,671 in sales each month – or $140,052 in sales per year.
Considering the average profit margin for SMB sellers, 21%, new sellers average $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 take home monthly profits of up to five figures and more.
A handful of new sellers are lucky enough to make incredibly high sales – upwards of $250,000 per month – $3 million per year. Although these “super salespeople” are deviants from the average salesperson, they are certainly hopeful.
*Weighted average calculated based on reported mid-range sales, and limited to high-end range ($250K) to prevent arbitrary projection.
3 Takeaways from Successful Amazon Sellers for a Profitable 2024
Countless people have tried selling on Amazon. So what can you learn from those who have had clear, measured success? Here are the best takeaways:
1. Achieve big gains in a short time.
- Almost half of sellers (48%) launched their business on Amazon within 3 months.
- 50% of sellers spend 10 hours a 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 earlier. The barrier to fast track seems to be higher over time.”
- “I wish I had known where to start and where to get good information.”
2. Make an effort – it will pay off.
- 54% of sellers claim that selling on Amazon takes some effort and is not a “get-rich-quick strategy.”
- Most sellers are still developing their Amazon businesses, and 29% plan to add new products in the coming year.
What Amazon sellers say:
- “I need to spend more time on product research.”
- “[You] need time.”
- “More and more analysis.”
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 to find ideal products.”
- “I wish I knew about the tools to sell on Amazon.”
- “I wish I knew which metrics are most important to track.”
For more tips and resources, check these out:
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.
* Method
Between December 1, 2023 – January 3, 2024, Jungle Scout surveyed nearly 2,000 Amazon sellers and businesses, including potential and former sellers. In total, respondents represent more than 100 countries, 20 Amazon marketplaces, and all relevant Amazon product categories. They are from 18 to 80+ and all genders and education levels.
This report focuses on 1,064 first-party and third-party sellers who have at least one product listing on Amazon. This group includes data from 916 small to medium-sized businesses and sellers that earn less than $2 million in annual e-commerce revenue, as well as 84 large brands and retailers that earn more than $5 million in annual revenue. Comparisons made with 2023 survey data reflect responses from 824 sellers and businesses that meet the same criteria.
Respondents represent sellers’ stated perspectives and are not intended to indicate or predict actual future seller behavior. The survey is only conducted in English.
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