GITNUX REPORT 2024

Key Amazon Third-Party Seller Statistics Revealed: Sales, Demographics, Strategies

Amazon third-party sellers thrive, with over half of sales; average seller makes $11,671 monthly.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

59% of Amazon third-party sellers use private label as their primary business model

Statistic 2

26% of Amazon third-party sellers use wholesale as their primary business model

Statistic 3

17% of Amazon third-party sellers use retail arbitrage as their primary business model

Statistic 4

8% of Amazon third-party sellers use dropshipping as their primary business model

Statistic 5

7% of Amazon third-party sellers use handmade products as their primary business model

Statistic 6

51% of Amazon third-party sellers sell only on Amazon

Statistic 7

49% of Amazon third-party sellers sell on other platforms in addition to Amazon

Statistic 8

The average Amazon third-party seller has 5 product listings

Statistic 9

61% of Amazon third-party sellers source products from China

Statistic 10

27% of Amazon third-party sellers source products from the United States

Statistic 11

14% of Amazon third-party sellers manufacture their own products

Statistic 12

53% of Amazon third-party sellers use Alibaba to source products

Statistic 13

32% of Amazon third-party sellers use domestic wholesalers to source products

Statistic 14

The average Amazon third-party seller launches 5 new products per year

Statistic 15

74% of Amazon third-party sellers plan to expand their product lines in the next year

Statistic 16

38% of Amazon third-party sellers have their own e-commerce website

Statistic 17

52% of Amazon third-party sellers use Amazon's Brand Registry

Statistic 18

41% of Amazon third-party sellers have registered trademarks

Statistic 19

28% of Amazon third-party sellers have patents

Statistic 20

72% of Amazon third-party sellers plan to expand to new marketplaces in the next year

Statistic 21

44% of Amazon third-party sellers plan to sell on Walmart.com

Statistic 22

37% of Amazon third-party sellers plan to sell on Shopify

Statistic 23

32% of Amazon third-party sellers plan to sell on eBay

Statistic 24

The average Amazon third-party seller makes $11,671 in monthly sales

Statistic 25

66% of Amazon third-party sellers are profitable within their first year

Statistic 26

85% of Amazon third-party sellers are profitable as of 2021

Statistic 27

The average profit margin for Amazon third-party sellers is 10%

Statistic 28

33% of Amazon third-party sellers started with less than $1,000 in initial investment

Statistic 29

20% of Amazon third-party sellers make over $1 million in annual sales

Statistic 30

The average Amazon third-party seller spends $3,836 on startup costs

Statistic 31

89% of Amazon third-party sellers are profitable within 2 years

Statistic 32

The average Amazon third-party seller has a 16% profit margin

Statistic 33

67% of Amazon third-party sellers achieve profitability within the first year

Statistic 34

24% of Amazon third-party sellers use accounting software

Statistic 35

18% of Amazon third-party sellers use tax software

Statistic 36

39% of third-party sellers on Amazon use FBA (Fulfillment by Amazon)

Statistic 37

59% of Amazon third-party sellers have experienced stockouts

Statistic 38

34% of Amazon third-party sellers use inventory management tools

Statistic 39

Over 50% of Amazon's total unit sales come from third-party sellers

Statistic 40

Third-party sellers account for 58% of Amazon's total sales

Statistic 41

68% of Amazon third-party sellers use Amazon PPC advertising

Statistic 42

42% of Amazon third-party sellers use social media marketing

Statistic 43

31% of Amazon third-party sellers use email marketing

Statistic 44

23% of Amazon third-party sellers use influencer marketing

Statistic 45

19% of Amazon third-party sellers use Amazon Live

Statistic 46

63% of Amazon third-party sellers use repricing tools

Statistic 47

47% of Amazon third-party sellers use product research tools

Statistic 48

39% of Amazon third-party sellers use keyword research tools

Statistic 49

29% of Amazon third-party sellers use feedback management tools

Statistic 50

There are over 9.7 million Amazon third-party sellers worldwide

Statistic 51

1.9 million active sellers are on Amazon

Statistic 52

44% of Amazon third-party sellers are based in the United States

Statistic 53

73% of Amazon third-party sellers run their business from home

Statistic 54

56% of Amazon third-party sellers are men

Statistic 55

44% of Amazon third-party sellers are women

Statistic 56

67% of Amazon third-party sellers are between 25 and 44 years old

Statistic 57

The average Amazon third-party seller has 7 employees

Statistic 58

54% of Amazon third-party sellers have a college degree or higher

Statistic 59

62% of Amazon third-party sellers have been selling for more than two years

Statistic 60

The average Amazon third-party seller spends 20 hours per week on their business

Statistic 61

64% of Amazon third-party sellers work on their business part-time

Statistic 62

36% of Amazon third-party sellers work on their business full-time

Statistic 63

92% of Amazon third-party sellers plan to continue selling on Amazon in the future

Statistic 64

76% of Amazon third-party sellers are satisfied with selling on Amazon

Statistic 65

42% of Amazon third-party sellers have had products hijacked by other sellers

Statistic 66

36% of Amazon third-party sellers have had their accounts suspended

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Summary

  • Over 50% of Amazon's total unit sales come from third-party sellers
  • Third-party sellers account for 58% of Amazon's total sales
  • There are over 9.7 million Amazon third-party sellers worldwide
  • 1.9 million active sellers are on Amazon
  • 44% of Amazon third-party sellers are based in the United States
  • 39% of third-party sellers on Amazon use FBA (Fulfillment by Amazon)
  • The average Amazon third-party seller makes $11,671 in monthly sales
  • 66% of Amazon third-party sellers are profitable within their first year
  • 85% of Amazon third-party sellers are profitable as of 2021
  • The average profit margin for Amazon third-party sellers is 10%
  • 62% of Amazon third-party sellers have been selling for more than two years
  • 73% of Amazon third-party sellers run their business from home
  • 56% of Amazon third-party sellers are men
  • 44% of Amazon third-party sellers are women
  • 67% of Amazon third-party sellers are between 25 and 44 years old

Move aside, Amazon — its time to shine the spotlight on the real stars of the show: third-party sellers. Did you know that these industrious folks are responsible for over half of Amazons total unit sales and a whopping 58% of its total sales revenue? With over 9.7 million of them scattered across the globe, its clear that the world of e-commerce is truly their oyster. From home-based hustlers to million-dollar moguls, these statistics paint a colorful picture of the diverse entrepreneurs shaping the online marketplace. So sit back, grab your favorite Amazon purchase, and lets dive into the fascinating world of Amazon third-party sellers.

Business Models

  • 59% of Amazon third-party sellers use private label as their primary business model
  • 26% of Amazon third-party sellers use wholesale as their primary business model
  • 17% of Amazon third-party sellers use retail arbitrage as their primary business model
  • 8% of Amazon third-party sellers use dropshipping as their primary business model
  • 7% of Amazon third-party sellers use handmade products as their primary business model
  • 51% of Amazon third-party sellers sell only on Amazon
  • 49% of Amazon third-party sellers sell on other platforms in addition to Amazon
  • The average Amazon third-party seller has 5 product listings
  • 61% of Amazon third-party sellers source products from China
  • 27% of Amazon third-party sellers source products from the United States
  • 14% of Amazon third-party sellers manufacture their own products
  • 53% of Amazon third-party sellers use Alibaba to source products
  • 32% of Amazon third-party sellers use domestic wholesalers to source products
  • The average Amazon third-party seller launches 5 new products per year
  • 74% of Amazon third-party sellers plan to expand their product lines in the next year
  • 38% of Amazon third-party sellers have their own e-commerce website
  • 52% of Amazon third-party sellers use Amazon's Brand Registry
  • 41% of Amazon third-party sellers have registered trademarks
  • 28% of Amazon third-party sellers have patents
  • 72% of Amazon third-party sellers plan to expand to new marketplaces in the next year
  • 44% of Amazon third-party sellers plan to sell on Walmart.com
  • 37% of Amazon third-party sellers plan to sell on Shopify
  • 32% of Amazon third-party sellers plan to sell on eBay

Interpretation

In the vibrant ecosystem of Amazon third-party sellers, the numbers tell a tale of diverse business models and strategic approaches. With nearly 60% opting for the allure of private label, it seems creativity and branding are king in this digital marketplace. Meanwhile, the 51% selling exclusively on Amazon might be seen as the committed loyalists, while the 49% venturing onto other platforms are the adventurous souls seeking new horizons. As the average seller juggles 5 products and sources mainly from China, the global marketplace dance continues to evolve. With patents, trademarks, and ambitions to conquer new marketplaces, these sellers are not just navigating but shaping the digital retail landscape with a mix of savvy, ambition, and perhaps a touch of entrepreneurial flair.

Financial Performance

  • The average Amazon third-party seller makes $11,671 in monthly sales
  • 66% of Amazon third-party sellers are profitable within their first year
  • 85% of Amazon third-party sellers are profitable as of 2021
  • The average profit margin for Amazon third-party sellers is 10%
  • 33% of Amazon third-party sellers started with less than $1,000 in initial investment
  • 20% of Amazon third-party sellers make over $1 million in annual sales
  • The average Amazon third-party seller spends $3,836 on startup costs
  • 89% of Amazon third-party sellers are profitable within 2 years
  • The average Amazon third-party seller has a 16% profit margin
  • 67% of Amazon third-party sellers achieve profitability within the first year
  • 24% of Amazon third-party sellers use accounting software
  • 18% of Amazon third-party sellers use tax software

Interpretation

Amazon third-party sellers are redefining the e-commerce game with their savvy business acumen and ability to turn a profit faster than you can say "two-day shipping." With a tumultuous journey on the path to profitability, these sellers are proving that success can come in all shapes and sizes, from the humble beginnings of a $1,000 initial investment to the staggering heights of over $1 million in annual sales. As they balance their profit margins like high-wire artists and navigate the treacherous waters of startup costs, these sellers are truly the unsung heroes of the online marketplace. So next time you click "Add to Cart," remember that behind that product there's a resilient entrepreneur making their mark in the digital world.

Fulfillment Methods

  • 39% of third-party sellers on Amazon use FBA (Fulfillment by Amazon)
  • 59% of Amazon third-party sellers have experienced stockouts
  • 34% of Amazon third-party sellers use inventory management tools

Interpretation

In the jungle of e-commerce, Amazon third-party sellers swing between convenience and chaos. With nearly 40% opting for the luxury of Amazon's FBA service, it's clear they like to keep their hands free for higher-level strategizing. However, a staggering 59% of them have also danced the dangerous stockout dance, facing the dreaded "out of stock" sign that can turn a seller's worst nightmare into reality. To navigate this jungle, only a cautious 34% choose to wield the sword of inventory management tools, perhaps wary of the sharp-toothed beasts lurking in the shadows of fluctuating demand. Ultimately, in the competitive realm of online retail, success often hinges on harnessing the perfect balance of outsourcing, foresight, and courage to thrive amidst the chaos of the Amazonian marketplace.

Market Share

  • Over 50% of Amazon's total unit sales come from third-party sellers
  • Third-party sellers account for 58% of Amazon's total sales

Interpretation

Amazon's third-party sellers are more than just the Robin to Amazon's Batman - they're more like the sidekick who suddenly realizes they can do just as much crime-fighting on their own. With over 50% of total unit sales and a whopping 58% of total sales attributed to third-party sellers, it's clear that these underdogs have become the heavyweight champions of the e-commerce world. So, next time you buy that quirky dinosaur-shaped tea infuser or the latest must-have gadget, remember that it might just be the brainchild of one of these unsung heroes of the digital marketplace.

Marketing Strategies

  • 68% of Amazon third-party sellers use Amazon PPC advertising
  • 42% of Amazon third-party sellers use social media marketing
  • 31% of Amazon third-party sellers use email marketing
  • 23% of Amazon third-party sellers use influencer marketing
  • 19% of Amazon third-party sellers use Amazon Live
  • 63% of Amazon third-party sellers use repricing tools
  • 47% of Amazon third-party sellers use product research tools
  • 39% of Amazon third-party sellers use keyword research tools
  • 29% of Amazon third-party sellers use feedback management tools

Interpretation

In the labyrinthine world of Amazon third-party sellers, it seems that everyone is trying to crack the code to success, armed with an arsenal of tools and strategies. From the savvy 68% utilizing Amazon PPC advertising to the daring 23% dabbling in influencer marketing, it's a battlefield out there. With 63% wielding repricing tools like seasoned warriors and 47% embarking on product research expeditions, it's clear that this is not a game for the faint of heart. So, whether you're a strategic mastermind relying on keyword research tools or a feedback aficionado honing your craft, one thing is certain – in this cutthroat jungle, only the fierce survive.

Seller Demographics

  • There are over 9.7 million Amazon third-party sellers worldwide
  • 1.9 million active sellers are on Amazon
  • 44% of Amazon third-party sellers are based in the United States
  • 73% of Amazon third-party sellers run their business from home
  • 56% of Amazon third-party sellers are men
  • 44% of Amazon third-party sellers are women
  • 67% of Amazon third-party sellers are between 25 and 44 years old
  • The average Amazon third-party seller has 7 employees
  • 54% of Amazon third-party sellers have a college degree or higher

Interpretation

With over 9.7 million Amazon third-party sellers around the globe, it's clear that the world of e-commerce is booming. From the 1.9 million active sellers tirelessly navigating the digital marketplace to the 73% running their businesses from the comfort of their homes, it's a true testament to the entrepreneurial spirit. And who said e-commerce was a man's world? With 44% women making their mark as sellers, it's evident that the digital landscape is diverse and inclusive. With the average seller juggling 7 employees and 54% boasting a college degree or higher, it's clear that Amazon is not just a platform; it's a thriving ecosystem of innovation and opportunity.

Seller Experience

  • 62% of Amazon third-party sellers have been selling for more than two years
  • The average Amazon third-party seller spends 20 hours per week on their business
  • 64% of Amazon third-party sellers work on their business part-time
  • 36% of Amazon third-party sellers work on their business full-time
  • 92% of Amazon third-party sellers plan to continue selling on Amazon in the future
  • 76% of Amazon third-party sellers are satisfied with selling on Amazon
  • 42% of Amazon third-party sellers have had products hijacked by other sellers
  • 36% of Amazon third-party sellers have had their accounts suspended

Interpretation

In a true capitalist jungle, Amazon third-party sellers are the modern-day adventurers, navigating through the treacherous waters of e-commerce. With 62% of them boasting a survival rate of more than two years, these seasoned warriors dedicate a humble 20 hours per week to their trade, with 64% bravely juggling it part-time, while the resilient 36% dive headfirst into the deep end as full-time warriors. Despite facing the occasional ambush - with 42% falling victim to product hijacking and 36% enduring the dreaded account suspension - the majority remain steadfast in their commitment, as 92% defiantly plan to continue their conquest on Amazon's battleground. With 76% reporting satisfaction in their Amazonian endeavors, these sellers prove that in the realm of online commerce, it's not just survival of the fittest but also of the most determined.

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