In multiple surveys conducted by Web Retailer, Amazon sellers have revealed a number of secrets pertaining to their own selling experience, how much money they make and how they found a lasting career on the marketplace. So Amazon startups, pay attention.
Most Amazon Sellers have Markups of as Much as 50%
According to the survey:
- 32% of Amazon sellers have a profit markup of between 25 – 50% – which is huge by any standard.
- 55% sellers have a definite margin of more than 25% in their Amazon business.
- Perhaps most surprisingly, a whopping 45% of sellers making more than a million dollars have lower profit margins – between 10% – 25%. This is perhaps because they have a lot more products.
72% Sellers Aren’t Using an Amazon Tool
- A huge number of sellers – 72.4% to be exact – don’t use a marketplace management tool.
- Incidentally, Web Retailer claims that these are usually newbies and startups – since the biggest Amazon sellers can’t do without a software.
- If you’ve just joined amazon (or are looking to) sign up with AMZInsight, a reliable Amazon software for research and management.
85% Sellers Don’t Regret Using an Amazon Software
- Only 14.6% sellers aren’t satisfied with their market research tool.
- Web Retailer claims that a tool’s “duty is to preserve a solitary “source of truth” databank for a vender’s products, and coordinate that information with several marketplaces in countries like UK, USA, Canada, Australia and the like.”
89% of $1M+ Sellers Employ Amazon Solutions
- Apart from that, 68% of all sellers use some form of software while selling on Amazon.
- A total of 40% of all sellers plan to use more software.
Over 50% Sellers are looking for New Software
Here’s what they want:
- Inventory management tools are popular with experienced sellers who have too many products to self-manage.
- Amazon startups want channel management software, especially management tools that don’t cost a dime.
- Feedback and order management are also popular with startups.
Home, Kitchen and Electronics are Popular with $1M+ Sellers
- Amazon’s favorite category – books – have the least number of million-dollar sellers.
- ‘Electronics’ and ‘Home & Kitchen’ remain the categories with the richest sellers – as is the case worldwide in online retail.
- Millionaire sellers dominate the ‘Electronics’ category so as a startup, you should avoid it. If you want to get into it, make sure you sell a unique product.
