The global pandemic forced many people to work from home.
Those were the luckier ones, a lot of people faced unemployment or a reduction in earnings.
It’s not surprising that a vast majority of the population was looking for alternate ways to earn money.
When looking for an income source, Amazon becomes the obvious answer.
You can sell physical products, ebooks, and even services, such as consulting advice or language teaching.
The options are virtually limitless.
Of course, Amazon isn’t a new phenomenon.
The company first started trading from Jeff Bezos’s garage in the mid-1990s.
To start with, Amazon sold books, competing against some of the biggest names in the world.
Within a few years, the company had diversified.
This was the start of the marketplace we all know today, where almost anything can be bought and sold on Amazon.
The best-sellers are those approved by Amazon and using Amazon Fulfillment.
This means your products are stocked in the Amazon warehouse and can be instantly dispatched.
It provides customers with confidence in your service.
Naturally, as the dominant force in e-commerce, everyone wants to be on Amazon.
But, just how many Amazon sellers are there, and is it worth you trying to compete?
The obvious answer is yes, Amazon had nearly 2.5 billion visitors in May 2022, that’s nearly 2.5 billion potential customers!
It’s time to take a look at the sellers, what Amazon is offering, and how you can compete on this global stage.
- There are 9.7 million registered sellers on Amazon
- There are 1.01 million Amazon FBA sellers
- 85% of Amazon sellers run a profitable business
- Nearly half of all Amazon sellers are classified as self-employed
- 14% of active sellers started due to the global pandemic
- Two-thirds of Amazon sellers are male
- 22% of sellers are concerned about Walmart
- Amazon is the most visited website in the US
- Over half of US consumers start shopping on Amazon
- Home & kitchen is the most popular seller category
How Many Amazon Sellers Are There in 2024?
1. There Are 9.7 Million Registered Sellers On Amazon
As of July 2023, Amazon records show an impressive 9.7 million businesses have registered as sellers with them.
However, registered sellers are not the same as active sellers.
That’s people who actually have listings on Amazon and are sending products and services to people in exchange for money.
According to the latest records from Amazon, there are currently 1.9 million active sellers.
The good news is that these are located across the globe and Amazon offers over 12 million products.
In short, find the right niche and you may not face too much competition.
It’s worth noting that 3,700 people join Amazon every day as sellers.
Of course, how many remain as sellers depends on how much success they have.
2. There Are 1.01 Million Amazon FBA Sellers
FBA stands for Fulfilled By Amazon. You can only get these credentials as a seller if you agree to stock your products in the Amazon warehouse.
There are specific conditions imposed by Amazon to qualify as an FBA business.
As mentioned, gaining this credential means consumers will have more confidence in you as a seller.
That makes them more likely to spend with you.
The fact that the shipping process is made simpler for you is a bonus.
Amazon reports that 1.01 million of its sellers are registered with FBA.
According to the latest statistics, the global average for sellers registered as FBA is 53.3%.
However, this can vary significantly by country.
For example, in the US 73% of sellers are FBA.
That’s the largest percentage of any country.
Australia is at the bottom end of the top ten with 33% of sellers using FBA.
Countries between the two include Spain (61%), Italy (57%), Canada (65%), Japan (55%), France (51%), Germany (46%), the UK (45%), and India (47%).
3. 85% Of Amazon Sellers Run A Profitable Business
In the physical world, it can be very difficult for new businesses to succeed.
Reports suggest 21% of startups fail within their first year of trading and 50% won’t last five years.
However, the statistics are different for Amazon sellers.
An impressive 64% of them make a profit in their first year of trading.
Furthermore, most traders will continue trading for at least five years.
As many as 85% of all Amazon sellers run profitable businesses.
Naturally, this figure changes slightly each year as some businesses struggle to keep up with economic change.
But, an impressive 44% of Amazon sellers actually performed better than expected during the Covid-19 pandemic.
A new Amazon seller is likely to create a revenue stream of between $26,000 and $810,000 in their first year! That doesn’t automatically mean they make a profit.
However, it’s worth noting that 60,000 Amazon sellers earned more than $1 million in profit for the 2021 financial year.
4. Nearly Half Of All Amazon Sellers Are Classified As Self-Employed
There are many reasons for someone to start an Amazon business.
The most obvious is to expand the reach of an existing business.
However, an increasing number of people are using Amazon in a bid to gain financial freedom.
According to the latest statistics, 42% of Amazon sellers started selling to gain financial freedom and ultimately improve the quality of their lives.
This makes it easier to understand why 47% of Amazon sellers are self-employed.
In other words, they are not selling enough to make it worthwhile becoming a company.
But, they are making a living from the site.
If you’re considering becoming an Amazon seller then knowing that the average revenue for an Amazon seller in 2022 was $200,000 is likely to help convince you.
Of course, not everyone earns that much.
5. 14% Of Active Sellers Started Due To The Global Pandemic
There is no doubt the global pandemic affected every person on the planet.
It has caused a huge shift in the way companies do business and made many individuals rethink their approach to life and work.
This has resulted in an increased number of people looking for financial independence.
Becoming an Amazon seller is one way in which financial independence is possible.
This opinion is reflected by the numbers.
According to the latest reports, 14% of Amazon sellers became sellers as a direct result of the global pandemic.
Being an Amazon seller doesn’t mean you’ll get rich quickly.
However, the average seller can see revenues of over $40,000 within two years of starting to trade.
You will need to put in the time and effort.
It is worth noting that the average price for a product on Amazon is between $11 and $25, you don’t need to charge a lot to start earning money with Amazon.
6. Two-Thirds Of Amazon Sellers Are Male
A recent survey by Jungle Scout found that 66.6% of respondents were male.
That means, just one-third of Amazon sellers are female.
There doesn’t seem to be a specific reason for Amazon being a male-dominated environment.
According to the latest research, 69% of women and 66% of men think that becoming an Amazon seller is a good way to earn a living in the future.
Alongside this, the research found that male sellers are generally younger than female sellers.
They are also more likely to see being an Amazon seller as a hobby.
However, women are better at following Amazon’s rules.
Interestingly, studies show women make a profit faster than men and get their businesses up and running faster.
What is perhaps most telling is that women generally have higher lifetime sales than men.
This is because women tend to sell on Amazon for longer than men.
7. 22% Of Sellers Are Concerned About Walmart
Amazon has been the dominant force in e-commerce for many years.
As of 2022, Amazon has a 16.9% share of the e-commerce market.
That’s slightly lower than the 18% share it had in 2022.
In contrast, Walmart has a 3.4% share.
On the face of it, this isn’t concerning.
However, Walmart is pushing hard to become one of the major players in e-commerce.
While it seems unlikely that it will cause an immediate problem for Amazon sellers, the 22% of sellers who are concerned about Walmart would be wise to continue monitoring them.
In fact, 39% of Amazon Sellers are considering opening Walmart accounts to sell as well.
That could transform the marketplace and make Walmart a more challenging force for Amazon.
8. Amazon Is the Most Visited Website In The US
If you’re deciding whether becoming an Amazon seller is a good idea or not, then consider this.
In the US, Amazon gets 2 billion visits per month.
Every one of those visitors has the potential to become your customer.
It should be noted that no other website comes close to this number of visits.
eBay sees the second-highest number of visits and they receive just 688.9 million a month.
Amazon sellers may be concerned about Walmart but it has just 388.8 million visitors a month.
Other businesses which are doing well but don’t command the audience in the same way as Amazon include Etsy (238.4 million), Target (175.7 million), and Wayfair (122.5 million).
The US market is still the biggest in the world.
The latest figures show that 38% of Amazon visits originate in the US.
9. Over Half Of US Consumers Start Shopping On Amazon
Amazon has spent years building itself up as the place to go, regardless of what you want to purchase.
It’s an approach that has paid dividends as most people think of Amazon first.
According to the latest research, 61% of consumers will look on Amazon first when looking for a specific product or inspiration.
People trust Amazon, they’ll look at what Amazon sellers are offering and then compare that to anything else they can find online.
In many cases, the look will turn into a sale.
In comparison, just 49% of people will start their search using a search engine.
32% of people will use Walmart, that’s half the number that use Amazon.
YouTube with 20% and Facebook with 19% are also popular starting points.
10. Home & Kitchen Is The Most Popular Seller Category
If you’re considering becoming a seller then you’ll need to decide which category of products you wish to sell.
It can help to know which are the most popular.
At present, 35% of Amazon sellers list items in home and kitchen, making it the most popular category.
A further 26% of sellers put things in the beauty and personal care category.
Clothing, shoes, and jewelry account for 20% of Amazon Sellers.
The list goes on, with the lowest contribution being 14% of sellers selling something in the books category.
Unsurprisingly, the most popular categories are also the ones that offer the highest profit levels.
Tips To Compete On Amazon
If you want to be an Amazon seller then you need to know how to get ahead and stay ahead of your competition.
Naturally, this starts with identifying your niche and, therefore, your competition.
There should be sellers with the same type of products available.
You can then look at what keywords they are using and target these keywords via Amazon-sponsored ads.
In other words, you’ll appear above them in the search results.
You’ll also need to monitor your competitor’s prices and adjust yours when needed.
To make sure you come off as the best option to buyers, ensure you have at least 10 glowing reviews.
The majority of buyers will read the reviews before choosing who to buy from.
If you’re already an Amazon seller or considering becoming one then you need to know the answer to how many Amazon sellers are there.
Other sellers are your competition.
However, in this instance, many of the other sellers will not be directly competing with you.
All you need to do is find the right niche and become a seller.
With hard work and a little patience, you can become a profitable Amazon seller.
Don’t forget that over half of shoppers start their product search by looking at Amazon.
If you have the product they want you can make a sale with minimal effort.
The Amazon shopping app is the most popular shopping app in the US, it has over 145 million active users, all of which are potential customers.
It’s time you signed up as an Amazon seller and started becoming financially independent.