Web Retailer together with Feedvisor surveyed over 1,500 Amazon sellers a few months ago. According to their results, 9% of them made at least $1 million per year through Amazon which I’m not too surprised about. What I did find striking is that 0.6% of them sold more than $50 million per year on Amazon alone and 0.3% over $100 million per year, again alone with Amazon.
I’ve met a few people doing over $10 million a year on Amazon but $100 million? That’s big enough to be a publicly listed company. These guys that I know typically have Hong Kong companies, multiple Amazon seller accounts, and generally quite secretive about what they’re doing.
12% of the $1M+ Amazon sellers are mainly in Electronics (like myself), 16% in Home & Kitchen, 16% in Health & Beauty and 8% in Sports & Outdoors.
The majority sell in other marketplaces too. Most of the sellers are choosing Shopify (also my store of choice by far despite its many shortcomings) as their webstore. The use of a webstore is higher with $1M+ sellers. For me, I focused on growing my Amazon business first to be a cash cow before actively developing my Shopify storefront (I have a separate Shopify store for US, UK and Australia).
79% Use FBA for some or all of their sales. For me, I use FBA for most of my US sales. Unfortunately Shopify integrates directly with FBA only in the US but not in the UK. There are some third party apps for this but haven’t found any really good ones yet.
A lot of sellers use third party shipping services like Shipstation which integrates with Shopify and FBA in the US. You can also sign up for a Stamps.com account which will give you better shipping rates than FBA.
September 22, 2016
How is your amazon business going?? I’m looking for a bit more information on how to get started. I like your approach though on automation.
Have you considered releasing a course??? I’m also curious about a software called “amasuite” (http://getamasuite.com) – do you have any experience with it or have heard anything?
I appreciate your time and keep up the good work.