Whether you’re an ecommerce pro or a complete beginner, you’ve definitely heard of Amazon. Amazon is an online commerce powerhouse, especially in the US, where it holds the largest share of ecommerce, capturing around 37.6% of the market.
Starting your own Amazon business comes with a lot of advantages. But, since Amazon is arguably the most popular online marketplace in the world, you’ll need time, patience, and, most importantly, a good business strategy.
In this blog, we’ll take a look at what it takes to become a successful Amazon seller. We’ll evaluate the pros and cons of running your online business on the largest online marketplace in the world, and answer the question every new Amazon seller asks themselves: is selling on Amazon worth it?
So, if you plan to start an online business as an Amazon seller, you’ve come to the right place. Whether you want to sell print-on-demand products, do Amazon dropshipping, or just want to know how to sell t-shirts on Amazon, this article will help you figure out if Amazon is the right fit for your online store.
Selling on Amazon in 2024
Legend has it that when the ecommerce giant was founded in 1994, Jeff Bezos chose the name Amazon to represent his vision for the company being as vast as the Amazon River.
To say he was successful would be an understatement—when it comes to the online retail space, Amazon is the undisputed top dog.
Source: Unsplash
In 2023, Amazon’s total revenue reached an impressive $575 billion, an increase from $514 billion the previous year. That is roughly $1.6 billion in revenue every day—which means Amazon processes around 20 orders every second.
Sounds pretty busy, we know.
How can you start selling on Amazon?
If you want to sell trending products without worrying about order fulfillment, shipping, or inventory management, you have several options. You can either use the Amazon FBA service or sell print-on-demand products with a third-party provider like Printful. Let’s take a quick look at how each of these works.
Fulfillment by Amazon (FBA)
Amazon FBA, also known as Fulfillment by Amazon, is a service that allows Amazon sellers to outsource order fulfillment and shipping to Amazon.
Here’s how it works: You send your products to Amazon fulfillment centers. Amazon will store your products, and once there’s an item sold, they’ll pack and ship out the order. They’ll also take care of customer service and returns.
Source: Amazon
Printful
If you want something simpler, you can also go with a print-on-demand provider like Printful. Unlike Amazon FBA, you won’t have to go through the hassle of sending your products to Amazon’s fulfillment centers. Printful will print, pack, and ship out your orders, allowing you to focus on your selling and marketing strategies.
Want to know more about how to sell print-on-demand on Amazon with Printful? Check out our video!
Is selling on Amazon worth it in 2024?
Yes, selling on Amazon is still worth it. In 2023, Amazon was the most visited ecommerce marketplace globally. That means selling on Amazon can get you the kind of brand visibility you won’t find anywhere else.
In fact, according to research by Jungle Scout, 56% of consumers across all generations begin their product searches on Amazon—it’s almost as though Amazon is its own search engine.
People begin their product searches on Amazon more often than on social media sites like YouTube or Facebook, other online retailers like Walmart and Target, or a search engine like Google. So, if you want to get eyes on your products, Amazon is the place to be.
Source: Jungle Scout
Can you actually make money selling on Amazon?
Yes, you can make money selling on Amazon. In fact, most Amazon sales come from independent sellers. According to Amazon, 60% of its sales come from third-party sellers—generally, these are small and medium-sized businesses.
Let’s take a look at the stats of how much Amazon sellers make in sales revenue. 40% of Amazon sellers sell anywhere from $1,000 to $25,000 a month. 30% of Amazon sellers make more than $5,000 every month, and a further 31% make less than $500 a month in sales.
Many factors will impact your net profit, like product fulfillment cost and extra expenses like FBA fees. But the most important factor will be your selling price.
Make sure you’re smart about your profit margins. A healthy profit margin is estimated from 15%–20%, but if you go below 8%, you might end up hurting your business in the long run.
Valuable read: How to Make Money on Amazon: 5 Best Ways
What is the success rate of Amazon sellers?
New sellers who choose to start an Amazon FBA business have a pretty good chance of succeeding. 64% of new Amazon sellers start to make a profit during the first year of running their store. Typically, Amazon sellers will become profitable within 3–6 months, with only 2% of sellers taking more than 2 years to turn a profit.
So, if you’re still wondering—is selling on Amazon worth it? The answer is a resounding Yes. Whether you become an Amazon FBA seller or sell products with print-on-demand, you have a high chance of becoming profitable within your first year.
But, remember that everything depends on what and how you sell. It’s important that you do your research and find a niche that isn’t oversaturated with sellers. And it’s equally important that you know the pros and cons of selling on Amazon, and learn how to make the most of the opportunities that the Amazon marketplace offers.
Pros of selling on Amazon
Alright, we’ve gone over some of the big questions. But what are the actual advantages if you decide to start an Amazon store? Let’s go through the main benefits of doing business on Amazon’s platform.
Large built-in audience
First and foremost, Amazon has the kind of audience and reach you won’t find on other ecommerce platforms. While it’s hard to determine the exact number of users because Amazon doesn’t release detailed stats about its online shoppers, it’s estimated that the ecommerce giant has around 310 million users globally.
Plus, over the past month, the Amazon marketplace received around 2.3 billion visits, making it the most visited ecommerce site according to Similarweb. This means that if you start selling on Amazon, you’ll have access to a loyal built-in audience, and you might be able to get eyes on your products without spending a ton of money on marketing campaigns.
No hassles with logistics
Logistics can make or break your Amazon business, even if you’re selling a high-quality product. That’s why working with Amazon FBA or a print-on-demand provider like Printful can make things much easier for you.
Having someone take care of product manufacturing, customer service, as well as packing and shipping products will allow you to focus on business operations and your selling plan. It’ll also significantly decrease your business expenses—you won’t need to pay for a warehouse or hire extra staff for stock management or customer support.
Global shipping
Another big plus for selling with Amazon FBA is the global reach your store will have because of Amazon’s large supply chain. As an Amazon FBA seller, your products will automatically be eligible for Amazon Prime free two-day shipping, and your shipping costs will be lower.
Fast shipping will be a major bonus for your business—studies show that customers increasingly expect quick shipping times. One study found that when online shopping, 62% of consumers expect their free shipping orders to arrive within the next 3 days.
Cons of selling on Amazon
As a new seller, you’ll inevitably run into some setbacks. Let’s go over some potential drawbacks of selling on Amazon that you need to keep in mind when you’re just starting out.
Expensive service fees
If you’re new to the ecommerce game, you need to be mindful of Amazon fees that come with selling your products on the platform—they can really stack up and eat into your profits.
When starting your Amazon selling journey, you’ll first need to choose a seller plan—most sellers opt for the Professional selling plan, which offers more ecommerce options and costs $39.99 a month. You’ll also have to pay referral fees for every item you sell. Head over to Amazon Seller Central to learn more about Amazon selling fees.
If you plan to sell with Amazon FBA, there are various FBA fees to consider in addition to the selling charge and referral fee. You’ll have to pay shipping fees, fulfillment fees, a monthly inventory storage fee, inventory removal and disposal fees, and more.
Intense competition
Another challenge will be the intense competition. Because Amazon is so popular, everybody wants a piece of the ecommerce pie, so you’ll have to work hard to stand out.
Amazon doesn’t release specific numbers on how many merchants sell on the Amazon website, but it’s estimated that the number could be around 9 million sellers. To put things in perspective—Shopify, a popular ecommerce platform, hosts roughly 2+ million merchants, while Etsy, another ecommerce giant, has just around 7 million sellers. What does this mean? You’ll have to work extra hard to get noticed on Amazon.
How can you make your store stand out? You can start with finding a solid niche for your brand. This will make your products worth selling. If you’re not sure how to find your niche or build a strong brand, you can check out our Printful Academy course on how to build a brand for your business.
Amazon FBA inventory requirements
The Amazon FBA program will make your life significantly more manageable in the sense that you won’t have to think about shipping and customer service. However, you’ll have to adhere to Amazon’s requirements when sending your products to their warehouses.
This can get tricky—you’ll have to make sure your products are packaged, labeled, and shipped according to Amazon warehousing guidelines. If this sounds like it might be too time-consuming for your taste and you don’t want any hassle managing your inventory, you should opt for a third-party print-on-demand provider like Printful.
Like Amazon FBA, working with Printful will give you access to international order fulfillment and customer returns. But, since Printful prints, packs, and ships out all orders in-house, you won’t have to go through the extra step of sending your products to an Amazon warehouse.
Who is selling on Amazon best for?
Amazon will be great for sellers who want to conduct multi-channel business because the platform offers great options for cross-channel selling. For example, Amazon’s Multi-Channel Fulfillment allows you to sell your products in off-Amazon channels like BigCommerce or eBay, while still using the Amazon fulfillment network.
Source: Amazon
So, you can easily run your own website powered by an ecommerce platform and still sell on Amazon as your secondary channel.
Stay on top of ecommerce trends with Printful
Want to be a successful seller on Amazon? Start keeping up with ecommerce industry news and trends. Staying in the loop about what’s hot and what’s not will do more than just help you create trending product designs.
It’ll help you map the industry landscape for your niche. You’ll get a better sense of what your marketing campaigns should look like, what kind of products you should sell, and even what product price you should set.
If you’re looking for ecommerce news and tips, you can subscribe to the Printful blog. On our blog, you’ll find useful articles about the latest design, marketing, and business trends, as well as advice on how to break into new ecommerce platforms or run your own website.
Source: Printful
And if you’ve decided to work with print-on-demand, make sure to check out our YouTube channel. We have a ton of tutorials on how to get started with print-on-demand.
Ready to start selling on Amazon?
Is it worth selling on Amazon? Absolutely. But it’s important to take the right steps when you’re starting out:
Make sure to do thorough product research before you decide on what you want to sell
Take a look at what product categories are in demand and which categories are oversaturated
Make note of who your main competitors are and keep track of what they’re up to
When you’re just starting out, the most important thing is to arm yourself with patience and perseverance. Your store won’t become profitable in one week—it’ll take several months of work, research, and belief in yourself and your product.
Alright, that’s all from us. Was this article helpful? If you have any questions about selling on Amazon, please comment below!
Good luck on your Amazon seller’s journey!
Learn the pros, cons, and strategies for starting a successful business on the world’s largest marketplace.
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
