It is learned that JungleScout recently released the latest report "The State of Amazon Sellers in 2022" , which analyzed the annual sales data of 3,500 Amazon third-party sellers and discussed the development strategies of third-party sellers on Amazon.
Below, the editor will introduce from four aspects: seller profitability, future growth plans, development status and challenges to be faced, to help sellers fully understand the latest industry trends and prepare for 2022. Amazon Seller Profitability In 2021, 30% of Amazon sellers reported a loss of more than $10,000 in sales due to severe supply chain disruptions caused by the ongoing COVID-19 pandemic . However, 45% of Amazon sellers said their profits increased from 2020 to 2021. As we enter 2022, even though some consumers are beginning to return to physical retail stores, 75% of Amazon sellers are still profitable. In addition, according to JungleScout data, the income of Amazon sellers is basically proportional to the time they have been in business: 63% of sellers are profitable within one year of starting their business on Amazon; 25% of sellers who have been doing business on Amazon for 2 years or less have annual e-commerce revenue exceeding $100,000 ; 60% of sellers who have been doing business on Amazon for more than 3 years have annual e-commerce revenue exceeding $100,000 . The report shows that 95% of sellers plan to expand their Amazon business in 2022, including expanding product lines, expanding sales and marketing channels, etc. Amazon sellers’ planned expansion strategies in 2022 include: 1. Launch products and expand product lines The categories that most sellers choose to expand include: 2. Invest in advertising and try new marketing strategies Currently, 85% of sellers spend $2,500 or less on advertising on their Amazon business, and 32% plan to increase advertising spending in 2022; 38% of sellers will try new marketing strategies in 2022; 16% of Amazon sellers currently work with an agency to manage their business.The most popular marketing investments for Amazon sellers include: 1. Amazon Sponsored Products Advertising (PPC) 3. Amazon Sponsored Brands (PPC) 3. Sell on new e-commerce platforms and marketplaces Marketplaces with the most sellers planning to join: The platforms that most sellers plan to join include: Current status of Amazon sellersThe report shows that most of Amazon's sellers are millennials, two-thirds are men, and 62% have full-time or part-time jobs outside of Amazon. In addition, 56% of sellers have their own brands and products, while other models are becoming increasingly popular. 1. The most popular business model on Amazon Retail and online arbitrage: 26% Notably, many sellers are exploring new ways to make money through Amazon, with 25% of new Amazon sellers planning to sell their business to an aggregator. 2. Logistics method selection Despite the benefits and convenience of FBA, one-third of Amazon sellers still use FBM for some or all of their products. 3. Changes in category sales Sellers are always on the lookout for emerging niches where they can launch new products, and since 2021, sales of sports and outdoor products on Amazon have fallen 21%, while sales in the arts, crafts, and sewing industry have increased 57%. 1. The biggest challenges facing sellers in 2022: Advertising management, including PPC. 2. Biggest industry concern Increased shipping costs for inventory and order fulfillment ; Increased competition leads to lower prices ; Advertising costs increased . 3. Impact of supply chain issues 74% of Amazon sellers’ businesses have been impacted by global supply chain issues; 46% of inventory orders are waiting for several months; 44% estimated sales losses of more than $5,000; 27% were unable to place new orders with suppliers. Reply to the keyword [2022 Amazon Seller Status Analysis Report] in the conversation box of the [Cross-border E-commerce] official account to get the full report. Disclaimer: This article is copyrighted and may not be reproduced without permission.
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