Many ecommerce sellers can fall into the trap of looking at Amazon FBA and researching the marketplace and coming to the conclusion that they are too late to the party, and that the opportunity to use it to grow their business has long gone.
While you could be forgiven for coming to that conclusion the truth is quite the opposite. Of course, Amazon has continued to grow in popularity with many pessimistic sellers claiming that the marketplace is too competitive for sellers to actually make any money.
As Amazon’s third-party sellers have increased, so has its catalog of products which in turn has led to an increase in buyers. Amazon FBA is a huge part of Amazon’s continued success and they are looking to keep the service attractive to sellers as they recently announced an update to their capacity management system that sellers use.
If you are an ecommerce seller that is still unsure about whether Amazon FBA is right for your business or even a viable option in 2023 we have compiled a list of statistics to help you.
Amazon FBA By The Numbers
- In 2021 Amazon made $103.3 billion in third-party seller services – An increase of almost 41% from the previous year.
- Amazon third-party sellers are now responsible for just under 60% of all products sold on the Amazon marketplace.
- Approximately 89% of Amazon third-party sellers utilize Amazon FBA with just the other 11% opting for just FBM.
- By 2021 Amazon calculated that its third-party sellers were responsible for creating over 1.8 million jobs across the US.
- US-based third-party sellers sold over 3.8 billion products in 2021 averaging roughly 7,400 products sold every minute.
Winning on Amazon in 2023
While it is clear that there is still plenty of opportunity on the Amazon marketplace in 2023 and that Amazon FBA brings with it a lot of benefits, predominantly the lure of the Prime logo to the hardcore Amazon Prime subscribers.
However, the sellers that continue to thrive and succeed on Amazon are in most cases utilizing Amazon FBA but they are also bringing something unique to the platform. The chances of you becoming a millionaire by selling USB cables on Amazon in 2023 is incredibly slim, but not impossible if these cables solve a common problem or do something that your competitor’s products don’t.
Amazon FBA has the ability to act as a magnifying glass for your ecommerce business. If you have a good product it has the ability to bring you a good amount of sales. If however, you are selling a very common product with little demand, the magnifying effect of Amazon’s audience is not going to have the same impact.
With that said, the Amazon FBA opportunity still exists in 2023. Don’t be fooled into thinking that the Amazon lure is over due to their stock price stalling and Andy Jassy releasing a statement regarding 18,000 job cuts happening in January 2023. The convenience of Amazon FBA is still a winning formula for millions of buyers across the nation, and as long as that’s the case, the opportunity for ecommerce sellers will remain.
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