Amazon continues to dominate the e-commerce landscape and there’re increasing year-over-year profit margins for third-party sellers on the Marketplace, as well as opportunities for continued growth through private label expansion.
To take a pulse of the Amazon Marketplace and its seller inhabitants, Feedvisor has conducted ‘The State of the Amazon Marketplace 2018‘, a survey of over 1,200 Amazon merchants to gain insights into their challenges, ventures, and strategies for maximizing profitability, as well as to uncover sellers’ priorities, pain points, and keys to profitability.
The Top-line Findings of the State of Amazon Marketplace 2018:
- Nearly one-third of sellers who sold at least 60% of their inventory via Fulfillment by Amazon (FBA) saw a 21-30% profit margin, compared to 25% of sellers who sold more product on their own via Fulfillment by Merchant (FBM).
- For sellers with annual revenue over $2 million, 12% of sellers spend more than $1 million annually, a five percent increase from 2017.
- eBay has lost notable ground over the last year with just 52 percent of survey respondents stating they sell on the platform (down from 65% in 2017), while Walmart has made exceptional strides with 36 percent of respondents planning to focus online sales there in 2018 (versus 29%) in 2017.
- 40% of sellers said their top concern is competing with Amazon on its Marketplace for both the Buy Box and private label products, closely followed by Marketplace fees (33%) and negative customers (32%).
A Figure Shows the Amazon Sellers’ Annual Revenue – 2018 Data
Number of Pages:
Data in this study is based on a survey of 1,200 Amazon sellers.