9 Data-Backed Reasons to Sell on Amazon in 2022

Amazon is known for being the world’s largest on-line retailer. It controls almost 50% of the global eCommerce market. It managed to generate over 2.5 billion mixed desktop and cell visits throughout May 2020. Its buyer base can’t stop from rising, making it by far probably the most visited eCommerce platform in the United States, surpassing each Walmart and eBay.

If you’re contemplating promoting on Amazon, this text is for you. In it, we’ll break down the highest 9 benefits of Amazon promoting that may show you how to set your on-line enterprise other than the remainder. We’ll additionally present professional suggestions alongside the way in which to assist make sure you get the very best ROI.

9 causes to promote on Amazon in 2022

Not certain whether or not promoting on Amazon is best for you? We’ll show you how to determine it out! Let’s check out a few of the most compelling causes to begin promoting on Amazon.

top reasons to sell on amazon in 2021 covid-19resilience

1. Amazon stays resilient to COVID-19

Amazon has been the main performer by way of the course of this ongoing pandemic. With the lockdown forming new buyer habits and traits, the corporate’s dominance has remarkably elevated. Amazon has witnessed a boost of 60% in its shopper spending between May and July, compared to the identical interval final 12 months, and scored virtually a 200% bounce for its market cap line, which is over $1.75 trillion in September 2020, towards $900 billion originally of COVID-19’s affect in mid-March. Talk about resiliency!

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Adding to the promising numbers that show Amazon will present good alternatives for brand new on-line sellers in the long run, analysts at Wall Street firm UBS wrote that most of the customers which can be shifting to on-line buying, could not return to in-store buying when the present pandemic state is over. The agency additionally forecasts that 100,000 brick-and-mortar retail shops will shut down in the following 5 years and that e-commerce will make up one-quarter of total retail sales by 2025.

While that is devastating information for native and brick-and-mortar companies, the truth that eCommerce is prospering permits for a brand new outlet to strive, and the excellent news is, there are simple instruments on the market for native companies to shift to on-line or ecommerce transactions.

2. Amazon Q2 2020 income outcomes

At the time of scripting this submit, their second-quarter income outcomes for 2020 show yet one more benefit for efficiently promoting on Amazon. Even taking into consideration COVID-19’s financial repercussions, they exceeded all predictions with a complete web gross sales of practically $88.9B, towards the $81.5B that was anticipated (Statista). This quantity exceeds the $87.4B generated in the vacation season quarter of 2019.

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Third-party gross sales additionally expanded  52% year-over-year amid this quarter, which enabled market sellers to hit “record sales,” beating the rise in Amazon’s first-party gross sales, which grew 48% year-over-year. (First-party merchandise embrace stock owned by Amazon, consisting of the corporate’s private-label items and gadgets it has bought from manufacturers and retailers).

These statistics present extra proof that the pandemic has shifted shopper habits to on-line and that you may profit by adapting your companies to these new traits.  that the pandemic has that the current pandemic had largely a constructive impression on Amazon, and this impression is there to keep!


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We at DataHawk additionally studied the evolution of all of the Amazon sellers’ gross sales, together with manufacturers and retailers utilizing our device for a given interval of January to July 2020.  The outcomes displayed a visual impression on gross sales throughout March and May 2020.

For occasion, there was a rise in revenue of 18.5% between February and March 2020, and one in all 33% between April 2020 and May 2020, which reveals that COVID-19 didn’t spoil companies on Amazon; however, in reality, boosted their gross sales in Q2 2020.

3. More buyers are turning on-line for on a regular basis gadgets

Online buying permits customers to examine and evaluation multiple retailer and product directly. It provides them an correct thought of the standard of your product, worth, and customer support. Consumers can conduct quick product searches and verify the obtainable evaluations by easy navigation, with out having to journey from retailer to retailer or aisle to aisle.

The velocity, contactless profit, comfort, and dependability are therefore paramount to at the moment’s buyers, that are estimated to symbolize practically 230 million online shoppers in the United States in 2021 (Statista).

The pandemic has certainly introduced up new buying habits and on-line buying traits which will see everlasting adoption. It has additionally closely elevated the expansion of e-commerce, with extra customers interacting much less with bodily shops.  According to an Adobe report launched not too long ago, May’s total on-line spending reached $82.5 billion, a 7% increase year-over-year.

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With international locations imposing extreme lockdown measures, buyers had no alternative however to buy on-line, particularly for groceries. Hence, the ecommerce big was the preferred platform for these customers, with six out of every ten  doing their on-line grocery buying on Amazon, which has boosted demand on {the marketplace} by as many as 50 times.

This enhance is certainly not short-term, because it’s main to a shopper mindset shift. A current survey carried out by Mckinsey & Company of U.S shopper sentiment through the pandemic confirmed that buyers’ intent to proceed buying on-line post-COVID-19 has been rising. More customers are prepared to make not less than a portion of their acquisitions on-line. Others plan to shift utterly on-line, throughout all surveyed classes, together with attire, books, groceries, at-home leisure, and extra.

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This means that you’ve got to conduct product analysis on Amazon, verify what buyers need at the moment and make it occur for each them and also you. There are some nice Amazon analytics tools on the market that allow sellers to construct their eCommerce enterprise accordingly, achieve insights, enhance gross sales, and finally succeed.

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4. Distinct modifications in shopper’s preferences

Recent research confirmed that individuals are not solely altering by shifting to on-line buying, however that the sorts of merchandise they’re trying to buy are altering as properly.. Amazon classes like “Health, Household & Baby Care,” “Grocery & Gourmet Food,” “Pet Supplies,” “Baby,” and “Beauty & Personal Care” are gaining in reputation, with an obvious change in pricing.

reasons to sell on amazon people buying traditional goods online

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There has additionally been a transparent lower in digital and clothes purchases, as extra customers are actually transferring right into a digital workspace and stopping non-necessary consumption. The knowledge collected from the Mckinsey survey reveals that U.S customers are spending much less on attire and electronics classes now and extra on family provides and groceries.

Once once more, you have to perceive the important thing elements influencing customers’  preferences and affecting their buying choices in on-line buying to set the right technique that might go well with and show you how to develop your Amazon enterprise.

But the sooner you get your self in the Amazon enterprise, the faster you study what your viewers precisely is trying to find, and the last word methods to earn your self a pleasant piece of the pie.

 5. The alternative to make more cash

It is difficult to say how a lot Amazon sellers make. However, in accordance to Smallbiztrends, new sellers on Amazon earn between $26,000 and $810,000 per 12 months in earnings. These sellers are both people, small companies, or massive firms and well-known manufacturers, and 67% of them declare they’re worthwhile inside their first 12 months of promoting.

The total variety of energetic sellers on Amazon is up to 2.5 million sellers on its market. Around 25,000 sellers generate greater than $1 million in gross sales on Amazon, and 200,000 sellers document greater than $100,000 in gross sales. In reality, third-party sellers account for greater than 50% of all Amazon gross sales.

All of those numbers mixed present that you’ve got very excessive possibilities of making good income on this platform as a brand new vendor. And the advantage of beginning your ecommerce enterprise is that Amazon covers practically all commerce segments. So mainly, anyone can do it and earn cash out of it. All you want out of your aspect is the appropriate product, provider, artistic advertising efforts, and time & vitality.

6. Amazon does the legwork

A significant ingredient that defines whether or not your new enterprise would fail or succeed is whether or not it has the possibility to achieve prospects and appeal to potential ones. It’s fairly arduous to earn this benefit from the very starting, particularly if you happen to’re working in a aggressive market. However, it’s a distinct story with Amazon.

Customers belief Amazon, they usually symbolize more than 89% selecting to buy from Amazon than another ecommerce platform. 

All you could have to do is deliver the merchandise prospects would buy, and Amazon will deal with the remainder.

7. Amazon Prime members

Amazon Prime members are well-known for his or her excessive spending, and with greater than 150 million active members throughout the globe, they’re thought-about one of the best buyers and probably the most loyal. They typically spend greater than $1,000 a year on Amazon and pay $119 annually to entry this market’s Prime advantages.

Prime membership advantages usually embrace:

  • Free similar day, 1-day, or 2-day transport
  • Unlimited picture storage
  • Unlimited entry to Prime Music and Prime Video streaming companies
  • Unlimited entry to free ebooks
  • Discounts at Whole meals
  • Prime-special costs and unique offers
reasons to sell on amazon amazon prime

Amazon Prime patrons are extra dedicated than non-members. 20% of them state that they store on Amazon a number of occasions per week, and seven% say that they accomplish that on a each day foundation. This may be one other necessary purpose for you to begin promoting on Amazon market, and an additional incentive to fulfill with Amazon, or not less than make the merchandise you need to promote Prime-eligible.

8. Amazon amenities for purchasers

Amazon encourages sellers to begin or shift their ecommerce enterprise to its market, which unlocks

  • Faster deliveries.
  • Easy refunds and returns.
  • Prime membership amenities in case they’re subscribed to it.

With Amazon in cost of managing buyer inquiries, even for third-party sellers, your prospects can get higher satisfaction and you’ll spend much less time answering emails, sending refunds, worrying about transport, making the packaging, having to go repeatedly to the submit workplace, and extra time being profitable and focusing on enhancing your ecommerce enterprise.

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9. Amazon is planning on including 100,000 new small companies

Amazon is planning to develop its vendor platform by including 100,000 new small companies in the approaching 12 months, a 20% enhance over the half-million that at present promote there. The ecommerce big may even spend $18B to assist small- and medium-sized companies grow sales and attain extra prospects. It has additionally introduced on the digital Amazon Accelerate summit that it has already launched greater than 135 instruments and companies this 12 months to transfer ahead with its plan of serving to sellers handle their Amazon companies.

What does this imply for you? An elevated, made easy, and awaiting alternative for you to take over. So go for it!

You can reap the advantages of promoting on Amazon

Starting to promote on Amazon doesn’t require years of expertise or concrete information on all the pieces associated to enterprise and ecommerce traits. All it really takes is persistence and dedication, and the errors you’ll make are merely a approach for you to study quick, achieve a aggressive edge, and bloom on this market.

Also, don’t be petrified of becoming a member of late. In reality, that is one of the best time to be part of. With extra choices supplied by Amazon, resembling model safety and advertising instruments, extra methods to begin promoting on the platform, and the brand new buying habits introduced by the pandemic, you could have increased possibilities of succeeding.

So what are you ready for? Take benefit of the above 9 alternatives and begin promoting on Amazon now!

About the writer

Wafaa Essoufi is the Content Manager at DataHawk, an all-in-one analytics software program platform for Amazon sellers, manufacturers, and businesses. You can verify him out on Linkedin.