If you’re an Amazon seller, you know that the margins are pretty tight — especially if you’re selling through the Amazon marketplace. But how do Amazon sellers make money? Here’s a breakdown of how much Amazon sellers make on average:
First, let’s take a look at the Amazon platform itself. As mentioned, third-party sellers account for nearly half of Amazon’s revenue (54%).
This means that Amazon sellers make an average of $16,500 per month, on average.
But that’s not all! Amazon also pays its sellers commission on sales made through the Amazon marketplace. The commission rate for Amazon sellers is variable, but it’s typically around 5%.
So on average, Amazon sellers make $625 per sale.
So, if you’re an Amazon seller, you make an average of $16,500 per month, plus an additional $625 per sale. That comes to a total of $32,000 per year. Not bad, right?
But there are a few things to keep in mind. For one, Amazon’s commission rate is variable.
So, depending on the product and marketplace you’re selling on, your commission rate might be lower or higher.
Second, Amazon doesn’t just pay its sellers commission on sales made through the Amazon marketplace. It also pays its sellers commission on sales made through Amazon’s third-party marketplace sellers.
So, if you’re selling through Amazon’s marketplace, but also selling through Amazon’s third-party marketplace, your total commission income will be higher.
Third, Amazon doesn’t just pay its sellers commission on sales made through the Amazon marketplace.
And finally, keep in mind that Amazon’s margin is pretty tight. So, even if you make an average of $32,000 per year, that still leaves you with just over $2,000 per month after expenses.
So, if you’re looking to make a lot of money as an Amazon seller, you’ll need to work a bit harder than that.
So, in short, yes. But let’s go over why.
First, Amazon’s revenue is soaring due to its huge third-party seller market. Nearly half (54%) of Amazon’s revenue is generated by sellers who aren’t Amazon employees.
So, if you’re an Amazon seller, you’re in good company — and you’ll likely make a lot of money regardless of the margin.
Second, Amazon pays its sellers a commission on sales made through both the Amazon marketplace and Amazon’s third-party marketplace sellers. This means that, on average, Amazon sellers make a lot of money even if their margins are pretty tight.
Third, keep in mind that Amazon’s margin is pretty tight.