The State of the Amazon Seller 2022: What Sellers Need to Know


Every year, JungleScout releases a report on the state of the Amazon seller landscape. The report is packed with data and insights that sellers can use to improve their businesses. This year’s report is no different, and it offers some valuable takeaways for anyone selling products on Amazon. In this post, we’ll highlight a few of the most important takeaways from JungleScout’s State of the Amazon Seller Report 2022. So if you’re looking for ways to boost your sales and grow your business, be sure to read on!

Amazon Sellers Want to Grow

Amazon sellers have big ideas and plans they want to put into action this year. One big takeaway from the report is that there are a lot of things sellers want to accomplish this year (and beyond), and they’re feeling excited about putting their plans into action.

Here are a few fast facts on those growth plans.

  • 60% of sellers started their own brand
  • 45% want to launch new products this year
  • 43% want to optimize product listings and ads. 
  • 77% use Amazon PPC ads
  • 31% want to expand to Walmart

Hurdles to Growth for Amazon Businesses in 2022

There are some hurdles ahead though that many sellers report being concerned about. Here are some of the top things sellers are worried about in 2022. 

  • 59% of sellers are concerned about rising ad costs. 
  • Customer reviews are one of biggest challenges for sellers, with 57% report wanting to improve in that area. 
  • 3,700 new sellers get started on Amazon daily. That’s a lot of competition. 64% sellers are profitable within one year of starting to sell.

Supply chain and shipping problems are starting to add up too.

  • 64% concerned about increase in shipping costs
  • 30% report losing more than 10k in sales last year from supply chain problems.
  • 37% experienced inventory delays over 3 months. 
  • 34% say importing products is a challenge. And for good reason: 74% of products are manufactured in China according to JungleScout.

Sellers say they like working with Amazon (72%), but there are some concerns about policy changes and withholding of payments. 

  • 70% concerned Amazon could arbitrarily limit or shut down their account.
  • 61% concerned about Amazon policy and Terms of Service changing. 
  • 90% of sellers use FBA in some way. 

Bottom line: sellers are concerned about falling into a “feed the beast” model. 

The challenges ahead can be invigorating for many sellers. It’s a chance to show what you’re made of and to potentially come out on top.

How to become a millionaire seller

As an Amazon seller, you have the opportunity to quickly scale, going from small business to enterprise in years. Top sellers make up to $50 million annually on Amazon! You aren’t in this to get rich quick though. It’s about hard work and earning that big reward.

Here are some stats on million-a-year (or more) sellers. 

  • 63% of million dollar annual sellers have over 100 active product listings. 
  • 81% of millionaire sellers have multiple brands.
  • Big sellers Invest more in marketing and ads – 80% run ads on ecommerce platforms vs 63% of smaller sellers.

Who is the typical Amazon seller? 

The State of the Seller report also has some interesting information on whose selling on Amazon. 

Here are some fast facts from that section:

  • 68% of Amazon sellers are male. 
  • 57% between 26 and 45, while 37% percent over 45.
  • 70% have a bachelor’s degree or higher, indicating that student loan payments may be an issue for many sellers.
  • 35% of Amazon sellers are employed somewhere else, working 40+ hours a week. Many of these sellers strive to turn their side hustle into the main thing, but they need to scale to a level where they can support themselves and their families. 

Getting your Amazon business to the million-a-year mark can be tough. Even just maintaining an edge over the competition and staying ahead of expenses can be difficult in the face of supply chain problems and growing inflation. 

How can Payability help Amazon sellers?

Payability helps Amazon sellers grow by providing fast funding and faster payouts for their Amazon sales. When sellers use Payability, they don’t have to worry as much about Amazon holding money. Plus, you may have delays elsewhere in your cash conversion cycle, but your marketplace payments won’t be the thing holding you up. You’ll be able to put your money to quick use reinvesting in your business. You can become a million-a-year seller faster.

See your options in minutes when you connect your account. 

See more from our partners at JungleScout. 

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