The Jungle Scout 2022 State of the Seller Report

Jungle Scout released the 2022 edition of its annual State of the Seller report, and I wanted to take a few minutes to review some of the most important points it makes about what sellers are challenged on this year and moves they're making, and other interesting stats.

You can download your own copy (free) in PDF format to follow along here. Here are some of my notes.  The data came from 3,500 Amazon sellers from 117 countries covering all 20 Amazon marketplaces.

It's no secret that third-party sellers make up a large swath of the product sources on the Amazon marketplace. More specifically, over two million third-party small and medium-sized businesses sell on the marketplace, and over 3,700 join every day. Competition is fierce, but sellers' plans for 2022 show that those getting ahead of the trends are ready to make real moves.

The Report describes that 43% of sellers polled are expanding. Their product lines and 45% are launching new products under new brands unrelated to their existing catalog of items. Also interesting is that 19% mentioned launching their own e-commerce store. Given Amazon's pressure on sellers over recent years, I'm not surprised to see that nearly 1/5th of those polled are looking to establish more control over their brand(s) and how their products are sold.

Looking at additional Amazon seller statistics, over a quarter of sellers mentioned their Amazon business is their only source of income, and 45% have another job–either full- or part-time. (Jungle Scout has more detailed Amazon seller demographics here.) given the ease with which one can run an Amazon-based business, seeing 76% of sellers mentioning they operate out of their homes is no surprise.

Jungle Scout asked sellers to identify the categories of businesses they run, and 59% said private label, 26% wholesale, and 49% arbitrage (26% retail and 23% online). I suspect a lot of overlap, especially with RA, OA, and wholesale.

It's not surprising to see Home & Kitchen land the top spot for top product categories (32%). The category is vast and arguably covers more unique types of products than anything else. Also not surprising is that 74% of products came from China, as reported by polled sellers. The United States is in a distant second, though, at 26%. I suspect we'll see that number climb in the coming years as buyers look for more "made in my country" products and China's geopolitical landscape shifts.

In the sales section, only 22% of sellers bring in over $10,000 a month in revenue, 43% of sellers polled had brought in under $25,000 to date, and 52% did under $25,000/year. For those in the Enterprise space, the largest fraction was $5M to $50M (23%) and $2M to $5M (33%). This tells me there's room to stand out and quickly climb to the top of the metaphorical charts once you cross the $25,000 mark both in total and annually.

Related: only 8% of SMB sellers said they weren't profitable. There is no data on enterprise sellers regarding lack of profitability, though 28% declined to answer (I'd bet you'd find a decent fraction within that 28%.)

Other stats I found interesting:

  • 64% of sellers spend less than 20 hours per week on their Amazon business.
  • 78% launched their business in 6 months or less.
  • 69% spent $10,000 or less to start their business.
  • 82% bootstrapped their business with their own funds.
  • 30% estimated to have lost over $10,000 in sales from supply chain issues.
  • Even with the woes selling on Amazon can bring, 82% were still optimistic about their future selling on the platform.

The State of the Seller report covers way more than I could summarize here. You can get your free copy in PDF format here.

Bonus: Buy a year of Jungle Scout Professional and get the Freedom Builder Bootcamp course for FREE.

Last Updated: April, 1st, 2022 at 09:12 pm UTC
Johnathan Lyman

Johnathan Lyman



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