Voice of the  Amazon  Seller Report

By

Methodology

Who We Talked To

Respondents were fairly evenly distributed between business size with 32.4% being small ($0-$100K) and 22.4% being very large ($5MM+)

Who We Talked To

Is Amazon Your Main Business?

Most respondents are completely dependent upon Amazon for their business. This means any policy change can be a significant impact to their business.

Do You Dictate Your Own Salary?

Compensation

While Amazon boasts millions of sellers, many do
not fully replace a full time salary.

$58,657 Median US Salary. 50% of respondents reported an Amazon take home pay equal to or below the US national median income.

What is Your Take Home Pay?

Amazon Risks And Challenges

What is the hardest part about selling on Amazon?

Competition is the leading challenge facing Amazon Seller today. This is most true for private label brands but for resellers, FBA fees are the leading challenge.

Do international Sellers Pose a risk to your business

Did your business grow?

Sellers that said international sellers pose a risk to their business were the most likely to have decreased in size in 2024.

A War on Two Fronts

Have you raised prices in 2024 because of increased  Amazon FBA Fees?

While International sellers are pushing downward on price, increased FBA fees are pushing prices up forcing sellers to raise prices. Talk about a rock and a hard place. This downward spiral was experienced by a whooping32.7%of respondents

Suspensions & Seller Concerns

Have you been suspended on Amazon?

Did your business grow?

35% of sellers report having experienced an account suspension. Sellers of all size have received them. Sellers doing between $100k-$1M being the most likely. New sellers being the most unlikely.

Seller Suspension by Annual revenue size

Suspensions by seller type

36.5% of all resellers have been suspended while 30.7% of Brands have experienced a suspension

Fear of Suspension

Fear of getting suspended is embedded in many sellers minds. For many it's an 8-9, for others its a 1-2. It can be category dependent and experience based.

Fear of Suspension ($5MM+)

Large sellers (5MM+) were on average less worried than small sellers but upon further review it appears that is because of diversification, of the large sellers that identify Amazon as their main business channel it is above average

Seller Sentiment

Is Amazon a fair Marketplace

Do you feel that Amazon is a fair marketplace?

Almost 2/3rds of Amazon sellers see the marketplace as unfair. Whether it's international sellers, challenges of winning the buy box or Amazon's private label, trust in the marketplace is hard to come by.

Private label brands are most likely to see Amazon
as not a fair marketplace

Amazon’s AI Efforts

It’s not 2022 anymore you don’t have to pretend you are using AI. Those who claim Amazon AI has helped their business are only .7% more likely to have been more profitable as those who said there is no difference. Placebo?

AI usage to if you're more profitable this year.

For businesses that are less profitable in 2024, they say that Amazon's AI efforts have hurt their business.

Amazon AI Effect On Business Types

Wholesale resellers are the most likely to have found the new Amazon AI features as helpful to their business (24%) While private label are the most likely to have found it hurt their business (26.6%)

Would you recommend selling to a friend?

Wholesale resellers are the most likely to have found the new Amazon AI features as helpful to their business (24%) While private label are the most likely to have found it hurt their business (26.6%)

Arbitrage sellers are the most likely to recommend selling on Amazon to a friend while Private Label is the least. overall it was a resounding “rather not”
Those who dictate their own salary are less likely to recommend Amazon than the average And those bringing home less than $100,000 a year from Amazon are more likely to recommend selling to a friend
When it comes to revenue Less appears to be more. Sellers in the range of those who are looking for an “Internet side hustle that works.” Whereas those looking to replace their income may have found the road less traveled by to
be lacking in maintenance.

Amazon Seller Support

Seller Support Status

Has Amazon seller support improved or declined in the last two years?

Does Amazon Seller Support hold you back from achieving your business goals?

Amazon Policy & Market Changes
in 2024

Team Changes

In comparison to last year, did your team experience growth in size, remain unchanged, or decrease?

Wholesalers were the least likely to have decreased team size where as private label is the most likely. Arbitrage teams had the best chance of growing

Team Shrinking & Fee Changes

For those teams that decreased, on a scale of 1-10 how much did Amazon policies affect this?

Did you raise prices in 2024 due to increased Amazon FBA fees?

Have you raised prices in 2024 because of  increased Amazon FBA Fees?

Comparing Profit Year Over Year Are you:

The Majority of sellers raised prices in 2024 (67%) With Wholesale /
Resellers being the most likely (72.6%) and private Label being the least
likely to raise prices (61.9%)

Leaning into Fulfilled by Merchant (FBM)

With rising FBA fees, sellers are considering expanding their fulfillment
methods to find the most optimal way to do business on Amazon.

Did you do more merchant fulfilled in 2024?

Arbitragers are the most likely to have expanded their Merchant  Fulfilled efforts in 2024

Profitability & Business Growth Trends

Profit Check in

Are you more profitable in 2024?

Overall Sellers were less profitable in 2024 with the majority of large sellers (50.8%) reporting less profit in 2024.

Did You Raise Prices Due to fees & Comparing
this year to last year are you:

7 Figure Resellers Were the most likely to have been forced to raise prices and while still being less profitable (58%)

Prime Deals & Deal Fatigue

Do you participate in the Prime
Shopping Holidays with discounts? (Prime Day, Big Deals Day, Black Friday)
34% of sellers participate in Prime Shopping Holidays with large sellers (5MM+) being the most likely of any group to participate (46%)