What Is The Success Rate Of A New Amazon FBA Business?

What Is The Success Rate Of A New Amazon FBA Business?

There's no doubt that the new Amazon FBA business is booming. But what is the success rate? Is it really worth your time and money to get involved in this business? In this blog post, we'll break down the numbers to help you decide if Amazon FBA is right for you.

Pros of selling on Amazon:

  • Access to Amazon's loyal customer base
  • If you use FBA, Amazon takes care of logistics
  • Prime shipping


What Does It Take To Sell On Amazon?

This year, about 600,000 new vendors will have registered to sell on Amazon. Yes, there's a large number of vendors, but keep in mind that Amazon's market share grows every month, quarter, or year, depending on how you look at it.


You know how much money you may make if you establish an Amazon business, but how much does it cost to get started? And does amazon FBA really work? It will necessitate both a monetary and time investment upfront and what is the amazon FBA success rate?


Related: How To Sell Wholesale On Amazon?

1. Money

One of the biggest questions asked here  is, "How much money should I start with?" While most sellers (58%) started their Amazon business with around $5,000, 28% started with less than $1,000, and 18% started with just $500!  


2. How Did Sellers Fund Their Business?

Fifty-eight percent of Amazon sellers choose to bootstrap their business or start with personal savings when they initially started selling on the platform. I advocate bootstrapping (starting with a small quantity of money and reinvesting) or personal savings if you don't have much.

Using credit cards or loans as a new seller is risky because it will be difficult to repay what you owe if you buy bad goods. About 17% of vendors borrowed money from family members, and about 12% acquired a business loan to get started.


Related: 9 Of The Best Free Tools For Amazon FBA Sellers 2021

3. How Much Time Did It Take Them To Turn A Profit?

Compared to a normal modest brick-and-mortar firm, Amazon sellers benefit far sooner. While it may take the latter two years or more to get even, 20% of Amazon sellers said it took less than three months to break even. No, Amazon isn't a get-rich-quick scam, but it is possible to make money right away. 17 percent of vendors said it took 3-6 months to generate a profit, and 16 percent said it took about 1-2 years. This is typical of a private label product, especially during its initial debut.


Related: 7 Tips On How To Buy Wholesale To Resell On Amazon

4. Time

To sell well on Amazon, you must invest the time necessary to succeed. If you're consistent, you'll be able to launch your first product in under three months, just like 54% of other Amazon sellers. 31% of sellers got their Amazon business up and running in less than 6 weeks, while 14% needed 6 months to a year.


Related: 9 Of The Best Free Tools For Amazon FBA Sellers 2021

Is It Worth It To Sell On Amazon?

Yes, Amazon is competitive. But is selling on amazon worth it? It takes time and money to get started, and it isn't a set-it-and-forget-it type of business, contrary to common opinion. Learning, perseverance, and hard work are required to run an Amazon FBA business. Is it, however, worthwhile? In the end, the decision is yours, but we say yes.


Selling on Amazon, in our opinion, has considerably more benefits than drawbacks. Will every Amazon seller that debuts a product be a success? Probably not, but if you put in the effort, keep improving, and learn from your failures, you can succeed on Amazon.


Related: eBay Vs. Amazon - A Complete Comparison Guide


So is an Amazon FBA business right for you? That’s ultimately a question only you can answer. But we hope this article has given you a good overview of what to expect and how to get started. If you decide launching your own Amazon FBA business is the right move, our team at Simpl can help make the process as smooth and stress-free as possible. We offer fulfillment services that will take care of everything from picking and packing your orders to shipping them out quickly and efficiently. Ready to start selling on Amazon? Get in touch with us today!

Recommended: Amazon Side Hustle – Frequently Asked Questions

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