AUSTIN, Texas, Feb. 3, 2021 /CNW/ — Jungle Scout, the leading all-in-one platform for Amazon sellers, today released the results of its international survey of nearly 5,000 entrepreneurs, brands, and businesses on Amazon. Results included data from Canadian Amazon sellers on Amazon.ca. The 2021 State of the Amazon Seller Report reveals that more than half of Amazon sellers saw increased sales in 2020, primarily due to COVID-19.
Amazon’s net sales from third-party sellers grew 57% year-over-year in 2020, heavily contributing to Amazon’s $386 billion annual revenue. The report explores these sellers’ diverse business strategies, including their challenges, revenue, and ecommerce growth plans for 2021.
Key insights include:
1. COVID-19 contributed to Amazon sellers’ revenue in 2020.
- 51% of Amazon sellers say their sales increased during and/or because of the COVID-19 pandemic.
- 44% said their businesses have performed better than expected because of the COVID-19 pandemic.
2. 85% of Amazon sellers are profitable going into 2021.
- 62% said their profits increased during 2020.
3. Ecommerce expansion is top priority for Amazon sellers in 2021.
- 96% plan to expand their Amazon businesses in 2021.
- 39% are considering selling on Walmart.com in 2021, and many are exploring Shopify, Instagram, Target, and other platforms. Canadians don’t have as many online marketplace options as other countries, but that is improving as international businesses realize the profit potential here. Here are some online marketplace options for Canadians.
4. Sellers continue to invest in Amazon — but they have concerns.
- 66% are concerned about increased competition driving prices down.
- Amazon’s ad business is booming, but it’s costing sellers; 62% are concerned about increasing ad costs on Amazon.
“The past year has emphasized the staying power of ecommerce, with Amazon continuing to lead the charge. And Amazon’s third-party sellers are essential to this success and growth,” said Greg Mercer, founder and CEO of Jungle Scout. “As ecommerce becomes a more fundamental part of consumers’ lives, it also becomes more competitive for the brands and businesses that leverage its reach.”
About the Survey
Between Dec. 1-28, 2020, Jungle Scout surveyed 4,864 Amazon sellers, including prospective and former sellers. Respondents represent 70 countries, 17 Amazon marketplaces, and all relevant Amazon product categories. They are ages 18 to 80+, as well as all genders and levels of education. See full report for more details.
About Jungle Scout
Jungle Scout is the leading all-in-one tool for selling on Amazon. Founded in 2015 as the first Amazon product research tool, Jungle Scout today features a full suite of best-in-class business management solutions and powerful market intelligence resources to help entrepreneurs and brands manage their ecommerce businesses. Jungle Scout is headquartered in Austin, Texas, and supports nine global Amazon marketplaces.
SOURCE Jungle Scout
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Melody McKinnon's formal education is in business management, which she enhanced with more than 60 certifications revolving around business, marketing, health, general sciences and writing. In over 20 years of working online, she has owned or managed both educational and eCommerce websites.
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