hey what's up guys in today's video i
wanted to share an article published by
jungle scout they have great amazon
research tools they really excel at
helping amazon fba sellers with the
product research phase but jungle scout
also puts out a lot of good content on
their blog if you're not on their email
list it's worth joining
um but yeah i'm going to share an
article that they published recently in
today's video that shares 15 things you
need to know about amazon in 2022
basically a lot of it is just kind of
illustrating
amazon's dominance as
i don't even want to say an e-commerce
marketplace because at this point i
think it's a little bit more than that
they're becoming
the primary destination for
shoppers
around the globe you know what i mean
like it's almost like people are
thinking oh i need this
i'm gonna go to amazon and buy it as
like their first read
not oh i need this let me go drive to
the store and it could be any store
right or oh i need this i'm going to go
to google and type in the product name
they're thinking i need this i'm going
to amazon and i'm going to buy it on
amazon
so yeah some of the statistics you're
going to see in this article are going
to really blow you away i haven't even
read the whole article i've read
probably the first half of it so i'm
excited to see what's left in the back
half but why don't we get started
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at the article 15 amazon statistics you
should know in 2022 and i will link to
it in the description of this video as
well
so let's just go through the 15 things
number one amazon owns the largest piece
of the pie for e-commerce sales
when it comes to online sales amazon is
a mammoth amazon will account for nearly
40 percent of the us e-commerce market
this year
31 of the market so amazon's 40
31 of the market will be comprised of
the next 14 biggest online stores
like walmart apple ebay so those are all
going to combine
to make up 31 percent of the market
whereas amazon alone will account for 40
percent
guys we need to be on amazon if you're
hesitating about opening a seller
central account think of this as the
rest of your life not just oh i'm going
to start an amazon business maybe i'll
succeed maybe i won't like if you just
kind of follow the baseline most basic
approach to what i talk about on this
channel which is
just sell fbm print on demand products
that sit there forever like i've i
opened my seller central account in
either late 2016 or early 2017 and like
the products i listed back then are
still selling today they're still
available okay so just take a long-term
perspective and you will be just fine
uh okay so amazon 40 31
uh the next 31 is comprised of the next
14 biggest online retailers and the next
29.5 go to other retailers probably like
shopify stores
it's crazy
two
amazon's average daily
sales revenue
is 1.29 billion dollars
average
daily sales revenue is above a billion
dollars that is absurd
um so amazon's total revenue
469.8 billion in 2021 according to
statista which is a website i've used
before for similar videos
amazon's online retail business earned a
net income of 33.36
billion in 2021 up
21.3 billion from 2020. so they had a
absolutely blowout year
from 2020 to 2021 which just makes me
wonder what's possible for from 2021 to
2022
um
because if they are that means they like
doubled no that means they tripled sorry
that means they basically tripled if
they're up 21.3 billion that means they
were at 11 billion they went to 33. that
is absurd
amazon has so three amazon has 310
million customers worldwide
for comparison that's almost as many
shoppers as the entire population of the
us
united states
etail reports that 90 million of these
active global customers are amazon prime
members so
of the 310 million it looks like just
under a third of them
roughly are amazon prime members also
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and that's that'll be linked in the
description all right number four 66
percent of consumers start their product
searches on amazon so two-thirds of
consumers start their product searches
on amazon
amazon is the most popular search
destination for consumers above search
engines
above search engines yes we are at that
point now the flipping it has flipped
from people starting searches at google
to people just going straight to amazon
if they want to buy something um
so search engines 49 walmart 38 facebook
26 youtube 26 interesting amazon 20 or
youtube 26
uh amazon sees nearly 2.7 billion
website visits each month that is crazy
so here's a chart kind of breaking down
when consumers shop for a product online
where do they start their search
66 percent of the time amazon 49 and i
guess it doesn't uh sum to 100 which is
interesting but um yeah amazon is
exceeding search engines
five roughly thirty seven hundred so
three thousand seven hundred new sellers
join amazon every day okay thirty seven
hundred new sellers on amazon every
single day
uh that is not meant to imply that they
all succeed i'm sure many people join
get distracted by something and quit
hopefully that's not you guys i mean
again if it is it's okay it's like
whatever you spend your time doing in
life whatever you spend your time
thinking about like that's most likely
what is going to manifest in your life
in the near term and the future as well
if it if it's consistent right so that
could be selling on amazon if it's
something you're not comfortable with
because you're new uh as long as it's
something you obsess about and you you
think about you will probably succeed
but i think if 3 700 new sellers a day
are joining amazon
in seller central i'm
i'm comfortable saying that i doubt you
know the majority of them are successful
and even making a single sale
because you can sign up for an account
it's not the same as actually you know
succeeding
and that's not me trying to talk anybody
out of doing it i just think that like
yo life people get busy man like
i can just imagine like you know my
friends starting to sell on amazon
they'll sit down they'll do it one day
they'll probably not come back to it
like ever again like they're too worried
with other things that's okay that's
that's how they want to spend their time
it's all good
um number six
most amazon sellers are bootstrappers
a majority of small and medium-sized
businesses roughly 69
spend less than 5 000 to start a
business on amazon and 32 spend less
than 1 000 which is interesting because
that means they're probably like drop
shipping or doing like print on demand
for instance actually um if you're gonna
do fba though like my first ever
amazon fba product order was sixteen
hundred dollars for the products eight
hundred to ship it total twenty four
hundred for that first order and i made
my money back you know easily all right
my first my first product uh had a forty
percent profit margin so i was pretty
well protected it wasn't the most
optimal configuration for me to sell
what i was selling
but it was cushioned to the point where
i felt very comfortable putting that
money in
and
that i would get a return
that was a long time ago by the way uh
it was ended up being a massive success
story over time but at the time it's
like you know pretty fearful putting
that much money on the line um when
you're just starting
upfront investments can include the cost
of products amazon storage and seller
fees which isn't really up front and
advertising budgets although you know
you you can
your your ad spend can just come from
the money you actually
make from your sales so it doesn't have
to be like a separate bucket of cash
that you're spending on ads
uh number seven third-party sellers
generate some serious cash according to
our research 76 of amazon sellers are
profitable
that's crazy 76 of amazon sellers are
profitable i guess that's maybe if
you've made a sale there's probably an
asterisk there because there's no way
that 73 of the people that open seller
accounts
um are profitable there's no way and 63
are profitable within a year of
launching their business in 2021 60 000
third-party sellers exceeded 1 million
in sales and approximately 350 000
sellers collected more than a hundred
thousand in sales
eight twenty two percent of amazon's
total revenue is attributed to
third-party sellers
so as a third-party seller i think that
just implies that you're not selling fba
that means that you know you can just
open a seller central account
integrate it with printful and you would
be you know the the revenue you bring in
would be lumped in with um
and this says amazon's total revenue so
uh this is probably just the amazon
referral fee that they take
from sales well actually i guess it
would be advertising revenue as well
from sales that take place on their
platform that amazon kind of facilitates
the meeting of the seller and the buyer
right and even though the seller pays
the buyer amazon says oop don't forget
our you know 15 16 17 18 percent
that we're taking
nine third party sellers in the us sold
over 7 000 products per minute
on amazon so between september 2020 and
august 2021 third-party third-party
sellers sold more than 3.8 billion
products that's 7400 per minute
and in between black friday and
christmas of 2021 third-party sellers in
the u.s sold on average 11
500 products per minute damn that's
crazy
amazon really figured it out man by
letting the whole like
third-party seller
ecosystem by creating that letting them
carve out a piece of real estate on
their platform and they just kind of
moderate what's allowed what's you know
not allowed and create a safe
you know comfortable environment that
attracts a ton of buyers um you know
it's clearly working
of course the us doesn't really enforce
any trust laws anymore so it also allows
people like amazon to just kind of run
away with with the whole industry and
you know that's that
10. 89 of sellers use amazon fba
as their selling method so
22 of amazon's total revenue is
attributed to the third parties okay i'm
going back to number eight this is
including fba sellers then but when it
says amazon's total revenue that means
amazon and all of their subsidiaries
like whole foods amazon web services
that that that has to be what it means
this has to be
um
does that link to the irs no it doesn't
okay sorry i saw our ir.amazon.com so i
was like wait is this like a tax return
or something okay so i got it so third
third-party sellers would still be us
whether we're fba whether fbm et cetera
89 of sellers use amazon fba as their
selling method uh amazon fba is the most
popular fulfillment method for
third-party sellers 59 of sellers create
their own product and brand with the
private label model
11. home and kitchen is the most popular
amazon product category among
smb sellers
32 percent of smb amazon sellers what
the heck is smb um
smb
maybe that's like their survey name or
something
uh all right so 32 of them
sell in the homing kitchen category due
to the ease of manufacturing durability
during delivery and minimal category
restrictions the second most popular
category for sellers is beauty and
personal care at 23
followed by toys and game at 20 so if
you guys are new to amazon looking to
start fba maybe start in these
categories
it probably is not a coincidence that
these are so popular like they said in
this article
things like ease of manufacturing you
can probably find a ton of manufacturers
for
best selling products
um
durability so they're not breaking
during transit i did one time sally go
sell glass products i would sell
multiple kind of in a you know in a unit
in one sku would contain multiple glass
products
and i did really well right out of the
gate but overall it just like i had to
cut it loose after two orders because
they broke too often meaning not all the
time but like amazon only gives you so
many like like x number of return rate
you know what i mean like what your
return rate is per the you know as a
function of how many products you sell
my return rate was too high it wasn't
worth it so i had to cut it loose
so durability matters all right 12
amazon sellers are eyeing aggregators
25 of third-party sellers are looking to
aggregators to acquire their business a
new endgame for amazon entrepreneurs and
for good reason aggregators raised over
12 billion in 2021 i've actually even
heard of a company i forget the name but
they are publicly traded and that was
their whole business models they were
just an
amazon business aggregator they were
just buying like fba businesses and they
were successful enough to the point
where they you know went public and
they're publicly traded on the stock
market which then you get a bunch of
like forward multiples um priced into
your company's
uh valuation and you know the the people
at the beginning of that form that
company and that took the risk
get paid you know they get a massive
payday so shout out to them and you know
if you do start fba you can consider
that as an exit down the road it's
always on the table
and you get a nice healthy ford multiple
for your business
13. amazon's prime membership is
expected to reach 76.6 million
households in 2022. so that's households
that means you know if there's multiple
people living in a household that's even
more people
so according to status to
u.s households with amazon prime are
expected to grow 15 in 2022 up from 66.4
million households in 2019
and that tracks 80 of us consumers
expect free shipping on orders above a
certain dollar amount
14 as of 2021 amazon employs over 1.6
million people worldwide
amazon's employment has impressive
global reach and this doesn't even
account for amazon seasonal or temporary
workers um
quick note on that though because i
actually viewed an amazon warehouse i
toured it
and
when we were there they did a
presentation where they
basically kind of showed that they are
working
towards
uh automating i don't know why it took
me google took me to amazon um
spain but either way uh they showed a
presentation and they by the way they
weren't letting people tour the
automated warehouses they were letting
them toward like the traditional
warehouses with humans walking around uh
but they basically showed us like their
vision of the future and
yeah while they employ 1.6 million
people amazon's goal is certainly not to
employ 1.6 million it's to employ as few
people as possible which as business
owners you can't necessarily blame them
but as
amazon you know one of the world's most
valuable companies
um it's not great when that's the trend
the trend is employ as few people as
possible because yeah it's something
that's going to need to be figured out
pretty quickly
because yeah amazon has like a whole
cutting edge
on probably the global front cutting
edge like robotics team that's
worried about like automating the whole
like warehousing aspect of amazon and
even the like automated warehouses
were not fully automated in what they
showed but like robots would go and pick
up the entire shelves
so there's like massive shelves in these
warehouses we got to tour a bunch of it
you know um they could the robots would
pick up the shelves
move them like like kind of like elevate
them a little bit move them to the human
and the human never had to move
so they would just stand there and pick
out of the shelf and then the robot
would go take the shelf and put it back
and they just kind of did like a big you
know formal line so anyways that's what
that's what i saw a couple years ago
when i toured a fulfillment center which
you can still do by the way if you guys
ever want to go on like a field trip um
it was fun i brought my mom skipped work
that was back when i was working my 9-5
and only had to drive like an hour away
from where i live to because they only
let you into certain ones but you can
just google it and find how to how to
tour a warehouse
it was loud by the way you had to wear
headphones
all right 15 amazon advertising
earned 31 billion uh casual 31 billion
dollars last year so advertising on
amazon clocked in at 31.2 billion
dollars in 2021 with a growth rate of an
absurd
32
but this is a result of them forcing
people to advertise kind of like
indirectly
and increasing their ad inventory i
don't know if you guys shop on amazon i
don't even shop on amazon that often but
i guess i'm on there looking around
enough you know for youtube and for my
own research and product sales and
you'll notice they're increasing the
number of spots where you see sponsored
products and when you when you do that
you know you make more money so that's
what they're doing
advertising makes twice the revenue of
physical stores and more than amazon
subscription services like prime so this
was not the case as recent i mean i'm
acting like i know i don't know for sure
but like
the push to force all sellers into
having to advertise i feel like really
started like maybe
the back half of 2019 if i had to if i
had to pick a date and they really just
kind of like snapped their fingers and
made this a thing you know what i mean
an added
and this is probably all profit right
because it's just selling it's selling
literal online real estate um
so yeah so that's just crazy it's making
more money than physical retail stores
then their subscription services like
prime that is crazy 79 of amazon smb
sellers advertise their products on or
off amazon so they amazon created an ad
type where you can they facilitate
advertising off of amazon
which is crazy that they're trying to
pass that along to the sellers instead
of just paying it themselves but it's
not crazy because amazon's cut throat
even to their sellers
amazon continues to impress with
staggering e-commerce stats as a
mainstay of e-commerce amazon is
securing its spot at the top while
providing third-party sellers an
opportunity to join in on the victory
so guys this was a great article by
jungle scout um definitely recommend
joining their email list if you're not
already and i recommend using the tool
if you're actually looking to start an
fba business because it's definitely
like my go-to
product research tool it can work
outside of just fba it can work for
print on demand but it's it's not as
necessary for print on demand if you're
selling fba and you want to protect
yourself and make like as good of an
informed decision as possible before you
invest your money into launching a
product i definitely would recommend
jungle scout using their research tool
so i'll put my link to jungle scout in
the description as well in case you want
to check it out guys thank you for
watching this video though i do
appreciate you and your time i hope you
found this video
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you