Is It Profitable to Sell on Amazon? Tips to Earn Profits from Amazon

Amazon is prospering at full pace with no sign of stopping, not at least in this year – 2020.

Online stores and retail third party seller have generated the highest-ever quarterly revenue for Amazon in Q2’ 2020.


Source: Statista

The rising trend third party sellers are making a great contribution for themselves using the FBA. That ignites our curiosity to ask – Is it profitable to sell on Amazon?

Yes, it is profitable to sell on Amazon but the question that should be asked here is how much selling on Amazon is profitable?

The answer to that is – it depends on various factors including the categories you are selling, the retail price, and the right product.

Every 2 minute a new seller join Amazon marketplace and at this rate, 1.2 million sellers will join Amazon by the end of 2020.

The rising numbers of sellers make the competition more fierce that makes it much harder for you to compete on prices.

But it is surely profitable to sell on Amazon.

If we talk about the US market, in 2017, 300,000 sellers joined Amazon as a third party retail seller and 47% of those sellers have managed to generate $100,000 sales annually.

So, we are clear that it is profitable to sell on Amazon but how can you become profitable in such a tough competition.

How to Become Profitable Sellers on Amazon

Anyone can join Amazon and become a seller but not everyone becomes successful.

According to Jungle Scout, 59% Amazon seller makes less than $10,000 in monthly sales and 46% makes less than $5000.

If you are starting with some partners then the share would be much lesser.

But, we have to consider the facts most of the sellers are noobs that do not know much about ecommerce tactics such as product hunting, list optimization, etc.

So, here are some tips that can help you to become a profitable Amazon seller within the first month of selling.

1- Find Your Niche

The major mistake most ecommerce newbies made is that they go for general products. Do not list products from different categories in a single store, identify your niche first, and then create a proper Amazon store with the products related to your category.

When you go for random products there are higher chances for you to stick to fads like fidget spinners. That might help you generate some quick profits but for long-term business on Amazon, you need to find a strong market.

Learn how to find a profitable niche in 9 easy steps.

2- Be Ahead of the Curve

Price rises when the demand rises; it is the simple economical rule of supply and demand. When you pick up a niche, it becomes easier to keep an eye on upcoming trends and stock your warehouse with the off-season product to sell them in the right season.

For example, if you select to penetrate the garden niche then you must know what demand for products rise at what time of the year.

If you see the US trends for a garden hose, the demand for this product rises from April to July. So you can stock them in the off-season at cheap prices and resell them at the right time.

Similarly, garden lights demand rises in the last couple of months of the year.

Predict the trend and prepare yourself before the season arrives. This could easily help to fulfill the demand of the market by easily beating the price competition.

3- Calculate the Amazon Fees

Amazon charges multiple fees to sell on its platform including FBA fees, variable closing fees, and referral fees.

These fees are varied from product category, weight, dimension, and tier.

You need to calculate all these fees prior to finalizing the retail price on Amazon.

To calculate the Amazon fees, you can use the FBA revenue calculator.

Here I am using Jungle Scout to calculate the fees.


This car seat was listed for $279.99 and the cost of FBA is $60.49 that left $219.50 in net profit.

The product cost was $180 that left $39.50 in profits.

So, you must know the cost of selling Amazon before finalizing the prices otherwise you could end up having much lesser profits or even losses.

Related Article:  How much does it cost to sell on Amazon

4- Check Out Your Competitors

Sometimes competitors teach more than a mentor. Amazon’s bestseller page is the ideal platform to know what products have been selling well in your category.

For example, if you want to sell car accessories in the automotive category and want to find out what products are selling well in this category then just go to the Amazon bestseller page and click on your category.


You can get a wholesome idea about trends in your niche, and what you should be selling in your Amazon store.

Useful Resources for Selling on Amazon:

10 Ways to Find Products to Sell on Amazon

How to Find Bestselling Items on Amazon

Wrapping Up:

Amazon is undoubtedly one of the best platform to kickstart your ecommerce journey. Nonetheless, it takes some smart working and great knowledge regarding product sourcing, product hunting, shipment, etc.

So, before stepping into the world of Amazon let yourself educate with some basic hacks of online selling for that do check out our free guides to generate profits from your first ecommerce venture.

Bilal Uddin

Bilal is a passionate content creator and digital marketing enthusiast who loves to find hacks and creative ways to produce prolific outcomes in strategizing content. Bilal is also an avid reader who loves to read mysteries in his free time.

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