[ BDSN ] 💸 How much do Amazon sellers really make?

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🏧 5 WAYS to GET MORE CASH FLOW on AMAZON TODAY

Izzy Benoliel says many businesses focus only on metrics like revenue, growth, net profit and ROI. While those are all important, cash flow is the most essential metric for any business.

If you don’t manage it correctly, your business won’t survive, regardless of how high your profits are.

MyAmazonGuy recently shared that a staggering 41% of its agency client cancellations came from growing brands that ran out of cash.

The top reason businesses fail is due to cash flow problems.

• 82% of small businesses that fail experience cash flow problems

• 42% find an insufficient need for their product or service

• 29% run out of cash

• 23% don’t have the right team

• 19% are out-competed.

Cash today is worth more than cash in a month. Always.

5 things you can do to improve your cashflow:

#1 Ask Amazon to increase your billing threshold for PPC spend

Most people don’t know that you can ask Amazon to increase the open balance limit up to $10,000 so you won’t have to pay until you reach $10K in spend.

#2 Not all credit cards are created equal – get more time to pay

At bankrate.com multiple business cards offered offer 0% interest on purchases for the first 12-15 months.

#3 Pay for anything with a credit card using a service like Melio

Melio Payments allows you to pay even suppliers in China for a fee (about 2.9%), which can be partially offset by your card rewards.

#4 Renegotiate better terms with your suppliers

Standard payment terms are 30% upfront and 70% on shipment. The key to improving those are a shared growth plan with your supplier and relationships.

#5 Convert returns into cash and use services like Getida

Use services like Buy My Sku, Returnaround or Returns Worldwide to get rid of returns and excess stock. Services like Getida can get you about 3% of your gross sales back that Amazon likely owes you.

💸 HOW MUCH DO AMAZON SELLERS MAKE?

Jungle Scout surveyed thousands of Amazon sellers to find out how much they make. They found that new Amazon sellers are earning an average of $29,412 in annual profits, with 40% of Amazon sellers grossing between $1,000 to $25,000/month, which translates to $12,000 to $300,000 in annual sales.

39% start selling with working capital of between $1K and $5K, while only 17% reported starting their Amazon journey with $10K or more. Jungle Scout reports over half of sellers (57%) see profit margins higher than 10%, and about 28% see profit margins above 20%.

🥇 $750M per year AMAZON SELLER’S KEYS to SUCCESS

Jabran Niaz and his brother run Utopia Deals, the top selling store on Amazon worldwide.

Sales last year topped $750 million.

Jabran’s journey from a side hustle to becoming the platform's top seller is nothing short of remarkable. Starting in 2011, while still working in the software department at Bank of America, Niaz initiated his venture into e-commerce with a simple idea: selling high-quality home and kitchen products under the brand names Utopia Deals, Utopia Kitchen, Utopia Home and Utopia Bedding.

Initially viewing it as a way to earn extra income, he never anticipated that this venture would grow into a giant, boasting sales volumes that placed him at the top of Amazon's seller list and among the top 10 exporters in Pakistan.

His early shift from selling on eBay to Amazon marked a pivotal decision, leveraging Amazon's Fulfillment by Amazon (FBA) service to streamline operations and focus on scaling the business.

Jabran's strategy was centered on offering products of the utmost quality, a principle that became the foundation of his brand's identity. His decision to develop in-house software for supply chain management and profitability dashboards, alongside the significant move to shift manufacturing from China to Pakistan for better quality control and cost savings, were key factors in his success.

From generating a modest $200,000 in sales from the first container of towels to achieving milestones of million-dollar sales, his journey is a testament to the power of strategic planning, quality focus and operational efficiency.

Some key takeaways:

• Quality Over Quantity: Ensuring product quality is fundamental to building a brand's reputation and customer loyalty on Amazon.

• Adapt Manufacturing Strategies: Flexibility in manufacturing locations can lead to better quality control and cost savings.

• Continuous Learning and Adaptation: Staying open to learning from mistakes and adapting strategies accordingly is crucial for long-term success.

• Focus on Customer Centricity: Building a consumer-centric brand is key to standing out in a crowded marketplace.

75% of shoppers don’t go past the first page of Amazon when searching. How do you outrank your competitors?

To beat out your competitors in 2025 it’s necessary for Amazon brands to heavily invest in external traffic strategies.

One of the best external traffic platforms is Stack Influence which uses A.I. and a dedicated community to automate thousands of collaborations per month to help you increase your Amazon external traffic, generate UGC, and scale your recurring revenue like never before.

Top Amazon brands like Magic Spoon, Unilever, and MaryRuth Organics have been able to get to #1 page positioning on Amazon and increase their monthly revenue as high as 13X in as little as 2 months.

• Pay influencers only with products (stop negotiating fees)

• Increase external traffic Amazon sales (get to top page rankings)

• Get full rights image/video UGC (build your brand with authentic content)

• 100% automated management (don’t lift a finger to get influencer collabs at scale)

Don't believe it?

Check out the results from the Blueland Micro Influencer campaign which generated a 13X ROI scaling up influencers on Amazon.

After successfully raising investment on Shark Tank Blueland turned to Stack Influence to boost their Amazon sales and become a top selling listing using Micro Influencer marketing.

Increase your Amazon listings ranking for targeted keywords and multiply your organic recurring revenue in 2025!

Get 10% OFF by signing up this month!

🪧 WHAT is a GOOD ACoS on AMAZON?

A good Advertising Cost of Sale (ACoS) on Amazon can vary widely depending on the category of products, the market’s competitiveness and the seller’s goals.

• ACoS = (ad spend ÷ ad revenue) x 100

Openbridge used Amazon’s Brand Metric Reports to create reference values for a variety of categories (check your category below).

A few ACoS benchmark examples:

Baby

• Top 25%: 23%

• Typical: 35%

• Bottom 25%: 55%

Home & Kitchen

• Top 25%: 18%

• Typical: 25%

• Bottom 25%: 35%

Sports & Outdoors

• Top 25%: 12%

• Typical: 22%

• Bottom 25%: 34%

Openbridge eliminates manual file downloads to calculate TACoS, ROAS, ACoS, and other Amazon KPIs. They collect, catalog, and unify private, trusted industry-leading cloud data warehouses and lakes like Azure, Snowflake, BigQuery, AWS, and Databricks.

Once your Amazon data is unified, you can use your favorite analytic tools like Power BI, Looker, Tableau and others for data-driven insights.

To see all the categories they compiled ACOS benchmark data for, as well as 10 good tips on how to reduce your ACOS, click here.

🙋 USE Q&As to SIGNIFICANTLY BOOST RANK

Previous BDSS speaker and ClearAds partner Matt Altman recently shared how you can use customer Q&A’s to significantly improve your product's keyword ranking on Amazon.

He advises you research commonly asked questions about similar products or relevant search terms, then ensure these questions are associated with your products.

For example, if you’re selling jeans with specific features like a button fly and boot cut, it's beneficial to include questions like "Do these jeans have a button fly?" or "Is the cut of these jeans bootcut?" in the Q&A section.

Answering these questions in a simple 'Yes' or 'No' format can enhance the product's visibility for those keywords. He also recommends you answer these questions from your actual seller account for added credibility.

LITTLE KNOWN BONUS TIP: Use Amazon Comprehend (bet most of you have never heard of it) to plug your questions into. You can access Amazon Comprehend document analysis capabilities using the Amazon Comprehend console or using the Amazon Comprehend APIs.

✌🏼 Have a great weekend.

See you again on Monday from The Blue Lagoon.