Looking into new business opportunities throughout 2020 probably presents you with plenty of different types of businesses that you could set up. One popular form of business that has been profiled in many different online blogs and success stories is that of launching an Amazon FBA store.
However, Amazon FBA sellers have had to become increasingly competitive in recent years due to the number of people launching Amazon FBA businesses. Some Amazon sellers
can earn up to multiple six figures in profits, but it should not be expected that you can easily launch a company and scale to that level quickly.
Some Amazon sellers
are putting in a significant amount of work only to make around $26,000 a year in profits.
Understanding how to be profitable in 2020 and beyond not just assists with the growth of your business, but can also be instrumental if and when you decide to list your company for sale with the support of a business broker. One of the most common reasons that the people turn to Amazon FBA is because of the freedom that they might be able to tap into through the income.
Many people today are tapping into their entrepreneurial spirit and the desired to be their own boss, but others might be launching this as a side hustle, as a way to travel the world, pay off debt, or accomplish other savings goals. Increasingly, however, it is becoming a primary income stream for some very successful and legendary Amazon FBA sellers, and despite the increasing competition, it is a very viable and possible way to make money in 2020.
A recent study of Amazon FBA sellers found that a total of 92% of them are planning to continue selling on Amazon throughout 2020. Over 60% of sellers also reported that they increased their profits in 2019. What you can expect to make selling on Amazon FBA in 2020 will depend a lot on your individual situation, but here’s some further information about what you might be able to expect.
There are many different methods for selling on Amazon, but the most common and one that has a great potential for profitability is the Amazon Fulfillment by Amazon or FBA program. Selling on Amazon of course does require some fees and expenses on the part of the seller, but it simplifies the process of listing products for sale and reaping potential benefits, which is why so many online sellers and aspiring entrepreneurs turn to Amazon FBA.
You get to select the product that you want to sell, ship it to Amazon’s warehouses, establish a firm Amazon listing with best practices in mind, and Amazon takes care of the remaining details.
This means that it makes it relatively simple for you to start seeing sales and profits. The majority of Amazon sellers working through FBA generate at least $1000 per month in sales. However, there are some extremely profitable companies generating upwards of $250,000 each month in sales. Approximately half of sellers, however, are making between $1000 and $25000 a month.
Only a little less than 24% of sellers make less than $1000 a month in sales. One in five sellers makes between $25000 and $250,000 a month, which means that despite the increase in competition, you could still have an excellent opportunity to capitalize on Amazon FBA in 2020.