In Jungle Scout’s latest Amazon seller report, the e-commerce solution provider found respondents to be more profitable this year versus last year. Researchers at the firm also found sellers, which include everyone from third-party businesses to major brands, to be selling through other channels. Apparently, Amazon isn’t the only game in town.
The report’s authors said 61 percent of Amazon sellers polled said they “already sell on at least one other e-commerce platform, leading with eBay, Shopify and Walmart.” Fifty-two percent of respondents said they will expand to additional platforms this year, which is up from 25 percent who said the same last year.
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The survey of more than 2,000 Amazon sellers also found that 89 percent of those polled said they are profitable to start 2023, “and the majority plan to expand their global footprint and diversify their marketing strategies in the year ahead.” In the 2022 report, 85 percent said they were profitable at the start of the year. And despite concerns around inflation, Jungle Scout found that 37 percent of sellers polled said their profits increased in 2022.
The report also found that 45 percent of Amazon sellers who operate in the U.S. marketplace also operate in at least one other international marketplace. Fifty percent of global Amazon sellers said they “will explore selling in additional international markets in 2023 — up from 25 percent who said the same a year ago. Brazil, Turkey and Japan are among the fastest-growing global Amazon marketplaces.”
Mike Scheschuk, president of small and medium business at Jungle Scout, said Amazon is constantly evolving, “and e-commerce is constantly optimizing. Still, Amazon sellers continue to prove that they know how to pivot in 2023. This year, we expect to see Amazon sellers exploring new strategies to help them stay ahead of the curve, including expanding into international markets, bringing their brand to new e-commerce platforms like Shopify or Walmart, or promoting their brand on TikTok to drive awareness and sales.”
Regarding social media, 41 percent of respondents said they use social media marketing to promote their offerings, which is up from 15 percent compared to last year. “While Amazon sellers still favor Facebook and Instagram advertising (respectively, 67 percent and 49 percent of sellers who market on social media use these platforms), their popularity is down from a year ago,” the report stated, also noting that 31 percent of respondents using social media marketing “use TikTok ads, up 65 percent year-over-year.”
The research also showed that YouTube and Snapchat advertising also swelled 86 percent and 41 percent, respectively, compared to last year, “demonstrating the growing demand for video content,” the report said. And about half of the respondents said they plan to work with influencers to market their products.
There were also concerns about higher operating costs. Of those polled, 36 percent said they are concerned over the impact of inflation on their business.