Yes, Amazon resellers can and do make money, with over 60% of sales on the platform coming from independent third-party sellers. While profitability varies based on product choice and strategy, over half of these sellers (57%) see profit margins higher than 10%, and 28% report margins above 20%. Success requires managing competitive niches, high fees, and, often, significant upfront investment.
Selling on Amazon can be a very lucrative business for many — more than the average side hustle. 19% of Amazon sellers surpass $10,000 in average monthly sales. 30% of Amazon sellers report sales above $5,000/month. 31% of sellers make under $500/month in sales when first starting out.
Most Amazon sellers earn between $1,000 and $25,000 in monthly revenue, translating to roughly $200 – $5,000 in net profit after fees, inventory and advertising costs. Top 20% surpass $50k a month, while around 30% start under $500 but grow within a year.
And that's why so many sellers fail. Not just a few. The numbers are brutal: 68% of Amazon sellers fail within their first year. By the end of 2025, there will be 500,000 fewer active sellers on the platform.
How to Make Your First $1,000 with Retail Arbitrage on Amazon - Full Guide
Is it worth selling on Amazon UK for beginners?
Selling on Amazon is a great way for beginners to start a business online with access to millions of potential customers. After all, Amazon is the biggest online marketplace in the UK, with annual sales of nearly £17.5 billion.
How much money do you need to start selling on Amazon? Most sellers need $1,000–$5,000 to launch properly, though it's possible to start selling with under $500 using models like retail arbitrage.
Both the monthly subscription and referral fees apply to all Amazon sellers; however, unlike the selling plan fees, referral fees are percentage-based and vary according to the product category. Amazon referral fees can go as low as 3% (e.g. expensive watches) or as high as 45% (when selling Amazon Device Accessories).
Some sellers make a few hundred dollars per month starting out as a side hustle, while more experienced sellers who scale their operations can earn thousands of dollars monthly. It's important to note that profit margins vary across product categories, so finding high-margin items is key to maximizing income.
#1 - Following the wrong resources. #2 - Following trend markets. #3 - Not thoroughly researching restrictions/barriers for your desired market. #4 - Sourcing low-quality products.
While some Amazon product categories are open to all sellers, some require a Professional selling plan, some require approval from Amazon, and some can't be sold by third-party sellers.
From the 1st January 2024, HMRC has instructed that digital platforms such as Airbnb, Uber, eBay, Deliveroo, Amazon, Etsy, Fiverr and Upwork, automatically report individuals earnings to HMRC directly as part of HMRC's crackdown to tackle tax evasion.
