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A quarter of new Amazon sellers plan to sell their businesses to an aggregator: study

Image courtesy of Amazon

A quarter of new Amazon sellers are already planning their exit strategies – selling their business to an Amazon aggregator, a new study suggests.

Amazon selling platform Jungle Scout surveyed 3,500 entrepreneurs, brands and businesses from 117 countries, and all 20 Amazon marketplaces, to find that while 45% of sellers said their profits increased between 2020 and 2021, and 95% plan to expand their businesses in 2022, 25% of new sellers now plan to sell their business to an Amazon aggregator. Some 76% were profitable at the start of 2022.

Its 2022 State of the Amazon Seller report comes soon after Amazon fourth quarter figures showed that net sales from third-party sellers grew by 28% in 2021, compared to the same period in the previous year, and accounted for 22% of Amazon’s $470bn (£345.5bn) revenues for the quarter, at $30.3bn (£22.8bn).

The study also found that almost a third (32%) of sellers will boost marketing and advertising spend in 2022, with 67% concerned about Amazon changing search results to favour paid over organic results, and 39% will grow their brand through social media, influencer marketing or other marketing efforts this year.

Mor than half of Amazon sellers sell on Walmart and Shopify as well, while 30% are looking at selling on other platforms, from eBay and Facebook to Etsy.

“It’s heartening to see Amazon sellers continue to find success in the constantly evolving ecommerce landscape,” says Greg Mercer, founder and chief executive of Jungle Scout. “The steady growth of Amazon and ecommerce demonstrates that consumers can rely on ecommerce businesses using times of uncertainty, and sellers can count on a stable source of revenue.”

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