In its annual survey of nearly 5,000 Amazon entrepreneurs, brands, and businesses, Jungle Scout explores the challenges, strategies, and ecommerce investments of Amazon sellers in 2021

Jungle Scout, the leading all-in-one platform for Amazon sellers, released the results of its survey of nearly 5,000 entrepreneurs, brands, and businesses on Amazon. The 2021 State of the Amazon Seller Report reveals that more than half of Amazon sellers saw increased sales in 2020 during and because of COVID-19.

Amazon’s net sales from third-party sellers grew 57% year-over-year in 2020, heavily contributing to Amazon’s $386 billion annual revenue. The report explores these sellers’ diverse business strategies, including their challenges, revenue, and ecommerce growth plans for 2021.

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Key insights include:

COVID-19 contributed to Amazon sellers’ revenue in 2020.

1. • 51% of Amazon sellers say their sales increased during and/or because of the COVID-19 pandemic.
   • 44% said their businesses have performed better than expected because of the COVID-19 pandemic.

85% of Amazon sellers are profitable going into 2021.

1. • 62% said their profits increased during 2020.

Ecommerce expansion is top priority for Amazon sellers in 2021.

1. • 96% plan to expand their Amazon businesses in 2021.
   • 39% are considering selling on Walmart.com in 2021, and many are exploring Shopify, Instagram, Target, and other platforms.

Sellers continue to invest in Amazon — but they have concerns. 

1. • 66% are concerned about increased competition driving prices down.
   • Amazon’s ad business is booming, but it’s costing sellers; 62% are concerned about increasing ad costs on Amazon.

“The past year has emphasized the staying power of ecommerce, with Amazon continuing to lead the charge. And Amazon’s third-party sellers are essential to this success and growth,” said Greg Mercer, founder and CEO of Jungle Scout. “As ecommerce becomes a more fundamental part of consumers’ lives, it also becomes more competitive for the brands and businesses that leverage its reach.”

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