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Saturday, September 23, 2023

Podcast Episode 183 – Is Amazon Saturated with Too Many Sellers?

Yearly, an increasing number of resellers be a part of Amazon to promote through FBA, and that leads some folks to ask the query, “Is Amazon saturated with too many sellers?” In as we speak’s episode we dive deep into the various explanation why persons are asking this query, what they may actually be asking, and we’ll even share with you our ideas on if there are too many sellers on Amazon.

Even if you happen to’re not questioning proper now if Amazon is saturated with sellers, as we speak will nonetheless be a very good episode so that you can take heed to with reference to your long-term success at promoting on Amazon — plus you’ll discover ways to have the proper mindset with regards to seeing new competitors coming in to promote the identical objects as you. Pay attention as we speak to listen to our tackle this attention-grabbing subject and learn how to show your Amazon enterprise right into a skilled one that doesn’t fear about elevated sellers or extra competitors!

Like what you hear? Inform a good friend… and make sure to depart us a ranking and a evaluation. Right here’s how.


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With our On-line Arbitrage course, you may be taught the a number of methods to seek out virtually limitless worthwhile stock on-line to promote for constant earnings on Amazon.

The course is a mixture video course (5+ hours of OA coaching) and a 100+ web page book. The movies and e book each share the very same content material (so you may choose the format you most wish to be taught from). The course additionally comes with six time-saving and money-making bonuses all at no further cost!

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Episode 183 Transcript:

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[0:00:01.8] ANNOUNCER: Welcome to The Full-Time FBA Present. In every episode, it’s our aim that will help you flip part-time hours right into a full-time earnings, promoting virtually something on Amazon. Now, your hosts of the present, Stephen and Rebecca Smotherman.


[00:00:21] REBECCA: Hiya, and welcome to a different episode of The Full-Time FBA Present. It’s Episode 183 as we speak, and we’re going to be speaking about whether or not or not Amazon has too many third-party sellers. Right here to speak with me as we speak is my favourite third-party vendor, Stephen Smotherman, my cohost, and my husband, and enterprise associate. How are you as we speak, Stephen? Are you prepared to speak about whether or not or not there’s too many sellers on Amazon?

[00:00:49] STEPHEN: I imply, with that introduction, I’m doing nice. Thanks for that. However sure, are there too many Amazon sellers? Our reply could shock you.

[00:00:58] REBECCA: It received’t shock you.

[00:00:59] STEPHEN: Okay, possibly it received’t shock you. However among the stuff we’ll discuss, you’ll discover attention-grabbing and can influence your Amazon enterprise. So, let’s get to it, on this episode of The Full-Time FBA Present.

[00:01:12] REBECCA: Effectively, we’ve been promoting on Amazon for over 10 years, and one thing that we’ve heard a number of instances many times, by way of the years time and again from the very early days till final week.

[00:01:24] STEPHEN: Sure, and we’ve been promoting for like, over 10 years. So, it’s been eternally.

[00:01:27] REBECCA: Sure, we’ve been listening to, Amazon is saturated with too many sellers. Now, whether or not that’s truly true or not, is after all, up for debate and the subject of as we speak’s episode. So, let’s dive into it. Stephen, we’ve been listening to this, Amazon’s saturated with too many sellers for therefore lengthy. What do you assume folks truly imply once they’re saying this?

[00:01:48] STEPHEN: Effectively, the individuals who say this normally imply one in every of two issues. Both they’re an Amazon vendor who’s tried to promote on Amazon and didn’t work out. So, once they’re saying Amazon is saturated with too many sellers, they assume that the variety of sellers is simply approach an excessive amount of compared to the variety of prospects wanting to purchase on Amazon. Or there are such a lot of Amazon sellers who’re doing simply tremendous promoting on Amazon, they usually assume that the extra sellers on Amazon equates to much less for them. So, they assume if I inform folks Amazon to saturate with too many sellers, nobody’s going to wish to promote on Amazon. There can be much less competitors for me, which is such a restricted mindset, and in no way, just like the abundance mindset that we educate in our programs.

[00:02:29] REBECCA: Let’s deep dive into that, and we’re going to interrupt down that first cause that folks say Amazon is saturated. That there are too many sellers, and never sufficient prospects. Subsequently, they assume that Amazon as a platform to promote on, is simply not worthwhile with the entire competitors on the market. As a result of competitors is just too excessive. The shopper demand is just too low. Why do these folks assume that there are too many sellers on Amazon? The place are they getting that from?

[00:02:55] STEPHEN: There’s quite a lot of causes. A few of them are primarily based in truth, however they’re not likely understanding the info appropriately, and a few of them are primarily based in delusion. We’ll get to that in a second.

[00:03:04] REBECCA: Oh, pricey.

[00:03:04] STEPHEN: Cause primary, persons are saying that Amazon is saturated. A current market polls report, and we’ll put the hyperlinks in our present notes, states that over 2,000 new Amazon Vendor accounts are open each single day. That equates to over 60,000 a month, or over 730,000 per yr. Now, with that stat alone, it looks as if Amazon is saturated with too many sellers. However it’s actually not, as a result of the report goes on to state that almost all of these new accounts by no means even develop into energetic, which I assume means they’ve opened their account, however they’ve by no means even tried very exhausting in any respect to get some gross sales.

One other market polls article says, “The increasing general market, GMV, which is gross merchandise quantity, permits new sellers to develop with out taking away from the prevailing vendor.” Regardless that there are various folks beginning new Amazon Vendor accounts each single day, the variety of earnings including to Amazon each single day makes it nonetheless worthwhile with regards to promoting on Amazon. And there usually are not too many sellers promoting on Amazon. There’s sufficient merchandise to go round for everyone and there’s sufficient demand from prospects to go round for all sellers.

[00:04:13] REBECCA: So, the folks asking for a chunk of the pie, there’s an increasing number of folks wanting a chunk of that pie. However the pie is getting greater, too.

[00:04:19] STEPHEN: Sure, completely.

[00:04:20] REBECCA: The second cause that folks is likely to be saying that Amazon is saturated with too many sellers is in 2022, it was reported that Amazon took a web lack of round 2.7 billion.

[00:04:34] STEPHEN: Billion with a B.

[00:04:35] STEPHEN: $2.7 billion web loss. So, it could possibly be that persons are taking a look at this considering Amazon’s on the downhill facet of its enterprise. There’s simply too many sellers on the platform. You don’t have that type of a web loss except one thing’s flawed. Nobody could be making any cash and that’s due to too many sellers, and so Amazon needed to take the loss, which none of that’s true with regards to the half concerning the third-party sellers. The $2.7 billion loss. That’s true. That’s documented. However that could be a loss for the general mum or dad firm of Amazon, which isn’t the e-commerce FBA facet of Amazon.

So, keep in mind, Amazon has its palms in so many features of our lives. There’s Amazon Internet Companies. There’s Audible. diapers.com, Zappos, Amazon Robotics, Amazon Prime Video, there’s Blue Origin, the Amazon Area Program. There’s dozens and dozens of ways in which Amazon is working and branching out into totally different corporations beneath the general mum or dad Amazon firm. So, all of these general mixed took that $2.7 billion loss. However e-commerce as part of Amazon remains to be rising yearly.

[00:05:46] STEPHEN: The third cause why persons are saying that Amazon is saturated with too many sellers is extra primarily based on delusion than info. It’s simply a straightforward excuse for individuals who begin promoting on Amazon, and for it to not work for them, for them guilty it on their competitors. Blame it on too many sellers. No one likes to stop. But when the principle cause they stop is out of their management, then it’s simpler to cease promoting on Amazon, as a result of there’s simply too many sellers and never sufficient prospects. So, I stop. Besides that’s not true in any respect.

Take a look at these info. Amazon is the primary buying vacation spot on the earth. Over 60% of all web shoppers on the planet begin on Amazon in comparison with anyplace else. Not Google, not anyplace else. It’s Amazon. One other stat, when shopping for one thing new to a buyer, that means they’ve by no means purchased it earlier than, 9 out of 10 prospects worth test a product on Amazon earlier than shopping for. One other stat based on Jungle Scout, regardless of inflation issues, vendor profitability is up for 2023. This was a query that they requested all of their customers and their vendor profitability has been up in 2023. So, there are Amazon sellers who’re doing extraordinarily nicely with promoting on Amazon in 2023.

[00:06:59] REBECCA: So, when somebody says Amazon is saturated with too many sellers, they’re principally saying that since Amazon has too many sellers, nobody may make a sustainable revenue promoting on Amazon. For instance, if there are too many individuals in a restaurant, that restaurant is just too crowded for everybody. If there are too many individuals within the swimming pool, that pool is just too crowded for anybody to have enjoyable. If there are too many sellers, it’s not doable for anybody to make good cash. Besides we all know that’s not true.

[00:07:24] STEPHEN: Sure. Right here’s my tackle that query. Is Amazon saturated with too many sellers? It’s sure and no. That’s my reply. Does that shock you? Does that shock you?

[00:07:33] REBECCA: That’s the surprising reply you got here right here to listen to.

[00:07:36] STEPHEN: Sure, it relies upon. I imagine Amazon is saturated with too many novice sellers. However Amazon can positively tackle extra skilled sellers. And after I say novice or skilled, particularly skilled, I’m not referring to the way in which Amazon differentiates between particular person sellers who pay 99 cents per sale, {and professional} sellers who’re doing the $40 a month vendor price. I imply, Amazon can positively tackle an increasing number of sellers who deal with their Amazon enterprise as an expert enterprise, who know precisely what they’re doing.

So, if you happen to’re a vendor on Amazon, and also you’re considering of beginning and also you wish to stand out and be taught the ins and outs of truly changing into an expert enterprise vendor on Amazon, the type of vendor who efficiently sells your objects constantly on Amazon, who’s capable of make a full-time earnings promoting on Amazon. Then I wish to invite you to a free five-day on-line workshop known as The Amazon Revenue Accelerator Workshop, the place we’re going to indicate you easy methods to realistically make a full-time earnings promoting on Amazon in 2023. You possibly can join it at no cost, fulltimefba.com/workshop and signups are open proper now as you’re listening to this.

[00:08:43] REBECCA: This free on-line workshop goes to be nice so that you don’t wish to miss it. We’re going to indicate you easy methods to discover limitless sources of stock to promote on Amazon to get constant earnings. How one can make one of the best stock sourcing selections like what to resell, what to cross on, how deep to go on a purchase, easy methods to all the time have worthwhile stock in inventory. In addition to, the full-time earnings success path and how one can realistically snowball your Amazon earnings. There’s a lot extra however these are the highlights.

Once more, the hyperlink to the five-day on-line workshop is fulltimefba.com/workshop. So, is Amazon saturated? Sure. Amazon is saturated with too many novice sellers. However Amazon shouldn’t be saturated with high quality skilled sellers who know what they’re doing and know easy methods to make a full-time earnings promoting on Amazon. You possibly can understand how to do that too by attending our free workshop. The hyperlink one final time is fulltimefba.com/workshop.

As all the time, we now have the hyperlinks for you from this episode at our present notes for the episode, at fulltimefba.com/183. The hyperlinks will embrace the studies that we talked about, which have all of the stats that we have been overlaying earlier from Amazon, and it’ll even have a transcript of this episode. Fulltimefba.com/183 as a result of that is Episode 183.

[00:10:08] REBECCA: Subsequent week on the present, we’re going to be discussing unhealthy habits of unsuccessful Amazon sellers. So, let’s be sure to don’t have these habits and show you how to overcome them if you happen to do. We’ll see you subsequent week on The Full-Time FBA Present.


[00:10:23] ANNOUNCER: That’s all for this episode of The Full-Time FBA Present. So, head over to fulltimefba.com/podcast the place you can find the present notes and hyperlinks from this episode. Whilst you’re there, subscribe to our publication the place you’ll get a number of free downloads of our in style and useful Amazon FBA assets. Now, take motion on what you may have discovered as we speak so you could find success at turning part-time hours right into a full-time earnings with Amazon FBA.


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