Crunching the Numbers: How Long Does it Take to Become Profitable as an Amazon Seller? - BellaVix

Crunching the Numbers: How Long Does it Take to Become Profitable as an Amazon Seller?

Crunching the Numbers: How Long Does it Take to Become Profitable as an Amazon Seller

 

I’m sure you thought of expanding your business to Amazon at one point in your business journey. After all, the trillion-dollar company has rightfully earned the title “eCommerce giant,” with roughly 3,700 new sellers joining Amazon every day and nearly 2 million small and midsize third-party businesses selling on Amazon.  While Amazon is rich in traffic, the majority of the categories are highly saturated, with fierce competition. To earn a spot in the market, there must be a combination of advertising and operational strategies and efforts. But how long will you need to invest in your strategies before you become profitable?  This is a reasonable question that, in most cases, never gets truthfully answered. Selling on Amazon doesn’t have a step-by-step guide set in stone applicable to every single brand. Your journey will depend on your brand’s uniqueness. Hence, estimating the time needed to get your brand to profitability isn’t as straightforward as it seems. That is precisely why many Amazon agencies and experts will overpromise and underdeliver.  At Bellavix, we analyze your brand in depth and adjust all our strategies accordingly to your needs based on your category and niche. Our dedication to understanding our partners’ brands and the complexity of the market they sell on has guaranteed their success and profitability on the platform. We aim for stable and constant growth. Therefore our growth forecast for each potential and existing partner contains realistic numbers.   

Achieving profitability on Amazon

An overview of all Bellavix partners

On average, our partners saw increased sales in the first three months of working with us. We use this period to understand the brand, the product, the company’s unique selling proposition, pain points, and goals. We build and implement strategies depending on the current issues and the overall account layout.   The results of these combined efforts will be visible in the upcoming months. Sales doubled the next quarter, and by the end of the first year, our partners were close to 4 times their initial sales. To my previous point, we aim for consistency in growth and profitability, especially in the long run. As a result, our partners’ brands gain a strong presence in their category and niche, positively affecting their sales on Amazon and achieving category dominance on Amazon.  Although, growth indeed looks differently for mature and small brands. The timeline isn’t the same, nor is the process. Does it take longer for small brands to achieve profitability on Amazon? And how long is longer? How much will I need to invest? What does growth look like for mature brands? Is the only aim market penetration? What can I realistically expect?  Questions I’m sure you’ve asked yourself at least once since starting to sell on Amazon or thinking of selling on Amazon.   

Reaching sales goals for Mature Brands on Amazon

An overview of all Bellavix partners

It’s no surprise that mature brands’ market presence differs from small brands. They own a larger share of the market. However, being at the top or staying at the top of the market is an ongoing challenge. Especially in a highly saturated marketplace like Amazon, with new competition joining every day.  Our partners saw an immediate increase in sales in the first three months of working with us, and by the end of the year, their sales increased by three times their initial sales.  As mentioned, growth and profitability look different for each brand. The same rules and processes do not necessarily fit all brands. These charts show a general overview of all Bellavix partners. This proves that working with us will guarantee growth, but how growth looks to specific brands, let’s look into that, shall we? 

A specific example of one of our partners. 

After partnering with Bellavx, this brand saw an immediate increase in sales. By the end of the year, our partner was at 14 times their initial sales. Charming growth, isn’t it? This is precisely why our team dedicates three whole months to understanding the brand and why we approach each brand individually. Our partner has been with us for three years. We have consistently surpassed each year’s sales by a significant difference.  The challenge with mature brands is to keep the growth flowing. It is crucial to understand where your brand stands, creating a combination of strategies that involve off Amazon efforts, utilizing all the possible Amazon features, and reacting based on your customer’s shopping behavior and niche seasonality.   

Reaching profitability for Small Brands on Amazon

An overview of all Bellavix partners

With small and launching brands, creating a presence is the toughest challenge. On average, our partners saw an immediate increase in sales. By the 4th month, they saw three times the growth from their initial sales. Due to market fluctuations, low seasons, and different events, brands see a slight decrease in sales in the 6th month. However, sales pick up, and by the 8th month, brands see close to 4 times their initial sales. On average, brands start seeing profitability after the 8th month and upwards. 

But let’s be more specific. 

A specific example of one of our partners. 

After partnering with Bellavx, this brand’s sales doubled in the month 4 – 6. And by the end of the year, our partner was close to 9 times their initial sales. As expected, growth and profitability are a lot slower for small brands. However, with the proper strategy in place, and the right time, it is very much achievable.

Be the next success story.

At Bellavix, we care about your brand. Growing and being profitable on Amazon isn’t an easy challenge. We aim to scale your business and achieve your brand’s true potential.  Interested in understanding what works for your brand and how to reach your goals? Let’s talk!    If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to contact the BellaVix Team

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