Popular with sellers and customers, it is not surprising that Amazon is a multi-billion dollar company. The site offers vendors an easy way to showcase their products to a global audience getting started on the platform may seem daunting, but it’s easier than you think. In this guide, we will show you how to sell on Amazon in just five easy steps. Here’s what you need to know to get started:
There are two different ways to sell on Amazon
There are two different ways to sell on Amazon, but they are not mutually exclusive. You can use both options together. You can send you’re slow, large, or heavy items yourself, relying on Amazon to send your products light and fast.
Made by Amazon (FBA)
FBA means you send your products to Amazon’s warehouse and when you sell a product, Amazon sends it to you. There is a caveat: in addition to your monthly service fee, you must pay a monthly inventory collection fee.
Along with the FBA, Amazon also takes care of all customer support. If you do not have a place to store your inventory and you are right about controlling Amazon, you may want to use FBA. The most suitable products for FBA are small and light with fast turnover.
Run the product yourself
Also known as Merchant Flower (FBM), it means you store and ship your products. You also handle all customer service, so it’s important to have a system in place to answer any queries and inquiries you may have with your products.
Vendors whose products do not sell heavy or bulky and fast use FBM. Thus they are not paying for a product to be stored in an Amazon warehouse. The argument is that the longer the product stays on the Amazon warehouse shelf, the more it will cost, thanks to the longer storage fees.
Get started selling on Amazon in 5 steps:
Here is how to sell on Amazon in just five easy steps:
1. Conduct market research
Before you start selling on Amazon, you should check the list of banned products. Some categories, such as jewelry or DVDs, require approval before listing, while some products are completely banned. Prohibited products are generally federally regulated.
To narrow down a potential product, consider personal labeling on a successful product. This simply means that the manufacturer adds your company’s label to an existing product. See which products are popular and trending.
Once you’ve decided on a product or product niche, look at the top ads for what you want to sell. Is there a lot of competition? If all competitors offer prime shipping, use FBA and have 4.5 and 5 star reviews, competition can be tough.
You want a product that is in demand but has fewer barriers to entry. Once you have a product, you need to find a supplier. Discuss and ask for samples – the last thing you want is a product that breaks down easily or doesn’t look like the picture.
After finding a supplier, you need to calculate your unit cost. Is your margin enough to make your product effective? Otherwise, you may have to consider another product. Ideally, you have enough margin to offer discounts or coupons. You may need to test a number of options before settling on your first product.
2. Set up a seller account
- To create a seller account, you must have the following information:
- Bank account number and routing number
- Credit card
- Government-issued national identity card (such as driving license)
- Tax information
- Phone number
After collecting these details, go to the seller center and choose a sales plan the personal sales plan is best for those who sell less than 40 units per month. Think of it as a pay-as-you-go plan because it costs only $ 0.99 per sale.
Professional sales plans are ideal for vendors who sell more than 40 units per month and need access to advanced reporting and APIs. To sell a Launchpad or handmade, you need to have a business account. No matter how much you sell, the professional costs 39.99 per month.
3. Add Product
There are two ways to add products: Use an existing list of similar products or create a new listing. If you are the sole seller of a particular product, you must use a new listing.
A list includes the following details:
- Product identifier (GTIN, UPC, ISBN or EAN)
- SKU (Stock Keeping Unit)
- Pricing, Product Conditions, Available Quantities and Shipping Options
- Product name, brand, category, description and picture
- Keywords and search terms
Your product description must be optimized for search engines (known as SEO). Researching keywords for your ads is an important part of SEO. The idea is to add keywords to your list that people are searching for, and adding irrelevant keywords can hinder your visibility. If writing isn’t your strong suit, consider hiring a copywriter to write customized product descriptions for you. You can find writers on platforms like Fiverr and Upwork.
Likewise, pictures are just as important as product details. Photos must have a white background and be at least 500 x 500 pixels in size. For high quality listings, increase the file size to 1000 x 1000 pixels. Many vendors use Lightbox to take product photos; Otherwise, some companies may take pictures for you when you ship their products.
4. Attract Customers
With the sheer volume of Amazon listings, you have to be different. The best ways to attract customers include pricing, shipping, and advertising.
Set a competitive price. Amazon has built-in reseller tools that automatically resell your listings at a customized price based on parameters you set (so you’re still making a profit). It also has wholesale prices to attract customers to the Amazon business.
Run fast If you haven’t used Amazon Prime shipping, make sure you have your product shipped quickly when using FBM.
Advertising with Sponsored Ads. When you convert your ad to a sponsored ad, it appears on product pages and in search results. These ads work on a cost-per-click (CPC) basis. This means that every time someone clicks on your ad, you pay for them, whether they make a purchase or not. It could be a penis, or it could cost a few dollars per click.
5. Get Reviews
When you ask your customers for reviews, there are strict rules about what is acceptable and what is not. If you are caught defrauding your customers for review, your account could be permanently blocked, funds withheld, and even legal action could be taken.
Here’s what you can do:
Ask for reviews, but don’t offer compensation, free products, refunds or discounts
Sign up for Amazon’s Early Reviewer Program, which encourages reviewers to provide authentic reviews.
Just because you’ve seen another Amazon seller doesn’t mean its okay. Getting caught and losing your seller’s account is not worth it.
While the steps for selling on Amazon are relatively simple, success lies in choosing the right product and optimizing your listing carefully. Staying ahead even after seeing success requires constant maintenance.