Are you interested in learning how to sell on Amazon? Here's What You'll Need
If you have an established e-commerce business or just begin to establish your own brand it's likely that you've thought about the pros and cons of selling on Amazon.
In general, you'll earn the most money and create more capital for your company through the creation and maintenance of an online store on your website. With all the devices that make multichannel selling more effective -- as well as profitable -- than ever before, you can do simultaneously and swiftly expand your customer base.
If you're interested in trying to sell on Amazon or want to know a bit more about the process in the process, this article will show you how to sell on Amazon and the things you need to get started.
An introduction to Amazon's market
Amazon is the biggest ecommerce seller in the world, with the most likely being in the U.S., where 70% of Americans have Prime memberships. 56% of all ecommerce transactions within the U.S. happen on Amazon which has around 200 million monthly active app users. According to their own data approximately 7400 items are sold every minute across the U.S.
Amazon also ships to over 130 countries So if you're searching for international e-commerce customers, this is certainly the fastest and most convenient way to reach the widest world audience.
Ready? Let's dive into the basics you must know to sell on Amazon.
Types of Amazon seller accounts
There are two types of seller accounts on Amazon The two main types are Professional and Individual.
A majority of online businesses seeking a steady revenue stream and growth will want to go with the Professional option, since the Individual option charges fees for every transaction however the Professional version charges a fixed per month fee.
There are other selling fees both types of accounts have to pay for, but we'll look at them a little later.
Step-by-step instructions for creating your Amazon seller account
Amazon has produced a lot of material to help sellers set up accounts and begin selling. If you want to go through their documentation to get started, start on this page. But, we've broken the procedure into this simple procedure:
1. Set up a seller account
The process of creating your Amazon account is as simple as signing up. First, you'll create your username and password, and then go to the next step.
2. Select the Professional sales plan
Then, select the type of seller account you want to use. As mentioned already it is recommended to select the Professional plan if you're planning to increase your sales using Amazon. If, in terms of sales, you anticipate selling more than 40 products per month, you want an Professional account.
Amazon probably won't be the sole e-commerce marketplace or platform. In fact, it shouldn't be, because there are several advantages to also creating your own online shop using . However, Amazon lets you expand to markets that you couldn't reach very quickly through your store.
3. Enroll in Brand Registry
Amazon offers the Brand Registry service, which you have to use prior to constructing your own store. It also allows you to benefit from other tools and features on their platform like seller protections and Amazon Ads. Additionally, you can earn a 5% bonus on branded sales.
4. Make use of Stores Builder, the Stores Builder tool to create your online store
After you've signed up, you can use the Stores creator tool, as well as its drag-and drop features to design your own store. It's possible to select from three designs that you can choose from, and after selecting the one that you prefer, you'll be able upload products and start creating pages.
The tiles can be adjusted to display product pictures, videos, descriptions, as well as other material in a way that makes the most sense for your shop.
To get this far further, you'll need to obtain a registered trademark in the nation you're registering from and the logo.
5. Make your listing of products and begin selling
After you've selected your template, you can begin with the page manager. It will allow you to add products pages, make categories, make a home page, and whatever else you'd like to add as part of your Amazon storefront in order to increase revenue.
There are certain image size requirements, and you're limited to 200 characters per title, which is more than enough.
The "Perfect Launch"
Amazon loves to advertise the concept of a "Perfect launch" for new sellers, which means you complete five tasks within the first 90 days following the creation of your account as a seller. The five objectives are:
- Sign up to Brand Registry
- Create A+ content on your pages for products
- Set up Fulfillment by Amazon (we'll discuss this in the future)
- Automate your price using Amazon's machine learning technology
- Design and create sponsored ads, coupons, or deals
All this in just the initial 90-day period result more successful results according to their data, which is why they have called it the"Perfect Launch".
Once your store gets going, you can begin using the analytics of your company to develop product bundles or combinations that customers will like. This can increase sales, and allows you to pack several items into one package.
Optimize product listings for Amazon
Amazon's site operates much like the search engine. Customers can search for search terms in order to search for products, and Amazon will show them products that align with their search.
This is what needs to guide your approach to creating listing of products and to optimize the page that describes your products.
Keywords that are search-friendly
Use keywords that shoppers might be searching for and that pertain to your products. Use them in your titles and product descriptions. Utilize variations or keywords that complement each other when there's more than one way customers might talk about your product. Make use of models number, GTINs as well as SKUs.
Details and descriptions of the informational text.
Be specific with the descriptions you write and in the details, especially for products that have many variations, including colors, sizes, and flavors.
Also, use bullet elements to make your lists simple to read as well as focusing on the benefits in addition to product characteristics. Benefits refer to outcomesWhat does this product help me? What problem does it solve? What needs do I have which this product will meet and what is the best way to meet it? It is important to address these kinds of questions in your product descriptions as well as bullet points.
Great product images
Knowing the Amazon fees
As mentioned earlier There are only two options to pick from.
The Individual plan is priced at 99 cents for each sale. Each item that you sell on the internet under this plan will cost you 99 cents.
The Professional plan costs $39.99 per month, with an unlimited number of sales. This is where the concept of selling 40 products per month comes from. But even if you aren't sure if you'll be able to sell 40 products in the first month, you should still choose the Professional plan if you're committed to making this an integral part of your business online and anticipate to exceed that number in the future.
If you wish to market on Amazon or appear on the Buy Box or sell items in restricted categories (and there are plenty of them), and use other sophisticated selling tools, you'll need to purchase an Professional account.
Amazon is also liable for a variety of additional selling fees depending on the arrangement you make with Amazon. They also charge a variety of additional fees based on your arrangement with.
Referral fees
The two plans both charge a referral cost for every sale you sell, and they vary from 3% up to up to 45% in a couple instances. But the great majority of referral fees are between 8 and 15%, which is quite typical for online marketplaces.
ou can see many other charges, including referral fees on different product categories here.
Storage and fulfillment fees
If you involve Amazon for the delivery, packaging, or other fulfillment tasks, there will be a fee for that too, which is based on size and weight. If you use them just for shipping, you'll pay depending on the size and weight of your package.
There's additional costs when you utilize Amazon's warehouses to store your items. You might want to think about this due to some other benefits that we'll talk about shortly. Most important is the fact that you are able to offer two-day shipping for your customers under the label.
In the months of October and December, storage charges will be three times more expensive than the rest of the year, due to the holiday time.
Fulfillment options -- FBM, SFP, FBA
In the same way it is important to determine the best way to manage fulfillment.
You can choose to fulfill each order on your own and this is referred to as "fulfillment by merchant" (FBM). It is also possible to utilize seller fulfilled prime (SFP) A special option for experienced Amazon sellers. It's not something you're able to utilize if you're only starting out. And you can use Fulfillment by Amazon this is what they'd like customers to utilize as it comes loaded with incentives.
Merchants fulfill the order.
This option of fulfillment provides you with the most amount of control over your fulfillment process. You can manage your order's packaging for shipping, then keep them at your house or warehouse location. If you're using dropshipping, that's what Amazon permits, you'll probably choose this option.
One disadvantage of FBM is that you aren't able to take advantage of being an Amazon Prime seller, which has a variety of advantages.
If you decide to pay particular attention to your packaging process You may find it beneficial regardless of whether it means there are fewer customers who purchase through you due to long shipping times.
Seller Fulfilled Prime
Here, you still keep your inventory in your warehouse. However, Amazon takes care of the distribution procedure using carriers of their choosing.
However, you can't use this feature until you have you have Amazon store is:
- Offers premium delivery options
- Over 99% of orders on time
- Cancels orders with a rate that is less than 0.5 percent
- Utilizes Amazon Buy Shipping Services for the majority of orders
- Uses shipping methods that support weekends for delivery
- Completes successfully a trial period
Find out more information about the prerequisites.
Fulfillment through Amazon
Amazon shoppers enjoy Prime Day, and all aspects Amazon Prime. According to the statistics, approximately 70% of U.S. adults have Prime memberships. Therefore, whatever you are able to do to appeal to the Prime members is going to be advantageous with regard to sales.
When you choose FBA and you choose FBA, your Amazon business will receive the Prime Badge. When customers search on Amazon and search for a store, they have the option to narrow their search results based upon stores which have an Prime Badge. If you don't have this, you won't show up in search results for customers using this feature.
And even for shoppers who do not use filters to narrow their searches and aren't filtering their searches, they will still view the Prime logo beside your listing if you are employing FBA.
In addition, by using Prime Badges You can give Amazon Prime's two-day free delivery, as well as free shipping in general. Amazon handles the packaging, delivery, returns, and customer service issues.
FBA additionally allows customers to utilize Amazon's machine-learning technology to assist with managing inventory, which can help you anticipate consumer demand, so you don't purchase excessive or insufficient stocks.
It costs more to use fulfillment through Amazon however, you get a lot more too, and some part of the burden of managing your own online business will be taken off your back by the optimized Amazon fulfillment center.
It's an excellent choice for those who value the time and labor savings and do not want to be dealing with storage or shipping. If you prefer handling that things yourself in order to save money and time, then FBA isn't a good choice.
Wait -- inventory?
If you're just getting started in your venture it's likely that inventory is something that you might not have considered too much.
Inventory depends on several factors which will differ in each company, such as:
- The amount of channels you're selling to
- Your industry norms
- The types of products you market
- The size of your company
As you expand the channels that you're working with, the more products you'll sell. With regards to inventory, that makes it difficult to track everything.
As an example, let's say you have a warehouse with 50 units of stock of a specific product and you're able to sell 30 the items on Amazon within one month. You are feeling great and plan to restock your supply with another 50.
However, what happens if you're selling on your store, and then you've made 20 sales on items the following month on that platform. Your inventory will be full, and if sales increase at all over the following month it will require a greater than 50.
That's an oversimplified example, because sales do not happen all in a single day. But it demonstrates how important it is to constantly monitoring your inventory as well as the rate at which they're selling and what platforms they're selling through and each may have different fulfillment processes.
You also have to factor in items that could be not selling anymore, and expensive storage costs.
Wherever you're selling, you'll need a procedure for tracking all of the details. Here's more on Amazon on managing stock.
Customer service and maintaining an excellent rating for sellers
If you are learning the best ways to sell on Amazon, you'll find the process of interacting with your customers slightly more difficult than when you run your own store on Amazon. But you need to develop methods to deliver customers with excellent service standard to get great seller ratings.
The first step is that you use the descriptions of your products to answer as many questions as you can imagine customers could be likely to.
Second, use good images and other visuals to help clients to comprehend what they're buying.
Third, respond positively to any reviews you receive, even the negative ones. It shows that you're attentive to your customers and you want to provide the best possible service.
Then one, in Amazon there is the tool known as Brand Follow which provides an opportunity for your customers to connect with you even when they don't purchase items on their first visit. Anyone who chooses to follow you is informed of any updates to your products and you will have the opportunity to regain their attention.
Sell on Amazon Build your future around
With , you can benefit in endless freedom, total control, and powerful functionality -- all without selling fees on the platform. Furthermore, you will not have to worry about competing products showing up right in front of your own!
The ability to sell on several channels lets you reach the highest proportion of your customers and connect with them right in the place they're. has a wide variety of multi-channel extensions that allow the connection of your online store to Amazon, eBay, Etsy, Facebook, Pinterest, and more.