How to sell on Amazon
How to sell on amazon
Amazon is an American electronic commerce and cloud computing company. Which is very famous now a day for its e-commerce website Amazon.com. Over 50% Amazon’s sales goes to third-party sellers like you and me. So there are a lot of opportunities as a seller on amazon. You can sell your stuff on amazon and is very easy to setup a seller account on amazon. Follow this guide to quickly set up your seller account and start earning money.
This is the most comprehensive step-by-step guide for starting your own successful Amazon FBA (fulfilled by amazon) business. Actually this very important to have your product amazon verified because it attracts more users to attract to your product.
Here are the steps which you should follow to have an amazon seller account:
- Find Products to Sell on Amazon
It is very important that your product is of very good quality so that your product has a good reputation. Some sellers follow traditional business models, like selling products they make themselves or reselling wholesale goods. But many sellers reach beyond traditional means and source products in a variety of creative ways. You can tie up with a small firm and sell their product.
Retail Arbitrage is buying a product for a certain price off the shelf of a retail store and reselling that product for a profit.
Some of the most successful members in our E-Commerce Empire training program started off making money with retail arbitrage, and then used those profits to launch their multi-million-dollar private label brands.
…So perhaps that’s exactly what you should do, too.
Private labelling is buying a product from a third party supplier and creating your own brand that you use to sell that product.
Manufacturing & Handmade Goods
If you already make something yourself, then you know what you’re going to sell on Amazon. Your biggest challenges are understanding Amazon’s seller fees for handmade goods to make sure you can sell your products profitably and keeping up with production in the lucky event that your product is a hit.
Reselling Wholesale or Manufactured Goods
This is a more traditional method where you purchase goods in bulk from a wholesale distributor or direct from the manufacturer, then resell them at a markup. On the plus side, you can get low wholesale pricing that leaves plenty of room for profit. But, a serious downside is that you usually have to buy goods in volume. You really need to do your product research homework before taking the plunge on a large shipment from a wholesaler or manufacturer. If you don’t, you could lose money and be stuck with unsold stock.
Selling dropship products on Amazon is another low-cost way to get started, but it’s not for everyone. With drop shipping, you list an item for sale and, when ordered, your dropship vendor ships it for you, and only then are you charged for the item. It sounds like a sweet deal but there are several potential pitfalls with this model, especially when selling on Amazon.
- Select and Set Up Your Amazon Seller Account
You can choose between two types of Amazon seller accounts, an Individual Seller account, and a Pro Seller account. Pro accounts give you access to far more features than Individual plans but have a $39.99/mo. fee. Individual accounts are $0/mo. but charge 99¢ per-item fees. Plus, both accounts pay product fees when items sell.
Most sellers opt for Pro accounts because of the many sales-driving features you get as a Pro Seller. But you can always start out with an Individual account, then upgrade. For example, if you’re just dipping your toe into Amazon using retail arbitrage an Individual plan can get you started with minimal costs. But, if you’re investing money in wholesale or private label products, the Pro plan is the best from day one.
Here’s are highlights of what you get, and what you can do, with each Amazon seller plan:
To set up your seller account, select your Seller Plan, then follow Amazon’s account setup wizard. This is the wizard for the Pro plan:
Once you complete this, you’ll have access to your Seller Central Dashboard and can start listing products to sell on Amazon. Now let’s look at all the ways you can do that.
- Create Your Product Listings on Amazon
Amazon sellers can create product listings in two ways. You can add your items to existing product listings or create a new product listing for an item. Adding items to existing listings is by far the easiest of the two, and this is how most new sellers get started on Amazon. So we’ll begin here.
Manually Add Your Product to an Existing Listing
A quick Amazon shopping search will show you if other sellers already sell your product on Amazon. For example, the Rodeo Bracelet we want to sell has an existing listing with another seller, as shown below:
If at first selling something already listed for sale seems like a waste of time because of competition, remember that sellers often have just a few items in stock. As competitors sell out, your listing will be the one available, and the one shoppers buy. Of course, you can also lower your price, offer free shipping, or use FBA (discussed below) to make your listing shoppers’ top pick, too.
Manually adding your product to an existing listing is easy in your Seller Central Dashboard. Simply search for the item under List a new product using the product name, Amazon product ID, or item SKU:
Click on Sell Yours, and you can add your item information, like your price and quantity available, by filling in a few fields on the next screen, shown below. Required fields have an asterisk (*), others are optional:
Once complete, hit Save & Finish. Now you have a live listing on Amazon, ready to sell. That’s all there is to it! Here are a few things to keep in mind when you add products to existing Amazon listings:
Pick the Best Listing
You might find multiple listings for the same item. To start out, look for the top-ranked listing with the best information, images, and product reviews. Adding to multiple listings can create inventory problems if you don’t closely watch your numbers.
Monitor & Match Pricing Profitably
When you add your product to an existing listing on Amazon, you’re going to have competition for sales. Repricing tools like the Amazon Repricer from BQool are what top sellers use to monitor and match competitors’ prices and avoid unprofitable price wars. The Repricer automatically tracks your prices and competing offers 24/7. When a competitor changes their pricing, the Repricer automatically adjusts yours, based on parameters you set, to keep your listing competitive and in the Buy Box.
To ensure that your automated pricing is profitable, BQool’s Amazon Repricer also tracks your products’ Amazon seller fees, wholesale prices, and shipping and FBA fees, and figures these costs into your profit margin. This data lets you make informed decisions on your current product pricing, plus helps you research and spot new profitable products to sell on Amazon. To see how a repricer helps increase your Amazon sales and profits, you can try BQool’s Repricer for free for 14 days, no credit card required. After that, it costs just $25/month to manage pricing for up to 1000 listings.
- Manage Your Inventory on Amazon
Managing inventory accurately is key to your success on Amazon. Amazon will lower your Seller Rating for not shipping an order for an item that you show in-stock. Like product listings above, you have several choices when it comes to inventory management. Whichever method you choose, keep inventory updated to keep your Amazon seller ratings high.
Note, Amazon automatically reduces your inventory count as your Amazon items sell. If you sell only on Amazon, this should keep your counts correct. But if you sell the same stock on your own website or in a retail store, you’ll probably need a better solution.
Manually Adjust Inventory
You can manually adjust inventory levels within your Seller Central dashboard inventory screen. If you sell just a few items on Amazon, manual adjustments can be made by changing the Available units, as shown below. This isn’t too time consuming if you sell just a few products.
- Ship Amazon Orders Yourself: Fulfillment by Merchant (FBM)
Many Amazon sellers start out shipping Amazon orders themselves. Plus, many established ecommerce sellers ship all Amazon orders from their own warehouse. Amazon calls this Fulfillment by Merchant or FBM.
If you choose to go this route but are new to shipping, Amazon makes it pretty easy to handle on a small scale. You can choose to charge for shipping products or offer free shipping. Plus, you can print orders and print both US Postal and UPS shipping labels right from your Seller Central dashboard. You’ll need to have packing materials ready-to-go, too, including:
Filler such as paper or bubble wrap
A shipping scale
Easy access to shippers for package drop-off, or a secure place for pickup
Packing a few orders each week isn’t overwhelming for most, but remember! It must be done in a timely manner. That’s why sellers of all sizes tend to use our next option.
What Are the Benefits of Using the Fulfillment by Amazon Program?
There are a few key benefits to selling on Amazon using the Fulfillment by Amazon program.
The biggest one that impacts Fulfillment by Amazon sellers is the free shipping benefits offered to customers:
The screenshot above takes a look at some of the benefits that shoppers on Amazon have who are a part of the Amazon Prime program. Amazon is rolling out some additional benefits and now offers, free one day, same day, and 2 hour delivery on certain items in select cities.
When you sell on Amazon using the Fulfillment by Amazon program, your items are available for all of these prime shipping benefits. That means customers can get Free 2 day shipping on the items that you sell. The fast shipping times are very appealing for customers, and makes them more likely to purchase an item from you versus a seller whose item is not available for prime shipping.
In addition to the fast shipping, customers also know that items that are shipped via Prime will have the same return policy as items that are sold by Amazon.com themselves. What this means is that customers can be extremely confident that their items will arrive exactly as described and when expected. In the unlikely even that their expectations are not met, then they know that Amazon’s customer service will get the issue resolved for them.
The extreme confidence that customers have in the program are 2 major benefits that will help your items to sell faster. The other key benefit that I will mention is that Amazon does most of the heavy lifting when you use the Fulfillment by Amazon program when selling on Amazon. You are able to ship items to Amazon in bulk, and they handle getting the items to the individual customers.
Use a Third-Party Fulfillment Partner
Another option that takes fulfillment tasks off your plate is using an outside fulfillment company. Like FBA, these businesses store, pack, and ship your products for you. However, it’s considered Fulfillment by Merchant (FBM), since you use a company of your choosing. And, since it’s not FBA, you don’t get the sales-driving perks listed above.
A fulfillment partner is really geared for higher-volume multichannel ecommerce companies that sell in many places, including websites, Amazon, and other marketplaces. It’s rarely a good choice for a low-volume Amazon startup. But, you should be aware of this option in case your growth takes you beyond strictly selling on Amazon.