Amazon is the world’s largest online marketplace and boasts over 300 million registered users. It’s also one of the most profitable businesses in the world, with an annual revenue of $177 billion in 2017. If you have products you can sell online at a competitive price, Amazon is a brilliant place to begin your new business venture. However, like any other marketplace, Amazon has its pros and cons from a seller’s perspective. Here are some things you should know before getting started as an Amazon seller.
To start with, Amazon is a business. Although they want to provide an amazing service to their customers, they also want to make as much money as possible. Because of this, Amazon has specific rules and regulations in place for sellers to follow. You’ll need to create an Amazon seller account, abide by the rules, and pay monthly fees for the privilege of selling on their site. Amazon also has strict terms for product listing and seller ratings. Sellers can expect to get many product reviews, especially when starting out, and some negative reviews are inevitable. You’ll need to manage your feedback like any other online business, and with Amazon’s strict feedback policy, this can be tricky.
Decide Which Type of Seller You’ll Be
Amazon has three types of sellers: Individual Sellers, Professional Sellers, and Retail Sellers. The difference lies in the fees, branding, and expectations Amazon has of you. - Individual Seller: This is the cheapest option and is designed for people who are just starting out in the world of Amazon. However, you’ll need to be patient since orders will be fulfilled by Amazon themselves and you may have to wait longer to get paid. - Professional Seller: This is the next step up, and it’s designed for people who are looking to get into the Amazon platform seriously. With this, you can set your own shipping schedule, photos, and branding. Amazon will also assist you in resolving any customer issues that may arise. - Retail Seller: This is for businesses who look to sell their products on Amazon on a large scale. You’ll need to pay an upfront cost of $10,000 to start out, but you can expect quicker shipping times and higher fees from your sales.
Determine Your Amazon Product Strategy
Before you decide which products to sell, you’ll need to know that Amazon has strict product guidelines in place. You won’t be able to sell products that contain any of these rules. - Products must be new and cannot be refurbished. - Products must be unopened if they are consumable, such as beauty and health products. - All products must be sold at a fair price that is competitive within the marketplace, and they cannot be listed as a “deal of the day”. - Products must be listed in the correct category, and they cannot be listed as a private label product. - Amazon has a strict policy against offensive content, which includes products that promote discrimination, racism, and bigotry.
Create a Product Inventory
While you’re getting your Amazon seller account ready to go, it’s also a good idea to create a product inventory. This will help you decide exactly which products to sell on Amazon and give you an idea of how much you’ll need to order. It’s not uncommon for online sellers to have thousands of unsold products in their warehouses, so it’s best to be prepared. Before you decide which products to sell, it’s important to take a look at the competition and see what’s selling in your industry. Amazon has a section called “Best Sellers”, which can give you an idea of what’s earning the most money. You can also use Amazon’s “Search” function to see how many competing products are listed and what they’re selling for.
Estimate Your Costs
When it comes to being an Amazon seller, there are many costs to consider. Before sinking thousands of dollars into a new product line, you should take a look at your budget and decide how much you can afford to spend. - Listing Fees : These fees are what you pay to list your products on Amazon. You can expect to pay between 35% and 40% of your product’s selling price to list the item on Amazon. - Product Costs : You’ll need to consider the costs of the product itself, basic shipping supplies (such as boxes and bubble wrap), taxes, and any other additional fees that may apply. - Shipping Costs : These costs depend on how much you’re shipping, where you’re shipping to, and which shipping service you choose. - Inventory Management : Your inventory will need to be managed and stored, and you’ll need to consider the cost of any rental space or warehouse space. - Marketing : You’ll need to consider the cost of marketing your products on social media, as well as any marketing materials you’ll need to create. - Repairs/ Replacements : You may encounter situations when customers are not happy with their purchases and request a refund or a replacement. You’ll need to have money on hand for these sorts of things. - Insurance : Like any other business, you’ll need to have insurance to protect yourself from unforeseen circumstances.
Choose The Right Amazon Marketplace
There are eight different Amazon marketplaces you can list your products on, and you’ll need to decide which one is best for you. Amazon.com: This is the largest marketplace and is a good place to start if you’re just getting started in the business. Amazon.co.uk: This marketplace is popular with British shoppers, and it’s the second-largest marketplace in Europe. Amazon.ca: This marketplace is the most popular site in Canada. Amazon.de: This marketplace is popular with shoppers in Germany. Amazon.fr: This is the largest marketplace in France. Amazon.it: This marketplace is popular with Italian shoppers. Amazon.es: This marketplace is popular with Spanish shoppers. Amazon.com.mx: This marketplace is the most popular site in Mexico.
Develop your product listing
This is the main place where customers will interact with your product. It’s important that you take the time to create a well-written product listing, and you can follow these helpful tips to make the most of your time. - Use Images : Customers love images, and they’re a great way to engage customers. You’ll need to follow Amazon’s image rules, but images are a great way to boost your sales. - Include Key Product Information : You’ll need to include product information such as the product title, description, features, price, etc. - Put Your Best Content First : Customers scroll through Amazon’s product pages and are often more interested in the first few lines of information than the rest of the page. - Ensure Your Listing is Well-Organized : Your listing should be easy to navigate, and it should be presented in the best possible way. - Follow Amazon’s Guidelines : Amazon has strict guidelines for product listings, and you’ll need to follow them to a “T”.
Conclusion
Amazon is a great place to start a new online business. It’s easy to begin selling products on Amazon, and it can be a very profitable business. You’ll need to choose which products to sell, create an inventory, and create an attractive product listing. Once you’re ready to publish your listing, you’ll need to find an Amazon marketplace that’s right for you and start getting sales. It’s a great place to start a new business, and you can even go into business with your friends
