Do you want to learn how to Sell on Amazon? This is What You'll Have to Know
If you have a thriving ecommerce store or you're just beginning to build your brand, you've probably considered the advantages and disadvantages of selling products on Amazon.
In general, you'll earn the most money and create more equity for your business through the creation and maintenance of an online store on your website. But, thanks to all the devices that make multichannel selling more effective as well as profitable -- than ever before, you can do both at the same time and rapidly expand your reach.
If you're interested in trying out selling on Amazon, or you just would like to find out more about how it works, we're going to show you how to sell on Amazon, and what you'll need to do in order to begin.
An introduction to Amazon's marketplace
Amazon is the most popular e-commerce retailer in the world with the most likely being in the U.S., where 70% of Americans are Prime members. About 56% of eCommerce purchases across the U.S. happen on Amazon with 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 seeking global e-commerce customers, this is certainly the fastest and most convenient way to reach the widest world audience.
Ready? Let's look at the basics you must know to sell on Amazon.
Types of Amazon seller accounts
There are two primary types of seller accounts on Amazon The two main types are Professional and Individual.
The majority of e-commerce companies looking for consistent revenue and growth will want to select the Professional model, as the Individual option charges an amount for each sale however the Professional version charges a fixed monthly fee.
There are other selling fees each type of account has to pay, but we'll cover those a bit later.
An easy guide for setting up your Amazon seller account
Amazon has created a ton of information to assist merchants create accounts and start selling. If you want to go through their manual to get started, begin on the following page. But, we've broken the procedure down to this basic procedure:
1. Set up an account to sell
Beginning the process of creating your Amazon account is as simple as signing up. First, you'll create your username and password and you can go on to the next step.
2. Pick the Professional selling plan
Then, select the seller account type you want to use. Like we said, you'll want to pick the Professional plan if you're planning to grow your business using Amazon. When it comes to sales terms, if you plan to sell over 40 items a month, you need the Professional plan.
Amazon will likely not be your only ecommerce marketplace or platform. In fact, it shouldn't be since there are several benefits to developing your own store with . However, Amazon enables you to expand into new markets that you couldn't reach very quickly through your store.
3. Enroll in Brand Registry
Amazon offers an Brand Registry service, which you have to use before you are able to build your own store. It also allows you to make use of the various tools and features on Amazon's platform, including seller protections and Amazon Ads. Additionally, you can earn a 5% bonus on branded sales.
4. Make use of this Stores Builder tool to create your own online store
After you've signed up, you are able to use the Stores builders tool as well as its drag-and-drop features to create your store. There are three design templates after which, once you've selected the one you like, you'll be able to create products by uploading them and then start building pages.
You can adjust the tiles to display product pictures video, descriptions, as well as other material to make the best sense for your store.
To get this far further, you'll need to obtain an approved trademark for the country you're enrolling from and a logo.
5. Create your product listings and start selling
With your chosen template, you are able to start with the page manager. It will allow you to include product pages, create categories, design a homepage or whatever else you want to include as part of your Amazon storefront in order to increase revenue.
There are certain image dimensions that you must meet You're only allowed 200 characters per description, which is sufficient.
"Perfect Launch," or the "Perfect Launch"
Amazon likes to promote the idea of the "Perfect launch" for new sellers that is, you must complete five objectives within the first 90 days following the creation of your account as a seller. Those five tasks comprise:
- Join the Brand Registry
- Create A+ content on your pages for products
- Create Fulfillment by Amazon (we'll go over this later)
- Automate pricing with Amazon's machine-learning technology.
- Design and create sponsored ads coupon codes, sales, or other deals
All this in just the initial 90-day period result with significantly higher results, in accordance with their studies and that's the reason they call it the"Perfect Launch".
Once your store gets going, you can begin using the analytics of your company to design product bundles and combinations that customers will like. This will increase sales as well as enables you to bundle many items together in one shipping.
Optimize product listings to be able to use Amazon
Amazon's site functions much as an engine for searching. Customers can search for the keywords they want to search for that they are looking for, and Amazon will show them products that align with their searches.
It is the information that should be the basis for your strategy to create the product listing and improving the page that describes your products.
Keywords that are search-friendly
Utilize keywords shoppers may be searching for and that pertain to your product. Use them in your titles and product descriptions. Make use of variations or other keywords when you have more than one method customers might talk about your product. Utilize models number, GTINs as well as SKUs.
Details and descriptions of the informational text.
Make sure you are precise in your descriptions and details, especially for products that have many variations, like sizes, colors, and flavors.
Also, use bullet elements to make your lists easier to comprehend, and concentrate on the positive aspects in addition to the product features. Benefits are about outcomes -What can this product benefit me? What is the problem it addresses? What is the need which this product will meet and how can it fulfill the need? You should answer these sorts of questions in your descriptions of the product and bullet points.
Great product images
Understanding Amazon's fees
As mentioned earlier, there are really just two options to pick from.
The Individual plan costs 99 cents per sale. Each item that you sell on the internet under this plan will cost you 99 cents.
The Professional plan is $39.99 per month. It comes with unlimited sales. The idea selling at least 40 products per month comes from. However, even if you're certain if you'll be able to make 40 sales in your first month, you must opt for the Professional plan if you're committed to making this an important part of your online venture and hope to increase that amount in the near future.
If you wish to market on Amazon, show up on the Buy Box, sell products from restricted category (and there are many of these) in addition to using other modern selling tools, then you'll need to purchase the Professional plan.
Amazon is also liable for a variety of extra selling charges based upon the agreement you have with Amazon. They also charge a variety of additional fees based on your arrangement with.
Referral fees
Each plan charges a fee for each sale made, and the fees can range from 3% or up to 45 percent in certain instances. However, the majority of the fees you pay for referrals range between 8-15%, which is fairly typical for online marketplaces.
There are many additional charges, including referral fees on diverse categories of product here.
Fees for fulfillment and storage
If you involve Amazon in all of your shipping, packaging, or other fulfillment tasks you will pay an additional cost for this too, which depends on the dimensions and weight. If you use them just for shipping, you'll pay according to both of these factors.
There's additional costs if you use Amazon's warehouses for storing your products. You might want to think about this due to additional advantages we'll go over later. The biggest one is the possibility of offering 2-day shipping with their own name.
In the months of October and December, storage costs will be three times more expensive than the rest of the year, due to the holiday time.
Fulfillment options - FBM, SFP, FBA
Like we said, you have to decide the best way to manage the process of fulfillment.
It is possible to complete all your orders yourself and this is referred to as "fulfillment by retailer" (FBM). It is also possible to use seller fulfilled prime (SFP), a special option for experienced Amazon sellers that you can't use yet if you're just beginning to get started. And you can use Fulfillment by Amazon that is what they would like you to use which is filled with incentive programs.
Fulfillment by merchant
The fulfillment service offers you the highest degree of control over your fulfillment process. It allows you to handle your orders, package them for shipping, then keep them at your house, warehouse, or other place. If you're doing dropshipping, that's what Amazon accepts, you'll most likely opt for this method.
The downside of FBM is that you aren't able to avail the benefits of becoming an Amazon Prime seller, which comes with a number of benefits.
However, if you wish to take extra care in the packaging procedure You may find it beneficial in the event that fewer people order from you because of the longer shipping time.
Seller Fulfilled Prime
In this case, you maintain your inventory at your warehouse. However, Amazon handles the delivery process using carriers of their choosing.
But, you won't be able to use this till you've got your Amazon store:
- Offers premium shipping options
- Delivers more than 90% of all orders within time
- Has an order cancellation rate lower than 0.5%
- Uses Amazon Buy Shipping Services for the majority of orders
- Uses shipping methods that support the weekend delivery
- Achieves the goal of completing a trial
Learn more about the specifications.
Fulfillment by Amazon
Amazon customers love Prime Day, and all things Amazon Prime. According to the statistics, approximately 70% of U.S. adults have Prime memberships. Thus, any thing you can make to attract those members will be advantageous with regard to sales.
If you opt for FBA and you choose FBA, your Amazon business will receive a Prime Badge. When people search for items for a store on Amazon you can select to narrow their search results based on the stores that have an Prime Badge. So, if you don't already have it, you will not show up in search results for those with this option.
For those shoppers who don't filter their searches however, they'll still be able to see the Prime logo next to your listing when you're making use of FBA.
Also, with Prime Badges, you can provide Amazon Prime's complimentary 2-day shipping, and all-free shipping. Amazon is responsible for shipping, return, packaging and issues with customer service.
FBA additionally allows you to make use of Amazon's machine learning software for inventory management, which helps to plan for future consumer demand, so you don't buy too much or too little stock.
There is a cost increase for Fulfillment through Amazon however, you get a lot more also, and a lot tasks associated with running an online store is lifted from your hands by having an optimized amazon fulfillment center.
This is a great alternative for companies that appreciate efficiency and time and don't wish to deal with shipping or storage. If you'd prefer to handle the task yourself, to cut costs but you're not sure, FBA isn't a good choice.
Wait -- inventory?
If you're just getting started on your business the inventory aspect is one you may not have thought much about.
Inventory depends on several factors which will differ depending on the business. These include as:
- The number of channels that you're selling on
- The rules of your industry
- Types of goods you market
- The size of your company
The more channels you're working with and the greater number of products you'll be able to sell. With regards to stock, this makes it harder to keep track of everything.
For example, suppose you have a warehouse with a stock of 50 for one particular item, and you're able to sell 30 the same items on Amazon over the course of one month. You are feeling great and intend to replenish your inventory with another 50.
What if, however, you're selling your products on your store and you sold 20 more products the same month through that site. That means your supply is full, and if sales are increasing at all in during the month following it will require a greater than 50.
That's an oversimplified example, since sales aren't always happening in a single day. But it demonstrates the need to be continually monitoring your supplies and the speed at which they're selling, and the channels they're selling on and each could have different fulfillment procedures.
Also, you must factor in items that could be perishable, items that aren't being sold anymore, as well as high storage costs.
Whatever you're selling, there's a way of monitoring all this. Below is more info on Amazon regarding the management of inventory.
Customer service and maintaining a high seller rating
As you learn the best ways to sell on Amazon, you'll find the process of interacting with your customers a little harder than with your own store on Amazon. You must create procedures to offer the best customer service on a standard to get high seller ratings.
The first step is to use your product descriptions to answer as many questions as you think customers might be likely to.
Second, use good images along with other pictures to make it easier for customers to see and understand the product they're purchasing.
3. Respond positively to every review regardless of the reviews that you receive, even negative ones. This will show that you're conscious of the reviews you receive and want to deliver the best possible service.
And last one, on Amazon there is a tool called Brand Follow, which is an option for buyers to join your list even if they do not purchase anything on their first visit. If they choose to follow you will be alerted of new product releases, so you have a chance to recapture their business.
Sell your product on Amazon Build your future with
By using the platform, you'll benefit from endless flexibility, full control, and powerful capabilities -- all without selling costs from the platform. Plus, you won't have to fret about rival items appearing next to yours!
The ability to sell on several channels lets to reach the largest proportion of your customers and reach them in the place they're. has a wide variety of multi-channel extensions that allow the connection of your online shop to Amazon, eBay, Etsy, Facebook, Pinterest, and many more.