How to sell on Amazon for Beginners

how to sell on Amazon for beginners

Last updated on December 11th, 2020

Written by Nicasio Co III

With the global pandemic ongoing, aspiring entrepreneurs might think opening a business will make them start on the wrong foot. Surprisingly, the current phenomenon has opened a more significant opportunity for the e-commerce market. If you’re unsure where to start, here’s a guide on how to sell on Amazon for beginners.

Opportunities on Amazon

There have been more than 256 million online shoppers in the US, recorded this 2020; this number is more or less a third of the whole population. This figure is only expected to rise in the following years.

Among the 256 million online shoppers, 92% of this population has bought an item on Amazon, while 44% of the 256 million are registered Prime shoppers (source). These Prime members are proven to purchase more frequently and in more significant quantities than regular shoppers as they try to take advantage of the free and fast shipping benefit that the membership grants.

More than half of online shoppers proceed directly to Amazon to do their searches, beating actual search engines like Google and Bing. This means that Amazon has solidified its place as a trusted household name when it comes to online shopping. 

In another study, 9 out of 10 respondents shared that they are more likely to make a purchase on Amazon than any other retailer site.

With those promising numbers, it is only natural for sellers to flock to Amazon. In fact, another few thousand sellers are probably registering in the marketplace right now as you’re reading this article. Ergo, an overwhelming number of competitors calls for intensive product research, winning marketing strategies, and efficient operations management. These things apply to all businesses, whether online or offline. However, starting a business on Amazon would entail understanding data and analytics. 

Best products to sell on Amazon

With millions of products available in the Amazon marketplace, it could definitely be challenging to start. Fortunately, there are tools and services specifically dedicated to launching and marketing product listings. But before we get ahead of ourselves, we must focus first on product development and knowing what to sell, to begin with.

The safest products to offer would be toys, clothes, and accessories. You can quickly develop a private label and come up with unique designs to help your brand stand out. However, you should be aware that clothes and accessories are also the most competitive departments in the marketplace.

When deciding the best products to sell on Amazon, it is essential to find the product that you are most interested in. It may sound cliche, but working on something that interests you will motivate you to thrive in the market and innovate. For example, the cosmetics industry is arguably one of the most saturated industries when it comes to competition. But, with a little bit of innovation when it comes to shades, formulation, and a targeted market, you can definitely come up with a product line that can thrive.

If you’re really determined to take a saturated market shot, you can at least give yourself an edge by offering a competitive price. You can do this by engaging in the wholesale business and looking for direct manufacturers. This way, you can work on a more significant profit margin with some space for possible discounts and price markdowns. A bigger profit margin can help you invest in services that will further grow your business.

How to start an Amazon business

Selling on Amazon entails almost the same processes that it would take to put up a regular business, aside from the fact that this is online. You have to follow Amazon’s specific guidelines. When starting an Amazon business, here are some tips that you could apply in the process:

1. Find a product

Whether you’re reselling products from an already existing brand or trying to innovate and create your own private label, it is essential to choose high-profit products and low competition. To have a healthy margin, consider getting products directly from a manufacturer and buying in bulk. With that kind of profit, you’ll have to meet a lower quota and have enough allowance for sales and discounts. 

2. Find a supplier

As mentioned above, it would be best to find a direct manufacturer to save additional fees that buying from distributors would entail. You can find manufacturers either from product listings on Amazon or actual product packaging. You can also meet manufacturers in bazaars and trade shows. So far, the easiest way is to buy wholesale products from Chinese manufacturers through Alibaba.

3. Set up an account

When setting up an Amazon seller account, make sure that you have your business details ready, such as your business email, business address, bank account, and tax information. You should also have optimized listings prepared to easily avail of PPC advertising services as soon as you launch your brand. 

4. Launch your business

Launching can play a huge role in how your products and brand will perform in the long run. With all the listings available in the Amazon marketplace, a newly launched product can easily get lost in the noise. Build-up and momentum are needed for a successful launch, and this could include marketing even before you reveal your brand. To help with the product launch, expert service providers can take charge of the marketing for you.

How to be a successful Amazon seller

Running a business can be harder than usual during these trying times, so it’s something to be grateful for when you have a stable business to look forward to. To become a successful Amazon seller, here are some tips to help you:

1. Make trial and error a part of your process

Amazon’s algorithm is ever-changing, just like the demographics of your buyers. This is why it is essential to regularly conduct split tests to determine which strategies work and which could be improved further. There’s more to lose when you have stagnant listings than when you invest in varying your listings, keywords, and overall strategy.

2. Optimize listings

Optimizing listings is a requirement if you want to at least be visible in the search results. Employing marketing strategies like pay-per-click advertisements will be a waste of time and money if your listing is not optimized. In optimizing your listings, make sure to use the most appropriate keywords (both exact and long-tail), visually appealing photos, and copies and listings that tell a story of why the buyer needs to buy your product.

3. Maximize available tools

Selling on Amazon can be intimidating for first time sellers; fortunately, there are numerous tools available to help you manage your business. There are tools available to help you fend off hijackers and counterfeiters, tools to help you do keyword research or gain customer reviews.

4. Seek the help of experts

If things get too overwhelming, you have the option to ask the help of industry experts to do the work for you. Doing so will remove the burden of studying the ins and outs of Amazon while you arrange selling and production. This, in addition to the fact that experts can guarantee visible results in a short period of time.

Starting your business

The Amazon marketplace is open for everyone who wants to take a shot in the field of business. To make full use of that shot and to ensure that you thrive in the online marketplace, send a message to Jayce at [email protected] today so we can start plotting your road to success.

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