How to Start Selling on Amazon: A Must-Have Guide for Retailers

February 21, 2020
Written by Nicasio Co III
Selling Product On Amazon

By now, every seller knows that the biggest challenge is how to start selling on Amazon, according to Amazon SEO expert, not whether or not doing business in the largest marketplace in the world will be profitable. Without question, signing up for an account and starting your own business on Amazon opens you to a world of opportunities.

In this article you will learn:

However, before you can look forward to reaping any benefit, you have to put in a severe amount of work. To start on the right foot, you must learn—and eventually master—the varying aspects and features of the platform. This move is essential in determining how to leverage Amazon’s features to benefit your business.

Selling on Amazon: An Overview

With 9 out of 10 people browsing through Amazon daily, it is perfectly understandable why it dominates the online shopping industry. To date, it accounts for nearly 50% of e-commerce sales in the US. One-third of its customers have Prime memberships, which entitle them to a host of exclusive privileges, including free two-day shipping.

Amazon is exclusively advantageous to online retailers. The platform opens its doors to sellers of all types. Getting an account is free of charge. Once subscribed, they can start promoting and selling their products, using customized marketing strategies aimed at drawing in sales. With so many sellers trying to beat each other out, it comes as no surprise why competition on the marketplace is fierce.

Sellers can sign up for an FBA (Fulfilled by Amazon Account). This account opens them to certain privileges while allowing them to sell their products to Prime customers. Another option is to become a third-party (3P)seller. Because this option does not come with shipping or storage advantages, 3P sellers will have to transact with other couriers to deliver products to customers.

Once you sign up for Amazon, your product will be featured on the marketplace automatically. As a seller, you need to take note of the following essential pointers.

  • First and foremost, you need to register your brand on Amazon.
  • Last but never least is clarifying your plans for distributing your goods in the long-term. By this, you need to detail the specific sellers that you will allow to market your products.

How to Sell on Amazon Successfully: Focus on Sources and Selling on Amazon Fees

The first concern when addressing the question “how to sell on amazon for beginners” is choosing your sources. Only after identifying the source of your products will you be able to assess the amount of money you need to invest. To date, you can buy your inventory from three familiar sources: Retail Stores, Wholesale Suppliers, and Private Label Manufacturers.

  • Buying your goods from retail stores and then reselling them on Amazon is called retail arbitrage (also online arbitrage).
  • When you get your products from a company, you are buying from a wholesale supplier. You will then resell these products at other marketplaces such as Amazon.
  • The third option is to become a private label manufacturer whereby you make your own branded products. Usually, these are existing products that you buy and alter based on your design. As with the practice for the previously mentioned sources, you will then put these items for sale on your preferred marketplace.

According to Amazon FBA launch service, whether you are an Amazon individual seller or professional seller who, you have to shoulder the required costs for starting your business. The amount may vary accordingly. It all boils down to how much you want to invest. In the beginning, you may also have to consider covering the cost of a few essential services out of your pocket to help control expenses.

Overall, you have to spend approximately $224-$518 to start your business on Amazon as a professional seller. The breakdown of expenses is as follows:

  • Estimated Initial Inventory Cost: $150
  • Monthly Subscription Fee for Amazon Professional Selling Plan: $39.99
  • Cost of UPC Codes: $10
  • Estimated Cost of Product Photography Fees: $295
  • Estimated Cost of Branding/Marketing Collaterals (Logo, Labels, etc.): $24

Why Signing Up for a Professional Account Puts You at an Advantage

  • Upload several products, which are detailed in a spreadsheet, at once
  • Learn how customers relate to your products via the general reporting feature
  • Be eligible for the Buy Box, also known as the Add-to-Cart button, which entitles only one seller to qualify

Sell in the following categories:

  • Automotive parts, tools, equipment, and accessories
  • Beauty products
  • Clothing and accessories
  • Collectible coins
  • Collectibles (books, entertainment, historical and advertising, and sports)
  • Fine art
  • Gourmet and grocery food
  • Health and personal care
  • Jewelry
  • Luggage and travel accessories
  • Shoes, handbags, and sunglasses
  • Video, DVD, and Blu-Ray
  • Watches
  • Wine

How to Get Products to Sell on Amazon

Give all the numerous types of products you can sell on Amazon, getting confused is nothing short of ordinary. It is also worth to mention to optimize amazon listing from time to time. Fortunately, there are guidelines that you can follow to help you pick the best selections that are in line with your selling objectives.

  • Go for items that cost $20-$50.Expensive items prompt potential buyers to compare prices and contemplate longer on whether to buy the product or not. 
  • Products that can fit inside a shoe box, which are neither too big nor too heavy by any standards, are more economical due to less shipping costs. Be careful not to pick anything too delicate or too light. Such fragile items are prone to accidental damages during shipping. 
  • Sell items you are familiar with. When you know what you are selling and are confident that it will deliver according to expectations, marketing it becomes easier. 
  • Choose items with widely used keywords. The more popular the keywords are, the more browsers search for these items, hence increasing your chances of raking in more sales. 
  • You are better off selling items that do not have too many reviews. Reviews can indicate the amount of competition for that particular product. A popularly reviewed item means having more competitors. 
  • Last but not least, the product should have a 25% or fewer profit margins. Calculate how much profit you can get per unit ordered and what its ROI (Return of Investment) will be.

Why Starting It Right Matters

If you have been reading selling on Amazon reviews, you know by now that despite the many advantages the platform offers, challenges abound as well. Although daunting, you can still succeed in setting up a profitable business provided that you do your research and stay attentive to details.

As the largest marketplace in the world, Amazon presents the valuable opportunity to build a robust and loyal following. That is why it is ideal for new businesses. By combining strategic marketing techniques with a sincere desire to deliver total customer satisfaction, you can look forward to receiving a positive cash flow regularly—and you do so without forking over exorbitant amounts for promotion and advertising.

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