Amazon is one of the largest online marketplaces in the world, with more than 100 million active customer accounts and more than 500 million products sold per month. But with so many sellers and such a huge marketplace, how do you know if selling on Amazon is right for you? If you’re serious about making the move into full-time entrepreneurship, then selling on Amazon could be just the right fit. However, if you’re reading this, it’s probably because you’re already feeling some uncertainty about whether or not you can make it as an Amazon seller.
Even though the risk and uncertainty associated with starting a business can be scary, the potential rewards are well worth the effort. Once you get your head around the unique challenges and unique opportunities that come with selling on Amazon, you’ll be well on your way to creating a successful business.
What Is Selling on Amazon?
Selling on Amazon is a process that involves the listing and selling of products on Amazon.com. Sellers have the opportunity to list their products in any category they choose, as well as set their own prices, manage inventory, and ship orders.
You’ll need to be familiar with some specific terminology before you begin:
- ASIN: An Amazon Standard Identification Number assigned to products when they are first listed for sale
- FBA: A fulfilment service where Amazon handles all aspects of storing, picking, packing and delivering orders for sellers
- Merchant fulfilled: The process whereby the seller fulfils the order themselves
- Third Party: A third-party seller who is not an authorized Amazon seller
How to Sell on Amazon?
If you’re interested in selling on Amazon, the first thing you need to do is sign up for an account. The next step is to research the different categories and keywords for which you can sell your products. You should also take some time to research other sellers in your category so that you can learn from their successes and failures.
Next, it’s important to price your product so that it’s competitive with similar brands on Amazon. Then, create a compelling listing for your products and set up a marketing campaign through sponsored ads or PPC campaigns so that you can increase the visibility of your products. Finally, make sure to monitor how well your ad campaign is doing by tracking conversions and ROI (return on investment).
Is Selling on Amazon for You?
The first step in determining if selling on Amazon is a good fit for you is really understanding what it means to be an Amazon seller.
If you’re familiar with online shopping, Amazon sellers are the people who sell you the products you want. They’re the people who make it possible for you to get that new camera or that cool toy your kids have been asking for, all from the comfort of your own home. Selling on Amazon means having your own business and getting to be your own boss.
Because there are so many different types of products on Amazon and because there are millions of different sellers, it can be hard to know if selling one specific type of product is right for you. One thing that might help determine this is determining where your passion lies. Are you passionate about photography? Or maybe craft supplies? If so, then selling photography equipment or craft supplies on Amazon could be a perfect fit for you.
However, not all sellers have time to manage every aspect of their business–from sourcing and pricing inventory to shipping orders and customer service inquiries–and some need assistance with these tasks. That’s why Fulfillment by Amazon (FBA) was created: as a third-party fulfilment option where we pick, pack, ship, provide customer service and provide returns support–all while giving sellers access to Amazon’s expansive customer base.
Create Your Amazon Business Plan
Confused about how to get started? Start by creating your Amazon business plan.
The first step is to know your product. You should have a strong idea of what you’re selling, and why you’re selling it.
It can be tempting to try and sell as many products as possible on Amazon, but in order for your business to thrive long-term, you need to provide customers with a great product that meets their needs. So make sure that your product is something that’s not already in the marketplace.
Then, start by listing out all the important components of your plan:
1) Your sales projections
2) Costs involved
3) Fees taken by Amazon and other third parties
4) Profit margins
5) Cash flow projections
Get to Know the Amazon Seller Game
In order to be a successful Amazon seller, you need to know the game. You need to understand how buyers view Amazon and what they expect from sellers. Here are some things that you should be aware of when selling on Amazon:
- The customer is always right. Amazon customers are used to getting their way, so it’s important that you can provide them with what they want.
- Don’t get too caught up in following the rules. It’s important that you break the rules from time to time in order to make a sale.
- Keep your eye on the competition. Stay on top of your competitors and stay one step ahead at all times.
- It’s not about what you sell – it’s about who you sell for. Sellers don’t just have to deal with product selection and pricing; they also need to develop relationships with suppliers if they want their product listings to succeed.
Set Up a Shop on Amazon
It’s time to set up shop on Amazon! First, you’ll need to create your seller account. This is where you’ll list and maintain all of the information about your business including pricing, shipping costs, inventory, and more. You can also use this account to upload images, videos or other documents that help sell your products or provide instructions to customers. Next, it’s time to figure out what type of products you want to sell on Amazon.
There are three main types of products: branded goods, generic goods and private-label goods. Brand name products are ones with a logo from a recognizable brand; generic goods are those without branding that can be easily identified with a keyword search; private-label goods are items created by the company selling them.
Once you know which category you want to sell in, it’s time for step two: creating your product listing. The first thing you want to do is research the competition within your category so that you know how much money you should charge for your product (known as its ‘listing fee’). You don’t want to undercut the competition by too much or they will have an advantage on Amazon and could potentially steal sales from you.
Once you have determined a suitable price range for your product, it’s time to fill out all of the fields in accordance with Amazon’s rules and regulations. These include things like weight, dimensions, colour options and more.
A Final Words of Advice
If you’re really serious about starting a business on Amazon, then I recommend that you read the definitive guide for sellers. This is a comprehensive resource for those just getting started or who are looking to expand their growing business to Amazon. It will give you an understanding of what it takes to be successful as an Amazon seller, and how sellers are finding success in 2022.