If you’re looking to start selling products online, Amazon is a great platform to consider.
With over 300 million active users, Amazon provides an enormous customer base for sellers but how to sell on Amazon?
In this article, we’ll guide you through the process of selling on Amazon, from creating a product listing to managing your inventory.
The first step to selling on Amazon is creating a product listing.
You can either match an existing listing or create a new listing if you’re the first or only seller.
When creating a listing, you’ll need to provide product details such as the product identifier, description, images, and pricing information.
It’s important to ensure that your product listing is accurate and complete to avoid any potential issues with customers or Amazon’s policies.
Once your listing is live, you’ll need to manage your inventory and fulfill orders.
Amazon offers a variety of fulfillment options, including Fulfilled by Amazon (FBA), where Amazon handles storage, shipping, and customer service for your products.
Alternatively, you can fulfill orders yourself using your own shipping methods. It’s important to keep track of your inventory levels and ensure that you’re meeting Amazon’s performance metrics to maintain a good seller rating.
With these basics in mind, you’re ready to start selling on Amazon and reach millions of potential customers.
- 1 How to Sell on Amazon
- 2 Listing Your Products
- 3 Managing Inventory
- 4 Shipping and Pricing
- 5 Fees and Payments
- 6 Marketing and Advertising
- 7 Customer Service and Reviews
- 8 Advanced Selling Techniques
- 9 Expanding Your Business
- 10 Additional Resources
- 11 Key Takeaways
How to Sell on Amazon
If you want to sell your products on Amazon, you need to create an Amazon seller account and choose a selling plan.
Create an Amazon Seller Account
To register as an Amazon seller, follow these steps:
- Go to the Amazon Seller Central website.
- Click on the “Register Now” button.
- Enter your personal and business information.
- Verify your identity and bank account information.
- Wait for Amazon to approve your application.
Once your account is approved, you can start listing your products on Amazon.
Choose a Selling Plan
Amazon offers two selling plans: individual and professional. Here’s how they compare:
|Feature||Individual Plan||Professional Plan|
|Maximum Number of Products||40||Unlimited|
|Access to Amazon Marketplace Web Service (MWS)||No||Yes|
|Ability to Create Promotions||No||Yes|
If you plan to sell fewer than 40 items per month, the individual plan may be a better option for you.
However, if you plan to sell more than 40 items per month or want access to MWS and promotional tools, the professional plan is a better choice.
Listing Your Products
Once you have determined the product you want to sell on Amazon, the next step is to list it.
Listing your products on Amazon is a straightforward process that involves selecting the right category, creating a product listing, uploading product images, and creating a product detail page.
Choosing the right product category is critical to the success of your Amazon listing.
Amazon has over 20 product categories, and you must select the one that accurately represents your product.
When selecting a category, consider the type of product you are selling, its features, and its intended use.
Creating a product listing is the most critical step in the process of listing your product on Amazon.
A product listing includes essential information about your product, such as its title, description, price, and shipping options.
When creating a product listing, be sure to include all the relevant details that will help customers make an informed purchase decision.
Product images are an essential part of your Amazon listing.
Customers rely on product images to get a better idea of what they are buying.
When uploading product images, ensure that they are of high quality and accurately represent your product.
Amazon has specific guidelines on the size and format of product images, so be sure to follow them.
Product Detail Page
The product detail page is where customers go to learn more about your product.
It includes all the information you provided in your product listing, as well as customer reviews and ratings.
To create a compelling product detail page, ensure that you provide accurate and detailed information about your product, including its features, benefits, and any other relevant information.
Managing inventory is a critical aspect of selling on Amazon.
Proper inventory management ensures that you have the right products in stock to meet customer demand and avoid stockouts.
In this section, we will discuss inventory management, Fulfillment by Amazon (FBA), and FBA fees.
Inventory management involves the processes and activities that take place between the moment you obtain your inventory and the moment you sell it to the final customer.
Effective inventory management ensures that you have the right amount of stock on hand to meet customer demand, reduce storage costs, and minimize the risk of overstocking or stockouts.
To manage your inventory effectively, you should consider the following:
- Keep accurate records of your inventory levels
- Monitor your sales velocity to identify trends and adjust your inventory levels accordingly
- Use Amazon’s inventory management tools to track your inventory and sales
- Set up reorder alerts to ensure that you never run out of stock
Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) is a service offered by Amazon that allows sellers to store their products in Amazon’s fulfillment centers.
When a customer places an order, Amazon picks, packs, and ships the product to the customer on behalf of the seller.
Using FBA can help you manage your inventory more efficiently, as Amazon takes care of the storage, picking, packing, and shipping of your products.
It also allows you to offer Prime shipping to your customers, which can increase sales and customer satisfaction.
When using FBA, you will be charged fees for storage, picking, packing, and shipping your products.
The fees vary depending on the size and weight of your products, the time of year, and the amount of time your products have been in storage.
To avoid unexpected fees, you should consider the following:
- Keep track of your inventory levels and remove slow-moving products from FBA to avoid long-term storage fees
- Use Amazon’s FBA revenue calculator to estimate your fees and adjust your pricing accordingly
- Consider using Amazon’s FBA Small and Light program for smaller products, as it offers lower fees and faster shipping times
Shipping and Pricing
When selling on Amazon, it’s important to consider your shipping and pricing strategies to ensure that you are making a profit while also providing a good customer experience.
Here are some tips to help you with your shipping and pricing strategies.
Shipping is an important aspect of selling on Amazon.
You need to ensure that your products are delivered to your customers in a timely and efficient manner.
Here are some things to consider when it comes to shipping:
- Fulfillment by Amazon (FBA): If you use FBA, Amazon will handle the shipping and handling of your products. This can be a good option if you don’t have the resources to handle shipping yourself.
- Shipping rates: When you sell on Amazon, you can set your own shipping rates. Make sure that your rates are reasonable and competitive with other sellers in your category.
- Shipping options: Offer your customers a variety of shipping options, such as standard, expedited, and international shipping. This will allow them to choose the option that best suits their needs.
Pricing is another important aspect of selling on Amazon.
You need to ensure that your prices are competitive while also allowing you to make a profit.
Here are some things to consider when it comes to pricing:
- Competitor analysis: Research your competitors’ prices and adjust your prices accordingly. Make sure that your prices are competitive but also allow you to make a profit.
- Profit margin: Calculate your profit margin by subtracting your costs from your selling price. Make sure that your profit margin is healthy enough to cover your expenses and allow you to make a profit.
- Dynamic pricing: Consider using dynamic pricing to adjust your prices based on market trends and demand. This can help you stay competitive and maximize your profits.
Offering free shipping can be a great way to attract customers and increase sales.
Here are some things to consider when it comes to offering free shipping:
- Minimum order value: Set a minimum order value for free shipping to ensure that you are not losing money on shipping costs for small orders.
- Product weight and size: Consider the weight and size of your products when offering free shipping. If your products are heavy or bulky, offering free shipping may not be feasible.
- Promotions and discounts: Offer free shipping as a promotion or discount to incentivize customers to make a purchase.
By considering your shipping and pricing strategies, you can ensure that you are providing a good customer experience while also making a profit.
Fees and Payments
Selling on Amazon requires you to pay certain fees for the privilege of using the platform.
Understanding these fees is crucial to ensure that you are making a profit on your sales.
In this section, we will discuss the different types of fees you can expect to pay when selling on Amazon.
Amazon charges a referral fee for each item sold, which varies depending on the product category.
referral fees are between 8% and 15% of the item’s sale price.
You can find out the exact referral fee for your product category on Amazon’s website.
In addition to referral fees, Amazon also charges selling fees.
These fees are based on the type of selling plan you choose. I
f you opt for an Individual plan, you will pay $0.99 per item sold, in addition to referral fees.
If you choose a Professional plan, you will pay a monthly subscription fee of $39.99, but you will not have to pay the $0.99 per item fee.
Chargeable Credit Card
To sell on Amazon, you will need to provide a chargeable credit card.
This credit card will be used to pay for any fees associated with your account, including referral fees and selling fees.
It is important to ensure that your credit card information is up-to-date to avoid any issues with payments.
Bank Account Number
You will also need to provide a valid bank account number to receive payments for your sales.
Amazon will deposit your funds directly into your bank account every two weeks.
It is important to ensure that your bank account information is accurate to avoid any delays in receiving your payments.
Marketing and Advertising
When it comes to selling on Amazon, marketing and advertising are crucial to increasing your visibility and sales.
Keywords are the backbone of any successful selling strategy on Amazon.
They help your products appear in relevant searches when customers are looking for products like yours.
To maximize your visibility, it’s important to research and use relevant keywords in your product titles, descriptions, and bullet points.
You can use Amazon’s search bar to find popular search terms related to your product.
Additionally, you can use third-party keyword research tools to find long-tail keywords and phrases that customers are searching for.
Make sure to include these keywords in your product listing to improve your chances of appearing in relevant search results.
Successful Selling Strategy
A successful selling strategy on Amazon involves more than just listing your products and waiting for customers to find them.
You need to actively promote your products and engage with your customers to build a loyal customer base.
Here are some tips for a successful selling strategy on Amazon:
- Offer competitive pricing: Research your competitors’ prices and offer competitive pricing to attract customers.
- Provide excellent customer service: Respond to customer inquiries promptly and provide helpful information to build a positive reputation.
- Encourage customer reviews: Encourage customers to leave reviews on your products to improve your product’s visibility and credibility.
- Use Amazon’s fulfillment service: Using Amazon’s fulfillment service (FBA) can improve your product’s visibility and increase your chances of winning the Buy Box.
Amazon Advertising is a powerful tool that can help you increase your product’s visibility and sales.
With Amazon Advertising, you can create sponsored product ads that appear in search results and product detail pages.
Here are some benefits of using Amazon Advertising:
- Increased visibility: Amazon Advertising can help you reach more customers and increase your product’s visibility.
- Targeted advertising: You can target your ads to specific audiences based on their search history and interests.
- Cost-effective: Amazon Advertising is cost-effective, and you only pay when a customer clicks on your ad.
- Detailed analytics: Amazon Advertising provides detailed analytics that can help you track your ad’s performance and optimize your campaigns.
Customer Service and Reviews
As an Amazon seller, providing excellent customer service is crucial to your success. Amazon has a reputation for exceptional customer service, and as a seller, you need to uphold that standard.
Here are some tips to help you provide the best customer service possible:
- Respond promptly to customer inquiries: Amazon expects sellers to respond to customer inquiries within 24 hours.
- Make sure you check your seller account regularly and respond to any messages promptly.
- Be polite and professional: When communicating with customers, always be polite and professional. Remember, the customer is always right, and you want to make sure they have a positive experience with your business.
- Offer refunds or replacements when necessary: If a customer is unhappy with their purchase, offer a refund or replacement. This will help you maintain a positive reputation on Amazon and encourage customers to leave positive reviews.
- Use Amazon’s tools to manage customer service: Amazon provides a range of tools to help you manage customer service, including the ability to issue refunds, respond to messages, and manage returns.
Reviews are an essential part of selling on Amazon.
Positive reviews can help you attract new customers and increase sales, while negative reviews can have the opposite effect.
Here are some tips to help you manage your reviews:
- Encourage customers to leave reviews: After a customer has received their order, send them a follow-up message asking them to leave a review. Make sure you provide clear instructions on how to leave a review and thank them for their business.
- Respond to negative reviews: If you receive a negative review, respond to it promptly and professionally. Address the customer’s concerns and offer a solution if possible. This will show potential customers that you take customer service seriously and are willing to go the extra mile to resolve any issues.
- Don’t incentivize reviews: Amazon has strict rules against incentivizing reviews, so make sure you don’t offer any incentives in exchange for positive reviews. This includes offering discounts or free products in exchange for a review.
- Monitor your reviews: Make sure you regularly check your reviews and respond to any negative feedback. This will help you maintain a positive reputation on Amazon and improve your sales over time.
Remember, providing excellent customer service and managing your reviews are essential to your success as an Amazon seller.
By following these tips, you can build a positive reputation on Amazon and attract more customers to your business.
Advanced Selling Techniques
If you’re looking to take your Amazon selling to the next level, there are a few advanced techniques you can use to increase your sales and grow your business.
Private labeling is the process of creating your own brand of products to sell on Amazon.
This involves finding a manufacturer to create your products, designing your own packaging and branding, and then selling those products under your own brand name.
Private labeling can be a great way to differentiate yourself from your competitors and build a loyal customer base.
It also allows you to have more control over your products and pricing.
Brand Registry is a program offered by Amazon that allows you to register your brand with the platform.
This gives you more control over your product listings and helps to prevent counterfeit products from being sold under your brand name.
By registering your brand, you’ll also have access to additional marketing and advertising tools, such as A+ Content (which we’ll cover in the next section).
A+ Content is a feature offered by Amazon that allows you to enhance your product listings with additional images, videos, and text.
This can help to make your products stand out from the competition and provide more information to potential customers.
To use A+ Content, you’ll need to be enrolled in Brand Registry.
Once you’re enrolled, you can create enhanced content for your product listings that can help to increase conversions and sales.
Expanding Your Business
When you start selling on Amazon, it’s important to have a plan for how you will expand your business over time.
Here are some key factors to consider:
One way to differentiate yourself from the competition on Amazon is to focus on a specific niche.
By specializing in a particular product category, you can become known as an expert in that area and build a loyal customer base.
Consider what products are currently underserved on Amazon and how you could fill that gap.
Having a strong brand name can help you stand out in a crowded marketplace.
Your brand should be memorable and easy to recognize, with a logo and consistent visual identity.
Consider investing in professional branding services to help you create a strong brand that resonates with your target audience.
Amazon is a highly competitive marketplace, so it’s important to stay on top of your competition.
Monitor your competitors’ pricing, product offerings, and customer reviews to see where you can improve.
Consider investing in tools that can help you track your competitors’ performance and identify areas for improvement.
Amazon offers a variety of programs that can help you grow your business, including:
- Fulfillment by Amazon (FBA): Amazon stores and ships your products for you, which can help you reach more customers and improve your shipping times.
- Sponsored Products: Amazon’s advertising platform allows you to promote your products to a wider audience and increase your visibility on the platform.
- Amazon Prime: By offering Prime-eligible products, you can tap into Amazon’s loyal customer base and improve your sales.
Consider which of these programs could be most beneficial for your business and how you can leverage them to drive growth.
By focusing on these key factors, you can expand your Amazon business and reach a wider audience of customers.
Here are some additional resources that can help you get started with selling on Amazon:
Amazon Seller App
The Amazon Seller App is a free mobile app that allows you to manage your Amazon business on-the-go. With the app, you can:
- View your sales, orders, and inventory
- Manage your listings and pricing
- Respond to customer messages
- Create and manage promotions
- Analyze your sales and performance
The app is available for both iOS and Android devices.
Seller Central is the web interface that Amazon provides for sellers to manage their accounts.
From Seller Central, you can:
- List and manage your products
- View and fulfill orders
- Manage your pricing and inventory
- Communicate with customers
- Analyze your sales and performance
To access Seller Central, simply log in to your Amazon seller account.
Selling Partner Support
Selling Partner Support is a service provided by Amazon to help sellers with their account-related questions and issues.
You can contact Selling Partner Support via phone or email, and they can assist you with:
- Account setup and management
- Listing and inventory issues
- Order fulfillment and shipping
- Payments and fees
- Performance metrics and policy compliance
Amazon has an extensive FAQ section that covers a wide range of topics related to selling on their platform.
Some of the most commonly asked questions include:
- How do I list my products on Amazon?
- How do I manage my inventory?
- How do I fulfill orders?
- How do I get paid?
- What are Amazon’s policies and guidelines?
You can access the FAQ section by logging in to your Amazon seller account and clicking on the Help button in the top right corner of the screen.
By utilizing these additional resources, you can better manage your Amazon business and ensure that you are following Amazon’s policies and guidelines.
Now that you have a basic understanding of how to sell on Amazon, let’s summarize the key takeaways to keep in mind as you start your journey as a seller.
1. Conduct Market Research
Before you start selling on Amazon, it’s important to conduct market research to understand your competition, identify potential demand, and determine the right pricing strategy.
Keep an eye on your competitors’ prices, product descriptions, and customer reviews to gain insights into what works and what doesn’t.
2. Optimize Your Listings
Your listings are the key to success on Amazon. Make sure your product titles, descriptions, and images are optimized for search and provide accurate and detailed information about your products.
Use bullet points, bold text, and other formatting options to make your listings easy to read and visually appealing.
3. Use Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) is a great way to streamline your operations and provide a better customer experience.
With FBA, Amazon handles the storage, shipping, and customer service for your products, so you can focus on growing your business.
Keep in mind that FBA fees can add up, so make sure you factor them into your pricing strategy.
4. Monitor Your Performance Metrics
Amazon provides a wealth of performance metrics that can help you track your sales, customer feedback, and overall performance.
Keep an eye on your metrics and use them to identify areas for improvement and make data-driven decisions about your business.
5. Continuously Optimize Your Strategy
Finally, remember that selling on Amazon is an ongoing process of trial and error.
Continuously optimize your strategy based on your performance metrics, customer feedback, and market trends.
Stay up-to-date with Amazon’s policies and best practices, and be willing to adapt and evolve your approach over time.
By keeping these key takeaways in mind as you start selling on Amazon, you’ll be well on your way to building a successful and profitable business.