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How to Start Selling on Amazon

How to Start Selling on Amazon

Amazon can expose your business to a huge potential market. Follow these steps to get started and learn how to promote your Showcase Pages.

  • It is relatively easy to become an Amazon third-party seller.
  • You have a number of decisions to make when setting up your account; many of them are about the commissions you will pay.
  • Actively promote your Amazon pages to ensure success.
  • This article is for anyone considering selling products on Amazon.– As one of the main driving forces behind increasing online sales, Amazon is one of the most popular ecommerce sites around. While Amazon sells some products directly to consumers, third-party sellers make up a significant portion of the sales on the platform. In the third quarter of 2021, approximately 56% of all products sold on Amazon came from third-party sellers. With Amazon getting $ 24 billion in revenue from third-party seller services as of the third quarter of 2021, there is a substantial market for small businesses on the site. Selling on Amazon is relatively simple – you create a seller account, list your products, and ship them directly to the consumer or to Amazon, depending on the type of account you have set up. While the overall process is simple, there are some important details to deal with and decisions to make before getting started.

How to sell on Amazon

It only takes a few steps to become an Amazon third-party seller.

1. Create a seller account.

This can be your personal Amazon login or you can set up a new Amazon seller account with your business email. In addition to your email address (and password, if you’re using your personal account), you’ll need a credit card, government-issued ID, tax information, phone number, and bank account.

2. Choose a plan.

Amazon divides its Marketplace plans into Individual and Professional. The Individual Selling Plan does not include a monthly subscription fee. Amazon will charge a fee of 99 cents per sale, in addition to other standard sales fees.

The Professional Selling plan comes with a monthly subscription fee of $ 39.99, but there is no commission for the sale. This plan, like the individual selling plan, is subject to other Amazon reporting and closing fees. Amazon recommends signing up for the Professional Selling Plan if you plan to sell more than 40 items per month.

3. Determine if you can sell your products on Amazon.

Amazon divides its product categories into two main groups: categories open to all sellers and others open only to professional seller accounts. There are more than 20 categories open for sale on Amazon, where third-party sellers can list products without specific permission. Professional categories require Amazon approval to “help sellers meet product and listing quality standards, as well as other category-specific requirements.” If you want to sell products in a professional category, you will need to sign up for a professional selling plan and get approval from Amazon to publish your product.

4. Create your product sheets.

You will need a product identifier such as SKU, GTIN, UPC, ISBN or EAN. If you are selling a product already offered by another seller, some of this information will already be available. Then enter the product details such as price, product condition, available quantity, shipping options, name, brand, description and keywords.

5. Decide how to satisfy your products.

Once you’ve decided which plan is best for your business, you can list your products and sell them directly to buyers or sign up for the FBA program. Direct selling to customers involves listing products, selling and shipping to customers. You will be responsible for shipping and handling your products, and your customer will always have additional shipping costs for the sale. With Fulfillment by Amazon, you ship your products to Amazon and take care of the shipment to the customer. It also means that your products are eligible for two-day delivery, free shipping, and other Amazon Prime benefits. Signing up for FBA can set you apart from other third-party sellers – customers want to use their Prime benefits, and free two-day shipping can be a powerful motivator to buy. Many Amazon Selling Experts recommend opting for Fulfillment by Amazon (FBA) unless it is financially impractical.

Fulfillment by Amazon is a great service, but it does come with fees. Amazon provides a full breakdown of its fulfillment rates, but it’s also important to understand the basic structure. Amazon will charge you a monthly inventory storage fee per cubic foot (75 cents per cubic foot January through September and $ 2.40 per cubic foot October through December for standard-sized products) and a fulfillment fee for each unit. . These are flat rates per package and rates based on the size and weight of the package. Fulfillment fees start at $ 2.92 per package and can go as high as $ 150 + for heavy oversized specialty packages.

Amazon also charges referral and closing fees. It breaks down your commissions by category, but almost all items will have a referral fee, and some items will have a closing fee. Referral fees are a percentage of the purchase price and range from 6% to 45%, depending on the type of product. Most referral fees are between 8% and 15%. Items like software, video games, videos, and music also have a $ 1.80 closing fee.

How to promote your business on Amazon

Now that your Amazon store is set up, people can buy from you on the site. But if you wait for potential customers to find your product listings, you won’t be successful. Here’s how to market your business to attract some of Amazon’s hundreds of millions of users to your product pages.

Use sponsored ads.

When you purchase a sponsored listing, Amazon displays information about your product on competitor purchase results pages or product detail pages. These are pay-per-click ads, which means you pay for the traffic to your product page. If the product description, images, shipping and pricing are convincing, you stand a good chance of getting a sale. There are several types of advertising on Amazon.

  • Sponsored Products: These are ads for individual products that appear on purchase result pages and product detail pages.
  • Sponsored Brands: Display your brand logo, a custom title, and many of your products on purchase result pages.
  • Sponsored display: Takes the form of advertising banners, both inside and outside the Amazon site, which help you reach your target market.

Optimize your listings for SEO.

Amazon has its own in-house search engine, and when your product listing has the keywords that Amazon users are looking for, your page will rank higher. Do your research and use resources like the Scope keyword tool to find out what terms Amazon buyers are looking for. Then use those keywords on your page in the titles and descriptions. Relevant Amazon listings will also appear when people are using general search engines like Google.

Promote your ads on blogs, videos and social media.

Promoting your Amazon listings on YouTube, TikTok, your blog, or any other social media platform can increase traffic and sales. Although social media followers don’t like direct product promotions, you can achieve subtle exposure with the following tactics:

  • Include a social media promo code (if you have an Amazon Selling Professional account).
  • Share informative, interesting, or entertaining content that includes your Amazon product link.
  • Host a contest or giveaway when followers post your Amazon listing on their bios or account.

You can also harness the power of influencer marketing by developing a relationship with an influencer in your product’s demographic and asking them if they would review or recommend it to their followers.

Manage your reputation and reviews.

Having better reviews than a competing product can make all the difference, so work towards getting lots of reviews and the best possible star ratings. Make sure the item description is accurate, provide excellent customer service, and respond and resolve customer complaints promptly. Many Amazon sellers proactively communicate with all customers, thanking them for the sale and reminding them to leave a review. Customer reviews also affect seller rating, along with factors such as response time to customer inquiries, timeliness of shipment (if you’re not using FBA), chargebacks, and order accuracy. Amazon uses your seller rating to determine how often your products appear, and customers use it to decide between you and your competitors.

Getting ready to sell on Amazon is a simple process. It’s important to expand your retail operations wherever possible, especially when you can tap into Amazon’s large audience. Creating a Marketplace account can also be a great way to connect with Amazon’s Storefronts program, which focuses on fostering small business growth.

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