Whether you’re a budding entrepreneur embarking on a new business venture or an established business owner seeking to extend your market reach, I must tell you that selling on Amazon can revolutionize your path to success. So, let us know how to sell on Amazon for beginners.
With its extensive global customer base, Amazon provides an immense platform to exhibit your products, amplify your brand presence, and achieve remarkable sales growth.
First, create an Amazon seller account and decide what products you want to sell. Do your research and make sure there is a demand for it.
Once you’ve chosen a product, you’ll need to create a listing and optimize it for search so that customers can find it easily.
Prepare to unleash your entrepreneurial spirit and join me as I embark on this thrilling journey on how to sell on Amazon for beginners.
Key Takeaways
- Amazon is one of the most visited websites, with millions of customers browsing and buying products daily. By selling on Amazon, you can tap into this vast customer base and increase your sales.
- Independent individuals, small businesses, and larger companies are called Marketplace sellers or third-party Amazon sellers. They use Amazon’s platform to list and sell their products directly to customers.
- Different business models exist, such as private label, amazon reseller, and white labeling.
- If you are able to sell more than forty items monthly, the Professional Selling Plan is the best option. On the other hand, if you plan to sell at most 40 items per month, the Individual Selling Plan is the best option.
- For Professional sellers, selling fees range from $0.30 to $1.80 per item sold, while for Individual sellers, the fee is a flat $0.99 per item sold.
- Referral fees are between 6% and 45% of the item’s sale price, with most categories falling between 8% and 15%.
- Before considering selling on Amazon, you must assess whether your business suits the platform. Conduct thorough product research and keyword analysis as part of your due diligence before embarking on the selling journey.
- Amazon Seller Central is the platform that Amazon provides for sellers to manage their accounts.
- Your product title should be clear and concise, including the brand name, product name, and relevant keywords.
- Your product images should be high-quality & show the product from different angles. The product descriptions should be informative and include all the relevant details about the product.
- You need to consider the cost of goods, shipping, and Amazon fees when pricing your products. Depending on the product category, Amazon charges variable closing fees, so factor these into your pricing strategy.
- Amazon offers two main fulfillment options for sellers: Fulfillment by Amazon (FBA) and Merchant Fulfillment.
- Amazon provides several advertising options to help you reach a wider audience, including Sponsored Products, Sponsored Brands, and Sponsored Displays.
- The Amazon Buy Box designates the segment found on a product detail page by providing customers a convenient way to add items to their cart.
- Craft compelling and informative product listings featuring clear images, detailed descriptions, and relevant keywords. This optimization will enhance visibility and attract potential buyers to your offerings.
- Use appropriate keywords in your product titles, bullet points, and descriptions to increase your chances of appearing in Amazon’s search results and reaching a broader audience.
- Familiarize yourself thoroughly with Amazon’s seller policies and adhere strictly to them. This compliance will help you avoid any potential account suspensions or penalties, ensuring a smooth and successful selling experience on the platform.
Importance Of Selling On Amazon
If you’re selling products online, Amazon is a great place to start. There are several reasons why you should consider selling on Amazon. Here are they:
Traffic
First, as you know Amazon has millions of customers browsing & buying products daily. So, if you start selling on Amazon, you can tap into the vast customer base and increase your sales.
Competition
You will find millions of sellers on Amazon so there is a lot of competition on the platform. However, this also means a lot of demand for products, and if you have a unique product or offer competitive pricing, you can stand out from the crowd.
Seller Account
If you want to sell on Amazon, all you need to do is create a seller account on Amazon and start selling products immediately.
Customer Service
Amazon offers outstanding customer service & customer experience. If you start selling on Amazon, you can leverage this reputation and provide your customers with a reliable and trustworthy shopping experience.
Now, let us know about the different types of business models in the next section.
Different Business Models Used While Selling On Amazon
There are different business models used while selling your products on Amazon. So, you need to decide which suits your business best. Let us see the business models:
Private Label Seller
A private label seller advertises products manufactured by a third party but sells them under their own brand name.
When you use established ecommerce platforms like Amazon, you gain access to a pre-existing audience of buyers that allows you to quickly establish your brand presence & make a notable impact in the market.
Amazon Reseller
Amazon resellers sources low-cost or discounted goods from physical retail stores and resell them at a higher price on Amazon. They earn profit from the price difference.
White Labeling
White labeling takes common products, imprints them with their brand name, and markets them as their own by removing the manufacturing process. Selling white-label products on Amazon can be achieved by placing bulk orders in Amazon warehouses.
Now, let us know the factors to consider before selling on Amazon.
Factors To Consider Before Selling On Amazon
There are many factors to consider while selling on Amazon for beginners. Let us look at them one by one:
- Before considering selling on Amazon, you must assess whether your business suits the platform.
- Conduct thorough product research and keyword analysis as part of your due diligence before walking on the selling journey.
- You must remember that Amazon is responsible for the customer relationship, not the seller.
- Amazon prefers all its sellers to use FBA (Fulfillment by Amazon) for their fulfillment & shipping needs. However, if your business relies on a specific delivery model, you should know that Amazon’s terms of service may pose challenges or conflicts with your chosen approach.
Now, let us look at the strategies on how to sell on Amazon for beginners in the next section.
Two Types Of Strategies Used While Selling Products On Amazon
There are two types of strategies used on how to sell on Amazon for beginners. Let us have a look at them:
Sell As An Independent Seller
You can begin your journey by directly selling your products on Amazon as an independent seller.
When you engage in both selling on Amazon and selling to Amazon, then this keeps Amazon accountable & prevents stock shortages of your merchandise.
Moreover, when you sell your products directly to Amazon, you can accelerate sales of new items by instilling confidence in Amazon bots to promote and feature your products. This jump-start can lead to increased visibility & sales on the platform.
Sell Your Products Directly To Amazon
As Amazon continuously expands its direct catalog, you must align your business strategy with this trend.
You should sell directly to Amazon to relieve new sellers from the challenges. Additionally, products sold directly by Amazon often command higher prices and experience faster sales.
Moreover, FBA sellers can benefit from a significant margin difference when they avoid direct competition with Amazon on the same products.
Now, let us know how to research and select product suppliers for your business.
How To Select Product Suppliers?
You can follow the below steps for selecting a product supplier on Amazon:
Business Plan
Develop a detailed business plan that incorporates your business objective, conduct market research, define products, implement marketing & sales strategies, and formulate a financial plan, among other aspects.
Profitable Niche
Conduct thorough market research to discover trending and competitive products that resonate with your passions and interests. Look for unique selling points or create innovative ones to generate viral appeal.
Track Of Competitors
Research to validate your chosen niche. Monitor competitor sales trends over an extended period to gain a realistic understanding of the market or niche. Also, engage with multiple suppliers or customers to gather valuable insights and understand their perceptions of the products.
Product Supplier
Various methods exist to obtain supplier information, including platforms like AliExpress & Alibaba. You can identify potential suppliers and gather their contact details and background information by conducting thorough research.
Another approach is to search for suppliers on Google or connect with them during trade shows. Exercise caution to avoid scammers and ensure that you select the most suitable & trustworthy supplier.
Payment Options
Determine the available payment options & payment terms for the quotation. Also, evaluate and compare suppliers based on your specific requirements to find the most suitable one for your business needs.
Product Order
After selecting your supplier, proceed to place an order. Consider starting with a small order as a market test, gathering valuable customer feedback.
Before shipping, you need to make sure of a thorough product quality inspection by examining the raw materials, production processes, and finished products. This step is crucial to maintaining high-quality standards and meets customer expectations.
Now, it’s time to disclose how to sell on Amazon for beginners in a detailed manner.
Step-By-Step Guide On How To Sell On Amazon For Beginners
If you want to know how to sell on Amazon for beginners, you must first create an Amazon seller account and set up your seller central.
Here’s a breakdown of what you need to know to get started with Amazon selling.
1. Create An Amazon Seller Account
If you want to create an Amazon seller account, you’ll need to follow these steps:
- Click the button “Register Now” on the Amazon Seller Central website.
- Provide your business information, including your legal name, address, and tax ID.
- Choose the type of Amazon seller account you want to create (Individual or Professional).
- Create your Amazon seller account by entering your personal information, including your name, email address, and phone number.
2. Set Up Your Amazon Seller Account
Once you’ve created your Amazon seller account, you must set it up to start selling on Amazon.
Here’s what you need to do:
- Provide your bank account information so Amazon can deposit your earnings.
- Set up your shipping options and pricing.
- List your products by creating a product listing.
3. Scroll Through Amazon Seller Central
Amazon Seller Central is the platform that Amazon provides for sellers to manage their accounts. Here are some key features of Amazon Seller Central:
- Product Listing – Create and manage your product listings here.
- Orders – You can manage your orders and shipping options.
- Reports – You can view and download reports on your sales, inventory, and other metrics.
- Advertising – You can create and manage your Amazon advertising campaigns.
- Performance – You can view your seller performance metrics, including feedback and customer reviews.
Overall, creating an Amazon seller account, setting up your Seller Central, and understanding Amazon Seller Central are crucial steps to becoming a successful Amazon seller.
Now, let us know how to optimize your product listings to increase sales.
4. Optimize Your Product Listings
If you want to optimize your product listings, you should focus on the following elements: the product title, product images and descriptions, and the use of keywords.
First, your product title should be clear and concise, including the brand name, product name, and relevant keywords. A good product title can help your product stand out in search results.
Secondly, your product images should be high quality and show the product from different angles. The product descriptions should be informative and include all the relevant details about the product. Make sure to highlight the benefits of your product & explain how it can solve the customer’s problem.
Using the right keywords in the product listings can help your products appear in relevant search results. You should do product research to determine which keywords are in demand in your product category. Also, you can use these keywords in the product title, description, and backend search terms.
5. Decide Price For Your Products
Pricing your products is crucial to make a profit on Amazon.
Consider the cost of goods, shipping, & Amazon fees while pricing your products. Depending on the product category, Amazon charges variable closing fees, so factor these into your pricing strategy.
Now, let us know about the order fulfillment and shipping. As an Amazon seller, order fulfillment and shipping are two crucial aspects of your business.
6. Understand Amazon Fulfillment & Order Fulfillment Options
Amazon offers two main fulfillment options for sellers: Fulfillment by Amazon (FBA) and Merchant Fulfillment (FBM).
FBA is a program where Amazon handles all aspects of order fulfillment and shipping for you. You can send products to Amazon’s warehouse, & then they take care of the rest.
On the other hand, Merchant Fulfillment is where you handle all aspects of order fulfillment and shipping yourself.
When it comes to order fulfillment, you have a few different options. Amazon handles everything from storing your products to packing and shipping with FBA.
Whereas Merchant Fulfillment allows you to pack and ship your products yourself or use a third-party logistics provider to handle them.
7. Explore Shipping Options
Shipping your products to customers is an essential part of the selling process. Amazon offers different shipping options, including Standard Shipping, Expedited Shipping, and Priority Shipping.
Remember that shipping fees vary depending on the shipping option you choose and the size and weight of your products. You can also provide Prime Shipping to customers by using FBA.
In addition to the standard shipping options, Amazon offers specialized programs for certain types of products. For example, Launchpad is a program designed for startups to help them launch new products on Amazon.
Handmade is a program for artisans to sell their handmade products on Amazon, and Jewelry is a program for sellers specializing in jewelry.
If you choose to use FBA, you must pay fees for Amazon’s services. These fees depend on the size & weight of your products & the storage fees for keeping them in Amazon’s warehouse. You need to remember these fees in your pricing strategy to ensure you are making a profit.
8. Market & Advertise Your Products
Now, it’s time to invest in marketing and advertising to increase your sales on Amazon. You can start with marketing your products and store on social media platforms, such as Facebook, Instagram, Pinterest, etc.
If you have enough budget, you can spend your money on several advertising options to help you reach a wider audience. This includes Sponsored Products, Sponsored Brands, and Sponsored Displays.
- Sponsored Products – Appear in search results & product detail pages and are targeted based on keywords. You pay for these ads on a cost-per-click (CPC) basis.
- Sponsored Brands – Comes at the top of search results and features your logo, a custom headline, and multiple products. You pay for these ads on a CPC basis.
- Sponsored Display – These ads come on product detail pages, customer reviews, and the Amazon DSP network. You pay for these ads on a cost-per-thousand (CPM) basis.
To start with Amazon Advertising, you must create an advertising account and set up your campaigns. Research your target audience and keywords before creating your ads to ensure they reach the right people.
Now, optimize your Amazon ads to get the most out of your advertising budget. Here are some tips for optimizing your ads:
- Use relevant keywords for your product and target audience to ensure your ads are shown to the right people.
- Monitor your ad performance and adjust your bids and targeting to improve your results.
- Experiment with various ad formats to see which ones work best for your products and audience.
- Use high-quality images to showcase the products in the best possible light to attract more clicks and conversions.
9. Understand Amazon Buy Box
The Amazon Buy Box designates the segment found on a product detail page by providing customers a convenient way to add items to their cart.
Here are some factors that can affect your chances of winning the Buy Box:
- Your price should be competitive with other sellers offering the same product.
- The product should be in stock and ready to ship.
- Shipping time should be fast and reliable.
- Your seller rating should be high, with positive customer reviews.
- Your referral fees should be reasonable and in line with other sellers offering the same product.
By prioritizing these factors, you can enhance your likelihood of securing the Buy Box and experiencing a sales boost on Amazon.
Now, it’s time to learn how to manage your Amazon selling business in the next section.
How To Manage Your Amazon Selling Business?
Managing your business can seem daunting if you’re a beginner on Amazon. However, with the right strategies and tools, you can successfully manage your Amazon business and grow your sales.
Amazon charges some fees for selling on their platform. They include referral fees, fulfillment fees, and subscription fees. You can find a breakdown of Amazon’s fees on their website.
If you want to manage your inventory properly, you need to follow the below tips:
Make Sure You Have Sufficient Inventory
You need to ensure you have enough inventory to meet demand but not so much that you are overstocked. Amazon provides tools such as the Inventory Dashboard and the Manage Inventory page to help you manage your inventory levels.
You can also use Amazon’s FBA service to store and ship your products.
Use Amazon APIs And Reports
Amazon provides various APIs and reports to help you manage your business. You can use the Amazon Marketplace Web Service (MWS) API to automate your business processes. You can also use the Amazon Selling Coach, which provides recommendations to improve your listings.
You can also use Amazon’s reports to track your sales, inventory, and customer feedback. However, it should be noted that these services will not be available from March 2024.
Go Through Tax Information
As an Amazon seller, you’re responsible for paying taxes on your sales. You need to understand the tax laws in your state and country and ensure you are correctly collecting and remitting sales tax.
Amazon provides resources such as the Tax Calculation Services and the Tax Document Library to help you manage your tax obligations.
Remember that managing your Amazon business requires attention to detail and a willingness to learn.
When you understand Amazon’s fees, you can easily manage your inventory by using Amazon’s APIs and reports. In addition, when you understand tax information, you can successfully manage your Amazon business and grow your sales.
Now, let us know the types of Amazon selling plans in the next section.
Types Of Amazon Selling Plans
Amazon offers two types of selling plans: Professional and Individual.
Individual Selling Plan
The Individual Selling Plan is the best option if you sell at most 40 items per month. This plan doesn’t require a monthly subscription fee but charges a $0.99 per item fee for each product sold.
However, this plan does not provide access to Amazon’s advanced selling tools, and you cannot create new product listings.
Professional Selling Plan
If you are able to sell more than forty items monthly, the Professional Selling Plan is the best option. This plan needs a monthly subscription fee of $39.99.
Still, it provides several benefits, including access to Amazon’s advanced selling tools, creating new product listings, and selling in restricted categories.
When you’re selling on Amazon, you need to consider several fees, including selling and referral fees:
Seller Fees
Selling fees are charged by Amazon for each item and vary depending on your chosen selling plan. For Professional sellers, selling fees range from $0.30 to $1.80 per item sold, while for Individual sellers, the fee is a flat $0.99 per item sold.
Referral Fees
Referral fees are charged as a percentage of the item’s sale price and vary depending on the product category. They are between 6% and 45% of the item’s sale price, with most categories falling between 8% and 15%.
By understanding Amazon selling plans and fees, you can choose the best option for your business and maximize your profits.
Now, let us learn about some effective strategies for Amazon’s selling success.
Tips For Success In Amazon Selling Business
There are many tips and strategies for selling on Amazon for beginners. Here are they:
- First, you must thoroughly research the market to discover profitable & high-demand products. Evaluate competition, customer demand, and profit margins before finalizing your product selection.
- There are specific product categories such as wine, groceries, jewelry, fresh food, supplements, & certain cosmetics that are considered restricted products on Amazon. Selling these items requires approval from Amazon before listing them for sale. So, it is often best to refrain from selling these restricted products altogether.
- Craft compelling and informative product listings featuring clear images, detailed descriptions, and relevant keywords. This optimization will enhance visibility and attract potential buyers to your offerings.
- Obtaining a UPC for each item before commencing your product sales on Amazon is essential. These barcodes are vital in enabling brands and merchants to identify their products across various marketplaces. To acquire your UPC, you can visit the Global Standard 1 Website for the purchase process.
- Use appropriate keywords in your product titles, bullet points, and descriptions to increase your chances of appearing in Amazon’s search results and reaching a broader audience.
- Stay competitive by setting appropriate prices for your products. Consider manufacturing costs, shipping fees, and competitor pricing while determining your pricing strategy.
- Monitor your inventory levels diligently to avoid stockouts, which may lead to potential loss of sales. Embrace inventory management tools to ensure you maintain an ample supply of products.
- If you want to enhance sales and increase traffic to your product page, use Amazon advertising. These ads provide greater visibility to your products, ensuring they appear in more Amazon searches and ultimately boosting your overall performance.
- Familiarize yourself thoroughly with Amazon’s seller policies and adhere strictly to them. This compliance will help you avoid any potential account suspensions or penalties, ensuring a smooth and successful selling experience on the platform.
How To Sell Amazon For Beginners: Pros And Cons
Here are the pros & cons of selling on Amazon for beginners:
Pros Of Selling On Amazon
- With millions of active customers worldwide, Amazon presents a vast potential market for your products, significantly increasing your sales opportunities.
- You can benefit from an inherent trust factor among new customers due to Amazon’s reputable name and reliability.
- Amazon’s infrastructure covers order processing, fulfillment, and customer service. It gives them freedom from the burden of managing these aspects and allows them to concentrate on their products.
- Selling on Amazon grants access to a global audience, enhancing your brand visibility and reaching customers who might have yet to discover your products.
- By using Fulfillment by Amazon (FBA), beginners can outsource order fulfillment, storage, and shipping, simplifying logistics and elevating the overall customer experience.
- Use Amazon’s advertising platform to run sponsored product campaigns, increasing your product’s visibility and driving more traffic to your listings.
- Most consumers express comfort and confidence in buying from sellers on Amazon. It further boosts your credibility as a beginner seller on the platform.
Cons Of Selling On Amazon
- As a third-party seller, you will have limited control over the customer experience and brand presentation. On Amazon’s platform, competing products or advertisements may be displayed alongside your listings.
- There is high competition as people can quickly start selling on Amazon.
Now, let us look at the benefits of selling on Amazon in the next section.
Benefits Of Selling On Amazon
There are many benefits of selling on Amazon. Here are they:
- Amazon’s extensive global customer base grants sellers access to millions of active shoppers and potential buyers worldwide.
- Amazon offers a trusted and well-established platform that instills confidence and credibility among sellers and customers.
- Selling on Amazon exposes sellers to a diverse audience that showcases their brand and products to a broader customer base, including international markets.
- By utilizing FBA, sellers can delegate order fulfillment, storage, and shipping tasks to focus on their products and customer service while streamlining logistical operations.
- Amazon’s reputation for delivering reliable service & customer satisfaction encourages trust in buyers by simplifying the process for sellers to gain the trust of potential customers.
- Amazon equips sellers with valuable tools and analytics to monitor sales performance, understand customer behavior, and optimize their strategies for greater success.
- With Amazon handling payment processing, sellers benefit from reduced risks of fraudulent transactions and can expect timely payments.
- The scalability of the Amazon platform allows sellers to begin with modest ventures and gradually expand their business, providing growth opportunities tailored to their pace and preferences.
Real-life Examples Of Amazon Stores
Here are the real-life examples of Amazon stores:
AUTOMET is one of the Amazon stores where you can shop for fashion outfits. It offers unique items in different categories, such as bodysuits, athletic shorts, sweat shorts, sweatpants, and lounge sets.
BMANI Wireless Earbuds is another Amazon store that offers high-quality wireless earbuds. They have 48 hours of playback with a Dual LED display.
Command is one of Amazon’s stores in the category of Arts & Crafts. They offer different creatives, such as picture hanging, decoratives, posters and, kids art, and a lot of other home decor items.
Dr. Elsey’s Amazon store is a store dedicated to cats. It offers cat litter, cat food, and a lot more items.
Now, let us look at some FAQs on how to sell on Amazon for beginners.
FAQs (Frequently Asked Questions) On How To Sell On Amazon For Beginners
1. How much can beginners make selling on Amazon?
Generally, Amazon sellers make at least $1,000 per month as beginners on Amazon.
2. Is it difficult to start selling on Amazon?
It is quite easy to start selling on Amazon. You will be relieved from managing inventory, packing, and fulfilling orders as a seller.
3. Is selling on Amazon a good way to make money?
Selling on Amazon is a profitable endeavor for many. Approximately half of the real product sellers on Amazon generate monthly sales ranging from $1,000 to $25,000. Moreover, the top 6% of sellers achieve even higher sales, with some making up to $250,000 per month.
Final Thoughts On How To Sell On Amazon For Beginners
Selling on Amazon holds promising opportunities for beginners, but achieving success needs planning, commitment, and a thoughtful approach.
You need to conduct comprehensive research to identify prospective products for Amazon selling, focusing on items with strong demand, limited competition, and the potential for profitability.
Create captivating product titles and clear and concise descriptions, and employ high-quality images. Employ relevant keywords strategically to enhance visibility in Amazon’s search results.
Strike a balance between competitive pricing & maintaining a healthy profit margin by factoring in Amazon fees, shipping expenses, and other related costs.
You can use Amazon’s advertising tools and explore external marketing tactics to maximize product exposure and attract a broader customer base.
I hope today’s article on how to sell on Amazon for beginners sounds helpful!
