Do you want to learn how to sell on Amazon? Here's the Information You'll Be Needing
Whether you already run a successful online store or you're just beginning building your online presence it's likely that you've thought about the pros and cons of selling on Amazon.
Traditionally speaking, you'll keep the most money and create more capital for your company through the creation and maintenance of the store you have on your website. With all the devices that make multichannel selling more efficient -- and lucrative -- than ever before, you can do both simultaneously and rapidly expand your reach.
If you're interested in trying out selling on Amazon, or you just want to know a bit more about what's involved in the process, this article will guide you through selling on Amazon and the things you need to get started.
An introduction to Amazon's market
Amazon is the most popular e-commerce vendor in the world with the most likely being in that is true for the U.S., where 70% of the adults are Prime members. About 56% of ecommerce transactions within the U.S. happen on Amazon, and it has about 200 million active monthly app customers. According to their own data approximately 7400 items are sold every minute across the U.S.
Amazon is also shipping to over 130 countries, so if you're looking for global ecommerce customers, this is certainly the most efficient and effective way to reach the widest world audience.
Ready? Let's discuss the basics you must learn about selling on Amazon.
Different types of Amazon seller accounts
There are two types of seller accounts on Amazon: Individual and Professional.
A majority of online businesses looking for consistent revenue and growth should select the Professional option, since the Individual version charges fees for every transaction however the Professional one charges a flat monthly fee.
There are other selling fees both types of accounts have to pay. We'll look at them a little later.
An easy guide for creating the account you want to use as an Amazon seller account
Amazon has put together a huge amount of information to assist merchants create accounts and start selling. If you're looking to read through their manual and get started, begin on this page. But, we've broken the procedure into this simple procedure:
1. Make an account to sell
Beginning with your Amazon account is as simple as signing up. The first step is to create a username and password, and you can go on from there.
2. Select the Professional sales plan
Then, select the seller account type you want to use. In the past that you should select the Professional plan if you intend to grow your business using Amazon. When it comes to sales terms, if you anticipate selling more than 40 items per month, you want an Professional account.
Amazon will likely not be your only ecommerce platform or marketplace. And it probably shouldn't be, because there are big benefits to creating your own online shop using . But Amazon allows you to grow into new markets that you would not be able to reach from your own store.
3. Sign up to Brand Registry
Amazon offers a Brand Registry service, which must be used prior to constructing your own store. It also allows you to make use of the various tools and features available on their platform, such as sellers protections as well as Amazon Ads. You can also get an additional 5% of purchases that are branded.
4. Use Stores Builder, the Stores Builder tool to create your own online store
Once you've registered, you have the option of using their Stores builder tool and drag-and-drop tools to build your own store. There are three templates for design that you can choose from, and after selecting the one that you prefer, you'll be able create products by uploading them and then start building pages.
It is possible to alter the tiles to arrange product images and descriptions or any other information so that it makes the best sense for your store.
To get this far it is necessary to have an official trademark registered in the nation you're registering from as well as a logo.
5. Create your product listings and start selling
With your chosen template, you are able to start using the page manager to include product pages, create categories, create a homepage or whatever else you'd like to add as an element of your Amazon storefront in order to increase revenue.
There are specific image dimensions that you must meet, and you're limited to 200 characters for your product description and that's more than enough.
The "Perfect Launch"
Amazon likes to promote its concept of the "Perfect launch" for sellers who are new, which means you complete five goals within the initial 90 days of creating your account as a seller. These five goals are:
- Enroll in Brand Registry
- Make A+-related content for your product pages
- Install Fulfillment through Amazon (we'll cover this later)
- Automate your price using Amazon's machine-learning technology.
- Create sponsored product ad campaigns Coupons, deals, or coupons
Doing all this within just the initial 90-day period result more successful results in accordance with their studies, which is why they refer to it as the"Perfect Launch".
After your store is established it is possible to use the analytics of your company to design product bundles and combination items that consumers will be interested in. This increases sales, as well as enables you to bundle multiple items in the same package.
Optimize product listings for Amazon
Amazon's website functions similar to an engine for searching. Shoppers can type in search terms in order to search for products, and Amazon will display items that match their searches.
It is the information that should guide your approach to creating the product listing and improving the product details page.
Keywords that are search-friendly
Utilize keywords shoppers may be searching for and that pertain to your items. Put them in your titles and descriptions of your products. Make use of variations or other keywords when there's more than one way people might describe your product. Make use of models number, GTINs, and SKUs.
Details and descriptions of the informational text.
Be specific with your descriptions and details, especially for products with a variety of variations like colors, sizes, and flavors.
Additionally, you can use bullet points to make your listings simple to read and concentrate on the advantages in addition to features. Benefits focus on outcomesHow do I benefit from this product? What is the problem it addresses? What need do I have that this product meets, and how can it fulfill it? You should answer these kinds of questions in your product descriptions as well as bullet points.
Great product images
Knowing the Amazon fees
In the past, as mentioned, there are really just two plans to choose from.
The Individual plan costs 99 cents per sale. Every item you sell online through this plan is 99 cents.
The Professional plan cost $39.99 per month. It comes with an unlimited number of sales. This is where the concept of selling 40 items every month from. Even if you're not sure if you'll be able to sell 40 products in the initial month, still choose the Professional plan if you're dedicated to making it one of the most important aspects of your online venture and anticipate to exceed this number later on.
If you wish to market on Amazon or appear on the Buy Box, sell products that are restricted to certain category (and they are numerous of these) in addition to using other modern selling tools, then you'll require an Professional account.
Amazon also charges several selling costs that are dependent on the arrangement you make with Amazon.
Referral fee
Both plans charge a referral charge for each sale that you make, and these range from 3% or up to 45 percent in certain occasions. The majority of referral fees are in the range of 8-15%. This is pretty typical of the online marketplaces.
There are many additional fees, plus referral fees on various categories of products here.
Fees for fulfillment and storage
If you use Amazon in any of your shipping, packaging, or other fulfillment tasks There will be an additional cost for this too, which depends on the dimensions and weight. If you only use Amazon to deliver packages, you'll be charged based on both those factors.
There's additional costs for using Amazon's warehouses to store your products. You might want to think about this due to additional advantages we'll go over shortly. One of the biggest advantages is that you can offer 2-day shipping for your customers under the label.
In the months of October and December, storage fees triple that of the other nine months, due to the holiday season.
Fulfillment options - FBM, SFP, FBA
Like we said, you have to decide how you want to handle the process of fulfillment.
You may choose to process all your orders yourself this is known as "fulfillment by merchant" (FBM). Additionally, you can utilize seller fulfilled prime (SFP) which is a unique option for experienced Amazon sellers, but you aren't able to utilize if you're only starting out. And you can use Fulfillment from Amazon this is the one they want customers to utilize as it comes filled with incentive programs.
The merchant will fulfill your order.
This option of fulfillment provides you with the most amount of control over the process. You get to manage the order, pack them for shipping, then keep them at your house or warehouse locations. If you're using dropshipping, which Amazon accepts, you'll most likely opt for this method.
The drawback for FBM is that you aren't able to benefit from being an Amazon Prime seller, which offers a host of benefits.
But, if you want to pay particular attention to your packaging process, you may find this to be a more beneficial option, even if it means fewer people order through you due to long shipping times.
Prime Seller Fulfilled by Seller
In this case, you keep your inventory in your own warehouse, but Amazon handles the delivery process using carriers of their choosing.
You can't do this until your Amazon store opens:
- It offers premium shipping options
- Ships over 99percent of orders in time
- Cancels orders with a rate that is less than 0.5%
- Uses Amazon Buy Shipping Services for the majority of orders
- Makes use of methods for shipping that permit weekend delivery
- Completes successfully a trial period
Learn more about the specifications.
Fulfillment through Amazon
Amazon consumers enjoy Prime Day, and all things Amazon Prime. In the past, around 70% of U.S. adults have Prime memberships. So, anything you can do to appeal to these members is to your advantage for sales.
When you choose FBA, your Amazon business will receive the Prime Badge. If customers are searching on Amazon and search for a store, they have the option to limit their results on stores with an Prime Badge. Therefore, if your store doesn't already have it, you will not be listed in results for shoppers with this option.
Even for those who don't filter their searches, they can still see the Prime logo next to your listing, if you're making use of FBA.
In addition, by using Prime Badges You can offer Amazon Prime's free 2-day delivery, as well as all-free shipping. Amazon handles the shipping, return, packaging, and customer service issues.
FBA can also allow you to use Amazon's machine learning software for the management of inventory. This helps you plan ahead for the demand of customers so that you don't purchase either too much or not enough stock.
It costs more to use Fulfillment by Amazon however, you'll get more also, and a lot part of the burden of managing an online store is lifted off your back by an optimized amazon fulfillment center.
This is a great choice for those who value efficiency and time and don't want to deal with storage or shipping. If you prefer handling that task yourself, to cut costs but you're not sure, FBA isn't your best option.
Wait -- inventory?
If you're just getting started on your business it's likely that inventory is something you may not have thought much about.
Inventory depends on several factors that will be different in each company, such as:
- The number of channels you're selling your products on
- Your industry norms
- Types of goods you market
- The size of your business
As you expand the channels that you're working with, the more products you'll be able to sell. As for stock, this makes it more difficult to manage every single item.
As an example, let's say you own a warehouse that has 50 units of stock of a specific product and you are able to sell 30 of the items through Amazon within over a month. You feel great, and decide to replenish your stock with another 50.
But what if you're also selling on your store, and then you've made 20 sales on items the following month using that particular platform. This means that your inventory is full, and if sales do not increase during the month following, you'll need more than 50.
That's an oversimplified example, because sales don't all happen in a single day. But it demonstrates why you have to be continually monitoring your supplies and the speed at which they're selling, as well as the channels they're selling on Each of these might have distinct fulfillment methods.
It is also important to take in items that could be not selling, or have expensive storage costs.
Wherever you're selling, you'll require a method for monitoring all this. Here's more from Amazon regarding the management of stock.
Service to customers and keeping an excellent rating for sellers
If you are learning the best ways to sell on Amazon, you'll find it's somewhat more challenging than it is with your own store on Amazon. You must create processes to provide customers with excellent service level so you can earn excellent seller reviews.
First, be sure that you use the descriptions of your products to be able to answer as many inquiries as you think customers might have to.
Second, use good images and other visuals so that it is easier for buyers to understand what they're buying.
Third, respond positively to every review, even the negative ones. This shows you are attentive to your customers and you want to provide the highest quality service.
Then one, at Amazon you have the option of using a tool called Brand Follow which provides a way for customers to connect with you even when they don't purchase items on their first visit. If they choose to follow you will be informed of any updates to your products, so you have a possibility of regaining their trust.
Sell your products on Amazon Build your future with
With , you can benefit in endless freedom, total control, and powerful capabilities -- all without selling fees on the platform. Additionally, you don't need to fret about rival services appearing right on top of yours!
Selling on multiple channels helps you reach the highest percent of your target audience. You can also connect with them right in the place they're. It offers a range of multi-channel extension options that let the connection of your online store with Amazon, eBay, Etsy, Facebook, Pinterest, and more.