How to sell on Amazon. Guide to make money with products
Amazon is the largest marketplace that exists today, although more than half of the products are not your own but from external sellers, which can mean a great opportunity for you. That's why you should learn how to sell on Amazon and make money.
Every day more and more people want to register on this platform as sellers to increase the sales of their business, taking advantage of all the benefits it offers.
If you are part of these, do not miss this post because I will explain how to create a store and start selling on Amazon to make money.
What is Amazon
Amazon is a U.S. company dedicated to e-commerce, whose headquarters is located in Seattle, Washington.
It is one of the first companies to offer and sell goods over the Internet on a large scale and has not stopped growing, as it is present in more than 15 countries.
How Amazon came about
Jeff Bezos, the founder of Amazon, is a Wall Street expert, so after reading that the Internet market was projecting annual growth of 2300%, he decided to create a list of the items he believed would sell the most.
He concluded that the best option was to sell books because prices were low and there were plenty of titles in stock. The decision was the right one and he achieved sales of up to 20,000 USD per week.
The idea quickly grew and Amazon began to sell all kinds of products until it became what it is today: the king of eCommerce.
If you are thinking of starting to sell your products on Amazon, this section will surely help you make the definitive leap. Let's get to know the main advantages of selling on Amazon.
Increase your sales
Amazon is one of the most visited portals in the world, which is key for your products to reach more markets and more people who might be interested in them.
Although this effect is not immediate, by reaching a larger number of people, it is much more likely that more people will buy your products. You just have to take care of the SEO elements in your important sections.
You save money
Amazon receives millions of visits daily, so you may not need paid advertising to achieve sales. Maybe only at the beginning, when your publications are filled with comments, but from then on everything can be organic (without paying).
One of the advantages is that Amazon has its search engine, so buyers who type in your products will be able to find you easily. Of course, the competition is high, so you have to distinguish yourself smartly.
This doesn't mean that you don't pay for advertising on Amazon, but if you know how to manage it, it can be for a very short period.
You can reach multiple markets
Thanks to the fact that Amazon has a presence in several countries, you can get people from other parts of the world to buy your products without shipping or distance being an impediment.
Here it will always depend on what you decide, that is, you choose which corners you want to reach. But the possibilities are quite extensive, so you could be positioning your products in other countries.
It is very easy to start selling on Amazon
In terms of structure, uploading your products and having your own space on Amazon is very simple. You only have to make a few clicks, as you will see below.
It won't take you more than 10-15 minutes to complete all the information required for you to create your place of business on this eCommerce platform and the same goes for uploading your products.
How much do you charge per sale
Amazon is an excellent platform for generating sales, but of course, it must also have its financial benefits, depending on the type of account you have.
Amazon charges you a certain percentage for each product you sell. This fee depends on the category of the product: it ranges from 8% to 45%.
The cost of shipping your products to reach your customers' hands depends directly on whether you handle the orders yourself or if you rely on Amazon's logistics.
This is calculated based on the product category, weight, and dimensions. The price ranges from $2 to $140.
In addition to the base fees, Amazon has some additional fees:
- Inventory fees in case you store in an Amazon logistics center.
- Fee for a high number of unsold listings in 12 months ($0.005).
- Administration fee for refunds.
How to sell on Amazon
5.1 Tips before you start selling on Amazon
Whenever you start a business or have one in mind, it is important to have a plan to see that everything is fulfilled and that the project you have in mind is carried to a good destination.
Therefore, we want to share with you some of the steps you have to take before launching into action and starting selling on Amazon.
5.1.1 Design a business plan
The first thing we recommend you do is to create a work or business plan in which you define your mission as a business or company, analyze the market, and decide what products you are going to sell and how among other actions.
For example, from this plan, you have to obtain information about the market you are facing, the trends in your niche, how your competition moves or works, and see more or less how people interested in that product/area are doing.
With this, you will be able to know which items are more profitable, what you should innovate to attract the attention of your buyers and you will be able to know how much your prospects are willing to pay.
5.1.2 Decide on a niche
To sell on Amazon, it is very important that you know how to choose a profitable niche to achieve the success you are looking for.
In this step, the important thing is that you delve into everything you were able to obtain from the implementation of your business plan about the competition, relevant products, and other elements.
You should also consider the points of sale of your products to be able to move them in an agile way and reach those who need to be reached by the means they like the most and in the most efficient way possible.
5.1.3 Research the market in which you want to enter
Once you have the niche, you must verify that it is the right one. How? Utilizing market research. We recommend that you follow up on your competitors' purchases for some time.
This will allow you to have a much more realistic and realistic view of how the niche or segment you have chosen reacts or acts. You can also contact suppliers or customers to learn about their experience with those products.
Sometimes, in market studies, surveys are conducted to check sales figures and to be able to advance in the business plan. So don't hesitate to use different strategies.
5.1.4 Conduct a supplier search
Having all the above done, it is time for you to start looking for product suppliers, through platforms such as AliExpress, for example or some others.
The most important thing is that you do not stay with just a few, but that you see a lot of them so you can decide which one is the best and you can choose it. Also, we recommend you to look for reviews on these suppliers to get a better idea.
Do not skimp on time; take as much time as you need to choose the best. Also, do not hesitate to ask all the questions you think are convenient. It is better to solve them at this point than when a commercial agreement has already been signed or reached.
Now it is time for us to move on to the practical part in relation to the star platform: Amazon. Take a look at the step-by-step on how to sell on Amazon.
5.2 How to create a seller account on Amazon
The first thing you have to do is to register in the Amazon seller center. In this step, you have to provide data such as:
- Company type
- Company registration number
- Company address
- Cell phone number (verification will be made)
- Bank details
- Other personal data.
Also, this is where you should decide what type of merchant account you are going to have: personal or commercial (more about them later). Most people opt for the commercial account, but if you are just starting, you can try the personal one and then switch.
5.2.1 These are the documents you need to create your account
To register as a seller you will need some documents and data, such as:
- Name of the account holder.
- Email and cell phone number.
- Company information: Company name, business address, and public name (this will be the name of your Amazon store).
- Interbank PIN number.
- Debit or the credit card of the account holder (the first monthly payment of the seller account will be charged here; the following payments will be subtracted from your income).
- RFC of the company or individual.
5.3 How to select and highlight products
To start adding your products to Amazon and selling them, you first need to create product listings. To do this, do the following:
- Go to the Inventory section (located at the top).
- Click on "Add a product" and search for your product among those already offered on the platform.
- There you will see several options from your competitors. Select the one you want and fill in the information requested.
- If there is no product like yours, you have to create a new listing.
Try to make sure that your product listing contains all the information that is relevant to buyers, including real photos, and also that it is attractive so that it catches their attention above the others.
5.4 How to choose and set a price
When you have completed the fields, you will have to determine a price for each of the products you will offer for sale. This is very important because it will determine the profitability of your business.
To do it right, we recommend you take into account the following:
- Cost and benefits of your products.
- Analyze your competitors.
5.5 How to choose and ship
You have two options when selling on Amazon: manage the shipping or hire the Amazon Logistics service, called FBA (Fulfillment by Amazon).
If you choose the first option (the most convenient), Amazon will take care of managing the shipments, tracking them, storing your products, and carrying out all the return processes, which is very practical.
If you choose the second option, you must send your products to Amazon's warehouses in advance so that when someone places an order, Amazon will manage it autonomously.
5.6 How to manage your seller account
The selling process does not end when the product is delivered. You need to follow up on customer feedback/reviews and see what is working and what is going wrong with your items.
This will allow you to build credibility with people who visit your Amazon profile. Also, you must write emails to buyers to ask for reviews if possible.
Types of seller accounts
For you to start selling your products on Amazon, you need to create a seller account, as you have seen in the process. For this, you have two options: individual account and professional account.
Individual seller account
This type of account is ideal for those who are going to sell less than 40 items per month and who only want to pay Amazon for each sale achieved.
The individual seller account is the right one to start offering your products here, while you get to know the platform in depth.
Commissions depend on the amount of the purchase and the category of the item; they range from 8% to 15%. Here you can check Amazon's commission's table. This type of account costs 0.99 USD per sale.
Professional Seller Account
This type of account is the best option if you sell on Amazon regularly and the quantity exceeds 40 units. Unlike the individual profile, with this account you can:
- Sell in all Amazon categories.
- Create new products to put on sale.
- One-click sales.
- You can offer a product to be gift wrapped.
- Access to more sales reports.
- Access to FBA inventory.
The cost of this type of account is fixed: 39.99 USD per month regardless of the number of sales you have.
Tips to increase your sales on Amazon
Selling on Amazon is an excellent option but, as we already said, there is a lot of competition, so you should have ideas to improve the visibility of your products and achieve good sales. Now we will give you some tips.
Focus on the benefits
In the descriptions, it is important to mention the features of your products, but you have to go further: talk about the benefits. Explain how your potential customers can improve their lives if they consume your product.
Provide relevant information that convinces people that your item is different and give examples of how your product can solve a problem they have.
The use of keywords in descriptions, titles, and images is very important, so you should pay attention, but you also have to focus on the backend to improve your visibility.
Amazon backend keywords are terms hidden to the user that can be added to a product listing to increase its visibility.
Use tools such as social media
Don't just stick to what Amazon can do for you through its search engine. You can promote your products through different social networks, such as Facebook or Instagram.
Good marketing and sales strategy cannot be limited to a single channel, so implement actions so that you can reach more people and they can learn about your products for sale on Amazon.
Now you know how to create an Amazon store and how to sell on Amazon. Then we invite you to create your account and start making money in this marketplace.
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