There’s no denying that Amazon is an absolute titan in the e-commerce space, or the commercial space in general. With the company raking in over $680 million each day as of 2021, it’s no surprise that people would want a piece of that pie.
If you want to carve out your little slice of that e-commerce empire, you need to know how to sell products on Amazon.
If you’ve always wanted to open your store through the largest selling platform known to man, then read on. Our guide will show you everything you need to know about the process.
Research, Research, Research
First things first, as with any online business, you need to research your market. Whether you sell your products or someone else’s, you need to know if there’s a market for you. Otherwise, you’re wasting time and money by creating an Amazon store.
Look at what products are trending on Amazon right now, or examine common Google keywords that lead to products. This can give you an idea of the types of products that people are looking for in general.
Lastly, make sure you research what licenses, if any, you may need to operate your business. You can learn more about if you need an LLC license to sell on Amazon from the Wizards of E-Com.
To Sell Products Online, You Need Products
If you want to sell on Amazon, you’re going to need products to fill your store. There are a few ways to go about stocking your inventory, including but not limited to:
Create Your Own
If you custom-make your candles, cosmetics, home goods, or artwork, then all you need is a decent stock of pre-made inventory. Once you have a solid amount of items prepared, you can take pictures and get them ready to list.
White Label Products
Let’s say you have ideas for what you want to sell, but can’t be bothered with the process of actually making them yourself. However, you still want to create your own branding for your Amazon store. That’s where white label products come in.
These are generic products that you can buy in bulk, label with your branding, and ship to consumers right away. This cuts down on manufacturing and product design costs and reduces the amount of experience needed to sell.
If you want to hop right into the Amazon seller market, you can always dropship third-party products. You don’t even have to worry about keeping stock on hand, as all orders go out to third parties.
Decide Which Plan You Want to Use
The next step is to figure out which selling plan you want to use. If you don’t think you’ll sell more than 40 products in a month or are still deciding what you want to list, consider going for an Individual plan.
If your business has specialized tools that it needs to function and you’re going to sell more than 40 items in a month, you need the Professional plan. The Pro plan gives you access to greater insights on your sales reports, as well as access to the Launchpad and Handmade programs.
With the Individual plan, you pay 99 cents per item sold as you go. With the Professional plan, you’ll have a monthly subscription fee of $39.99 a month at a minimum and can get higher if you sell in several countries.
Create Your Amazon Seller Account
Once you’ve decided on a plan, it’s time to create your Amazon seller account. When you do, make sure that you have all of the following information close by:
- Business phone number
- Government ID
- An active credit card
- Business email address
- Business bank account information
- Your tax information
If you have all of that ready, then head on over to sellercentral.amazon.com. Amazon will then ask you for all the details about your business and your personal ID. If you sell certain specific products, like jewelry, videos, or grocery items, you may need to submit an approval request.
Choose Your Fulfillment Plan
Once you’ve received the relevant approval, it’s time to choose your fulfillment plan. What does that mean? Well, your fulfillment plan determines who’s going to ship your products to your customers.
If you choose to Fulfill by Merchant (FBM), then you’ll be handling all the shipping and customer service on your own. If you choose Fulfillment by Amazon, you instead ship your product to an Amazon warehouse and receive payment from the Fulfillment Center every two weeks.
FBA has more fees associated with it, but FBM can be more of a hassle to deal with. It’s up to you which method you feel more comfortable dealing with.
List Your Products
With all that out of the way, it’s time to list your products! When you’re first learning how to sell products on Amazon, you may make a lot of amateur mistakes, like:
- Not taking good product photos
- Not doing keyword research for your product
- Not having variations in product selection
- Rambling bullet points or descriptions
However, if you learn from these errors and improve, you may see an increase in your sales.
Keep on Top of Your Reviews
Last but not least, make sure to stay on top of your customer reviews. Respond promptly to consumer feedback, positive or negative. If you see negative customer responses, look into their claims to ensure that they hold weight, then see what you can do to make it right for them.
Remember, when you’re just starting, one bad review can sink your entire store.
Let’s Review How to Sell Products on Amazon
Figuring out how to sell products on Amazon can be tricky. However, if you conduct the proper research, find the right products, and get a good grasp on the Amazon seller plans and fees, you’ll be well on your way to success.
Did you find this guide to selling products online helpful? Would you like to learn more about Amazon sales or e-commerce as a whole? If so, check out The Business & Finance section of our blog for more selling tips today!