Do you like to work at your own pace at a time of your choosing? Are you not the type of person who wants to be chained to the same cubicle for years in a row, but choose your workplace, no matter where it is? Your living room couch, cafe in Hawaii? Selling successfully on Amazon might allow you to do exactly that if you use the right tools to sell wisely.
Today, the Amazon marketplace is lucrative for many sellers. But doing things wisely is crucial. Let's dive into how to sell through Amazon and learn more about Amazon e-commerce.
So, how much money do you need to start an Amazon business? If you think investing in an Amazon business requires huge amounts of money, you are wrong. Of course, it depends on a variety of factors, but even with a small budget (less than $1,000), you can find some items and start an Amazon FBA business.
How to Become an Amazon Seller
Follow the steps below to become an Amazon seller:
#1 Develop a business plan first
Before you learn how to sell on Amazon, you have to develop a strategy to make sure everything goes according to plan. Your company mission, market analysis, goods and services, marketing and sales strategy, financial plan, etc. should all be included in the business plan.
You need to know a lot of things. You have to do market research, examine trends, learn about your competitors, choose the types of products you want to offer, and determine how much you are willing to spend on product sourcing, marketing, and promotion.
#2 Determine Your Niche
To sell successfully on Amazon, you must identify a profitable niche. Conduct market research to find relevant, trendy and competitive merchandise related to your interests. We strongly believe that it is easier to work in a niche that seems attractive to you when you know very well what you are selling.
Learn about current product trends and research their emotional impact, usefulness, popularity and recognition.
If you want to become popular in the market, you must identify the selling point, or develop a brand new selling point.
When it comes to an ecommerce strategy on how to sell on Amazon, first determine whether you’re offering wholesale, private label, or both before you start looking for products. Take a look at the difference:
People who sell items at wholesale prices do so as a third party and not as the actual owner of the brand. They generally have no effect on product pages. Instead, they distribute it to several other vendors who also sell branded merchandise.
Private label or brand
When people offer goods under their own brand, they sell private label products. Today, however, no one needs to build their own factory.
You can create a unique product page for each item using your own branding. Therefore, you can choose how the content of this page should look, and the Buy Box will usually appear automatically. Instead, with Amazon search, products from different companies compete with each other. Therefore, getting a high rating is crucial.
#3 Conduct market research
Once you have identified your niche, you need to do market research to confirm it. Watch your competitors' sales over time. By monitoring your competition, you can gain a more accurate picture of a market, area of expertise or market segment.
Another suggestion is to research or talk with some suppliers or customers to find out how they feel about these items.
#4 Open a seller account on Amazon
Personal and professional accounts are different. The first one is free, but you can expect to pay $1 per item sold after that. For the second, you have to pay $39.99 per month.
The best solution is to start with the personal and then choose the pro version when you sell more than 40 items per month.
Fulfillment by Amazon
A preferred option for sellers is FBA . The selling process just got easier. However, this comes at a price. The description clearly states that Amazon handles most of the logistics. It's a great way to quickly scale your business, but storage costs can ruin the fun if you're not careful.
Amazon has launched its FBA service to meet the growing demand from sellers. With the help of this service, merchants can leverage the platform's vast consumer base and distribution network to achieve their business goals. This is the most common platform option for stores.
FBA or "Fulfillment by Amazon" refers to the process by which Amazon stores your items in its inventory, processes your order, and provides customer assistance. You must register for an Amazon seller account and add FBA to your account to use this service. It is important to set up a company according to the guidelines.
The FBA summary is as follows:
Products are purchased by sellers, who then ship them to Amazon warehouses.
Items are held in Amazon's fulfillment facilities until an order is placed, and storage fees are charged to sellers and typically vary with the size and volume of the item.
When you place an order, Amazon will complete the transaction and make changes to your inventory.
Amazon packs and ships the package.
Customer assistance is handled by Amazon, and orders are tracked, and the retail giant also manages refunds and returns.
Every 14 days, your account will be automatically credited to your earnings.
Note: FBA-fulfilled items are eligible for Amazon Prime. Therefore, sales can increase.
Let's look at another option, which is to package and ship items yourself as an Amazon individual seller. In this case, you will be responsible for managing, storing and shipping your items upon receipt of the order. If individual sellers process orders through FBM, they will also be responsible for customer service and product returns. This requires a lot of labor, and shipping is usually more expensive than FBA. There is one advantage: there are no storage fees.
Get positive feedback from customers
Without credibility, not many people dare to buy your products. As you might have guessed, reviews play a vital role in building trust with customers. Shoppers must choose between sellers offering the same type of products. And specific sellers with more positive reviews will be prioritized.
Additionally, a product listing's performance in Amazon search is largely influenced by the number of reviews and the product's average customer rating. Therefore, having a lot of positive reviews helps a product rank well, which is crucial to its sales success.
For those who are just learning how to sell on Amazon and taking their first steps in e-commerce, optimizing prices may sound confusing or even unnecessary. But repricing is one of the most critical aspects of success.
Total pricing (i.e. item price plus shipping) is the most important factor for Amazon sellers. If your final pricing is reasonable and competitive, you will have a better chance of getting into the Buy Box .
This is where the term "repricing" often used to describe Amazon's price optimization comes into play. To stay competitive on Amazon and increase your sales, we recommend using smart software instead of spending hours manually optimizing your prices.
It is important to understand the capabilities of the dynamic repricer. It continuously assesses market conditions and records any adjustments to product pricing or competitor structures. The user’s rate is then adjusted based on this massive data, not according to a single rule like a static tool, but according to the needs of the market and the user’s own market share.
Remember, it's not always the item with the lowest battle price that gets the Buy Box.
Now you know how to start selling on Amazon. All in all, selling on Amazon sounds pretty good for anyone looking to get out of their 9-to-5 job and gain the freedom to make money. But, never forget that it's hard to succeed if you don't do it wisely, follow Amazon's guidelines, and use repricing software.
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