Online selling is one of the most popular methods used by entrepreneurs to make money online. In today’s current eCommerce landscape, sellers have various options in terms of which platform to use for their online business. Successful sellers wanting to expand into different markets often opt for prominent marketplaces like Amazon. Online sellers find Amazon.com a lucrative avenue for their online business.
If you want to participate in the growing Amazon marketplace, here is a beginner’s guide and some helpful insights on starting an Amazon business.
Why Should You Be Selling on Amazon?
Before we delve deeper into how to sell on Amazon, refresh your understanding of why Amazon remains a popular destination for both sellers and shoppers alike. Here are some of the reasons why online sellers should sell on Amazon.com and its international marketplaces.
Newbie Friendly
Amazon is a newbie-friendly platform for online sellers. Starting an Amazon business requires relatively low investment. Plus, creating an Amazon selling account is simple.
You can either start as an Amazon FBA or FBM seller. Depending on your business goals and preferences, you can let Amazon handle product fulfilment or hire a third-party service to do it for you.
Far-Reaching Influence
Needless to say online sellers tend to start an Amazon business because of the eCommerce site’s established customer base and global dominance. As of 2023, Amazon ships to customers in more than 100 countries and regions, making it an ideal selling platform for online sellers.
Multiple Business Models
Choosing Amazon as your business platform gives you the freedom to choose a business model. With Amazon, you can choose from private label, retail arbitrage, online arbitrage, wholesale, or handmade as your business model. These business models can easily fit with your business goals, budget, and expertise.
Guide to Creating an Amazon Selling Account
When starting an Amazon business, the first step is creating an Amazon selling account. Every Amazon seller uses a seller account for product listings, order fulfilment, and receiving payments for purchased items.
To help you begin your Amazon selling journey and start making money online, here is an overview of the steps for creating an Amazon seller account.
STEP 1: Amazon has made it easier for aspiring Amazon sellers to start their journey on the platform. Whether you want to establish your brand on Amazon or to clarify something before launching your Amazon store, you can now seek assistance from a dedicated Amazon account representative.
To begin the onboarding process or request support, CLICK HERE. Once redirected, proceed to the next step by clicking the “Learn More” button, as seen on the image below.
STEP 2: A dialog box will appear after you click the “Learn more” button, prompting you to enter specific details. Amazon will ask for your name, company name, email address, phone number, and website. If your business doesn’t have a website, you can simply use “amazon.com.” Other relevant information will likewise be requested, as shown in the image below.
Image Source: Amazon
STEP 3: Once you have submitted the form, a thank you message will appear along with additional instructions concerning your submission, as shown in the image below.
Image Source: Amazon
STEP 4: While waiting for Amazon’s response via email, you can also check available Amazon selling plans by CLICKING HERE. This is an alternative option if you wish to sign up immediately for an Amazon selling plan.
To choose between the two selling plans on Amazon, go to the “Pricing” tab and click “Compare Selling Plans.” You can choose from two options: Professional and Individual selling plans.
Image Source: Amazon
Worth noting that the professional selling plan is the ideal choice for sellers intending to sell more than 40 products per month. However, the individual plan will do if you plan to sell on a smaller scale. Here is an overview of the main difference between the two Amazon selling plans.
STEP 5: Once you have chosen a selling plan, you will then proceed with the sign-up process to create your Amazon account. Regardless of the selling plan option you will choose, once you click “Sign up for Individual” or “Sign up for Professional,” you will be redirected to a login page as seen below.
Image Source: Amazon
Once redirected to the login page, click the “Create your Amazon account” button to create your Amazon account.
STEP 6: Once clicked, you will be redirected to another page where you will be asked to input the following information, as seen in the image below.
Image Source: Amazon
After adding the necessary information, you may click “Next” to proceed with the Amazon account creation process.
Just a pro tip, when assigning passwords for your Amazon seller account, you can use a password generator or freemium password manager to be more digitally secure while simplifying the process of using strong passwords for your Amazon account.
Image Source: Amazon
Amazon will send a One Time Password or OTP to your dedicated email address. Simply input the OTP sent by Amazon and proceed with the Amazon account creation process by clicking the “Create your Amazon account” button.
STEP 7: After submitting the OTP, you will be redirected to another page wherein Amazon will provide you with the overview of the steps you will have to take and the things required from you to complete the Amazon selling account creation process.
Image Source: Amazon
STEP 8: Once the “Begin” button is clicked, you will be redirected to another page where you will provide Amazon with your business information. Once you have filled in all the information needed, you may proceed to the next step by clicking the “Agree and continue” button.
Image Source: Amazon
STEP 9: After providing your business information from the previous page, you will then proceed to the next steps. In the succeeding steps, you will need to provide information relevant to the following sections, including the following:
• Seller Information
• Billing Information
• Store Information
• Verification
To give you a more detailed guide on how to proceed with Amazon account creation, here is a step-by-step video presentation you can follow:
Important Considerations When Starting an Amazon Business | How to Sell on Amazon
Starting an Amazon business can be quite demanding, especially for people new to online selling. There are many aspects of the business you need to deal with, including product detail page optimization, additional selling fees, customer returns, market research, and other important factors that can help you generate sales and provide customer service the Amazon way.
To be aware of the things that matter most when selling on Amazon, here are some of the vital tips on how to sell on Amazon successfully.
Products
Consumers are drawn to online selling platforms like Amazon because of the variety and availability of products listed on the website.
Amazon intends to be all things to all people, which is why more than 350 million products are sold on Amazon. With such a catalog of products, it is a challenge for those who want to start an Amazon business to find a product to fit Amazon’s standards and suit the needs & wants of consumers.
Product research is crucial when it comes to choosing inventory items for your Amazon business. Familiarize yourself with Amazon product research and the necessary tools to perform such a task.
Fulfillment
Currently, there are two popular options when it comes to Amazon fulfilment. When starting an Amazon business, online sellers may choose between Amazon FBA and Amazon FBM.
Accordingly, 64% of sellers prefer Fulfillment by Amazon (FBA), and around 22% of sellers use both FBA and FBM for their fulfilment options.
As an overview, the FBA method means that sellers or the sellers’ suppliers send the products directly to the Amazon Warehouse. Amazon will be the one to store the inventory and ship it directly to the customers. Under the FBA program, customer service will likewise be handled by Amazon.
In contrast to the FBA method, FBM means that sellers list their products on Amazon, but do not utilize Amazon fulfilment centers, and instead take care of the storing, shipping, and customer support.
Both fulfilment methods have their own pros and cons. However, you can utilize both fulfilment methods depending on the situation.
Marketplaces
Another consideration to look into when starting an Amazon business is marketplace. Amazon offers more than just the US market for online sellers. You also have the option to expand your business to other Amazon global marketplaces, including but not limited to the following:
Amazon International – America
Amazon International – Europe
Amazon International – Asia-Pacific
Amazon International – Middle East
If you are willing to explore other Amazon international marketplaces to boost sales, it is important to understand the many requirements for operating on or across different Amazon marketplaces.
Fees
Starting an Amazon business will require sellers to shell out some cash. The expenses of your Amazon business will largely depend on the following Amazon fees you will need to pay:
Selling Plan: If you choose the Individual plan, you will pay $0.99 per unit sold, while you will pay $39.99 per month no matter how many units you sell with the Professional program.
Referral Fees: This refers to the fees that Amazon charges sellers for each item sold. The referral fee amount depends on the product category, but most referral fees are between 8% and 15%.
Fulfilment Fees: A fulfilment fee varies depending on whether you are an FBA or FBM seller. For an Amazon FBA seller, Amazon has a standard fee depending on the size tier of your product. With FBM, it will likely depend on the rate and your arrangement with your logistic partner.
Other Costs: Other costs or additional fees may include but are not limited to manufacturing costs, overseas shipping costs (for inventory items outsourced abroad), insurance, and storage fees.
Pricing
Another consideration when starting an Amazon business is pricing. You need to have a reliable pricing strategy to be competitive. An effective pricing strategy will help you win more Amazon Buy Box and attract potential buyers to your listings.
The majority of high-volume and experienced Amazon sellers utilize Amazon repricing software to help them with price adjustments. An AI repricer, for example, can help automatically adjust existing listing prices and outsmart competition.
Amazon Buy Box
The Amazon Buy Box is one of the most important considerations when selling on Amazon. Most Amazon sellers aim for their products to appear in the Buy Box, where more than 80% of the sales take place.
The Amazon Buy Box is not simply awarded to any seller. For your products to be featured in the Buy Box, ensure that you are eligible to win the Buy Box. Apart from eligibility, you should also consider these other factors checked by Amazon when awarding the Buy Box, such as the following:
• Price
• Availability
• Delivery Speed
• Customer Service
Amazon Seller Tools and Resources for Your Amazon Business
Starting an Amazon business also entails extensive research in order to understand how to grow your business. Amazon business-related tasks continue after creating an Amazon seller account; constant optimization and updates are required to succeed in the industry.
In order to help you grow or expand your business, you need to maximize all the resources available to you. One good example would be utilizing software tools that can help elevate your overall business performance. Here are some of the must-check Amazon seller tools for your business.
• Amazon Analytics Tools
• Amazon Product Research Software
• Amazon Bulk Upload Software
• Amazon PPC Management Tools
• Amazon Price Monitoring Software
• Amazon Inventory Management Software
• Amazon Feedback Management Software
Apart from the suite of tools available to sellers, there is also Amazon’s Seller University, a valuable resource tailored to guide sellers in launching their Amazon business and improving their skills throughout their eCommerce business journey.
Seller University offers various educational resources through videos and written materials. This extensive Amazon library equips many sellers with the knowledge to help them improve their product pages & product descriptions, utilize relevant keywords, identify potential high-quality listings, maximize the services of an Amazon fulfillment center, and more.
To access the extensive collection of resources, simply login to your Seller Central account and open the Seller Central main menu. Once the menus appear, hover over the “Learn” tab and select Seller University, as seen in the image below.
Start Your Amazon Business The Right Way
Amazon is loved by consumers worldwide because of its commitment to operational excellence and customer obsession. Furthermore, the tips and insights mentioned above can help you with a holistic approach to your Amazon business. Recognizing the vital components of the business and making effective use of essential seller tools and resources will set your Amazon venture on a path toward success.