Amazon has expanded its influence beyond the consumer market by addressing the growing needs of businesses and organizations for efficient procurement processes. This led to the creation of the Amazon Business platform, marking its entry into B2B eCommerce.

This platform represents a strategic innovation, leveraging Amazon’s expertise and infrastructure to cater to bulk purchasers or business buyers‘ unique needs. Since 2015, Amazon B2B has been offering a comprehensive choice of office supplies and other essential business needs. 

Amazon Business is a testament to the tech giant’s consistent commitment to meeting the diverse needs of its customers while driving innovation in the business sector. Should you aspire to engage in the Amazon Business Seller Program, here are key insights, statistics, and trends crucial for your understanding of Amazon B2B.

What Is Amazon Business?

Amazon Business is a platform tailored to serve the diverse needs of businesses and organizations, spanning from local enterprises to multinational corporations, educational institutions, nonprofit organizations, and government entities. Amazon B2B grants access to an extensive list of products, mirroring those found on Amazon.com, but with more focus on bulk purchases and specialized requirements of business buyers.

In a nutshell, Amazon Business aims to introduce bulk purchasers to a multitude of business sellers worldwide. streamlining procurement processes and ensuring access to a wide range of products tailored to the needs of the B2B market.

Benefits of Enrolling in the Amazon Business Seller Program

To engage in Amazon’s retail environment, sellers must create an Amazon Seller Central account. Likewise, would-be Amazon business selling partners aiming to operate within the Amazon Business platform must enroll in the Amazon Business Seller Program to create an Amazon Business account. This program provides various advantages to brand owners operating on the Amazon B2B platform, such as:

Access to Business Customers: The number one reason why business owners should consider becoming an Amazon Business seller is the platform’s customer base. Amazon designed a separate membership program called Business Prime, that Amazon B2B sellers can leverage. 

Selling on Amazon B2B gives you access to millions of business buyers, including small businesses, large enterprises, schools, hospitals, and government agencies. These Amazon Business customers have unique needs and purchasing behavior compared to individual consumers, which might fit your business. 

Bulk Pricing and Quantity Discounts: Amazon Business also allows business sellers to offer discounts to business buyers in the form of bulk pricing and quantity discounts. By implementing this pricing strategy, you can attract bulk purchasing customers, increasing order volumes and sales.

You can further refine your Amazon Business pricing strategy with the help of an AI Business Repricer to offer quantity discounts automatically across different tiers. Similarly, an AI Repricer can adjust prices as needed to ensure you offer the most competitive pricing to secure the Amazon Business Buy Box.

Enhanced Product Visibility: Products listed on Amazon Business are often prioritized in search results for business-related queries. This increased visibility in the Amazon B2B platform can help sellers reach a broader audience of business buyers actively searching for their products.

Access to Business Analytics: Amazon Business provides sellers with access to analytics and reporting tools. These insights allow sellers to track performance metrics, identify trends, and make data-driven decisions to optimize their Amazon B2B strategies.

Dedicated Customer Support: Amazon Business provides reliable customer support for business sellers, helping them navigate the unique challenges and opportunities of selling to business customers. Amazon Business sellers can receive assistance concerning account setup, product listings, and resolving business-related issues.

Efficient Delivery Services: Amazon B2B sellers can likewise leverage Amazon’s renowned delivery infrastructure. Amazon Business ensures prompt and convenient shipping for business orders through its multiple fulfillment centers and shipping partners worldwide, maintaining the reliable fulfillment service expected by business customers.

Support for Small and Diverse Enterprises: Amazon Business offers small and diverse businesses the chance to showcase their products to a larger market. If you are a qualified Amazon Business seller, you can compete with big corporations and major brands on the Amazon B2B platform.

Global Reach: Initially launched in the United States, Amazon B2B has expanded its presence to several other countries, including Canada, the UK, and Germany, ensuring that business sellers can have access to the international market. 

Amazon Business offers a versatile platform for businesses of all sizes to meet the demands of a diverse clientele across various industries.

Amazon B2B Market and Procurement Insights | Key Statistics

Since launching in 2015, Amazon Business has experienced significant development and transformation. With nearly a decade of operation, it becomes crucial to highlight pivotal milestones and essential statistics.  

Understanding these Amazon B2B milestones and statistics can provide valuable insights and guidance for Amazon Business sellers, aiding them in navigating the platform’s dynamic landscape and optimizing their strategies for success.

• After it was first introduced in the United States as a platform for business customers, Amazon Business expanded outside the US, branching into Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, and India. (Source: Amazon Business)
• Amazon Business is the shopping destination of major companies, including 96 of the companies listed in the global Fortune 100. Currently, Amazon B2B has over 6 million active customers worldwide, contributing to the 10 billion annualized global sales of third-party sellers. (Source: Amazon Business)

• The Seattle-based company continues to invest in its Amazon B2B platform due to its significant growth potential. In Europe alone, Amazon B2B has seen impressive growth rates, with a compound annual growth rate of 25% from 2020 to 2022. (Source: eMarketer)
• Aside from the US and Europe, Amazon B2B is a popular marketplace in other countries. In particular, about 70% of B2B buyers in India, 47% in South Africa, and 46% in the UAE rely on Amazon Business for their significant procurement needs. (Source: Statista)

Procurement-Specific Insights

Here are significant findings from Amazon’s  2024 State of Procurement Data Report in partnership with KRC Research, providing Amazon B2B participants with more significant insights into procurement.

Top 5 Risks Facing Procurement (Next 1-2 Years):

• Costs and Budgets
• Markets and Supply Chain Volatility
• Security and Technologies
• Politics and Regulations
• Staffing Issues

Procurement Budget Projections:

53% of buyers anticipate higher purchasing budgets in 2024 compared to 2023.

Top 3 External Challenges in Procurement:

• Rising Costs for Purchases
• Preparing for Unexpected Economic Changes
• Working with Suppliers Unable to Support Digital Procurement Needs

Top Priorities in Procurement (Next 1-2 Years):

• Retaining and Developing Existing Talent
• Attracting or Hiring Top New Talent
• Reducing Costs in Purchasing
• Establishing or Refining Procurement Standards Across the Organization
• Building Resilient and Agile Supply Chains

Preferences in Purchasing from Certified-Seller Groups:

• 59% prefer sellers that adhere to sustainable practices.
• 40%  favor certified small businesses.
• 39%  opt for local businesses.
• 25% consider diversity-owned businesses.

Top 5 Purchasing Categories Business Procurement Handles:

• IT peripherals
• Semi-finished products and components
• Maintenance, repair, and operating items
• Finished goods or products
• Safety products

Important Purchasing Considerations for Buyers:

• The location where the products you purchase originate
• The HR policies and standards of the organizations you purchase from
• The type of transportation used to ship the products you purchase
• The Environmental, Social, and Governance or ESG policies of the organizations you purchase from
• The Diversity, Equity, and Inclusion (DEI) policies of the organizations you purchase from
• The route and the stops that the products you purchase make on their way to your organization

The key insights gleaned from procurement decision-makers and bulk purchasers allow you to make some adjustments favorable to your Amazon business. Additionally, other data relevant to Amazon’s growth and expansion reinforces Amazon’s mission to drive innovation and empower enterprises across the globe.

Amazon Business Embracing the AI Trend 

Artificial Intelligence (AI) is transforming procurement, enabling eCommerce businesses to enhance efficiency and drive informed decision-making. Business owners can extract insights from procurement data through artificial intelligence, aiding strategic planning and resource allocation. 

To capitalize on these advantages, Amazon has integrated AI technology into its business operations to ensure a seamless and convenient shopping experience for customers and sellers alike. 

Amazon acknowledges the significance of the “smart buying era” and its implications for procurement, as emphasized by Alexandre Gagnon, vice president of Amazon Business Worldwide, who stated, “At Amazon Business, we develop scalable solutions for customers and solve their biggest procurement challenges, and I couldn’t be more excited about the evolution of procurement.”

In addition to AI functions designed for shoppers’ convenience, the Amazon B2B program offers AI-powered features to enhance business sellers’ performance. Seller tools such as Amazon Repricer, Business Analytics, Business Guided Buying, and Amazon Business Spend Visibility leverage AI technology to optimize various aspects of sellers’ operations, empowering them to achieve greater efficiency and success on the Amazon Business platform.

AI Integration in Amazon Business

It is undeniable that Amazon Business and artificial intelligence are intertwined, particularly in how AI is utilized to enrich the platform’s offerings and enhance user experiences. Here are several examples of how Amazon B2B utilizes AI

Product Recommendations: Similar to its retail counterpart, Amazon B2B utilizes AI algorithms to analyze purchasing behaviors and preferences, providing tailored product recommendations to B2B customers. 

Search Optimization: Amazon B2B also utilizes AI algorithms to understand search queries better, returning relevant results even for complex or ambiguous customer search queries.

Personalization: AI enables Amazon Business to personalize user experiences based on past interactions, preferences, and industry trends. 

Supply Chain Optimization: AI algorithms are likewise used to optimize supply chain operations on Amazon Business, helping sellers better manage their inventory and shipping tasks. 

Data Analytics: Amazon also provides business sellers with AI tools to help them analyze vast amounts of data generated by transactions on Amazon Business, providing valuable insights into purchasing patterns, market trends, and customer behavior. 

Third-Party Integration: Amazon Business offers the option to integrate third-party AI software besides Amazon’s proprietary solutions. This enables business sellers to leverage external solutions to improve their operations, many of which are conveniently accessible through the Amazon Selling Partner Appstore.

Driving Innovation in B2B eCommerce

Amazon Business represents a strategic expansion of Amazon’s services into the business-to-business market, catering to the unique needs of business buyers worldwide. The Amazon B2B platform empowers brand owners and entrepreneurs to tap into a vast market while providing businesses with streamlined procurement solutions. 

Driven by a commitment to innovation and customer satisfaction, Amazon Business continues to shape the future of B2B eCommerce, leveraging AI technology to enhance user experiences and drive efficiency. As business customers navigate the evolving procurement landscape, Amazon B2B offers you an opportunity for a seamless and adaptable platform for success.

A testament to their success, the company still managed to rake in huge profits at the height of the Coronavirus pandemic and its aftermath. As of the second quarter of 2023, it was reported that Amazon net sales increased by 11%, from  $121.2 billion in Q2 of 2022 to $134.4 billion in Q2 of 2023. 

The success of Amazon is mainly because of the resources they allocated for the improvement of processes and policies. By spending over $4 billion for “incremental COVID-19 related costs,” the company managed to make a successful adjustment to their services.         

Along with the eCommerce company’s success, the accusation of Amazon killing small business has surfaced. Many ask, is Amazon killing small businesses, is Amazon killing the retail industry?

Amazon Killing Retail Small to Medium Enterprises  

Despite the success of Amazon and its offering of a safer avenue for shoppers to buy essential goods during the pandemic, some groups remain wary of its dominance. In particular, some people believe that Amazon’s success is actually causing more harm to small and medium-sized retail businesses. In unison, the concerned group asks, is Amazon killing small businesses?

This issue of Amazon apparently destroying the retail industry ecosystem is not something new. It can be remembered that in 2019, even the United States Treasury Secretary Steven Mnuchin believed that Amazon is adversely impacting the retail industry.

“I think if you look at Amazon, although there are certain benefits to it, they’ve destroyed the retail industry across the United States so there’s no question they’ve limited competition,” Mnuchin told CNBC.

The Impact of Amazon to Small to Medium Businesses

Amazon itself is not deaf to such allegations regarding their company and its practices. However, despite the accusations, Amazon remains to be one of the trusted eCommerce companies both in the USA and abroad. 

In contrast to the accusations of their critics, Amazon firmly believes that they are not killing small businesses, but rather helping them to reach more audiences while providing growth in the process. This was further emphasized by Jeff Wilke, Amazon’s CEO Worldwide Consumer, during one of the Amazon Accelerate virtual conferences. 

In the interview, Wilke highlighted the existence of a mutually beneficial relationship that Amazon has with its sellers, a greater portion of which is composed of small to medium business owners. It is estimated that nearly 2 million small and medium-sized businesses are operating on Amazon. 

With the growing members of third-party sellers, like those small and medium business owners, Amazon remains unthreatened by this growing population. 

According to Wilke, Amazon’s goal is to help sellers thrive, for if they thrive they will bring more selection that will in turn, lower item prices. Hence, benefiting more customers in the process. 

Innovations Amazon Introduced to Empower Small and Medium Enterprises

In order to empower small and medium businesses, Amazon introduced new seller tools and updated some platform features intended to drive success for small and medium enterprises. These Amazon seller tools and features help sellers facilitate better product launching, optimization, marketing, and customer service.  

Some of the tools launched and features improved by Amazon that offer powerful and cost-effective capabilities include:

Local Selling: Local selling empowers small businesses to provide the option of “online purchase, in-store pickup,” thereby expanding their reach to a more extensive local customer base.

Product Opportunity Explorer: This Amazon seller tool helps business owners determine new and high-potential products to sell online based on unmet customer demand. It gives sellers insight into what consumers search for, click on, and purchase online. 

Global Selling: In order to facilitate the expansion of small businesses’ international sales, Amazon has enhanced its global selling capabilities. This enhancement permits small businesses based in the United States to pinpoint opportunities for selling their products internationally. Moreover, sellers who handle order fulfillment independently can access Amazon’s Customer Service at no cost.

Search Analytics Dashboard: Amazon also introduced the Search Analytics Dashboard to help business owners better understand customers’ interests and shopping choices. It helps small businesses optimize their online store listings and develop effective inventory planning and product development roadmaps to grow their business on and off Amazon. 

Brand-Building Innovations: Amazon also introduced brand-building innovations to help businesses develop their brand, grow their customers, and increase sales. Some of the programs for brand-building that Amazon introduced include the Amazon Brand Referral Bonus, Amazon Customer Engagement, and A+ Story Cards.

Amazon Small Business Academy: To demonstrate its commitment to aiding business owners in their business growth endeavors, Amazon initiated and has been consistently updating the Amazon Small Business Academy (ASBA). This platform serves as a comprehensive digital resource hub catering to both aspiring and established business owners and online entrepreneurs.

Amazon’s Impact on Small Businesses In Numbers 

Last May of 2023, Amazon released its annual U.S. Small Business Empowerment Report, detailing that their investments and innovations to support business owners and entrepreneurs increased sales of U.S. independent sellers—most of which are small and medium-sized businesses.

Based on the report, the top categories by sales for independent dealers in Amazon’s stores include the following:

Top 1 – Health and Personal Care

Top 2 – Home

Top 3 – Beauty

Top 4 – Grocery

Top 5 – Apparel

In 2021, Amazon allocated $1.4 billion to foster the expansion of small and medium-sized enterprises. Consequently, independent sellers in the United States managed to sell over 4.1 billion products, which equates to an average of 7,800 products sold every minute.

The Vice President of Worldwide Selling Partner Services at Amazon, Dharmesh Mehta, emphasized that “Small businesses are the lifeblood of our local communities and the foundation of the U.S. economy. Amazon dedicates billions of dollars each year to offer entrepreneurs an ever-enhancing array of valuable tools and resources…”

Amazon serves as an effective platform for small businesses to make their online stores more visible to shoppers and ultimately grow their online sales. It is estimated that over 60% of Amazon’s store sales are generated by independent sellers, the majority of which are small and medium-sized businesses. 

Amazon’s support for small businesses extends beyond the borders of the United States, offering improved opportunities for small enterprises globally. Amazon EU also dedicated more than €20 billion to support logistics, tools, services, programs, and training for the success of Small and Medium Enterprises (SMEs) on its platform.  

Through these initiatives, Amazon enabled small businesses to actively engage in the European Single Market and international export arenas, leading to SMEs generating over €14.5 billion in exports and generating 100,000 new jobs.

Additionally, being in business with Amazon also means access to their advanced Amazon seller tools, including FBA calculator, repricers, and so much more. Therefore, allowing small business owners a seamless transition from traditional retail business to eCommerce. 

Embracing Change For Business Success 

Undeniably, Amazon has changed the retail and consumer landscape. However, it cannot be denied that with the entry of Amazon into the retail industry, it has become easier for sellers to reach more customers and suppliers alike. This is in direct contradiction to the claim that Amazon killing retail. 

From a performance standpoint, Amazon has somehow leveled the playing field. Independent brands and small businesses are now able to compete with huge corporations and their firmly established brands. 

As the digital marketing landscape continues to develop and global consumers are increasingly becoming more open to online shopping, small and medium businesses should likewise embrace the digital transformation and the ever-growing popularity of eCommerce.

Borrowing the words of the famous naturalist, Charles Darwin, “it is not the strongest or the most intelligent who will survive but those who can best manage change.

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. 

 Image Source: Amazon

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.

 Image Source: Amazon

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.com
• Amazon.ca
• Amazon.com.mx 
• Amazon.com.br

Amazon International – Europe

• Amazon.co.uk
• Amazon.de
• Amazon.fr
• Amazon.it
• Amazon.es
• Amazon.nl

Amazon International – Asia-Pacific

• Amazon.co.jp
• Amazon.in
• Amazon.com.au 
• Amazon.sg

Amazon International – Middle East

• Amazon.ae
• Amazon.com.tr

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 Repricing Software

• 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.

Image Source: Amazon Seller University

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.

This idea is inaccurate, for there are viable ways to start an Amazon business in 2023 with minimal funds or capital.

Tips to Start Your Amazon FBA Business When on a Tight Budget

If you wish to sell on Amazon but you are on a tight budget, here are some tips on how to start an Amazon FBA business with little money.

TIP #1: Identify the Amazon Product That You Intend to Sell

If you wish to make money on Amazon FBA, invest time in product research. Amazon product research together with keyword research are crucial steps in starting an Amazon FBA business with limited capital. 

To prevent expensive errors, it’s important to brainstorm and pinpoint your niche, as well as investigate various supplier choices. As an Amazon FBA seller with limited funding, it is advisable to carefully examine the sales history and profit margin of each product.

Apart from Amazon product research tools, you can also utilize the Amazon FBA calculator to help you have a clear overview of potential monthly sales and revenue that a particular item could generate for your Amazon FBA business. 

TIP #2: Narrow Down Your Amazon Inventory Options

Once you have identified potential products to sell on Amazon, focus on narrowing down your inventory options. With a limited budget, it is necessary to narrow down the vast array of products available on Amazon to only a select few. 

While there are millions of products to choose from, you will only need to focus on a small portion of them. Some of the essential factors to consider when narrowing down your Amazon inventory options include the following:

Return on Investment (ROI): You should look for items with a higher investment return. 

Size: Since you are on a budget, you can further lower your expenses by choosing small and lightweight Amazon products. Choosing small-sized and lightweight products for your Amazon inventory means lower shipping costs.

Risk: Select products that are less likely to be damaged during transport. As much as possible, avoid products that are fragile or generally cannot handle rough handling. Sticking to risk items for your Amazon inventory means additional fees for special handling. 

Seasonality: When evaluating products to sell on Amazon, you should consider seasonal demand. Refrain from risking your capital for items that will likely lose market demand after a particular season or annual event. 

Brand Competition: If you aim to start your Amazon FBA business with little money, you should avoid competing with huge brands. Competition is tough when you sell branded products, not to mention the stringent branding and selling regulations.

TIP #3: Check Alibaba and Other International Suppliers for Better Deals 

Sourcing your product locally is a logical move if you are starting an Amazon FBA business with minimal capital. One strategy to acquire inventory products for your Amazon business is through Amazon retail arbitrage. This involves sourcing products from retail, liquidation, and discount stores in your local area.

In addition to Amazon retail arbitrage, there’s an alternative option you can explore that will suit your restricted budget. Most online sellers for eCommerce businesses utilize Alibaba.com to find the cheapest deals. 

You can use the products sold on Alibaba as your point of comparison regarding potential profit. You can better see how much you will likely profit from products sold on Alibaba by comparing them to items sold in retail stores or those from local suppliers. 

TIP #4: Amazon FBA Fees and Other Expenses

If you will be starting an Amazon FBA business on a tight budget, it is recommended to research the potential Amazon fees and other expenses you may incur ahead of time. Some of the standard Amazon fees to anticipate include the following:

Monthly Subscription Fee: The subscription fee is the recurring monthly fee Amazon charges to sellers with a Professional Seller account.

Fulfillment Fees: This Amazon seller fee refers to the cost of shipping products to customers. 

Storage Fees: Inventory storage fees refer to the monthly charge for the storage space your products occupy in an Amazon fulfillment center. 

Referral Fees: This Amazon FBA fee pertains to the amount Amazon charges for each item sold. However, unlike other Amazon fees, the Amazon referral fee is charged post-sale. 

Apart from the above-mentioned, you should be aware of other Amazon FBA business expenses. Some of these potential business expenses include but are not limited to subscription fees for Amazon seller tools, brand registry expenses, advertising expenses, overhead expenses, and customization fees for private label products.

Knowing these Amazon selling fees and other potential expenditures can help you properly manage your capital and avoid going overboard. It also gives you an idea of which aspect of your business your funds should be focused on. You can further check this via the Amazon Seller Central dashboard for other fees you may incur.

TIP #5: Use Amazon Seller Tools 

If you’re operating an Amazon FBA business on a tight budget, it is crucial to becoming proficient in utilizing Amazon seller tools to improve the efficiency and precision of your operations. To make the most out of your initial investment, consider incorporating Amazon seller tools into your business.

When using Amazon seller tools, you have the option to use free tools, including those Amazon Chrome extensions. However, you can opt for AI tools if you wish for better results.

These more sophisticated Amazon seller tools can streamline and optimize your Amazon business processes and help you obtain a competitive edge in the market. Examples of this AI software include AI Amazon repricers, inventory management tools, and customer service software.

By using advanced Amazon seller tools, you can save time and reduce costs by minimizing the need for additional employees to perform repetitive tasks, resulting in lower business expenses while improving profitability.

How Much Money Do You Need to Start an Amazon Business?  

Your business objectives and timeline influence the amount of money required to start an Amazon business in 2023. Typically, new sellers on Amazon invest between $2,500 to $5,000 to commence their Amazon FBA business venture. 

However, around 17% of sellers manage to start their Amazon venture with $500 or less. Notably, most Amazon sellers spend an average of $3,800 at the outset of their business.

How To Reduce The Cost of Selling on Amazon 

There are ways to decrease your expenses of selling on Amazon in order to maximize your resources fully. In addition to utilizing advanced Amazon seller tools to streamline your Amazon business processes, there are other steps you can take to minimize the cost of selling on Amazon.

Optimize Product Packaging

Amazon FBA fulfillment fees are one of the fees new sellers should be aware of. Since Amazon charges fulfillment fees based on size and weight tier, you should be precise with your packaging. 

If possible, reduce or eliminate empty spaces in the product box to minimize its dimensions. The same thing goes for bulky and unnecessary padding to reduce product weight. Optimizing your packaging should be done before sending your products to Amazon fulfillment centers.

Avoid Bulk Orders

Since you are starting your Amazon FBA business with little money, you should begin your Amazon Business venture with select items. When ordering items from suppliers, try to negotiate as much as possible for the minimum order quantity and shipping fees. Avoid bulk orders at the onset of your Amazon business. 

Introduce Product Bundles

Amazon allows sellers to create product bundles. It means that you can combine two or more products as one offer. This can help decrease per-unit storage and fulfillment costs while also increasing your Amazon FBA business profit margin on each sale. 

Consider Handmade

Another way to start an Amazon FBA business on a small budget is by selling handicrafts on Amazon Handmade. Amazon created Amazon Handmade to accommodate the growing population of interested online sellers, primarily artisans, and crafters. 

Handmade allows you to introduce your own products to the market and differentiate your own brand from other sellers, especially from private label sellers.

Creating handmade or DIY products is less expensive than exporting products from China or other international marketplaces. With talent and creative skills, you can maximize your capital by venturing into Amazon Handmade. 

Obtain a Competitive Edge

Starting an Amazon FBA business with limited funds can be challenging, but there are ways to optimize and enhance your business to make the most of your available funds.

To expand your Amazon business, it is essential to explore methods of gaining a competitive advantage. By strategically planning, conducting research, optimizing operations, and leveraging Amazon seller tools effectively, you can achieve a competitive advantage that will propel your FBA business to success.

Understanding Amazon Supply Chain can be beneficial for third-party sellers using Amazon FBA as they can leverage Amazon’s advanced logistics network to increase the speed and inventory management efficiency of their eCommerce businesses.

Here are some of the essential things you should know about Amazon’s Supply Chain that can help you improve your Amazon business. 

What Is Amazon Supply Chain?

Amazon Supply Chain encompasses all the key elements contributing to successful product delivery to customers, including product warehousing, tracking, marketing, shipping, inventory, and more.  

As part of Amazon supply chain strategy, the retail giant optimized its supply chain management to ensure efficient and effective performance at all times. Such optimization includes both Amazon’s own efforts, and those of the sellers using Amazon’s warehouses for storage and shipping. 

This successful supply chain management allows Amazon shoppers to experience the best customer service possible while shopping on Amazon.com and its global marketplaces. 

Amazon Supply Chain and FBA 

Amazon FBA, or Fulfillment By Amazon, is an Amazon program that allows sellers to use Amazon’s vast logistics network and customer service for their Amazon stores. It is an integral part of the Amazon Supply Chain. 

Third-party sellers can send inventory to Amazon’s warehouses. When an order is placed, Amazon handles the pick-up, packaging, and delivery of the product, as well as customer service and returns. 

Through FBA, a third-party seller can utilize Amazon Supply Chain’s state-of-the-art facilities, processes, and most efficient transportation modes for package deliveries. 

How Does Amazon Supply Chain Work?

Amazon’s supply chain process involves the seller setting up FBA shipments in Seller Central, providing information about the number of products, size, and weight, and ensuring each product has a scannable barcode. 

The shipments are then delivered to the designated Amazon fulfillment centers by an Amazon-partnered carrier. Amazon employees then unload and receive the shipment.

After receiving the products, barcodes are scanned to connect each package to the seller’s inventory. Afterward, the products are then stored or distributed to other fulfillment centers. 

When a customer places an order, warehouse workers and robots pick, package, and label the product, sort and load it onto a truck or plane, and then deliver it to the customer’s doorstep.

Elements of Amazon Supply Chain | Fulfillment Centers

Some factors why consumers prefer to shop on Amazon include the ease of the purchasing process, delivery speed, and same-day delivery. Such ease is made possible by Amazon’s supply chain strategy. 

Behind the scenes, there are crucial elements of Amazon supply chain that work together to provide a seamless shopping experience for customers; and these include the following:

Amazon Fulfillment Network

From warehousing to product delivery, Amazon depends on its fulfillment network. Amazon’s fulfillment centers support the processing of Amazon orders. Currently, Amazon has 175 fulfillment centers worldwide.

These fulfillment centers serve as storage for inventory, ensuring that products are readily available to meet demand from any location. Hence, making it a vital element of its supply chain. This is what the fulfillment network of Amazon consists of:

Sortable Fulfillment Center

These facilities are used for picking, packing, and shipping customer orders for items such as books, toys, and household items. In this facility, Amazon employees work alongside robots which helps to improve efficiency to better meet customer demand.

Non-sortable Amazon Fulfillment Center

Unlike the previously described facility, non-sortable fulfillment centers are utilized for handling, packaging, and dispatching more oversized and bulky customer orders, such as outdoor furniture and equipment.

Sortation Centers

In sortation centers, employees separate customer orders based on their final destination and combine them for quicker delivery. Thanks to the availability of both full-time and part-time staff at Amazon’s sortation centers, Amazon can offer daily deliveries, including Sundays.

Receiving Centers

The Amazon associates in receiving centers help in customer order fulfillment by receiving and processing large quantities of inventory expected to sell quickly. Orders are then distributed to various fulfillment centers within the network. 

Specialty Centers

Amazon’s fulfillment operations are also backed by other types of facilities that handle specific types of products. Specialty centers are also utilized during high-demand periods like the holiday season, which improves customer satisfaction.

Delivery Stations 

These buildings are responsible for preparing orders for the final leg of delivery to customers. Amazon’s delivery providers enable quick and regular shipping.

Amazon Delivery Fleet

Amazon uses many logistics and delivery partners to deliver customer orders on time. After sorting the Amazon packages based on delivery destination, the most efficient mode of transportation is then selected to transport the packages.

Amazon’s delivery fleet includes air transport and land vehicles such as vans, trucks, and bikes. And most recently, Amazon has launched drone deliveries for California and Texas. 

Humans and Robotics

While Amazon’s vast network of employees enables it to make fast deliveries globally. However, with the incorporation of advanced technology and automation, the supply chain ensures more smooth and more efficient processes. 

In its warehouses and fulfillment centers, Amazon employs robotics to handle tasks such as picking and packing orders and stacking and storing inventory. 

The integration of Amazon robotics in the supply chain of Amazon enables accelerated operations while reducing manual labor. This, in turn, allows more time and resources to be devoted to other business goals and activities.

Benefits of Amazon Supply Chain for FBA Sellers

FBA sellers can maximize their business potential with the help of Amazon’s Supply Chain. The supply chain of Amazon allows you to ship your products to a fulfillment center and have Amazon handle the packing and shipping to individual customers. 

While there is a fulfillment fee, the benefits of using FBA make it worthwhile. Some of these Amazon FBA benefits include:

More Savings: Amazon FBA eliminates the need to hire and train employees to perform specific tasks, such as shipping and handling of Amazon returns. 

Time-Saving: Amazon handles customer service and returns, so you don’t have to spend time on these tasks. You can instead dedicate your time to other essential tasks. 

Remote Management: With access to Seller Central, you can monitor and manage your business from any location. The Seller Central Dashboard is user-friendly and feature-packed. 

Expansion Opportunity: Amazon’s supply chain infrastructure allows sellers to expand their business. Amazon sellers can easily access these resources to grow their businesses.

Amazon Supply Chain allows you to take advantage of Amazon’s sophisticated fulfillment network and manage your business remotely without worrying about the hassles of shipping and customer service.

Improving Business Success on Amazon

Amazon’s back-end operations consist of a complex network of Amazon fulfillment centers and delivery fleets. The supply chain of Amazon aims to alleviate the burden on Amazon sellers by continuously improving its personnel performance, distribution hubs, and technology to decrease shipping times.

Apart from relying on Amazon’s initiative and innovation to provide consumers with high-quality service, you can also proactively perform tasks that can improve the performance of your business, such as repricing. 

With the help of an Amazon repricer, an Amazon seller can offer competitive listing prices This will not only entice shoppers to check your listings, but it will also influence the Amazon algorithm to consider you for the Amazon Buy Box. 

By continually improving your business practices, you can expand your customer base. And this can lead to increased customer loyalty and ultimately boost your overall business performance.

Whether you’ve just started mapping out an eCommerce strategy for your B2B company or looking for fresh insights into the field, you should know about the benefits of an eCommerce website.

In this article, we will inspect 8 undeniable advantages of eCommerce in B2B and explore eCommerce fundamentals for the B2B segment.

Benefits of B2B eCommerce

Despite the heated discussion among B2B suppliers about whether face-to-face channels are better than digital business-to-business eCommerce, the benefits of B2B eCommerce are visible in the latest stats:

– More than half of B2B target customers are looking for a high-quality online buying experience

– 76% of buyers expect personalized solutions and offers to meet their specific needs

– Customers start spending more time conducting online research rather than engaging with the sales rep

– Only 35% of B2B companies don’t plan on fully transacting online in 2022; the rest 65% are almost there

Among the main advantages of B2B eCommerce are increased sales due to reaching more customers and providing them with an improved customer-centric experience.

What is a B2B Website?

This type of website focuses on selling goods or services to other businesses online. It’s aimed at improving sales, cutting costs, and increasing the overall effectiveness of a company.

Manual order processing via phone or email doesn’t allow the same customization as a B2B website. The whole idea of a B2B website model lies in creating an online place where another company can conveniently and easily purchase services, content, software, or other goods.

Such a website has a search, detailed info about a product/service, and a personal account history page. So basically, it’s an online platform with services description, pricing, and sometimes a useful blog. Also, building a B2B website doesn’t take a lot of effort due to the availability of website builders and agencies on the market.

As a customer of a B2B eCommerce website, a company will benefit from order history to make repeat purchases fast, custom and flexible pricing, and self-service functionality.

As a seller, a business will enjoy:

• cost reduction (as fewer employees are needed to receive orders manually)
• better lead tracking with website analytics, and improved brand loyalty

What is B2B in eCommerce?

Business-to-business eCommerce has its distinct differences from B2C:

1. Larger orders
2. More recurring orders rather than one-time-purchases
3. More people are involved in the buying process

There are no spontaneous purchases, so a B2B model in eCommerce needs to learn about its potential buyers and their preferences to reach more sales.

Digital marketing may seem challenging for a business-to-business at first. Still, once a company sees the effectiveness of eCommerce B2B, it becomes clear that it’s crucial for success.

Remote and self-services have long become preferable not only for low-value purchases but also for high-value ones. Almost half of the customers are ready to spend more than $500,000 on remote and self-service orders.

And B2B eCommerce lays a solid foundation for cost-effective and convenient selling opportunities.

8 Reasons B2B Needs eCommerce

So if you’re still wondering if your B2B company needs eCommerce, let’s shed light on the apparent reasons behind the B2B digital transformation today.

1. Reaching More Buyers

One of the main benefits of B2B eCommerce is the attraction of a broader audience.

With an online presence, a business can appeal to more people, as the sky’s the limit. With manual order processing, there’s a time and energy limit, as workers cannot work 24/7 while a website can.

eCommerce has long surpassed in-person engagement as the single most effective channel. Primarily if a company builds a smart omnichannel strategy by making customer engagement a seamless journey through various channels:

• social media
• website and blog
• chatbots
• offline shops
• ads
• emails

2. Attracting The New Purchasing Decision-Makers

B2B eCommerce marketing needs to appeal to the new purchasing decision-makers if they want to keep up with the times.

According to Inc. Magazine, their work and real-life identities almost blend. This insight is vital for B2B eCommerce, as these buyers expect B2B experience to feel like B2C. In other words, they look for personalized marketing and purchasing.

With eCommerce, a company can create an online sales portal using:

• personalization based on previous purchases
• better lead generation
• convenient means of communication

These are just the tip of the iceberg regarding eCommerce B2B opportunities to charm Gen Z into tech-savvy decision-making.

3. Increased Efficiency With Automated Processes

Business owners can automate repetitive manual tasks of order processing and data gathering.

With a CRM, salespeople can make faster decisions regarding each buyer, as they can easily access purchase history and make personalized offers. This can go even further with CRM integrations. For example, if a company uses Salesforce, the team can connect Salesforce to Google Sheets to automatically collect data on leads, contacts, statuses, and more.

Self-service available 24/7 is perfect for repeated purchases, as most buyers don’t need a sales rep if they have already bought a product service at a company.

Automated processes not only increase efficiency but also improve customer experience. With AI-driven solutions, a company can speed up response time (one of the biggest complaints among customers).

Comparison engines will help customers with the overall analysis of the product.

In addition, automation improves employee productivity. There is more time to focus on challenging tasks than automatic ones. Plus, if a company works with remote staff, automated processes help to avoid human mistakes and monitor the whole picture better.

4. B2B in eCommerce is the Key to Grow Globally

A brick-and-mortar B2B has one particular disadvantage – it’s difficult to enter the worldwide market unless there are no eCommerce investments. While among the key advantages of B2B eCommerce is the ability to attract customers to any place.

Digital marketing can help you reach new markets via new sales channels online. A website with intuitive navigation in a local language, with local currencies and payment methods is the way to appeal to new audiences without spending a fortune.

A company doesn’t need to invest in building an offline store as it can benefit from the worldwide shipping capabilities.

5. Better Customer Experience With eCommerce B2B

Most B2B companies are strengthening their online selling channels to offer their customers a better experience.

Chatbots, VoIP, and helpdesk software help a customer support team to react quickly and communicate with customers efficiently.

A fast and easy-to-navigate website with appealing design and useful content (like explainer videos, tutorials, AR tours, etc.) makes customers want to spend time on your site. Consequently, it helps to build stronger relationships that will bring more sales.

Finally, eCommerce enables flexibility and personalization – a customer can choose among different payment options, receive personalized offers, pick a preferred shipping option, etc. – anything that will boost the customer experience.

6. Strengthening Social Media Marketing Channel

Among other benefits of B2B eCommerce is paving the way to an effective marketing channel of social media. Companies aim to create an omnichannel experience, including social media.

Customers are guided through social media and become more eager to form relationships with the company. B2B eCommerce via social media isn’t about direct selling, but it helps to break the ice between the salesperson and the buyer to create a human connection.

Social media allows to reach and attract more clients, nurture new subscribers and turn them into leads. To do so, a company needs to focus on customers’ needs more than on sales messages – a potential customer needs to see how your product/service can solve their problem.

7. Managing Your Leads More Effectively

Among the vital benefits of B2B eCommerce is robust analytics.

With scrupulous analytics and data analytics software, a company can examine purchasing patterns and learn where to funnel the investments and efforts.

All the data that a company gathers, helps to understand its audience better and track key metrics.

The key metrics to examine and benefit from B2B in eCommerce include:

• average order rate
• session duration
• organic traffic
• bounce rate
• sales conversion rate
• shopping cart abandonment rate
• returning customer rate

8. Developing Relationships Based on Trust

Any buyer wants to feel safe before making a purchasing decision.

Business-to-business eCommerce facilitates the creation of an environment where a client is willing to trust a company.

‘About us’ page turns a faceless company into a team one can rely on. If supported by photos of the team members, such a page appeals even more.

Additionally, the ‘Privacy Policy’ page makes a company trustworthy, as customers see that their rights and personal data are protected.

Finally, social media presence ensures that a business cares about its reputation, is ready to face feedback (both positive and negative), and consequently strengthen the relationships built on trust.

Final Words

The benefits we’ve discussed seem alluring. But it’s vital to implement business-to-business eCommerce smart to achieve good results.

Creating a B2B website and waiting to reap the rewards is not enough. To grow, a company needs to improve customer experience daily and personalize the customer experience.

In Ecommerce B2B,  you have opportunities to provide that customer-centric experience through thorough analytics, experiments, and flexibility.

——

About The Author:

Dmytro Zaichenko is a Marketing Specialist at Coupler.io, a data integration tool. He has 7+ years of experience in content making. Apart from writing, he’s passionate about networking and the NBA.

Another report also detailed that 65% of consumers prefer to shop on Amazon than other eCommerce platforms. Therefore, making Amazon a very enticing online selling platform for both Amazon sellers and shoppers alike. That being said, it begs the question, should you sell on Amazon in 2022?

Amazon in Numbers

To put things into perspective, here are some of the key statistics about the eCommerce giant.      

• In terms of site visits, Amazon ranks as the most popular eCommerce site in the United States. Amazon has 3.3 billion visits as of May 2022, maintaining a wide margin over Walmart, eBay, and Target (Semrush: June 2022).
• In terms of global influence, Amazon boasts of its more than 200 million Prime members (Backlinko, 2022).                         
• In terms of Net Profit, Amazon’s net income in 2021 was 33.36 billion, a significant increase from its net income of $21.3 billion in 2020 (Statista, 2022).
• In terms of sellers’ profitability, new Amazon sellers are earning an average profit of nearly $30,000 annually (Jungle Scout, 2022).
• In terms of small to medium business performance, there was an increase of nearly 40% of American sellers that surpassed $10 million in sales (Amazon Small Business Empowerment Report, 2021).
• In terms of motivation for selling on Amazon, 49% mentioned their desire to “be their own boss” is their number one motivation for selling on Amazon (Jungle Scout, 2022).

Things To Consider Before Selling on Amazon     

There is no doubt that selling on Amazon can be profitable for sellers. However, it is important to also consider that Amazon is a highly competitive eCommerce space. Before you dive any deeper into Amazon selling, here are some essential things you should first take into account:   

• Selling Plans

The most common Amazon selling plan is the Individual Plan. This will be your selling plan by default after creating an Amazon seller account. The other option or upgrade would be the Professional Plan. In terms of plan features, the Individual Plan is somewhat limited in terms of access to seller tools and data, which explains why there is no monthly fee associated with it.

However, when you choose the Individual Plan, you have to pay Amazon $0.99 per item sold, plus the Amazon referral fees. In contrast to the Individual Plan, the Professional Plan comes with a $39.99 per month fee. While the Individual Plan is geared towards Amazon sellers who still have little inventory, the Professional Plan is ideal for higher-volume Amazon sellers. 

• Stable Finance

Cash flow is easily one of the major challenges that Amazon sellers face in this kind of business. Even before you start selling, you will incur expenses in the form of fees. Apart from plan and referral fees, you will also have to shell out some cash for your inventory. Even if you succeed in profiting on paper, you still need to have cash on hand to keep your inventory going.

• Excessive Competition

Whether you like it or not, there will always be competition in the eCommerce industry. Amazon, in particular, is a highly competitive platform, which requires effort on your part if you want to see significant results. Competition on Amazon is not only limited to obtaining the Amazon Buy Box. Amazon sellers are also competing to rank on organic search engine result pages. Penetrating the Amazon space not only requires a unique brand and product. Strategic optimization is also needed in order to outrank the competition.          

• Price Wars

Amazon price wars are an everyday occurrence on the platform. With Amazon sellers having the intention of matching or beating their competitor’s price, a retaliatory price slash occurs. In order to maintain and grow your profit margin, you should look into utilizing an automatic Amazon repricer. Automatic or AI Amazon repricers are the go-to pricing tool of top Amazon sellers. Investing in a third-party Amazon repricer like Seller Snap will be beneficial for your business. 

• Amazon Returns

Since Amazon is known for its customer service and consumer-friendly platform, it tends to be less strict with its returns policy in order to guarantee a good customer experience. However, some customers exploit this tolerance to the point of creating bogus reasons to return items they have mistakenly ordered. Although some Amazon categories offer free returns, there are instances where third-party merchants shoulder the return shipping cost.          

• Amazon Fees

One of the considerations to evaluate when selling on Amazon are the fees. Amazon fees vary depending on the fulfillment method you will choose. If you choose to become an Amazon FBA seller, you will have to prepare yourself for FBA fees, including but not limited to:

• monthly storage fees
• long-term storage fees
• removal order fees
• return processing fees
• unplanned service fees
• FBA inventory storage overage fee

On the other hand, choosing the FBM method does exempt a seller from any fees or expenses. Since you will be handling your inventory, you will still incur expenses in terms of logistics, warehouse fees, overhead expenses, referral fees, and not to mention per-item fees. 

• Amazon Global Opportunities 

Selling on Amazon has become more interesting for online sellers with the eCommerce giant’s introduction of over 16 international marketplaces. 

If you plan to expand the reach of your products or brand influence, you can maximize Amazon Global’s selling opportunities. It is a must-check for online sellers looking to expand their Amazon business. 

You can accelerate your internal sales with the help of Amazon Global marketplaces. You can target numerous shoppers in the global marketplace, including more than 200 million paid Prime members.

You can do this by registering your Seller Central account in the Amazon marketplaces that you want to start selling into. This will allow you to link your account across multiple regions, including the following:

Amazon International – Americas

• Amazon.com
• Amazon.ca
• Amazon.com.mx 
• Amazon.com.br

Amazon International – Europe

• Amazon.co.uk
• Amazon.de
• Amazon.fr
• Amazon.it
• Amazon.es
• Amazon.nl

Amazon International – Asia-Pacific

• Amazon.co.jp
• Amazon.in
• Amazon.com.au 
• Amazon.sg

Amazon International – Middle East

• Amazon.ae
• Amazon.com.tr

• Amazon Product Research   

Product research is an integral element of any eCommerce business, including Amazon. Product research can help you understand what products to sell on Amazon, determine possible trends,  and identify consumer demands. 

Amazon product research can help increase your business’s success rate. It can give you a competitive edge over other Amazon sellers, including those huge and more established brands competing for engagement, traffic, and sales on the Amazon marketplaces. 

It is important to consider product research before delving deeper into selling on Amazon. There are many methods and tools that can help you find the best product for your niche, save time, and control your risk. 

Sell on Amazon: Tips for Newbie Sellers     

Despite the known challenges with Amazon, a lot of people who sell on Amazon manage to thrive amidst the competition and minor inconveniences. In fact, 20,000 small and medium businesses managed to reach million-dollar sales on Amazon.

To help you achieve a milestone in your fledgling Amazon venture, here are some tips: 

• Follow the Rules

If you are new to Amazon, familiarize yourself with Amazon’s rules and regulations in order to avoid penalties. For example, when you sell on Amazon, providing accurate information about your product to Amazon and its visitors is just one of the rules that must be followed. Any violation of this seller code of conduct will lead to actions against your account, including cancellation of listings or removal of selling privileges. 

• Be Competitive With Your Pricing          

The secret to being profitable on Amazon is having competitive pricing. It is by far the quickest way to start earning. Pricing plays a critical role when it comes to winning the Amazon Buy Box, which is why top Amazon sellers use repricers for competitive pricing. 

• Excel at Customer Service       

Apart from winning the Amazon Buy Box for increased sales, you should also take into account customer service. Feedback rating score is one of the factors that the Amazon algorithm considers for ranking sellers on its search engine result pages. Consequently, reviews of previous customers will also influence would-be shoppers. Hence, you should always keep your products and services at their best to gain positive reviews.                                                        

• Optimization

If you wish for your listing to rank better or win Buy Box, you should optimize your listing properly. Each individual listing is being crawled by the Amazon algorithm for issues and inefficiencies, which is why you should double-check your listing details before uploading. To help you with your Amazon optimization, you can always take advantage of Amazon optimization services available online. 

To Sell or Not to Sell on Amazon 

When it comes to online selling, Amazon should be on the top of your list for your online retail business. Apart from benefiting from its reputable name, you may also capitalize on the high volume site visits it gets monthly. 

If you intend to reach a global market, you can use Amazon as one of your eCommerce platforms, since it already has an established global influence, as well as established logistics for Amazon global transactions.

However, worth noting that the success of your retail enterprise rests not solely on a digital platform. Arming yourself with accurate industry knowledge and technical know-how on how to use seller tools along with perseverance will generate success.                 

A product video is essentially a visual demonstration of a listed product that showcases the product’s content, benefit, or feature. The main purpose of an eCommerce product video is to convey what the product can do. 

eCommerce Product Videos and Important Statistics

Amazon Store: A screenshot (cropped) of a listed item on amazon.com; Retrieved Oct. 19, 2020, from https://amzn.to/3kcHZMS

The use of eCommerce product videos is a relatively new online marketing approach. With the majority of the world enjoying fast internet connection capable of loading videos online, businesses have integrated product videos into their online platforms.            

A testament to the marketing power and practical value of a video, eCommerce giant, Amazon has incorporated product videos into its platform. Just last September of 2020, Amazon via Seller Central News reminded its members that they can upload videos for their listings. 

Statistics revealed that 52% of online consumers stay longer on websites where product videos are present. Of these, 44% of online consumers are expected to make a purchase on a website with eCommerce product videos. 

To further emphasize the importance of product videos, it is estimated that 64% – 85% of viewers of product videos are likely to buy the item seen in the visual presentation. Hence, suggesting that Amazon sellers should capitalize and maximize the power of product videos.                              

When looking at a product on Amazon and other eCommerce platforms, online shoppers expect an average of 3 videos and 6 images. It is also estimated that around 60% of consumers normally spend 2 minutes watching an eCommerce product video. Thus, prompting sellers to prepare high-quality and informative product presentations.                                

Factors To Consider in Creating Remarkable Amazon Product Videos

When dealing with product videos, Amazon sellers should be particular about what they upload. Apart from the Amazon Product Video Guidelines, sellers should take into account factors that will help maximize their video presentation.             

Target Audience     

Knowing the target audience is essential for an eCommerce product video. In understanding your target audience, sellers should consider buying habits, preferences, and interests.                      

For example, when improving a kitchen equipment listing, you should highlight how the product operates to stimulate the interest of shoppers watching your video.    

Significant Aspects 

Unlike still images, a video presentation can demonstrate and emphasize the significant and relevant aspects of a product. Videos can easily provide in-depth visuals of the item, showcasing its dimensions, color, texture, and other unique features.

Audience Concentration

The goal of an eCommerce product video is to catch the attention of shoppers and inform them about the product. Moreover, the attention span of audiences should also be considered when creating and uploading Amazon product videos. 

There is no need to detail all of the features and aspects of a product being highlighted in the video, showcase only the important ones. Amazon product videos should be long enough to explain features and benefits, and short enough to keep shoppers engaged.     

Brand Voice

Brand voice should be preserved and embodied in an Amazon product video. The attitude and values of your brand should be properly conveyed to your target audience. 

Optimization

Amazon sellers’ products can reach numerous audiences via multiple channels. For that matter, it is critical that videos should be optimized for multiple channels, as well as desktop and mobile.     

In particular, Amazon sellers should not forget to optimize their product listings for smartphones and tablet use. Mobile optimization of your Amazon business is important because nearly 70% of shoppers place their orders via mobile.

Amazon Product Video Guidelines  

The ones mentioned above are secondary considerations to take into account when uploading and boosting your Amazon business through product videos. As an Amazon seller, you should first take into account the company’s video content guidelines. 

The video content policy of Amazon is not exclusive for product videos, but to all content videos that sellers upload to Amazon.

Key Takeaways for Video Content Policy

Amazon takes the integrity of its eCommerce community very seriously. For that matter, it is best to understand some of the basic and significant video content policies of Amazon.                              

• To be able to upload and manage videos, you must have an active Amazon Seller account.
• You will not be able to upload or manage videos when your selling privileges are revoked.
• Your videos will be removed and you will not be able to upload other videos if your video privileges are suspended or revoked.
• Circumventing suspensions of the account will result in permanent disabling of the suspended account.    
• Under Amazon.com, videos must be entirely in English.

Conduct and Content

Also stated within the Amazon Seller Central content guidelines, sellers should not share any Amazon product videos that contain nudity or sexually suggestive content. Any content that depicts sexual acts, much more pornography is not allowed on Amazon. 

Similarly, product videos that are deceptive, misleading, and infringing on another brand or seller’s intellectual property or other rights shall also be removed. To know more about the video content guidelines and policy set by Amazon, you may CLICK HERE. 

If you wish to add a video to your product listing, you may CLICK HERE for a detailed guide. 

Complementary Approaches 

Increasing the profitability of your Amazon business is not only limited to product listing optimization. There are other aspects of an Amazon business you should consider, including the use of Amazon seller tools. 

As a seller, you should understand that Amazon seller tools such as Amazon repricers, keyword research, and feedback tools are complementary instruments that will help your Amazon business become more competitive and successful. 

It became the reality for some of them, but for most of the existing sellers on Amazon, it remains a dream. So, what is the secret of success on Amazon, and how to become successful? 

The secret is quite simple: it is in using the common SEO strategy and adhering to Amazon’s A9 Search Algorithm. Those things are not that difficult to learn and implement as it may seem. By reading this article, you will get some expertise to make your first successes on Amazon!

The Amazon Best Sellers Rank: What Is It and Why Do You Need It?

As previously mentioned, Amazon is a search engine. It is the largest search engine for e-commerce. Like Google, Amazon has a similar mission of helping people (shoppers) in their search. That is why it utilizes almost similar strategies for achieving success within the niche. To help its shoppers discover the best items from different categories Amazon uses metrics such as the Amazon Best Sellers Rank. 

This rank positions at the very top the most popular item in a specific category or subcategory. To help a shopper discover the best good in his category, the Amazon Best Sellers Rank shows the currently chosen item in several different subcategories, where it has the highest rating. It is shown in the “Product details” section of a product page and is updated hourly.

Worth noting that the Amazon Best Sellers Rank works only for goods assigned on categories, hence the items without a category are ignored by this metric.

And finally, it’s worth to say about the main reasons why you should pay special attention to this Amazon’s instrument and to the Amazon SEO tips, strategy in principle:

•  Since Amazon works as a search engine, the more you optimize your SEO strategy, the more products you will sell on the platform.
• Amazon is full of similar products, and if you wish to draw more attention to your items, you need to make them more noticeable, thus achieving higher ratings.
• Most of the Amazon sellers have already learned Amazon SEO tips principles, and if you really want to keep your business competitive, you ought to start using the strategy of Amazon SEO along with other Amazon success tips as soon as possible.

The ABC’s of Amazon’s A9 Algorithm

Just to determine the categories of your products is too little to form their ratings within such a powerful platform as Amazon. To form ratings this system has its own A9 ranking algorithm, which is not necessary to study in every detail, but would be useful to know the main aspects on which it is grounded:

• Relevance of keywords. Your product’s description and title are checked by Amazon for the presence of relevant keywords in them.
• Conversion Rate. At this step, Amazon compares the amount of traffic that your product listing gets to the number of real purchases. Even if quite many prospective customers show interest in your items and often visit your pages, hardly making any purchases, this will result in a low product rating.
• Satisfaction of customers. You should strive to make your customers really happy with your product purchases, as customers’ feedback and return rate also count.
• Product Pricing: In order for Amazon to take notice of your product pricing, a dynamic pricing strategy is suggested. With the help of an Amazon repricer, you can efficiently improve your product pricing and Buy Box winning rate.

And now, let us look closer at the specific Amazon success tips that will help to better tune your Amazon strategy with Amazon’s A9 Algorithm and thus give you the opportunity to get the maximum possible rating and revenue.

#1. Name your product with the right product title

To cut it short, this means adding as many relevant keywords to your product title, as possible. Depending on the specifics of your product, its title can have such elements, as:

• Product name (e.g., cat water fountain);
• The product’s brand name (e.g., Pedy);
• The material the product is made of (e.g., stainless steel);
• The product’s special features (e.g., Silent, LED Light Switch);
• Product’s purpose;
• Product’s size;
• Color;
•  Product’s packaging.

#2. Brake your product’s description into clear points

Now you should add your product’s description, highlighting its benefits. For this purpose, it is strongly recommended to use bullet points, as it facilitates the perception of information and allows you to concentrate your potential customer’s attention on the most beneficial points. Include in your bullet points subheadings and short descriptions of up to 200 characters. 

List your product’s benefits in the order from the most important to the least important ones, and also remember to not overuse keywords in your bullet points, by replacing some words in them with their synonyms (e.g., instead of the already used “silent drinking fountain” you may use “ultra-quiet drinking fountain”).

#3. Create a compelling description of your product

Though a product description weighs almost nothing in terms of SEO, if it is a detailed one, it can help turn your potential customers, who often scroll through your product page, into actual ones, who made their purchases. In other words, a compelling item description helps shoppers to learn more about your product and eventually decide on buying it!

• Find out whether your prospective customers have already used products like yours and try to discover the right words for convincing them to buy your item.
• Should you have good writing skills, write the description on your own, and try to concentrate more on your product’s benefits, pay attention to the text structure, use subheadings, and focus on the most crucial information about your product.

In our time, there are lots of online instruments to make your writing look and sound better: After the Deadline, SlickWrite, 1Checker, etc. Still, the reputation of your text must also be grounded in the credibility of the links and references you use. Such an online instrument as Linksmanagement will take thorough care of a top-notch dofollow backlinks list for your copy! 

#4. Bring your product’s complete technical details list

In case you sell electronics, you must always give full technical details on your product. This will let you boost your Amazon SEO, and secondly, this will give your potential purchasers the opportunity to compare your products to the similar devices available on Amazon.

#5. Add more visual content

In fact, visual representation means that Internet shoppers can “feel” or “touch” your products, i.e. through their screens. That is why it is especially important to have visual content on your product page, as it extremely helps to convince your prospective customers to purchase the goods. Just add on your product page the next types of visuals – and you will see the result in a short time: 

• Lifestyle photos. They show how other people use your product in their real-life situations. Such an approach will increase customers’ trust, hence – loyalty.
• Infographics. Use colorful informative pictures focusing on the key advantages of your product.
• Add videos. Videos on your product will show how it looks and its benefits in real life, which will obviously enhance the urge of your potential purchasers to buy your product. Remember that quality visual content is more than half the success. Do not skimp on the photographer and retouching of photos. If you are not able to retouch photos yourself, use the services of freelancers on UpWork or order retouching from a professional service.

The simple, easy, and fast to implement SEO tips will surely help you to get your first purchases or significantly increase the existing ones. They are 100% working and toll-free advice on how to start becoming a successful Amazon seller. Just take your time and start working on suggested Amazon SEO tips to better your Amazon strategy – the positive results will soon follow. 

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About the Author:

Marie Barnes is a writer for gearyoda. She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.