Product research and sourcing are of great importance for Amazon sellers. To help you discover profitable Amazon categories and top-selling products, here are some product-sourcing tips and dedicated Amazon pages to serve as your guide. 

What is the Amazon Best Sellers Page?

The Amazon Best Sellers is a dedicated page for Amazon and sellers alike to check which products are popular based on sales. This page is valuable for Amazon sellers who are doing product research. 

On this best sellers page, you will find top-selling products under a specific Amazon category. From Amazon Devices and Accessories down to the Video Games category, you can stay updated on what is trending on Amazon.

Amazon.com: A Screenshot (cropped) of Amazon Best Sellers page; Retrieved: August 5, 2021, From https://amzn.to/3xDghyV

What makes this Amazon Best Sellers page unique is its hourly bestseller update, along with a numerical ranking system. Each category showcases the top 100 Amazon products that come with global and star ratings. 

Amazon.com: A Screenshot (cropped) of Amazon Best Sellers page; Retrieved: August 5, 2021, From https://amzn.to/3lBtrd7

Aside from the Amazon Best Sellers page, Amazon FBA sellers can check other relevant pages for the biggest-selling product ideas. The pages highlighted above include New Releases, Movers and Shakers, Most Wished For, and Gift Ideas page.

How to Find Profitable Products to Sell on Amazon FBA

For most Amazon sellers, success in the Amazon marketplace begins with the proper selection of inventory items. If you wish to have a good starting point in terms of discovering top-selling products for Amazon, here are things you should consider. 

• Follow the Trend 

To avoid slowing moving products, follow the trend. The trend is your friend in eCommerce. Products that are trending are always in high demand, which is why Amazon sellers should capitalize on these trending items for improved sales. 

• Avoid Seasonal Products

If you are still new to Amazon FBA and would like to see growth in your store, you should avoid inventory items with a high degree of seasonality. 

Items such as Christmas paraphernalia will likely attract customers during Q4 only. It would be best to invest in items that are likely in demand all year long. 

• Utilize Product Research Tools

If you want to speed up the process of finding top-selling products or profitable Amazon categories, use a product research tool. 

This type of Amazon seller tool not only provides you with a list of items that are trending or in demand, but it can also provide you with data analytics for better decision-making. 

• Look for Small, Light & Durable Items

If you want to maintain a healthy profit margin, you should search for small, light, and highly durable products. Small and light items mean less shipping cost, especially if you are importing overseas. 

The durability of the item will help ensure that items are intact while in transit to the Amazon FBA warehouse. This will also help prevent potential complaints from customers due to product damages.

• Check The Amazon Best Sellers Rank 

An Amazon Best Sellers Rank (BSR) is another good indicator of how well a particular product is performing in terms of sales on Amazon.com. The lower the Amazon BSR, the better it sells in a specific Amazon category. 

Hence, it should not be taken as an overall ranking but rather an indicator of the product’s sales performance in a given category. 

The Amazon Categories and Products Connection

Similar to choosing the best-selling product, selecting the top category for your business is also crucial in 2024. Both the product and category are interconnected. 

With the help of your product research, you will be able to identify which Amazon category is right for you. You should not discount one over the other. Both products and categories should be viewed simultaneously for better sales performance. 

Top 10 Profitable Categories on Amazon (2024) – Best Selling Products on Amazon

Some of the top selling categories on Amazon have historically been clothing, beauty products, electronics categories, pet supplies, and more. These product categories may continue to be popular in 2024. 

However, less popular product categories have the potential to yield higher profits compared to those that are more popular. Take the Amazon Handmade category as an example. In a survey, Handmade is one of the least popular product categories but has the highest number of profitable sellers, obtaining profit margins above 20%.

In order to enhance your Amazon sales, it is essential to consider the best Amazon categories with higher profit margins and the profitable products in each. Here are some of the best Amazon categories and most profitable items to sell on Amazon this year, wherein the majority of sellers had a net margin of 21% and up. 

1. Beauty & Personal Care

In 2024, the aftermath of the pandemic continues to shape consumer behavior and eCommerce sites activities, emphasizing a renewed focus on personal well-being. This has fueled a significant increase in demand for one of the top Amazon categories: Beauty and Personal Care. As individuals prioritize self-care as a cornerstone of their daily routines, beauty and personal care became one of the most profitable product categories.

A quick check with a keyword research tool highlights the widespread interest, with the keyword ‘personal care products‘ maintaining a substantial average search volume of around 1,000 to 10,000 searches. This trend represents a valuable opportunity for your own brand to cater to evolving consumer preferences and position your private label products  in the broader landscape of self-care and wellness.

Top Selling Products in This Category | Product Ideas: 

• Pimple Patch
• Biobased Makeup Remover/ Towelette
• Hydrating Serum 

Pro-tips to Succeed in the Beauty & Personal Care Category 

Before ordering from suppliers some products to sell, make sure that the products you will be selling on Amazon comply with all federal, state, and local laws, as well as Amazon policies and product restrictions. Ensure that your Amazon product detail page includes specific notes and instructions from the manufacturer to keep consumers well informed. 

2. Home & Kitchen 

Top selling products on Amazon are often listed in the Home & Kitchen category, which offers a broad range of products while catering to diverse consumer needs and preferences. Consistent high demand throughout the year is fueled by consumers frequently making repeat purchases to replace or upgrade their belongings, making the Home & Kitchen category one of the profitable categories this year. 

Amazon’s Home & Kitchen category is not just profitable; it is a game-changer for an online business. With attractive profit margins, 30% of Amazon sellers report a profit margin of 21% and up. To capitalize on this profitability, thorough product research is essential. For example, top-selling items on Amazon in this category often include:

Top Selling Products in This Category | Product Ideas: 

• Ant Killer
• Stainless Steel Tumbler
• Queen Size Bed Sheets

Pro-tips to Succeed in the Home & Kitchen Category 

Improving your sales performance in the Home & Kitchen category can be achieved through strategic upselling tactics. A powerful approach is to leverage the “Frequently Bought Together” feature, enticing Amazon shoppers to explore complementary products that enhance their online shopping experience.

For example, when selling a coffee maker, consider bundling it with coffee filters or a stylish coffee mug set. By doing so, you fulfill their immediate need and provide added value and convenience. This strategic upselling technique increases the average order value and enhances customer satisfaction by anticipating their needs.

3. Clothing, Shoes & Jewelry

Clothing, Shoes, & Jewelry are among the top Amazon categories due to their consistent demand and wide appeal. With seasonal demands and occasion-based spending, this category remains one of the profitable Amazon categories, which sellers can strategically capitalize on by offering clothing, shoes, or jewelry products in heightened demand during holidays and events. 

The Clothing, Shoes, & Jewelry category offers a diverse product range and market segmentation, providing sellers with the flexibility to target niche markets or specific demographics with low competition. From budget-friendly to high-end products, this category caters to a wide range of customer preferences, making it an attractive option for sellers. 

Additionally, with cross-selling and upselling opportunities, this Amazon category presents numerous opportunities to thrive by providing a compelling assortment of products, a good starting point for your product research are the ones outlined below:

Top Selling Products in This Category | Product Ideas: 

• Yoga Pants
• Men’s Shorts Sleeve Tees
• Bodysuit (Tummy Control)

Pro-tips to Succeed in the Clothing, Shoes & Jewelry Category 

To excel in the Clothing, Shoes, & Jewelry category, it is essential to stay attuned to fashion trends and tailor your inventory accordingly. This will ensure that your product listings are seasonally relevant. Invest in professional product photography and provide detailed product descriptions, including material, sizing, and care instructions, to assist customers in making informed decisions. 

4. Arts, Crafts & Sewing 

Arts, Crafts & Sewing emerges as one of the profitable Amazon categories due to its appeal to hobbyists, DIY enthusiasts, and creative individuals. Moreover, the rise of DIY culture and the increasing popularity of handmade and personalized items contribute to the sustained demand for arts, crafts, and sewing supplies, which is why in 2024, it ranks as one of the top Amazon categories with 23% of sellers making a profit of 21% and up. 

Top Selling Products in This Category | Product Ideas: 

• Acrylic Paint
• Scissors
• Tape Measure (Double Scale)

Pro-tips to Succeed in the Arts, Crafts & Sewing Category 

One of the best methods to increase your profit and achieve sustainable growth in selling arts and crafts items on Amazon is learning to diversify your inventory to cater to different demographics of buyers. This simply means that your available items should not only appeal to young audiences but also mature ones.

In terms of optimization, you should provide your buyers with a detailed description, especially when it comes to art materials. Shoppers in such categories are searching for a specific item for a specific task, which is why having a clear and informative description matters for shoppers. 

5. Electronics

The electronics category is a must-examine category for an Amazon seller. Since electronic products and devices are constantly improving and innovations are introduced regularly, consumers are always excited to purchase the latest products from this category. 

The electronics category remains one of the top-selling categories on Amazon in 2024, with approximately 22% of sellers reporting a net margin of at least 21%. From smartphones and laptops to home entertainment systems, this top category encompasses a vast array of products catering to diverse needs and preferences, including the following Amazon products: 

Top Selling Products in This Category | Product Ideas: 

• AirTag
• Amazon Fire TV Stick
• Wireless Earbuds

Pro-tips to Succeed in the Electronics Category 

To increase the chances of success in this category, you should never forget to optimize your listing. Do not simply settle with the product information provided by the supplier. 

Although copy-pasting the information to the product description section of your listing is beneficial, it would also help add your own experience with the product as a user. It will give potential buyers more ideas about the user experience of the electronic product.  

That is one of the reasons why you should ask for a product sample from any of your inventory suppliers. It will give you a better understanding of the product, including the user experience. 

6. Sports & Outdoors

Driven by the increasing emphasis on wellness and outdoor activities, the Sports & Outdoors category is one of the profitable Amazon categories this year. It is an ideal category for Amazon businesses whose niche revolves around fitness equipment, camping gear, hiking accessories, or athletic apparel.

Despite the presence of physical stores in the outdoor and sportswear market, a significant 21% of sellers are able to achieve a net profit of 21% or more. Amazon sellers can maximize their profits by offering relevant products and promotions at the right time. Some of the top selling products on Amazon in this category include:

Top Selling Products in This Category | Product Ideas: 

• Coated Hexagon Dumbbells
• Exercise Bands
• Stainless Tumbler

Pro-tips to Succeed in the Sports & Outdoors Category 

To succeed in the Sports & Outdoors category, consider collaborating with sports and outdoors influencers or experts in relevant niches to reach a wider audience and gain credibility. Additionally, you should not overlook sustainability efforts, as eco-conscious consumers increasingly prioritize environmentally friendly products and practices.

7. Health, Household & Baby Care

Consumers’ ongoing need for everyday essentials and family-centric products makes this product category one of the top Amazon categories. Since the Health, Household & Baby Care category encompasses a wide range of items, including vitamins, cleaning supplies, baby care essentials, and more, about 21% of sellers reached a net profit margin of 21% or more. 

These products are fundamental to daily life and well-being, so the category experiences consistent demand and repeat purchases. For your eCommerce business to attract more customers, you should cater to individual and family needs. You can capitalize on consumers’ life stage transitions, such as pregnancies, births, and aging, to increase spending on health, household, and baby care items. 

Top Selling Products in This Category | Product Ideas: 

• Paper Towels
• AA Alkaline Battery
• Wet Wipes (Flushable)

Pro-tips to Succeed in the Health, Household & Baby Care Category 

In the Health, Household & Baby Care category, it is crucial that your online store provides a broad selection of products tailored to consumers’ lifestyles, health needs, and life stages. To achieve this, start by deeply understanding your audience’s diverse preferences, which can vary significantly among different consumer demographics. Doing so can ensure your inventory effectively addresses a wide range of customer needs and preferences.

8. Toys & Games

The Toys & Games category is an all year profitable category on Amazon, with 20% of sellers reporting a net profit margin of 21% and above. The popularity of this category is mainly driven by its appeal to children, parents, and gift-givers alike. 

Amazon sellers can include various products on their listings that cater to different age groups, interests, and preferences. Your Amazon business can offer products such as traditional toys, board games, puzzles, video games, and educational toys, including the following:

Top Selling Products in This Category | Product Ideas: 

• Latex Balloons 
• Modeling Compound
• Foil Curtain Backdrop 

Pro-tips to Succeed in the Toys & Games Category 

When selling toys and games, new sellers should be familiar with the current trending games. You should get a feel for what consumers like the most in this particular niche market. Try to establish a target market to focus the resources of your own online store on products that sell on the Amazon marketplace. 

9. Grocery & Gourmet Food 

The Grocery and Gourmet Food category is another profitable Amazon category. It presents a great opportunity for Amazon to cater to consumers’ everyday needs and desire for culinary exploration. With the pandemic accelerating the trend towards online grocery shopping, the Grocery and gourmet Food category has become one of the top Amazon categories. 

Top Selling Products in This Category | Product Ideas: 

• Protein Shake
• Essential Energy Drinks
• Coffee Pods

Pro-tips to Succeed in the Grocery & Gourmet Food Category

When offering Grocery & Gourmet Food items on Amazon, proper preparation, packaging, sealing, and labeling are essential. Remember to use the manufacturer’s UPC code when listing the products, and ensure your business has the necessary licenses or approvals from relevant government agencies. Furthermore, it is crucial to comply with federal and state laws as well as Amazon’s policies to avoid penalties or account termination.

10. Cell Phone & Accessories

The Cell Phone & Accessories category is considered one of the most profitable Amazon categories. With the constant evolution of mobile technology and the widespread adoption of smartphones, this category experiences steady demand for a wide range of accessories, including the following:

Top Selling Products in This Category | Product Ideas: 

• Glass Screen Protector for iPhone 14/13
• Portable Charger 10000mAh
• Power Adapter 

Pro-tips to Succeed in the Cell Phone & Accessories Category 

Achieving success in the Cell Phone and accessories category requires a proactive approach to keeping pace with ever-evolving technological trends and consumer preferences. 

It is essential to keep your Amazon Listings updated with the latest smartphone models and accessory innovations, catering to a variety of consumer budgets and preferences. Boost your product presentations by prioritizing captivating product listing images and detailed descriptions, effectively showcasing the features of your Amazon listings to attract and engage Amazon shoppers. 

Holistic Approach for Better Sales 

While profitability is an important factor to consider when selling on Amazon, it is important to keep an open mind and not limit yourself to a particular Amazon category. The key to success is finding a high-demand, low-competition opportunity. Hence, you should conduct product research to find profitable best products to sell on Amazon that bring profit to your Amazon FBA or FBM business. 

To make your Amazon campaign successful, it is important to take a comprehensive approach, not just focusing on the top Amazon categories or best products to sell on Amazon. Other important aspects of your business operations, such as Amazon repricing, marketing, listing optimization, inventory management, customer feedback management, and more, should also be considered to ensure the overall success of your campaign.

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Last Year’s Profitable Products – Last Year

Handmade

The idea of selling handmade products on Amazon is popular among members of Amazon Seller Central. Some Amazon FBA sellers do not view handmade items as an inventory destined to be part of Amazon’s best sellers.  Others believe that handmade items are suited for Shopify and similar platforms for consistent sales. 

However, Handmade is one of the profitable product categories to venture into when selling products on Amazon. According to a recent survey, the average profit margin for the Handmade product category is 32%. And this is relatively high compared to other popular categories found on Amazon. The data also suggests that many Amazon shoppers visit an Amazon store for online shopping of handmade items.

Top Selling Products in This Category | Product Ideas: 

• Funny Bachelor Gift
• Personalized Lovely Symbols Pets Collar
• Small Hoop Earrings for Cartilage Nose

Pro-tips to Succeed in the Handmade Category

When selling your own handmade products on Amazon, make sure to use high-quality photos. If your work contains special and unique detail, it needs to be emphasized for Amazon shoppers to see and appreciate it better. Make use of proper imagery tools to highlight the uniqueness of your item.

CD & Vinyl 

Despite the increasing popularity of online music streaming platforms, like Spotify, Deezer, and Grooveshark, there still remains a demand for CDs and vinyls. Sellers wanting to capitalize on this consumer demand should consider selling products under the CDs & Vinyl category. The said product category is one of the profitable niches to sell on Amazon because of its favorable 27% average profit margin. 

Top Selling Products in This Category | Product Ideas: 

• Linger Awhile | Samara Joy (Artist) 
• Just Like That… | Bonnie Raitt (Artist) 
• TRUSTFALL Explicit Lyrics | P!nk (Artist) 

Pro-Tips to Succeed in the CDs & Vinyl Category   

When dealing with this particular category, you should be aware that CDs and types of vinyl appeal to specific online shoppers. For that matter, you should sell products that are popular in specific genres and items on a collectible level. Additionally, the use of an AI repricer will also help you with your product pricing and Amazon Buy Box win rate.

Industrial & Scientific 

Although not that popular, the Industrial & Scientific category can bring more profit to your Amazon FBA business. It is an ideal category if you wish to avoid too much competition from new sellers targeting high-demand products or product categories.  It offers a higher profit margin of 25% compared to popular Amazon categories like Kitchen & Dining, Electronics, and Home & Kitchen, making it worth exploring for financial gains.

Top Selling Products in This Category | Product Ideas: 

• COVID-19 Antigen Rapid Test
• Disposable Face Mask Filter
• Powder-Free Nitrile Exam Gloves

Pro-tips to Succeed in the Industrial & Scientific Category 

When selling in this Amazon category, it is essential to focus on your target market and understand its current needs. By researching your customers, you can identify their challenges and tailor your offerings to meet their specific needs.

The primary customers of the Amazon Industrial & Scientific category come from diverse industrial and scientific backgrounds, including but not limited to laboratory technicians, dentists, medical professionals, chefs, electricians, farmers, construction supervisors, and others. You should research products that can provide the needs of these specific professionals.

Luggage & Travel Gear 

With most of the borders now open for travelers, there has been a surge in travel activity. It creates a favorable situation for sellers to capitalize on consumers’ strong desire to travel. The Luggage & Travel Gear category on Amazon is a worthwhile option to consider for profitability, as it boasts an average profit margin of 25%.

Top Selling Products in This Category | Product Ideas:  

• Set Packing Cubes Luggage
• Hair Spray Bottle – Ultra Fine Continuous Water Mister
• Toiletry Bag Travel Bag with Hanging Hook

Pro-tips to Succeed in the Luggage & Travel Gear Category 

To increase sales of your luggage and travel accessories, emphasize the longevity and sturdiness of your products. Try to present customers with detailed and clear images that show the product’s interior and exterior features.

Focus on the practical benefits that your product offers, such as its storage capacity, to help customers understand its real-life value. By highlighting these aspects, you can draw more customers and increase your eCommerce business sales in this profitable Amazon category.

Video Games

It is not possible to mention profitable categories on Amazon without mentioning video games and its 23% average profit margin. The video game market is worth about $138 billion. Amazon’s commitment to the video game market has made video games one of the most profitable product categories for Amazon sellers. As a video game seller, you must provide a variety of options for your buyer.

Top Selling Products in This Category | Product Ideas:  

• $10 – PlayStation Store Gift Card [Digital Code]
• $20 – Xbox Gift Card [Digital Code]
• $20 – Nintendo eShop Gift Card [Digital Code]

Pro-tips to Succeed in the Video Games Category 

Amazon created Twitch, a video game streaming platform to keep gamers occupied. You should leverage this in selling video games on Amazon. Promote your video game’s product availability on Twitch to appeal to the cohort of gamers created by Amazon – the Twitch Prime Members.

Pet Supplies

Over the past years, there has been an increase in pet ownership, especially during the pandemic, contributing to Pet Supplies being a thriving Amazon category, with a 22% average profit margin. This is no surprise since in the United States alone, it is estimated that more than 80 million families own a pet. Aside from physical stores, owners love to shop for their fur babies on Amazon.  

Top Selling Products in This Category | Product Ideas:

• Earth Rated Dog Poop Bags
• Dog and Puppy Pee Pads
• Fresh Step Clumping Cat Litter

Pro-Tips to Succeed in the Pet Supplies Category  

If you aim to increase your profit within this Amazon category, the best products to sell should focus on the two most popular pets globally, dogs and cats. Try to focus your inventory on items that are relevant to dog and cat owners. This may include food, clothing, accessories, and other trending products for pets. 

Musical Instruments

The Musical Instruments category is another category offering a great opportunity for Amazon sellers. If products are chosen correctly for one of the best-selling categories on Amazon. such items can easily become the most profitable products to sell on Amazon. Although not frequently included in Amazon’s bestsellers, this category amazingly offers a potential 21% profit margin. 

Top Selling Products in This Category | Product Ideas:

• Nickel Wound Electric Guitar Strings 
• Yamaha YRS-24B Plastic Soprano Recorder
• Standard XLR Male to Female Balanced Microphone Cable

Pro-tips to Succeed in the Musical Instrument Category

When selling musical instruments, honesty is the best policy. You should be honest about the quality and condition of your items. You must disclose the warranty type that the product comes with, especially for international musical instruments. To avoid issues and for smooth transactions, you should follow both the general guidelines and the specific guidelines set for the Musical Instrument category.

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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.

One of the reasons why Amazon created FBA was to help small businesses benefit from Amazon’s top-notch customer service and unrivaled fulfillment capabilities. 

The in-house fulfillment service by Amazon is geared towards the benefit of both sellers and shoppers alike.  

What is Fulfillment By Amazon (FBA)? 

Fulfillment is defined as an eCommerce business process that involves warehousing, packing, shipping, and processing of orders, including returns and exchanges. This is an instantaneous process that begins after an online shopper checks out the purchased item. 

The tech giant offers several options for fulfillment regarding your Amazon business, including Amazon FBA. This fulfillment method is popular among most successful sellers because it allows convenient management of customer orders, timely sending of shipments, and easy access to product information. 

Therefore, making restocking, promotion, inventory management, and sales of your items much more manageable than other fulfillment methods. All you have to do is ensure that your inventory items reach Amazon’s fulfillment centers, and Amazon will perform the rest of the fulfillment process. 

To simplify the concept of FBA, it means that the seller finds items to sell on the platform, and Amazon will take care of the picking, packing, and shipping of orders on behalf of the seller.

Using FBA the Right Way 

Fulfillment by Amazon will only work if you use it properly. It would serve you best to know the right way of utilizing this kind of service at the onset of your business.

Think Big, Start Small

In the Amazon business, endurance is one of the keys to success. In order to endure costly expenses, penalties, and abrupt market changes, you should avoid selling everything you see from suppliers’ catalogs.

Start small and try to limit your portfolio to in-demand items. Remember that the more items you sell online, the higher the storage and warehousing fees.

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Perform Product Research

Try to consider a few items first before you ramp up your inventory. The thorough product research will help you narrow down your options. 

With the help of a product research tool, you will get to know the highly competitive niches and profitable items while avoiding stagnant and/or dead inventory. 

Product research is never random; there are checklists to consider. Here are some of the essential things you should check when performing Amazon product research:

• There is a sufficient profit margin.
• There is moderate competition. 
• There is a good demand for the item.
• The item is licensed and not restricted
• The item must not be bulky and complex.
• The item belongs to a popular market niche.

Trial The Use Of Amazon Ads 

Amazon Ads is a convenient way of increasing product and brand visibility in the Amazon marketplace. If you are considering advertising campaigns for your Amazon business, it is best to check the onsite ads on Amazon.

Amazon advertising solutions such as Sponsored Products and Sponsored Brands offer a quick and effective way of advertising on the Amazon website. Amazon Sponsored Products promote individual product listings, while Amazon Sponsored helps showcase brands and product catalogs through creative ads appearing in relevant shopping results. 

Leveraging Influencers

If you wish to increase brand or product visibility, you can also contact Amazon Influencers for help. Amazon influencers are those individuals or groups who have established themselves as an authority in a particular niche or social media platform. Thus, giving them the ability to influence the purchasing behavior of consumers. 

One of the things to consider when venturing into an influencer marketing campaign is the conversion rate. Accordingly, a commonly agreed-upon good conversion is 3% and above. Amazon FBA sellers should focus on the following campaign goals when leveraging Amazon influencers: 

• Increase brand awareness
• Increase of engagement
• Lead generation
• Website traffic boost

Get More Reviews

Reviews or feedback from Amazon shoppers play a crucial role in your Amazon business. It is estimated that around 93% of shoppers read reviews before purchasing online. Hence, you should strive to obtain more positive reviews for your Amazon FBA listings. 

Amazon product reviews can help increase consumer trust and interaction. Amazon reviews from previous shoppers who have bought, tested, and examined the products can increase the likelihood of prospective customers purchasing your product.

Besides influencing consumers’ purchasing behavior, Amazon reviews likewise affect product ranking. The more positive reviews you obtain for your listings, the higher the chance they will appear on top of Amazon search result pages. 

Furthermore, good reviews also affect your Buy Box win rate. Since customer review is one of the factors evaluated by Amazon for awarding the Buy Box, you should always strive to provide the best products and customer service to gain more positive reviews on your listings. 

Offer Competitive Pricing

Apart from checking previous customer reviews, Amazon shoppers also base their purchases on the product price. After they have decided on what item to purchase online, price is a top consideration for shoppers. 

It is a must, therefore, for Amazon FBA sellers to offer competitive prices. In most cases, Amazon sellers provide the best price possible by using AI repricers. Automated repricing can help sellers offer a competitive price based on various market conditions, including competitors’ pricing behavior. 

Use High-Quality Images

Uploading high-quality product images for your listings can help improve the conversion rate of your business. Product images attract shoppers to your listing page. It also allows shoppers to evaluate your product.

The high-quality images you upload, accurate product descriptions, and previous customer reviews can increase the likelihood of your FBA products being purchased by Amazon shoppers. 

How to Start Fulfillment By Amazon in 2023

Starting your own FBA business need not be complicated. Here are some steps to help you begin your Amazon seller journey. 

• Choose a product niche and engage in product research.

• Create an Amazon seller account, and set up FBA. 

• After creating a professional seller account, choose reliable product sources, either locally or overseas.

• Package products for shipment to an Amazon fulfillment center. Make sure that packing and shipping guidelines are followed.

• Create your product listing and establish your brand.

• Optimize your listing and listing price. Make use of Amazon seller tools, including a repricing software, for maximum output. 

Advantages of Amazon Fulfillment Service in 2023

Sellers usually ask what fulfillment by Amazon is and what are the benefits. To answer this for new and would-be Amazon sellers, here are some of the reasons why you should sign up for Fulfillment by Amazon in 2023: 

• Trusted Reputation

One of the reasons why many sellers subscribe to the FBA program is its reputation. You can quickly gain the trust of customers when your products are associated with Amazon FBA, thanks to Amazon’s solid reputation in the industry. 

• Free Delivery Offers

With Amazon FBA, sellers can offer free delivery for customers with Amazon Prime subscriptions. Offering free shipping increases the likelihood of online shoppers choosing your product while decreasing instances of cart abandonment.

• Increase Amazon Buy Box Win Rate

Another known advantage of using fulfillment by Amazon is the increased chances of winning the Amazon Buy Box. It is a known fact among sellers that the Amazon algorithm favors FBA sellers when awarding a spot in the Buy Box. 

• Quick Order Processing

Since Amazon FBA operates on a unique ordering system, it can provide faster processing and dispatching of customer orders. Since Amazon has an established relationship with shipping companies, ordered items are shipped faster.

• Impeccable Customer Service Management

Amazon is known as a leader when it comes to customer service. When enrolled in the Amazon FBA program, you can take advantage of Amazon’s customer service management. The customer service team of Amazon will answer queries concerning items ordered, including questions about refunds and returns. 

• Reduced Overhead Expenses

Fulfillment by Amazon is the best option if you are trying to minimize your expenses. Since you will simply be sending inventory items to Amazon’s fulfillment centers, you will drastically reduce warehouse rental fees, operating expenses, and other overhead costs related to the FBM process.  

• Multi-Channel Fulfillment Center

With multiple fulfillment centers scattered around the globe, shipping can be faster. Handling the shipping of products sold on multiple channels is more convenient with FBA. 

• Low Startup Cost

Even though starting an FBA business with a substantial investment can be advantageous, it is optional. For those with a capital of less than $1000, there is still an opportunity to start your business. You may refer to our guide on How to Start an Amazon FBA Business With Little Money to learn more. 

Disadvantages of Using Fulfillment By Amazon 

• Product Guidelines

One of the observed challenges when dealing with fulfillment by Amazon is the precise product guidelines. Since these guidelines are mandatory, observance of the guidelines can be demanding on some sellers, especially the new ones. 

• Amazon Fees

Amazon FBA costs money. Sellers have to pay fees to use Amazon’s services, such as referral fees, storage fees, and even product return fees. These Amazon FBA fees can be burdensome for sellers.

• Change in Control 

Sending your inventory items to the Amazon warehouse means giving up complete control of your inventory. Amazon will ship and pack the items their way.

• Danger of Returns

The product return policy of Amazon can be detrimental to your business if you frequently experience it. Product return fees can dramatically impact your Amazon business. 

Getting to Know Primary FBA Fees in 2023

Amazon sellers and would-be sellers need to know the primary fees involved in the FBA service. 

• Referral Fees

A referral fee is what Amazon charges for every item sold from your inventory. The fee is taken from the total sale price, and the percentage of the deduction or the referral fee varies depending on the product category. 

• Fulfillment Fees

This refers to the fees Amazon charges per unit. It is a flat fee and is based on the size and weight of the inventory item. 

• Inventory Storage Fees

You will also incur inventory storage fees for the items sent and stored in the fulfillment centers. The storage fees vary depending on the product size tier and the duration of the unit’s stay in the warehouse. 

• Other FBA Fees

Product Return Fees: For items eligible for free returns, especially via Amazon Prime, sellers will be charged for the FBA returns.

Inventory Removal Fees: When removing items from the Amazon warehouse, sellers will incur charges in the form of inventory removal fees.

Amazon Seller Tools for Increased FBA Sales

There are many methods and suggestions concerning increasing your Amazon sales. However, regardless of what approach you follow, you must consider using Amazon seller tools to increase the profitability of your business.

Here are some of the Amazon seller tools you can use to increase FBA sales in 2023.

Amazon Repricer: An Amazon repricer, particularly the more advanced AI repricers like Seller Snap, can help in creating an effective pricing strategy. Repricers will help you avoid Amazon price wars while maintaining a competitive listing price.

Product Research Tools: As emphasized in the preceding paragraphs, product research tools will help you find a product that provides better value for your business. This tool will also help you avoid slow-moving products. 

Amazon FBA Calculator: Another must-use seller tool is the Amazon FBA calculator. With the help of the FBA calculator, you can have insight into the potential revenue and the possible margin impact of an item’s price change. 

Feedback Tools: Reviews or customer feedback matter for Amazon. If you wish to increase store credibility and customer rating, you should approach customer reviews proactively with the help of feedback tools. A feedback tool will automatically send review request emails to Amazon customers. 

What is Fulfillment By Merchant (FBM)? 

The good thing about Amazon is that they allow multiple fulfillment services for third-party merchants. If you need to customize the packaging, you have a very large-scale operation, or the weight and size of your products are large, then Amazon FBM is the best alternative. 

Amazon FBM is a method that gives sellers control over the entire handling and shipping process. This means that sellers will not incur all the fees associated with FBA.

Let Amazon FBA Improve Your Business

Since its inception, numerous online sellers have realized the benefits of Amazon fulfillment to their retail business. Despite having other channels to dispose of their items, Amazon FBA remains the top destination for online sellers.

What attracts sellers to engage in Amazon FBA is the convenience it brings to the table. Instead of focusing on the whole process of picking, packing, and shipping, you have Amazon as your reliable proxy to handle those things for you. 

If you want to stay competitive in the eCommerce industry, Amazon FBA  might be the fulfillment service you need in 2023. 

Therefore, it’s no surprise that many brands sell their items on the platform. Nonetheless, selling on Amazon has become tougher lately due to an abundance of low-cost and poor-quality counterfeits and dishonest retailers.

If you sell on Amazon, you are aware of the intense competition in its markets. Therefore, the marketplace introduced a program for enrolled sellers to help them fight trademark infringement.

What is Amazon Brand Registry?

Potential buyers of FBA businesses are truly wary of purchasing existing businesses that can be smartly hacked or copied, which could result in the loss of the ‘buy box’ and associated income. Therefore, if you are a brand owner who manufactures and offers your private-label goods on the marketplace, you should register on the Amazon Brand Registry.

Brand Registry is a program that identifies sellers to Amazon and allows them to build and protect their brands in the marketplace.

Why Did Amazon Launch the Brand Registry Program?

Amazon has encountered lawsuits from businesses alleging that the work done to avert the sale of counterfeit goods and intellectual property infringements is insufficient.

Amazon launched Brand Registry to halt the wave of counterfeiting and IP violation problems on the Amazon website. Moreover, it shifts some of the burden of infringement control from the marketplace to sellers.

Since the program identifies sellers and their enrolled retailers, it facilitates for Amazon to start implementing its Standards for Brands Selling. Thus, it informs sellers that they can not sell directly to buyers using the Amazon Marketplace anymore. Instead, they can sell products directly to Amazon Retail as suppliers.

Updates to Amazon Brand Registry 2.0

Brand Registry 2.0 is a better service version. It is designed for resellers who own brands, producers of goods, and distributors. Moreover, it allows retailers to manage certain Amazon goods. If any of the three categories suits you, the program will not approve you.

The new version of the program – Amazon Brand Registry 2.0 – is Amazon’s method of proving it’s targeting sellers who take their brand seriously rather than offering waste products. The platform has updated its program substantially since May 2017. Whereas there will be constant upgrades, the main amendments are the following:

• Improved brand control over fakes. New instruments to detect violating goods. Sellers can search by brand, trademark, or item name and upload item images to see listings with identical images that may infringe on their copyright.

• Custom brand page. An Amazon storefront brings buyers who click on your brand name to your created brand page.

• Headline Advertising Brand Registry 2.0. Promotional headings allow you to attach a line of text to the left of the ad, along with three other products that get preference at the top of the results page.

What Are the Brand Registry Benefits?

Based on the information provided by Amazon, over 130.000 business people worldwide have registered their brands on Amazon. So what is the Brand Registry on Amazon designed for? With it, sellers detect and report 99% fewer alleged violations than before the program’s start. So let’s see how Amazon seller Brand Registry can help you:

Build Your Brand

• A+ Content. It allows companies to demonstrate their brand stories and product traits with formatted text and images on the Amazon detail page to increase conversion and boost sales further.

• Sponsored brands. Boost your brand awareness with advertisements with your logo, tailored heading, and up to three selling items.

• Amazon Stores. Promote your trademark and goods for free using your multipage Amazon Store.

• Amazon Brand Analytics. Your decision-making may be more productive with potent data from Amazon Brand Analytics, including customer search queries and behavior reports.

• New seller incentives. Recent brand owners who sign up with this program can receive up to $50.000 in bonuses and discounts.

Protect Your Brand

• Accurate listings. Better run your product pages, so buyers see authentic information.

• Proactive brand protection. Amazon’s automated protections leverage information about your business to remove violating or incorrect content in advance. As you provide more details, the program will better assist you with protecting and enhancing your brand experience.

• Report violations. Amazon’s potent search tools allow you to detect and report alleged infringements quickly.

What Are The Amazon New Brand Registry’s Drawbacks?

Do not consider the points mentioned below as real cons, but things Brand Registry won’t do for you.

Amazon doesn’t take action against brand owners who list your goods against your will. Instead, it works against those who offer counterfeit or violating items. Also, the marketplace doesn’t take action against those who market your brand’s goods at a minimum advertised price (MAP).

How Can Seller Central Brand Registry Help Me Promote My Brand?

Amazon-registered brands and verified companies have more control over the information displayed on a product page compared to other brands selling the same product. This way, you can improve your Amazon brand services and listings and make it easy for buyers to find your items.

How to Check if a Brand is Registered on Amazon?

Even though there is no public database of companies signed up with Amazon, Enhanced Brand Content (EBC) gives a more detailed description of goods with more images, complex layouts, and formatting. Nonetheless, EBC is optional, so it doesn’t mean the brand is not registered if it doesn’t have EBC.

The most straightforward way to verify Amazon brand ownership as a customer is to check if it has an Amazon Store or A+ Content on the product page.

How to Enroll a New Brand on Amazon?

Amazon Brand Registry is essential for new brands. If you wish to learn how to enlist a new brand on Amazon, here are some steps you should know:

STEP 1: Create a Brand Registry account by submitting all the necessary details.

STEP 2: Once you create an Amazon Brand Registry account, on the left-hand corner of the homepage, find and click on ‘Enroll a new brand,’ and you will see the list of information required for registering your brand.

STEP 3: When you have covered all the information, click on ‘Enroll your brand,’ and you will be led to a form wherein you have to fill in your brand name. Ensure the brand name you enter matches precisely with your trademark name. The characterization of the brand name you enter must be the same as your registered trademark name.

STEP 4: As the brand name is enrolled, it is unlikely that you or any other party of your brand will be able to make changes to it. If the brand is already registered, you will see a message saying so, and your details might be sent to the brand owner. If your trademark is not being registered or if you are applying within 48 hours of registration, the program will not enable you to proceed.

STEP 5: Once you answer the questions, you will be asked to provide the details of your trademark and the categories to which your items belong. You should also be able to verify yourself as an owner of the trademark. 

STEP 6: Once you submit the application, you receive an email notifying you of your submission. Amazon will contact the person or entity that applied for the trademark. If you use the legal entity, the legal entity will receive a notification containing a code. You must obtain and submit that code to your Brand Registry application.

Once Amazon has both verification points, your Amazon brand ownership will be approved. You can repeat this process by clicking ‘Enroll Brand’ for each registry trademark you own. Once you enroll, you can begin receiving the benefits of being an Amazon brand owner.

How Can Your Business Benefit From Brand Registry?

Merchants can accelerate removing a doubtful or bogus item from a listing as they can quickly show Amazon that they are brand owners.

Fake listings are a prevalent issue for well-known businesses or merchants with high sales rates.

Removing dishonest merchants from the listing is not a problem if the seller uses FBA. Once in the Brand Registry, merchants can more quickly confirm whether someone has faked a product as the previous work of enrolling the brand on the website has been completed. In addition, Amazon will get rid of all counterfeit inventory if the brand owner uses FBA. In contrast, other brand owners may revert to a listing after they have been removed by opening another merchant account with another name.

Adjusting Marketing Strategy to the Brand Registry Enrollment

When devising an efficient Amazon marketing strategy, it would be best if you understand your audience through data analytics. For example, Amazon Brand Registry allows you to access your clients’ buying behavior, search terms, items that suit them, and essential demographics. By understanding these aspects, you can make reasonable adjustments to your Amazon marketing strategy, make changes to your store, and boost your sales.

Brand Registry is a viable option with a lot of potential for brand reputation. The point is, it’s not so easy to enroll in a new brand. It takes a carefully crafted business strategy to know for sure if the money and effort put into obtaining the ® symbol for their product.

While you see the benefits and drawbacks of having an enrolled patent or trademark, several options still protect your trademark and brand in the marketplace. For example, optimizing your listings, picking relevant keywords for your product names, and keeping a close eye on your competitors may reduce the risk of your selling items being hacked.

So an efficient solution is to find a reliable Amazon marketing agency that will make your life easier.

The Cost for Amazon Brand Registry Application?

No cost is required to enroll in the Brand Registry program at this time. Nonetheless, it would be best if you had an enrolled trademark to pretend to apply for a Brand Registry.

The fee for a registered trademark is usually between $225 and $400. Yet, these fees may range contingent on the class of protection you wish to purchase.

How Do Brand Registry’s Changes For The Better Affect Your Business?

The improvements made in the Brand Registry program are apparent. Strengthening pre-registration requirements and introducing trademark requirements must substantially reduce the likelihood of brands and goods faking. The addition of the “Report a Violation” search instrument facilitates detecting and reporting brand violations, which is a blessing for entrepreneurs on Amazon. The platform’s readiness to shift the challenge of verifying the authenticity of fake brands and items from sellers to themselves is supportive, the same as their readiness to set aside four hours to respond to complaints.

There are a few other issues, such as insufficient protection against MAP infringers and the incapacity to prevent unauthorized merchants from purchasing branded goods and selling them according to the MAP. Amazon Brand Gating enables sellers to own their listings and regulate which merchants can use those goods. It is done by requesting other sellers to apply for the right to sell your business and items and requesting them to pay a fee. Nonetheless, Brand Gating works by invitation for now.

Wrapping Up

Protecting your brand when working with Amazon is the topmost priority. Enrolling your brand under the Brand Registry program will save your goods from fakers, hackers, and other infringers and provide you with access to multiple instruments, thereby assisting you with boosting your sales and income. If you wish to understand the program better, feel free to reach out to us.

Shops on Amazon have a lot to gain from signing up for Brand Registry. From more excellent business protection to never-ending methods of attracting clients, you’ll have whatever you need to boost sales and increase brand awareness.

It all amounts to ensuring the most positive brand experience. With all the tools at your disposal, you’ll reach your full potential in the marketplace and surpass your competitors.

——

About the Author:

Lana Parchuk is the Head of Project Management at Profit Whales, a full-service marketing agency for e-commerce brands that scales them on Amazon and beyond via a cross-channel approach.

With over two years of experience of work in Profit Whales, Lana went through all the stages from Customer Success Manager to Head of Department. She built a system of managing multiple marketing channels (Amazon and social media, search ads, etc) for e-commerce businesses to set clients up for success. 

Now, Amazon is taking customer service to an entirely new level with their new concept, Robo-Stow. This mechanical brain will search racks in a massive warehouse, collect products, and place them on shelves without human interaction. It’s hard to imagine that something this big is entirely automated.

In this article, we’ll discuss how robots are transforming Amazon’s eCommerce warehouses. 

What is Amazon Robotics?

Amazon Robotics is a subsidiary of the Amazon.com corporation that designs, manufactures, and sells robots for fulfillment centers. The company was originally named Kiva Systems after its building-block-inspired robot, but changed its name to Amazon Robotics in 2015 when it became a part of the larger company.

Amazon’s eCommerce fulfillment centers are massive structures that can hold millions of products and thousands of employees. 

Traditional warehouses require a lot of people to keep things running smoothly: workers have to manually move goods from storage locations to shipping areas and back again. This takes time and money and increases the likelihood of mistakes being made along the way.

The Lowdown

Robots have been used in the transportation, logistics, automatic fulfillment, and eCommerce industries for a long time to automate tasks that humans would otherwise do. Amazon has been looking for ways to scale up its operations without increasing costs, so it turned to automation technology.

Robots have been used in Amazon’s warehouses since 2012. They purchased Kiva Systems for $775 million.

They renamed it “Amazon Robotics” and began incorporating it into their warehouses across North America. They’re used to moving inventory around, picking items off shelves, and even placing products into boxes.

Amazon has about 5,20,000 robotic units working in its warehouses today. The impact of these automated systems is impressive: they reduce cycle times (the time it takes to get an item from warehouse to customer) by as much as 50 percent while also increasing order accuracy and productivity.

Top Reasons How Robots Are Transforming eCommerce Warehouses

Process Automation and Time-Saving

Amazon’s main focus is on technologies that help humans do what we do best and automate tasks that help humans do more in less time like AI email assistant. Process automation changed the way we buy and sell products. It has changed the way we live our lives. But behind all this innovation lies a process of automation that is transforming the world of work.

The company uses robots to pick orders from shelves, pack them into boxes and move them around warehouses. These machines have been designed to replace human workers who do these tasks manually—an expensive process that takes up resources and increases costs for the company. Robots do these tasks much more quickly than humans while saving money.

Amazon Robots Work Alongside Human Associates to Fulfill Customer Orders

Amazon is at the forefront of automating its warehouses to reduce the cost associated with human labor. The reason for automation is that it’s more expensive to pay someone to do things manually than to build robots that can do it for you.

In addition to speeding up the process of fulfilling customer orders, these robots have another advantage: they don’t get tired or make mistakes like humans do when doing repetitive tasks over long periods of time. This means they could handle larger workloads without needing rest breaks or breaks from monotony.

The robots work alongside human associates who pack and ship customer orders from these facilities worldwide. They move around on narrow paths between rows of shelving containing hundreds or thousands of items each. 

Each robot has a small computer screen attached so workers can see where it is going and so they don’t get hit by the machine when it gets close enough for them to reach out.

Robots Move Inventory to Make the Process More Efficient and Increase Reliability

Robots move inventory around Amazon’s warehouses, making the process more efficient and increasing reliability. It’s also using artificial intelligence (AI) to track down items that are hard to find and make sure they’re stocked in the right place at the right time. These developments have increased Amazon’s ability to deliver its goods quickly, cheaply, and accurately.

This makes things more efficient by removing humans from the equation. It also makes things more reliable because there’s no risk that an employee will forget to complete a task or try to get out early. The robots also don’t need breaks, so they work nonstop as long as they have power and parts. 

Robots Can Do Heavy Lifting

One of the biggest challenges facing e-commerce companies is handling heavy products in warehouses. These products are a major expense and logistical challenge for e-commerce companies. They’re also where Amazon saves a lot of money by investing in automation.

Robots are good at performing repetitive tasks, which means they can handle some of the more mundane tasks involved in getting products from A to B.

They also have a greater range of motion than humans, so they can reach higher shelves and pick up items from awkward angles. They can also lift much heavier items than workers normally find difficult.

Robots Make Multitasking Easier

In many warehouses, employees work in teams of two or three people, performing various tasks to prepare an order for shipment. Robots can perform several of these tasks simultaneously, eliminating bottlenecks from the process and increasing efficiency. 

For example, a worker may have to prepare an item for shipping by scanning it into inventory, removing it from its packaging, and boxing it up before putting it on a conveyor belt for shipment out of the warehouse.

A robot could do all those things simultaneously without slowing down or needing any human intervention—thus increasing productivity by 50 percent or more.

Robots Can Keep Up With Customer Demand

Robots are transforming online businesses to help meet the growing demands of online shoppers. Robots come in various shapes and sizes and are used in different ways. Some robots transport items between stations, while others pick them up and place them in bins or totes. Other robots perform repetitive tasks that humans find too dangerous, such as lifting heavy objects or working in environments with extreme temperatures.

Robots are helping companies process orders more quickly by automating some of the most laborious tasks in warehouses. They’re also taking care of mundane, often undesirable tasks like product picking, which can be dangerous and tiring for humans working long hours on their feet. 

Amazon can quickly fulfill multiple orders through their robots instead of having to do them once as they come in. Robots are also helping speed up the delivery process by moving packages more quickly through a warehouse, reducing the time it takes to get packages out the door.

Wrapping Up

Amazon has changed the way that people shop many times over the years. From ‘1-click’ shopping to its line of smart speakers, the company is responsible for moving the e-commerce game forward in many ways.

However, Amazon is also leading a new wave of innovation in how we shop with robots. This technology is important to the field of robotics because it will help determine whether robots will be viable tools in logistics, retail, and other industries. There are also important implications for job market growth as robot technology continues to improve and become more mainstream.

One of the factors that risk Account Health is the customer’s negative feedback, which usually talks about the shipping (delays, broken items, etc.). So, we’ll give you a better understanding of Amazon fulfillment options by weighing their pros and cons. But before we dive into that, we’ll start with knowing how these fulfillment options work.

Amazon Fulfillment Options Explained 

Fulfillment by Amazon (FBA) – is a service where Amazon shoulders the entire fulfillment process.  Sellers only have to send their inventory to Amazon fulfillment centers, and Amazon will take care of the rest, from storing to packing and shipping the orders, even returns.

Fulfillment by Merchant (FBM) – also known as Merchant Fulfilled Network (MFN), is a service where the sellers handle the warehousing, fulfillment, and returns.

Seller Fulfilled Prime (SFP) – is similar to FBM, where the seller shoulders the fulfillment process but with the benefits from FBA. In this program, sellers can put Prime badges on their products without enrolling for FBA. 

Pros and Cons of these Amazon Shipping Options

Fulfillment by Amazon (FBA)

Pros:

• Prime Eligibility

FBA products are eligible for millions of Amazon Prime subscribers, which is half of Amazon’s customer base. With the Prime badge, you can make your products available for Amazon Prime with two-day shipping. The quick transaction usually attracts more customers.

• Increased Chances of Winning The Buy Box

The Amazon Buy Box was created to provide customers with the best option for their budget, and Amazon is the one who chooses the product to receive it. Therefore, winning would provide better potential for earning sales. And usually, in the algorithm, sellers with FBA listings win the buy box more than non-FBA ones. So, by having your products fulfilled by Amazon, you will have a better chance of winning the buy box.

• Coverage

Amazon has massive logistic networks in the US and all over the world, which means that the shipping duration will be as swift as possible.

• Returns

Since Amazon is handling the fulfillment, the returns will also be taken care of, so you can focus on other crucial aspects of your business.

Cons:

• Higher Fees

One of the drawbacks when enrolling products on FBA is the expensive fees. Amazon calculates the cost of your products by their weight and dimensions. Not only that because you also need to consider the inventory storage costs. These are the costs you will incur when using Amazon’s fulfillment facilities to store your products.

• Comingling of Products

Since Amazon keeps items from different categories together, there is a good chance that your products will mix up with those from other companies. To avoid that, it’s best to label your items properly based on Amazon packaging requirements.

• Time Duration to Market your Products

When you send your items to fulfillment centers, Amazon will check the items one by one, share them with other fulfillment centers, and package them. In these processes, your products won’t be available to sell. The process needs to be finished first before they update the inventory on the website.

Fulfillment by Merchant (FBM)

Pros:

• More Control Over the Packaging

Since you’ll be the one to handle the packaging, you can customize your packaging. Add some personal messages to it, so you can build relationships and trust with your customers. Moreover, with your full control over fulfillment, you can easily take into account corporate sustainability to help conserve the environment.

• Easier Tracking of Inventory

Since your products will be stored in your owned warehouses, monitoring them is more manageable. 

• Ready to Sell

With FBM, you won’t need to wait weeks for your items to be available for selling, like on FBA.

• Fewer Fees

With FBM, you won’t worry about FBA fees, along with the inventory storage fees. All you will consider is the cost of shipping with your shipping partner.

Cons:

• Competition with FBA Sellers

Since FBM listings don’t have Prime badges, chances are most customers choose to go with FBA listings, which means fewer sales.

• Returns

Amazon is customer-centered. So, when a customer complains about your products, especially when the issue is connected to shipping, Amazon will side to with them, and you will need to pay for the refund and shoulder the fees for shipping returns.

Seller Fulfilled Prime (SFP)

Pros:

• Amazon Prime Tag

Having Amazon Prime Tag is one that separates SFP from regular FBM. And since customers trust products with Amazon Prime tags more, you’ll have more sales.

• Similar FBM Benefits

Benefits from FBM like control over the packaging, inventory tracking, and product availability to market

Cons:

• Highly Regulated

Because of the Prime advantages, the program has strict requirements for sellers to be eligible and maintain the eligibility. 

• Fulfillment of Increasing Orders

Fulfilling the orders can be difficult when the volume keeps on increasing—knowing that you also have to keep up with Amazon Prime requirements. 

• Expensive

Prime products can offer next-day shipping. While it’s beneficial for the customer, it can be costly to the seller.

Conclusion

Now that we know how the fulfillment options work, we can say that FBA is a better choice if your business has high sales velocity, problems with logistics, and doesn’t have a warehouse to store your products. Meanwhile, FBM is feasible for business starters with a limited budget, but with sufficient space for their items. 

The scale of your E-commerce business and the type of products you sell are two things to consider when choosing a fulfillment option. And with the knowledge of how FBM and FBA work, selecting one to support the growth of your business will be much easier.

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.                 

More likely than not, Amazon owes you FBA reimbursement for mistakes in handling your inventory and incorrect overcharges. But even though these are mistakes made by Amazon, the responsibility to identify these mistakes and claim FBA reimbursement is largely yours.

Moreover, if you don’t submit a claim within 18 months from the time the mistake occurred, you lose whatever FBA reimbursement Amazon may have owed you.

How much money could Amazon owe you? FBA reimbursements amount on average to anywhere between 1% to 3% of an Amazon FBA seller’s annual revenues. If your sales total about a hundred thousand dollars annually, that’s $1,000 Amazon owes you, and that’s on the low end.

Here’s how to find out what money Amazon may owe you:

• What is FBA reimbursement?
• How do I know if I’m owed FBA Reimbursement?
• How to get your FBA reimbursement
• The best way to get FBA reimbursement: GETIDA

What Is FBA Reimbursement?

You are owed FBA reimbursement for any error or overcharge Amazon makes in handling your inventory and fulfilling orders. This includes lost and damaged inventory, improperly credited returns or returns not put back into Amazon inventory, inventory destroyed or disposed of by Amazon as unusable (which Amazon doesn’t need your permission to do), and overcharges resulting from inaccurate product weight and package dimensions.

How Do I Know I’m Owed Amazon FBA Reimbursement

Sometimes Amazon automatically issues FBA reimbursement for an error or overcharge. Most times, not.

Ultimately, it’s the responsibility of the Amazon seller to continually audit your shipping and inventory records to determine if Amazon owes FBA reimbursement. Eligible claims are filed within 18 months of when the error occurred as an error that took place as a Shipment to Amazon, in Fulfillment Center Operations, lost or damaged during shipment to FBA customer, or a Removal Claim when the returned product is not received at your return shipping address.

How do I get the FBA Reimbursement I’m Owed?

Before you can file a claim, obviously you first have to determine if there is a basis for the claim. The only way you do this is to continually review your inventory and shipping records to determine whether there are any discrepancies.

As you might imagine, this is time-consuming, not to mention a tedious process. But if you don’t want to leave money on the table, it’s something you need to do. Margins for most Amazon sellers are so thin that you actually can’t afford to leave this money on the table.

You have a few options:

• Hire someone to audit your inventory and shipping accounts. There are a few issues here. One is additional salary overhead; you’d have to be fairly certain that you are going to recover at least as much money as the salary allocated to find the FBA reimbursement you are owed. Secondly, the time you expend in trying to find someone sufficiently familiar with Amazon FBA selling and FBA reimbursement; or, if you can’t find anyone, the time spent to train them. You’d also be providing a new person with access to your seller account, so you’d have to be sure you could trust them for this task.
• Hire a virtual assistant. While this may cost you a little less in terms of salary, as most VAs work for a flat rate and only when they work, this option has many of the same issues as hiring a direct employee.
• Rent or purchase software to audit your FBA accounts. The drawback here is that you still need someone, yourself or someone you hire, to file claims and follow-up on those claims.

The Best Way to Get FBA Reimbursement: GETIDA

The best and most affordable solution to get your FBA reimbursement is GETIDA, which

stands for GET Intelligent Data Analytics. There’s no one to hire, and you don’t get involved in either the audit or the claims process. It’s a complete end-to-end solution that does all the work on your behalf and doesn’t charge for that work unless it recovers the FBA reimbursement you are owed.

GETIDA was founded by Amazon sellers to make available the very software they developed to find and claim FBA reimbursements for their own business. It is the largest provider dedicated to Amazon FBA auditing and reimbursement, analyzing billions of dollars of transactions daily.

GETIDA auditing software tracks your Amazon FBA inventory transactions, refunds, seller data analytics, and FBA reimbursements. GETIDA’s dedicated, experienced Amazon FBA account team submits and follows up on your claims for as long as it takes to get you the money you are owed.

As an advocate for the Amazon seller community, GETIDA sponsors a range of seller education programs and events, as well as the GETIDA podcast Prime Talk. GETIDA also offers complimentary consulting services on how Amazon sellers can grow their business.

A member of Amazon’s Service Provider Network and the Amazon Marketplace Appstore, GETIDA was the 2020 winner of the Gold Stevie Award in the SaaS Enablement as a Service category from the American Business Awards.

GETIDA is risk-free. There’s no charge to sign up, and GETIDA  only charges a reasonable percentage of whatever claims obtain the FBA reimbursement you are owed.

It’s simple and easy.  Go to the GETIDA  website and click the “Free Sign up” button.

There’s no obligation. You can get $400 in free FBA Reimbursements to try them out.

Now you know that you know Amazon probably owes you money for FBA reimbursement, you also know the best way to get that money back.

——

About the Author:

GETIDA is a global leader in FBA auditing and reimbursement. We work with you and Amazon to ensure you receive the full potential of the FBA reimbursements you are entitled to. We Audit, Claim, & Recover FBA Reimbursements for Amazon Sellers. You Only Pay For What We Recover!

In a nutshell, compliance describes the process of acting, trading, and selling in accordance with the applicable law and regulations. The guidelines in question can concern a variety of fields – from taxes to customer protection to safety and environmental protection. Some are more important for Amazon FBA sellers, some are less so. 

Among the most crucial regulations to be compliant with for Amazon sellers are VAT and data privacy guidelines. These are topics in which specialised tools can help entrepreneurs to act in conformity with the law. The following article will show why compliance is so important and how to achieve it. 

What Is Legal Compliance and Why Is It Important?

If you are selling on Amazon Europe and fulfilling orders with Amazon’s Fulfilment Programs you are most likely serving customers in a variety of countries. The more countries you are selling in, the more local and specific laws and regulations you have to follow – ranging from environmental protection laws to packaging requirements. 

Of course, the specific pieces of legislation vary. However, if you are non-compliant with legal matters, you might not only face penalties but also exclusion from marketplaces or worse. In order to prevent fines and punishment and to make sure you follow the variety of guidelines in place across Europe, you can use Legal-Compliance-Management Tools like Libryo. 

These tools help online shop owners and Amazon sellers navigate complex regulations clearly and securely and introduce them to all laws that apply and have to be observed in the respective countries to which they sell by offering location-specific and industry-specific legal registers. 

Furthermore, all updates and changes to the laws and regulations are always prepared in simple, jargon-free language to also offer users without legal knowledge the opportunity to check compliance with local legal requirements.

What Is VAT Compliance and Why Is It Important?

VAT compliance describes the lawful fulfilment of duties concerning VAT – the Value Added Tax. These include – among other responsibilities – the obligation to register for VAT at a certain point, the task of collecting the right amount of VAT from end consumers, the obligation to turn in regular VAT returns once registered, and the task of paying the VAT debt to the authorities to which the VAT is owed. 

For example, if you establish a business in your home country you will need to immediately also register for VAT. Additionally, you need to register for VAT in foreign countries if your turnover through transactions with customers located abroad crosses a certain threshold or if you store products abroad, as is the case when using Amazon Fulfilment Programs. Once registered you need to submit regular VAT returns adhering to the local rules, formats, and deadlines. 

Customers from different countries need to be charged different VAT rates, which means you need to implement a corresponding system in your online shop or Amazon storefront to charge the correct VAT rates. Lastly, the debt needs to be paid on time and most probably to several different tax authorities individually.

Not taking care of VAT compliance will lead to difficulties. If you forget to turn in VAT returns or submit faulty returns, you will most likely face fines or late fees. Furthermore, if you forget to register for VAT in time and don’t charge customers VAT, you are still subject to VAT nonetheless. In this case, you will not only face fines but will also need to pay VAT debts even though you didn’t charge VAT, therefore reducing your profit. 

That’s why VAT compliance is so important and that is where tools like hellotax come in. Specialised in VAT for E-Commerce and Amazon selling in Europe, the Amazon FBA accountant hellotax can take care of all your VAT duties – from registration to the submission of returns. 

The hellotax VAT compliance software monitors all your transactions, receives your tax letters, alarms you if a deadline is approaching, and automatically compiles reports. 

The hellotax team files your returns and can also assist you in forging ahead with the One-Stop-Shop, the EU’s alternative to multiple foreign VAT returns, which enables you to declare all intra-European cross-border sales in a combined return in your home country. 

What Is Privacy Compliance and Why Is It Important?

Another important topic is data protection and privacy – especially if you’re an Amazon seller active in the European Union. That’s because the General Data Protection Regulation (GDPR), which was introduced in the EU in 2016, places maybe the highest demands ever on companies when it comes to data security. 

Any company that receives personal data from European customers must ensure that the data is stored safely, only used for certain purposes, and diligently deleted. The data protected includes names and website usage data, as well as addresses, account information, and transaction data of customers on online platforms such as Amazon. 

Privacy compliance in the European Union might be the most important topic for Amazon sellers, though the most often overlooked, as the penalties imposed by the European Union for non-compliance with the General Data Protection Regulation are very high and might easily ruin a self-managed Amazon business. 

Help comes in the form of tools like privIQ, formerly GDPR365. Data security compliance tools such as these offer a complete overview of requirements and tips on how to implement them, opportunities to monitor data management processes and security measures, the possibility to assign tasks to individual employees or the data protection officer, alarms to access requests and data security violations, and more.

How Can I Implement Compliance Measures?

If you are managing your Amazon FBA business by yourself, you only have to research regulations or use tools like the ones presented above to trade and sell compliantly across the European Union. However, if you have employees or business partners, you need to make sure everybody is aware of compliance measures you have implemented or steps that have to be followed. 

There are a variety of digital learning tools and platforms on the market that serve to create compliance awareness in your business. They offer everything from online course libraries with videos on important topics such as GDPR, information security, and tax law and functions to create bespoke training content to ratings, questionnaires, surveys, and other tools to engage employees. 

While compliance tools serve as the first step toward legal, VAT, and privacy compliance for Amazon’s sellers in Europe, digital learning platforms can ensure that your whole team acts in conformity with regulations when scaling your Amazon shop. This way, penalties are avoided and you can continue concentrating on your core business while trading and selling legally. 

——

About the Author:

hellotax is a tech company that builds automated solutions for VAT compliance. Companies of every size use our software to ensure their VAT compliance while selling online in Europe.

Search volume increase and coverage for such a topic are not surprising amidst the COVID-19 pandemic. Many people accustomed to the traditional offline daily grind are now eyeing the digital landscape as an alternative income source. 

How Much Could You Earn From Amazon?

As Amazon continues to dominate the eCommerce industry, more and more entrepreneurial-minded individuals are enticed to make money on Amazon. Many online sellers view Amazon as a viable avenue to make money online. 

In 2020 alone, 62% of newbie Amazon sellers experienced a notable profit increase. According to Jungle Scout, most Amazon sellers make at least $12,000-$300,000 sales per year, translating to $1,000-$25,000 monthly sales. 

Therefore, substantiating the earning potential on Amazon, and that is just on product selling alone. 

How to Make Money on Amazon | Sellers and Non-Sellers 

If you are one of those opportunity online seekers diligently probing steps on how to make money on Amazon, here are 16 feasible ways to help start improving your cash flow this year.  

Amazon Selling Opportunities to try

When it comes to online selling, Amazon offers numerous opportunities for sellers. If you are more inclined to sell products online than offer your services to Amazon, then you should try the following Amazon selling activities:

• Amazon Private Label 

Amazon private label is a common approach for Amazon FBA sellers. In fact, it is estimated that more than 70% of sellers are using this business model to profit from Amazon. 

Many sellers utilize this method because the processes involved are newbie-friendly and easy to follow. To summarize the steps involved, (1) you will need to find a low-cost product, (2) apply your own brand and product improvements, and then (3) sell it on Amazon. 

Generic items come from third-party manufacturers that are widely available online. To access inexpensive and reliable third-party items for your Amazon inventory, you can check Alibaba.com.

You can make money on Amazon using the private label method by selling third-party manufactured items for higher prices after some improvements, including rebranding. 

Pro Tip: When checking for inventory items to use for Amazon private label, try starting with small & light products to reduce shipping costs. 

• Sell Wholesale on Amazon

Another reliable approach on how to make money on Amazon is selling wholesale goods either as an Amazon FBA or FBM seller. 

As its name would suggest, the wholesale approach involves purchasing branded products in bulk directly from suppliers or manufacturers. What makes wholesale on Amazon different from private label is that there is no need for rebranding because you sell other companies’ branded products as your inventory items.

Pro Tip: When selling wholesale, make sure that you do thorough research. Include the brand owner or your potential supplier in your research and not just the product you would like to sell. Know the specific requirements set by suppliers or brand owners. 

In order to be easily approved by brand owners, make them feel that you intend to order in bulk and would like to be a long-term partner. Prepare your wholesale license or otherwise known as reseller’s permit in some states.

• Amazon Retail Arbitrage

Retail arbitrage is a form of buy and sell. This approach involves scouting for clearance or discounted items in physical retail stores and reselling them for a higher price on Amazon. 

Selling arbitrage products is not a problem for sellers immersed in retail arbitrage. Arbitrageurs can leverage the brand power of their chosen items to influence consumers easily. 

Although Amazon has no definite guideline for retail arbitrage, sellers are still obliged to follow product and category brand restriction guidelines. Some of the presently gated Amazon categories include the following:

• Watches
• Fine Art
• Jewelry
• Gift Cards
• Collectible Coins 
• Major Appliances
• Video, DVD, & Blu-ray
• Streaming Media Players
• Automotive & Powersports

Pro Tip: To increase the profitability of Amazon retail arbitrage, always see to it that items you purchase from retail stores yield at least 50% profit. 

When checking brick-and-mortar stores, never miss their toys, stationery, electronics, and clearance sections for items you can easily flip online. Ideal sources for retail items are your usual choice shops, dollar stores, outlet malls, and liquidation shops. 

• Amazon Online Arbitrage

If you have been searching online about how to make money on Amazon FBA, then online arbitrage might be the right business model for you. It is one of the popularly used online selling methods because of its simplicity and convenience. 

Unlike retail arbitrage, online arbitrage does not require you to travel around and check physical stores for clearance and liquidations. All you need is a computer and internet connection to search online retail stores for potential inventory items. 

Since you are dealing with retailers, you are not forced to buy in bulk or large quantities. This somewhat lowers the risk and the needed capital to start your own Amazon online arbitrage business. 

Pro Tip: If the idea of making money online is still new to you and you would like to try online arbitrage, remember to have patience at all times. This will be handy, especially when you are overwhelmed with the numerous products listed online.

Try to scrutinize items before ordering them. Carefully read product descriptions and customer feedback since you cannot physically check the item’s quality. 

Make a test purchase to determine the quality of the item and your supplier’s fulfillment service. Some of the reliable sources for Amazon online arbitrage include but are not limited to Walmart, Sears, Target, and Best Buy. 

• Amazon Handmade

If you are an artisan and wondering how to make money on Amazon, then you should check-out Amazon Handmade. Handmade is an artisan-only community on Amazon dedicated to artists and crafters. You can make money on Amazon with your own work or DIY projects. 

The estimated average profit for the Amazon Handmade category is around 26%, which is relatively higher than other Amazon categories. Therefore, making it an ideal category to venture into if you want to make money online. 

Pro Tip: Amazon has set some limitations when it comes to Handmade. To avoid issues, be sure that the item you plan to create falls under these categories:

• Home
• Baby
• Artwork 
• Clothing
• Accessories 
• Toys & Games
• Pet Supplies
• Sporting Goods
• Shoes & Handbags
• Kitchen & Dining
• Jewelry & Watches
• Outdoor & Home Care
• Beauty & Personal Care
• Stationery & Party Supplies 

If the category is not listed above, it means that Amazon prohibits the sale of such items in their Handmade store. Just remember that anything you sell on Amazon Handmade must be hand-assembled or altered; all must be handmade and not mass-produced in a factory.  

• Amazon Merch

Another alternative to private label is Merch by Amazon or Amazon Merch. It is a good way to make money on Amazon without spending a large sum of cash. Amazon lets you sell your product designs without upfront costs. 

Amazon introduced this concept to help those content creators and artists sell merchandise through Amazon. Amazon Merch process involves uploading your design or artwork, adding product descriptions and color options.   

Once you have completed the initial steps, Amazon will create a product page. From production, shipping, and customer service, Amazon will take care of it. You will earn through royalties for product purchases.

Pro Tip: From T-shirts to coffee mug designs, you can take advantage of Amazon Merch. Just remember that your design image should be in a PNG format of 15” x 18” with 300 dpi.

Additionally, it would be best to order a sample before publishing your product for shoppers to see. This will allow you to check whether your design fits your product’s attributes.

• Amazon Direct Publishing

If you do not have the artistic skills to make money via Amazon Merch and are still pondering on how to make money on Amazon, perhaps you have the literary prowess to make money online via Amazon Kindle Direct Publishing.

You can either choose to publish an eBook or a printed book via Amazon KDP. When you publish your work on Amazon, you will receive royalties from your work.

The royalty rate for printed books as of September 14, 2021, is divided into two: 

• 60% for Standard Distribution
• 40% for Expanded Distribution

To calculate the royalty, Amazon is using this formula – royalty rate times the print book’s listing price, minus the printing costs. To illustrate, below is an example of how royalty is calculated for printed books:

Standard Distribution:

(60% Royalty Rate x List Price) – Printing Costs = Royalty

Ex. (0.60 x $14.99) – $4.45 = $4.54

Expanded Distribution:

(40% Royalty Rate x List Price) – Printing Costs = Royalty

Ex. (0.40 x $14.99) – $4.45 = $1.55

On the other hand, for eBooks, you can choose either Option A – 35% royalty or Option B – 70% royalty. 

If you choose Option A, the calculation would be 35% of the listed price without VAT. Option B would be 70% of the listed price, still without VAT but minus the delivery costs. Take note that the delivery cost may vary depending on the file size. 

Pro Tip: To increase the marketability of your book, you need to generate excitement among readers. You can engage the curiosity of shoppers by creating a compelling cover for your book.   

Along with stimulating a full-sized image for your cover and interesting thumbnail, you should also write an absorbing description of your book. You can also include video trailers to advertise your book. 

• Amazon Trade-In

As part of Amazon’s goal of building sustainable products to benefit the planet and its customers, the Amazon Trade-In program was introduced. If you are in the United States, you can take advantage of this program and receive an Amazon Gift Card in exchange for eligible items. 

Amazon-certified recyclers will process trade-in devices. Your used or old devices will be restored, resold, or recycled depending on their quality or condition.

Some of the commonly traded items include video games, cell phones, and Amazon devices. Go to the trade-in store and select the device category to receive a trade-in offer.  

With Amazon Trade-In, you sell your used items to Amazon in exchange for a gift card with monetary value or a pre-loaded amount. You can use this card to purchase items on Amazon. 

Pro Tip: Be sure to use high-quality packing materials when sending your trade-in items to Amazon. This will avoid damaging the item and the possibility of being rejected by Amazon.

When it comes to the limitation of trade-in orders, the maximum allowable value is $1800. If you have items that exceed such value, you should create multiple trade-in orders.

• Amazon Vendor Central

Although it is an invite-only platform, Vendor Central is another avenue for online entrepreneurs to make money on Amazon. With Vendor Central, you can sell your products to Amazon instead of directly selling products to consumers. In a sense, you become a supplier or bulk trader to the largest eCommerce company in the world. 

The Vendor Central platform is attractive among online entrepreneurs as Amazon is the primary customer. It means that products are likely to sell faster since they will be marketed and sold by Amazon. Additionally, the selling process is simplified with the Vendor Central platform. 

Typically, when online shoppers notice Amazon is the product seller, their hesitation in buying an item diminishes, for they see Amazon as a reliable and reputable brand. 

There is no need for Vendor Central traders to deal with the tasks and concerns Amazon sellers usually encounter, including shipping, customer services, product returns, and other Amazon seller fees. 

Pro Tip: 

You should ensure that your products are Amazon Prime eligible to increase your sales. It is worth noting that if your items are eligible for Amazon Prime, it would mean opening your business to a pool of more than 120 million US shoppers and Prime members with an average spending of $1,400 per year. 

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Amazon Non-Selling Activities You Can Try 

If you are not that confident with your Amazon selling skills and you are still searching online how to make money on Amazon without selling, you should explore these alternative income sources below:

• Amazon Flex

Amazon Flex helps you make money by delivering goods for Amazon. It is just like an Uber service, but rather you are working for Amazon.

If you have a 4-door, mid-sized sedan, or larger vehicle for package deliveries, you can start earning extra money. According to Amazon, most Flex drivers earn around $18 to $25 an hour. 

Another key feature of Amazon Flex is that you are not required to work the whole day. You can work only when you like to by reserving work blocks in advance to suit your availability. 

Pro Tip: 

To start your Amazon Flex journey, you should first download the application via the Apple Store or Google Play. Your smartphone should be an iPhone 6 or newer, and it should be running on iOS 13 or newer.

If you are using an Android smartphone, it should be running on Android 6.0 or newer with at least 2GB RAM, camera flash, SIM card, and GPS location service. 

• Amazon Virtual 

Amazon Virtual is another answer to your question on how to make money on Amazon without selling. This program is a work-from-home experience offered by Amazon. The good thing about these virtual location jobs is that they are not confined to the United States alone. 

Depending on their needs, Amazon opens positions in other countries. Currently, some of the locations with open positions include Great Britain, Italy, Japan, Costa Rica, and The Netherlands.

Some of the popular choices for job seekers include data entry and customer service. It is estimated that the salary for a representative is around $30,000 per year, or roughly about $16-18 per hour for a full-time representative.  

Pro Tip: In order to pass the interview for any Amazon virtual job opportunities, you should come prepared. The majority of the questions are behavioral-based, which means interviews include situations or challenges in the past and how you handled them.  

Recruiters highly suggest expressing your answers following the STAR format: Situation, Task, Action, Result. Practice answering some questions using this format to help improve your confidence.

• Amazon Affiliate Program 

Another way of making money online is via the affiliate program. You need to create content on your website or blog page and use Amazon’s link-building tools to direct audiences to Amazon product pages. For each qualifying purchase, you can earn commissions. 

If you are a YouTube content creator, you can also earn commissions every time you recommend items on your video. You can create shoppable collections of Amazon products grouped into kits via kit.co. You can post the link to your collection in your YouTube video description. 

Alternatively, you can also make money through your website or blog page with the help of this Amazon program. There is no need for you to be a webmaster or developer to take advantage of the Amazon Affiliate program tools and start making money on Amazon. 

All you’ll need to do is cut and paste links of desired products, categories, or banners that will be placed on your website. To check your earnings, you can easily inspect the earnings report from your Site Stripe Toolbar.

To give you an idea of the commission rates, here are the fixed standard commission income rates by category:  

• For Amazon Games: 20%.
• Physical Books, Kitchen, Automotive: 4.5%.
• For Luxury Beauty, Luxury Stores Beauty, Amazon Explore: t 10%.
• Digital Music, Physical Music, Handmade, Digital Video: 5%. 
• Amazon Fire Tablet Devices, Amazon Kindle Devices, Amazon Fashion Women’s, Men’s & Kids Private Label, Luxury Stores Fashion, Apparel, Amazon Cloud Cam Devices, Fire TV Edition Smart TVs, Amazon Fire TV Devices, Amazon Echo Devices, Ring Devices, Watches, Jewelry, Luggage, Shoes, and Handbags & Accessories: 4%.
• For PC, PC Components, DVD & Blu-Ray: t2.5%.
• For Televisions, Digital Video Games: 2%.
• For Amazon Fresh, Physical Video Games & Video Game Consoles, Grocery, Health & Personal Care: 1%.
• For Gift Cards; Wireless Service Plans; Alcoholic Beverages; Digital Kindle Products purchased as a subscription; Food prepared and delivered from a restaurant; Amazon Appstore, Prime Now, or Amazon Pay Places the Fixed Commission there is commission, while all other categories comes with 4% Fixed Commission Income Rates.

Pro Tip: For your blog content or vlog topics, always make sure you follow trending topics. Incorporate the proper use of keywords on your articles along with appropriate tags. 

Make your content highly interesting and informative to engage audiences. Encourage your readers or viewers to share your content online for increased viewership. More viewers or readers means more visits to Amazon stores. 

• Mechanical Turk

Amazon Mechanical Turk is another alternative on how to make money on Amazon without selling. MTurk is a crowdsourcing marketplace dedicated to individuals or businesses, known as requesters, who outsource their tasks to a dedicated workforce. 

You can be part of Amazon MTurk and start making money online even without a website or YouTube channel. Some of the commonly outsourced tasks include but are not limited to research, moderating content, data deduplication, processing, analysis, and so much more. 

However, other  MTurk tasks will not require any special set of skills. These tasks are typically small digital tasks. You can get paid after completing simple tasks while performing them during your spare time. 

Pro Tip: You should avoid penny tasks to generate significant cash flow. As much as possible, disregard low-paying hourly rates. 

Always maintain a high approval rating by following specific instructions. Although some tasks are very simple, never skip a single instruction provided. If you cannot follow a simple instruction, then your approval rating might decrease. 

• Amazon CamperForce

The Amazon CamperForce program is another avenue for making money online if you are not interested in Amazon FBA. Joining this program means working in Amazon’s sophisticated fulfillment centers. 

Some of the tasks include handling customer orders, such as picking, packing, and shipping. The tech giants boast of their technological and safe work environment. 

CamperForce associates normally receive around $15 per hour and $120.00 weekly for campground expenses. This is a good option if you are interested in seasonal employment. 

Pro Tip: This type of employment is ideal for mobile RVers. Amazon is particularly looking for individuals who have their own RV. Your availability and willingness to move from one camp to another would be highly favored. 

• Amazon Influencer Program

If you are an online influencer or content creator, you can take advantage of the Amazon Influencer Program. You will recommend Amazon products to your followers and earn commissions from each qualifying purchase.

To qualify for the Amazon Influencer Program, influencers should have a YouTube, Facebook, or Instagram account. Amazon will not immediately accept applicants, for the tech-giant will have to review the application for details such as the number of followers and  other engagement metrics. 

Pro Tip: To qualify for this program, you need to have an active social media account such as Facebook, YouTube, Instagram. Some of the metrics for evaluation include your number of followers and other engagement metrics. 

Bonus Income Source

• Promote Third-Party Seller Tools

Although this is not within the direct scope of Amazon, it still answers your query on how to make money on Amazon without selling. Promoting seller tools is a great opportunity to obtain freebies, money-saving discounts, or simply make money online. 

Some third-party seller tools offer commission, referral fees, or huge product discounts. All you need to do is refer their tools or services to Amazon sellers. 

Some of these Amazon seller tools and services include repricing softwares, product sourcing, product listing, price scanners, and feedback apps. 

Pro Tip: Before recommending any Amazon seller tool to your peers or sellers, be sure to do your due diligence about the software. This can help you answer some of the basic and on-the-spot questions of potential clients. 

• Amazon Consulting Business

When you have the knowledge or expertise to help Amazon sellers improve their business, some sellers start their own Amazon consulting services. You can offer unique strategies and fresh ideas to Amazon sellers to help them increase their sales or customer engagements.  

For example, if you have in-depth knowledge of the product listings function, you can offer your services to help sellers improve their product listings. An estimated fee for a listing specialist is around $25-200 per listing.

Pro Tip: When it comes to the eCommerce industry, be open to change and innovation. 

Listen to new ideas from other industry experts and learn from their novel concepts or approaches to help your consulting business stand out from your traditional competitors.

Essential Success Tip  

If you take the time to explore the entirety of Amazon’s ecosystem, you can surely find numerous avenues through which you can earn money. However, beyond monetary concern, you should always prioritize the quality of your products or services. 

Never forget that Amazon is the epitome of good customer service in the eCommerce industry. Hence, customer satisfaction should likewise be embedded in each of your business transactions.