Do you have excess inventory? Are you looking for a way to sell your product directly to customers instead of wholesaling it to retailers? Do you want to monetize your hobby or love of Amazon as a bookseller?
If so, selling on Amazon might be the right opportunity for you. Selling on Amazon is a win-win situation since they will handle the logistics and customer service while you focus on creating products and marketing them to their platform.
This article will explore how selling on Amazon works, what types of products they allow, and available seller options.
What you should know before selling on Amazon
There are a lot of things you need to consider before you start selling on Amazon. Before making your first sale, you must understand how the marketplace works and your goals.
You must be prepared for the competition and the amount of work you need to succeed. Before you start selling on Amazon, ensure you have done your research and know what you are getting yourself into.
Here are a few things you need to know before selling on Amazon.
Competitor research: Before selling on Amazon, you need to understand your competitor’s strategy, the type of products they sell, and their strengths and weaknesses. The best way to do this is by going undercover and researching their listings and reviews. This will give you a good idea of what is working and what isn’t and help you stay ahead of the competition.
Product research: You need to understand the type of product you are selling and how it is trending. Use the data from your competitor research to help you make better decisions regarding the kind of products you sell and how you position them.
Demand: Make sure the product you want to sell has enough demand on Amazon. There should be enough demand for customers to sell the product. But, there should be enough supply for you to source the product and profit from it.
Competition: You need to understand how your competition is marketing their products and how you can beat them with better marketing. You can do this by checking out the top-selling products and seeing what strategies they are using.
The Pros of Selling on Amazon
There are many reasons why you should sell on Amazon. Here are the top 5 benefits of selling on Amazon:
Huge traffic: Amazon sees millions of visitors every single month. This is a desirable proposition for any seller. Customers are on this platform daily and actively looking for new products to buy. You will get a lot of organic traffic from this platform; the best part is that it is targeted. These customers are probably looking for products like yours, and if you have the right strategy, you can easily convert these customers into sales.
Strong brand equity: Amazon has been in business for over two decades, which means they have a compelling brand that most customers trust. This is especially true in the United States and in a few other countries. Your business will benefit from its brand strength if you sell on Amazon. Your potential customers will be able-much more quickly than if you sell on your site-to trust that you are a trustworthy seller and that they will be able to get what they pay for.
Large selection: Amazon has a wide variety of products on its platform. You can find just about everything you want or need on Amazon. Whether you are selling a physical product or an online course, you will be able to find a wide range of products to sell. This means you can increase the number of products you sell and make more money.
Lower start-up costs: Unlike starting your site, selling on Amazon is much cheaper. You don’t need to worry about designing your website, building a brand, or getting traffic since you will get traffic from Amazon. You don’t need to worry about hosting your site or paying for a domain name. You can focus on selling your products and making more money.
How to Sell on Amazon: Step-by-step guide
When you decide to sell on Amazon, you must take the time to do things right. The last thing you want to do is jump in without knowing what you are doing and end up costing yourself time, money, and reputation.
Follow this step-by-step guide to ensure you are prepared when you start selling on Amazon.
Assess your situation: Before selling on Amazon, consider your situation carefully. Ask yourself these questions. Are you currently in business, or do you have excess inventory? Where will you store your inventory? Do you have enough money to buy inventory upfront? Make sure you are ready for the amount of work you will have to put in.
Get your seller account: The first thing you need to do is get your seller account. There are two types of seller accounts – professional and individual. The professional account is for established brands that sell on Amazon regularly or people that want to sell more than 40 items per month. The individual account is for people who wish to make a few sales from time to time.
Do your research: Once your account is ready, you need to do some research. Search for the type of product you want to sell, find out what the demand is, and see what other sellers are doing. While you can do all this on Amazon, you can also use a tool like Sellerfy to analyze data and make better decisions.
Create your product listing: It is time to create your product listing after researching. The listing is what potential customers see when they search for a product on Amazon and the first thing they use to decide if they want to buy it or not. Please ensure the title, description, and images are appealing and convincing enough to make them click the buy button.
Things to consider before selling on Amazon
Before you jump into the Amazon selling game, you should consider a few things.
- Make sure you are ready for the amount of work that comes with selling on Amazon.
- You might need to hire employees or outsource some processes such as warehousing and shipping if you sell many products.
- Make sure the product you want to sell is allowed on Amazon. You don’t want to spend time, effort, and money on a product that doesn’t fit Amazon’s requirements.
- Make sure you can profit from selling on Amazon. You don’t want to sell something you can’t make money on, so you need to find a product that has enough demand, that you can quickly source, and that you can sell at a profit.
Types of products allowed on Amazon to sell
We already mentioned that you need to ensure the product you want to sell is allowed on Amazon. There are a few types of products that are allowed on Amazon. Here are the ones you should look for:
Consumable goods: Products that are used up over a short period of time are called consumable goods. These products are highly in demand since people need them daily like toothpaste, deodorant, etc.
Prime-worthy products: Amazon has two subscription services-Prime and Prime Student. These two services offer free two-day shipping and other benefits to subscribers. You can only list products on Amazon that are Prime-worthy. A product is Prime-worthy if it is shipped and sold by Amazon.
Lightweight and small products: Amazon ships millions of products worldwide. They have a network of fulfillment centers worldwide where they store and ship products. You can only list products that are lightweight and small in size.
Seller Options – Individual vs. Professional Seller
There are two types of sellers on Amazon: individual and professional.
An individual seller account is for occasional sellers who want to make a few sales from time to time. A professional seller account is for established brands who want to sell more than 40 items per month.
When you sign up as an individual seller, you get access to essential tools and services. You can access Seller Central to manage your account, for example, and use FBA for a small fee.
You get access to advanced tools and services if you sign up as a professional seller. For example, you can access Seller Central and Pro Central and use the Fulfillment by Amazon (FBA) service for free.
Amazon is an excellent marketplace to sell your products. It is easy to set up and maintain and can provide a steady income stream. There is a lot of competition on Amazon, so you must ensure you are doing everything right.
Make sure you are researching your competitors, have a robust product listing, and are ready to put in a lot of work. If you follow these tips, you will be well on your way to making money on Amazon.