How to sell to Amazon’s 300 million customers
Amazon is the leader in eCommerce. The statistics don’t lie. It is estimated that Amazon will be responsible for more than 40% of all eCommerce sales in the United States by 2021.
Amazon has changed the way we shop online. Amazon offered customers fast shipping, personalized recommendations and competitive pricing. Amazon is today the number one destination for product research (74% of all product searches begin on Amazon), and purchasing. It seems like a shop with endless aisles that sells everything one could want. You can shop online and purchase from trusted companies in seconds. Why would shoppers shop elsewhere?
Amazon’s reach makes it an ideal eCommerce growth platform. An online store that integrates with Amazon and other marketplaces like Wix eCommerce is a great option for growing or starting an eCommerce business. This option offers sellers the best of both: an online store for products and a huge global marketplace for expanding sales.
This blog post will cover everything you need to know for selling on Amazon.
- What it costs to sell
- Selling is easy with these 7 steps
- Selling disadvantages
- How Amazon and your online shop can work together
What does it cost to sell on Amazon.
Although you can technically sell on Amazon without any fees, there will be additional charges throughout the selling process.
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The company charges $0.99 per sale unless you are a professional seller and pay $39.99 per month. The company charges a referral fee, which varies depending on the product and price. Amazon’s referral fee information can be found here.
You can pay Amazon to use FBA (Fulfillment By Amazon) if you don’t wish to fulfill the orders.
Your costs will vary depending on the product you choose, the seller plan you select, fulfillment method chosen, and any additional fees.
Should I sell on Amazon?
It’s difficult to overlook the potential profit when selling on Amazon, despite the high fees.
This eCommerce giant has over 300 million customers. It also includes 200 million Amazon Prime members. This is a great opportunity for entrepreneurs who want to expand beyond their existing SEO and marketing strategies.
Amazon’s relationship to third-party sellers can also be mutually beneficial. Amazon’s relationship with third-party sellers is mutually beneficial. In 2020, Amazon generated approximately $80.5 million in third-party buyer services. Third-party seller products now account more than half the total units sold.
The profit promise on Amazon is attractive, so it’s easy to see why Amazon sellers love Amazon. Start small, scale slowly and do your research.
How can you sell products on Amazon?
In 7 simple steps, you can start selling on Amazon
- Market research
- Create an Amazon seller account
- Source products for sales
- Create optimized listings
- Manage inventory using FBA
- Keep track of customer reviews
- Create your Amazon marketing strategy
Are you ready to get started?
01. Do Amazon market research
Research the market before you decide on a product to promote. It’s important to find a niche that is both passionate and market-driven. These are some things you should look out for when choosing what to sell.
- Market saturation Find a niche in the market. You should look out for listings or products that have very few competitors, or none at all.
- Size When you need to store and ship your products, it’s a good idea to choose a small, lightweight item like a sunflower seed packet or a garden bench.
- Pricing Think about what you will need to buy the product, and how much it can be sold for. Higher-end products may be more difficult to purchase, but you will have a greater margin. A profit margin of between 10-30% is ideal. It’s important to remain competitive, since 9 out of 10 consumers use Amazon for price-checking products they have found elsewhere.
- Consistency Although a seasonal item might be in high demand right now, it could prove to be a problem later. You should start with items that can be used year round.
Researching what people are searching for can help you find products to sell. You can use tools like Google Adwords. SellerApp. SEOrush. Keyword Pro. These tools will help you identify the keywords people are searching for. You should know that Amazon places restrictions on certain categories and products. Some categories are available to all sellers. Others require a Professional seller account. Some require approval to sell. And some contain products that can’t be sold by third parties.
Before selling jewelry, music, electronic devices or watches, you may need approval. To view the complete list of approved categories, and how you can apply for approval, visit Seller Central. Each category has a different application process. However, you might be asked about the origin of your goods and your qualifications (if your claim is that you are a fine-art dealer), as well as regular performance checks.
Amazon Seller Tools
Amazon Seller Tools is a third-party software solution that helps you grow your Amazon business. They can make your store stand out in a competitive market.
These are some of the most sought-after tools for starting an Amazon business.
- Jungle Scout. A platform that allows Amazon sellers to find products to sell, source suppliers and optimize listings. It also helps them manage inventory and sales.
- Helium 10. Helium 10 offers a complete suite of software tools that will help you manage your Amazon business.
- SellerApp. This eCommerce analytics software app provides a range of tools that can be used to optimize and analyze your Amazon store’s sales, marketing, and operations.
All seller tools include pricing plans. Some even offer free trials. So, if you are ready to invest in scaling up your business, it is worth looking around and trying out a few before making a decision.
02. Register for your Amazon seller account
To sell anything on Amazon, you will need an Amazon seller’s account. Add your name and email address to create your account. Next, you will need to change your business type, location and name. You will need to have your tax information, bank account numbers, credit card details, and a government-issued identification.
Next, choose a seller plan. There are two ways to sell on Amazon.
- Individual seller program An “Individual Seller” will be charged $0.99 for each item sold. This option is not worth it if you plan to sell less than 40 products per month.
- Professional seller planFor sellers who sell more products, you’ll need to sign up for a “Professional Seller” account. You’ll pay $39.99 per month by Amazon regardless of how many products are sold.
Although it is tempting to pay per sale with the Individual plan, the Professional package offers many more benefits for the seller. These include advanced inventory management features, advertising tools and customized shipping options. Amazon sets shipping rates for individual sellers. These rates are determined by the product category and the shipping method chosen by the customer.
Amazon also charges sellers additional selling fees in addition to the seller plan fees. You will need to account for these fees in your financial statements. Here is a brief overview of additional fees.
The Category Referral fee. This fee is charged for every item that is sold. It varies depending on the product category. Amazon charges sellers a percentage of the total cost (including shipping costs, item price and gift-wrapping fees) or a minimum amount.
Fulfillment Fee. The fee per unit is based upon the cost of shipping your order and can vary depending on whether you ship products by yourself or using FBA.
Other expenses. Sellers may have to pay additional fees such as inventory storage fees and refund administration fees. You might also be charged fees for listing that aren’t selling within 12 months. You may also have to pay fees for optional programs that can help you grow your business such as advertising, FBA, and premium account services.
To help you decide what is best for your company, we recommend familiarizing yourself with Amazon’s fees and charges. After you have chosen your plan and filled in your information, your journey will be complete. Your decision is not final. You can change your seller plan at any moment.
03. Amazon: Source products
After you have done your research and decided on a product you want to sell, you will need to find a manufacturer or supplier.
To reach different manufacturers, you can use directories such as Maker’s Row or ThomasNet. You can also search AliExpress for suppliers. You can shop around until you find the supplier or manufacturer that offers the best price for the quantity of inventory you need.
Look for suppliers that have a minimum order quantity (MOQ). This will make it easier to find the right supplier. At this point, make sure to not overspend on inventory. You may need to take some time to sell everything while you figure out the technical aspects of selling online.
Do your research into these manufacturers before committing–especially if they are overseas. If products are not delivered on time, it can impact your brand image. Ask for samples, gather background information and ask for recommendations. You must do your research to ensure that your products meet all specifications. They should be proudly supported by you.
Learn more about how to source your products from our finding suppliers .
04. Create optimized Amazon listings
An Amazon listing is the page that lists every item you sell on Amazon. It is the page where customers can search for and purchase your products.
You have two options when listing a product on Amazon. You can either use an existing listing or create one. It all depends on the uniqueness of your product or if it is an existing product.
Double-check your product against any listing that already has it. Customers shouldn’t order from you only to receive the wrong product. They won’t buy from you again.
A UPC code is required to create listings on Amazon for a completely new product. This code is similar to a barcode. It gives your product an unique number that you can use to reference it. It will be included in your listing when you start it.
Take a look at the keywords that you identified during market research. Then, make sure you use these keywords to optimize your listings to ensure customers can find your products easily and understand what they are buying.
These are the most important things to consider when optimizing your listing for SEO.
This is how customers will find your product. So make sure you carefully consider what you write here.
- Amazon won’t cut your text if it is less than 200 characters. Amazon Seller Guidelines recommend that titles not exceed 60 characters
- Include the most important features and keywords about your product. Think about what your customers are looking for in a product such as size, color and compatibility.
- Use search terms that are relevant to each product’s discovery.
- You should aim for high-volume keywords to bring the right buyers to your listing. However, don’t overload it with searchable terms.
- Make sure you capitalize words so your listings look professional.
Customers are very important and product photography can make or break your sales.
- Amazon product images should measure 1,000 pixels in width and 500 pixels in height
- There are up to nine images you can take. To capture how your product looks up close and in person, try taking photos from different angles and settings. You should give the product context to allow shoppers to easily see its size, color and other details. Hire a professional product photographer to enhance your imagery. Your product may be competing against the work of giants in the industry with their entire creative departments. For quick workarounds, you can turn to quick-service agencies such as Squareshot.
- Your items should be photographed against a solid or white background. Do not let background distractions distract from the product. You want the product to be the focus of the image.
- Soft lighting is best to make sure the product is clearly visible in all its details.
More tips? Check out our guide product photos .
Your key features can be written in 1,000 characters, and your product description can be written in 2,000 characters.
- To quickly provide customers with a product overview, use bullet points on the product detail page.
- Focus your attention on the product. This includes size, color, materials and care instructions.
- To help shoppers understand how this product can change their lives, you can use the product description. What is its value? What makes it different? What can it do to improve upon existing, high-demand products?
- Customers can find you products by using keywords and search terms. Use synonyms, alternate names and spelling variations.
Your product will be officially available for sale once you have published your Amazon listings.
The buy box
Amazon sellers love the Buy Box, or Featured Deal. This convenient box can be found on the right-hand side of product details pages and has been proven to increase sales. In just a few steps, shoppers can add the product to their cart and then checkout. You must meet certain eligibility requirements to be eligible to win a share in the Buy Box for a specific product. To be eligible for the Buy Box, you will need to have a professional selling account, strong performance metrics and high stock volumes. You will also need to compete with other sellers for the same item. Pricing is important if your offer is to be featured. Find out more about eligibility for a Buy Box here.
Top tip –Approved Professional Sellers can optimize their product listings with Amazon Enhanced Brand Content (or A+ Content), which is an attractive layout of text, visuals, and images designed to increase conversion rates.
05. Use FBA to manage your inventory
You will need to locate a place where you can store, manage, and ship your inventory.
You can store small quantities of your products in your garage, or rent storage space if you only have a few. It will be more difficult to track your products and fulfill orders once you have more inventory.
Fulfilled By merchant
You will be responsible for shipping costs if you fulfill orders by yourself. Amazon’s shipping rates depend on the product category and shipping service chosen by the customer. The seller receives a shipping credit at the rate that was set. You can choose your shipping rate for Professional plans (except for DVDs, books, and music) and Amazon will credit you with the shipping rate. You will need to use Amazon’s shipping rates for any Individual plan. You might be able to make a profit by including these extra costs in the price of your product.
Fulfillment from Amazon
FBA can help you save time and effort in order to manage inventory and fulfill orders.
Fulfillment by Amazon (FBA) allows you to ship your merchandise directly to Amazon fulfillment centers. They will store and manage all your inventory as well as fulfill orders. You just need to keep track of the stock and ensure there is enough.
FBA products can be shipped two days after purchase for Amazon Prime members.
This service will cost you money so ensure that your sales are high enough. Amazon’s FBA Fees are worth looking at if you’re considering this option.
Although you don’t necessarily need it when you first start selling on Amazon, this option is worth considering if your business grows.
06. Keep track of customer reviews
Customer reviews on Amazon or any other marketplace can make or break a business.
Review are often the deciding factor in a sale’s success or failure. 93% of consumers believe that online reviews have influenced their purchasing decisions. Most customers read reviews before making a purchase to ensure they aren’t buying a scam. Studies show that 4 out 5 customers have changed their mind about purchasing a product after reading negative reviews online.
Amazon encourages customers review products to help them make better, informed purchasing decisions. Sellers can increase their product rating and get a higher ranking in search results.
Amazon will automatically email buyers to request product reviews. Although technically, you don’t need to do anything. However, it is a good idea to familiarize yourself with Amazon’s community guidelines and policies. There are many dos and don’ts in regards to getting reviews. Although you can’t control whether your review is a 5-star or 1-star, reviewers are subjected to strict guidelines.
Here are some ways to get more reviews.
- Participate in Amazon’s Early Reviewer Program. This program helps new sellers get reviews on products with few reviews.
- Amazon’s Vine Program is for sellers with Amazon-registered products. A seller must submit 30 units of inventory to the Vine program. Vine reviewers are given the product free of charge, can test it and then write a review.
- You can manually request a review from Seller Central by clicking the “Request A Review” button. You can request reviews for every order within 4 to 30 days after purchase.
- Include a card asking for a review with your packaging. This personal touch encourages customers to leave feedback.
- Set up automated emails to request product reviews if you sell online via an eCommerce website. If the customer purchases a product from Amazon and it is listed on your website, they can review it on Amazon.
One or two negative reviews can make a big difference in your credibility and drive customers away from your product. Here are some ways to reduce negative reviews
- Avoid problems with the buyer’s funnel.
- Respond quickly. Respond quickly and professionally to all questions, concerns, or issues.
- You can respond to customer reviews by going to the product detail page. If they have any questions, you can ask them to contact your Buyer-Seller Messaging Service.
- You can reach out to customers to offer compensation such as a partial or full refund or a replacement item if you get a negative review.
- You can track your performance in Amazon’s Seller Central.
- Accept feedback and use it for your business improvement. You might consider making changes to those areas of your business that are constantly receiving negative feedback.
07. Your Amazon marketing strategy
There are many ways to increase traffic to your listing and make sales. These are the most popular:
Amazon SEO is a great way to help customers find your products naturally. However, Amazon advertising can make it easier for you to get your products found on Amazon.
Pay-per-click (PPC) ads can be created for your products. These ads should target the keywords that your target audience is searching. These sponsored ads are recommended products and appear in search results. There are three types available for Amazon PPC ads: Sponsored Products and Sponsored Brands.
Here are the steps to create Amazon PPC ads.
- Click on “Advertising” from your Amazon Seller Central account and choose “Campaign Manager.”
- Select your campaign type and create a campaign title. Set your daily budget and choose a time frame for your campaign.
- You can choose whether to use automated targeting or manually target keywords. Amazon will use your product listing to determine which keywords you want to target.
- Advertise with your product listings
- Bid for each keyword. Be mindful of your daily budget. You can limit the number of clicks that you receive each day if you bid too high.
- Select the keywords you want to target.
- Click “Save and Finish”.
Use social media
To increase awareness for your eCommerce store, choose the right social media channels to reach your target audience. Engaging content will bring your products to life, and drive customers to your Amazon store or product listings. Social influencers can help you promote your products through an Amazon affiliate link. In return, they will earn a commission.
Your channels can be used to communicate with customers directly and build trust through timely answers.
Amazon offers a range of badges to assist shoppers in making a purchase decision. These badges (or ribbons) are only available to Professional sellers. They can be displayed in the search engine results page or product listings. While some require more effort and time to obtain, all can have a positive impact on your store’s sales and traffic.
Amazon’s choice:Sellers cannot apply or buy this sought-after badge. It is an algorithm-chosen “best choice” that streamlines the customer journey. You must be Prime eligible and have high-quality, competitively-priced products in stock that are ready to ship.
Coupons and Promotions:Customers enjoy the thrill of a deal. Incentives such as free shipping, discounts or seasonal promotions can grab their attention in a busy marketplace. Although promo codes and percentage discounts can be attractive and are free to use, they will only be visible in your product listing. Amazon charges a fee to redeem coupon codes. Coupon codes can be found in the SERP. You’ll have to calculate the cost of price promotions for your business.
Limited Time Deals or Deal of the Day:These sales are short-term and encourage shoppers to grab the lowest prices while stock lasts. Sellers must pay a fee in order to be included on the Deals page. Despite this, your campaign’s success is not guaranteed. You will be charged regardless.
Daughter’s List is a Unicorn-themed children’s shop. It cleverly employs some of these sales tactics to give cost-conscious shoppers perceived value. This includes a discount on each product’s original List price as well as additional savings coupons that range from 5% to 25%. Amazon Choice has been awarded to some products for their competitive pricing strategy and well-written product descriptions.
Shoppers love discounts, no matter how small. They are easily swayed to shop at Amazon stores. The Classic Light Bulb’s rivals used a two-pronged marketing strategy (see above image): a sponsored advertisement to boost their visibility among undecided users and a coupon for 5% off, which helped increase conversions. Advertising, pricing, and promotions are key to winning sales in situations like this, especially when they involve saturated categories.
How Amazon can work with your online store
You don’t have to choose between selling on your own website or using Amazon’s powerful marketplace. Both can be used to your advantage (and increase your bottom line) It’s easy to combine the two. You can either sell Amazon products from your website or your own products through Amazon in just a few clicks.
For many reasons, a multichannel sales strategy can be advantageous:
- It’s not enough to bring in customers through one sales channel.
- Amazon’s loyal international shoppers increase your chances of being discovered.
- Amazon advertising is a great way to advertise your products.
- Online stores can give your brand credibility. Your website might be searched by Amazon customers browsing for information.
Our statistics show that even if your online store is already a success, it’s much more productive to sell on other marketplaces.
Wix stores can increase their revenues by as much as 12% by adding an additional sales channel.
The disadvantages of selling on Amazon
There are disadvantages to selling on Amazon just like there are benefits. Here is a quick overview of the things you can expect.
Fees are a necessity if you plan to sell on Amazon. We have already provided a summary of Amazon seller fees. For some sellers, these can seem like an enormous barrier to their profits. To accurately forecast your margins, and make a healthy profit, you’ll need financial savvy.
Access your data
You, as an Amazon seller, have the right to give up control of your sales data and data. Amazon has access to your sales information, including what you’re selling and what is most profitable. It also knows who your suppliers are. They may even use your data to their advantage and become one of your rivals, it is not surprising.
There is fierce competition when you have such a large market. It might be difficult to stand out from thousands of sellers unless your niche is very special. But don’t let that discourage you. Selling on Amazon is a long-term endeavor. Don’t expect to be a millionaire overnight.
Many conditions are required for selling on Amazon. There are strict guidelines about what you can sell and how you communicate with customers. This is especially true when it comes to responding to reviews.
It’s prohibited to promote your eCommerce website to customers who have purchased products from Amazon . You must follow the rules if you want to be an Amazon seller and grow. Otherwise, they can close your account.
Amazon is a platform that is constantly changing. To avoid being penalized, you will need to keep up to date on any changes. Sellers can sometimes feel overwhelmed, confused, and frustrated by the changes, but it is important to comply if you want Amazon to remain a viable platform.
Integrating an online store with Amazon
Integrating your Amazon eCommerce store with Amazon gives you the best of both worlds.
Classic lighting bulb is a Wix store that has a strong Amazon integration. The store sells electrical and lighting supplies and has an Amazon positive rating of 85% with more than 280 reviews. It also advertises its omnichannel retail integrations at the footer on its website homepage.
Qualisis a Wix store that integrates with Amazon. It sells products from multiple categories such as pet, home, and lifestyle.
Qualis believes that Amazon is a great place to sell, and it displays the “Proud Amazon seller” status on its second fold. However, the company also sells directly through its online store. The Qualis website provides information about the Colorado-based company to Amazon customers. Amazon offers customers reviews. The Amazon website and Amazon page share a similar design–clean layouts, high quality imagery, and easy-to-navigate categories options–creating a synergy between the two marketplaces.
Wix allows you to create an online store and connect it with Professional seller Amazon accounts. This will allow you to manage all your inventory, listings, and orders from one location.
Once you have started making sales, you will be able to track them through your dashboard’s store orders tab. To see which orders came from Amazon, filter your orders by sales channel.
This video will show you how to link your Wix online shop with Amazon.
Amazon’s huge reach is enormous but doesn’t guarantee sales.
Strong brand management, financial management and continuous optimization across listings and PPC are key to selling on Amazon. You will need to be strategic and attentive to details in order to stand out in such a competitive marketplace.