Things to Know Before Selling on Amazon in 2020admin
If you want to go with the times and give a boost to your business then it becomes necessary that you should start selling online. It will suit both newcomers and the people who own established business.
When it comes to selling online there are multiple choices available but nobody wants to risk their money and thus they look for a secure and most popular option. If anyone wants to go with the notion, what can be better than making money on Amazon with all the positives?
Amazon is a known name in every home and the first preference of everyone and earns in billions every year. Even if you are earning infractions then also it would be amazing for you. You can also have an Amazon seller account manager that helps them grow your Amazon sales. There are certain perks of working with Amazon as they are always there to handle even the hardest part of online business marketing. Perks of selling on Amazon are:
There are many reasons that make Amazon the hot platform to sell online.
Amazon is the most loved and preferred platform when people want to buy something online. It really costs you peanuts to sell on Amazon as it is you do not need any real marketing to sell.
- Brand Recognition:
Everyone wants to buy from an authentic place and the trust that Amazon built among its buyers is incredible. So, a brand that is recognized is the preference of most of the buyers.
- You do not need a website:
It is not necessary to have a website if you want to sell your products on Amazon. You can directly start selling on Amazon without worrying about having a website.
- Fraud Protection:
Amazon takes care of the payments and saves people from fraud as it has very strict policies. With every seller under scrutiny, you will have less headache and nothing to worry about.
The ultimate way to sell on Amazon
Step 1: Find a product to sell
The first step in selling a product online is to shortlist the product you would like to sell online. So, first of all, it becomes important to understand what you would like to sell or where to source it. In this case either you will manufacture the product or you will find one for yourself from whom you can purchase it. There are many things you need to consider when you choose to sell on Amazon.
- Price: You will get an abundance of products on amazon which ranges from the lowest to the highest price. This leads the impulse buyers to make instant purchases. Apart from that, the products with higher prices have higher profit margins.
- Weight: The weight is important as it is directly proportional to shipping cost. A product with higher weight will have costly shipping charges and the one which is lighter will cost less due to cheap shipping cost.
- Competition: Try to sell the products which have lesser competitors. If there are similar products with good reviews it will be tough for you to breakthrough.
- Durable: Because of the great return policy which favors its customers a lot it will become tougher for you if you are selling products that do not have good durability and breaks easily.
Sourcing the product:
There are three options available when it comes to sourcing the products:
- Handmade Products: You can manufacture your products yourself if you want to scale up as it is really hard to scale them.
- Manufacturing products locally: You can opt for manufacturing pour products locally. This can also help you with good profits as you can go for a greater profit margin.
- Source it from overseas: You can also get your products from overseas from a wholesaler or a private label as well. It lets you add more variety to your selling lot.
Step 2: Sign-up for an Amazon seller account
It is mandatory to set up a seller account before selling on Amazon. There are two kinds of selling plans you can opt for so you can sign up for either an individual or professional selling plan.
Individual plan: It is for people who sell less than forty products a month. In this plan, Amazon charges a small fee from the seller of each sale as he sells a few products every month. This is why you can start by selling handmade products.
Professional Plan: In the professional plan you need to pay a monthly fee where you sell more and accordingly pay less.
To sign up for an Amazon account you need to have the name of your business, your contact number and your address, a credit card is a must for billing, a phone number that you have access to, your tax identity information, and your bank information. So just get set ready and go.
Step 3: list your products
If you are an individual seller then you will have to list your products on the market place. There you will do it one at a time. If you are a professional then you just need to list your product in the batch. These products fall into two categories: firstly, products already listed in the Amazon marketplace and secondly, new products which only you are selling.
If you are listing products that are new then you need to fill details like:
- Product name
- Name of the brand
- UPC or EAN
- SKU number
This may be time-consuming but is a necessary step to complete the whole process.
Step 4: Manage inventory
It is an important step to manage inventory. If you are not aware of what’s falling short in your inventory then you may miss deliveries and that is not good for your reputation as well. As soon as you set up your seller’s account you can manage your inventory easily as there is an entire section for inventory management. Managing your inventory can save you from embarrassing situations.
Step 5: Fulfill your orders
- Fulfill your orders on your own: It is more advisable to yourself ship the products if you are selling only a few items on Amazon. It can save you from fulfillment fees.
- Fulfillment by Amazon: It includes taking care of the shipping process by Amazon when your manufacturer ships directly to Amazon. There are certain benefits that you can avail if you are opting for this option. These include that it is highly reliable, the FBA sellers get preference, they have higher search result rankings and leads to higher conversion rates due to prime shipping but all this includes seller’s fees also.
- 3. Third-party fulfillment center: You can avail of the services of third party fulfillment centers as well if you sell on Amazon as well as on other sites.
Step 6: Marketing
Although there are millions of visitors every month on Amazon, that can never give you the volume of sale you expect. For this, you need to keep your marketing game up. So, if you get the top position on the search results and product categories. Some important parts of Amazon SEO are:
- Product description and title
- Existing sales and reviews
There are a certain set of rules set by Amazon that you need to abide by if you do not want that your Amazon seller account gets suspended as they are very strict with their policies.