Through this service, the seller can use this platform’s powerful distribution network and get the customer base to make their business dream come true.
Have you decided to start selling your products on Amazon? But wondering how to sell on amazon?
If yes, you have landed on the right page; we will answer the question ” how you can start sell on Amazon?”. It doesn’t make any difference if you are starting from scratch as Amazon is not difficult to start with as most people think.
Let’s discuss some initial steps about how to sell on amazon that you need to take:
- Learn the Amazon rules of selling, how to sell on Amazon.
- Look for the sources from where you can get the products.
- Register your Amazon seller account.
- Get ready with the products you want to sell.
- Create your product listing.
- Now there are two choices either you can send your products to FBA warehouse or fulfill orders yourself, which is explained below in detail.
How to Find a Product to Sell On Amazon
There are three popular ways to find the product on Amazon.
- Having your own manufactured products
- Retail arbitrage
- Wholesale
These strategies are for the new items to sell on Amazon. You can also sell used items on Amazon. Selling used items is also a great way to make money.
On your journey to find the perfect strategy about how to sell on amazon, you may find people who will advise you to start with wholesale or private labelling.
Wholesaling is something to collaborating with other brands to get bulk orders of their products to sell on Amazon.
Private labelling is something that involves product manufacturing with your own brand name.
The problem with these strategies is they need a lot of experience and capital to start.
So, I suggest starting with retail arbitrage and work until you will not get enough experience and capital.
How to Go Along With Retail Arbitrage
Before you find an answer to the question how to sell on amazon effectively, you need to remember that if you don’t have much to invest initially, retail arbitrage is the best option to make a start, and it’s a good deal for money-making.
You need to install the seller app we discussed above. After installing the product, go to the local big-box store in your area.
Once you get into the store, look for the clearance section:
Once you are in the walkway, you will need to open the Amazon seller app to scan the barcode of the products in the clearance aisle. In the coming section, I have explained how you can get Amazon Seller App.
After scanning a product, you will see:
List Your Products and Ship Them to FBA Warehouse
Your next step is to list your products and send them to the warehouse.
At first, you might think it’s difficult, but later on, you will get used to it.
How to Set Up Amazon Seller Account
To start selling on Amazon, you need to have a seller account, and it’s totally different from the one you already have, a buyer account.
Step 1: Visit http://services.amazon.com/
Click on this link, and it will take you to the page which looks like the image below:
You need to click the start selling button to register your professional account on Amazon.
If you scroll down the page you will see this option:
Sign up to become an individual seller
Step 2: now decide you want to proceed with an individual account or professional
Both of these accounts are quite different. Professional account cost you $39.99 while the individual account is free. Both options involve some additional charges; the individual account charges $0.99 per item when your items sell that is not included in the professional plan.
Selling more than 40 products a month automatically makes professional account the best deal.
The other major difference is you need a professional account to get a ‘buy box’.
If you ever purchase anything from the Amazon, you can have an idea of how vital the buy box is to sellers.
The professional account also gives the benefit to sell additional categories and products because there are many categories that are restricted to new sellers until you apply.
You can learn more about which categories need approval by visiting this page on Amazon.
Step 3: fill the account set-up forms:
The first page looks like an image below.
Can you see the legal name box at the bottom of the image?
Most of the people think they need LLC or some other legal details to fill this box. You can simply go with your own name here.
There is a checkbox that says “I have read and accepted the terms and conditions of the Amazon Services Business Solutions Agreement.”
I recommend you not to tick it until you do not go through the whole document I know it’s quite boring, but it will help you out.
Next, you will be asked for your address, display name, and phone number.
They will also ask for the website, and you can leave it blank.
INFORMATION REGARDING YOUR BUSINESS
After this, you need to fill bank account and tax information and after that, You‘ll officially have an Amazon selling account.
Selling on Amazon through FBA (Fulfillment by Amazon)
FBA is the best option for you to fulfill your products as it takes away all heavy lifting i.e fulfillment of the orders. So, let’s have a look, how Amazon FBA works.
Your part:
You first need to find the best product, list the product for sale, prepare products for shipment. The last step is to pack your product, send it to Amazon warehouse, which Amazon allocates you at the time of shipment creation. If you have your own barcodes on the products, then nothing is required if you don’t have its required to paste the barcodes provided by Amazon while creation of shipment.
Steps Amazon will take:
Amazon takes the following steps when the item arrives at the warehouse:
- It will check if you have sent the correct item in the accurate condition.
- Then listings will be activated if your account is verified. It means your name will appear on the product detail page, and it’s available for sale.
- Amazon keeps the product in the warehouse until a customer buys it.
- When a customer purchases the product, Amazon’s team membership ships on your behalf.
- Your share from the sale will be transferred to your seller account by Amazon.
- You will get an email when a shipment is sent out.
- After every two weeks, you will get a deposit to your bank account.
Benefits of FBA
The most significant benefit your customer will get is free shipment on your behalf, if a customer is a Prime member or if the order value is more than or equal to $25.
Prime delivery means fast, free, and easiest ways to get millions of products on your terms. Unlimited free two-day shipping will be provided.
Amazon is also providing some extra benefits like one day, same-day shipping on specific items and selected cities.
When you sell through FBA, your products will be available for all these prime shipping benefits.
Fast shipping times always attracts the buyer, and buyers prefer to purchase products which have prime tag.
Another benefit is, you can ship your inventory to Amazon in bulk, and they handle the products and order and delivery to each customer.
Fulfilling Your Orders By Yourself (merchant fulfilled)
As we discussed, there are two options when you are selling on Amazon. One is Amazon FBA, other we are going to discuss now:
The other option is ‘merchant fulfilled’ the products you sell on Amazon. It means you will keep the products with you at your location, and when an order comes, you will ship the product directly to the customer.
There are times when you can use it, but for now, 99% of the time using FBA will be the best option.
So, merchant fulfilling can be the option if you are selling bulky items which incurs storage fee, but we will focus on FBA in our post.
Download Amazon Seller App
After setting up an account, I would highly recommend you to download Amazon seller App.
This app is totally free; it is provided by the Amazon; it provides all the products related details like selling price and fees.
To find a product, you can search for it by name or UPC, or you can even use the phone camera to scan the barcode of the product. Then automatically app will show all the relevant details of this product.
If you don’t have a seller account and want to check the fee of Amazon for an item, you could use the Fulfillment by Amazon Revenue Calculator to get the fee details on any item.
If you go to the FBA revenue calculator, you can look for any product you want to sell on Amazon. You need to enter the price of the product, how much it will cost you to ship to Amazon, and how much the product costs you.
You can check all the expenses through a calculator, and total profit you can expect from the product.
Now we have a tool that can help us to calculate the profit.
Here are a few pro tips:
- If selling on Amazon sounds useful to you, give it a shot without any further delays
- Test the retail arbitrage strategies that are discussed in this post, it’s not difficult to give it a few hours, and you will know how to respond.
- Try it out this week
- Set realistic expectations, selling on Amazon using retail arbitrage might take some time on the front end. But it will definitely pay you off.
I hope this post cover most of your questions.
If there is something which you still want to ask let us know by posting a comment below or email us at contact@wordpress-937472-3258050.cloudwaysapps.com