Amazon is a huge company. It has 200 million unique visitors on a monthly basis who choose to shop there over anywhere else. In 2019, they stated that small and medium-sized firms sold approximately 4,000 goods every minute. Given these figures, it is evident that you should at the very least consider listing products on the platform and become an Amazon seller.
It’s a really appealing sales, marketing, and distribution channel for online retailers. The results obtained by an individual store, however, are dependent on a variety of circumstances, and what works for one seller may not necessarily work for another.
Among the most significant benefits, you have as an online entrepreneur is that you do not have to work everything out for yourself. In the current age, there are numerous tools and resources available to help you in the entrepreneurship process. There are also community forums where you can ask questions, share ideas, hear experiences, and see examples of successful e-commerce enterprises to look up to.
How to become an Amazon Seller
Selling on Amazon offers a vastly profitable opportunity. It is a great choice for you whether you want to become your own boss or you’d like to start a lucrative side hustle. However, contrary to what some digital marketers would have you believe, it is not a simple money-making plan. You need a good budget, a lot of research and hard work, and dedication to succeed. Here are the steps to becoming a seller on Amazon.
1. Find products to sell
The first thing you need to do is choose the products that you want to sell. Among the most crucial responsibilities in this whole process is the product and market research you undertake at this early stage.
Your project’s success or failure will be determined by the data you collect and the business choices you make based on that data. Identifying good prospects entails far more than simply replicating the successes of a popular item. Prior to actually deciding, you should extensively investigate the items, competitors, market trends, and keywords.
2. Open an Amazon seller account
After you’ve decided on a product to offer, the next step is to create a Seller Central account. This will serve as the center of your online business. It will also be the place where you add product listings, view reports, manage your inventory and more.
Sign up using a valid email address, after which you will be required to add information that includes the name and address of the business, contact information, bank and credit card information, as well as tax information.
3. Pick a fulfilment method
To become an Amazon seller, the next step is to select a fulfillment method for your products. The tasks of storing, choosing, packing, and distributing products to clients are referred to as fulfillment. Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) are the two options:
This strategy is best stated using Amazon’s terminology: “You sell it. We will transport it.” In this model, you submit your products to an Amazon fulfillment center, and Amazon packs and ships the products when a consumer orders them, as well as handle customer service concerns like returns.
This option is ideal for people who want to save time on all of the logistics of packaging, shipping, and overall order fulfillment. With this model, Amazon charges a higher fee due to the additional services offered.
You sell your products on Amazon and also take care of all aspects of order fulfillment and storage. In this model, you take on more responsibility, but you will retain a larger share of each purchase sale.
4. List your products
For the next step, you will need to enter into Seller Central and start developing your product listing. This refers to the product page where a shopper may learn about and buy your goods. A product listing is a chance for you to tell customers about your product including what it is, and why they should purchase it.
Whenever defining your product, it is critical to be as precise as possible. You should also provide all relevant information, such as ingredients, dimensions, materials, and everything else a customer might need to know. Doing keyword research to understand what your customer base is searching for is also vital to ranking high in Amazon search results.
5. Prepare your products for shipping
The next step is to prepare your products for Amazon Shipping. To do this, click the ‘Work on Shipment’ button. You may now begin printing out your packing slips and mailing labels. It would be beneficial for you to have your own scale that can instantly weigh your boxes.
As an alternative, you can enter the measurements of your boxes online and have them weighed at a UPS location near you. You should aim to print your labels using FBA eventually, rather than your local UPS.
6. Start selling
You can now officially begin operating as an Amazon seller. It’s time to go live once you’ve finished the product listing and your products are ready to ship.
After you’ve mailed your boxes, you may use Amazon to monitor your shipments and your unpacked merchandise. Once your products sell, Amazon will contact you and send the proceeds immediately into your bank account. After this, you can now relax and wait for the money to come in.
Pros of becoming an Amazon seller
Easy to start
It is relatively simple to begin selling on Amazon. You don’t need to maintain your own site, build distribution networks, or worry about getting your products delivered to clients on time. Rather than a complicated website, you can create product listing pages on Amazon that reflect what you have to offer.
Amazon.com was visited over 2 billion times per month in 2020, with some months having even more. Obviously, not all visitors will be interested in your product, but you’ll be in a good position to be found by those who are looking for products like yours. This might be an excellent strategy to contact new and first-time clients.
If you use Amazon’s seller platform, then creating your own online retail website will not be something you have to worry about. For optimum functionality and speedy presentation, you can easily fit your products into the existing layouts.
Cons of becoming an Amazon seller
Amazon’s competition is intense, and a long-term strategy is necessary. If you sell the same goods as other merchants, you will be vying for the Amazon Buy Box. The organization on Amazon’s pages is by products and not sellers.
As a result, when numerous vendors offer the same goods for sale, Amazon determines which seller is the greatest fit. Although there may be dozens of merchants providing the same goods, only one will have the greatest Buy Box Score and hence win the transaction.
When going up against products and sellers that have thousands of high reviews, it can be difficult to break through onto the first page of search results for your product’s keywords.
Lack of individuality
Having your distribution channel allows you to convey your narrative and tell your story. Selling on Amazon seeks to commoditize brands by depriving them of the main distinctions that distinguish them. Amazon lowers brand awareness by moving the attention of customers away from the business name and toward user reviews.
Lack of customer data
One advantage of companies selling through their own platforms is the chance to acquire superior customer data, which they would not generally have access to if they sold through Amazon. You can use rich client data to give customers more tailored services and products.
The majority of Amazon sellers make a minimum of $1,000 every month. There are however sellers that make up to $250,000 every month, which accumulates to $3 million in yearly revenue. Almost half of Amazon sellers earn from $1,000 to $25,000 per month. This suggests that they make annual sales of $12,000 to $300,000. One-fifth of Amazon sellers make $25,000 to $250,000 per month, for yearly sales of $300,000 to $3,000,000. The remaining 6% earn over $250,000 per month. Just 26% of merchants make less than $1,000 per month in revenues, and 4% are not aware of what their monthly sales are.
To become a seller on Amazon, first, create an account on Amazon and list your products. You will also have to open an account using an active bank account and your GST/PAN number. You can not only accept orders from your customer base, but you could still also get bulk purchases from businesses. As you sell on Amazon, you have the option of controlling how packaging, delivery, storage, and returns are handled. Amazon will take care of shipping and customer returns if you use FBA or Easy Ship. There is also the option of shipping the items yourself. Money made from completed transactions will be transferred into your bank account after Amazon costs have been deducted every 7 days.
It is completely free to open an individual seller account on Amazon. You need to provide Amazon with some basic information, after which you’ll be ready to start. However, Amazon will charge you a fee for each sale you make due to selling through their platform. According to observations by Jungle Scout, merchants who began with less money found success in the long term. This was in a survey done of over 4,000 Amazon sellers. There are two major things to consider when starting out, and these include the cost of your products and the fees.