Launching a business is an attractive solution to some of your financial problems and the chance to make money solely – without the necessity to work for somebody else. And Amazon unites entrepreneurs all over the globe, as it provides the quickest connection between sellers and customers. But many people are still afraid to start their projects here because they don’t understand how everything works on this website. However, this place is worth your attention, and we’ll discuss it in our comprehensive guide.
Well, in case you don’t know anything about this marketplace, it’s your lucky day today. We prepared the guide that describes what to sell on Amazon , how to start a business here and select the most convenient plan, and many more. Leave all your current tasks and keep on reading our guide!
How to Start Selling on Amazon?
It’s the starting point on Amazon. Leave your worries aside because we’ll discuss each aspect of launching a business here, so you won’t even have to miss valuable time. First of all, get ready to take the following steps at the beginning of your brand’s journey:
- Explore the sourcing opportunities to find a trustworthy partner.
- Before you decide on a particular item to sell on Amazon, research the fees and rules of the marketplace.
- Pass the registration process and create the Seller’s account.
- Upload the items you want to perform on the website.
- Create the product listing.
- Select the fulfillment model – FBA (Fulfillment by Amazon), or FBM (Fulfillment by Merchant) when you need to execute all the tasks connected with storing and delivery by yourself.
Once you’re finished with all the mentioned steps, the business expansion is only a matter of time. Sell things on Amazon, and you’ll quickly notice how your brand transforms into an empire. But don’t forget about the management strategy, research, analysis, and tracking, as only hard-working entrepreneurs manage to leverage the marketplace properly. Before registering your brand on the website, you should estimate the niche to know all its pitfalls. Although you might find it attractive to enter the market in a selected category, many traps connected with product search are waiting for you. But items that generate sales will help you refill your budget.
In case you haven’t created your business account yet, it’s not a problem to start offering goods here. Your SSN is well enough to sell on Amazon because you can mark sales as your income. But if you aren't based in the USA, you should take into account the following requirements:
- Make sure your credit card accepts money transfer internationally. It doesn’t make sense to investigate the banking sphere for too long because Visa and Mastercard are what you need. It’s the best choice for entrepreneurs.
- Choose the bank that allows you to obtain Amazon’s electronic money transfer.
- Provide your physical address information.
- Share the contact details.
- Get the Employer Identification Number (EIN) to sell on Amazon.
As you can see, it doesn’t matter if you’re based in the USA or live somewhere in Europe – the road to success is open to everybody. With a highly potential item and growth strategy, you’ll be able to win the competition and leave all other companies behind. The signing up procedure requires only filling appropriate gaps, so you should dedicate a few minutes to forms. But after this, you’ll get the chance to achieve all your aims.
How Much Money Do You Need to Start Selling on Amazon?
When making a life-changing decision to sell on Amazon, you start checking your finances and looking for extra cash to enter the chosen niche. In fact, there’s no need to get nervous about this question because the platform is available for everybody. You can sell on Amazon even with a small budget – the marketplace allows you to uncover new ways to refill your banking account. Actually, this company started as a platform for book distribution. And today, you can also get rid of undesired items on your shelves with the help of the marketplace.
Notwithstanding that there are many experienced entrepreneurs on this website, a large number of starters join the community of sellers every day. You may have less than $100 in your wallet – Amazon is the place where you can offer items that you already have at home. It means that the marketplace allows you to sell the inventory from your house. Try to find customers who will buy products that you don’t need anymore. As we mentioned, very often, people decide to promote books here as it’s an opportunity to get rid of old or undesired things from your room or basement.
If you aim to sell items on Amazon, you’ll have to consider fees charged by the marketplace. For example, those joining the platform must cover the expenses that come with the registration. There are two ways to sign up as a seller here – you have to select one of the provided plans - Individual and Professional. The first variant is a perfect solution for starters who don’t have ambitious plans to sell more than 40 items a month. If you belong to one of them, then you’ll have to pay Amazon around $1 for every product bought by shoppers. But in case you’ve built impressive plans and want to dominate the niche, prepare for other terms. The Professional plan costs approximately $40 – this sum is charged on a monthly basis.
Serious business steps require entrepreneurs to be financially prepared. When counting how much money you’ll need in the future, consider FBA and other Amazon’s fees, product photos, designer’s services, and many more. Time passes by quickly, and the chances are that you would like to develop your business and transform it into something bigger. You’ll have to invest money in inventory, employees, software, and other things. The truth is, the more items you demonstrate online, the more sales you get. You’ll realize that you need to offer more goods to customers to show your desire to develop and provide new products. It’s your chance to grow business and obtain profit. But it’s not a good idea to borrow money or take a loan – it’s better to revise your management and promotion strategy to come up with fresh decisions.
How Much Can You Make Selling on Amazon?
Depending on your aims and business plan, the level of income you can obtain on Amazon may vary. You should take into account the market demand, competition, price, uniqueness of the product, and other factors. And don’t forget about the options provided by the platform – FBA members have all the chances to perform successfully here due to the opportunity to attract Prime customers.
Those selling products on Amazon can earn up to $4000 every month. If you start using the platform as a place that helps you change your budget situation for the best, you’ll manage to invite lady Fortune to your home. You can pick any method for doing business – concentrate on the one that works perfectly for your company:
- Private label. It’s a perfect way to enter the niche with your exclusive product to sell on Amazon. You only have to find a trustworthy partner for collaboration – the manufacturer should create items before the deadline is over, label them with your brand’s logo, and provide high-quality products. If you’ve ever imagined that you’re famous around the world, this business model is the reflection of all your wishes. With the help of a reliable partner, you’ll be able to create an exclusive item that will be demonstrated to millions of platform’s visitors.
- Arbitrage. Many entrepreneurs choose this business model to sell on Amazon because it’s an opportunity to earn quick money. You have to monitor the upcoming sales in stores and purchase goods at low prices. Then you can offer these products through Amazon and set more expensive costs. Although it’s a popular alternative to Private labeling, you have to notice that you’ll have to dedicate many free hours to check all the discounts in your city and offers on the Web.
- Wholesale. You can perform on the platform as a reseller – order items from a manufacturer in bulk and promote them on the website.
The chances to receive income when you sell on Amazon are amazing. It’s the quickest way to introduce your product to the international market. So, it’s time to use each opportunity to make good money. No wonder why so many entrepreneurs choose this platform – according to the statistics data, average sellers perform around 50 % of all sales on Amazon. This place should be the first one on your mind to launch a business, as many brands earn millions of dollars here.
How to Choose Your Amazon Seller Account?
No doubt that Amazon is the №1 place for entrepreneurs from around the world. This marketplace has so much to offer to each seller. And the most attractive option it provides is the chance to demonstrate your goods to millions of shoppers who are based in different regions. Moreover, the signing up process is quicker than creating a website for your brand.
How to sell on Amazon? The starting point of your path is the registration form. Create the Seller's account, and start imagining your luxurious life. We’ve already mentioned that the marketplace has two packages for entrepreneurs. The Individual plan is designed for people who have a limited amount of items – the number of purchases won’t be larger than 40 products. This option is free, but every sold item will cost you $0.99 . It’s a nice option for newbies, as they want to check how they will perform with their goods. Another model is for those aiming to leave other brands far behind. Let’s discuss the Professional plan and explain how to become an Amazon seller with this subscription.
Professional Seller
If you take it seriously and strive to enter the market with a large number of items, the Professional plan is a perfect alternative to the Individual package. Sell on Amazon and pay the subscription fee every month – it costs $39.99 . Several benefits stand behind this option, so many entrepreneurs prefer starting their journey on the marketplace with the Professional plan.
Those selecting this package get access to a larger number of categories than Individual plan sellers. You can represent your items by choosing an appropriate section, and sellers who decide to pay per one product can’t reach for hidden opportunities. But the Professional plan makes your business days brighter because of wider horizons. Add more goods to your online store and increase the number of sales. It’s your chance to give customers what they hope to find on the Web.
Another feature that becomes available for Professional Sellers is “ Buy Box. ” The buttons that customers see at the right corner of a product page allow them to buy an item. But not all sellers are eligible for this option. Individual plan users aren’t allowed to use this feature, and shoppers can see the offers of other brands in this section.
Fulfillment Options - FBA and FBM
Once you strive to sell on Amazon, you’ll be glad to hear that two fulfillment options are accessible for you. As far as it may be a difficult mission to find free space to keep all products, the thought to let someone else handle this question is excellent. In this case, FBA is a revolutionary solution to your problems because Amazon offers sellers an opportunity to ship their goods to the assigned fulfillment center. But entrepreneurs who don’t have enough finances to pay fees or want to control everything by themselves can execute all the logistics tasks solely or with their employees.
Amazon FBA
Selling on Amazon turns into a stressless process with FBA. You may be curious why this program became so popular among people who build their businesses on the platform. The answer is simple – Amazon takes upon itself to fulfill the most tiresome tasks. Entrepreneurs join it because they don’t want to cope with pains like shipping, storing, or packing. You can read the Amazon FBA Guide to get a deeper understanding of the program.
Many starters begin to operate their brands from home, and they don’t know where to put boxes with goods. As a result, they can’t move freely in their apartments because the entire space is occupied with products. If it’s Ok for you, this situation may be annoying for your family members. They appreciate your efforts to earn good money, but they’ll be sick of all these boxes very soon. What if the decision to pick FBA is the best solution for you?
This program allows you to upgrade your experience when you sell on Amazon. It helps you save your energy, stay positive with your expectations, and even increase your income. Here are the main features that become available to you with FBA:
- Space at Amazon’s fulfillment center. Storing products has never been easier – you must be prepared for a complicated search process. This problem unites all the entrepreneurs who sell goods because everybody knows how hard it is to find a spot to place all the boxes. Once you’ve selected FBA, your items will be kept in a warehouse that belongs to Amazon. It’s the safest place for your goods because nothing can damage them there.
- Packing. Another challenge is connected with packaging – you must put each item into a box to provide safe delivery. Besides, everybody likes it when a product is wrapped carefully. If you plan to sell a large number of goods on the website, it makes sense to become one of the FBA members. The necessity to pack every order will disappear because well-trained employees will do it at a warehouse. A branded box is waiting for each item, so don’t be afraid that a customer will be disappointed about packaging.
- Shipment. Every entrepreneur who decides to sell on Amazon takes into account the delivery organization. And this question often scares brand owners because of international shipment – unreliable partners often fail to preserve the product quality. Besides, you’ve probably heard about situations when shoppers didn’t receive orders at all. With Amazon, neither you nor a customer will be disappointed with the logistics services. The company collaborates with reliable delivery services, and receivers get the purchased goods in good condition.
- Customer service. Do you think that you can help and support shoppers excellently? We are sure that no one has better customer service than Amazon. Caring managers are online 24/7 , so a buyer will find the answer to his or her questions at any hour of the day. If you sell on Amazon, you must be prepared not only for positive feedback but also for complaints. You know how hard it is to cope with negativity, and that’s why the decision to rely on the company’s specialists might be the best business solution. Besides, they will handle the send-back processes, so you won’t have to carry all the troubles on your shoulders.
It’s not surprising that millions of entrepreneurs have chosen FBA. You might like the attractive thought to use all the mentioned helpful features, but make sure that there are no cracks in your budget. The program accumulates the variety of fees you’re obliged to pay regularly. The wisest move, in this case, is to check how much money you’ll need to cope with the expenses. For this, you can use IO Scout Amazon FBA Calculator and count the sum of charges that will be assigned to you.
FBA is available for everybody who wants to sell products on Amazon. It doesn’t matter if you pick a Professional or Individual plan – apply for membership right after registration. The program gives you many benefits, including the following ones:
- All your items are delivered faster. Prime shoppers get the chance to receive their orders even earlier than they can expect from entrepreneurs that didn’t apply for FBA membership. Only two days are needed to make someone happy with the fastest order shipment.
- The features that ease your business days – storing, packaging, shipping, and customer service.
- FBA saves your precious hours. You can concentrate on developing an effective business plan and engaging advertising campaign.
Amazon allows you to switch plans and transform your Individual account into a Professional one. And there’s no doubt that with the second variant, you’ll get all the perks of FBA. All the practical features will be at your service, and the most crucial responsibilities will be shared with professionals.
Amazon FBM
Amazon FBM goes for “Fulfillment by Merchant” – it’s when you decide to execute all the shipment tasks solely or with your employees. You don’t send your goods to the company’s warehouse, but wait for the order and organize the delivery by yourself. This model might work well for those renting a storage space or preferring any other option for keeping products. Many people have enough space in their garages or basements, and it’s not a problem for them to leave boxes there.
Although FBA has attractive advantages and guarantees, FBM is also a brilliant solution for certain categories of entrepreneurs. You may pay attention to this program if you’re only starting an Amazon business and understand that your budget isn’t enough to cover all the charges. FBM also works well for the following situations:
- Exclusive goods are what you decide to sell on Amazon. In this case, the number of sales will be lower than the mass-market products demonstrate. That’s why you might like the idea of shipping items to a customer’s door.
- You plan to perform a small number of goods. There’s no need to pay FBA fees because you won’t even manage to earn large sums.
- You offer cheap products that don’t bring much money to cover the fees.
- FBA fees depend on the weight and size of an item. Calculate the sum that Amazon will take from you and come up with the best decision. The chances are that it may be cheaper to pick the responsibility to ship goods solely.
When pitching upon FBM, you strive to save money. But the truth is that it’s a time-consuming option because you can face the problem with private warehouses and delivery partners. It’s up to you which model to select – your choice will depend on many aspects. You should determine your purposes, and then everything will fall into place.
Amazon Vendors
This option may attract big distributors and manufacturers. In case you create products, you can offer them to Amazon and supply goods in bulk. Then the company will provide these items with its label. While many entrepreneurs control how things are going on the platform by themselves, you won’t have the chance to make some decisions connected with important aspects of your business. Amazon determines the number of products you should supply, picks a warehouse, and chooses which vendor will ship goods to its center this time.
However, the members of this program also get access to different benefits. All FBA features become available to you, and shoppers will buy your products more frequently because of the Prime shipment option . Besides, they’re confident in the quality of Amazon’s services, and that’s why they will choose your items.
Setting Up Your Amazon Seller’s Account
If you are ready to sell on Amazon, take a few simple steps to start your business. The signing up process requires approximately 10 minutes of your free time, so it won’t be hard to complete all the forms. Prepare for filling the gaps with the demanded information, as the missing details won’t let you operate on the platform. Read this instruction to learn how to become an Amazon seller:
- Visit Amazon’s website and find the button with the text “ Start selling. ”
- Determine your future path on Amazon. You have two plans to choose from – Individual and Professional. The first variant is free, but you’ll still have to take into account different fees and pay $0.99 for every sold product. The Professional package comes with regular payments - $39.99 . The subscription fee is charged every month, but this plan is worth your attention because it opens effective features like “ Buy Box ” and hidden categories.
- Complete the registration forms. Amazon asks sellers to share the necessary data, including contact information, tax details, brand name, address, and many more.
After you fill all the forms, you can be sure that you’ve passed the path that allows you to sell on Amazon. Now it’s official! You’re a Seller and have the brightest opportunities to create your business empire with customers located all over the world
How to Select Products to Sell on Amazon?
Many starters get confused by a variety of goods they can choose to sell on Amazon. And this question often leads them to a dark forest of doubts and misunderstanding, so it becomes obvious that you can’t do well on the platform without comprehensive research. Without investigation and market analysis, you’ll never win the competition.
How to start selling on Amazon? The first step you should take is picking a product that has excellent potential. When checking the platform’s offers, you’ll notice that different distributors sell the same goods. And that’s where the challenge begins because dominant brands, corporations, and Amazon itself get all the customers. But it’s not the moment to give up – it’s time to work hard to select an item that will demonstrate regular and frequent sales.
Of course, the chances are that you’re already interested in a particular product, but who said it would bring you any money? We conducted research and dived deep into this field. Here’re our recommendations on how to select a product to sell on Amazon:
1. Drop some products or even categories
It’s not a secret that everybody wants to pick the right product to sell on Amazon at the very beginning of his business path. But sometimes it’s a complicated task to fulfill, and you need to spend days to determine a highly profitable item. The best way to narrow the field of choices is to follow these recommendations:
- Starting a business with a cheap product is half of success. And here’s the explanation – items that cost less than $100 attract shoppers who are “ just browsing. ” They fall within a category of customers making impulsive decisions. A buyer doesn’t ask for advice in case he or she is going to purchase an item that costs $27 or even less.
- Sell lightweight products that don’t occupy much space. Do you want to earn more cash? Remember that FBA fees depend on the characteristics of an item – size and weight. With a small product, you’re saving money on shipping and other features.
- Forget about goods promoted by big market players. Famous brands attract customers more than starters, so it’s better to forget about ambitious plans for now. Besides, it’s incredibly hard to compete with dominant companies. That’s why it’s better to select something exclusive or a product that hasn’t been promoted by a corporation through Amazon.
- Check the shoppers’ testimonials. It’s the best method to receive essential insights that will help you identify the customer’s needs. Pay attention to negative comments as you can see which product characteristics don’t satisfy buyers. Solve their problems with a new item – improve the quality, offer more variants, or come up with a wide range of colors.
- Select items that have a small number of reviews. If there are no comments at all, it’s a winning situation for you. There’s always a chance to attract an audience with the same item and get more reviews. But it’s also a risky variant because of small demand. What if no one needs the product you’re going to sell on Amazon? The decision to enhance its characteristics can change the state of affairs.
2. Don’t choose products from Amazon’s list of forbidden goods
There’s a list of items you can’t sell on Amazon, and it’s necessary to check it before you decide on some product. The marketplace also requires your application for approval of some goods, but you’d better consider something else. It doesn’t mean that buyers like such rare products as you do. Moreover, it’s hard to research and analyze the performance of these items on the website. That’s why we recommend leaving the idea to offer excentric goods for better days
3. Benefit from picking the right product research software
Hundreds of brilliant ideas may cross your mind when you’re trying to pick a successful item to sell on Amazon. But we recommend removing all these romantic thoughts for a while and take it seriously. It’s a rather risky decision, as you may lose your money and time if you come up with a false choice. It’s the reason why you must research the market and evaluate the selected niche. IO Scout is a tool that always stays by your side whenever you need to find an effective solution for your business strategy.
With this software, you’ll never miss an opportunity to hit the market with a product that will demonstrate impressive sales. It’s a cutting edge Product Finder Tool that helps sellers find goods that bring money and implement the best decisions for their businesses. Get access to over 100 million items launched on Amazon, keep track of the latest trend changes, and check how the competitors perform on the website. It’s up to you how to group the data – you can set any preferable filter, including pricing, revenue, stock status, reviews, and many more. The ease of use wins all the hearts because you can install the Chrome extension and work with the tool directly on Amazon.
Amazon Keyword Research
We’ve already shared a few tricks to help you figure out how to sell on Amazon. And now, it’s time to uncover another method of successful performance on the website – choose the right keywords to help customers find your goods. A brilliant SEO strategy might be your key to fantastic opportunities, as properly selected phrases will lead shoppers directly to your store. And they will add these items to carts, so sales are what you should expect for.
You already know how customers are looking for products on Amazon. And you’ve probably done it many times by yourself. Shoppers enter the name of an item they want to purchase on the website. The search engine shows customers products that have these keywords in titles and descriptions. That’s why you must pay special attention to these phrases because they help connect your store with potential buyers. If you sell on Amazon, you can easily optimize your listings appropriately. In fact, it’s not a problem because this platform is more flexible in terms of keyword performance than Google. Here’re a few main rules to consider when working on SEO optimization:
- Pick only relevant keywords. Customers don’t choose the item if the title contains too many unneeded words. They expect to get an explanation of product characteristics, and not a combination of random phrases
- Be clear. Titles and descriptions should sound natural. A readable text is always better than a scope of inappropriate words.
Proper keywords open the hidden opportunities for reaching success. With the right phrases, you’re able to grab the attention of millions of shoppers who are looking for particular products. And if you choose to sell on Amazon with the help of FBA features, your items will be ranked higher in search results – it’s a chance to increase the number of sales quickly. Keywords are like path symbols for customers. They show the short road to a successful purchase. And if you aren’t an expert in SEO, you can upgrade your Amazon selling experience by using a helpful instrument.
IO Scout is the №1 weapon in a seller’s arsenal. It generates hundreds of appropriate keywords – the software pulls them from real visitors’ requests on the website. IO Scout creates reports within seconds, and you won’t have to dedicate much time to picking relevant phrases. Conduct Amazon Keyword Research , and may the number of sales exceed your expectations!
Final Thoughts
Launching a business on Amazon is easy, but you must remember that you should think well before making decisions. We hope that this guide will lead you through all the difficulties and misunderstandings right to success. Let it be the motivation to sell on Amazon as everybody has an opportunity to attract the attention of the international audience with the help of a highly profitable product.
Sometimes changes scare us, but we guarantee that you’ll be able to get all the advantages of Amazon sell features with a wise business strategy. Select and switch plans, get all the perks of FBA, and offer successful goods – this ecosystem turns your dreams into reality. Make selling an integral part of your life!
FAQ
How much does it cost to start selling on Amazon?
Amazon allows you to adhere to your personal needs. You can register either as an Individual or Professional Seller. The basic plan doesn’t require monthly payments – you’re charged a fee for every item that is bought by a customer. You’ll have to pay $0.99 . And the monthly subscription fee that comes with a Professional plan is $39.99 .
Which tools do I need to start selling on Amazon?
IO Scout is an effective tool that essentially eases research, analysis, and evaluation of the market. It has a vast product database with over 100 millions of items that people sell on Amazon. With dozens of filters, you can receive any data connected with goods and categories you’re interested in.
What can I sell on Amazon?
Choose any product to sell on Amazon, unless it’s in the list containing the restricted items. As a starter, you should better pick small goods that don’t have a sky-high price. Besides, it’s hard to compete with big brands – try to avoid niches with dominant corporations.
