A guide for beginners – How to sell on Amazon, people products
To sell on Amazon, you can:
- Choose a selling plan: Select a plan that fits your needs and budget. Amazon offers two plans:
- Individual: Costs $0.99 per sale
- Professional: Costs $39.99 per month, regardless of how many items you sell
- Create a seller account: You can use the email address associated with your Amazon customer account, or a separate business email address. You’ll also need to provide:
- Bank account and routing number
- Internationally chargeable credit card
- Government-issued ID
- Tax information
- Phone number
- Enroll your brand: Amazon Brand Registry can help you grow your audience, increase sales, and build brand loyalty.
- List products: You can match existing listings or create new ones. You can also use the Buy Shipping tool for products you sell with Amazon.
- Price products: Set competitive prices to become the Featured Offer.
- Promote and advertise: Explore options to promote and advertise your products.
You can also dropship on Amazon by:
- Finding a dropshipping supplier that has worked with Amazon before
- Asking the supplier where they get their products and if they have letters of authorization from brands or manufacturers
- Creating listings for the products you want to sell
You can also watch this video to learn more about selling on Amazon:
Selling on Amazon can be a great way to start an online business or grow an existing one. Here’s a simple guide for beginners on how to sell products on Amazon:
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1. Create an Amazon Seller Account
- Go to the Amazon Seller Central website: Amazon Seller Central
- Choose between Individual Seller (no monthly fee, but a small fee per sale) or Professional Seller (monthly subscription fee but more features).
- Fill in your business details, such as name, address, tax information, and payment methods.
2. Choose Your Products
- Decide on the type of products you want to sell. You can sell:
- Private Label: Create your own brand and have products manufactured (e.g., beauty products, supplements, kitchen tools).
- Wholesale: Buy products in bulk and sell them individually.
- Retail Arbitrage: Buy discounted or clearance products from other stores and resell them on Amazon.
- Handmade: If you’re selling handcrafted goods, you can list them on Amazon Handmade.
- Research your product niche using tools like Amazon’s Best Seller Rankings (BSR) or Jungle Scout to determine demand.
3. List Your Products
- In Seller Central, click on “Inventory” and then “Add a Product.”
- If the product already exists on Amazon, you can list it by matching it to the current product.
- If it’s a new product, you’ll need to create a new product listing by entering:
- Product title (with relevant keywords)
- Product description (include benefits and features)
- Images (high-quality, clear pictures)
- Price (consider shipping, fees, and margins)
- Product details like size, color, and material.
4. Set Your Price
- Competitive Pricing: Research competitors to set a price that’s competitive but still profitable. Use Amazon’s Automated Pricing Tool to help adjust prices based on market conditions.
- Factor in Amazon fees: Amazon charges a referral fee (percentage of the sale price) and other selling fees depending on your category.
5. Shipping Options
- Choose between Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM):
- FBA: Amazon stores, packs, and ships your products. They also handle customer service and returns. It’s convenient but comes with storage and fulfillment fees.
- FBM: You handle storage and shipping directly to customers. You’ll need to manage customer service and returns.
6. Optimize Your Listing for Search (SEO)
- Use relevant keywords in your title, description, and backend search terms.
- High-quality images: Amazon allows multiple product photos, so use them to showcase the product from different angles.
- Bullet points: Highlight key features and benefits in a clear, concise way.
Tip: You can use tools like Helium 10 or AMZScout to find high-performing keywords.
7. Promote Your Product
- Use Amazon Sponsored Ads (PPC) to get your product in front of more people. This allows you to advertise your products on Amazon’s search results and product pages.
- Consider discounts or coupons to encourage initial sales and reviews.
- Leverage social media and other platforms to drive traffic to your Amazon listings.
8. Manage Customer Feedback & Reviews
- Customer reviews are crucial for selling success. Aim for a high rating by providing great customer service and quality products.
- Respond to customer inquiries and reviews promptly and professionally.
- Use Amazon’s Feedback and Review tools to monitor feedback and improve your offerings.
9. Scale Your Business
- Once you start making sales, consider scaling by expanding your product line, using Amazon’s international marketplaces, or increasing your marketing efforts.
- Use Amazon Analytics to track your sales, monitor inventory levels, and refine your business strategy.
Key Takeaways:
- Choose a selling method (Private Label, Wholesale, etc.)
- Optimize listings for better visibility.
- Use FBA for convenience and Prime eligibility.
- Market your products with ads and promotions.
- Provide excellent customer service for positive reviews.
By following these steps, you can build a successful Amazon business and tap into its massive customer base!
If you’re looking to start selling on Amazon, here’s a comprehensive guide for beginners that covers the basic steps, standard selling fees, and everything you need to know about selling products online.
How to Sell on Amazon – A Guide for Beginners
Selling on Amazon can be incredibly profitable if done right. Whether you are a beginner or have experience in e-commerce, Amazon offers a massive platform to reach millions of customers. Here’s a step-by-step breakdown of how to sell on Amazon and the essential details you need to get started.
Step 1: Choose the Right Product to Sell
To succeed on Amazon, product selection is key. The first step is to decide what kind of products you want to sell.
- Private Label: You create your own brand by sourcing products from manufacturers and selling them under your own brand.
- Wholesale: You buy products in bulk from manufacturers or distributors and resell them individually.
- Retail Arbitrage: You buy discounted or clearance items from stores and resell them on Amazon for a profit.
- Dropshipping: You list products on Amazon and only purchase them from a supplier once you make a sale. This eliminates the need to handle inventory yourself.
To help you choose, you can use tools like Jungle Scout, Helium 10, or Keepa to find profitable product niches with high demand and low competition.
Step 2: Create Your Amazon Seller Account
Once you’ve decided on a product, the next step is to set up your Amazon Seller Account.
- Go to Amazon Seller Central: Seller Central Sign Up
- Choose your selling plan:
- Individual Seller Plan: No monthly fee, but a $0.99 fee per sale. This plan is ideal if you plan to sell fewer than 40 items per month.
- Professional Seller Plan: $39.99/month subscription fee. Best for sellers planning to sell more than 40 items per month and needing access to more features like bulk listing and advertising tools.
You’ll need to provide your business details, including tax information, a bank account for payments, and a credit card for billing.
Step 3: List Your Products
Now that your account is set up, it’s time to list your products on Amazon.
- Search for your product: If the product already exists on Amazon, you can simply match it with the existing listing. If it’s a new product, you can create a new listing.
- Product Information: For each product, you’ll need to fill out details including:
- Product title (use keywords for search optimization)
- Images (Amazon allows up to 9 images, so make sure your product images are high-quality)
- Product description and bullet points (highlight the product’s benefits and features)
- Price (research competitors to set a competitive price)
- Shipping details (whether you’re using Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM))
Step 4: Understand Standard Selling Fees
There are various fees associated with selling on Amazon. Here’s a breakdown:
1. Referral Fees
Amazon charges a referral fee for each item sold, which is a percentage of the total sale price. The percentage varies by product category:
- For example, Electronics have a referral fee of about 8%, while Clothing could be around 17%.
2. Subscription Fees
- Individual Seller: No monthly fee, but a $0.99 fee is charged for each item sold.
- Professional Seller: $39.99 per month, regardless of how many products you sell.
3. Fulfillment Fees (for FBA)
If you choose to use Fulfillment by Amazon (FBA), Amazon charges for storage, packing, and shipping your products:
- Storage fees: Amazon charges for storing your inventory in their fulfillment centers, with higher rates during peak months (October to December).
- Fulfillment fees: These are based on the size and weight of the product.
4. Other Fees
- High-Volume Listing Fees: If you’re selling in large quantities, Amazon might charge for high-volume listings.
- Refund Administration Fees: If you issue a refund to a customer, Amazon charges a small fee (usually around $5 or the referral fee, whichever is lower).
You can calculate all of these fees using Amazon’s FBA Calculator or similar tools to ensure your pricing covers all costs.
Step 5: Choose a Fulfillment Method
There are two main ways to fulfill your orders on Amazon: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM).
- FBA (Fulfillment by Amazon): You send your products to Amazon’s warehouse, and they handle storage, packaging, shipping, and customer service for you. Your products will also be eligible for Amazon Prime, which can increase sales significantly.
- Pros: Amazon handles everything, your products get Prime shipping, and you’re eligible for Amazon’s customer service.
- Cons: FBA fees, potential storage fees, and the need to ship products to Amazon’s fulfillment centers.
- FBM (Fulfillment by Merchant): You handle everything yourself—storing inventory, packing, shipping, and customer service.
- Pros: You control your inventory and fulfillment.
- Cons: More work on your part, and your products won’t be eligible for Prime shipping.
Step 6: Optimize Your Listings for Search (SEO)
To rank higher in Amazon’s search results and attract more customers, you’ll need to optimize your listings using keywords. Here’s how:
- Use relevant keywords in the product title, bullet points, and description.
- Ensure your product descriptions are detailed and informative, highlighting the product’s features, benefits, and usage.
- Use high-quality images with clean backgrounds and multiple angles.
- Utilize Backend Search Terms to include additional keywords that might not fit naturally in the title or description.
Step 7: Promote Your Products
Once your product is live, you’ll want to promote it to get noticed:
- Amazon Sponsored Ads: Use Pay-Per-Click (PPC) ads to advertise your products directly on Amazon search results and product pages.
- Deals & Discounts: Offer discounts, lightning deals, or run promotions to boost visibility.
- Social Media: Leverage platforms like Instagram, Facebook, or TikTok to drive traffic to your listings.
Step 8: Monitor Your Performance
After you start making sales, regularly check your Amazon Seller Central dashboard to monitor your performance:
- Track sales, feedback, inventory levels, and product performance.
- Keep an eye on your customer reviews and use feedback to improve your listings and customer service.
Seller University – Learn How to Sell on Amazon
Amazon provides a free Seller University with video tutorials and training to help you understand how to navigate the selling platform, optimize your listings, and grow your business.
Seller FAQs
Q: How do I get paid on Amazon?
Amazon pays sellers every 14 days via direct deposit to your bank account.
Q: Do I need a business license to sell on Amazon?
It depends on your location and how you plan to sell. In most cases, a business license isn’t required to sell on Amazon as an individual seller, but if you plan to sell as a business, you may need to register.
Q: Can I sell internationally?
Yes, Amazon offers global selling in several countries. You can list products on other Amazon marketplaces and reach customers around the world.
Conclusion
Selling on Amazon can be a rewarding business venture if you follow the right steps. From choosing the right products to understanding the fees, setting up your seller account, optimizing your listings, and promoting your products, there’s a lot to learn. Seller Central is your main hub for managing everything, and with dedication, you’ll be able to grow your business and reach millions of customers worldwide.
1. Is it free to sell stuff on Amazon?
No, selling on Amazon is not free. There are fees involved, such as:
- Subscription fees: If you choose the Professional Seller Plan, it costs $39.99/month. The Individual Seller Plan doesn’t have a monthly fee but charges $0.99 per item sold.
- Referral fees: Amazon takes a percentage of each sale (typically 6-45%, depending on the category).
- Fulfillment fees (if using FBA): Amazon charges fees for storing and shipping your products.
2. How much money do you need to start selling on Amazon?
To start selling on Amazon, the initial investment depends on your selling method. Here’s a basic breakdown:
- Professional Seller Plan: $39.99/month.
- Product cost: If you’re buying inventory to sell (wholesale, private label, etc.), this could range from a few hundred to a few thousand dollars.
- Marketing & Ads: You may want to set aside a budget for Amazon ads, which can range from $5 to $50+ per day depending on competition and sales volume.
A basic startup cost might be around $500 – $1,000 if you’re sourcing a few products and setting up ads, but it can vary based on the size and type of your product range.
3. Is it profitable to sell on Amazon?
Yes, it can be profitable, but it depends on various factors:
- Product selection: Choose products with high demand and low competition.
- Margins: Ensure your profit margins are healthy after factoring in Amazon fees, shipping, and product cost.
- Marketing: Running ads, offering discounts, and building reviews can increase visibility and sales.
- FBA vs. FBM: FBA provides convenience but comes with higher fees. FBM allows you to control costs more directly but requires more work.
Many sellers find success, but it’s important to continuously track costs, adjust pricing, and optimize your listings to remain competitive.
4. How do you make money selling on Amazon?
You make money by selling products at a higher price than you paid for them. Here’s how:
- Retail Arbitrage: Buy low (e.g., clearance or discounted items) and resell at a profit.
- Wholesale: Purchase products in bulk and sell them individually at a higher price.
- Private Label: Create your own branded product and sell it at a premium price.
- FBA: If using Fulfillment by Amazon, Amazon handles the fulfillment process, allowing you to focus on marketing and product sourcing while earning from each sale.
To be profitable, you’ll need to cover your costs (product, shipping, fees) and price your items to ensure a profit after all expenses. Some sellers use Amazon’s Sponsored Ads to boost visibility and Amazon’s global reach to expand their customer base.