How To Sell On Amazon in 2024 - Tips and strategies by Digimagg

Adored by both vendors and consumers, Amazon's status as a multibillion-dollar corporation is hardly surprising. The platform provides sellers with a convenient avenue to showcase their products to a worldwide audience. Initiating your journey on this platform may seem daunting, but it's more straightforward than you might anticipate. In this manual, we'll guide you through the process of selling on Amazon with just five uncomplicated steps. This comprehensive guide has all the information you require to kickstart your venture.

Two Different Ways To Sell on Amazon

There are two distinct methods for selling on Amazon, and they are not mutually exclusive. It's possible to employ both options concurrently. You have the flexibility to personally handle the shipping of your slower-moving, large, or heavy items, while entrusting Amazon with the shipping of your lighter, swiftly-selling products.

Fulfilled by Amazon (FBA)

Fulfillment by Amazon (FBA) involves sending your merchandise to Amazon's warehouse, and once a sale occurs, Amazon takes care of the shipping process. However, it's important to note that, along with the regular monthly service fee, there is an additional monthly charge for inventory storage.

Fulfillment by Amazon (FBA) not only handles the shipping logistics but also manages all aspects of customer support. If you lack storage space for your inventory and are comfortable delegating responsibilities to Amazon, FBA could be a favorable option. Ideally, products well-suited for FBA are those that are compact, lightweight, and have a quick turnover.

Ship Products Yourself

Referred to as fulfilled by merchant (FBM), this approach involves personally storing and shipping your products. Additionally, you are responsible for managing all aspects of customer service, necessitating the establishment of a system to address inquiries and resolve any product-related issues.

Sellers often opt for FBM, especially when dealing with large or slow-selling items, as it allows them to avoid the costs associated with storing products in an Amazon warehouse. The rationale behind this choice is to minimize expenses, considering that the longer a product remains on an Amazon warehouse shelf, the higher the costs incurred, mainly due to long-term storage fees.

Start Selling on Amazon in 5 Steps:

1. Conduct Market Research

Before embarking on your Amazon selling journey, it's crucial to review the list of restricted products. Certain categories, such as jewelry or DVDs, mandate approval before listing, and some products are entirely restricted due to federal regulations.

To narrow down potential products, explore the option of private labeling for a successful item. This involves adding your company label to an existing product. Assess the popularity and trends of products in the market.

Once you've chosen a product or product niche, examine the top listings in that category. Evaluate the level of competition. If competitors offer Prime shipping, utilize FBA, and boast numerous 4.5- and 5-star reviews, it may pose challenges to compete effectively.

Opt for a product in demand with a lower entry barrier. Upon identifying a product, secure a supplier, and engage in negotiations while requesting samples to avoid issues like breakage or discrepancies from product images.

After securing a supplier, calculate your cost per unit. Ensure your profit margins are sufficient to make your product financially viable. If not, consider exploring alternative products. Ideally, your margins should allow room for discounts or coupons. Conduct viability tests on multiple options before finalizing your selection of the first product to sell.

2. Set Up Seller Account

To establish a seller account, ensure you have the following information ready:

• Bank account number and routing number
• Credit card details
• Government-issued national ID, like a driver's license
  
• Tax information
• Phone number

Once you have these details, visit Seller Central and select a selling plan. The Individual selling plan, priced at $0.99 per sale, is suitable for those selling fewer than 40 units monthly, operating on a pay-as-you-go basis.

For sellers moving more than 40 units monthly and requiring advanced reports and APIs, the Professional selling plan is recommended. It is also necessary for selling on Launchpad or Handmade. The Professional plan comes at a fixed monthly cost of $39.99, regardless of the sales volume.

3. Add Products

Adding products on Amazon can be done in two ways: utilizing an existing listing for an identical product or creating a new listing. If you are the exclusive seller for a specific product, you are required to create a new listing.

A comprehensive listing includes the following details:

• Product identifier (GTIN, UPC, ISBN, or EAN)
• Stock Keeping Unit (SKU)
• Price, product condition, available quantity, and shipping choices
• Product name, brand, category, description, and images
• Keywords and search terms

It is crucial to optimize your product descriptions for search engines, known as SEO. Part of SEO involves researching keywords for your listings, focusing on terms people commonly search for. Adding irrelevant keywords can negatively impact your visibility. If writing is not your forte, consider hiring a copywriter to craft optimized product descriptions. Platforms like Fiverr and Upwork offer access to freelance copywriters.

Images are equally vital for a listing's success. Photos should feature a white background and have a minimum dimension of 500 x 500 pixels. For high-quality listings, consider increasing the file size to 1000 x 1000 pixels. Many sellers use a lightbox for capturing product images, and some companies offer photography services if you send them your products.

4. Attract Customers

In the vast sea of Amazon listings, it's crucial for your products to stand out, and effective strategies involve pricing, shipping, and advertising.

Competitive Pricing: Ensure your pricing is competitive. Amazon provides built-in seller tools that automatically optimize your listing's price based on parameters you set, allowing you to maintain profitability. Additionally, take advantage of bulk pricing to attract Amazon Business customers.

Fast Shipping: If you're not utilizing Amazon Prime shipping, prioritize swift shipping when using Fulfillment by Merchant (FBM). Timely deliveries enhance customer satisfaction and can contribute to a positive shopping experience.

Sponsored Listings: Consider advertising your products with sponsored listings. This feature places your listing on product pages and in search results. Sponsored ads operate on a cost-per-click (CPC) basis, meaning you pay for each click on your ad, regardless of whether a purchase is made. CPC costs can vary from a few cents to several dollars per click.

5. Get Reviews

There are stringent guidelines governing the solicitation of reviews from customers, and violating these rules can lead to severe consequences, including a permanent ban on your account, withholding of funds, and potential legal action.

Here are some acceptable practices:

• Request reviews from customers without offering any form of compensation, free products, refunds, or discounts in return.
• Enroll in Amazon's Early Reviewer Program, where reviewers are incentivized to provide genuine and unbiased reviews.

It's crucial to note that just because you observe another Amazon seller engaging in certain practices doesn't necessarily make them acceptable. The risks associated with violating review guidelines are substantial, making it imperative to adhere to Amazon's policies to safeguard your seller account.

Bottom Line

While the process of selling on Amazon is straightforward, achieving success involves choosing the right products and meticulously optimizing your listings. Sustaining success also demands ongoing attention and regular maintenance efforts.