How To Sell Things On Amazon & Create A Successful Shop

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Millions of people have already started selling on Amazon and making money online, and it’s one of the easiest ways to make money online. You can sell the same product as someone else and still make a profit.

With Amazon, you have your own business that you can run from anywhere in the world. You’re in control of your income, and there are no limits to how much you can make.

But it can be overwhelming to figure out how to sell things on Amazon and grow a successful business.

We’ll give you tips on choosing a product, show you how to set up an Amazon business, and more in this article.

Why Sell On Amazon

There are many reasons to start selling on Amazon. For one, the Amazon marketplace is the perfect platform for businesses of all sizes.

You can use Amazon as the perfect first step in starting a profitable small business.

Whether you’re just starting or have been in business for years, Amazon provides an easy way to reach millions of potential customers.

Another reason to sell on Amazon is that it offers a more level playing field between Amazon sellers. You can compete with other sellers based on the quality of their products and customer service rather than on their ability to pay for advertising.

Also, low startup costs make it easy to start selling on Amazon. You don’t need to invest heavily in inventory or marketing, so you can get up and running quickly and at a low cost.

What You Need To Sell On Amazon

To start selling on Amazon, you must create an Amazon Seller Central account. The Amazon Seller Central platform lets you manage your product pages, track sales and payments, and view reports.

Opening your Amazon seller account is quick and easy. You will need a few things to get started with your Amazon business, including:

  • A bank account
  • Chargeable credit card
  • Government-issued national ID
  • Tax information
  • Phone number

How To Sell Things On Amazon

Now that we’ve looked at why you might want to open an eCommerce business on Amazon, let’s look at the steps Amazon sellers need to take to get their Amazon stores up and running:

1. Create Or Pick Your Products

The first step is deciding what you want to start selling on Amazon. You can choose from various items, including products you create yourself, used items, or wholesale items.

However, before you decide on what to sell, take some time to do some product research for options for your product detail page and make sure there is a market for the product.

Check the product categories and subcategories to see if there are any popular or well-selling items similar to what you want to sell.

2. Make A Strategy To Sell 

profit graph

Before selling on Amazon, you should have a plan that includes the products you intend to sell, product category, key features, product detail, selling price, and more.

Strategy usually starts with finding cost-effective items to sell for a large profit. The key is ensuring your prices are competitive; if they’re too high, people will be put off buying them.

You’ll want to pick items that sell well but that you could also make a profit on. So say you buy sunglasses for $2 a piece; you could sell them for $10 to make $8 of profit.

Lastly, if you’re not using FBA and you’re shipping products yourself, you need to set up a shipping system so that customers get their orders on time.

3. Start Your Amazon Seller Account

amazon sellers homepage

Once you’ve decided on a plan for selling on Amazon, you’ll need to create your Amazon seller account with your computer on Seller Central or the Amazon seller app.

This is where you’ll input your billing and deposit information, as well as your payment information and bank account info.

You’ll also need to create a username and password for your Amazon account. Make sure to choose a strong password that you won’t forget so you can easily log into Seller Central.

The Amazon Marketplace has two selling plans: Individual Seller Plan and Professional Seller Plan.

Each selling plan offers different features for a monthly subscription fee, so choosing the plan best suits your own brand and needs is essential.

Remember that you can always upgrade or downgrade your selling plan at any time, depending on your needs.

Individual Sellers

The Individual plan is free and allows individual sellers to sell fewer than 40 items a month. It is very limited in features.

It does not include access to Amazon’s Professional Seller tools which includes Amazon’s repricing tool, which can help maintain competitive prices. You also cannot apply to sell in additional product categories.

If you plan on selling more than 40 items a month or want to take advantage of Amazon’s powerful selling tools, you’ll need to sign up for the Professional Seller Plan.

The fee for the Individual Seller Plan is $0.99 per item sold, plus additional selling fees.

Professional Seller account

The Professional plan costs $39.99 monthly and allows you to sell more than 40 items monthly. You also get access to all of Amazon’s powerful selling tools.

The Professional Selling plan is for you if you decide to:

  • Advertise the products you have listed on Amazon.
  • Use the advanced selling tools that Amazon offers. These include the APIs and reports.
  • Qualify your product listings for top placement on the product detail page.
  • Start selling your own products in some of the restricted categories on Amazon.

4. Post Products

sunglasses item details

It’s time to start posting your products to generate sales for your Amazon business.

There are some things that anyone can sell, some things that only people with a Professional seller account can sell, some things that you need approval to sell, and some that third-party sellers cannot sell.

Amazon gives detailed information about what you can and cannot sell on their selling page.

Product Listings Detail

Like selling on Etsy or eBay, you must create a product listing detail. You’ll need to complete basic information about each product detail, including:

  • You’ll need a GTIN, UPC, ISBN, or EAN to identify the product you’re selling precisely. You can get a UPC from GS1 directly or request an exemption.
  • You create a SKU or product code to help you with inventory management to keep track of your own products. The offer details include the price, condition of the product, how many are available, and shipping options.
  • Essential product information for the product detail page, such as the name, brand, product category, description, and product images.

Options For Amazon Selling

Fulfillment By Amazon (FBA)

With FBA, you can store your products in the Amazon centers and scale to meet customer demand by using this service that provides pick up/shipping & customer support.

With the help of Amazon’s customer service via email, phone, and live chat tools, you can avoid hiring employees to handle complaints.

By outsourcing your customer service and returns, you can concentrate on selling. This saves time handling these tasks or hiring someone else to do it for you!

Selling & Shipping Directly

Get Paid For Amazon Reviews PARIS, FRANCE - JAN 13, 2018: Stack of Amazon Prime packages delivered to a home door woman trying to lift heavy boxes to do the unboxing

One of the great things about Amazon is that you can sell and ship your products directly to your customers if you want to.

You can pack up your items at FedEx or UPS and have control over the customers getting products.

Shipping the product yourself is an excellent option if you have a small number of products to sell. You’ll be able to get your products into the hands of your customers quickly and easily.

Amazon Handmade

You can create a shop and list your handmade products for sale, and Amazon will take care of the rest. You’ll be able to reach a large audience of shoppers, and Amazon will take care of all the shipping and handling.

To start with Amazon Handmade, you’ll need to create a seller account. Once you’ve done that and are accepted, you can apply to become an Artisan.

After being accepted in Amazon Handmade, you can start creating your shop and listing your products.

You’ll need to provide basic information about your products, such as product photos, descriptions, prices, and shipping options. Amazon will also need your contact information so buyers can reach you if they have questions.

Amazon Selling Fees

amazon selling fees

FBA Fees

There are fulfillment fees you’ll pay on Amazon as an FBA seller. You don’t have to pay for shipping, handling, or packaging when you’re an FBA seller.

Instead, Amazon will fulfill your orders and handle customer service for you with their own employees. The FBA fee you are charged is calculated based on the size and weight of your product.

Storage Fees

Amazon charges fees to keep your products in their warehouses:

Monthly Fee 

Amazon charges a monthly storage fee if you have inventory stored in their warehouse for over 9 months. You’ll pay $1.50 for every cubic foot of storage space you use.

If your Amazon account doesn’t have enough funds to cover the fee, it will be subtracted from your account balance or added to your credit card.

Long-term Fee 

If you store an item for more than 1 year, Amazon will charge you a Long-term storage fee. This fee is $6.90 per cubic foot of storage or $0.15 per unit, whichever is greater.

On the 15th, Amazon does a big clean-up of their inventory every month, checking all of the products in their fulfillment centers to see which ones have been there for 365 days or more.

Shipping Fees

Woman smiling unboxing Amazon cardboard

The shipping costs charged to sellers depend on your chosen Seller’s Plan.

  • Individual Seller plan -If you are selling items as an individual, you have to use Amazon’s set shipping rates. Even if the shipping costs exceed the total shipping credit, you still have to ship the order.
  • Business Plan – If you have the Professional plan, you set your shipping rates (except for books, music, video, and DVD products).

Whenever a customer buys your product, you earn a credit from Amazon that equals the shipping rate.

Subscriptions Fees

  • Individual Subscription fee – Sellers are charged $0.99 per item sold plus a referral fee, which is a percentage of the total sale price. The referral fee varies by category but is generally around 15%. 
  • Professional Seller plan – You will be charged $39.99 monthly, plus a referral fee (a percentage of the total sale price).

Posting Products

You enter a competitive marketplace when you post a product for sale on Amazon. It’s essential for brand owners to tell the brand story of their products through their product descriptions.

Amazon Product Categories

amazon product categories- short list

Choosing the correct category for your items is essential when selling products on Amazon. Different categories have different rules and regulations, and choosing the wrong one can lead to problems with your account.

Amazon’s search engine is very competitive and uses keyword research, so your product will appear in the search engines.

Product Descriptions

An essential part of any product listing is the product description. It is where you have the opportunity to tell the story of your brand and its products. You can also use this space on the product detail page on the brand registry to highlight key features and benefits of your products.

When writing product descriptions, it’s important to remember that potential customers will be reading them. Write in clear, concise language and use persuasive techniques to encourage customers to buy your products.

Getting Sales

As an Amazon seller, you want to ensure that you’re doing everything possible to get organic sales from the Amazon brand registry. Here are some tips to help you out:

Don’t Overprice- Or Underprice!

When pricing your items on Amazon, find the sweet spot between underpricing and overpricing. If you price your items too low, you may be sacrificing profits, and if you price them too high, buyers may look for similar items elsewhere.

Do your research and find out what other sellers are charging for similar items to ensure that you’re not undercutting them or overcharging.

Create Customer Ads

amazon optimizing

One of the best ways to get sales on Amazon is by creating customer ads. Customer ads are explicitly targeted to buyers who have previously viewed or purchased items from your shop.

There are a few things new sellers can do to create compelling customer ads:

  • Ensure your ad copy is catchy and relevant to the buyer’s interests.
  • Use images that are eye-catching and related to the product you’re selling.
  • Target your ads to specific demographics, interests, or behaviors.
  • Use dynamic product targeting to show customers ads for products they may be interested in.

Provide Quality Customer Service

One of the best ways to provide quality customer service is by using fulfillment services. Order fulfillment services take care of all the details of shipping orders, from packing them to sending them out.

Another way to provide quality customer service is by handling returns and refunds. If a customer is unsatisfied with a purchase, you should be prepared to issue a refund or exchange the product.

Offer Fast Shipping Options

One of the best ways to ensure buyers are happy with their purchase is by providing fast shipping.

There are a few things you can do to ensure that your buyers receive their orders as quickly as possible:

  • Ship orders from a fulfillment center near the buyer
  • Use expedited shipping methods such as Priority Mail or Express Mail
  • Offer overnight shipping
  • Ship orders in bulk whenever possible

FAQs

What products sell well on Amazon?

reading book with coffee

Amazon Bestsellers is one of the best places to start when you want to see what is selling well on Amazon. The Bestsellers list is broken down by category and is updated hourly, giving you a good idea of what products are selling well in various categories.

Here’s a small business idea: start a used book store selling books on Amazon. You can buy books that are discounted or on clearance at a bookstore and then sell them on Amazon.

Is retail arbitrage easy?

Retail arbitrage is relatively easy, but it requires research to find good deals and accurate pricing information.

Additionally, you’ll need to be prepared to package and ship your items quickly to meet Amazon’s shipping deadlines.

How does dropshipping work?

In dropshipping, eCommerce entrepreneurs sell products but don’t keep any products in stock.

The store owner contacts the supplier when someone buys something from them. The supplier ships the product to the customer’s house. Oberlo is a dropshipping app that allows you to add products from various suppliers to your shop.

Will I need a business license or tax ID to sell on Amazon?

You must supply a Taxpayer Identification Number (TIN) or your Social Security number. If you have an EIN for your business, that can be used instead. Can I be profitable selling on Amazon?

Can I be profitable selling on Amazon?

Yes, you can be profitable selling on Amazon. Many sellers make a full-time income by selling products on the site.

With a well-executed strategy, you can make a healthy return selling products on Amazon.

But there are other ways to make money on Amazon if you’re weary of starting a business, including becoming a  delivery driver.

How does Fulfillment By Amazon work?

Fulfillment by Amazon (FBA) is a service offered by Amazon that allows sellers to store their products in an Amazon fulfillment center, and Amazon will pick, pack, ship, and provide customer service for these products.

Because Amazon fulfills orders from its fulfillment centers, items sold through FBA are more likely to appear in Amazon search results and earn buy box placement.

Are there other selling platforms I can use?

how to Make money on Shopify

There are many other selling platforms that you can use in addition to Amazon. Some popular alternatives include eBay, Etsy, and Shopify. Each platform has its own advantages and disadvantages, so you’ll want to research which one is the best fit for your business.

How much do people earn selling stuff online?

Earning potential for selling items online varies depending on the products you sell, the amount of time you put into sourcing and listing products, and your selling strategy.

However, many sellers find they can be profitable by selling on Amazon.

Our Thoughts

happy business woman

We hope this article has given you some ideas on how to get started selling on Amazon. If you’re looking for a small online business idea, consider starting an online store with Amazon as your platform.

You can be up and running in no time and start making a profit from the comfort of your own home. With a bit of research and work, you can build a successful business selling products on Amazon.


Kelan Kline

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