Do you want to sell Amazon products? However, you are not sure how to sell on Amazon? Are you worried you can’t make any money? It’s natural to question yourself when starting something new. We have all been there and I promise if you get in with the right community and work hard it is possible to earn a living from selling Amazon products.
In this post, I will touch on a few of the main points you need to be aware of and then provide my recommendations for moving forward with your online business endeavours. Just remember anything is possible if you have the right mentors, training, tools and support.
Okay, let’s get started!
Do Your Research
Amazon allows you to browse bestsellers, trending items, and “most wished for” items by category. Research how much demand there is for the product(s) you want to sell, what the current prices are, and how many sellers are offering those items. Determine what categories of products you want to sell, and anticipate demand.
For the items you want to sell, look at the listings pages and note who the item is sold by. Items are usually sold by a specific seller listed in the blue “buy now” box, sold by Amazon.com in the blue “buy now” box or as the listing says, “available from these sellers” and invites the consumer to choose a seller.
Most Amazon customers will prefer to buy items sold directly from Amazon.com. If you want to sell an article and it’s listed as being sold by Amazon, it will be difficult for you to compete. As a new seller, it’s preferable to either sell unique items that only you provide, or to have a competitive advantage, however slight, over all other sellers of that item. Over time, you can earn your way to the premiere spot as one of the three featured sellers in a listing.
Once you know what you’ll sell and how you plan to compete, you can choose what kind of Amazon selling plan you want to create, and sign up. Amazon offers “individual” seller accounts, for those who plan to sell fewer than 40 items a month. They pay $0.99 per sale plus other fees. The other option is an Amazon “professional” seller account, which costs $39.99 per month plus additional fees. For our purposes, let’s assume you are a professional seller who wants to sell more than 40 items a month.
Fulfillment by Amazon
When you sell on Amazon, you can choose to ship sold items yourself. In that instance, Amazon is more like an Etsy or eBay; you use it as a marketplace, but then are responsible for transporting, packaging, and shipping items. You will deal with the buyer directly in the case of shipping damage or returns. This option has lower fees but is more work, and more risk.
The better option is “Fulfillment by Amazon.” In this instance, you ship all your items to be sold to an Amazon warehouse. When they receive your products, they check to make sure that everything is correct and then activate your listing. When an item is sold, Amazon themselves ships it to the buyer, and they also manage any damage or returns.
Depending on what you want to sell, and your current inventory management system, you may do the math and add up the costs of doing your own storage and shipping against the cost of fees for Amazon fulfillment. However, Fulfillment by Amazon is, in almost every instance, the better choice, for a straightforward reason: Only items that are fulfilled by Amazon are eligible for Amazon Prime.
Amazon Prime is a massive benefit for Amazon shoppers, and many will merely exclude non-Prime-eligible purchases from their search results. Because Amazon Prime is so important and such a buying incentive, for most sellers it is best to choose Fulfillment by Amazon even if it costs slightly more than your own costs would be.
Download the Amazon Seller App
The Amazon Seller App is an incredibly useful tool. It’s available for iOS and Android, and it does some critical functions for you as an Amazon seller. With the Seller App, you can:
- Estimate costs.
Scan the barcode of a product and check an estimate of the selling cost, Amazon fulfillment fees, and current listings on Amazon. You can estimate your profits on a product before you buy it and determine if it’s an excellent choice for you
- Manage Inventory
The Seller App gives you real-time inventory levels and can be set to send you inventory alerts if your stock is running low
- Manage Prices.
The app will also send you price alerts on demand if prices change
- Manage Your Business.
You can see the status of your sales, respond to buyer messages, manage campaigns, and more.
The Amazon Seller App is essential for handling your Amazon sales from where ever you are and gives you valuable information that helps you be successful on the platform.
Creating a Listing on Amazon
On Amazon, unlike Etsy or eBay, if an item is already listed and has a product detail page, you can merely add yourself as a seller of that item without creating a new listing. This is a huge time-saving feature, mainly when you are selling everyday objects like books or games. It also invites a direct, immediate comparison between you and other sellers.
If you are creating your own unique listing on Amazon, copy the most successful listings on the platform. Include plenty of bright, well-lit, high-resolution photos. Provide as much specific detail as possible. Use video if you can. Be precise and accurate in your description, letting buyers know what they can expect. Inaccurate listings are one of the biggest causes of negative feedback, and it’s easily preventable.
Winning the Buy Box
The “Buy Box” is the blue area surrounding the “buy now” button. The vast majority of buyers of an item will click that button to buy that item from that seller, and will not further comparison shop that item against other sellers. It’s Amazon’s “stamp of approval,” and it’s the premier place for a seller to be.
Placement in the buy box is driven by an Amazon algorithm, and the precise method isn’t public knowledge. However, priority always goes to sellers with an excellent feedback rating, sellers with a competitive price, and sellers who use Fulfillment by Amazon. Many factors can place you in the buy box, but a history of excellent customer service and good citizenship on Amazon get you most of the way there.
An Alternative Way to Make Money With Amazon
There is another way to earn money with Amazon and that is to build your own niche website and sign up for their affiliate program. I believe this is a better method because:
1. There is Less Competition – you can find a specific niche and become an authority.
2. It is a Better Deal – join a community with a yearly membership. It will cost you less but provide so much more. We are talking training, hosting, keyword tools and most importantly community support from successful members.
Setting up websites these days is easy – it is mainly a question of clicking buttons. Building an online business is not technically difficult, the challenge is remaining motivated and having the patience to see whatever you decided to do through to the end.
There are two programs I recommend if you are interested in Amazon. The first is the Seven Figure Cycle, although it only opens membership once or twice a year. In addition, it is quite expensive to join.
The other is Wealthy Affiliate – it shows you how to build a business selling Amazon and other affiliate products. It is action based training so by the time you have completed the courses your business is up and running.