Amazon has taken the lead as the primary online shopping destination, with 44% of consumers beginning their shopping journey there (an increase of 11% over Google), and 40% of Americans making at least one purchase per month.
Selling on Amazon is a great option if you work in the e-commerce sector and if you want to increase your audience and, ultimately, your profits. A third-party seller on the platform who uses Amazon's Fulfillment by Amazon (FBA) service to process client orders is known as an FBA seller.
The following query is, "What is Amazon FBA?"
FBA, or Fulfillment by Amazon, stands for. The service enables third-party retailers to contract with Amazon for the storage of their inventory, order fulfillment, and customer care. In other words, Amazon assists sellers with inventory storage, order packing and shipping, and customer service.
The pricing of the FBA program, which is offered for these services, is listed on Amazon's assistance page.
FBA is in contrast to the FBM (Fulfillment by Merchant) approach. Under FBM, vendors handle inventory management, order fulfillment, and customer service on their own.
You won't have to worry about finding storage space for your merchandise if you decide to become an FBA seller. Order fulfillment, customer support, and return administration will also rank low on your list of concerns.
But how can you do it? Here’s a comprehensive guide on how to become a seller on Amazon before we dive into the hacks behind making an exceptional amount of money per month.
Steps to Become a Seller on Amazon
- Find Profitable Products
On Amazon, there are over 12 million things listed in over 32 different product categories, so if you're just getting started, you should look for the top-selling items. Without any background knowledge, picking a random product will put you at risk of losing money. The first step to success on Amazon is selecting the ideal product for your shop.
- Finding Suppliers
Finding a supplier to source the product is the next stage after identifying a profitable product to sell. One of the trickiest parts of launching an Amazon company is finding products. The majority of retailers buy their goods from both regional and international producers. The standard for sourcing products is to use online marketplaces like AliExpress and Alibaba.
- Create a Seller Account and Set Up FBA
To create a seller account, you’ll have to meet up with some requirements:
- A government-issued identification card
- Tax information
- Credit card (this will be used to charge you)
- Active bank account and bank routing number (this is where AMZN will send your money)
- Phone number
You must then decide on a selling strategy. Amazon offers both individual and professional selling plans.
Individual Plan: You can create this one for free, however, Amazon will charge you $0.99 in commission for each sold unit. If you are still testing the waters and need help deciding what to sell, this is a fantastic place to start.
Professional Plan: The cost of this plan is $39.99 per month. However, it also gives you access to more options and marketing resources, such as Amazon's PPC (pay-per-click) advertisement and restricted categories.
4. Create your listings
Make sure while listing your products, you:
- Use appealing, clear product photos in your listings.
- Put keywords in the product descriptions and titles.
- Include ratings and reviews in your listings
- Sell your items' advantages rather than their qualities.
- To make your descriptions easier to read, use bullet points.
5. Prepare and Ship Your Products to FBA Fulfillment Centers
You must prepare and ship your goods to Amazon's warehouses if you plan to sell through FBA. Ensure that your things are correctly labeled, packaged, and protected from harm before shipment by following Amazon's preparation and packaging guidelines. Reputable freight forwarding companies can assist you to ship your goods to fulfillment centers.
This is how you can become a reputable seller on Amazon. But how to up your game one step further? Here’s our take on how -
4 steps to make $1000/month on Amazon
- Select your product niche:
After determining whether you want to use the FBA system or send products directly to customers, you can begin concentrating on developing an established, positive brand on Amazon. When you increase your inventory and begin offering things for sale in the Amazon Marketplace, the process of selling on Amazon officially starts.
It's crucial to have a plan in place before selecting your product niche. You can keep better track of which products are selling and which are not by focusing on a single product category.
When you discover an appropriate niche, you may sell online without having a fiercely competitive market take your consumers. However, whether it's matcha tea or minimalist timepieces, this process begins with an impartial investigation of the product niche.
To find out how many other companies are selling things identical to yours, perform a Google Shopping search for the product. View the prices for the minimum advertised price (MAP).
- Set attractive prices:
You must price your things competitively if you want them to sell. Your customer base can be negatively affected if you price your goods higher than your rivals. You must increase customers’ trust in Amazon as well because 91% of consumers choose trustworthy brands when making purchases.
It's possible that Amazon will start promoting your products after you get the credibility and begin to make sales. In the "Customers who bought this item also bought" section of the product detail page, Amazon automatically recommends additional products.
The following technique is used when deciding on the price for your product:
- Have a profit margin between 66% and over 50%.
- Set your item's price between the MAP and MSRP ranges.
- Be aware of your cost of products sold (COGS).
- Keep in mind to include extra charges like the commission on purchases from Amazon, Amazon FBA fees, customer return fees, expenses you have spent for returns, overhead costs, packaging and shipping costs, and other category-specific charges. For instance, due to the high rate of consumer returns for certain items, Amazon vendors selling clothing will suffer fees particular to the category.
3. Work on your Product Page Ranking
You can get your products to page one results when you invest in Amazon SEO strategies like the following:
- Relevant product title
- Your Amazon backend keywords
- Your product’s price and conversion rate
- Your Amazon reviews
- Your product’s price
Use high-quality product photos to attract more people to your product.
4. Include product details
Simply outlining the fundamentals of your goods on Amazon won't cut it if you want to succeed. For merchants, Amazon keywords are everything. The vast majority of Amazon sales come from natural product searches. You risk losing out on traffic to your products and sales if you haven't optimized your product descriptions, checked your grammar, and implemented SEO.
If you are prudent, put a well-thought-out plan into action, and successfully market your company, you can make a tremendous amount of money by selling on Amazon. Hope this article helps to make that journey easier for you!
Check out this article to learn about effective strategies for promoting your brand on Amazon.