How to Sell on Amazon: Guide 2023

Are you looking for a guide to selling on Amazon? Don't worry, your search ends here.

Selling on Amazon is one of the best ways to build a sustainable business and earn passive income. But, I have to warn you that if you are thinking of “get rich quick” selling on Amazon, then this article is not for you.

To become a successful Amazon seller, it takes time, money, and endless effort. And that is precisely what I am going to tell you in this post .

In this post, I will share with you a beginner's guide on how to sell on Amazon. I tried to cover all aspects, including how to find a product to sell, how to create an Amazon seller account, and how to choose the right fulfillment method so you don't miss out on anything important.

 

So let's get started!

7 steps to sell on Amazon in 2023

1.Find a product to sell on Amazon

People visit Amazon because they want to find something of value or something they need at relatively affordable prices. With this in mind, the first thing you have to consider to sell on Amazon is to know what niche or what type of audience you want to target.

To find this out, do extensive market research and find products that are not only trending but also fit your niche interests. Try to have some basic knowledge (or be willing to learn) about the products you are going to sell, this way it will be easier for you to sell them.

Make sure you have an objective analysis of your niche. You can use tools like Google Shopping to get a better perspective on how many sellers are selling the same product and to make price and quality comparisons.

Now that you've identified your niche, you can start looking for products to sell and their suppliers, should you need them. Keep in mind that your products have the potential to help make or break your brand. In fact, the first products you introduce and try to sell on Amazon are crucial, as they can drive sales and encourage your first customers to buy from your Amazon store again.

How to choose a product to sell on Amazon

When choosing a product, consider these factors:

• You must be able to generate sales.
• You must have an impact on your customers.
• Your product should be easy to sell and ship.
• Products must not belong to any category that is restricted by Amazon.
• If the product is easy to obtain from your supplier.

When researching potential products to sell on Amazon, check out all other e-commerce platforms, such as Alibaba and eBay, and other stores that sell those products.

You can also use a keyword research tool. Keyword reports ( keywords ) can give you an idea of ​​the products people are often searching for online. This will also help you estimate the potential demand for your product.

If you are thinking of opting for Amazon FBA for the logistics management of your orders, you must take into account the FBA rates corresponding to your products. To check FBA fees, you can use Amazon's free FBA fee tools, including a revenue calculator, fee preview report, and referral fee preview report. We will discuss more about Amazon FBA later .

Ideally, your products should have high profit margins and be compact enough to minimize additional storage and/or shipping fees.

2.Create a seller type account

To start selling on Amazon, you need to create a seller account. You will need to complete a registration and choose a selling plan for your account.

To complete the registration you need:

• Your bank account and routing number
• Government-issued ID (individual sellers may use social security number)
• Credit card
• Tax Information
• The legal form of your company
• Phone number

In addition, you will need to choose a selling plan for your account. There are two sales plans on Amazon: Individual and Professional .

individual selling plan

The Individual plan is a standard selling plan that costs you $0.99 per sale. That is, you will have to pay Amazon $0.99 for each sale you complete through its platform.

With this plan, you are limited to selling only 40 items or less in a month. You will also lose access to some advanced tools. However, this plan can be an excellent option for someone who is starting to make their first Amazon sales.

Professional sales plan

The Professional plan is a premium subscription that costs you $39.99 per month with no sales limit. With this plan you will also get access to APIs and sales programs like Launchpad and Handmade . In this way you will have more analysis tools and access to certain platforms that will help you increase your sales on Amazon.

3.Select a logistics management method

Once you have your seller type account, and some products that you plan to sell, you must decide and select how you are going to get the products to your customers. That is, how you will fulfill the orders you receive.

With Amazon, you have two options. You can fulfill your own orders, using the “fulfillment by merchant” option , or you can choose to have Amazon take full responsibility for the entire fulfillment process, from packaging to shipping, with its program Fulfilled by Amazon ( FBA ).

Fulfillment by merchant (FBM)

With merchant-fulfilled orders, you do the warehousing and shipping of your products. Amazon will charge you shipping rates based on a number of factors, such as the category of the product and the shipping service your customer selects. But, with this method, you can save yourself the storage, packaging and shipping fees charged by Amazon FBA .

Fulfillment by Amazon (FBA)

The Fulfillment by Amazon method is a less stressful option that Amazon offers. In this method, you get the products and ship them directly to Amazon warehouses. After that, Amazon handles the entire order fulfillment process. However, you need to pay additional storage and an FBA fee to handle the fulfillment.

4.Customize your store

Now that you've selected a logistics management method, it's time to give your store a proper look. In this step, you can add your brand and logo to display in your store. You can also choose a pre-designed template to give it a striking and more attractive look.

5.Publish your first product

After customizing your store, you can start adding your products so shoppers can find them on Amazon. The product listing process is a crucial step in giving your product proper exposure. We will talk about these strategies later in this article.

To create your first product listing you will need:

• SKU (Stock Keeping Unit): SKU stands for Stock Keeping Unit. A retailer typically uses SKUs to identify their business' inventory. SKUs help track products from supplier to customer and keep proper inventory control.
• Product Title: The title name of your product, along with the brand name, model name, or unique identifiers.
• Product Description: Complete information about your product, including features and benefits.
• Product Images: Authentic, high-quality images of your product. Upload 4-5 images from different angles.
• Keywords : These are keywords that you add to a product listing that buyers often use to search for a particular product . These do not appear in your list as such, but they are the most used words when a customer wants to find products like yours.

6.get your products

Sellers on Amazon often use all three of these methods to source the products they sell. All vendors tend to: manufacture their own products, source their products from a vendor, or (if their products require any graphic printing) use a print-on-demand vendor .

made by seller

In this method, you get the products by making them yourself. There are several benefits of making your own products to sell on Amazon such as:

• Control over product quality: By making your own products, you have full control over the quality of materials and the manufacturing process, which can help you produce a higher quality product.
• Potential Savings: By making your own products, you can save money on the costs of purchasing products from a supplier or wholesaler.
• Ability to customize products: Making your own products allows you to customize the design and features of your products to meet the specific needs and preferences of your customers.

Suppliers

If you do not produce your own products, you can look for an external supplier to obtain them. You can search the Internet to find a reputable and reliable provider.

Alibaba can be a great option to start with. You can find suppliers from all over the world just by putting the name of the product you plan to sell on Amazon.

Printing on demand (Print-on-demand)

If you plan to sell a product with any graphic printing, print on demand is a great way to source your products.

You can find a reliable POD partner from whom you can order products in bulk and sell on Amazon. With this method, you can upload your own designs and artwork to print on products such as: t-shirts, hoodies, mugs, crocs, keychains, etc.

Whatever type of sourcing you choose for your product, try to always keep your inventory balanced and available.

Remember that as consumers we are used to having everything almost instantly. If you don't maintain your
inventory or run out of product, you may lose your positive ranking and some of your Amazon customers.

7. launch your store

Now that you've done all the minimal steps to set up your store and add a few products, it's time to officially launch your Amazon store.

Before this, you must "submit" your store for one last review and get approval from the Amazon team to sell on their platform. This process can take a few days, so I suggest you be patient and do other things while you wait for approval.

Once approved, your store will automatically launch on Amazon and you will be notified via email or text message.

An advice. After the successful launch of your store, buy a product from your own store from your personal Amazon account or that of a friend or family member. This to verify if everything is in order or not (such as order fulfillment, payment process and shipping time).

Benefits of selling on Amazon

There are several benefits of selling on Amazon, these include:

Large customer base

Amazon is one of the largest and most popular e-commerce platforms in the world, with millions of active users. By selling on Amazon, you will have access to a fairly large and diverse customer base that you may not be able to access through your own website or other channels.

Trust and credibility

Amazon is known for its customer service and reliable shipping, which can help build trust and credibility with your customers.

easy to start

Amazon provides a simple and straightforward process to set up a seller account and start selling on Amazon. There are also a variety of tools and resources available to help sellers succeed on the platform.

Fulfillment by Amazon (FBA)

With FBA, Amazon will take care of warehousing, shipping, and customer service for your products, allowing you to focus on other aspects of your business.

Access to Amazon marketing tools

Amazon provides a variety of marketing tools and resources to help sellers promote and advertise their products to customers, including sponsored ads and product listings.

global reach

Amazon has a global presence, which means you can sell your products to customers around the world and potentially expand your business beyond your local market.

Advice / tips to sell on Amazon

Here are some tips for selling on Amazon:

Choose the right product

It is important to choose a product that is in demand and has a good profit margin. Research competitors and look for products that have low competition and high demand.

Optimize your product listing

Your product listing (your product information) is the first thing customers see when they search for a product on Amazon. Be sure to include detailed and accurate product descriptions, high-quality images, and relevant keywords to help your listing rank higher in search results.

Set a competitive price for your product

When selling on Amazon it is important to set a competitive price for your product to help it sell. Research the prices of similar products and consider factors such as product cost, shipping costs, and your desired markup when setting your price.

Use Amazon marketing tools

Amazon provides a variety of marketing tools, such as sponsored ads and product listings, to help sellers promote their products to customers. Using these tools can help you increase the visibility of your products and boost sales.

Manage your inventory

Proper inventory management is important to maintaining a good seller rating on Amazon. Be sure to monitor your inventory levels and restock as needed to avoid running out of stock.

Provide excellent customer service

Providing excellent customer service is key to building a positive reputation and selling on Amazon. Responds to customer inquiries and complaints in a timely and professional manner, and works to resolve any issues that may arise.

Frequently Asked Questions about selling on Amazon

How much does it cost to sell on Amazon?

Depending on the selling plan you choose, you can pay $0.99 per item sold or a flat monthly fee of $39.99. You should also be aware of any miscellaneous fees that will be charged to your account, especially if you choose to use Amazon FBA for order fulfillment.

What products are restricted on Amazon?

Please refer to Amazon's terms and conditions for restricted items to ensure that your items do not violate any laws or regulations. In this case, some of the restricted products include:

• Alcohol
• Animals and animal related products
• export controls
• Devices for picking and picking locks
• electronics recycling
• Guarantee

How much money do Amazon sellers make?

A beginning seller can earn between $1,000 and $2,500 each month selling on Amazon, but it also depends on the performance of your products and customer loyalty. There are some sellers who earn up to $50,000.00 per year selling on Amazon.

Be encouraged to sell on Amazon!

Selling on Amazon can be a lucrative and rewarding business opportunity for individuals and small businesses. Let's remember that to be successful on the platform, it is important to follow some key steps:

• Research and select a profitable product to sell.
• Set up your seller account and create a seller profile.
• Optimize your product listings.
• Price your products competitively and offer excellent customer service.

By following these steps, you will increase your chances of building a successful business as a seller on Amazon.

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