How to Sell on Amazon?

Amazon, the largest and fastest-growing online marketplace, welcomes over 4.7 billion monthly visitors. That's more than the combined monthly visitors of eBay, Rakuten, AliExpress, Etsy, and Walmart. Whether you are a seasoned seller looking to expand your reach or a newcomer eager to tap into the lucrative e-commerce market, Amazon should be where most of your budget goes.

 

Every successful Amazon business started small and followed the same roadmap. This comprehensive guide walks you through that very roadmap and provides practical tips for thriving in your chosen niche. From setting up your seller account and optimizing product listings to navigating Amazon's policies and leveraging advanced marketing strategies, we cover every aspect of the selling process.

 

Choose between "Individual" and "Professional"

 

The first step is to choose a selling plan. Amazon offers two types of plans—Individual and Professional. With an individual plan, you pay Amazon a $0.99 commission for every sale you make. With a professional plan, you pay $39.99 per month, regardless of your sales.

 

The professional plan gives you access to features and benefits not available with the individual plan. For instance, you can win the buy box, sell in gated categories, register your brand, and integrate with third-party software. You can even upgrade to A+ Content to enhance your store's appearance.

 

Tip: If you aren't expecting to earn at least $50 a month upon signing up, start with the individual plan. As you scale your online business, you can then switch to the professional plan.

 

Set Up Your Seller Account

 

You need a seller account to sell on Amazon, which is different from the personal account you use for shopping. The seller account is exclusively for sellers. To create an account, visit sell.amazon.com, complete the form, and verify your email address.

 

Amazon will require personal and business information or documents, including phone numbers, tax details, a government-issued ID, bank account and routing numbers, and an internationally chargeable credit card. Once your account is approved and ready, configure it to complete or adjust the existing information.

 

Tip: Prepare all the necessary information and documents before creating an account to ensure a smooth process. Do not leave any field empty, even those without asterisks, as it might affect your store's optimization. Additionally, ensure that the name of your Amazon business matches the business name registered with your state.

 

Register Your Brand

 

If you have a registered trademark or a pending application, you can enroll in the Amazon Brand Registry. Amazon provides registered brands enhanced protection and control over their intellectual property rights. It prevents bad listings from being published to ensure all traffic and sales go directly to your store.

 

Registered brands can also access Amazon's catalog to check for potential trademark, patent, design, or copyright breaches. If you think your patent has been infringed, Amazon can help you file a dispute more quickly and at a lower cost.

 

List Products

 

Once your seller account is ready, it's time to list your products. There are two ways to do it. If your products already exist on Amazon, you can list them by matching an offer to the existing product detail page. If your product isn't on Amazon, you must create a new listing and enter all the necessary information.

 

A listing contains seven key elements: a title, images and videos, variations, bullet points, a Buy Box, and a description. If you are a First-Party vendor or Amazon purchases your products to sell on the platform, consider using the A+ Content feature, which allows you to upload high-resolution images and comparison charts and display them in various formats. 

 

Whether you have a standard product page or an A+ Content page, the rule of thumb is to make your product information as detailed, transparent, and digestible as possible. Also, you can only upload 9 images to each listing, 6 if you add a video. Make the most of it by including lifestyle images, infographics, and posters that show size comparisons.  

 

Tips on Pricing

 

To ensure your pricing is competitive, the total of your standard item price and shipping costs should not exceed the competitive external price (the lowest price for an item available from major retailers outside of Amazon).

 

Take advantage of the "Featured Offer." Customers see this prominently displayed offer at the top of a product detail page, marked by 'Buy Now' and 'Add to Cart' buttons.

 

Always check the lowest Amazon price (the minimum price at which any seller currently sells a product on Amazon) and decide whether to match or undercut it. 

 

Choose a Fulfillment Method

 

One of the aspects that online sellers love about Amazon is its variety of fulfillment options. Many are familiar with FBA and FBM, but there are other options that cater to more specific needs.

 

Fulfillment by Amazon (FBA)

This option lets you keep your products in Amazon's warehouses, and Amazon takes care of packaging, shipping, customer service, and returns. It also qualifies products for Amazon Prime, boosting their visibility and sales.

 

Fulfillment by Merchant (FBM)

Amazon allows you to fulfill orders yourself or through a third-party logistics service instead of using FBA. This gives you more control over your inventory and shipping, but you must also handle customer service and returns.

 

Seller Fulfilled Prime (SFP)

This hybrid model lets sellers provide Prime benefits and ship from their own facilities. To qualify, sellers must meet Amazon's strict delivery speed and customer service standards. This option also allows sellers to show the Prime badge on their listings without using FBA.

 

Amazon Easy Ship 

Sellers keep their products at their own locations, and Amazon handles the delivery to the customer. This option, available in some countries, blends elements of FBA and FBM by managing delivery while sellers control their inventory.

 

Multi-Channel Fulfillment (MCF)

This service lets sellers who use other platforms besides Amazon use FBA for all their sales channels. Amazon stores the inventory and fulfills orders from both Amazon and non-Amazon sales channels.

 

Promote Your Product

 

 Competition is the biggest challenge you will face when building your Amazon business. You must invest in a good mix of advertising solutions to bring your brand forward and in front of many eyes. Here are several options. 

 

  1. Optimized Listings: To enhance visibility, optimize listings by including relevant keywords, high-quality images, and detailed descriptions. 
  2. Amazon Advertising: Allocate a budget for Amazon's main ad placements, which include sponsored products, sponsored brands, and sponsored display ads. 
  3. Deals and Promotions: Consider giving away coupons, Buy One, Get One Free, and lightning deals. 
  4. Amazon Stores: Build a branded storefront to showcase your entire catalog, tell your brand story, and provide a curated customer shopping experience.
  5. A+ Content: Enhance your product descriptions with rich texts and images to help customers make informed buying decisions and improve conversion rates.
  6. Amazon Live: Use live videos to showcase your products in action. This feature lets brands interact directly with customers through live demonstrations and Q&A sessions.
  7. Amazon Influencer Program: Collaborate with influencers who can promote your products through their social media and Amazon pages.
  8. External Traffic: Drive traffic from outside Amazon using social media, email marketing, or your website. Use Amazon attribution to track the effectiveness of these campaigns.

 

Maintain Excellent Account Health

 

Maintaining excellent account health can protect your account from suppression, suspension, or deactivation. Here are a few reminders.

 

  • Keep your late shipment rate (LSR)—the percentage of your seller-fulfilled orders that have a shipping confirmation after their expected shipping date—below 4%.
  • Keep your pre-fulfillment cancel rate (CR)—the percentage of seller-fulfilled orders you cancel—below 2.5%.
  • Aim for a valid tracking rate (VTR)—the percentage of packages from your seller-fulfilled orders with a valid tracking number—above 95%.
  • Improve your customer service by keeping your order defect rate (ODR)—the percentage of returned orders due to defects—below 1%.
  • Address any policy violations listed on your Account Health dashboard immediately.

 

Boost Your Online Business: Launch Your Amazon Store Now!

 

 Amazon offers the ideal landscape and resources for taking online businesses to new heights. The instructions in this guide, including selecting the right selling plan, implementing effective promotional strategies, and maximizing Amazon's fulfillment options, give you an unfair advantage over other brands in your niche.

 

Once you master the sales process, scale your profit margin. Venture into gated product categories. Explore other business models and advertising solutions that align with your goals. Be bold and take risks as long as your actions are backed up with data.