Fashion continues to rank third among Amazon's most popular categories in 2024, indicating its profitability for clothing sellers. However, this popularity brings about heightened competition, leading to an influx of sellers vying for market share on the platform.
But don't let this discourage you. There are myriad ways to make your products stand out, even in a high-competition niche. Amazon offers tools like Amazon Storefront, PPC, and A+ Content to help you showcase and advertise your products effectively. Use them to your advantage, and don't be afraid to scale your business.
If you still doubt your decision to break into the clothing business, consider this: Fashion makes up 20% of Amazon's inventory, and 87% of clothing sellers have made a profit. So, there's only a 13% chance of failure. That's a pretty low risk, don't you think?
How to Sell Clothes on Amazon
Here's a straightforward guide to building a clothing business on Amazon and some tips for enhancing your listings and boosting sales.
Step 1: Create a Seller Account.
Are you new to Amazon? Start by creating a Seller Account. This is different from the business account you might already have. It is for selling on Amazon. You can register here.
If you have an existing Seller Account and are planning to try a new product category, all you need to do is check if your chosen category is restricted or requires ungating. Since Amazon Fashion, where the products you want to sell belong, isn't a restricted category, you can start listing products without additional requirements.
Step 2: Decide what types of clothing you want to sell.
Clothing is a huge niche. The fact that there's a separate set of clothes for men and women shows you how diverse the choices are. It could even stand as its own product category if Amazon didn't lump it with shoes and jewelry. Some inventory suggestions include:
- Dresses
- Jeans
- Coats
- Jackets
- Lingerie
- Shirts
- Sweatshirts
- Hoodies
- Pants
You can include all types of clothing in your inventory as long as you can consistently source them. However, selling a few types, particularly the most profitable ones, is an excellent first step. You can narrow your choices further by selecting according to your target market's age range, fashion style, or even culture.
The key is to back your selection with meticulous product and market research. Tools like SmartScout, AMZScout, and Helium 10 can simplify your research and give you the most accurate results.
Step 3: Choose how and where to source your products.
During your product and market research, consider where you will source your products. You can't just pick a random clothing type only to realize you can't source it locally, logistics are a nightmare, or it costs a lot to produce.
First, decide on your business model. This will give you an idea of what sourcing methods you should use, the logistics involved from sourcing to selling, and your role in the entire sales process. Amazon sellers can use any of these five business models:
- Wholesale: You purchase products in bulk at discounted prices and sell them for full prices on Amazon. Choose a legitimate and compliant supplier and inquire about minimum order quantities (MOQs), cost per unit, and extra fees.
- Private Label: Source your products elsewhere and sell them on Amazon under your own brand. It's almost similar to wholesale, except your supplier exclusively sells their products to you.
- Dropshipping: If you want to avoid product prepping and shipping altogether, this is the best business model for you. When someone buys your products, your supplier will pack and ship them.
- Arbitrage: You buy undervalued clothes from a retail store or online marketplace and sell them on Amazon for high prices.
- Handmade: You manufacture your products. You can either do the prepping and shipping yourself or outsource it to a prep center. If you prefer DIY, enrolling in FBA makes shipping easier.
Here's a tip: Choose a business model that suits your product choice, budget, preferred prepping and shipping method, and brand. For instance, if you want to establish yourself as a go-to resource for high-quality clothing, Handmade or Arbitrage may be your best bet. If you decide to manufacture your products, you can use premium materials. If you choose to flip products, you can focus on buying branded ones; many are on eBay and Facebook Marketplace.
Step 4: List your products.
Before listing your products, Amazon will require you to provide your shipping address and Goods and Services Tax (GST) details. They must approve this before you can access the product listing feature.
Important: Photograph your products, prepare all graphics (including comparison charts and infographics), and type out the description before listing them. This way, you can proofread your content, remove unnecessary images, and input details quickly. Also, include lifestyle images to make your listing more eye-catching and increase your click-through rate. Be as descriptive as possible in your descriptions, but keep SEO in mind, meaning add relevant keywords for better visibility.
Amazon offers A+ and A++ Content for Professional Sellers. If you qualify, don't hesitate to use this feature, which can significantly elevate your listings. A+ and A++ Content allows you to present your products more creatively, one that fits your chosen niche well.
Take advantage of Amazon Storefront as well. This feature allows you to create your custom website within Amazon. Unlike a regular listing, this will enable you to use the entire product page for yourself—no other ads or information that distract shoppers. It's an upgraded version of A++ Content.
List your products for competitive prices, factoring in sourcing costs and shipping and storage fees. A repricing tool like Flashpricer and Bqool can help you automatically adjust the price of your products according to trends. You should also factor in the cost of returns since clothing accounts for 75% of all returns on Amazon.
Lastly, a process for order fulfillment must be set up. Think through the prepping and shipping process from start to finish, especially if you're not planning to outsource any task yet. Allocate a space in your house for inventory storage, but as you scale, you may consider using FBA to be less hands-on and focus on core tasks.
Step 5: Promote your listings.
Experienced sellers understand that introducing a new product on Amazon demands significant effort. Just listing it and waiting won't work. You must promote it to appear on the first page of search results, where 70% of shoppers make purchases. This is especially important in competitive categories like fashion.
To get your product on the first page of search results, use pay-per-click (PPC) advertising. This involves bidding on keywords related to your product on Amazon. You pay for each click on your ad.
If you think PPC isn't enough, consider offering promos, such as percentage off, free shipping, and 'buy one get one.' This is a common practice in any marketplace during a product launch. To create a promo, log in to your Amazon Seller account, go to 'Advertising,' and click 'Promotions.' You'll find detailed instructions on how to set up each promo Amazon offers.
Step 6: Consider outsourcing prepping.
If you've been a seller for a long time and manage several other stores, outsourcing prepping and shipping could be a game-changer. It frees up not just space in your home or warehouse but also your schedule. You can spend the time saved on core tasks like product research and sourcing.
Having a prep center handle your products also ensures consistency. Just ensure the company you choose specializes in Amazon products, mainly clothing. They must be experts at Amazon fulfillment, ensuring each item has the correct packaging and label, especially if you use Amazon FBA and store your items in an Amazon warehouse.
Sell Clothes on Amazon Now!
Register your brand with Amazon to qualify for all programs that can optimize your brand presence. Features like Amazon Storefront and A+ Content are only accessible to brand-registered accounts. Also, consider upgrading to a professional plan if you haven't already done so. This often goes hand in hand with brand registration.
These investments put your Amazon business in the upper bracket, making your clothing items stand out among most sellers. Of course, you can also invest in other promotional methods, such as social media marketing, blogging, influencer marketing, and affiliate marketing, to drive more traffic to your Amazon store.