How to Sell on Amazon: A Step-by-Step Guide for Beginners
Amazon Marketplace
Selling on Amazon can be a game-changing venture for entrepreneurs and businesses alike. As the largest online retailer globally, Amazon offers sellers access to an expansive audience and tools to grow a thriving business. Whether you’re launching your first product or scaling an existing operation, this detailed guide on how to sell on Amazon will show you exactly how to succeed in the marketplace.
Why Should You Sell on Amazon?
Before diving in, here are some compelling reasons to sell on Amazon:
- Massive Market Reach: Over 300 million active customers.
- Prime Advantage: With over 200 million Amazon Prime members, products listed as Prime-eligible often get more visibility and sales.
- Built-In Trust: Amazon’s reputation ensures customers feel secure buying from its marketplace.
- Scalable Platform: From small businesses to global brands, Amazon caters to all sizes.
- Convenient Infrastructure: Tools like Fulfillment by Amazon (FBA) streamline operations.
Step 1: Understand Amazon’s Selling Plans
Amazon provides two main selling plans: Choose a plan that aligns with your current and projected sales volume.
Individual Plan
- Best for: Selling fewer than 40 items per month.
- Cost: $0.99 per item sold + additional fees.
- Features: Limited tools and analytics.
Professional Plan
- Best for: High-volume sellers (40+ items/month).
- Cost: $39.99/month + additional fees.
- Features: Advanced reporting, bulk listings, and eligibility for promotions like Buy Box.
- Personal Information: Name, address, and phone number.
- Business Details: Company name and tax information (EIN for U.S.-based sellers).
- Payment Information: Bank account and credit card for transactions and fees.
- Government-Issued ID: Passport or driver’s license for verification.
Step 3: Research and Select Products to Sell
Tips for Finding Profitable Products
- Identify High-Demand Items: Use tools like Jungle Scout, Helium 10, or AMZScout to analyze sales trends.
- Focus on Low-Competition Niches: Avoid categories saturated with established sellers.
- Check Profit Margins: Account for Amazon fees, shipping costs, and manufacturing expenses.
- Seasonal vs. Evergreen: Decide whether you want to sell year-round staples or seasonal products.
Step 4: Source Your Products
Once you’ve decided what to sell, find reliable suppliers.
Where to Source Products
- Domestic Suppliers: Faster shipping and easier communication.
- International Manufacturers: Platforms like Alibaba offer cost-effective solutions.
- Private Label: Brand generic products with your logo for differentiation.
Things to Consider
- Request samples before committing to a bulk order.
- Negotiate pricing and terms for better profit margins.
- Ensure compliance with Amazon’s product quality guidelines.
Step 5: Set Up Product Listings
Essential Components of a Product Listing
Include primary keywords and make it descriptive. Example: "Eco-Friendly Stainless Steel Water Bottle – 20 oz, BPA-Free, Insulated for Hot/Cold Drinks".
Use high-quality images showing different angles and uses. Include infographics to highlight features.
Highlight key features and benefits in concise, scannable points.
- Write engaging content that explains the product’s value in detail.
Add hidden search terms to boost discoverability.
Pro Tip
- Use Amazon’s A+ Content feature (available for Professional Plan users) to create visually enhanced product descriptions with images and comparison charts.
Step 6: Decide on Fulfillment Method
Amazon offers two primary fulfillment methods:
Fulfillment by Amazon (FBA)
- Amazon handles storage, packing, and shipping.
- Provides Prime eligibility, increasing sales potential.
- Charges include storage fees and fulfillment costs.
Fulfillment by Merchant (FBM)
- You handle shipping and customer service.
- Ideal for larger or bulky items where FBA fees might be high.
Which One is Right for You?
- Choose FBA for convenience and scalability.
- Opt for FBM if you want more control over logistics.
Revenue Calculator
To calculate your fees accurately, use Amazon’s FBA Revenue Calculator for estimates based on your product and pricing.
Step 7: Launch Your Product
Once your listing is live, focus on generating initial sales and reviews.
How to Drive Sales
- Run PPC Campaigns: Use Sponsored Products and Sponsored Brands to boost visibility.
- Offer Discounts: Launch deals or coupons to attract buyers.
- Encourage Reviews: Use Amazon’s Request a Review feature or include polite requests in your packaging.
Pro Tip
- Monitor your performance dashboard to track sales, clicks, and conversion rates. Adjust your strategy based on data insights.
- Focus on niche markets.
- Differentiate your brand with superior quality and service.
- Respond promptly and professionally to complaints.
- Use feedback to improve your product or service.
- Highlight unique features to justify premium pricing.
- Use dynamic pricing tools to stay competitive.
If you’re ready to start your Amazon selling journey, follow this guide on how to sell on Amazon step by step. You can turn your Amazon store into a thriving business with dedication and smart planning.
