The world of e-commerce presents a compelling opportunity for those looking to start up a side hustle or even start their own full-time business.
When it comes to selling online, there are many avenues vendors can explore, perhaps none more enticing than Amazon, the world's number one digital marketplace.
Here are seven of the most important things to take into account when considering how to become an amazon seller
How to Sell on Amazon for Beginners
Getting the ball rolling is easy.
You need to create/register a seller's account to sell on Amazon. This will provide you with the main dashboard you will use to add new listings, monitor your existing inventory, and track reports/performance metrics.
You will need to enter relevant information such as business name, address, and tax info (EIN, SSN, etc.) and consider if you want to begin with an individual or professional account.
Once you are fully registered, it’s time to decide what you want to sell and how you plan to go about making sales.
Finding Good Products to Sell
Perhaps the most critical aspect of selling on Amazon is choosing the product you want to sell. You need to strike a delicate balance in finding something people want to buy in an already oversaturated market.
Many people that try selling on Amazon are either not successful or don’t know how to grow ecommerce business over time. Often this is not due to a lack of effort but rather a faulty business plan, target niche, or product.
To be successful, you’ll want a product that has:
- Good profit margins
- Limited competition
- Decent search volume
It is vital to strike a delicate balance between something people are beginning to search for, but that has not generated a ton of sales just yet. The reason is to ensure demand but avoid extensive competition.
You will also want to find a reputable supplier to ensure your product is meeting basic quality standards and that you can get it sent to Amazon shipping centers promptly for fulfillment.
What Can I Sell on Amazon as a New Seller?
The great thing about ecommerce sites like Amazon or Shopify for small business is that you can sell just about anything, even as a beginner.
Some ideas for possible products include:
- Toys & Games
Before honing in on your niche, you will want to conduct rigorous market research to determine what types of products are currently selling. You also want to determine who the product is for, why they need it, and how you can appeal to them. This is fundamental in learning how to become an Amazon seller.
The Advantages of Selling on Amazon
The biggest advantage of selling on Amazon is leveraging its robust brand recognition and existing customer base. By gaining access to Amazon’s extensive marketplace, new sellers can avoid several early steps, such as launching paid ads or focusing exclusively on expanding their company profile.
Because your store falls under the Amazon umbrella, you also don’t need to worry about figuring out shipping or how to handle returns, which is especially beneficial for new sellers who are less familiar with these processes.
How Long Does It Take to Become an Amazon Seller?
Starting a small business online is fast and easy. Whether you are launching a store on your own platform or using a third-party one, you can usually get up and running in just a number of days.
In most instances, your Amazon seller's account will be approved in as little as 24 hours. However, while you can begin using Amazon’s platform to post listings and test out products, getting your first sale may take some time.
As you learn the ropes, you will become increasingly familiar with techniques that will help your store increase its visibility within Amazon’s search algorithm by optimizing your listings with keywords and finding products in emerging markets.
Are There Any Amazon Seller Fees?
How much money do you need to become an Amazon seller? The good news is not a whole lot. However, to be successful over the long term, you will need to set aside some out-of-pocket costs.
This includes some Amazon seller fees you should be aware of before you begin selling products on the platform.
When you register as a seller, you can sign up as an individual seller or a professional seller. If you choose the individual option, Amazon will charge you .99 cents for each product you list on their site. If you choose the second option, you must pay a monthly fee of $39.99.
While it is tempting for new sellers to select the individual plan, for those planning to remain selling over the long haul, it is recommended switching over to the professional option once you start making your first sales to avoid a monthly cap.
One major perk for consumers is Amazon’s free shipping options. The reason it is free for customers is that often vendors are the ones footing the bill. Other fees associated with selling on Amazon include referrals and taxes for certain products and shipping/fulfillment.
How to Increase Sales on Amazon
Registering an account and getting your store up and running is easy. The hard part of how to become an amazon seller is consistently making sales.
Even after you make your first few sales, you need to constantly monitor performance indexes and stay ahead of the curve with diligent customer/product research.
Buying products from third-party suppliers and selling them for a higher price on Amazon is a business strategy known as dropshipping. While it can be lucrative, there are certain methods you need to be aware of to scale and determine how to grow a dropshipping business.
To increase sales over time, consider doing the following:
- Targeted keyword research that will help your listings show up in search
- Evaluate top competitors in the same niche
- Use high-quality images and accurate descriptions
- Set competitive pricing with good profit margins
- Test out paid ads and social media strategies
- Manage your inventory and evaluate performance
If you carefully consider all these factors and take the time to research and develop your brand, the odds are good that you will find success selling on Amazon.
About the Author, Madison Taylor
Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.