If you are looking to start a business selling products on Amazon, you’ve made a great choice as Amazon is one the largest online retailer of products and services on the internet. If you have the right product and with the right strategy, you can surely make lots of money with Amazon, a real powerhouse of a retailer. Selling your products via Amazon helps you to expand your business to a great extent. It provides you with an unimaginable customer reach along with various distribution and business management tools.
In this article, we’ll provide you with a step-by-step guide on how to get started selling your products on Amazon. Before getting started, you need to finalize the product you are going to sell, an account with Amazon, product listings and a process to manage your inventory and also ship your orders to the customers. So let’s see this all in detail below:
Sourcing Products to Sell on Amazon
If you already have your own set of products along with your manufacturing unit, then you are all set to start selling immediately on Amazon. But if you don’t have products then you need to source products from others and let’s some of the different ways you can source from others:
Buy from Retail Stores:
If you are new to Amazon and just starting your business, then this is the easiest way to start your online business as investment cost is low. All you need to do here is buy your products from retail stores at much lower prices and list them on Amazon to sell for some profit. Many small business owners use this method as they look out for a retail clearance sale and inventory reduction as products are sold for much cheaper prices. There are apps like Profit Bandit, Scoutify and other apps that let you check the price of similar products and provide you with the details of the profit margin you may stand to gain.
Buy from Wholesale Distributors
This method of sourcing products is certainly not for beginners as you need to source products from wholesale retailers and manufacturers. And the thing here is, you may get products at a wholesale price only if you buy them in bulk. Hence you need to be careful in doing your product research beforehand.
Private Label Products
This method of sourcing is about buying products from other local distributors and selling those products under your brand. The investment cost may be a bit high as you also need to invest in machines that enable you to label your products and also to source materials for labeling and packaging.
Handmade and Manufactured Goods
This is for business owners who manufacture their own products or people making their own handmade goods. The only downside here is if your product becomes a big hit, then you need to make sure that you can keep up with the demands.
Another method is the Dropshipping method, where just list the products for sale and your Dropshipping vendor takes care of shipping the products to the customers. But this method may provide you with a low margin.
Setup your Amazon Seller Account
While creating a new account on Amazon, you need to choose your seller category and Amazon offers two categories:
- Individual: Choose this category if you are a beginner and may only sell 40 or lesser products in a month. It may cost you around $0.99 per sale along with other charges
- Professional: Choose this category if you are looking to sell more than 40 products per month and this plan may cost you around $39.99 per month along with other charges
Also, make sure to check the list of product categories approved by Amazon as some products require the approval of Amazon to list in your account.
To create your account, go to Amazon Seller Central and click “Register Now” to open your new account provide the following details:
- Business Name
- Legal Name & Address
- Contact Information
- Location from where your products will ship from
- Bank account details
- Shipping options
The wizard will have enough information about what all these options are all about and just follow the wizard and provide the details correctly.
III. Setup Your Profile
Once you have successfully created your Amazon account, it is time to add more details about yourself and your business as this will help your customers know more about you, your shipping policies etc. the profile section require to fill the following information:
- About Seller: This is where you introduce yourself to your customers and you can even include a story about how you started your business, your company motto and any other details you may deem fit to connect with your customers.
- Seller Logo: Every business needs its own unique logo that will ensure to identify you easily by the customers. Make sure your logo is 120×30 pixels in size and it should not link to your product website or any other website
- Return and Refund Policies: Here you provide details to the customers about your return and refund policies including the estimated time within with a refund can be processed along with the address where the products need to be returned to etc.,
Create Your Product Listing
Amazon allows you to add your products either in an already existing listing or create your own product listing. If you are listing in an existing product listing, you can select the images from the stock images, provide a description for your product, number of products you wish to sell along with the condition of the products and your shipping information. Once you are listed your products, you are now ready to sell your products on Amazon and customers will start seeing your products.
NOTE: To start managing your Amazon accounting, check out taxomate – this great tool allows you to easily connect to your Amazon account with Quickbooks and also manage your accounting and taxes easily.
Remember . . .
Always do thorough research to provide the best competitive pricing and make sure to keep sufficient products in stock. If you are looking to win the Buy Box (a default listing your product when many sellers offer the same product), then you stand to see a lot of increase in your sales. But to feature in the Buy Box, you need to have an immense profile with ultimate customer metrics, quality shipping options along with competitive pricing.