Let’s cut to the chase:
You want to learn how to sell on Amazon, step-by-step, and make some money with Amazon business without your own website.
Whether you are a small business owner or a full-time employee who wants to quit his or her full-time job, this step-by-step guide is a must if you’re going to become a professional Amazon seller.
Selling on Amazon seems complicated to new sellers. I’m going to make it simpler so that by the end of this post, you’ll start selling your stuff on the world’s billion-dollar company and attract a ton of Amazon customers.
So without further ado, let’s get started.
Selling on Amazon – Frequently Asked Questions
Is it Profitable to Sell on Amazon?
Many people are diving into selling on Amazon, primarily due to FBA. And even though Amazon is getting crowded, it’s important to understand that it is still the dominant online retailer.
That said, there’s still some moolah to be made on Amazon if you are a new Amazon seller. But you have to up your game because the competition is stiff, making it harder to shine or get noticed on the leading online retailer.
To be more successful with Amazon selling, you need to research the market and start selling a product that is in demand. That way, you will get more traction faster and make more sales on Amazon. So yes, it is still profitable to sell on Amazon.
Is it Cheaper to Sell on Amazon or eBay?
It’s a topic that is consistently on the debate, and while you can do a simple Google search and get an answer, there’s still more that you need to know.
When you compare the FVF rates, eBay charges ten percent, while Amazon charges fifteen percent – that is a margin of five percent. That’s not enough to conclude, so let’s dig deeper.
eBay charges PayPal fees, which Amazon doesn’t – 2.9 percent of what you sell plus an additional flat rate fee of $0.30.
Lastly, eBay sellers will keep tight an average of 5.13 percent more of what they sell compared to Amazon sellers.
In other words, it’s cheaper to sell on eBay than on Amazon.
But there are privileges that Amazon offers, which eBay doesn’t, such as FBA of Fulfillment by Amazon. If Amazon makes your life better, then it’s no big deal if they charge more.
What Sells Well on Amazon?
If you want to know what’s selling the most on Amazon, be sure to check Amazon’s bestseller list to give you an idea of what customers are buying.
All the same, you still need to know the specific product categories that sell on Amazon product pages. So, here we go:
- Toys and Games: This is an excellent place to start. More and more games are coming to light, and you can quickly gain traction, but be warned, reputable brand names are dominating the category, so you have to up your game a bit. And the following toys and games are trending on Amazon: “Scientific Explorer My First Mind Blowing Science Kit, ALEX Toys DIY Wear I Heart Charm Bracelets, Funko Pop! Deluxe, Marvel: Avengers Assemble Series” – currently #1, #2, and #3, respectively, according to Amazon product listing.
- Electronics Such as Cell Phones: This is a category that’s hard to break into because Amazon dominates. The front list is dominated by products that Amazon manufactures and owns. Electronics currently trending on Amazon include: “Mi Smart Band 4 (Black), Samsung Galaxy,M30s, boAt BassHeads 100 in-Ear Headphones with Mic” – now #1, #2, and #3 respectively according to product listing.
- Books: People are continually seeking knowledge, and selling books on Amazon could be an excellent idea. If you have a book that delivers what readers want, there’s no doubt you will sell more on Amazon. Books currently trending on Amazon include: “Beneath a Scarlet Sky, P.S. from Paris, A Gentleman in Moscow.”
Startup cost to start selling on Amazon
There are up to 5 expenses associated with getting started with Amazon business. These costs depend on what you want, how much you can invest, or rather how far you want to take your Amazon business. All the same, there are options to keeping your expenses low at the beginning. So below are the costs you are likely to incur when setting up your Amazon business:
- Purchasing initial inventory – $150
- Creating an Amazon seller account – $39.99
- Purchasing UPC codes – $10
- Ploughing your money into product photography – Free – $295
- Branding and logo creation – $24
The total amount you’d spend ranges between $224 and $518, depending on whether or not you choose to invest in product photography and product photo retouching services.
Selling on Amazon Overview: How to Start Selling?
It doesn’t have to be complicated as many people perceive it. Getting started with selling on Amazon is relatively simple. Below are the main steps you’d want to follow to start selling on Amazon instantly:
- Review some of the strategies for sourcing products
- Know and understand the rules of selling on Amazon. Also, be sure to know the fees Amazon charges
- Create an Amazon seller central account
- Get the first products you want to sell
- Create a product listing. Here’s how to do it the right way.
- Avail your products to FBA warehouses. Here’s a step-by-step guide.
Rest assured, you will make your first sale on Amazon if you follow the above steps. Once you have started selling, scaling your Amazon business to the next level involves rinsing and repeating steps 4-6.
How to Open an Amazon Account?
Before walking you through the steps to opening an Amazon seller account, I must take you through some important details you need to know.
First, you don’t require a ‘legal’ business in the beginning, so you can use your details to open your Amazon account.
Secondly, if you are a non-US citizen, you will need to have the following before you can commence the process of setting up your account:
Well, now you know what is needed. Let’s now look at the steps to creating an Amazon account step-by-step:
- Step 1: Go to Services.amazon.com
- Step 2: Scroll down and click the link, “Selling on Amazon.”
- Step 3: Choose between “sell as a professional” or “sell as an individual.” If you are starting, choose “sell as an individual” because Amazon charges $0.99 per sale for an individual seller account while amazon fees for a professional seller account go for $39.99 monthly subscription fee.
- Step 4: Fill out your details and boom; you are an Amazon seller!
Alternatively, you can watch this video to walk you through – like if you want to set up your Amazon account now.
Selling on Amazon For Beginners: How Amazon Works?
There are a few noteworthy concepts you need to understand as an Amazon beginner. Let’s discuss them:
First, you need to understand who a 3rd party seller on Amazon is. Well, third party sellers are independent sellers on Amazon who sell a variety of collectible, new, used, and refurbished items. These sellers are in what’s called Buy Box, which means that when a buyer wants to buy an item from this seller, then it is this seller’s item that will be added to the cart.
Secondly, if you are a seller in the Buy Box, then it means that Amazon fulfills your listing. That means that Amazon will be responsible for shipping your item to the customer upon placement of an order.
Lastly, three different sellers will be shown on the sellers’ section – that’s on the main page. If there are more than three, which is common, the buyer will click to view all available offers.
You must fight for a place to be in the buy box as it is key to succeeding on Amazon. Steps to getting to the buy box are not known, but make sure you get excellent reviews, watch your prices, as well as your fulfillment method.
How to Find Products to Sell on Amazon?
You see, there are a ton of blogs that talks about what to sell on Amazon, but people aspiring to start Amazon business consistently ask this:
How do I find products to sell on Amazon.
This is a question that has never got the best response, and today, I’ll step up to take the challenge and answer it to the best of my knowledge.
The process of finding products to sell involves two steps. Let’s take a look:
- Step 1: Narrow Your Research Criteria – Your objective is to start selling a new product that will generate sales right from the onset. So here’s the deal. First, check out for products with the following features: products that sell between $21 and $200, small, light and easy-to-ship products, and products that sell ten or more every day. On the other hand, there are products that you should avoid. Such products have the following features: products that demand high quality, delicate and fragile products, products that are sold in large volumes on Amazon, and products sold in large retail stores.
- Step 2: Choose the Right Tools to Research Amazon Products – While this is one of the ways to select the products that you will sell on Amazon, tools will not make the selection for you, but they will provide you with the data. Make sure you know how to use the data to help you choose the best products to start selling on Amazon. Some of the tools you can use include: product research workbook, jungle scout, Unicorn smasher product research tool (free). Also, you can check out these FBA chrome extensions if you are one of the FBA sellers.
How to Price Your Items on Amazon?
Once you have set up your Amazon seller account and decided on the products you are going to sell, the next thing should be to develop a selling plan – how to price your items. You need a pricing strategy, and below are some of the pricing strategies you should know:
- Don’t Be So Cheap: It’s common these days. People believe that by lowering the prices of your products, you will have more buyers flocking your page – it’s true they will, but not to buy in most cases. And the worst, if you continuously lower your prices, customers will perceive your items as poor quality. Instead of pricing your items the lowest, make sure you price your products 1.5 percent higher than the lowest seller.
- Don’t Rush to Reprice: Don’t rush to place a sticker on your product. Carefully examine what products need to be repriced first. Also, you can start by identifying what costs the most and then slash a few dollars. Customers who might have come across the same item, but with a higher price could stop by and purchase it.
How to Sell on Amazon Using FBA (Fulfilment by Amazon)?
Amazon by Fulfillment, is one of the shipping options available on Amazon.
Amazon’s Fulfillment is probably the best option available to any new seller on Amazon because it makes your selling more comfortable and stress-free.
If you want to become an Amazon FBA Seller and sign up for Amazon By Fulfilment program, you will be required to ship your products to any fulfillment center on Amazon at no cost.
Once your product arrives at any of the fulfillment centers, Amazon’s personnel will pick, pack, and deliver your products to whichever customer on your behalf.
Below is the process of selling on Amazon FBA:
- Identify the product you want to sell on Amazon
- List the product you have identified as for sale
- Prepare the products for shipment
- Box up your products and ship them to the fulfillment center of your choice
Below is what happens after the goods are received by Amazon personnel:
- Amazon will ask to verify if you have sent the right products
- After Amazon has confirmed that you sent the right items, they will activate your listings. That means that your name will appear on the product detail section
- Amazon will hold your products until a customer makes an order
- When someone orders your item, Amazon will ship it to him/ her
- After the product is shipped, Amazon will avail your share to your seller account
- Payments will be deposited in your bank account after every two weeks
Benefits of Using the FBA Program
There are a couple of benefits that Amazon sellers who opt to sell by FBA enjoy. The best of all is zero shipping costs. Let’s look at a few more advantages you will enjoy as an Amazon Fulfilment seller:
- You will save more because you don’t have to pack items and post the items
- You don’t have to stress yourself because Amazon will answer all your potential customers’ questions
- You have the chance to earn the prime badges, which is an advantage to you because your items will be visible to Amazon prime buyers
Creating a Unique Brand and Growing Your Amazon FBA Business
After you have settled on the type of product you want to sell on Amazon, then your next step should be how you are going to private label your or create your logo.
I’m walking you through branding your items and creating your logo because it’s essential if you want to crash it on the world’s largest online retailer.
In most cases, these freelancers can help you with Packaging Design, Infographics, private label products, and Logo design.
Alternatively, you can ask for a logo from Alibaba. Here’s how you can do it.
Fulfilling Your Own Orders (Merchant Fulfilled)
Apart from selling on Amazon using Fulfilment by Amazon, there is another option called merchant fulfill.
Merchant fulfilled is different from Fulfilment by Amazon (FBA). With this option, you will be required to hold your own products at your location and ship them directly to the customers when they place orders. There are times when merchant fulfilled makes sense, but in most cases not.
I recommend that you only use the merchant fulfilled at the end of Q4 when the chances of shipping your item to the FBA warehouse is limited. This makes sense because customers can receive their orders before Christmas.
The Amazon Seller App
Once you have set up your Amazon seller account, the best thing to do is to download the Amazon seller application.
The Amazon seller app is a free application available directly from Amazon. It gives you product details such as fees and the selling price. Additionally, the Amazon seller app is synced with your account, so you will be able to know if you are eligible to sell a specific product or not.
If you want to search for a specific product, you can search for it by its name on the search bar, or by UPC, or scan the barcode of the item using your smartphone camera. The application will indicate the item’s pricing and its details.
You Can Start Selling on Amazon Marketplace – Today, Now
I’m glad you stayed around up to this far. You are 20 times better in the race to start an Amazon ecommerce business – your online business.
It’s now time to take action – get out of your comfort zone and begin creating your Amazon seller account.
If you landed on this post, but you are already selling on Amazon, please let me know in the comments how this post has shaped your thoughts about selling on Amazon.