Amazon is a giant platform in the online retail industry. It will soon be a trillion-dollar-company with more than 150 million Prime subscribers around the globe. There is no other platform that can offer you that number of potential customers.
By selling on Amazon, you have direct access to a very large customer base as well as gaining the trust that the customers have towards Amazon. By availing of Amazon’s fulfillment services, you can grow your business by working less and working smart. I have simplified the process here on how to sell on Amazon.
Opening a seller account in Amazon offers a lot of advantages to you as a seller. Since Amazon has hundreds of millions of customer base, this will greatly benefit your business.
- Reach hundreds of millions of customers – Amazon has over 150 million Prime subscribers around the globe. Opening a seller account in North America enables you to sell in the U.S., Canada, and Mexico.
- Fulfillment by Amazon – a world-class fulfillment service provided by Amazon for its sellers. You send your inventory to an Amazon warehouse. As soon as they receive your product, your listing goes live and the customer can start ordering your items. When your product is ordered, Amazon will pick, pack and ship your products to your customers. They will also handle customer service and product returns so you can focus on growing your business.
- Put your products in the spotlight – avail of their Sponsored Products keyword-targeting advertising by bidding on keywords of your choice from a variety of ad placements. You only pay when your ad is clicked. You choose the product you want to advertise, then decide on which keyword you want to target as well as how much you want to spend for each click. This option is available for professional sellers.
Steps to Register
Registering to sell in Amazon is a very simple process and can be done online. Amazon offers a self-service registration process. You can either register with an official business name or start off with your name as your business account name. Before you start to register as a seller, make sure you have this information:
- your business name, address and contact information
- an internationally chargeable credit card with a valid billing address
- your tax identity information
When you open a North American account, you will have access to sell in the U.S., Canada, and Mexico. You have options to choose between an Individual Plan or a Professional Plan. The professional plan in the US has a $39.99 monthly subscription plus per-item selling fees that vary depending on the items you are selling. If you just want to try it out for a bit and think that you will only sell about 40 items or fewer a month, then the individual plan will be the perfect fit for you. You only pay US$0.99 per item, plus item selling fees.
Your monthly subscription of US$39.99 as a professional seller covers all three marketplaces. So you don’t pay US$39.99 to sell in the US, another fee to sell in Canada and another fee to sell in Mexico With only one US$39.99 monthly payment, you have three marketplaces available for your business.
If you chose an individual account, the cost is the same at US$0.99 per item plus any fees applicable to the marketplace in which the product was sold.
Of course, if you decide to sell in three marketplaces as an international seller, I suggest you retain an Accountant that can give you advice regarding the different and sometimes quite complex tax information.
Steps to Sell
Using the Amazon platform to sell your products is also simple. Amazon has simplified the process of selling to the sellers. By simplifying the process, everyone can be a seller in Amazon. You don’t need to be a technical wizard before you can start selling in Amazon. There are only four steps to sell your products:
- List – you can list your items individually, or make a bulk listing by using the Amazon Marketplace Web Services
- Sell – as soon as you are done with listing your products, customers can see your items right away and Amazon provides customers a quick, easy, and worry-free purchase experience.
- Ship – you will get a notification when a customer places an order. You can ship to the customer’s address or if you use Fulfillment by Amazon, they will ship the products for you as well as handle customer service.
- Get paid – Amazon deposits payments into your bank account and you will get a notification.
Sourcing your Products
There are multiple ways of sourcing your products. Before you buy products though, you need to verify first if you are authorized to sell the product without copyright infringements. You can verify your Amazon seller account if you can sell a particular product.
A lot of people started with zero to low capital by selling used books. There is a huge market for used books on Amazon. I know someone who scours the thrift shops and garage sales for used books that can be sold in Amazon for profit.
Other ways of sourcing your product are by the following:
- Retail Arbitrage – you look for items at your local retail store or online stores. You can download the Amazon Seller application as this will help you in retail arbitrage. You can use this app to scan the product in your local store and it will show you how much is the current selling price in Amazon and if you are allowed to sell the product or not.
- Wholesale – this option of sourcing your products will need a bit of capitalization as wholesalers require a minimum amount of purchase in order for you to get the wholesale pricing. You can google your niche+wholesaler and you will have a list of wholesalers available. Some wholesalers will need you to apply for approval before you can buy from them for resell.
- Manufacturers – you may have your own brand and manufacture your own products and you can sell your own products to Amazon.
Fulfillment by Amazon
Fulfillment by Amazon is a fulfillment service offered by Amazon for its Professional Sellers. I suggest you take advantage of this program. Before I used Fulfillment by Amazon, I would have boxes on top of boxes in my living room and dining room. That was a chaotic time when I first started.
By availing of this fulfillment service, I have ordered online and have the retailers send it to a forwarding company. Then I list my products to get a bill of lading and send this document to the forwarding company to ship my products to Amazon’s warehouse. Fulfillment by Amazon will allow you to scale your business and not worry about space.
Here is a YouTube link by Fulfillment by Amazon that gives you the details regarding this service.
If you have any questions or suggestions to add to this post, please feel free to leave your comment below.