Our Services Let Your Business Scale Quickly
- FBA Small and Light: Reduce the cost of fulfilling orders for low-cost, small, and lightweight FBA inventory.
- FBA Subscribe & Save: Offer discounts on eligible FBA products for repeat customers.
- FBA Pan-EU: Offer fast delivery in Prime-eligible European countries.
- FBA Export: At no extra charge, expand your FBA business to more than 100 countriesminus the complexities of international selling.
- Multi-Channel Fulfillment: Sell from your own or third-party ecommerce sites, with Amazon picking, packing, and shipping to your customers.
How To Join The Amazon Affiliate Program In 2022
Even before the pandemic, people looked for ways to boost their income. Having a side business lets you achieve this, and some side businesses are even capable of producing passive incomesuch as affiliate marketing. When it comes to affiliate marketing, nothing beats Amazon Associates.
Get Started With The Amazon Affiliate Program Today
The Amazon Affiliate program is an excellent way to turn a side passion into a source of passive income. Choose a niche, write product-centric content, and include contextual affiliate links, and youll be sure to grow your Amazon Affiliate income to astronomical levels.
Editor’s note: This post was originally published in May 2020 and has been updated for comprehensiveness.
Originally published Jun 28, 2021 3:00:00 PM, updated August 25 2021
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Understand Amazons Cost Structure
You can start selling on Amazon with little money. But there are some fees you should be aware of because theyre frequently charged and can impact your Amazon channels ROI. The following fees arent the only fees, just the common ones.
- Referral fees. Amazon charges a commission for selling on the platform. Its different for each category. The average referral fee is 15%, but can range from 8% to 45%.
- Closing fees. This is a $1.80 fee taken from each unit sold for products in media categories .
- FBA fees. If you use Fulfillment by Amazon youll cover the shipping and handling costs for a sale. This fee is charged to fulfill items for Amazon purchases and depends on the items category, size, and weight. A standard package may cost you between $2.41 and $4.71.
- Additional Amazon fees. Amazon will also charge you inventory storage fees for inventory in its fulfillment center. You may pay monthly or long-term storage fees, as well as disposal order fees, return fees, and advertising costs.
For an in-depth look at all possible fees, read the .
Amazon Has A Lot Of Fees
Amazon needs to make money like any other business. For every income opportunity offered, expect there to be something in it for Amazon too. Their Fulfillment by Amazon program, for example, gets your product to more customers, but setup, receiving and storage can cost hundreds, or even thousands, of dollars in fees. Find out exactly what Amazon will charge to get your products to your customers before you sign up so that you can recalculate your profit margins rather than being surprised by them down the road.
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Review Your Current And Previous Purchases
Start reviewing products. This begins with reviewing your own current and previous purchases.
Even if your former purchases aren’t in the same category, review them anyway. You can get some practice under your belt.
This is a good way to start being comfortable reviewing Amazon products. Then, moving forward, it’s better to focus on one category for your Amazon reviews.
Find Private Label Products To Sell On Amazon
An offshoot of direct-sourcing is private labeling, and its a great way to find products to sell on Amazon under your own brand. Private label suppliers manufacture goods, then label, tag, or package them under your brand.
You can find private label products in virtually any product category, from personal care items and cosmetics to kitchen tools, pet supplies, gourmet foods, and much more.
The process of finding private label products to sell on Amazon is similar to finding wholesale and direct-source suppliers. Many manufacturers offer a private label option on their stock goods. Or, you can find private label vendors within a specific product category using a quick online search, like this:
When it comes down to it, private label sourcing is similar to buying from wholesale or direct-source suppliers. You have to buy in minimum quantities, and stock and ship products to your customers. Of course, this can be done via your own fulfillment setup, using FBA as your Amazon fulfillment tool, or a combination of both.
Likewise, you need a way to track your inventory and product costs and forecast your reorders. The same inventory tracking tools that work for wholesale and direct-source purchasing can help you organize your private label product sales on Amazon.
Give InventoryLab.com, Sellics.com, and Shopkeeper.com a try if youre heading down the private label path.
Pros and cons of private label sourcing
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Use The Generated Link On Your Site Or Other Promotional Materials According To Amazon’s Standards
Just remember that Amazon’s guidelines prohibit the use of the link in offline promotions, email, and eBooks or PDFs. As with most marketing and sales, quality content is at the heart of success. Ensure you’re attracting your audience with quality content and share relevant affiliate links with them on your site or YouTube channel.
Each link you generate will have a cookie that will then follow your website visitors after they click on the link. This is highly beneficial to you, because it increases the likelihood of you receiving commission for the sale. The only problem is that it only lasts for a limited amount of time.
How long does the Amazon Affiliate cookie last?
The Amazon Affiliate cookie lasts for 24 hours after a website visitor clicks on the affiliate link. The cookie stays in their browser for that entire length of time. That way, if they check out at any time in those 24 hours, the purchase will be credited to you.
The Amazon Affiliate cookie is just one of the ways that the Amazon Affiliate program can help you make money. But first, you must get visitors to click on the link and to do that, you need visitors in the first place.
Add Detailed Product Information
Products can be listed in the Amazon Marketplace catalog one at a time. However, if you obtain a professional selling subscription, you have the option to add larger groups of products through the bulk tools. If the products are not yet listed on Amazon, you can identify the UPC/EAN and SKU.
Then, you describe the attributes of the product, such as a title and detailed description information. If the product is already listed on Amazon, you need to identify the number of products you have to sell, list the condition, and the shipping options.
If you want to make a lot of money on Amazon, simply describing the basics of your product is not good enough. Amazon keywords are everything for sellers. A good majority of sales on Amazon occur through organic searches for products. If you havent optimized your product descriptions and checked your grammar and SEO, you can lose out on traffic to your products and sales.
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How Amazon Wins On Amazon
There are more than 2,000,000 third-party sellers operating on the Amazon marketplace.
And yet, Amazon has all the data, including but not limited to:
- Which products customers search for.
- What they actually buy.
- How much they buy at what prices.
- Where they cant find the brands they were searching for.
Although Amazon is a publicly held company, its investors have tolerated years of razor-thin margins, which has partly played out by way of Amazon selling products at next to no profit or even at unprofitable levels.
Amazon would make more profit in the short-term by letting third-party sellers earn the sale.
However, the company has taken the approach, in each category of products, of pursuing all of the strategic brands it believes need to be in the catalog to attract Amazon customers to shop first on Amazon over any other site online or offline.
To do this, Amazon has made a number of sourcing agreements with brands to acquire products at prices that dont allow Amazon to make any significant profit.
This is because the objectives here are for Amazon to bring the right selection at prices consistent with or lower than market prices, available all of the time to Amazon customers.
To make these objectives possible, Amazon has chosen selectively to forgo short-term profits in pursuit of long-term customer loyalty.
The answer is that Amazon isnt making money, at least in the short-term, and its entirely comfortable with that.
Want more insights like this?
Get Your Pricing Right
Finding the right pricing strategy for your products is tough enough as is, but add Amazons complexities and an open marketplace for other sellers to compete with you and you have quite a handful. However, if you keep some key considerations in mind, you can hopefully prevent other larger issues from arising.
Your selling agreement with Amazon includes a pricing parity clause. Your item price and total price cant be lower at any other online sales channel according to the general pricing rule. This includes your own Shopify site. Avoid a potential account suspension for not following this mandate and ensure that you price Amazon as low as your other channels.
Since Amazon is a marketplace, you may very well be competing against other third parties to win the buy box. There are several repricing tools available on the market, and Amazon recently released the Automate Pricing tool on Seller Central to help you automate pricing decisions. For example, you can set a rule to beat the buy box by 2% until you reach a certain floor.
Ensuring you are winning the buy box regularly, and being alerted when you are losing the buy box, is essential to growing your Amazon business. Note that pricing for vendors has a different process from marketplace sellers.
This benefits you not only by allowing you to sell more units in a short amount of time, but it also temporarily lifts your baseline business post promotion .
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A Product That Can Become Novel
To become a brand youd have to be unique. It is tough nowadays when the competition is that brutal.
To make a brand does not mean to offer a different product. It means to choose a product that you can easily portray with innovation such as with the cool brand name, with unique packaging and coloring or even with the better representation.
Choose the product that you can make it as different as possible that will give you a competitive edge and likewise increase the chances to sell successfully.
Can I Sell On Amazon Without An Ssn
Amazon requires an official way to identify you for tax purposes when you register a seller account. If you are a US citizen, you will already have an SSN and will need to disclose it to Amazon for tax purposes.
If you are not a US citizen, it is possible to get an SSN, but it requires work visas and the go-ahead from the Department of Homeland Security, which is not straightforward. There is a workaround, though. For selling on Amazon without an SSN, you can instead use an EIN.
An EIN is an Employment Identification Number and is a bit like an SSN for businesses. Youll need to complete the necessary forms for overseas applications and jump a few hoops but you only have to do it once and youre good to go!
I vaguely remember when we applied and within a couple of weeks received a letter with my EIN number.
Customs and duties will require this on your shipping details, unfortunately, so this step has to be done.
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Building Your Off Amazon Audience
This was our secret sauce in the first year of our business and was certainly what helped us grow so quickly.
As I said above using Amazon PPC will be one of your greatest marketing channels for selling on Amazon, but if you can couple this with quality traffic coming in from external sources then youre going to accelerate your sales velocity which is going to increase your ranking.
There are a multitude of ways to grow your brand off of Amazon. By far the most effective and for long term growth will be to build your email list.
In fact Ryan Moran from Capitalism.com doesnt even view Amazon as a business he sees it as a lead generating machine helping you to grow your overall business.
However you view it, one of the fastest ways to grow a business on or off of Amazon is to build an asset base of people interested in your brand and products.
If you think about Amazon, the basis of its success is its database of over 200 million customers who have entered their credit cards into the system.
As a much smaller company with fewer resources, youre going to have to build your database of interested parties first with the goal of converting them to a database of paying customers.
You can see my post on Email Marketing for a step by step guide to getting your lead generation campaigns off the ground.
Do Not Confuse Fba With Vendor Central:
FBA does look like Amazon Vendor Central but it doesnt come with any of the agreement to Amazon it is just a fulfilling method in which Amazon charges some extra fee in lieu of delivering your product, whereas Amazon Vendor Central works in a traditional way of a deal between a seller and Amazon.
Now, you can easily to automate the business process!
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There Might Be An Amazon App For That
Not all of us are blessed with a smartphone, but if you do have one, you can easily scan your goods and determine their immediate value using either an iOS or Android-based price checker Amazon app on your smartphone.
This is useful if youre dealing with a lot of inventory or prone to checking out store clearance sales for additional merchandise.
One free iPhone-based Amazon app is Amazon Seller. This app really is the best app for sellers just getting started as there is no charge and it connects directly with your Amazon account. The Selling Family put together a free guide to show you .
How Does Amazon Fba Work
Theres no better way to describe it than this brilliant graphic on Sam Priestleys post of the same.
While there are a few more moving parts this is essentially the long and short of it.
When we started our business
- We sourced products already selling well on Amazon.
- Branded them with our own name and logo.
- Got them shipped to the Amazon warehouses .
- Listed them on Amazon with our own images, brand, keywords, and descriptions
- Amazon handled all the distribution of the products to the customers!
And thats pretty much the strategy Im going to go through in detail in this post .
Disclosure: Please note that some of the links below are affiliate links, from which, at no additional cost to you, I may earn a small commission. I only recommend products and services Ive personally used and believe can add value to your business. If you choose to purchase from any of my links, thanks so much for your support!
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Dont Get Caught Up In Operational Tasks And Neglect The Marketing
This is so easy to do!
There are so many pieces of the puzzle to put together from selecting products to dealing with suppliers, handling shipping issues, listing products, dealing with seller central, packaging, labeling, etc.
Its super easy to almost forget about the marketing part and believe that Amazon will do all the work for you.
To a degree as I said above they have done a lot of the heavy lifting for you, but youre working in a very competitive marketplace now.
All the courses and training over the years teaching how to sell on Amazon has created a raft of half-decent competition on the site.
The secret to success on Amazon is negotiating a bloody good deal on getting your product to market so you have a good profit margin and then out-marketing your competition on the platform.
Here are some tips on how to do that
Opportunity Abounds On Amazon
Even given all the hoops you have to jump through, the biggest benefit of selling on Amazon is that it really does offer amazing opportunities for anyone willing to put in the work. If the margins and competition dont drive you crazy, the volume, scale and resources available are unmatched. It might be the perfect marketplace for your products, but with so many options, tools and services available, take the time to research them all to find what fits best for you.
Not every ecommerce business lists on Amazon, and not every Amazon seller has his or her own ecommerce site. Both are viable options for conducting businesses online, but stay alert to new opportunities for growth that come with emerging technologies. If the first 30 years of Amazon have taught us anything, it should be to pay attention to the new ways of doing business because the next one might be exactly what your business needs to thrive.
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Amazon Vendor Central :
An Amazon vendor acts as a vendor or supplier and directly supplies products to the different warehouses at Amazon. An Amazon Vendor is an Invite-Only program in which Amazon selects sellers from Amazon Seller or Central or outside and asks them to supply goods directly on certain terms and methods. After the delivery of the product, Amazon sets its marketing strategies and schemes to sell out the product on Amazon.
Advantages of Selling as Amazon Vendors :
- Hassle-Free product sales.
- Display of products managed by Amazon.
- Inventory Projection mechanism which is not available in Seller Central