Bonus: How To Upgrade Your Amazon Account
Lets say you decide to start with an Individual account to see how you like it . Great news! Theyre selling! Suddenly, you find yourself kicking yourself for not getting a Professional account from the get-go.
No worries! Youre able to upgrade your account with the click of a few buttons.
Just follow these steps:
There you have it! You now have a Professional Amazon account. How exciting!
You may notice that youre still being charged a $0.99 fee with each item that sells. Because an Amazon account change doesnt activate until the beginning of the next month, you will still be charged this fee.
Once the month is up, however, consider it waived! If you find yourself paying for the Professional plan as well as the $0.99 fee, contact Amazons support center immediately.
Alright, now lets say you decided to go with the Professional account first. Only, youre not using the features that it comes with and youre not getting the sales you want. Is there a way you can cancel your Professional plan to get an Individual plan?
Absolutely! Follow these very similar steps to downgrade your plan:
Ta-da! Now, you have an Individual account!
How Do You Source Products To Sell Online
Generally, the three most popular ways to source products to sell online are:
- Purchasing from a wholesaler / manufacturer you buy the products you want from a wholesaler or a manufacturer, before adding your branding and marking them up. Costs include buying the product , storing it in a warehouse, upkeep and shipping. Very easy to scale up if you choose a reliable and highly-rated supplier.
- Making the product yourself if youre someone who creates your own products, this route will be attractive. Its commonly used by people selling art, jewellery, and crafts. The main costs are materials and the time you need to invest to make the product. Great for developing a personalized brand, and gives you great freedom to control stock and pricing, but can be very difficult to scale up without hiring staff.
- Sourcing the product from a dropshipper an increasingly popular way to sell products online. Enables sellers like you to fulfil orders to customers without ever stocking or handling the product yourself. Heres how it works on a basic level: you list products available from a dropshipper youve built a relationship with a customer places an order on your store and pays you the order is passed onto the dropship supplier, who delivers the product straight to the customer. See our in-depth dropshipping guide to find out how to do it.
The Private Label Seller
In the past five years, there has been a huge increase in the number of sellers on Amazon that are building their own brands .
Combing Amazon product reviews and sales rank data of national brands, these sellers identify product or price gaps they believe they can fill with their own, newly-developed private label brands.
Typically, these sellers can enjoy 3-6 months of decent sales before their products do well enough to be identified by other private label sellers to target for their own private label versions.
If the private label seller becomes effective at evolving its catalog quickly and capitalizing in the short-term on its newly launched products, such a seller can do reasonably well on Amazon.
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Use Amazon Reviews To Find Product Market Gaps
When deciding what items you should purchase for selling on Amazon, its important to get a feel for what the customer wants. Vendors might have the time and budget for focus groups to get consumer feedback as to desired products and what they like and dont like. But, this doesnt work for all vendors.
Since many vendors dont have the time or budget to do so, mining Amazon customer reviews is a timely and cost efficient way to decide what you should be selling on Amazon and why.
If youre thinking about selling a specific product, research Amazon reviews and keep the following things in mind:
- What items people are raving about
- Look for unsatisfied customers with a particular product
- Use the complaints to modify your prospective product
When you dive into Amazon reviews youll get a firsthand look at what people love or hate about a certain product. You can take that information into consideration when you decide what products to sell and if you should make any modifications to the product you are going to sell.
Sell Products And Services With Amazon
The following tactics are all about selling. While selling isnt the only way to make money on Amazon, its one of the most common, and there are several different ways to do it. Even if you dont want to sell a physical product, read on. You may find a method of selling on Amazon that surprises you!
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Every Seller On Amazon Is Required To Answer Customer Inquiries Within 24 Hours
This requirement applies to any day of the year.
Amazon holds every seller to the highest industry standards regarding shipping times, confirmation emails, order cancellation rates, and a myriad of other criteria.
For many businesses new to Amazon, these standards may well be beyond what they can handle, and hence the Amazon marketplace may be out of the realm of possibility to sell on.
With these conditions in place, lets discuss how different kinds of businesses are likely to do on the Amazon marketplace.
Want more insights like this?
How Do You Pay Alibaba Suppliers
You can pay suppliers through different payment methods on Alibaba. Alternatively, you can also settle payments outside of Alibaba depending on the terms that your supplier agrees to. Be mindful of the fact that there are several fake suppliers, so paying outside the platform is even more of a risk as it will be all the more difficult to hold anyone accountable. It will also be deemed illegal when you make payments through other portals that do not fall under the international transactions category.
Here are some of the popular payment options that Alibaba offers
- Bank Transfer
This method is the fastest but entails a high level of risk especially when the whole payment is made before the start of the production process. So the best thing to do is pay part of the amount in the beginning and the rest after you receive the shipment. You need to ensure that you have all the correct information related to the supplier, like his name, personal and bank address, bank identifier code, etc. The downside to this type of payment is that there are delays in processing and there is a slim chance of getting your money back in the event of any problems.
- Letter of Credit
If product quality or delivery is unsatisfactory for some reason, then the suppliers will not receive payment from the buyer until an inspection is conducted.
- Trade Assurance
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How To Source Products To Sell On Amazon
If you are planning to start a private label business on Amazon, you can look for a domestic supplier or work with an overseas manufacturer to source your inventory.
Anything produced locally has obvious merits. You donât have to worry about the language barrier. You can drive to the workshop any time and check what your manufacturer is up to. Local suppliers have a good understanding of the market. Payment can be made hassle-free. And who doesnât like flaunting âMade in Americaâ, âMade in the UKâ, or âMade in Australiaâ on their product? Itâs a home-run!
That said, domestic manufacturing can be quite expensive. Also, you may not always find a supplier for your product, which can be a bummer.
How Does Selling On Amazon Work
Ok, so when it comes to selling on Amazon you have two main options:
- Fulfilled By Merchant
- Fulfilled By Amazon
If you are an FBM seller you will have to ship out every order yourself.
This may well suit you and your business set up, youll pay less in Amazon fees BUT youll have the cost of fulfilling and managing that side of things
With FBA Amazon do all of the heavy lifting for you
With this business model, all you need to do is send the goods you wish to sell to one of Amazons FBA warehouses and from there they do the rest.
Its pretty simple, a customer will buy something and Amazon will pick, pack and post the product out on your behalf
The Amazon FBA business model is the reason my two business partners and I could work full time whilst building up our Amazon business on the side
Now, be warned You will need to be prepared to work hard.
Amazon FBA requires time and effort but it is so worth it in the long run.
Wed spend most of our evenings and weekends working on our Amazon business, we still all had full-time jobs when we started, it felt like the safest way for us to escape the typical 9 5.
Anyway, enough about that Lets dive into the method.
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Use Amazon Reviews To Locate Market Gaps
Selling physical products online is nearly a $1 trillion industry. If you look at selling digital products, they make up a huge portion of that industry.
However, there are yet unexplored markets out there that you can supply.
One of the best ways to discover top selling items on Amazon is by analyzing customer reviews that have been posted online.
People usually leave clues to what they wouldve wanted in a product and what they desire that product to be.
They often leave thoughts of disappointment and wish that a product they wanted had just a little bit more so that they could justify their purchases.
If you really want to make a great product and like to see it among the best selling items on Amazon, focus on the customers.
Ship Products To Amazon
This page provides information on the options that you can use to create a shipping plan for sending inventory to Amazon fulfillment centers.
You can send your inventory to Amazon by creating a shipping plan, packing your products, and sending them to the fulfillment centers that Amazon designates, using the carrier of your choice. Inventory that is sent to a fulfillment center is usually scanned and made available for sale within three business days of delivery.
Options for creating a shipment include the following:
|A streamlined shipment creation workflow with simplified steps that saves you time when replenishing inventory. You can create your shipments either by adding products from the Send to Amazon page or by uploading the list of products using an Excel spreadsheet. .|
|For medium to large shipments, you can integrate your own inventory systems using Amazon APIs. Learn more about and Selling Partner API.|
Send your products to the locations that Amazon designates for your shipping plan. This ensures that your inventory is placed closer to customers and reduces the order delivery time for your products.
Not shipping your products as stated in your approved shipping plan is not permitted. It leads to additional processing and handling that can delay receipt of your inventory and its availability for sale. This may also result in blocking of your shipment creation abilities.
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Treat Your Amazon Store Like Your Actual Shop
If you sell stuff on Amazon, it wont make you six figures in sales just because you uploaded products. Youll need to treat it like your online store.
Youll need to drive traffic to the Amazon product pages whether with Amazon ads or other methods. Youll need to optimize product pages. Youll need to get great reviews. Youll need to offer great customer service.
In a nutshell, Your brand still has to live up to a great reputation even if items are sold on Amazon.
Getting Notified After Selling
Want to get instantly notified after making a sale on Amazon? Of course you do! But, how do you go about doing this?
Follow these steps and youll receive notifications within seconds:
Voila! Youll be receiving notifications in no time, now! For a list of notifications youre able to receive, check out .
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What Not To Do For Your Product Research
There is not a great deal to say on what not to do, but Sourcing Nova wants to get that out of the way now before getting to the right things to do. These points should not be taken lightly as these can be the difference between a comfortable passive income and significant debt with products you cannot sell.
Remove what you want from this process
While it is understandable you have a certain product you may like and wish to sell, ask yourself: Do I have a decent chance of selling this to a global audience?
Conversely, if you find a product that will meet everything Sourcing Nova is about to teach you in this piece and it is something you like, you stand an excellent chance of earning some great money. It is fine that you have things you like and want, but the things that other people like and want is what to sell on Amazon that will put money into your pocket.
Going to a deep niche
We all know what the Internet can do to us in terms of going down the Rabbit Hole and getting terribly removed from our goal. The same thing can happen when looking for the best things to sell on Amazon. Do not get caught in an extremely tight niche product with little movement.
It is always best to find the best products to sell on Amazon people want around the year. Sourcing Nova will provide characteristics of these products to sell as you continue reading.
Finding Suppliers In Australia For Your Small Business
Reddit is a great option to find manufacturers in Australia. There are plenty of subreddits with honest supplier recommendations that you can check out.
If you really want to deep dive into your research though, online directories are your best bet. The AU region has several dedicated databases for connecting with local suppliers. Here are our top picks:
- Australian Trade and Investment Commission â Get access to 1000+ listings in any industry of your choice with Austrade. The ATIC is fully government maintained, so you never have to worry about dealing with crooked suppliers. Simply select your niche and province, and the websiteâs search engine does the rest, showing you the results that are most relevant.
- Private Label Manufacturers Association of Australia and New Zealand â A fine alternative to Austrade, PLMA connects you with over 3000 suppliers in home care, personal care, pet care, baby food, car care, and industrial cleaning sector.
- Australian Private Label â An exclusive database of personal care item manufacturers. Whether you want to launch a âMade in OZâ skin care product, hair care supplement, or protein shake, APL will help you find a lifestyle supplier that best matches your needs.
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The Reseller: No Exclusive Sourcing Relationships
Unless a reseller with no exclusive sourcing relationships has a significant pricing advantage, its not likely that this type of seller will be able to get any more than its fair share of sales from Amazon.
In other words, if this type of seller is competing against nine other resellers, this individual seller isnt likely to get more than 10% of the sales unless its willing to undercut everyone else on price.
A race to the bottom on price eventually lowers margins to an unsustainable level, making it pointless to be selling on Amazon.
For the general retail business considering offering some of its products on Amazon, this channel is likely to be only a secondary channel if your entire catalog is readily available to any number of other retailers.
, its critical for you to have paperwork that shows a clear provenance of where your product is sourced.
While some gray market sellers may do well on Amazon, once Amazons Seller Performance team challenges them asking them to provide paperwork showing where the product came from the seller may not be able to address a claim of selling counterfeit or inauthentic product.
And, even for sellers with solid paperwork from manufacturers or authorized distributors, Amazon may still give the seller a hard time if too many customer complaints come in about the legitimacy of the product.
Figure Out Your Selling Strategy
Your business strategy for Amazon should cover what types of products youll sell. Some options include:
- Finding popular or trending products and reselling them on Amazon
- Manufacturing your own products or sourcing goods under a private label
- Working with a specific supplier to start an store
Tip: Many Shopify store owners will use a free Shopify app to sync inventory and sell products from their own stores to Amazon. That way you dont have to create separate selling plans and can control inventory management in one place.
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