Monday, January 30, 2023

How To Sell Products Through Amazon

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How to Sell on Amazon in 5 Steps

As mentioned earlier, Amazon has millions of active users. In the US, there are currently . The average Amazon Prime user spends $1400 a year on Amazon products alone.

Thus, when it comes to ecommerce, Amazon has a huge chunk of market share in the industry. Those with Amazon Prime accounts will likely search on Amazon for items they want since they have special perks as a member.

Its important to be where your customers are. If your primary audience is in the US, then selling products on Amazon is worthwhile.

S To Selling Amazon Products On Your Website With Woocommerce

  • Step 0 Setup you WooCommerce Website
  • Step 1 Purchase & Install the WooCommerce Amazon Fulfillment Plugin
  • Step 2 Upload your products to your WooCommerce Online Store
  • Step 3 Setup 1-Click Upsells, Order Bumps Cross Sell Funnels to Sell like a PRO
  • Step 4 Sit back and make more profit as you grow with WooCommerce
  • Step 5+ build yourself a real defensible eCommerce business

What Is Seller Fulfilled Prime

The Seller Fulfilled Prime option is a hybrid Amazon fulfillment option that gives you the ability to store, pack, and ship your own products while allowing your products to be listed as Prime.

Basically, Seller Fulfilled Prime is the best of both worlds if you have a solid fulfillment strategy. You would manage your products and listings the same way you would with FBM but youll get access to Prime customers.

However, you do need to qualify for SFP. And its not easy.

Youll need to go through a trial period that involves a minimum of 300 orders. During the trial period, youll need to satisfy all of Amazons requirements.

This includes a cancellation rate of less than 1%, an on-time shipment rating of at least 99%, and use Buy Shipping Services for a minimum of 95% of the orders.

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Channel Control Is A Business

While you probably cant keep your channel 100% clean all of the time, you can put enough roadblocks in the way that most of these sophisticated gray-market sellers will decide that its too much of a hassle to sell your brand.

Theyll move on to some other brand that isnt managing trademark very well.

Your goal should be to keep your channel clean enough that you can either take back the Buy Box on Amazon yourself or at least ensure that your designated reseller owns the Buy Box most of the time.

Your pricing gets stabilized on Amazon and its much more consistent with your pricing on every other non-Amazon channel. And if you have consistent pricing online and offline, its a lot easier to recruit more brick-and-mortar retailers to sell your product.

Ive worked with companies who have lost their distributors because the distributors said:

Theres no point in my trying to get retailers to carry your product because you have no control over what happens on Amazon.

Once the brand got control of what was happening on Amazon, they were able to bring back distributors who could then get their products into brick-and-mortar channels.

How to Fight Fraud on Amazon

A brand needs to control its pricing.

To control pricing, you need to control distribution.

And if you are ignoring Amazon or the unauthorized sellers ripping off your product, then you have lost control of distribution.

Amazon Sets The Rules Of Its Own Marketplace

70+ Best

Amazon has the advantage of collecting massive amounts of customer search and customer purchase data which it shares only the minimum amounts with sellers.

This compendium of information gives Amazons first-party business Amazon Retail, i.e. private label a huge advantage of picking winners over and over when targeting products that it should sell on the marketplace.

Furthermore, Amazon Retail will almost always win the Buy Box, which is the mechanism through which sellers competing on the same product will get ranked to determine who gets the sale when the customer clicks the Add to Cart button.

If a seller is competing head-to-head with Amazon on a product, its not likely the seller will get many sales, given that Amazon Retail has the Buy Box advantage.

Amazon Retail also has sophisticated pricing software which allows it to lower prices to match prices already lowered by competing sellers. Amazon Retail is content not making any money on a sale so it is not likely that a competing seller will either get the sale from Amazon Retail or make any margin from the sale.

Bottom Line: Competing directly on the same listings that Amazon Retail offers is not likely to be an effective business model long-term.

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Consider The Dimension And Weight Of The Product

Large, heavy items will cost more to store and ship. Consider this when youre researching products.

Think about selling athletic shortsthese are lightweight and can be compressed into the size of a tennis ball. Theyre cheap and easy to ship, which is exactly what youre looking for.

Now think about selling picture frames. These come in a variety of shapes, sizes, and weights. They also require protection to ensure they dont get damaged in storage or transit. These factors make them a bit more expensive.

Looking back at our list of best-selling items, most of the products listed are lightweight and durable. Youre not going to worry about shipping or storing items like Crocs or batteries.

How We Built A 7 Figure Amazon Fba Business In 12 Months

by Jo Barnes | Jul 12, 2022

When my husband and I decided to try building an Amazon FBA business, little did we know wed grow it to over 1 million dollars in revenue within 12 months!

We had one small kitchen product which from our research seemed to be in fairly high demand on Amazon. It cost us less than $2 to buy it and ship it to Amazon. We sold it for $15 and within a year wed sold over 84,000 units.

Id never seen anything like it.

Im not saying it was easy. We worked our little buns off over that year, but it was incredible to see how the Amazon machine worked.

We continued to grow the business to revenues topping $3 million until we sold the business in 2020.

In this post Im going to break down the steps we took to grow the business, lessons we learned along the way , the secret sauce of Amazon FBA, what works now to grow an Amazon FBA business in 2022.

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Can I Sell On Amazon And My Own Website

Yes you can sell on Amazon AND on your own Website. This is something you SHOULD be aspiring to do as you grow your eCommerce business and your brand as a whole. You dont need to sell on Amazon AND your own website from the beginning. In fact we recommend you use your website to generate sales ON Amazon in the early stages of building your brand weve created an who want to reduce their 100% reliance on Amazon whilst still driving sales ON Amazon.

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Common Characteristics Of Best

How selling on Amazon works

Best-selling items come and go from Amazons bestsellers page, but there are reasons they make it to the top. Lets look at what these products have in common to see what we can learn:

  • Low Price: All of these products are relatively inexpensive. Almost everything is less than $100. Investing in low-cost items also helps you mitigate risk. Imagine stocking up on 100 Beats by Dreitd cost you $15K+. However, stocking up on 100 packs of baby wipes might only cost you $1,500. Now, the profit margins on these items widely vary, but so does the level of risk.
  • Recurring Purchase: A chunk of these items will likely be repeat purchases. People will need multiple packs of baby wipes, an annual renewal of antivirus software, the latest Echo accessory, and gift cards.
  • Evergreen: Products can go in and out of season, but some are more evergreen. Parents are always going to need baby wipes, and households will always need safety items. However, check this list again in December, and you might find holiday decor and toys to be one of the top-performing categories.
  • Positive Reviews: All of the products on this list have 4-star or higher reviews.
  • High Review Volume: These products all have thousands of reviews, meaning theyve had thousands of purchases and thousands of positive experiences.

Also Check: How To Watch Amazon Prime On Your Tv

Invest In Amazon Creative

You might think that companies selling on Amazon have no control over their own branding. After all, its Amazons webspaceyoure just a tenant, and so your brand looks like whatever Amazon wants you to look like. But really, nothing could be further from the truth.

Your brand identity can come through on Amazon with just as much power and uniqueness as anywhere else on the web. Amazon understands the power of a compelling brand story, and gives merchants the tools and space they need to tell those storiesyou just have to know how to do it properly.

You have the options to select from three Amazon creative options to help create brand equity on Amazon:

  • A+ Content

What Other Shipping Methods Should You Be Aware Of

The prices and services that consumers can select at checkout are referred to as the shipping method. Here are some shipping options you should be familiar with and how to charge for them:

  • Charge a sum determined on weight, location, and delivery time
  • Free delivery
  • A set price regardless of the number of products ordered

Recommended Reading: How To Sell Other Brands On Amazon

Do I Need An Llc To Sell On Amazon

An LLC is a limited liability corporation and is a formal business entity in the USA. US citizens are not required to register an LLC to sell on Amazon. If youre from outside of the US, you also do not need to register any kind of formal business. All you need is proof of residence in your home country, a valid phone number, and an internationally chargeable credit card.

However, as soon as you feel ready I do recommend setting up a formal entity. After all, youre approaching this as a business, not a hobby right? A business framework will help when dealing with US-based freight-forwarders, Amazon prep companies, and suppliers, etc. And also, with the correct insurances in place will protect you against any unlikely but distasteful scenarios.

The Cons Of Selling On Amazon

How to Start Selling Products on Amazon Successfully

Even if no one can contest the numerous advantages of selling your inventory on Amazon, it’s not all roses and there are many things to consider before taking the leap. Things like high competition, high selling fees, and order management will have an impact on your strategy and pricing and therefore need to be considered carefully.

Also Check: Where To Purchase Amazon Stock

Create A Professional Seller Account

If you currently run a Shopify store, youll likely need a professional Amazon account.

In the individual selling plan, every time you sell a product a .99 cent Amazon listing fee gets added which eats away at your margins, especially on top of other Amazon fees.

With a professional plan, you pay a $39.99 monthly subscription and a few category related fees with a professional seller account.

To register, go to Amazon Seller Central where youll have to provide your name, email, and password.

Next, youll need to share your business details.

Then, youll need to continue on with the process by providing Amazon your business billing, tax, and product information.

Amazon Sellers Only Get Their Money Every Two Weeks

When you sell an item on Amazon, payment is made by direct deposit to your checking account every 14 days, unless you’re one of the lucky few who still has a legacy account that allows you to request payments as often as every 24 hours.

Amazon does not accept PayPal from buyers. That can be a problem if you are using the revenue from your sales on other platforms to purchase more inventory to sell. There are ways to work around the two-week payment system, but you must apply and be approved by Amazon.

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What Is Amazon Fba Or Fulfilled By Amazon

Amazon FBA is a service Amazon provides where Amazon carries your inventory and ships the products to your customers on your behalf. Items that are fulfilled by Amazon are able to reach customers with faster shipping times.

When investigating how to sell products on Amazon, youll want to think about whether you want to ship items to customers yourself or have Amazon do it for you.

If you ship it out yourself, you can save additional Amazon fees. However, the mega online store has shipping guidelines youll still need to adhere to. If you dont consistently deliver products within a reasonable time frame you might eventually get booted off the platform.

Plus, by taking advantage of Amazon FBA, Amazon will take over the bulk of the work allowing you to have one less responsibility to worry about. Amazon FBA sellers also qualify for free shipping on orders over $49 for all items except books .

Note: Using Amazon FBA doesnt exempt you from selling on other sales channels. In other words, you can continue selling on your online store, Instagram, Facebook, and other marketplaces like Walmart and eBay.

How To Give Your Amazon Creative A Boost

How to Sell on Amazon FBA For Beginners [2021 FULL Guide]

Amazon branding is crucial for building your brand equity, building a connection with shoppers, and establishing trust. The good news is that there are more tools than ever at your disposal to build your branding on Amazon.

Here are a few ways to start the process of optimizing your creative on Amazon:

  • Work with an agency to transfer your brand equity to Amazon using A+ Content, EBC, and Stores.
  • Analyze Amazon customer reviews to understand what trigger words customers are searching for .
  • Pull your advertising search term report to understand what words consumers are searching for when they purchase your products.
  • Create comprehensive detail pages, images, and copy. By pairing attractive content and imagery, youll be able to more effectively communicate why consumers should buy your product.

More resources on Amazon Creative:

Now lets get into the game-changer: Amazon advertising.

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How To List A New Item To Sell On Amazon

1. If you’re not already logged in to your Amazon account, do so.

2. Once on your “Seller Dashboard,” click “Catalog” in the menu bar. Select “Add a Product” from the dropdown menu.

3. Choose “I’m adding a product not sold on Amazon.”

4. Browse item categories before choosing “Select category” and picking a subcategory.

5. Enter your product’s information in the “Vital Info” and “Offer” tabs.

6. Click “Save.”

S To Launch Your Amazon Fba Business

When we started we took a punt on a product that neither myself nor my husband had any interest in, it was simply a popular product with high demand and low competition.

Although that paid off for us at the time, its not a strategy I recommend. These days the competition is far greater and for both longevity and to stand out from the crowd in any meaningful way you need to choose a niche and build a brand rather than just opt for a trending product.

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Setup Your Business And Secure Any Necessary Licensing

Depending on your location and what youll be selling, you may be subject to needing a business license. Most suppliers will require you to have this already in place before they start to work with you. Need help? Start with the Small Business Administration, then reach out to your local Secretary of State. Hire an attorney to assist you with the process to make sure you dont miss anything.

Selling On Amazon With Fba

Amazon FBA Product Research Guide 2021

Amazon is a global leader in online selling because of its cutting-edge, worldwide order fulfillment networks. If you sign up for , you can store your products in their centers and scale your business reach by using FBA to pick, pack, ship, and provide customer service for your products.

Think about it: If youre just getting started in ecommerce, you need to take the time to market your business with digital ads, SEO, content, and PR. By selling on Amazon through FBA, you at least get to remove inventory management, shipping, the signature process, and returns from your plate.

Plus, Amazons customer service via email, phone, and live chat tools can save you from hiring employees to handle complaints and returns. Customer service and returns for any orders your customers place are handled directly by FBA and their knowledge base software database. This saves you time and frustration so you can focus on selling on Amazon to the best of your ability.

And there are more benefits:

  • You can use Amazon FBA to quickly grow your business since its fulfillment centers have been designed with wide-ranging inventory in mind.
  • There is no minimum number of products you must send in order to participate in this program.
  • Storing your products in the Amazon fulfillment centers is cost-effective.
  • You basically pay as you go.
  • Amazon charges for storage space and the orders it fulfills for your customers. Shipping costs are included in your fees.

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