Sell on Amazon: Learn the step-by-step process to start selling, from setting up your account to choosing the right fulfillment option and optimizing your listings for success
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What Is Amazon and Why Should You Sell on Amazon?
Amazon is the world's largest online retailer and a leading cloud service provider. Starting as an online bookstore, it has evolved into a global e-commerce giant specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence. Selling on Amazon gives you access to an extensive marketplace offering everything from clothing, cosmetics, premium food, jewelry, and electronics to pet supplies, furniture, toys, and household items.
With its vast network of fulfillment centers, Amazon optimizes the selling experience for both buyers and sellers, making it a trusted platform worldwide.
How to Register to Sell on Amazon?
Step 1: Visit amazon.com and create an account.
Step 2: Click on Account & Lists in the top right corner.
Step 3: Follow the instructions to set up your seller account.
How Much Does It Cost to Sell on Amazon?
The cost of selling on Amazon includes a subscription fee, which ranges from $0.99 per item sold (for individual sellers) to $39.99 per month (for professional sellers).
What Are the Main Benefits of Selling on Amazon?
1. How Does Selling on Amazon Increase Your Sales?
Millions of customers visit Amazon every month, making it a top choice for online shopping. By selling on Amazon, you benefit from its established credibility and the trust it has built with customers.
Products sold through Amazon are more likely to attract new customers who rely on Amazon's reputation for quality and customer service. Additionally, Amazon's Alexa-enabled devices and Prime membership program further enhance visibility and customer engagement.
2. Can Selling on Amazon Expand Your Business Internationally?
Yes! Amazon allows sellers to reach global markets with minimal risk. Although it operates in 13 countries, its platform supports shipping to over 100 countries. Amazon handles international order management, payment processing, and local customer support, making it easier to test new markets.
Steps to expand internationally:
- Register for the target marketplace.
- List your products.
- Plan your shipping strategy.
- Use Amazon’s tools to manage your business.
3. Does Selling on Amazon Reduce Marketing Costs?
Absolutely! Amazon acts as a search engine for products, giving you immediate access to millions of potential customers. While additional advertising can help you stand out, optimizing your product listings is key to visibility.
Popular advertising options on Amazon:
- Sponsored Products
- Sponsored Brands
- Sponsored Display
4. Can You Sell on Amazon Without Managing Inventory?
Yes, with Fulfillment by Amazon (FBA), you can send your products to Amazon's warehouses. They handle storage, packaging, and shipping. This allows you to focus on growing your business while enjoying benefits like Prime shipping and access to the Buy Box.
What Are the Challenges of Selling on Amazon?
While selling on Amazon offers numerous benefits, there are challenges:
- High competition: Winning the Buy Box is crucial for sales success.
- Selling fees: Amazon charges referral fees and FBA service fees based on revenue.
- Data management: Updating product data daily requires time and technical expertise.
What Are the Popular Selling Methods on Amazon?
How Does FBA Work When Selling on Amazon?
Fulfillment by Amazon (FBA) allows sellers to store products in Amazon’s warehouses. Amazon takes care of inventory management, packaging, and delivery.
Benefits:
- Saves on logistics and storage costs.
- Increases sales with Prime shipping.
- Professional handling of customer service and returns.
Should You Use FBM to Sell on Amazon?
Fulfillment by Merchant (FBM) lets sellers manage their inventory, packaging, and shipping. Amazon provides the platform, while you handle the rest.
Benefits:
- Complete control over operations.
- Lower service fees.
How Does Dropshipping Help You Sell on Amazon?
Dropshipping enables sellers to list products without storing inventory. Once an order is placed, the supplier handles storage, packaging, and shipping directly to the customer.
Benefits:
- No upfront inventory investment.
- Minimal risk of unsold stock.
Can You Sell on Amazon as an Affiliate?
Yes! Through Amazon Affiliate, you earn commissions by promoting products on social media, blogs, or websites. Simply share product links and earn income when users purchase through your links.
Benefits:
- No inventory or shipping responsibilities.
- Ideal for content creators and influencers.
What Is Merch by Amazon, and How Can You Sell on Amazon with It?
Merch by Amazon lets you sell custom-designed apparel without handling production or shipping. Upload your designs, and Amazon handles the rest.
Benefits:
- Zero production or storage costs.
- Perfect for designers or small-scale entrepreneurs.
Selling on Amazon offers vast opportunities for growth, visibility, and profitability. Whether you’re a new entrepreneur or an established seller, Amazon’s tools and services make it a versatile platform for scaling your business.
What Do You Need to Prepare to Sell on Amazon?
What Are the Selling Plans Available to Sell on Amazon?
Amazon offers two main selling plans to suit your business needs:
- Individual Plan: Costs $0.99 per item sold.
- Professional Plan: Costs $39.99 per month with no limits on the number of products sold.
Both plans grant access to optional programs and tools. You can switch or cancel plans anytime. Additionally, Amazon charges a referral fee for each item sold and may apply other selling fees depending on the circumstances. Optional tools and programs may require additional fees.
How to Create a Seller Central Account to Sell on Amazon?
Once you've chosen your selling plan, you’ll need to register with Amazon and create a Seller Central account. This account can be linked to your existing Amazon customer account email or a separate business email.
Requirements to Create a Seller Central Account:
- Bank account and routing number.
- Credit card capable of international transactions.
- Government-issued identification.
- Tax information.
- Contact phone number.
How to Set Up Your Seller Central Account to Sell on Amazon?
After registration, you’ll gain access to your Seller Central account, the hub for managing all your selling activities on Amazon. Here, you can:
- List and price products.
- Manage inventory.
- Process customer orders.
- Create promotions and discount codes.
- Track payments and fees.
Before you start selling, ensure your Seller Central account information is accurate by reviewing these key settings:
- Public seller profile.
- Payment and business information.
- Shipping and return policies.
- Tax settings.
- Notification preferences.
- Login and administrative rights.
How Does the Amazon Seller App Help You Sell on Amazon?
The free Amazon Seller App is designed to help you manage and grow your Amazon store anytime, anywhere. With this app, you can:
- Handle tasks from your smartphone or tablet.
- Monitor sales performance and make quick updates.
Why Should You Register Your Brand When Selling on Amazon?
If you own brand rights, enrolling in the Amazon Brand Registry before listing your products offers significant benefits:
- Better control over product detail pages.
- Access to free tools like A+ Content, Stores, and Brand Analytics to boost sales and grow your brand.
- Automatic brand protection and detailed reporting tools.
What Are the Steps to Register and Start Selling on Amazon?
Follow these simple steps to begin selling on Amazon:
Step 1: Visit Amazon's Official Website
Go to amazon.com and click Account & Lists at the top-right corner. Select Start Here to begin.
Step 2: Enter Personal Details
Provide the following details:
- Your Name
- Email Address
- Password (and confirm it)
- Click Next to proceed.
Step 3: Verify Your Email Address
- Check your email for an OTP sent by Amazon.
- Enter the OTP to verify your account.
Step 4: Submit Personal and Business Information
Enter details such as:
- Contact phone number.
- Business address.
- Store name or URL.
- Complete phone verification by entering the PIN sent via SMS and click Verify.
Step 5: Add Payment and Tax Details
Provide your VISA card details and tax information as required.
Step 6: Upload Product Listings
Once registration is complete, start uploading product details and officially begin selling on Amazon.
How and When Do Sellers Get Paid on Amazon?
Amazon provides a transparent and efficient payment process, ensuring sellers receive their earnings promptly.
Payment Timeline
Amazon processes payments approximately twice per week after confirming the successful shipment of orders.
Payment Methods
- Payoneer Card: A convenient international payment solution for transferring funds to a local bank account in Vietnam.
- Check: For sellers who prefer receiving funds through bank cashing services.
- Amazon Gift Card: Converts earnings into store credits for purchases on Amazon.
What Are the Key Costs to Sell on Amazon?
Understanding and managing the costs involved in selling on Amazon is essential for effective budgeting.
1. Account Maintenance Fees
- Individual Plan: $0.99 per item sold.
- Professional Plan: $39.99/month with unlimited sales.
Choosing the right plan optimizes costs and maximizes profit.
2. Fulfillment Fees (FBA)
If you use Fulfillment by Amazon (FBA), fees are charged for storage, packaging, and shipping.
- Fees start at $2.35 per unit, depending on size and weight.
3. Referral Fees
- Amazon charges a referral fee based on a percentage of the product's selling price.
- Fees range from 8% to 15%, depending on the category.
4. Storage Fees
- For products stored in Amazon's warehouses, fees depend on the storage space used.
- Costs range from $0.48 to $2.40 per cubic foot, varying by season and duration.
5. Additional Fees (if applicable)
- Long-term storage fees: Charged for inventory stored over 365 days.
- Advertising fees: Costs for promoting products on Amazon.
- Premium account services: For advanced seller support features.
Important Note: Carefully manage your expenses to optimize profitability and avoid unnecessary costs.
Selling on Amazon offers immense opportunities for growth, and understanding the platform’s processes and fees is key to success!
The Shipping Process When Selling on Amazon: What Sellers Need to Know
When selling on Amazon, the shipping and order fulfillment process plays a crucial role in getting products to buyers efficiently. Below is a detailed description of the shipping steps based on images:
Shipping Options from Seller to Amazon
Sellers can choose from the following shipping methods to send products to Amazon's fulfillment centers:
- SEND Ocean: Sea freight, ideal for large shipments and cost-effective.
- SEND Air: Air freight, faster but more expensive.
- Third-Party Carrier: Using third-party shipping services as per specific needs.
Amazon Fulfillment Centers (FBA)
After the products are shipped to Amazon, they are received, inspected, and stored at Amazon's FBA fulfillment centers. Here, products are ready to be processed when an order is placed by the customer.
Order Fulfillment by Amazon
When a customer places an order, Amazon handles the entire fulfillment process on behalf of the seller:
- Packaging the product.
- Shipping to the customer via Amazon’s logistics network.
Self-Fulfillment
If a seller does not use FBA, they can fulfill orders themselves through two methods:
- Buy Shipping: Use Amazon's provided shipping solutions.
- Third-Party Carrier: The seller chooses their own shipping carrier to send the product to the customer.
Step-by-Step Guide on Selling on Amazon
Selling on Amazon is a great opportunity to reach the global market. Below are 5 detailed steps to help you prepare and launch your business on the platform.
Register Account & Understand Account Health
First, you need to create a seller account and understand the rules to maintain stable operations:
- Register Account: Complete the necessary information to start selling.
- Seller Policies: Adhere to Amazon’s seller guidelines.
- Account Health: Monitor and maintain performance metrics.
Register Your Trademark & Build Your Brand
Protecting and growing your brand is important for long-term success:
- Trademark Registration: Ensure intellectual property rights for your products.
- Amazon Brand Registry: Use Amazon’s tools to enhance brand development.
- Build International Brand: Increase product visibility in global markets.
Prepare Product Listings
A professional product listing helps attract buyers:
- Create Listings: Add clear and compelling product information.
- Optimized Product Page: Include title, images, descriptions, and keywords.
- Quality Control: Ensure product information is accurate before publishing.
Prepare Logistics
Ensure products reach customers quickly and on time:
- Create FBA Shipments: Send inventory to Amazon’s fulfillment centers.
- Follow Guidelines: Ensure products meet packaging and shipping requirements.
- Shipping Process: Set up proper shipping details when sending to Amazon.
Prepare Promotions & Advertising
Promoting products helps boost sales and reach more customers:
- Set Up Ads: Utilize Amazon’s advertising solutions.
- Keyword Strategy: Optimize keywords to improve product visibility.
- Analyze Reports: Track ad campaign performance and make adjustments.
Optimizing Your Product Page on Amazon
Your product detail page on Amazon is where you provide essential information to customers about your products. Optimizing this page will not only increase visibility but also attract buyers and boost sales. Below are key points to consider:
Create a Professional Product Listing
When multiple sellers offer the same product, Amazon consolidates listings into one product detail page. This makes it easier for customers to compare and decide.
Product Detail Page Structure
An effective product page should include:
- Title: Max 200 characters, capitalize the first letter of each word.
- Images: Minimum size 500 x 500 pixels or 1,000 x 1,000 pixels for better display quality.
- Variants: Options for color, size, or scent.
- Bullet Points: Short sentences highlighting product features and benefits.
- Buy Box: Where customers can add products to the cart or buy instantly.
- Description: Include keywords to improve searchability.
Use Enhanced Content to Increase Engagement
If your brand is registered, take advantage of enhanced content tools:
- Video Introduction: Helps customers understand the product and reduces returns.
- A+ Content: Show your brand story, product comparisons, and add high-quality images. This content can increase sales by up to 20%.
- 3D Models and AR: Provide an immersive shopping experience, allowing customers to view products from all angles or "try" them in their space.
Ensure Safety & Compliance
Your products must comply with Amazon’s and legal safety regulations. Ensure:
- Product Safety Policies
- Restricted Products Categories
Register or Create a Product ID (GTIN)
Amazon uses Global Trade Item Numbers (GTINs) such as UPC, EAN, or ISBN to match your product to the detail page. If your product does not have this code, you can request a GTIN exemption from Amazon.
Link or Create Product Listings
If the product already exists on Amazon, simply link to the existing page. If the product is new, you will need to create a new product detail page.
Note: Some products, categories, or brands require approval before listing.
Pricing Strategy for Selling on Amazon
Before setting prices for your products, it’s important to understand the key factors Amazon uses to manage pricing within your store. An effective pricing strategy not only helps you compete but also increases your chances of appearing in prominent positions, thereby optimizing revenue. Here are the key pricing concepts to note:
Competitive External Price
This is the lowest price at which a product is sold by major retailers outside of Amazon. Amazon provides this information to sellers for reference. To be competitive, your listed price plus shipping should match or be lower than this external price.
Featured Offer
The "Featured Offer" is where customers often see the top listing on the product detail page, with the "Buy Now" or "Add to Cart" buttons. To compete for this position, sellers must:
- Set a competitive price.
- Use a Professional Selling Plan.
- Ensure the product is in new condition.
Lowest Price on Amazon
This is the lowest price offered by any seller on Amazon. Amazon displays this price so other sellers can adjust to match or offer a better price.
Optimize Prices Using Automation Tools
If you want to save time and optimize pricing, Amazon's Automate Pricing tool is a useful solution. This tool automatically adjusts your prices to increase your chances of appearing in the Featured Offer while maintaining competitive pricing.
Setting Up Sales Performance Reports on Amazon
To sell on Amazon, you need to comply with the platform's legal and policy guidelines. Amazon provides an Account Health Dashboard to monitor policy compliance and sales performance. Here are the key metrics to keep an eye on to ensure good performance:
Customer Service Performance
Your customer service performance is measured by the Order Defect Rate (ODR), which is the percentage of orders showing signs of poor service (e.g., negative customer feedback or chargebacks). Amazon requires sellers to maintain an ODR of under 1%.
Account Health Rating
Amazon gives sellers a comprehensive view of compliance with important policies such as intellectual property, authenticity, product descriptions, and restricted products. To maintain a Good Health Rating, resolve any policy violations listed in the Account Health Dashboard. Accounts with Risk or Danger ratings may be deactivated.
Delivery Performance
You can use three key metrics to evaluate your delivery performance:
- Late Shipment Rate (LSR): The percentage of orders that you shipped late. Keep this under 4%.
- Cancellation Rate (CR): The percentage of orders you cancel before shipping. Maintain this under 2.5%.
- Valid Tracking Rate (VTR): The percentage of your orders with valid tracking information. Ensure this rate is above 95%.
Monitor performance to improve sales results
To maintain consistent sales performance and avoid risks from policy violations, regularly monitor these metrics in the Account Health Dashboard. Improving these metrics will increase your chances of successful sales and help maintain your account's long-term operation on Amazon.
Advertising and Product Marketing Strategies on Amazon
To help your products and brand reach more customers, you can use both free and paid advertising methods. Here are some effective strategies to apply:
- Create Discount Coupons Create discount coupons that appear on the Amazon Coupons page, search results, and product detail pages. This is a great way to attract customers and boost sales.
- Offer Promotional Programs You can create promotional programs such as percentage discounts or "Buy 1 Get 1" deals to attract buyers and increase sales.
