How To Sell On Amazon

Selling on Amazon is one of the best ways to tap into a massive global market. With millions of shoppers browsing daily, Amazon offers an unparalleled opportunity for entrepreneurs, small businesses, and dropshipping enthusiasts alike. Whether you are selling your own products or utilizing a dropshipping model, learning how to sell on Amazon is essential for success in today’s competitive e-commerce landscape.

This comprehensive guide will walk you through everything you need to know to start selling on Amazon, from setting up your seller account to finding the right products and marketing your store. We’ll also explore how you can sell on Amazon without holding inventory, leveraging dropshipping and Fulfillment by Amazon (FBA). Let's dive into the steps to launch your Amazon business successfully.

Amazon Seller Account

Before you can start selling on Amazon, one of the first steps is to set up the right Amazon Seller Account. Selecting the appropriate account type is essential because it will determine which features and tools you’ll have access to, along with the fee structure associated with your sales. By understanding the different seller account types, you can ensure you’re setting yourself up for success from the start.

Choosing the Right Seller Account Type

Amazon offers two primary types of seller accounts: Individual and Professional. Each account type is designed for different types of sellers and businesses, so it’s important to evaluate your needs before selecting one.

1. Individual Account

An Individual Account is best suited for sellers who are just starting out or only plan to sell a limited number of items each month. This account type is perfect if you’re testing the waters on Amazon or selling on a smaller scale.

• Best for: Sellers with fewer than 40 sales per month.
• Fee Structure: There is no monthly subscription fee for an Individual Account. However, there is a $0.99 fee per sale. This means that each time you sell an item, Amazon will deduct a $0.99 fee from your earnings.
• Limitations: With this account type, you’ll have limited access to advanced features, such as the ability to use bulk listing tools, detailed performance reports, and promotional tools. These limitations are mainly designed for sellers who are testing or selling a small number of products. This account also does not provide access to Fulfillment by Amazon (FBA), which is useful for those wanting to outsource inventory storage, packaging, and shipping.

An Individual Account is ideal for someone who isn’t sure whether selling on Amazon will be sustainable for their business. If you have a relatively low volume of sales, this type is the most cost-effective option.

2. Professional Account

A Professional Account is better suited for sellers who have bigger goals, including scaling their Amazon business or needing access to Amazon’s advanced features. This account type is designed for sellers who plan to sell more than 40 items per month.

• Best for: Sellers who plan to sell more than 40 items per month and want to expand their reach on Amazon.
• Fee Structure: Professional sellers pay a $39.99 monthly subscription fee (as of 2024), but there is no additional fee per sale. This means that even though you pay a flat fee each month, there is no per-sale deduction, making it cost-effective for sellers with higher sales volumes.
• Benefits: This account type unlocks access to a variety of advanced tools, such as advertising (Sponsored Products ads), inventory management tools, detailed reports, and Fulfillment by Amazon (FBA). Professional sellers also have the ability to create promotions and deals, access bulk listing tools, and use advanced selling features to optimize their listings and sales.

If you have aspirations to grow your Amazon business and need to manage a higher volume of sales, the Professional Account will give you the tools you need to scale quickly.

Which Account to Choose?

Choosing between an Individual or Professional account largely depends on the scale of your business and the tools you need:

• If you're just starting out or only have a few items to sell, the Individual Account is a cost-effective way to test the Amazon marketplace. You won’t have to pay a monthly fee, and it allows you to get a feel for how Amazon’s marketplace works without committing to higher fees upfront.
• If you plan to scale quickly, or if you want access to more advanced selling tools, the Professional Account is the better option. The $39.99 monthly fee is worthwhile for those who expect to exceed 40 sales a month, as it unlocks the tools necessary to run and grow a more professional and profitable business on Amazon.

Setting Up Your Seller Account

Once you’ve decided which account type suits your business, it’s time to set up your Amazon seller account. Setting up your account is a simple process that requires providing some key business information. Here are the steps to follow:

1. Create Your Amazon Seller Account

To get started, visit Amazon Seller Central and sign up for an account. Choose whether you want to create an Individual or Professional account. You will be asked to provide the following information:

• Legal name and business name: This should be the name registered with Amazon. If you’re a sole proprietor, this may be your personal name.
• Email and phone number: These will be used for communication and account management.

Once you’ve filled out this information, Amazon will guide you through the rest of the registration process.

2. Provide Tax Information

Amazon is required to collect tax information for compliance with local tax laws, which is why you'll need to provide your Tax Identification Number (TIN) or Social Security Number (SSN). This helps Amazon verify your identity and ensures that you're in compliance with tax regulations. Be sure that the name on your account matches the name associated with your TIN or SSN for identity verification.

• TIN: For businesses registered in the US, the TIN (Employer Identification Number or EIN) is required for tax reporting purposes.
• SSN: If you're an individual seller (sole proprietorship), you’ll likely need to provide your SSN.

3. Link a Bank Account

In order to receive payments for the products you sell on Amazon, you’ll need to link a bank account to your seller account. Amazon will deposit your sales proceeds into this account after deducting any applicable fees. Make sure the account you link is compatible with the currency of your marketplace (e.g., US dollars for Amazon.com or GBP for Amazon UK).

Additionally, Amazon requires bank account details for verification, so make sure the name on the bank account matches the name you provided in the registration process.

After Completing the Setup

Once you've completed the registration steps and your Amazon seller account is set up, you’re ready to start listing products for sale. The next steps in your journey will involve researching profitable products, creating listings, and setting up your store.

By ensuring that your account is properly set up with all necessary information, you'll be well-positioned to start selling successfully on Amazon and begin growing your e-commerce business.

How to Find Profitable Products to Sell on Amazon

Selecting the right products is crucial to the success of your Amazon business. The market is competitive, and you need to choose products that have high demand and low competition. Here are the best practices for finding profitable products:

1. Product Research: How to Find the Best-Selling Items

Finding the right products to sell requires thorough research. Below are strategies to identify high-demand, low-competition items:

1. Amazon’s Best Seller Rank (BSR)

The Best Seller Rank (BSR) on Amazon shows how well a product is performing in its category. A low BSR (e.g., 1-100) indicates that the product is selling well. By identifying high-BSR products in your category, you can focus on selling items with proven demand.

2. Leverage Google Trends

Use Google Trends to check the popularity of a product over time. This tool allows you to identify products that are gaining popularity and have the potential for high sales volume in the future.

3. Keyword Research Tools

Tools like Ahrefs, SEMrush, and Amazon’s Keyword Tool can help you identify trending products based on high search volumes. By searching for high-traffic keywords, you can spot products that shoppers are actively looking for.

4. Identify Gaps in the Market

Browse Amazon’s marketplace to spot gaps in the market—these could be products with poor listings, low-quality images, or frequent stock-outs. These opportunities could be your chance to step in and offer a better version of the product.

5. Consider Product Weight and Shipping Costs

Product weight impacts both shipping costs and Amazon fees. Lighter products are cheaper to ship, which means lower costs for you. When researching products, ensure that shipping costs fit within your business model.

Choosing a Product Category

Amazon offers a wide range of product categories. Some of the most profitable categories include:

1. Electronics and Gadgets

Tech gadgets are consistently in high demand, particularly during product launch seasons. However, the competition in this category is often fierce, and products may require significant investment.

2. Health and Personal Care

Products like vitamins, skincare, and fitness equipment remain popular throughout the year. This category has seen consistent growth, especially in the wellness and self-care sectors.

3. Home and Kitchen

Appliances, home décor, and organizational tools are evergreen products in high demand. Many shoppers purchase home-related items year-round, making this category a safe bet.

4. Toys and Games

Toys and games, especially around holidays like Christmas and Easter, can see explosive sales. However, the competition in this category can be high, so targeting niche toys or seasonal items may be a good strategy.

Sourcing Products: How to Sell on Amazon Without Inventory

Selling on Amazon doesn’t always require holding inventory. The dropshipping model allows you to sell products directly from suppliers, eliminating the need for you to manage inventory. Here's how you can sell on Amazon without holding products:

Using Dropshipping to Avoid Inventory Costs

Dropshipping allows you to sell products from suppliers who ship directly to the customer. When an order is placed, the product is shipped directly from the supplier, and you don’t have to worry about storing or handling inventory.

Dropshipping with Spocket

Spocket is a platform that connects sellers with high-quality suppliers from the US, Europe, and other regions. Spocket helps Amazon sellers offer fast shipping and top-quality products without managing inventory. The platform also allows you to automate the sourcing of products, making it a great solution for new entrepreneurs with minimal upfront investment.

Private Label vs. Reselling vs. Wholesale: Which Model Should You Choose?

When deciding how to sell on Amazon, there are three primary business models to consider: private labeling, reselling, and wholesale. Each model has its pros and cons, depending on your goals, budget, and expertise.

Private Labeling

Private labeling involves sourcing products from manufacturers and branding them under your own name. This model offers higher profit margins and more control over your product but requires more upfront investment and time.

Reselling

Reselling involves buying products from manufacturers or wholesalers and reselling them on Amazon for a profit. This model has lower upfront costs but comes with the challenge of competing with other resellers.

Wholesale

Wholesale involves purchasing products in bulk from manufacturers or distributors and reselling them at a markup. This model requires you to manage inventory but eliminates the need for product development or branding.

Creating and Optimizing Your Amazon Storefront

Your Amazon storefront acts as your virtual “shopfront.” To succeed, it’s essential to create a professional, optimized storefront that encourages visitors to make purchases.

1. Setting Up a Professional Seller Profile

A strong seller profile includes the following:

• Business Name: Choose a name that resonates with your target audience and reflects your brand identity.
• Business Details: Be transparent about your business. Include clear shipping, return policies, and customer service information.
• Product Listings: Create high-quality listings with detailed descriptions, clear images, and relevant keywords to improve searchability.

2. Optimizing Your Listings for Maximum Visibility

To maximize visibility and drive sales, optimize your product listings by focusing on these key areas:

• High-Quality Images: Use clear, professional photos to showcase your products from multiple angles.
• Keyword-Rich Descriptions: Incorporate relevant keywords like “how to sell on Amazon,” “best products to sell on Amazon,” and “Amazon seller account” into your product descriptions to enhance discoverability.
• Competitive Pricing: Research competitors’ pricing to ensure your prices are competitive while maintaining healthy profit margins.
• Amazon Advertising: Leverage Amazon’s Sponsored Products ads to drive targeted traffic to your listings.

3. Fulfillment by Amazon (FBA): Scaling Your Business with Ease

Fulfillment by Amazon (FBA) is a game-changer for sellers looking to scale their business. By using FBA, Amazon handles storage, packing, and shipping of your products, freeing up your time to focus on growing your business.

Benefits of FBA:

• Faster Shipping: FBA offers fast, reliable shipping, which is attractive to customers and increases your chances of winning the Buy Box.
• Customer Service and Returns: Amazon handles customer service and returns for you, which reduces your workload.
• Scalability: As your business grows, FBA allows you to scale quickly without the need to manage fulfillment logistics yourself.
  

Managing Your Amazon Sales and Customer Service

Once your business is up and running, the next challenge is managing your orders, inventory, and customer service efficiently.

Managing Orders and Inventory

Amazon Seller Central is your primary tool for managing your business. It provides an interface to track orders, monitor sales performance, and stay on top of inventory levels. Inventory management tools in Seller Central help you keep track of stock, reorder products, and manage your fulfillment strategy.

Customer Service: Building a Positive Reputation

Great customer service is essential for building trust and increasing sales. Responding promptly to customer inquiries, resolving complaints quickly, and maintaining a professional tone can significantly improve your store’s reputation.

Conclusion: Start Selling on Amazon Today

Selling on Amazon offers immense potential for entrepreneurs, and it’s easier than you think to get started. By following the steps outlined in this guide—setting up your seller account, conducting thorough product research, and optimizing your storefront—you’ll be on your way to creating a profitable Amazon business.

With the right approach and tools like Spocket and Fulfillment by Amazon (FBA), you can start selling without holding inventory and scale your business in no time. The key to success is staying adaptable, optimizing your listings, and providing excellent customer service.