How To Sell On Amazon

Selling on Amazon has become a lucrative opportunity for entrepreneurs of all sizes. With millions of shoppers browsing daily, Amazon provides access to an expansive audience that’s hard to reach otherwise. Whether you’re selling your own products or utilizing a dropshipping model, many new sellers are eager to learn how to sell on Amazon.

Understanding how to sell on Amazon is crucial for success in this competitive marketplace. From setting up your seller account to comprehending Amazon's fees and policies, getting the details right from the start is key. You may also wonder about the costs involved or how to sell without holding inventory—common concerns for new sellers. In this guide, we’ll cover the essential steps to launch and scale your Amazon business, including strategies for selling without managing inventory.

Let’s dive in!

Understanding Amazon Seller Accounts

Choosing the Right Seller Account Type

When you first start selling on Amazon, one of the first steps is selecting the right seller account type. Your decision will impact both your monthly costs and how you manage your sales.

• Individual Account: The Individual account is designed for sellers who expect to sell fewer than 40 items per month. There are no monthly subscription fees, but you’ll pay a small fee for each item you sell—around $0.99 per sale. This is a good option if you’re just getting started and testing the waters of selling on Amazon. However, keep in mind that you won’t have access to some of Amazon’s advanced selling tools and features, such as bulk listings, detailed reporting, and advanced promotional options.
• Professional Account: The Professional account is best for sellers who plan to sell more than 40 items per month. There’s a fixed monthly fee of $39.99 (as of 2024), but you don’t pay the $0.99 per item fee. This account type gives you access to advanced tools like advertising, inventory management, and detailed reports that can help you scale your business more effectively. It’s the preferred option for most serious Amazon sellers, as it also allows you to qualify for Fulfillment by Amazon (FBA), a service that can help you manage shipping, returns, and customer service.

The choice between an Individual or Professional account depends on your selling goals. If you're just starting out or planning to sell a few products, an Individual account could be sufficient. But if you're aiming for growth and need to scale quickly, a Professional account will offer the tools and resources you need to succeed.

Setting Up Your Seller Account

Once you've decided on the account type, setting it up is straightforward. Here's a simple breakdown:

• Create Your Amazon Seller Account: Go to Amazon’s Seller Central and choose either the Individual or Professional option. You’ll need to provide some basic business information, including your legal name, business name, email address, and phone number.
• Provide Tax Information: Amazon requires tax information to comply with local tax laws. You’ll need to provide a tax identification number (TIN) or social security number (SSN) for individuals. Match Name & SSN is essential for identity verification, especially during tax season.
• Bank Account and Payment Information: You’ll need to link a bank account so Amazon can deposit your sales earnings. Make sure the account you use is set up to receive payments in the currency of your marketplace (e.g., US dollars for Amazon.com).

Once you’ve completed these steps, you’ll be ready to start listing products and making sales.

Deciding What to Sell on Amazon

Product Research: How to Find Profitable Items

Choosing the right products is essential to success on Amazon. “How to sell things on Amazon” isn’t just about listing random items—it’s about finding products with strong demand and low competition. Here’s how to conduct thorough product research:

• Use Amazon’s Best Seller Rank (BSR): One of the easiest ways to identify high-demand products is by looking at Amazon’s Best Seller Rank (BSR). This gives you a sense of how well a product is selling relative to others in the same category.
• Google Trends and Keyword Research: Use Google Trends to see if there’s growing interest in a particular product or category. Keyword research tools like Ahrefs or SEMrush can help you identify popular search terms that shoppers are using.
• Look for Gaps in the Market: Browse through Amazon’s marketplace and look for gaps in the product offerings. If you find a product that’s frequently out of stock or has low-quality listings, this could be an opportunity for you to step in and meet that demand.

Once you’ve identified a potential product, you’ll want to make sure it’s something people are actively searching for. Don’t forget to consider shipping costs and product weight—both of which are important factors in Amazon’s fees.

Sourcing Your Products: Finding Trusted Suppliers

Once you’ve decided on a product, the next step is finding a reliable supplier. If you’re wondering “how to sell items on Amazon without inventory”, dropshipping is a popular model to explore. Dropshipping allows you to sell products without handling physical inventory. This model is especially useful for new sellers who want to minimize upfront costs.

One option to consider is using Spocket, a platform that connects Amazon sellers with high-quality dropshipping suppliers. Spocket allows you to find suppliers from the US, Europe, and other regions, offering faster shipping times compared to traditional overseas suppliers. This can be a game-changer for sellers who are focused on offering quality products with fast delivery times.

By using Spocket, you can source products from dropshipping suppliers who ship directly to your customers, meaning you don’t have to worry about warehousing, packaging, or managing stock levels. It’s an ideal solution if you’re looking to start a business without a huge upfront investment.

Private Label vs. Reselling vs. Wholesale: Which Model is Right for You?

When deciding how to sell on Amazon, you'll need to choose a business model. Here are three common models to consider:

• Private Label: In this model, you work with a manufacturer to create a product with your own brand name and logo. This is a great option if you want to build a long-term brand on Amazon. While it requires more upfront investment, it allows you to have more control over your product and profit margins.
• Reselling: Reselling involves purchasing products from other manufacturers or wholesalers and selling them at a higher price on Amazon. This model requires less upfront investment than private labeling, but the competition can be fierce.
• Wholesale: With the wholesale model, you buy products in bulk from a manufacturer or distributor and sell them at a markup. You don’t have to worry about branding or product development, but you’ll need to manage larger inventory quantities.

Each model has its own pros and cons, and the best choice for you depends on your goals, budget, and long-term vision for your business.

Setting Up Your Amazon Storefront

Creating a Professional Seller Profile

Your Amazon storefront is your virtual “shopfront,” so it’s important to make it professional and trustworthy. Start by creating an attractive, informative seller profile that clearly describes your business and the products you sell. Include:

• A Compelling Business Name: Your store name should reflect your brand and the products you sell.
• Business Details: Provide a clear and honest description of your business, including your shipping and return policies.
• Product Listings: Make sure your product listings are well-written, with high-quality images and detailed descriptions. Be sure to include relevant keywords (such as how to sell on Amazon and how to contact seller on Amazon) to help potential buyers find your products.

Optimizing Listings for Maximum Visibility

Once your storefront is set up, the next step is optimizing your product listings for maximum visibility. Use high-quality images, write detailed and keyword-rich descriptions, and price your products competitively. Don’t forget to take advantage of Amazon’s advertising tools to increase your product’s visibility.

Conclusion

Selling on Amazon is an exciting opportunity for entrepreneurs looking to tap into a massive online marketplace. By following the steps outlined in this guide—choosing the right seller account, finding the right products, and optimizing your storefront—you’ll be well on your way to building a successful business.

Remember, Amazon is a competitive platform, so success takes time, effort, and strategic planning. Whether you're using dropshipping tools like Spocket, or looking to build your own brand, there are plenty of ways to succeed if you're willing to put in the work. Keep learning, keep adapting, and soon you’ll be well on your way to becoming a successful Amazon seller!