How to sell on Amazon

June 15, 2021

Amazon is one of the most popular selling platforms in the world, used by about 300 million customers. Whether you have your own online store or you sell your products through auction platforms, you should try to reach an even wider audience by offering your goods to Amazon customers.

It has been noted that consumers are more likely to purchase an item of interest when they can purchase it through Amazon rather than through an unfamiliar website. The fact that Amazon thoroughly verifies its sellers makes it considered a safe shopping platform. What’s more, it allows you to sell in many foreign markets, which allows you to reach a whole new audience.

Amazon – user fees

The cost of selling on Amazon depends primarily on the plan you choose and the category of product you offer. You can choose between an individual plan and a professional plan. The plan is chosen at the beginning, while creating the account, but it is possible to change the plan at any time.

In the individual plan, which is primarily aimed at small sellers, you will pay $0.99 (excluding tax) for each item sold. In comparison to the professional plan, this one has a lot of limitations, choosing it you will not be able to advertise your goods and use the selling tools offered by Amazon.

If you plan to sell more than 40 items per month, it will be more profitable for you to use the Professional plan which is $39.99 (excluding tax) per month. By choosing this plan, you can take advantage of many improvements offered by the service, such as the ability to advertise goods, use sales tools and sell products that are in restricted categories.

In addition to plan fees, sellers pay a commission on the sale of each item. Commissions vary by product category and can range from 2.5% to as much as 45%. 

Settlement takes place every 14 days and is done via electronic transfer. To the seller’s account, it is sent the amount of the turnover minus the subscription fee and the sales commission. In case the balance on the seller’s account is negative, the money will be taken from the linked card. 

Create and configure your account

After signing up to Amazon, the first step will be to fill out the form. It is quite extensive, but you will find all the necessary information, so just filling in your information should not be a problem.

Amazon carefully verifies the identity of each seller, so you may be asked for scans of ID or bank statements. On the form, you complete the country of registration, type of business, and registered company name. Then you enter the information about the company, the seller, add your credit card details and the store information. Make sure the data is correct, you will not be able to change it later. 

After filling out the form, you will have access to the Amazon Seller Central Dashboard where you can manage your account settings. In addition, those who have a TAX number can take advantage of an automated invoicing system free of charge.

Adding products to your store

You can search for products from the catalog (if such a product is sold on Amazon) or add them to the system by filling in the appropriate form. It is also possible to add multiple goods from a file, for this purpose a special template is downloaded. It is very intuitive to add products, and an additional option is the selection of several variants of the same product – for example, with different color. 

Amazon cares a lot about consumer trust, so it prevents the sale of illegal or dangerous goods. For some goods, you must request permission to sell them by additionally sending the required documents, for example, a purchase invoice or authorization from the product brand to sell. 

Amazon checks added products very carefully – they must have a Global Trade Item Number (GTIN), such as a UPC, EAN, JAN, or ISBN. If your product does not have one, you can apply for a GTIN exemption.

Shipment of goods

You can ship the goods yourself, or you can use Fulfillment by Amazon (FBA). 

If you plan to choose the shipping option through Amazon, you get your goods delivered directly to the fulfillment centers. You don’t have to worry about shipping, customer service, or the return procedure. You can monitor the stock status for your inventory at what is called Seller Central. This solution allows you to do away with the logistics process altogether, and your only job will be to get your goods to Amazon’s warehouse. 

It’s worth noting that not all goods will be suitable for Amazon to handle – such as those deemed dangerous or seasonal. If you have your own warehouse, or want to ship goods yourself, you don’t have to use the option offered by the store. This solution also has its pluses – you have easy access to inventory, and you can also use your own packaging.

If you decide to use the Fulfilment by Amazon program, you have to pay for warehousing and fulfillment in addition to the cost per sale. The advantage of this solution is that there are no recurring fees, you only pay for the services you use within FBA. Warehousing fees are charged monthly and the amount depends on the product category and season. Fulfillment fees are based on product type, dimensions and weight. FBA allows you to take advantage of additional, chargeable services such as labeling and wrapping.

Despite the detailed verification, creating an account on the site and starting to sell is not difficult, and it can really bring you a lot of benefits. However, keep in mind that the competition is high and you may find many sellers offering the same or similar products.

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