How To Sell On Amazon: Guide For Beginners

If you choose the right products, set competitive prices, and handle your inventory and marketing well, selling on Amazon can be an excellent way to make money. However, extensive study, understanding of the market, and persistent work are frequently necessary for success.

In this article, you’ll learn how to start selling on Amazon (in 5 simple steps), as well as essential tips to improve your chances of success.

How To Start Selling On Amazon

It’s easy to become an Amazon seller these days. Software services and instructional materials abound to assist with business management. It’s wise to be prepared before beginning. The steps are as follows:

• Step 1: Select your business plan for Amazon
• Step 2: Decide what products to list on Amazon
• Step 3: Commence your Amazon sales
• Step 4: Add your products on Amazon for sale
• Step 5: Configure your Amazon fulfillment while making sales

Here are thorough instructions to help you launch an Amazon business.

Step 1: Select Your Business Plan For Amazon

As a leading Amazon SEO company with years of experience in the e-commerce industry, we have outlined the popular sourcing strategies employed by successful sellers to help you find the most profitable business plan for Amazon. Each method will guide you in detail, including the advantages and disadvantages.

i) Private Labeling

Under this arrangement, a producer and retailer collaborate to develop goods sold under the retailer’s name. After that, the merchant offers them for sale to customers under their brand names. If you have an original product idea and are prepared to spend time and money developing your brand, this is the model for you.

Because you set your prices, this company model has the best profit margins of all the others. However, it also has a higher initial cost. Thomasnet and Alibaba are two locations where you can find manufacturers for this model.

ii) Manufacturers And Wholesalers

Purchasing goods in bulk from a manufacturer or distributor is the basis of a wholesale business model. If you buy the goods in large quantities, the retail price of the goods will be lower. After that, you can profitably resell them on Amazon by marking them up. It goes without saying that this strategy has a higher initial cost, but it also offers the possibility of higher returns.

Another option is to purchase the item directly from the producer. If a manufacturer doesn’t meet your criteria, you might try looking for distributors and wholesalers. These companies buy goods from producers with the intention of reselling them to retailers.

iii) Reselling

Buying goods at a discount and reselling them on Amazon for a higher price allows you to profit from the price difference in this strategy, which is also referred to as retail or online arbitrage.
Reselling has a low entrance barrier and little initial investment requirements, making it a viable option for beginning an Amazon business. The time-consuming nature of locating agreements, sometimes narrow profit margins, and the requirement for ongoing product procurement are some of its drawbacks. Two types of resale exist: 

• RETAIL ARBITRAGE – You purchase goods at a discount from physical retailers and resell them on Amazon. Retail arbitrage items are frequently sourced from Walmart, Target, Home Depot, Lowe’s, Marshall’s, and Ross. 
• ONLINE ARBITRAGE – You purchase goods at a discount from websites or online retailers and resell them on Amazon. Online arbitrage sites, including eBay, Overstock, Groupon, Rakuten, Jet, and Craigslist, are frequently used as item suppliers.

iv) Dropshipping

By using drop shipping, retailers can sell goods without having to buy or hold inventory. Following a customer’s purchase, the retailer forwards the order to their supplier, who handles order fulfillment and shipping on their behalf. In other words, the merchant essentially waits to buy any goods until after buyers have purchased them, having the supplier ship the item straight to the buyer.

Of course, dropshipping’s most significant benefit is its zero downtime upfront. It’s a very minimal risk because you don’t buy anything until you’ve actually closed a deal. Additionally, you save time and resources because you don’t have to complete any orders yourself. Dropshipping is really convenient. However, the convenience comes at a higher cost. You will pay extra to dropshipping suppliers because you are just buying individual products.

v) Crafted By Hand

If you enjoy making one-of-a-kind things, consider selling your handicrafts on Amazon Handmade. Because they must be handmade, there is typically less competition in this category than in other Amazon categories.

Step 2: Decide What Profitable Products To List On

Afterward, you will have to choose the types of products you will offer. Making the correct choice at the outset of your Amazon business is crucial, so you should give it careful thought. 

You could sell an infinite number of items, but not all of them would be lucrative. Some may have too much competition, while others may not have large enough margins or sales. Selecting the perfect product may seem like a daunting undertaking with so many variables, but fortunately, programs like AMZScout make the process surprisingly simple.

# Utilise Analytical Software From Amazon.

You may analyze products directly on the Amazon website by using programs like Helium10, Junglescout, and AMZScout. These resources offer searchable databases with filters to assist you in determining the finest goods to sell on Amazon. By selecting categories, expected sales volumes, competition levels, and other pertinent factors, you can focus your search.

# Look Into The Product Opportunity Explorer On Amazon. 

Amazon Product Opportunity Explorer is an effective tool for helping sellers on the Amazon marketplace find new product opportunities and generate ideas for products to sell. It offers data-driven insights into customers’ search habits, patterns in demand, and the current line of products available on Amazon. It enables you to examine what clients are looking for and buying, exposing any gaps in the market or unfulfilled wants.

The tool arranges products into “niches,” which are groups of related search phrases and goods that cater to particular client demands. You can look through or search for niches pertinent to your line of work. The tool offers essential data for every niche, including top search phrases, goods currently on the market, search traffic, pricing information, and statistics on the likelihood of a new product introduction. This information aids in assessing the market and competitors.

If you have a Professional Selling Plan, you can use this function on your Amazon Seller Central account. The tool is updated frequently with the most recent data to deliver precise and up-to-date information.

# Perform A Comparative Evaluation. 

Start by conducting an Amazon product search and noting the top-ranked products that appear. These are your primary rivals. When starting to sell on Amazon, your first step should be to analyze your competition.

Next, you can easily follow and monitor rival ASINs in one location by utilizing tools such as Jungle Scout’s Product Tracker.

Examine rival product listings to find out what works and what doesn’t in terms of titles, descriptions, photos, costs, reviews, and other details. Seek to enhance and set yourself apart from the competition with your listing. To find the top phrases that your competitors are ranking for both organically and in advertisements, use keyword research tools such as Keyword Scout.

With programs like Dealavo, Seller App, or Helium10, you can also monitor rival prices over time.

Examining competitor product reviews can also help you discover client pain points and find solutions to improve any shortcomings or holes in your offering. 

# Begin With Your Interests Or Hobbies

Think about purchasing things that complement your interests or hobbies. This can improve your chances of success and make the selling process more fun. When listing things on Amazon, you can use your own experiences to produce thorough, educational product descriptions. By including tips and frequently asked questions, you can give your target clients a lot of value.

# Examine The Product Specifications

Assess possible items using factors like strong demand, little competition, and large profit margins. The following advice is for you:

• Seek for goods that bring in at least $300 a month or ten sales every day. This suggests that demand is high. 
• Examine sales patterns to find products with steady sales all year round rather than sporadic ups and downs. 
• Look for products that receive 400–4,000 searches a month or less. Keywords that receive over 4,000 searches a month are considered exceptionally high-volume and should be avoided due to their high level of competition.
• Look for products with fewer than 400 reviews, as they are the top sellers and imply less rivalry. 
• Try to find items that cost between $30 and $70. Profitability and affordability are nicely balanced in this area. 
• Your selling price for most things should be three to five times what you paid for them. Aim towards the higher end, about 5x, for less expensive products. Private label products often have gross profit margins between 25 and 75 percent, with 50 to 60 percent being the average. 
• A 22.8% net margin on your first product is an excellent starting point, but volume and gradual product catalog expansion are necessary to build a lucrative Amazon business.

Step 3: Commence Your Amazon Sales

# Total Expense Of Selling On Amazon.Com 

Seller fees are imposed by Amazon in order to list and sell goods. There are precisely two pricing tiers called Individual and Professional, which look like this:

• Individual plan: $0.99 for each sold product plus extra commissions. 
• Professional plan: $39.99 per month plus extra charges for sales.

Additional Costs:

• Commission for category referrals: 8–20% of the total sale amount. 
• Amazon fulfillment costs: Product type, weight, dimensions, and size all play a role in this.

# Open A Seller Account On Amazon

Prepare the following ahead of time in order to register an Amazon Seller Account:

• Information about bank accounts, 
• Chargeable credit cards, 
• Government-issued identification,
• Tax records, 
• Phone numbers and email addresses.

Following that:

Go to Seller Central on Amazon and select Sign up. Go into your Seller account and skip this step if you already have one. 

As instructed by Amazon, complete the necessary fields.

Notes: In order to safeguard its community, Amazon imposes a number of rules and limitations on goods, listings, overselling practices, and other areas. As a result, you should familiarize yourself with Amazon seller policies before beginning to sell there.

# Learn About Seller Central On Amazon

SELLER CENTRAL TOOLS

1. Tools for Product Listings:

• List new items one at a time or all at once by uploading a file.
• Examine and modify current product offerings and listings.
• Discover consumer desires with data-driven insights to spot new product prospects.

2. Cost and Advertising:

• Establish unique automated pricing guidelines.
• Make promos and discounts.
• Get shipping for your FBM purchases.

3. Management of Orders

• Examine and handle orders that you complete (FBM).
• Respond to requests for returns from clients.
• Monitor shipments coming from FBA.

4. Promotion and Sales

• Control the advertising campaigns you run on Amazon.
• Improve the descriptions of your brand and products.

5. Evaluation Criteria

• View data on payments, traffic, sales, refunds, etc.
• Metrics on search phrases, market basket analysis, and other topics for registered brands.
• Keep an eye on the metrics related to the performance of your account.

6. Interaction with Customers

• Examine and react to ratings and reviews for products. 
• Monitor response times and other customer service KPIs.

Step 4: Add Your Products On Amazon For Sale 

Making a product listing and then optimizing it are requirements for becoming an Amazon seller. For the time being, let’s concentrate on how to list things on Amazon. Here is our beginner’s guide to Amazon listing without further ado.

# Get Ready To Make A List

Before listing things on Amazon, you need to gather certain information, which is the same as when you register. A product ID is one of the necessary details. Always keep in mind that any item you sell on Amazon needs a GTIN (Global Trade Item Number). The GTIN for your product may be an ISBN (for books), an EAN, or a UPC.

Kindly be advised that

You won’t need to supply a GTIN if your listings correspond with currently available products on Amazon.
Conversely, you must provide a GTIN when adding a new product to Amazon.

As you study how to sell on Amazon, you should have the following information in addition to a product ID:

• A stock-keeping unit, or SKU. 
• The title of your product. 
• Highlights, variations, and descriptions of the products. 
• Pictures of products. 
• Relevant keywords and item search phrases.

# Start Listing Your Products On Amazon 

To list products on Amazon step by step, follow these steps: 

• Step 1: Go to Amazon Seller Central; 
• Step 2: Look for the Inventory section and click Add a Product.
• Step 3: You can add a new product, list in bulk (available only with the Professional plan), or build a listing that matches an already-existing product using the interface that Amazon will bring you to. 
• Step 4: Select the desired option to put your product for sale on Amazon. 
• Step 5: Now, it’s time to sort your products into categories. To find your product categories, use the search bar or peruse the Amazon list. Be aware that you can consult the categories of your rivals. Additionally, your product may fall into multiple categories.
• Step 6: Enter all of the product’s information, including its title, description, photos, variations, and other pertinent details. We strongly advise using Amazon Enhanced Brand Content to improve your listing in this step. In actuality, improving your listings will probably aid in future Amazon sales growth.

# Product Page On Amazon

Your Amazon goods’ product page allows customers to examine every aspect of your goods and get all the information they require regarding a specific item.

As a result, you should concentrate on accuracy, relevancy, and listing optimization when learning how to sell things on Amazon in order to provide the most possible browsing experience. In light of that, the following information regarding an Amazon product detail page may be helpful: 

• Title: Contains no more than 200 characters, all capitalized words.
• Pictures: 500 x 500 or 1,000 x 1,000 pixels to improve the quality of the listing.
• Variations: Could include distinct hues, smells, or dimensions.
• Bullet Points: Succinct, illustrative statements emphasizing salient characteristics.
• Special promotion (the “Buy Box”): The featured offer is detailed on a page. Consumers can “Buy Now” or add items to their cart.
• Additional offers: The identical product offered by several vendors at varying costs, with varying delivery methods, etc.
• Description: When you sell goods on Amazon, keywords make it easier for customers to find your listing. Let’s say you market a “bamboo cutting board.” If you’ve used keywords like “sustainable cutting boards” or “eco-friendly kitchen accessories” in your ad, a consumer searching for those terms might find your goods.

You’ll need to understand how to set up an Amazon shopfront in addition to the specifics of your goods, as this will improve the visibility of your brand on Amazon.

Step 5: Configure Your Amazon Fulfilment While Making Sales

Setup instructions for fulfillment are a necessary component of any comprehensive guide on selling goods on Amazon. In a nutshell, setting up fulfillment is the process of preparing your products for shipment to customers; all transactions take place via Amazon Seller Central.

You can start selling on Amazon and set up your order fulfillment following these step-by-step instructions:

• Visit Seller Central on Amazon. 
• Go to Settings and select the Shipping Settings option. 
• Establish your areas, policies, and delivery rates. If you sell on Amazon, you may also set international terms and shipping overrides. 
• In the Shipping Settings area, you have the option to print shipping labels one at a time or in bulk. 
• Just click Save once you’ve finished adjusting the shipment settings.

You will have the option to select between FBA (Fulfilment by Amazon) and FBM (Fulfilment by Merchant) when you become an Amazon seller. The most significant difference between FBA and FBM may be found here.

# Fullfilment By Amazon

Third-party merchants can contract with Amazon to handle all aspects of order fulfillment through its fulfillment by Amazon (FBA) service.

You must ship your goods to Amazon’s fulfillment centers in order to make use of this service. After that, Amazon stores your items, selects, packages, ships, and handles customer support for those items. Fees from Amazon FBA must be paid for this service.

This service offers advantages such as access to Amazon’s logistical network and quick shipping choices, such as Prime. Additionally, you can concentrate on other facets of the company, particularly sales and marketing.

The FBA method is straightforward and operates as follows:

• Step 1: Select FBA as your fulfillment option and set up shipping.
• Step 2: To sell a product on Amazon, create a listing.
• Step 3: Prepare your goods and package them in accordance with Amazon’s specifications.
• Step 4: Deliver your products to the Amazon fulfillment center; FBA takes care of the remainder.

For sellers in general, knowing how to launch an Amazon FBA business might be beneficial. If you are looking for instructions on how to sell on Amazon without inventory, this example will be the most pertinent.

# Fulfilment By Merchant

When you choose this fulfillment option, you handle all logistical and fulfillment responsibilities. You have to pay the referral fee on each sale because you will be handling the shipment. There are no Amazon FBA fees. This option allows you to fulfill things that FBA prohibits, such as bulky, heavy, or controlled items, and gives you more control over the shipment and customer experience.

If you’re starting and want to minimize your initial workload when selling on Amazon, we strongly suggest going with FBA. In addition, FBA may be helpful if cost-effectiveness is your goal. This is especially relevant if your online store functions more like a hobby shop or if Amazon determines that the majority of your item sizes are small.

We hope our guide has clarified any questions you had about “How do I sell on Amazon?” As we said, anyone can start selling on Amazon in five steps.