How to Sell on Amazon
Selling on Amazon offers eMerchantClub members a significant opportunity to expand their online businesses by reaching a vast customer base. Amazon provides access to millions of potential customers who trust the platform for their shopping needs, making it easier for sellers to gain visibility and credibility. Here is a comprehensive guide for selling on Amazon:
1. Understand Amazon’s Selling Plans
Amazon provides two primary selling plans:
Individual Plan: Ideal for those planning to sell fewer than 40 items per month. There’s no monthly subscription fee; instead, a per-item fee of $0.99 is charged, along with additional selling fees.
Professional Plan: Suited for sellers expecting to sell more than 40 items monthly. This plan has a monthly subscription fee of $39.99, with additional selling fees but no per-item fee.
2. Register as an Amazon Seller
To begin selling:
Create a Seller Account: Visit Amazon Seller Central and follow the registration process. You’ll need your business details, contact information, and bank account details.
Set Up Your Seller Profile: Provide information about your business, including a logo and description, to build trust with potential customers.
3. List Your Products
Product Identification: Each product requires a Global Trade Item Number (GTIN), such as a UPC. If your products don’t have one, you can obtain a UPC from GS1.
Product Details: Ensure each listing includes a clear title, detailed description, high-quality images, and relevant keywords to enhance visibility.
Pricing: Research competitor pricing to set competitive prices. Consider using Amazon’s Automate Pricing Tool to adjust prices automatically based on rules you define.
4. Choose a Fulfillment Method
Fulfillment by Amazon (FBA): With FBA, you send your products to Amazon’s fulfillment centers. Amazon handles storage, packaging, shipping, customer service, and returns. This method also makes your products eligible for Amazon Prime, offering faster shipping to customers.
Fulfillment by Merchant (FBM): You handle storage, packaging, and shipping directly. This method offers more control but requires managing logistics and customer service.
5. Optimize Your Product Listings
High-Quality Images: Use clear, high-resolution images showing the product from multiple angles.
Compelling Titles: Include essential keywords and product details.
Detailed Descriptions: Highlight key features and benefits, using bullet points for readability.
Keywords: Incorporate relevant search terms to improve search visibility.
6. Manage Inventory and Orders
Inventory Management: Regularly monitor stock levels to prevent overselling. Amazon’s Seller Central provides tools to track inventory.
Order Processing: Ensure timely processing of orders to maintain high seller performance metrics.
7. Provide Excellent Customer Service
Communication: Respond promptly to customer inquiries and messages.
Returns and Refunds: Handle returns professionally, adhering to Amazon’s policies to maintain customer satisfaction.
8. Monitor Performance Metrics
Amazon evaluates sellers based on:
Order Defect Rate (ODR): Percentage of orders with negative feedback, A-to-Z Guarantee claims, or chargebacks.
Late Shipment Rate: Percentage of orders shipped after the expected ship date.
Pre-Fulfillment Cancel Rate: Percentage of orders canceled by the seller before shipment.
Maintaining low rates in these metrics is crucial for account health.
9. Utilize Advertising and Promotions
Sponsored Products: Pay-per-click ads that increase product visibility in search results.
Coupons and Deals: Offer discounts to attract customers and boost sales.
10. Expand Your Reach
International Selling: Consider expanding to other Amazon marketplaces to reach a global audience.
Amazon Business: Sell to business customers by enrolling in Amazon Business, offering bulk pricing and other B2B features.
11. Stay Informed and Compliant
Policies and Guidelines: Regularly review Amazon’s Seller Policies to ensure compliance.
Continuous Learning: Utilize resources like Amazon’s Seller University for tutorials and best practices.
By following this guide, eMerchantClub members can effectively leverage Amazon as an additional sales channel, complementing their existing e-commerce websites and expanding their business reach.