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Beginner's Guide for Amazon Sellers: Steps to Succeed on Amazon

Introduction

Welcome to the world of e-commerce, where opportunities abound for aspiring entrepreneurs! If you're considering entering the online retail space, Amazon is an excellent platform to start your journey. With its massive customer base and established infrastructure, it's no wonder that many beginners choose Amazon as their launchpad into the world of online selling.

In this Beginner's Guide for Amazon Sellers, we'll walk you through the essential steps to set up and succeed as a seller on Amazon. Whether you're looking to sell handmade crafts, brand-name electronics, or anything in between, this guide will provide you with the foundational knowledge needed to thrive in the competitive Amazon marketplace.

Step by Step Process of Amazon Seller Registration

Creating Your Amazon Seller Account

The first step in your Amazon selling journey is to create a seller account. Visit the Amazon Seller Central website, where you can sign in with your existing Amazon account or create a new one. Amazon offers two types of seller accounts: Individual and Professional. If you're just starting, the Individual account is suitable. It allows you to sell fewer than 40 items per month without a monthly subscription fee. For larger-scale operations, consider the Professional account.

Choose A Plan

Amazon has two selling plans—Individual and Professional. Professional accounts give you access to far more features than Individual plans but have a $39.99/month fee. Individual accounts cost $0/month but charge 99 cents per item sold. Both programs include additional selling fees beyond this per-product listing charge.

Here are highlights of each Amazon seller plan:

Amazon Professional Seller

Amazon Individual Seller

Monthly Fee

$39.99

$0

Product listing fee (charged when sold)

None

99 cents

Number of product listings/sales

Unlimited

40 per month

Amazon product-related fees

Same

Same

Access to Fulfilment by Amazon

âś“

âś“

Access to Amazon Seller App

âś“

âś“

Sell existing Amazon products

âś“

âś“

Add new products to the Amazon catalogue

âś“

âś“

Listings eligible for the Buy Box*

âś“

N/A

Offer coupons, shipping specials, and gift wrap

âś“

N/A

Can apply to sell in restricted categories

âś“

N/A

Bulk upload products or feeds to Amazon

âś“

N/A

Access to inventory reports

âś“

N/A

Connect with third-party services and product feeds

âś“

N/A



After deciding on a seller plan, you need to register for a seller account. You have the option to use your Amazon customer account, or you can create a new seller account using your business email address.

Have the following ready to provide during the sign-up process:

  • Bank account number and bank routing number
  • Chargeable credit card
  • Government-issued national ID
  • Tax information
  • Phone number

Go to Seller Central to register, then follow the prompts for setting up a seller account.

Once you complete these steps, you’ll have access to your Seller Central Dashboard and can start listing products to sell on Amazon.

Navigating Amazon Seller Central

Once you're inside Seller Central, familiarize yourself with the dashboard. This is your command centre for managing your Amazon business. Here, you can list products, track sales, manage inventory, and more.

Understanding the Amazon Marketplace

The Power of Amazon's Marketplace

Amazon is more than just a website; it's a vast marketplace connecting millions of buyers and sellers worldwide. This global reach offers immense potential for reaching customers you might never have accessed through traditional retail channels. Plus, Amazon handles many aspects of the selling process, from payment processing to customer service.

Diverse Amazon Marketplaces

Amazon operates in various countries, each with its own marketplace (e.g., Amazon.com, Amazon.co.uk, etc.). You can choose to sell in one or more of these markets, depending on your business goals. Expanding into new markets can significantly increase your sales potential.

Product Selection and Niche Research

Choosing the Right Products

Your success on Amazon starts with product selection. Begin by identifying niches or product categories that interest you and align with your expertise. Keep in mind factors like market demand, competition, and seasonality when evaluating product ideas.

Niche Research

Conduct thorough research within your chosen niche. Use Amazon's search and category tools to explore products and their sales rankings. Tools like Amazon's Best Sellers and Google Trends can help you gauge product popularity and market trends. 

Product restrictions

Products sold on Amazon must comply with certain policies. Amazon has a full list of restricted products, but these are not all inclusive. Consider consulting an attorney if you have questions about product regulations.

Additional regulations apply to the following:

  • Certain product categories that require approval prior to listing (like jewellery, music, and watches)
  • Some elements of the Fulfilment by Amazon (FBA) program; if you wish to use FBA, you should also review its product restrictions page
  • Certain products in California
  • Products that claim to be “FDA Cleared” or “FDA Approved” or include the FDA logo in associated images

Amazon Seller Fees

Amazon seller fees include account and product fees. Account fees, or seller plans, come in two subscription levels—$0 and $39.99 per month.

Product or referral fees range from 6% to 45% of the product’s selling price, with the average seller paying 15%. You’ll also need to fulfil and ship your orders, the cost of which varies widely depending on your product and your fulfilment method. 

Sourcing Products

Different Sourcing Methods

Amazon sellers employ various sourcing methods, each with its own advantages and challenges:

  • Private Label: Creating your brand and labelling existing products.
  • Wholesale: Purchasing products in bulk from manufacturers or distributors.
  • Drop shipping: Selling products without holding physical inventory, relying on suppliers to fulfil orders.

Finding Reliable Suppliers

Identifying reputable suppliers is crucial. Attend trade shows, research potential partners, and consider using platforms like Alibaba to connect with manufacturers.

Creating Product Listings

Crafting Effective Listings

Creating compelling product listings is essential to attract buyers. Pay close attention to the following elements:

  • Product Title: Make it descriptive and keyword-rich.
  • Detailed Description: Highlight product features and benefits.
  • High-Quality Images: Include multiple images with clear, well-lit product shots.
  • Pricing and Shipping: Set competitive prices and outline shipping options.

Pricing Strategies

Pricing for Success

Determining the right pricing strategy is crucial for your Amazon business. Consider factors such as your costs, competitors' prices, and Amazon's referral and fulfilment fees when setting prices. Experiment and adjust as needed to remain competitive.

 Fulfilment Options

Choosing Fulfilment Methods

Amazon offers two primary fulfilment options:

  • Fulfilment by Amazon (FBA): Amazon stores, packs, and ships your products.
  • Fulfilment by Merchant (FBM): You handle storage, packing, and shipping.

Select the method that aligns with your business model and budget.

Customer Service and Feedback

Exceptional Customer Service

Providing top-notch customer service is key to building a positive reputation on Amazon. Consider these tips:

  • Respond promptly to customer inquiries and resolve issues courteously.
  • Address negative feedback professionally and work to resolve customer concerns.
  • Encourage satisfied customers to leave positive reviews.

Marketing and Promotion

Marketing Your Products

To boost your product's visibility and sales, explore various marketing strategies:

  • Sponsored Products: Run paid ads to promote your listings.
  • Amazon PPC (Pay-Per-Click) Advertising: Create targeted ad campaigns.
  • Social Media Promotion: Utilize social platforms to promote your Amazon products.
  • Build a brand presence through storytelling and content marketing.

Compliance and Policies

Staying Compliant

To avoid issues with Amazon, familiarize yourself with their policies and guidelines:

  • Study Amazon's Seller Policies.
  • Ensure your product listings meet Amazon's requirements.
  • Stay up-to-date with policy changes and adapt your business practices accordingly.

Conclusion

Congratulations! You've completed the journey through this Beginner's Guide for Amazon Sellers. You now possess the foundational knowledge needed to start and grow a successful Amazon business. Remember, success on Amazon requires ongoing dedication, adaptability, and a commitment to providing excellent products and customer service.

Take action, explore, and keep learning. The world of Amazon selling is dynamic and full of opportunities for those willing to put in the effort. As you embark on your Amazon seller adventure, stay curious, stay informed, and, most importantly, enjoy the journey of building your online business.

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