How to Make a Business by Selling Products on Amazon?

by alex| in Web to Print on August 23, 2019 8:18 am 1579 /

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Selling products on Amazon is a good opportunity that comes around for all those who want to become entrepreneurs and make good money. Whether a new or a current seller on Amazon, everyone is greatly involved in this eCommerce system and utilizing a huge traffic stream of buyers.

As of the year 2019, analysts estimate that there are an estimated 103 million U.S. Amazon Prime subscribers. Amazon is followed by a huge repeated buyer. And with Amazon saying that almost 50% of all goods sold on their website come from marketplace suppliers like you and me, it’s no wonder suppliers keep focussing on this chance.

The best way to make a business by selling products on Amazon are:

Choose Amazon Seller Account:

1. The first step is to register with the amazon seller account. You will come across two plans: Sell as an individual & Sell as a professional
2. In “Sell as an individual” you will be charged $0.99 per item you sell. However, you will get limited benefits such as adding new products in amazon catalog and avail the amazon customer service, shipping, and orders.
3. In “ Sell like a professional” you will be charged $39.99 per month with additional facilities like selling products in the US, Canada, Mexico or all three, eligible for customizing shipping rates, eligible for top placement on product detail pages, etc.
4. However, if you have not registered with Amazon seller account, you can go to register for a new seller account.

Setup Amazon seller Account:

1. You will need to have your company EIN at hand, otherwise, you can register with the valid social security number. It takes approximately 10 minutes to set up your fresh account.
2. For Amazon tax reporting purposes, Amazon will ask you to complete a short tax interview online.
3. Furthermore, answer the additional seller message and information related questions by taking a short survey as directed by amazon. Finally, you are set to start amazon selling services.

Fulfillment by Amazon (FBA)

1. Now, it’s time to decide whether you handle your customer orders or make use of Amazon fulfillment services, in which starting from the warehousing facilities, customer orders, to shipping products, all managed by Amazon, similar to dropshipping.
2. If you prefer handling customers yourself you can avail the benefits of using low shipping rates using Amazon approved carriers.
3. You can print a prepaid postage receipt from your Amazon account when a customer buys an item from you.
   Else you have the option to choose your carrier and postage label.
4. Basically, in Amazon FBA( Fulfillment by Amazon)service, Amazon warehouses your products, ships and handles all customer service and returns on behalf of you.
5. Moreover, the FBA program can be availed by all, irrespective of individual or professional seller plan.
6. If you decide to prefer Amazon FBA, then you need to shift your stock items to the Amazon warehouse.

Note: You can avail Amazon FBA if you have a Shopify store. You can receive orders from the Shopify store and let amazon fulfill orders on your behalf, and keep you updated regarding all your stock that you can access through Shopify Dashboard.

Benefits of using Amazon FBA:

1. Your products are available directly with amazon, especially for Amazon Prime shipping facility.
2. Save expenses by expelling out the need for maintaining a warehouse, outsourcing employees, packaging and shipping.
3. You can keep track of your products and its stock in the Amazon warehouse using the 24/7 Amazon customer service.
4. Now, you do not need to spend more time on your business selling product on Amazon.
5. You can easily avail Amazon FBA service by simply signing in your seller account and choose Amazon FBA by clicking the “Account Settings” option.

Selecting Product:

1. This is the MOST important step as the product you choose is the foundation of your business.
2. You want to find a product that lots of people are after, and isn’t too competitive. A mistake people make when starting out, is just selecting products they like or that they think will do well.
3. Do not take any risk with a simple guess, instead rely on the data-driven decisions to know the market demand and to choose what to sell.

Prepare your business model:

1. Now, there are different models you can take when selling. The one we recommend is called Private Label.
2. This means you essentially take a generic version of a product, perhaps make a slight improvement or adjustment to it, and then place your own logo onto that product and sell it under your own brand.
3. Other models, such as Wholesaling, means selling someone else’s products.
4. I would prefer the private label model because it gives you more control over the product and listing and higher profit margins. This allows you to build your brand and not someone else’s.

Choosing Price:

1. It will be easier to start selling products between the price range of $15 to $60.
2. Below $15, the profit margins get very slim by the time Amazon takes their cut, and above $60, customers are less likely to make impulse buys on a brand they don’t know.

Seasonal products:

1. Imagine looking at Christmas tree lights during December. The numbers would be huge! If you decided to sell that product, thinking you would get these sales all the time, you’d be in for a bit of shock come January 1st.
2. For instance, the Christmas tree lights gain a big spike in sales around December each year. This is what we’re trying to avoid. Instead, look for products that are more even all year round.
3. So we want to sell products, that sell all year around. The best tool to use for this is Google Trends. Just input a search term, change the view to the past 5 years, and then search.

Conclusion:

Making a business cannot be considered a “child’s play” because you invest for higher returns. If you fail to do so, then huge loss may come on your way. Remember, you must remain alert regarding sales. Verify your sales just checking at least 2 weeks, to 4 Weeks, so that you can keep track of the increase or decrease in sales.