How To Sell Things On Amazon

How To Sell Things On Amazon? According to Amazon’s 2019 Small Business Impact Report, third-party merchants generated $160 billion in sales in 2018. Barely 20 years ago, this figure was just $100 million. In 2018, small companies accounted for 58% of Amazon’s total sales, with an average revenue of more than $90,000.

Astonishing figures, to say the least. Amazon has evolved and continues to expand as a favorable marketplace where sellers may create some real income, even if you can’t expect to make $90,000 a year while you’re just learning how to start a business. Side hustlers and full-timers alike can benefit from this.

Amazon is a great place to start if you’re looking for a method to generate money, and we’ve got some ideas for what you can sell.

How to make money on Amazon by selling products

More than 150 million people visit the Amazon marketplace each month, and sellers who join may reach them. You may also outsource the picking, packing, and shipping of your items to Amazon’s fulfillment center, freeing you time to work on other elements of your business. Even customer service and returns will be handled by Amazon’s fulfillment service.

However, you must first make a decision. Individual and professional sellers can both use Amazon’s marketplace. You should be aware of the following.

Amazon individual plan

For people who intend to sell less than 40 goods a month, the individual plan is the ideal option. For every item sold, sellers are paid 99 cents plus a referral fee (depending on the product’s category) and closing costs. It does not include a monthly membership price. It is a compensation paid to Amazon for using its platform to interact with your customers; however, closure costs only apply to the sale of media goods, such as CDs and CD-ROMS..

Individual sellers may list their products in more than 15 categories, including books, apparel, and personal care products, which makes the individual plan a good alternative if you’re just getting started and don’t want to commit to a monthly cost.

Product categories that are available to both amateur and professional sellers

The following categories are available to both professional and individual vendors, according to Amazon:

  • Amazon device accessories
  • Amazon Kindle
  • Baby products (excluding apparel)
  • Beauty
  • Books
  • Camera and Photo
  • Cell Phones
  • Clothing and accessories
  • Electronics (accessories)
  • Health and personal care
  • Home and garden
  • Musical instruments
  • Office products
  • Outdoors
  • Software and computer games
  • Sports
  • Tools and home improvement
  • Toys and games
  • Video games and video game consoles

Amazon professional plan

Professional sellers must pay a monthly membership cost for Amazon’s professional plan, but they do not have to pay a per-item fee for each item sold. The monthly subscription charge is $39.99. Professional sellers are still liable to referral and closing costs under this plan.

Professional sellers have access to the same 15-plus listing categories on Amazon as individual sellers, plus at least ten extra categories that are uniquely available to professional vendors. The professional plan is best suited for individuals who want to sell more than 40 goods each month.

Product categories open only to professional sellers

Only professional sellers are permitted to sell in the following product categories. Some demand additional approval to ensure that you are an honest and trustworthy seller. In other words, Amazon does not want anyone selling counterfeit currency or jewelry.

  • Automotive and powersports (approval required)
  • Business products (B2B)
  • Collectible coins (approval required)
  • Fashion jewelry
  • Fine jewelry (approval required)
  • Fine art (approval required)
  • Grocery and gourmet food (approval required)
  • Industrial and scientific (approval required)
  • Luggage and travel accessories
  • Professional services (approval required)
  • Shoes, handbags, and sunglasses
  • Sports collectibles (approval required)
  • Video, DVD, and Blu-Ray (approval required)
  • Watches (approval required)

Prior to choosing between individual and professional plans,

As a new seller, it is essential that you have a strategy in place before signing up for any plan to sell things on Amazon. Before you join up to sell, make the following decisions:

  • You have a product that is ready to market.
  • You’ve decided on a marketing strategy.
  • You can fulfill the standards for any things that require authorization (certain categories and products may require additional qualifications)
  • All of your items have unique identifiers (a Global Trade Item Number (GTIN), such as a UPC, EAN, or GCID).
  • You have a strategy in place for order fulfillment (ship your own or Fulfillment by Amazon)

So, how do you go about finding items to sell? That’s when things get tricky. Ideally, you want to sell a product that is in great demand yet has little competitors. This is fundamental economics 101, and it applies to everyone who wants to sell something on the internet.

If you want to become serious about your company, there are paid tools that can help you locate successful niches and things to offer on Amazon, such as Jungle Scout. Product research, keyword research, inventory management, and other aspects are common in these programs. They can range from free to $49 per month for a browser extension to more than $120 per month for some of the most expensive services.

How to set up a seller account on Amazon in 5 steps

Whether you decide to start small or go large, the next step in starting to sell on Amazon is to sign up for an Amazon seller’s account. This section will lead you through the process of creating an individual or professional account.

Step 1: Head to services.amazon.com

Go to the Amazon Services home page. If you wish to join up for a professional account, click the orange Start selling button from here.
If you don’t want to commit to the professional plan, go down to the bottom and search for the option to sign up as an individual seller.

Step 2: Complete the seller agreement form

The following step is to finish the account setup procedure. In the first step, you will be asked to provide your legal name. If you’re registering as an individual seller, put your entire legal name here. Enter the business name as well as your legal name if you’re registering as a business. Then, tick the box to agree to the seller’s terms. When you’re finished, click Next.

Step 3: Enter your seller information

A brief description of your company is the next stage. Address, business name, website (if available), and phone number should all be included. When you’re done, click Next.

Step 4: Set up your billing method

Afterwards, you’ll need to fill up your billing and deposit details. Using this method, you may pay for fees, upgrades, and other costs, as well as earn money for the goods you sell. Click Next once you’ve finished inputting the details for your credit card and bank account.

Step 5: Verify your identity

Verify your identification on the following screen. Click Next after selecting the nation in which your firm is situated.

It is then necessary to input your passport or driver’s license details to continue. Submit when you’re finished.

Your driver’s license or passport, together with an extra document, must be uploaded on the next screen. In certain countries and states, an additional document is required to validate the legitimacy of your firm, such as an energy bill or a bank statement. Either a scanned image or an image shot directly from your phone can be uploaded. Then, click the Submit button.

Amazon may take a few days to verify your information after you submit it. If all goes well, you’ll be able to start selling on Amazon.com.

To what extent does selling products on Amazon incur any costs?

Those who want to sell more than 40 products a month (professionals) can choose between a monthly subscription plan and a per-item plan, while those who plan to sell less than 40 goods a month can choose between the two (individual).

You may anticipate to pay anywhere from 99 cents per item sold plus fees to $39.99 per month plus costs, depending on the plan you choose:

  • Individual plan: 99 cents for every item sold
  • $39.99 per month for the Professional plan only.
  • Both programs have referral fees, however the amount varies depending on the type of product.
  • Closing costs: $1.80 per media item sold for both schemes (books, DVDs, etc.)

Is it better to use Amazon’s Fulfillment by Amazon service or to ship my own items?

Fulfillment by Amazon (FBA) or self-managed shipping and handling are two options when it comes to storing and sending your products.

With FBA, your items will be stored at Amazon’s fulfillment centers, where they will be picked up by the company before being shipped to you. It is also in charge of customer care and refunds. Order fulfillment, storage, and any supplementary services you select will be paid in addition to the fees associated with your chosen seller plan. Fees for FBA fulfillment will vary based on the type of product you’re selling (mobile device, clothes, etc.) and the product’s weight and dimensions. In the Amazon seller support area, you may see the entire list of FBA fulfillment fees. Storage fees are the same. These are dependent on how much room your goods take up. The breakdown of FBA storage fees is also available in the support section.

Consider how much stuff you intend to sell when evaluating whether or not FBA is suitable for you. FBA may not be worth it if you intend on selling less than 40 products per month through an individual seller account. FBA, on the other hand, can be a smart choice if you’re looking to expand your business and restock your inventory.

Is selling on Amazon profitable?

It’s entirely up to you how much money you can make selling on Amazon, and how much time and effort you’re willing to put into it. Selling on Amazon as a side business might be a terrific way to make a little more money. You can also choose to work full-time as a professional and sell your wares. For example, a seller specializing in baby products may create a complete brand, develop and source products, then join FBA to store thousands of things in inventory.

More than half of Amazon sellers make at least $1,000 a month, according to the Amazon selling tool Jungle Scout, In contrast, a handful of “super-sellers” generate more than $250,000 a month in sales.

About the author: David Krug is the CEO & President of bankovia. He’s a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he’s not reading about cryptocurrencies, he’s researching the latest personal finance software.