For companies or individuals wishing to start selling online, Amazon represents a sales channel in its own right. The No. 1 e-commerce platform in the world allows them to market their products without having to create their own online store.
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To start selling on Amazon, you don’t need to have advanced marketing skills. On the other hand, it is strongly advised to follow some techniques specific to the marketplace to position yourself as a seller, convert visitors into buyers and develop sales.
How to sell on Amazon in 8 steps?
Create an account on Amazon Seller Central
Amazon Seller Central is the interface developed by Amazon for its sellers. This is a space not visible to buyers, which allows you to manage orders and generate reports on sales made.
To become an Amazon merchant, you must first register with Amazon Seller Central. After logging in with their usual Amazon account, the future seller only has to follow the platform’s instructions, in particular to enter the information relating to their future online store.
Select products to sell on the Amazon marketplace
Amazon has many categories and sub-categories to reference the products of its sellers and facilitate navigation for Internet users. Products belonging to certain categories or sub-categories must be validated by Amazon before being put online.
In addition, it is important to carry out a pre-selection of the products to be marketed on Amazon if the company (or the brand) already has a merchant website. In this case, the smartest strategy is to pick a few of the best performing products in the catalog (higher markup or lower competition on Amazon) to test their success with Amazon shoppers.
Finally, listing products on Amazon can lead to a much greater logistical burden due to the increased number of potential customers. This is why it is better to start with a partial online offer of the company. The transition to an Amazon-only online store can be done gradually.
Choosing an Amazon Selling Plan
Selling plans are the formulas that Amazon offers to its sellers. The Individual Selling Plan may be suitable for beginner sellers, who do not exceed 40 items sold per month. Also called Amazon Business, the “Pro” plan offers more advanced services for sellers wishing to leverage Amazon to develop their business strategy in a sustainable way. Opening an Amazon pro account allows you to sell an almost unlimited number of items per month.
The choice of the type of sales plan depends very directly on the average number of sales per month of the seller since Amazon charges a sales fee of one dollar per item sold with the “Individual sales plan” formula. On the other hand, the professional selling plan costs the seller $40 per month, but removes the selling and management fees operated on each of the sales of a non-professional store.
Put the products online
Once the seller has selected the most suitable formula for his business, he can now put his first products online on Amazon from the “Amazon Seller Central” portal.
Adding new products to an Amazon store is guided by the “Amazon Seller Central” interface. Just follow the steps indicated by the platform. Subsequently, the seller can manage the sale of products already listed on his online space. He therefore keeps his catalog available to activate and deactivate the display of his product sheets.
Optimize product sheets
Once the store’s products are officially on sale on Amazon, there is no question for the seller to relax his efforts. The product sheets require regular updating to correspond to the stock in real time, but also to customer demand. This is why it is important to optimize both the content and the formatting of the product sheets.
Many SEO techniques exist to improve the visibility of an Amazon online store to potential buyers. Amazon also provides its own formatting recommendations.
Promote products on Amazon
To hope to sell its first products on its Amazon store, the company must make sure to attract potential buyers. For this, organic SEO actions are not always enough.
It is advisable to use a campaign to increase the visibility of products among the lists of results offered to Internet users looking for a product. On Amazon, an advertising campaign is managed from a specific interface called “Console”. Designing and setting up an Amazon ad is then very easy.
Sell the first products
If the promotional actions have been effective, the seller should quickly see his first orders arrive. These first sales are an opportunity to ensure that the payment of the profit from the sales as well as the collection of the management fees by Amazon are indeed made on the bank account of the company.
Process orders and manage shipments
Amazon Seller Central notifies sellers by email when an order is placed on their online store. It is then time to ship the product by themselves or by using the FBA (“Fulfilled by Amazon”) service.
Order fulfillment is a very important part of selling products on Amazon. A good shipping process is a guarantee of seriousness that helps strengthen the visibility of an Amazon store.
Is it profitable to sell on Amazon?
Today, competition is so great on Amazon that it is normal for a company to wonder if selling its products there is really profitable. In reality, it is quite possible to build a profitable business using “Amazon Seller Central”, provided you position yourself strategically in relation to other sellers.
Developing an Amazon-specific business strategy starts with selecting the right product. In a company’s overall sales strategy, Amazon must represent one lever of visibility among others. It is then appropriate for the brand to select part of its product catalog to develop its Amazon store as a window on its main website, for example.
As with any sales medium, marketing products on Amazon should be subject to prior market research. This is the sine qua non condition to ensure the potential profitability of the store. The most relevant strategic path is to find a market niche in order to offer a product that is not or little offered for sale by the competition.
Finally, a good optimization of the presentation of the products and, possibly, the use of media promotion campaigns are effective levers to generate visibility and, thus, to sell well on Amazon.
Can an individual sell on Amazon?
For an individual, it is quite possible to sell products using Amazon Seller Central with a Basic selling plan, i.e. free.
Whether publishing a book on Amazon or selling other products there, it’s the basic workings of Amazon Seller Central that come into play for non-professional sellers. Indeed, a sales fee of up to a dollar is taken by Amazon on each sale concluded.
However, to consider a sustainable and profitable business around selling products on Amazon, it is better to opt for a business account on Amazon Seller Central. The Professional Selling Plan not only allows individuals to not pay individual selling fees, but also to benefit from more detailed reports on their sales.
As an individual, it is also possible to use Amazon as a source of regular income through affiliation. At Amazon, the affiliate program is called “Partners Club”. Becoming an Amazon partner consists of displaying advertisements for Amazon products on other web media (a blog, for example) and recovering part of the amount generated by the sale in the form of a commission paid by Amazon.
To go further, download this free guide and discover how to create, promote and grow your e-commerce business.