Earning money on the Internet implies knowing the different tools that the network makes available to us. One of them is Amazon. Considered as the great giant of ecommerce , this platform allows users to sell and buy products of all kinds. However, how can I sell on Amazon effectively? We present you the definitive guide to succeed selling products online.
What is Amazon and how does it work?
Amazon is a collaborative platform that includes small businesses as a complement to their own products. In other words, Amazon has its own warehouse full of strategic items that allows the integration of local stores that lack a developed online channel. We are facing the best online product sales platform worldwide.
Amazon is a US company that was created in 1994 by Jeff Bezos. Its name comes from the breadth and exoticism of the Amazon River. A wide and different place where you can locate electronic commerce. This company began its journey as a digital bookstore, thanks to its access to Ingram’s wholesale books. Amazon did not expect to make any profit during the first five years of its creation. However, the company managed to survive the dot-com bubble and become a key player in Internet sales. Its main motto is “and you´re done”that in its translation into Spanish it would become something like “and you’re ready”. Today, Amazon Corporation also owns The Washington Post, Alexa Internet, Internet Movie Database (IMDb), Shopbop, Kongregate, a9.com, Zappos.com, and DPreview.com.
In Spain, its logistics center is located in San Fernando de Henares (Madrid). A warehouse with an area equal to 7 soccer fields where Amazon keeps all its products. Currently, Amazon.es has 48 million products for sale in an endless classification of categories: electronics, DIY, kitchen, toys, sports, shoes …
Behind every click on Amazon hides a city in which the buildings are huge towers full of boxes with products ready to be shipped. Within this perfectly organized chaos lies Amazon’s success.
Interesting facts about Amazon
- Amazon outperforms Google when it comes to searching for online purchases.
- More than 50% of mobile traffic is absorbed by Amazon.
- 9 out of 10 users search this platform for products they have already found in another online store or seller.
- In Spain Amazon has a clientele of more than 9 million people.
Advantages of selling on Amazon
By using the Amazon platform to sell online, you are accessing the best online product sales portal worldwide. This is a clear advantage that cannot go unnoticed. That is, if you have an online store, but you have not been able to invest in its own development, you have the possibility of becoming a seller through Amazon. As long as the logistics and delivery of products are always at your expense.
However, the marketing actions, the technological administration, the security within the platform, as well as the monitoring of the movements of the visitors are carried out by Amazon. Without a doubt, various commercial actions that play in your favor.
On the other hand, the advantages of selling on Amazon are:
- Have a showcase where millions of customers look out daily. Every day, this marketplace increases its number of users interested in buying products online. Therefore, your client portfolio will be higher than what you already had before. The visibility of your products will be multiplied.
- Amazon prestige will flood your items. Even if you have not sold before and nobody knows you, you can enjoy the advantage of being under the influence of Amazon. Of course. Try to fulfill what you promise because your reputation will be valued by users.
- All the work of Amazon in terms of promotion, retargeting , etc. It can improve your position in Google, also making you take advantage of all its organic traffic.
- You can sell on the five European platforms that Amazon has (Spain, United Kingdom, France, Germany and Italy). You can start the internationalization of your own brand.
- If yours is not logistics or product shipping, you can take advantage of Amazon’s experience and have its transport services, always at an added cost.
- People who browse Amazon have a high purchase intention. This means that your products will be shown to those people who are really interested in them. Thanks to Amazon you will be targeting consumers who are in an advanced phase of the purchase cycle. Therefore, you will be much more likely to increase your sales.
- You don’t need to have an online store. To sell on Amazon, a previously created e-commerce is not required . Using Amazon is quite simple and does not involve extensive computer skills.
Disadvantages of selling on Amazon
Not everything is 100% perfect. If you decide to sell on Amazon you will find some negative points with which you will have to deal with, for example:
- A buyer’s payment for your products is received directly by Amazon acting as an intermediary. In order to withdraw it you will have to select a bank account from which you can recover your money. In the event that a customer is not satisfied this payment could be delayed for several weeks and even canceled.
- You will earn less than if you sold the products yourself. Selling on Amazon costs money. Which means that you will have to pay a fee to have your space on this online sales platform. This implies that from your usual profit margin you must subtract the expense for having your products on Amazon. The good thing about all this is that by having more clients than in your online store you will be able to balance expenses.
- Within Amazon there is also competition. Being a giant of ecommerce also implies having too many people selling the same as you. Certain sectors have great competition, so sometimes you will have to lower prices and even compete with Amazon itself. This is because this marketplace prioritizes its list of products over yours.
How to register on Amazon
If you are determined and want to sell on Amazon, the first thing you have to do is create an account as a seller. This can be individual or professional:
- Individual seller: for people who are going to sell less than 40 products per month. In this case, you will only pay Amazon for each sale that you get a 15% referral fee and a closing sale fee. If you want to start selling on Amazon progressively this is the best option without a doubt.
- Professional seller: This account is already for people whose sales exceed 40 items per month. The reference rate that you will have to pay this time will be only 4%. With this option, you can also sell in all Amazon categories, create new products that are not on their own lists, access specific reports about your orders, upload your inventory, and your products can be purchased with just one click. As you can see this account is much more professional than the previous one.
In either case you will need to open an account. Choose the one that suits you best to sell on Amazon and follow these guidelines:
- Select how many of its 5 platforms you want to sell or if you only want to register on Amazon.com
- Enter https://services.amazon.com and click on the “Register Now” button.
- Read carefully all the legal terms, as well as the conditions of the contract.
- Fill in all the fields requested and save your password to be able to enter.
The truth is that creating an account to sell on Amazon will only take a few minutes. It is a really simple step that will not take much effort.
Sales models within Amazon
Another important point that you should know before starting to sell on Amazon are the different sales models that are applied within the platform:
- WHITE BRAND MODEL: This is the technique most used by those who start selling on Amazon for the first time. It consists of buying products from a fairly affordable supplier (usually Chinese) and uploading them to Amazon for sale. As you can see, in this case, there is no defined brand behind the products. For this reason, this sales method is known as a private label model.
- MANUFACTURER’S MODEL: You are the direct manufacturer of the items that you are going to sell on Amazon. In this case, the platform allows you to create your own online store.
- WHOLESALE OR DISTRIBUTOR MODEL: you are the official distributor of a specific brand with which you can access the online sale of their products. On this occasion, you can also create your own online store within Amazon.
- DROPSHIPPING MODEL : one of the most used by those with little experience in selling products online. Your investment is very low and your risks too. It consists of the online sale of items that do not have a certain stock. What does this mean? That you will be selling the products that someone else ( dropshipper ) would be providing you. Your main role would not be that of a seller, but rather that of a wholesaler.
How much does it cost to sell on Amazon
As we have previously indicated, you have two types of account to sell on Amazon at their own rates.
- Individual seller account: You do not pay a monthly fee, since only the 15% fee is applied when a sale is executed. In addition, a closing fee of € 0.99 is also included. Its disadvantages are that you will not be able to add new products to the Amazon catalog, or sell in all its categories, as well as enjoy other advantages such as the 1-click purchase function or Buy Box .
- Professional seller account: it has a monthly cost of € 39 per month, but the closing fee is not applied. Its advantages are that, unlike the individual account, the user has the privileges of adding products to the Amazon catalog, selling items in all the categories of the platform and having the purchase button in 1 single click or Buy Box.
You may be wondering how you can get this purchase option through 1 single click or Buy Box. Amazon uses its own algorithm to help you determine which vendors have the best customer service and prices. Therefore, you must strive to be worthy of this direct purchase button. The key is to work the variables that you can control according to what Amazon expects of you as a seller. You must be on top of performance at all times and monitor the quality of your account. There is performance data that can show you where to work. For example, you will need a demonstrable track record on Amazon in 3-6 months.
Dedicate time and resources to your most important defects and you can access the Buy Box. But remember, you will only have an option to the sale button in 1 single click if you have a Pro seller account. In short, competitive prices and good valuation of your customers will be the key.
What are the best-selling products on Amazon?
In order to get an idea of what selling on Amazon is like, it is important that you have a reference about the items that are sold the most in this marketplace . If your products are related to the categories most demanded by users, then you can do a price study to gain a competitive advantage. Within Amazon you can find a section with the “best sellers”. There you can discover the products that are selling the most by category.
This is the list of the best-selling categories on Amazon:
- Mobile technology.
- Table games.
- Children’s products.
As you can see within Amazon there is also competition. You will not be alone in the sale of your products, so you will need good online marketing, as well as very competitive prices. If you want to know if your items have a niche, we recommend that you use JungleScout . A Chrome extension that will give you all the information about potential Amazon products.
Thanks to JungleScout you can find out:
- Product name.
- Ranking .
- Sales estimate.
- Earnings Estimate.
- Number of Reviews .
- Average Rating .
Through all this information you can make decisions about your own products based on real data. On the other hand, you will be able to discover new market niches and, therefore, new business opportunities that will allow you to succeed on Amazon.
Tips to increase your sales on Amazon
Now that you know everything you have to do to sell on Amazon, you need a series of recommendations that will increase your final sales within the platform. Take note:
- Rank your products by keywords: Find the different ways that users could search for your product. Analyze the most relevant keywords and use them to increase your sales. Amazon’s own search engine will help you find out certain suggestions for your products. Once you have the list of main keywords, you will know what products to start selling, how to call them, as well as the keywords to include in the Amazon product sheets.
- Optimize the profile of your products with good SEO : the title is the most important part to correctly position your products. The keywords will always be included in it. According to Amazon, a good title must contain: The brand and product line, its differentiating characteristic, the material from which it is made, the type of product, the color, its size and the number of units that come in the package. On the other hand, don’t forget to include the attributes. That is, enumerations with the characteristics that make your article different from the rest. It is important that the keywords are not forced in the text and that you always find the balance between positioning and information. Remember this when you also describe your product. Finally, we have theAmazon meta keywords .
- Share the URL of your products: this is a good technique to improve your CTR or clicks that are obtained on a link regarding its number of impressions. Share the URL of your products on your website and social networks. In this way, Amazon will interpret a greater number of clicks from its list of results and will improve our positioning within the platform.
- Get ratings and reviews: For those who start selling on Amazon this is one of the most difficult goals to achieve and one of the most important. To get them you can offer discounts in exchange for opinions or ask for reviews from your buyers through Amazon and in the orders section (in the “request for evaluation” field).
In short, Amazon is a fairly affordable marketplace for all kinds of sellers. Companies, entrepreneurs, small businesses … All of them have their place on this platform. As you have seen, selling on Amazon has its advantages and also its disadvantages. In order not to take too many risks, it is important that:
- Select products with little competition, studying the market to which your products belong.
- Take a good look at the money and time costs of selling on Amazon. If your business is going to depend directly on this marketplace and your profit margin is going to be low, you better think about it.
- Take a good look at the logistics system you are going to use.
- Study carefully whether your Amazon instead of an ally could become your competitor. In the event that your product sells a lot, the platform could include it in its list with a lower price. Worth?
Not all success stories on Amazon can be applied to all sellers. For this reason, study your business well before launching to sell.