How to Sell on Amazon: 2020 Guide + 5 Foolproof Tricks

Did you know that Amazon is the largest marketplace that exists today? Thanks to its customer service, its speed in shipping and the fact that it sells all kinds of products at a very competitive price, many users go directly to Amazon when they search for any product. 

But what you may not know is that approximately half of the products that Amazon sells are not their own, but that they are from third-party companies or entrepreneurs . As can be your case.

Therefore, every day there are more people who want to take the step and register as a seller, in order to increase the sales of their business taking advantage of the visibility that Amazon has.

So if you have an online store and want to increase sales with another channel, read this guide carefully because I will tell you how to sell on Amazon step by step, and also, stay until the end because I will tell you 5 SEO tips and tricks for overtake your competition. Let’s see it!

Advantages of selling on Amazon

If you have never considered selling your products on Amazon before, you may not know the benefits it can bring you. So before I tell you how to sell on Amazon, I want you to know its main advantages.

Multiply the visibility of your products

The Amazon website is one of the most visited in the world, so if you are starting and still very few people know your product, or you simply want to increase the sales of your online store significantly, with Amazon you can reach a large number of potentials customers in a very short time thanks to the great visibility of this marketplace.

Show your products to people interested in buying them

It is evident that your products gain visibility by putting them on sale on Amazon. But best of all, the users who browse this marketplace  have a high purchase intention . Therefore, you target users at an advanced stage of the purchase cycle and are more likely to buy from you than if they were found by other means.

No need to set up your own online store

If you don’t have the knowledge of web development to create online stores, and you don’t have a good budget for someone to build it for you, selling on Amazon can be a good alternative.

You just have to create an account how I will teach you a little later and start uploading your products with their respective photos and characteristics. It is very simple and does not require you to have technical knowledge of any kind.

Internationalization of your brand

Thanks to Amazon being present in many countries, you will be able to make people from other parts of the world buy your products and thus multiply your sales.

You build trust with your potential customers

Amazon is the most recognized online sales platform worldwide. We all go to this platform to buy almost any type of product because we know that it is a marketplace that works like a charm and that if we have any type of problem, or want to request a refund, we can do it without anyone asking why.

Disadvantages of selling on Amazon

Selling on Amazon has many advantages. However, all that glitters is not gold. Therefore, it is important that you know what disadvantages it may have before making the decision to upload your products to this marketiplace.

Receipt of payments through an intermediary

When a customer buys one of the products you have for sale, the payment is actually received by Amazon. Then if everything goes well, you can withdraw the money in the bank account that you have selected.

However, if customers complain about the quality of your products, complain about shipping, or give you bad comments and ratings, payment can be delayed for weeks and even canceled.

You will earn less than if you sold them yourself

As we will see later, selling on Amazon is not free. They put this great marketplace at your disposal so that you can reach many people but in return you will have to pay a fee.

Therefore, you have to subtract from your usual profit margin of each sale, what you lose by having your products on Amazon.

 At Amazon there is also competition

Selling on Amazon is a good opportunity for many brands and entrepreneurs, which is why there are currently thousands of sellers on this marketplace, which translates into great competition in certain sectors . This can make some sellers put the same product that you have at a lower price, or even Amazon, which is also a seller, prioritize their own products in searches before yours.

Fees you must pay if you want to sell on Amazon

Depending on the quantity and type of products you want to sell on Amazon, you will need to create a type of seller profile and qualify for one rate or another

Therefore, before teaching you how to sell on Amazon, it is important that you know all the rates and types of accounts that exist to sell on this marketplace to know which is the most suitable for you.

Fees and commissions for selling on Amazon

Depending on the type of account you choose, you will have to pay some commissions or others. At the moment we are going to see all that exist today and then we will see which would apply to each account.

  • Reference rate : is the percentage that Amazon charges you for each sale and is calculated on the total sale price of the product including shipping costs. Depending on the category to which your product belongs, the percentage can vary from 5% to approximately 45%.
  • Closing fee: it is a closed commission of € 0.99 on each product that is discounted from the benefits. It does not matter what type of product or what cost it has.
  • Item sale fee: is the cost that Amazon charges you for each sale you make through the marketplace. The most common are between € 0.81 and € 1.01 and only apply to books, music, DVDs, software and video games.
  • Fixed monthly subscription fee: it is the fee that Amazon charges monthly for having products for sale in its marketiplace to professional sellers. It has a fixed cost of € 39 per month.

Types of seller accounts

Before registering as a seller, you should know that there are 2 types of accounts : the individual and the professional. Each one has its characteristics and conditions, so we will see each one in detail.

Individual seller account

This account is focused on people who are going to sell less than 40 products per month and who only want to pay Amazon when they make a sale. Thus, if you want to start selling on Amazon little by little to prove that it works, this is the best option.

Professional seller account

These types of accounts are better if you sell online regularly ( more than 40 products per month ) and you want to get some of the advantages that these types of profiles have.

If you opt for this account, unlike individual profiles, you can sell in all Amazon categories, create new products that are not currently on Amazon’s list, access more detailed reports on your orders, upload your inventory automatically And, most importantly, you will have the possibility to get your products to be purchased with a click .

How to start selling on Amazon?

Now that you know the rates, it’s time to get down to business and start selling on Amazon. The process to do it is very simple.

Decide what you are going to sell on Amazon

Whether you already have a store, or if you want to start a small business and start selling on Amazon to earn extra money, it is important that before registering you do a little search and really see the products that may be interesting.

Are the products you want to sell on Amazon in sufficient demand?

The easiest way to see if a product sells well on Amazon is to go to the category of that type of product and see the list of best sellers . If the product you want to sell is in the first positions, it will be a good indicator. However, in this way we will not know the exact demand that said product has and it will take a long time to make our study.

To solve this problem, we can use tools such as Jungle Scout, which has an extension for Google Chrome that lets you know how many sales each product has.

For example, imagine that you have an online appliance store and want to sell your vacuum robots. However, you have so many different models that you don’t want to start selling them all from scratch. You only want to sell those that have the most demand.

Just search for “robot vacuum cleaner” and activate the extension to see all the information as you can see below:

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