How to Become a Profitable Amazon Seller – You don’t have to figure everything out on your own as an internet entrepreneur starting out today, which is one of the major advantages you have. There are numerous tools and resources available to assist in the process, including community forums where you can ask questions, get advice, and hear experiences, as well as examples of successful online enterprises to follow.
Also, instead of creating your own website, online store, or eCommerce site, you can use one of several existing and established online platforms as a selling marketplace to make your business start-up quick and straightforward. In reality, these third-party services may serve as the foundation for your business in the long run.
Amazon is the indisputable most powerful online selling platform today, accounting for over 39% of all eCommerce retail sales in 2020, totaling over $260 billion, and continuing to rise in 2021. Analysts expect that Amazon’s entire revenue will treble by 2026.
This former bookstore has evolved into a major internet retailer, selling everything from toilet paper to tennis shoes to high-end electronics.
Amazon has expanded into a variety of areas in addition to retail. Through Amazon Prime, it offers its own entertainment streaming service, which includes syndicated shows as well as its own original movies and television shows. It sells kindle tablets and related e-books or subscriptions in collaboration with IT businesses. It now has physical retail locations as well.
Such rapid expansion indicates a strong and innovative organization. While this is undoubtedly beneficial, it is not the reason why you, as a lone Internet entrepreneur, should be interested in Amazon.
The Opportunity for Amazon Third-Party Sellers
One of the more subtle aspects of Amazon’s business strategy is that it lets anyone to sell things on its platform, allowing you to benefit from the brand’s enormous reach and impact. Since 2006, they’ve been offering this “third party selling” possibility,
You’ll be in excellent company if you take this path. Third-party sales reached a tipping point in the first quarter of 2021, with third-party vendors accounting for nearly 55 percent of Amazon sales. Amazon stated in its 2020 Small Business Impact report that it shipped over 3.4 billion third-party items in only one year, from June 2019 to May 2020—during a pandemic, no less.
Third-party sales account for billions of dollars in sales each year, so it’s a rich possibility. As an Amazon Seller, you might grab a piece of that pie and earn a five- or six-figure income.
It’s also simple. You can manage an internet business without having your own website by using Amazon’s “Seller Central” dashboard and letting Amazon handle all of the “grunt work.” 7 (Having a website, a blog, or an active social media presence is fine; just direct potential consumers to your Amazon page.)
The Advantages of Selling on Amazon
The following are some of the major benefits of selling on Amazon:
Amazon.com received over 2 billion visits per month in 2020, with some months receiving even more.
- Of course, not every visitor will be interested in your goods, but you’ll be in a good spot for those who are looking for things in your sector and are ready to buy. As previously stated, this might be an excellent strategy to reach out to new and first-time clients.
- Storefronts that are already built: You won’t have to bother about putting up an online shopping website if you use Amazon’s seller platform. For optimal functionality and speedy presentation, simply fit your products into current layouts.
- Shipping and fulfillment: Rather than purchasing postal supplies and developing shipping methods from the ground up, you may use Amazon’s infrastructure to manage orders, deliveries, and so on.
- Customer loyalty: One of the most difficult challenges for any new internet business is convincing prospects to trust them enough to make a purchase. When you work under the Amazon brand, you already have a level of trust built-in.
How to Start Selling on Amazon
It’s time to take care of the formalities once you’ve decided to sell your products on Amazon. You’ll need to create a seller profile, add your products, and market yourself to potential buyers. Amazon provides tutorials to help you through each stage, but here’s what you can expect:
- Choose a plan and pay for it either on a per-sale basis or via a subscription approach with the Professional plan.
- Decide whether you want to market your own brand or resale others.
- Create a seller account to identify your company and speed payment procedures.
- Add your products to the site, along with thorough descriptions and any technical specs that may be required.
- Set pricing and use one of Amazon’s many marketing add-ons to entice customers.
Fulfillment by Amazon
Becoming an Amazon FBA Seller is the most convenient way to sell on this platform.
This indicates that all of your orders will be fulfilled by Amazon. To put it another way, Amazon is in charge of shipping, delivery, and, if necessary, returns, refunds, and exchanges. 9 You also don’t need to retain or manage inventories. Simply ship your things (which you purchased in bulk) to one of Amazon’s many warehouses across the country. When someone puts an order, the warehouses function as a middleman, receiving the order and shipping it out on your behalf.
It’s a practical business plan that lets you concentrate on the marketing and boosting your take-home pay.
How to Be Profitable as an Amazon Seller
Keep in mind that, while Amazon makes selling simple, you’ll still need to put in the effort to get your things to sell. There are a few things to keep in mind if you want to make money as an Amazon seller.
Be a Proactive Marketer
To begin with, you can’t simply list your products on Amazon and hope that enough people will find them. In contrast to a typical brick-and-mortar business, the cliche “build it and they will come” does not always apply. You should promote your company on social media, through your blog, by email to your network, or any other technique that is appropriate for your product.
Chatbots and surveys are examples of tools and apps that may be used to improve user engagement with your product. You may build a separate social media account for your product and use contests or promotions to gain fans. Add stunning photographs to your product tags, as well as links back to your Amazon Seller page.
Pick the Right Niche
When it comes to having an Amazon business, you must sell things that customers are interested in. It’s critical to stay up to date on industry developments and represent them in your company’s online presence.
If you already have a product or a full-fledged company, you’ve probably spent some time honing its value and getting to know your target market. If your products fit into one of Amazon’s most popular categories, you’ll have an easier time finding the correct audience. If your product is obscure, though, tying it to a more popular category may help you increase awareness (and revenue).
Focus on products in areas that are always strong, such as weight reduction, natural health, self-development, yoga, consumer electronics, baby things, and others, for long-term financial success. Checking Amazon’s bestsellers is a fantastic technique to determine if a market is successful. Keep in mind that staying in a large mainstream market with high demand for years to come is a good choice.
Be Competitive and Know Your Competition
It’s usually a good idea to look at what others are doing in your field. Examine how they price their items, what kind of marketing they employ, how they present and describe their products, and how often they introduce new products. Even if your Amazon store is thriving, there’s no assurance that it will remain so. It’s critical to keep up with the market in order to avoid stagnation and remain successful.
Start small with only one Amazon product, and if you’re lucky, it’ll be a one-hit-wonder. Realistically, if you want to make a lot of money, you’ll need to develop your business to sell a variety of products. Study the market to see what’s hot, and then apply what you’ve learned to your firm to create complementary or additional products.
It’s also crucial to capitalize on busy buying seasons. Traditional retailers make the majority of their money over the holiday season, and internet vendors are no different. In fact, online retail has created its own shopping “holidays” (like Cyber Monday, after Black Friday). Make sure you have enough inventory to manage a surge in orders.
There’s a method to pay yourself twice if you want to supplement your internet sales with a side hustle. You can use affiliate links to your own products in your marketing by joining Amazon’s Associate’s program. So when someone buys your goods, you make a profit from the sale as well as a referral commission.
Next Steps to Amazon Seller Success
Selling on Amazon is an excellent method for budding online businesses to get their feet wet in the industry. It simplifies the process of selling on the internet. Allow someone else to handle the tedious task of shipping and inventory management. And enlist the help of a well-known brand.
When you put it all together, you’ve got a recipe for a five- or six-figure annual income.
Frequently Asked Questions
While selling on Amazon may appear to be the answer to your online sales problems, keep in mind the big picture: Amazon, like every other company, wants to profit from the services it provides to third-party vendors. It’s critical to understand the tradeoffs in exchange for access to their platform.
How Much Can You Make Selling on Amazon?
Many things influence your performance as an Amazon third-party seller—product popularity, pricing, competition, marketing efforts, and so on—but roughly half of them make between $1000 and $2500 per month after they’re up and running.
What Are the Top Products Selling on Amazon?
The best-selling products change with the year, season, and trends, but Amazon keeps a running track of the most popular items if you want to see what’s hot right now. Toys and games, electronics and gadgets, novels, and apparel have all remained continuously high in popularity over time.
Are There Fees for Selling on Amazon?
Yes, you will have to pay a charge to be able to sell on Amazon. You’ll qualify for the professional plan if you sell more than 40 products each month, and you’ll pay $39.99 per month plus other costs for things like Amazon workers handling your merchandise. You can choose a more basic plan for $0.99 per sale, plus extra costs.
Of course, when you compare these fees to the old model of owning a brick and mortar firm with rent, utilities, workers, and so on, it’s clear that this is a far more cost-effective option. This is sometimes less expensive than hiring a table at a flea market.