Today the emerging titan of e-retailer is Amazon, which dabbles in multiple marketplaces. This global e-commerce market is now a go-to site for online shoppers and wholesalers alike. And you know what independent sellers love to hate this cutting-edge necessity.

This expanding reality is unable to beat, and you probably heard that saying, if you can’t compete with them, join them. Therefore, many sellers yearly join this trusted platform to make money online, which shares 45% of the US e-commerce market.

Hence, to cope with the demands of the merchants, it flaunted its FBA services. What is FBA? It stands for Fulfillment by Amazon, which means that this medium will stockpile your product in Amazon inventory, deliver your orders, and allow the customer base to make your dream come true.

Selling on Amazon FBA

Online sellers are in love with this popular channel. Because it not just picks their orders but also packs and ships them to their customers. Isn’t it amazing that Amazon only charged its suppliers for inventory storage and orders that Amazon fulfills? And not just that, the cost of shipping embodied in yearly fees, with no add-on charges for Amazon prime.

The best part? Amazon is scalable, meaning that you can measure your small start-up sales beforehand by its sales estimation software. That’s the reason you should use Amazon FBA.

Moreover, this advanced and cost-effective channel allows its members to receive your products with fast delivery and free shipping. So, wouldn’t it be great if you could offer this to your customers? I mean, of course, you could!

How to Sell on Amazon

I’d bet dollars to doughnuts that you must be thinking about how to avail this opportunity to sell on Amazon? So, if you are, keep reading this piece for more information.

First things first, you’ve to sign up for the Amazon Seller Account. After this, Amazon gives you two other alternatives from which you’ve to decide one. First, ‘Sell as a Professional’ in which amazon costs you $39.99 monthly, and second, ‘Sell as an Individual’ where Amazon charges you $0.99 for each sale you make. At this point, I’ll advise that if you’re a small start-up, then go for an individual one.

Thereupon, you’ll need to give information and enter a debit card of a company like Mastercard or Visa for international charges. Amazon will contact your local bank if you’re outside of the US. Noted: your local bank must support ACH (Automated Clearing House) for wire transfers.

Further, your local phone number and e-address are mandatory for the Seller Account. With this, you’d need a US Employer Identification Number (EIN) if you run a Limited liability company. And if not, then the social security number (SSN) is for sole ownership. Fixing this, let’s move forward with how Amazon FBA works.

What is the Cost of Selling on Amazon FBA?

As discussed above, its monthly plan for both individuals and professional sellers, I think that Amazon FBA is an economical option for all the sellers out there.

Thus, if you’re planning to sell 41 items or more monthly, then avoid paying a $1.00 per item fee and join a professional seller account. But if you’re going to sell less, then you should go with an individual seller account.

In addition to this, Amazon Referral Fee is there, which fluctuates based on the nature of items sold. For instance, if you’re vending software & computer/Video Games, Amazon will take 15%. If you’re selling Clothing & Accessories (including activewear), they’ll receive a 17% referral fee. Noted: referral fees will continuously add up on your account.

Amazon is indeed a venue that fulfills many merchant dreams and also gives leverage to their products. But I must say that apart from this, you need to sync your Amazon listings and sell on your website.

How Does Amazon FBA Work?

Don’t rack your brains, wondering how this immense process of Amazon FBA works? Why? As I’m here to tell you about this dazzling masterpiece in which you as a merchant only focus on generating sales and don’t have to worry about logistics and all. Let’s dive in to illustrate this win-win!

As a seller, find the best product for selling and do product listing like titles, descriptions, prices, imageries, etc. Then your listed product is prepared and shipped to an Amazon FBA warehouse for further fulfillment.

Onwards, a verification process occurs by Amazon. That ensures the delivery of your items to activate your listing. And once that is activated, your ‘seller’ name is noticeable on your product pages. From there, you’re ready to sell your items.

Your products are stockpiled in Amazon’s warehouse till a shopper orders them. But when Amazon receives the order, they manage the fulfillment and ship within two days. Usually, Amazon FBA will pay you every two weeks (14 days right after you start). Now let’s dig deep over the selection of products for selling.

How to Choose Products to Sell on Amazon

The hardest part about selling on Amazon, guess what? Find the right product to sell. If you opt for something too niche, then you’re at risk as nobody hears of it. And if you go for something popular then be ready for the competition.

Therefore, what to do when your profitability depends upon the product’s category you pick to sell. For instance, if you’re vending meek stuff like kitchen utensils or paper products, it’s hard for your brand to be distinct. For this, you’ve to adept Amazon SEO to improvise to your listings and get a higher rank in Google searches.

Hence, you can go for private-label products. These are the products created by a third party, and it only requires your branding. Or narrow down those products which are in the goldilocks price range like between 20-50$. Plus, you can also go for the product which you’re familiar with, or it has popular keywords.

How Much Money Do You Need to Sell on Amazon?

That is up to you as it depends on a lot of aspects. You could start right away with $500 in inventory if you’re out of cash or don’t want to take a risk. But, if you’re willing for thin ice, then start with $3000-3500 and start this business. First, start with Individual Seller Account and then upgrade it with the Professional one. Below is the list of the money you’ll spend.

1. The cost of your Amazon account

I flagged up prior that Amazon FBA will give you two alternate options for a seller account. You’ve to choose one of both. One is a professional reseller account, and the second is an individual seller account. The Professional reseller account goes for $39.99 monthly, and the Individual Seller account will give $0.99 per sale.

2. Size of your Inventory

From inventory, I mean the stuff you will start selling. I’ve mentioned above that carefully choose the best product for selling. Otherwise, this inventory becomes a breaking adventure for you. For the new start-ups, $150-150 is pretty cool, as you have enough stock in the stockpile, and you didn’t lose your momentum. Plus, use the Amazon FBA calculator to find the potential of your products.

3. Product photography

In this digital era, don’t forget the power of HQ photos of your products on Amazon. Your customers want to see that product’s pictures and feel as they’re in a store. Therefore, it is worth investing in HQ photography.

4. The cost of UPC Codes

As a seller on Amazon, you need to secure a standard barcode. This Universal Product Code is elementary for Fulfillment Network Stock Keeping Unit (FNSKU) _ Amazon’s proprietary barcode.

For this, you have to have a Global Trade Identification Number (GTIN), which has an initial registration fee of $250 with a $50 yearly renewal fee for ten barcodes. You can also buy Universal Product Code from a third party. But this may not be the best thing to do.

5. Company branding, trademark, and logo design

Want to be a private-label Amazon seller, then you’ve to get a recorded emblem. Why? To distinct your brand from the crowd.

For this, you’ve to invest in hiring a logo designer, which gives you a professional outlook just like other brands on Amazon.

What Are the Benefits of Amazon Private Label Products?

As an Amazon seller, you’ve like alternatives like do you want to do sourcing or retailing. One of the most known approaches is to sell Private Label Products. And creating your brand is adventurous, right! I’ll share with you some of the benefits of Amazon Private Label Products. Keep reading!

1. Private label relieves you of the stress of sourcing products

There are Countless vendors that source manifold products in small quantities. With a private label, you can focus on gaining a more substantial number of products.

2. Private label has a better ROI

With Amazon’s private label, you can envisage your sales on the Amazon FBA program. When you have extensive control of your brand image, you’ll dictate prices and relish Return on investment.

3. A Private label allows you to control the price.

You are directly accountable for your Amazon listing on the private label. In arbitrage and wholesale retailing, there is a propensity to undercut the opposition. But in private labels, you’re more in control of the price.

Final Summary

Lastly, my suggestion to all the newbies (in retailing) is if you’re looking to sell, then join hands with Amazon FBA and hook up to a pool of customer-base.

The e-market is raising its significance much more than ever because it just boosts its Q4 2018 profits by 20% yearly and fetched $72.4 billion.

Therefore, do some product research (by yourself or hire Virtual Assistance) and get on track with Amazon FBA. It’s the best way possible to connect to your loyal customers.