How to Sell on Amazon for Beginners (Easy Steps to Follow)

By Bashir Niazi | February 19, 2022

how to sell on amazon

Did you know, Amazon’s global net sales in 2021 were worth US$146,377.9m? Surprisingly, this massive revenue is projected to reach US$162,327.5m by 2022. Do you think it would be a wrong decision if someone wants to sell on Amazon as a startup?

Amazon is the No. 1 online eCommerce platform that facilitates both buyers and sellers. With a massive increase in overall revenue and a drastic boom in online shopping, you can’t say that this business is not going to run out anytime soon.

There is a vast opportunity for businesses to generate massive revenues through building successful stores on Amazon. But what to do if you don’t have any idea of selling online before? How do get to know about the basics of selling on Amazon? Well, here is the beginner’s guide to learn Amazon business.

Ways to Sell on Amazon (Amazon’s Fulfillment Models)

With a large number of users (3000 users increasing daily) on Amazon, businesses are moving towards selling online. Similarly, businesses need to know how order fulfillment works on Amazon. What are the possible ways to opt for this?
There are two ways to sell on amazon.

While there are two unique ways of selling on Amazon, you can utilize the two choices at the same time. You can actually deliver your more slow-moving bulky or heavy things while lighter, quick items are shipped by Amazon.

Fulfillment by Amazon (FBA)

FBA implies you transport your items to Amazon’s warehouse, and when you sell an item, Amazon picks, packs, and ships it for you. There’s a condition to this despite your month-to-month administration expense, you should pay month-to-month stock storing charges.

With FBA, Amazon additionally deals with customer support services as well. Assuming you don’t have a place to keep your stock and you’re good with giving the reins to Amazon, you may like utilizing FBA. In FBA, items are commonly small and lightweight with fast turnover.

Fulfillment by Merchant (FBM)

It is also called Fulfillment by merchant (FBM), which means you store and ship items yourself. You likewise handle all customer support, so it’s vital to have a framework set up to address requests. Additionally, deal with any issues that arise with your items.

A seller having products that are massive or heavyweight and don’t sell quickly will generally go for FBM. Along these lines, they’re not paying for putting away an item in an Amazon warehouse. The reason behind this is that the more drawn out an item sits on an Amazon stockroom rack, the more it costs, on account of Amazon’s long-term stock-keeping expenses.

fba vs fbm

Easy Steps to Follow and Start Selling on Amazon

Do Market Research

                Before you start selling on Amazon, you’ll need to do proper market research to find a successful product. This is the most crucial and  

Before starting the research, you should go through the restricted category where you’ll find the products that you should better keep yourself away from. Market research doesn’t include finding a specific product but also analyzing the competition, pricing, manufacturing cost, shipment cost, etc.

In all of the research processes, private label is the favorable model to go with. In private label, you select a product that is already existing or newly discovered in the market. Then you have to contact a manufacturer to make that product having a little modification and your private label (logo, brand name) on it.

The modification in the product is the unique selling point for it to sell on Amazon. It is also the part of research where you analyze the audience’s positive and negative reviews. In this way, you gain a distinct value and reputation in the market when you work hard to sell your product.

When you contact the supplier (or the manufacturer) you need to calculate the cost of manufacturing and shipment to the Amazon warehouse or at your place. It should be your priority to calculate the cost per unit to make sure your product is viable.

The viability of your product depends upon several factors including market price, competition, current season, and multiple other variables.

Creating Seller Account on Amazon

      You need to make an Amazon Seller Account and FBA Account to start selling on Amazon. You can’t create an FBA account without creating a Seller Account. Follow the steps below:

  1. Go to Amazon’s website and click the option “Make Money with Us”.
  2. Click the “Selling on Amazon” button.
  3. Select one option between Individual vs. Professional Account. An individual account doesn’t have a subscription fee, but you have to pay $0.99 per sale while a professional seller account has a subscription fee of $39.99 per month.
  4. Add FBA to your account

Product Listing

      Listing your product or products is the next step after you’re done setting up the seller account on Amazon. You can use the listing of already-listed products that are identical to yours or you can create your own listing.

If your product is not already available on Amazon, you’ll have to create your own listing.

Product listing includes the following attributes:

  1. Title
  2. Keywords
  3. SKU code
  4. Price, product’s condition, available quantity, shipment methods
  5. Product Image, name, brand name, category, etc.

A product description is the major part of the product listing to sell on Amazon. Writing an SEO-optimized listing is a must to make your product visible on the first page of the Amazon search. You need to embed properly researched keywords in the description to make sure your product is waving around every next buyer. Keywords for your product can easily be extracted using a lot of tools available.

Attract Your Customers

         As there is a lot of competition on every single product you’ll decide to sell, you need to stand out in the market. To attract customers, you should present your product offering different benefits like fast delivery in case you’re doing FBM. Moreover, special discounts, bulk order price compensation, etc. are the other approaches that could be fruitful for you.

You can also leverage the coupon feature available on Amazon. According to Amazon, coupons can boost sales by 12%. This is because it is eye-catchy that a coupon tag appears on the listing or the search result page.

Running PPC Campaigns

           If you have been searching for topics related to Amazon for a while now then you must have heard of a PPC campaign or simply pay-per-click.

It has a simple mechanism that you run a sponsored or paid campaign of your listing that will appear on the top searches of your keywords. You will have to pay for a single click anyone does, whether he/she makes a purchase or not. This per click cost could range from a couple of pennies to a bundle of dollars.

PPC campaigns are run to accomplish the following goals:

  • Boost Sales
  • Create Brand Awareness
  • Increase Product Ranking

Get Feedbacks

           Always value keeping your reviews and feedback frequent and positive. This can be done by strategizing a proper plan. In order to accomplish that, form a team dealing with customers’ complaints, resolving their issues, managing refunds & returns. Moreover, mailing them right after the delivery asking them to give a review on your Amazon store.

Don’t ever put yourself at risk for the sake of positive reviews. Like paying individuals to review positively or giving them any kind of favor to ask for reviews. As it is against the privacy policies of Amazon. You can end up getting your account banned permanently. Just because you see other sellers doing so doesn’t mean it is fair.

Final Thoughts

        In order to run a successful business on Amazon, the selection of the right product is the key to success. Optimizing the listing of your product is the next goal to start selling on Amazon.

It doesn’t get over here, there are a lot more tips to consider to keep your product in growth phase. As there is much competition in the market, it becomes difficult to rank your product readily. Many factors involve in deciding the future of your product.

If you’re willing to start your business on Amazon, that could be the best decision you ever made. Hire an Amazon expert from Sparko Sol having 5+ years of experience as seller central account manager and all other services related to Amazon business.

Bashir Niazi