Amazon is one of the largest online marketplaces with thousands of vendors selling their products. Amazon empowers you to grow beyond the geographical boundaries and international borders.
So, you can sell your products online to any part of the world with the help of Amazon.
This will not only help you sell your products online with great convenience, but you can control your business operation remotely and grow as an international vendor. You can get international brand-recognition for your product with Amazon.
With this guide, you can learn all you need to know about selling on Amazon. In this guide, you will find information about what costs are involved and the best practices that are opted by successful vendors on Amazon. To start with, startup costs are to be considered and managed efficiently to run a profitable operation on Amazon.
Startup costs are the costs you need to initialize any business. These have a great impact on the overall efficiency and profitability of your business. Startup costs need to be given due consideration and there are several factors that these costs directly rely on starting with:
The product sourcing is directly proportional to your profits. It also has a great impact on your overall costs. You need to consider all the options for the best costs to source your products to make your business profitable. Several options to source your products that you are going to sell on Amazon are:
Retail Stores: For small scale operations and business, a Retail Store is a perfect choice to buy your products with convenience. However, you may find the products a bit costly as retail stores have their own profit margins. Retail stores are a good option if you are not looking to buy in large quantities.
Wholesale suppliers: Wholesale suppliers can help you cut the costs for your purchasing by a great bit. If you are getting large quantity orders and want to make it big, Wholesale suppliers are your best choice.
Wholesale suppliers offer bulk purchase discounts if you are buying in large quantities so that you can get more profits if you are buying more.
Private Label Manufacturers: Private Label Manufacturers are those retailers who get the products directly from the manufacturers under their own label. Retail stores buy from Wholesale suppliers and wholesale suppliers from Private Label Manufacturers. So, in order to cut those costs, it is best to buy directly from Private Label Manufacturers if you meet their minimum purchase criteria.
Once you have your purchasing sorted out, you need to calculate the startup costs and what is required in order to sell on Amazon. There are 5 critical points that you need to take care of and spend on in order to start a profitable Amazon store. Those costs include:
a.Buying Initial Inventory ($150): You don’t need to break your bank buying an extensive inventory at the start. This is one of the best parts of selling online. You can start with less to test the waters first. All you need to do is buy a limited stock of each item that you want to sell. This should hardly cost you a hundred and fifty dollars.
b.Opening and Amazon Account ($39.99): Amazon offers two types of memberships that are selling as individual or professional. With an individual account, it charges you $.99 and for a professional account, you will need to pay $39.99 a month for Amazon services and support.
c.Buying UPC Codes ($10): UPC stands for Universal Product Codes, you need to buy UPC for each of your product that you are selling online to make your operation smoother and flawless. UPC helps you greatly in tracking your inventory individually concerning each product and process orders more productively.
e.Investing in Photography (Free-$295): Right marketing is needed to sell any product. If done right, photography can take your product to places. If you are good at photography yourself, you can take pictures with a white background and in an attractive manner to capture the attention of the right audience. If not, you should definitely be investing in some right photography done for your products.
f.Creating a Logo and product branding: A logo that makes your brand and store stand out is definitely a great marketing investment. You should be investing in making the brand image at the very beginning to have brand awareness for your products over the internet.
For those who are new to Amazon and online selling, opening an Amazon account can get a bit confusing. However, there is nothing to be worried about. You can find all the necessary information in the below steps to create an Amazon account in easy steps.
You do not need business registered if you are selling as an individual, your personal tax information would do and you can enter that to start with Amazon.
If you are selling form outside the US, you must have the following:
Once you have completed these steps, your Amazon account is all set-up for you to start selling your products online and have an international presence for your business.
Once you have your account set-up on Amazon, you might find it hard on choosing what to sell on Amazon and what products will actually be profitable for you. As it is the initial stage for you, your first product should be the one that has larger profit margins and that is qualitative enough to get you the right brand awareness you deserve. To find the right product, you need to research and for that, you can follow these simple procedures:
You should narrow your product research criteria based on facts and figures to ensure getting the perfect product that you can sell on Amazon to generate considerable profits. For that, we are right here to help you with our:
A profitable product would be deemed as one, that has low cost and more profit margin. To get find the right product with more profit margins, you need to search amazon for sponsored ads. This sponsored ad means, that these products are making the right amount of profit that is being spent on marketing.
You also need to choose those products who are getting 2-3X the cost when sold.
The products that have a 65-80% profit margin would be perfect for you to choose from.
You should consider the products that are lightweight and easy to ship to avoid any difficulties.
While looking for the products to sell online, you might come across some really catchy products that look like they are going to attract a lot of customer attraction. However, this might not be the case.
To run a profitable business on Amazon, you need to avoid certain products that could affect your profit margins.
You should keep in mind to avoid, the products that are being sold in large retail stores as they are highly unlikely to be ordered online.
You also need to stay away from mechanical products as they demand high industrial quality standards.
Fragile items are a hassle to ship and require high costs, so you should try staying away from these as well.
Amazon has its own categories of products that you can sell online and hence, there are certain categories of products that are restricted to be sold on Amazon.
You should be thoroughly prepared and avoid such products that fall under restricted categories to be sold on Amazon at all costs.
Amazon is one of the largest online marketplaces have millions of transactions each day. Hence, it is not possible to have thorough research on products that are being sold on Amazon each day. Technology comes to the rescue and there are online tools that you can use for Amazon product research and get the right details required for you to conduct a successful Amazon research. These tools help you get accurate numbers and the right products that have positive feedback and generate more revenue for the sellers. The most popular online Amazon product research tools are:
After you have your product research completed and have a clear idea of what products you are going to sell on your Amazon account. You need to find overseas private label suppliers that can brand their products and mark them under your label.
The process is made easier by technology and you can do it staying at home, over the internet with convenience. All you need to do is:
Opening an Alibaba account is not so difficult and you can do it in four easy steps that are:
Step1: Go to Alibaba and click on “Join Free”.
Step2: Enter your email address and verify it through the link sent on your email.
Step3: Fill all your basic information.
Step4: Confirm the information that you have filled to complete the Alibaba account.
Since you are new and don’t want to get yourself into any fraudulent activity. You must consider some useful features by Alibaba to filter on the perfect supplier for your needs. The minimum requirements a perfect supplier must have are:
A perfect supplier must accept Trade assurances, PayPal or Ali Pay as a payment method.
You need to filter Gold suppliers and trusted suppliers only.
Filter out Trade assurances while looking for partners.
These steps will make sure that the supplier you get in search results for your products can be trusted with the business.
Once you have figures out the right supplier for your trades. You need to negotiate the best price you can get with those suppliers depending on your purchase quantities. You can do it in simple steps like:
1.Contact the suppliers you have chosen to start a conversation.
2.Alibaba has some negotiation templates as well that you can use.
3.Set their expectations as to how many regular purchases you are to make and your expected growth rate.
4.Once you agree on a price, make a small order to test the quality of products.
Suppliers on Alibaba also offer sample shipping that you can receive in order to check the quality of products that you are purchasing and going to sell on your Amazon account.
This way, you have the certainty to back your product and sell only what’s best for you and your customers on Amazon account.
So, now you have an Amazon account and you have successfully sourced your products from Alibaba. You are well prepared to take your first step towards selling and set-up an Amazon listing that your buyers will be seeing and ordering from.
The right Amazon listing should be catchy to grab the attention of your buyers. Buyers like the Amazon listing that are short, interesting, have the necessary information on them with good photography. You can set-up an Amazon listing using the following steps:
Step1:Log in your account, go to Amazon Central and select the “Inventory” drop-down menu to click on the “Add a product” button.
Step2:Now, click on “create a new product listing” to start adding a new product from scratch.
Step3:Amazon has hundreds of categories and you will need to choose the right category for your product you are looking to sell.
Step4:Now, a pop up will appear to ask you for the following information regarding your product.
Step5:You will need to buy a separate UPC code for each product if you have not already, and enter it while listing a product. A UPC code can be easily purchased over the internet with hundreds of sellers offering competitive rates.
Step6:Now, toggle to product ID area and enter 12-digit UPC code in the Product ID section.
Step7:Click on the “Save” button to complete listing your product on Amazon.
1.You can buy more UPC codes at once to save some bucks. The more UPC codes you buy, the lesser the price you will get on each.
2.You can also list an item to be sold on Amazon and fulfilled by merchant and later convert it to be fulfilled by Amazon once it is listed.
3.FBA or Fulfillment by Amazon is a life-saver if you are new to the business and do not want to get yourself in the hassle of Shipping, Storage, and Customer service.
Although, you can start selling right away with the listing that you have posted on Amazon. But that way, you will have to lose a lot of perks that Amazon has to offer.
You will be getting yourself in lots of things at once and have to handle storage, shipping, and customer service for all your products.
If you want to avoid all those and get Amazon Prime logo on your listings, with advantages of 2 days free shipping by Amazon, FBA is your best bet.
Reading about all the cool possibilities that you can achieve using FBA, you must be wondering about how you can create an FBA shipping plan.
We got you covered there as well, and have a comprehensive and brief guide on creating an FBA shipping plan through these easy steps:
Step1:You need to click on your Seller Central Dashboard first to click on “edit inventory” in order to locate “Change to Fulfilled by Amazon”.
Step2:Click on “Convert Only” in the top right corner and wait for few minutes so that changes can be enabled. Refresh the page, and once it is changed to fulfilled by Amazon, click on “Print Item Labels”.
Step3:Click on the “Edit” button and toggle to “Send/Replenish Inventory”.
You will be getting a pop-up that will ask how you are going to ship your products to Amazon. To save on shipping costs, you can send all your products in one big case.
If you are sending similar products in once case, you can click on a case-packed product. Or if there are multiple products in one big box, you will need to select individual products.
Step4:Amazon will require you to fill a Hazmat Review Form.
The hazmat review form is a surety from you that your products do not contain any hazardous materials, that might be flammable, pressurized, or corrosive that can cause damage while handling or storing them.
Step5:Once you have filled the Hazmat review form, you need to fill the dimensions of your products that you are sending to an Amazon warehouse. The dimensions don’t need to be accurate and can be approximate as well.
However, if you are still uncertain, you will need to contact your supplier to ask for the exact dimensions if you are having the products shipped directly to Amazon. It will also ask you to select the number of products per case.
After that, it will ask if any type of preparation is required by Amazon before shipping out these products to your customers. Then, it will ask you who will label the product and you will need to select a merchant on it.
Tips:How to know, which Amazon warehouse you need to ship to?
Well, you do not have to worry about that at all. Amazon automatically decides that for you and sends you the address.
You can ship your products directly to the address shared by Amazon or ask your supplier to have your products shipped to that address.
Step6:Now, click work on shipment to select how you are going to have your order shipped to the warehouse and add accurate information.
Now, you need to figure out how you are going to ship your products to the Amazon warehouse. If you are sending small parcels from home, you can choose carriers like UPS, FedEx or DHL.
If you don’t want to get in that hassle, you can simply share the address with your supplier and they will send the products directly to Amazon Warehouse.
Amazon has several prep requirements that you must meet in order to send your packages to the warehouse and have them processed in the right way.
For that purpose, there are several criteria that are found on the Amazon website with easy guidelines to follow to ensure secure and hassle-free processing for each of your orders.
Your product photos must have the potential to catch the eye of customers and make them feel comfortable. If done right, photography can make your sales grow considerably in number and have the right impact on your marketing strategy.
You need to be extra careful with your product inventory and photograph them the right way so you can get more orders on Amazon.
You need to take photos before sending your products to Amazon if you want to handle the photography by yourself. You don’t need much to spend if you are good with a camera and lights and capture captivating photos right from your cellphone.
While taking the photographs, you need to take care of the following:
Amazon product listing can be optimized to convey the right impression for customers online. A listing that is optimized in the right manner has more chances to land you with potential customers.
Optimization of listing enables you to grow brand awareness as well and increase the trust put in you by potential customers.
You can optimize your product listing on Amazon by simply taking care of the following:
By taking care of these pointers, you can ensure to maximize the sales for your Amazon listing and make your operation profitable and productive.
Once you have selected a product, received positive feedback from Amazon and want to pursue selling the product online. You need to work on the branding of your product and creating the right image on Amazon as a trusted seller.
To keep the buyers’ interest and make repeating customers, you need to take care of the following:
FBA is an amazing service offered by Amazon that takes the burden off your hands. You can leave the storage, and delivery to Amazon and they will take care of the rest for you. Leelinesourcing.com is a great source to help you prepare your products for FBA and it can help you in a number of ways including:
Amazon is one of the top-rated online market places in the world. With the great features, it offers for your feasibility and convenience. You can easily step-in the world of Amazon through this informative article and start having online brand recognition.
The internet has provided us with wider earning opportunities that were unavailable before this age. Online businesses are extremely profitable, and have quickly taking over even markets once dominated by the offline world. As more and more opportunities are exposed for earnings in the online world, you do not want to be left behind.
One such massive opportunity is the chance to become a seller on the world’s largest E-commerce websites – Amazon – by importing goods from China.
Want to set up your own Amazon business? Your very first task is deciding what it is you want to sell. This is step is extremely critical to the success of your business. You want to be certain that whatever it is you want to sell is a product that is in demand, one that people will be willing to buy. After all, you do not want to pour all of your savings into a product that will not be sold. Take your time to carry out an in-depth market research to validate your idea before pushing on.
Once you have the ideal product figured out, you need to search out the right supplier. When sourcing a supplier, you want to confirm that this supplier has the product you need and is trust-worthy enough. Always keep in mind that your supplier is key to the success of your business, exerting control over your product – the very foundation of your business. You can hire a sourcing agent to help you seek out adequate suppliers.
Better yet, you could head over to China to search out the market in person; or you could conveniently use Alibaba to find a supplier.
When eventually you have found a supplier you feel confident about, it is vital that you order a sample to test for quality. A single low quality delivery could ruin your business before it even begins. However, suppliers are not averse to sending out high quality samples, and then turning around with low quality deliveries when you place a bulk order. Ensure that you control the quality of the final delivery.
When you are sure of the quality of products you will be receiving, and are satisfied with it, it is time to place your order. At this stage, you have gotten one step closer to getting your products into the USA/UK and putting them up for sale on Amazon.
Your initial thought when considering importing your goods into the US/UK might center around the use of courier service companies like FedEx and UPS. Hold that thought. Your business will be a lot less profitable when using such international courier services for large imports. In this case, freight is a much cheaper option.
Freight involves moving bulk goods internationally using regular international transport systems like air and water. It is much cheaper than courier services, but is also more involving given you have to handle the tasks involved in importation which courier services take care of on your behalf. Sea freight is often cheaper than air freight in this case, but shipments take much longer to arrive – often taking up to 6 weeks from China to the USA/UK.
You can get your goods shipped directly to an Amazon warehouse if you are using Amazon FBA. This makes the entire process much easier and ensures your deliveries are more time efficient.
The first step to selling is having your products listed on the Amazon website using your seller central account. If you’re delivering to FBA, you might be best served doing this before the shipment leaves the factory in China.