How to start selling on Amazon

Get Your Free Amazon Marketing Estimate – contact us

 

Our Amazon Services:

  • Amazon SEO and Product Optimization Services
  • Amazon SEO Pricing
  • Amazon Advertising Services
  • Amazon Store Management Services
  • Amazon Review Management
  • Amazon Consulting Services
  • Amazon Brand Registry Consulting Services

 


How to sell on Amazon?

 

Amazon.  American e-commerce company established 1995 and founded in 1994 by Jeff Bezos. Currently, it is one of the largest online stores in the world, operating globally, from the USA to India and Europe. Amazon has its own logistics centres and mediates the sale of products from virtually every existing industry. Services available on Amazon can be divided into Amazon FBM (Fulfilled by Merchant) and Amazon FBA (Fulfilled by Amazon).

Amazon FBM is a sales platform for companies. It works on the principle that the seller places the product for sale, the customer makes the purchase and the goods are sent then Amazon charges a brokerage fee. In Amazon’s results, the product may appear in Amazon Ads (paid) or in organic results, which, like SEO for Google, are governed by certain rules.

The buyer of the goods has the opportunity to rate and file a complaint. The seller is obliged to ensure shipping and handling complaints and possible returns. The whole thing is supervised by Amazon, which is known for its strict rules regarding the violation of customer service rules. In this case, a warning is sent first, and then the account is blocked until all errors are corrected.

Amazon FBA is a service where Amazon assumes the weight of all sales stages for the seller: logistics, storage, sales and shipping. There is of course a salary fee, but you must focus only on the product itself. The FBA option works really well if we have smaller storage capacities and usually when our goods are not bulky (after all, warehouse charges increase with its size).

If you operate globally, consider selling through auction platforms, but keep in mind the risk of profile and financial dependence on this type of sale.

 

How to start selling on Amazon?

Sales on Amazon are based on simple rules, i.e. anyone who can operate Internet applications should not have a problem with this.

During registration, you can choose between two types of accounts:

  • Basic – free account, you can sell up to 40 items. Costs appear at the time of sale. Depending on the type of product, we must share with Amazon EUR 0.99 or EUR 0.75 for one product sold plus a sales commission, which depends on the product category.
  • Pro, this account is payable 39 EUR, but as part of the fee we can sell any number of products without an additional fee for the product, we have to pay a sales commission.

 

Only companies can sell on Amazon

Amazon cares for transaction security and a high level of customer service, which is why it decided to limit sales to companies only. If you want to sell on Amazon, prepare all your company documents and credit card details.

Before you add products to Amazon, you must have EAN, GTIN, UPC codes for each product. Amazon does not allow sales without codes. After completing all data, Amazon employees verify the accuracy of the data remotely or by phone.

If you have registered an account and  it is active, you can sell it.

 

Pre-sale potential analysis

Amazon sells all products, so at first you may be frightened by the number of categories and competition. When you start adding products, first check trends, categories and estimate your chances of selling.

You can use e.g. Expandica, Ubseller, Market Intelligence or the general tool Google Trends to estimate the most important indicators, such as:

  • Sales amount
  • The popularity of given products on Amazon,
  • Competition status
  • Determination of potential demand and sales volume.

 

Fees and commissions for selling on Amazon

Amazon allows you to scale your business and sales, which is why sales costs are related to turnover and account type. Registration fees (Basic account – 0 EUR, Pro account – 39 EUR per month).

 

Commissions

Amazon charges a commission on the gross amount of each product sold through its platform. The amount of commission depends on the category to which the product belongs and sometimes on the type and value of the goods. For example, in some cases more expensive products have a lower margin than cheaper ones. Usually commissions range from 8 to 15%.

If it turns out that the commission charged is lower than this amount then the minimum sales fee is 30 cents per product. No matter what the value of the goods, the minimum fee you have to pay is 30 cents.

Commissions change from time to time. Amazon adjusts it’s fees to your needs (read: profit maximisation), so if you sell via this platform, check changes in terms and conditions and fees.       Settlements can be made using a credit card, which is the basis for security and conducting all transactions with Amazon.

 

How to exhibit the product on Amazon

As I mentioned earlier, each product must have a product code. Amazon uses codes to organise goods into the right categories. Thanks to this, the website structure is preserved and products are always displayed in the correct categories. By adding a product with an EAN code, it will be automatically linked to the category and products with this code. All you have to do is search for a similar product (Inventory -> Add a Product) and then complete the description, price and shipping conditions.

 

Content of the offer:

Title that is displayed in the product list after searching. Good title for “Brand + model + product name + type + quantity + size + colour”

Bulletpoints are entered under the title, these provide additional information about the goods, which were not included in the title, e.g. due to lack of space.

The description should contain up to 300 words in the language of the country to which the offer is directed. Ensure legibility, good format a concise description, and use keywords related to the product. This is crucial when it comes to displaying your offer. You can choose keywords based on synonyms, and even better, use one of the available tools, e.g. the free Google Ads keyword planner.

Product photos

You can add up to 7 photos to the offer. The first photo that is subject to restrictions in the regulations is important. You can even block your own account if you break the rules. The product should be presented on a white background, without additional elements, content or logo. The main picture can only show what is on offer. You can’t have a photo of a frying pan with the cook holding it. The photo should be from 1000 × 1000 pixels. It can be bigger, but not smaller. The rest of the pictures (6) should maximally show the advantages of the product. You can use this place for photos or for infographics. Close-ups are good because they show the products details.

 

How to send goods sold by Amazon

You have three options for shipping:

Shipping by yourself (this is called: FBM – Fulfilment by Merchant). The goods must be sent within 2 business days (90% of the goods) and in some cases this is difficult to implement.

Shipping via Amazon (FBA – Fulfilment by Amazon (FBA) Amazon supports shipment of goods. You send products to an Amazon warehouse (saving on warehouse space) and you focus on sales.  After receiving the order, Amazon employees pack and ship the goods. Amazon also deals with any complaints made in regards to the FBA.

 

Fees and commissions for selling on Amazon

Amazon allows you to scale your business and sales, which is why sales costs are related to turnover and account type. Registration fees (Basic account – 0 EUR, Pro account – 39 EUR per month).

 

Commissions

Amazon charges a commission on the gross amount of each product sold through its platform. The amount of commission depends on the category to which the product belongs and sometimes on the type and value of the goods. For example, in some cases more expensive products have a lower margin than cheaper ones. Usually commissions range from 8 to 15%.

If it turns out that the commission charged is lower than this amount then the minimum sales fee is 30 cents per product. No matter what the value of the goods, the minimum fee you have to pay is 30 cents.

Commissions change from time to time. Amazon adjusts it’s fees to your needs (read: profit maximisation), so if you sell via this platform, check changes in terms and conditions and fees.       Settlements can be made using a credit card, which is the basis for security and conducting all transactions with Amazon.

 

Product photos

You can add up to 7 photos to the offer. The first photo that is subject to restrictions in the regulations is important. You can even block your own account if you break the rules. The product should be presented on a white background, without additional elements, content or logo. The main picture can only show what is on offer. You can’t have a photo of a frying pan with the cook holding it. The photo should be from 1000 × 1000 pixels. It can be bigger, but not smaller. The rest of the pictures (6) should maximally show the advantages of the product. You can use this place for photos or for infographics. Close-ups are good because they show the products details.

What about FBA fees?

They are higher than with regular sales, but their amount cannot be clearly determined. Everything depends on the quantity and size of the goods, because it affects the occupied warehouse space. Costs also rise in certain periods, e.g. before Christmas.

Shipping by external companies. Many companies imitate Amazon and offer warehouse space as well as shipping and service support. The competitiveness of this offer requires careful analysis depending on the country, products and distance.

 

Penalties for violating the rules of Amazon

Amazon has strict rules and if you want to keep your account you must follow them carefully. Amazon’s rules are as follows:

  • 2 business days for shipping a minimum of 90% of the goods displayed on Amazon.
  • 24 hours to respond to customers (also 90% of inquiries).
  • Main photo must be according to the rules (white background, without additions).
  • Names and brands must be used in accordance with the law and the truth.
  • You must not use the acquired customer data for purposes other than selling the ordered goods.
  • You must not create multiple accounts.
  • You must not sell fake products or illegal products prohibited by law.
  • If your products are used, damaged or defective it must be mentioned in the description.
  • The products must be sold as they are described and must not contain any missing parts.

Amazon has several penalties. The first is that your account will be blocked for 17 days. During this time you must clear up inaccuracies and reach an agreement (with Amazon and the client). The second penalty imposed is a block of 90 days. During these account suspensions, you cannot sell or withdraw money for products sold. Amazon won’t pay you until the dispute is resolved. Amazon follows one rule in resolving disputes: the customer is always right, and the customer in this case is the buyer of the goods. During the penalty you cannot create another account. You must agree or opt out of Amazon.

 

Paid advertisements on Amazon

You can promote products on the platform using Campaign Manager.

  • Sponsored products are paid advertisements that appear at the top of search results and are marked with information about paid advertising. Payment advertisements are billed on a cost-per-click basis, you only pay to enter your offer.
  • Amazon Headline Search (SponsoredBrands) is a brand promotion that displays 3 products at once above the standard search results.
  • Display Ads (Product Display Ads) appear under “Add to Cart” and below the descriptions. This type of advertising is characterised by matching the buyer’s intentions and combining products into sets. If someone bought a diving mask, we can display an ad for complimentary fins using the PDA mechanism.

Display & Video Ads, is a video and display advertisement that is displayed on all pages of the website.