The eCommerce industry has boomed massively since the start of the pandemic in 2020. Even now, when the effects of the lockdown are beginning to wane, e-commerce is still experiencing incredible growth. As a result, more entrepreneurs are moving their businesses online. And as expected, Amazon, the largest online marketplace, is usually the first port of call. Based on statistics, this is a great business move because, so far, 69 percent of Americans have done their shopping online, and 25% of them do so at least once a month. Also, the bulk of these shoppers (59%) purchased apparel, and 47% purchased their first item on Amazon.
The table below shows the countries with the highest eCommerce revenue per shopper. (Source: Optinmonster)
It is evident that selling online is never a bad idea and there’s a market for every seller regardless of the country they’re in. Moreover, you can now sell internationally on Amazon. AMZN has over 16 marketplaces, and these countries are not left out. However, as you can already tell from the chart, selling online in the United States seems to be very lucrative. So, if you decide to sell on AMZN, you should first sell on Amazon USA and then expand to other marketplaces.
Planning to start selling on AMZN? In this post, we’ll tell you everything you need to know to sell in the U.S. marketplace, even if you don’t reside in America.
Let’s get right into it.
Table of Contents
Why Should You Sell on Amazon USA?
Vast Customer Base
The U.S. marketplace is the largest online marketplace in the world. The marketplace boasts over three million monthly visits, placing it far ahead of eBay, the second-largest online retailer. Apart from the monthly traffic, there are a few other numbers that show why selling in the U.S. marketplace is worth it:
- There are over 142 million Prime members in the U.S. marketplace.
- The U.S. marketplace hosts about 350 million product listings, including the over 12 million products sold by AMZN itself.
- 64% of sellers in the U.S. marketplace have generated over $25,000 in profits in the course of running their businesses.
- 70% of sellers in the U.S. marketplace earn more than $1,000 monthly in revenue.
Limited Entry Barriers
You won’t have to face too many obstacles if you decide to sell in the U.S. marketplace. Unlike other marketplaces, there are very limited barriers to entry in the U.S. marketplace, and you can set up your business in no time. Also, 54% of U.S. sellers have their businesses running in less than three months. And about 64% of the sellers hit the profitability mark in their first year.
Plus, the U.S. marketplace typically approves new seller accounts in about a week. So, you won’t have to wait for too long and you can get other important tasks done in that time.
It’s Easier to Sell in the U.S. Marketplace than in the European Marketplace
The unified European Amazon network is the only other AMZN marketplace that comes close to Amazon.com in terms of size. However, sellers must overcome a few hurdles before they can begin selling on the European marketplaces.
For instance, to sell in the European marketplace, sellers must account for VAT. Whereas in the United States, retailers collect sales tax from customers and the tax is levied after the transaction is completed. Sellers in the EU are required to incorporate VAT earlier in the supply chain. This increases the cost of goods supplied, making it more difficult to price products competitively in the EU.
Furthermore, EU sellers cater to a wider audience, not just English speakers. In contrast, those who sell on Amazon USA can list their products in English since their audience comprises majorly of English speakers.
The EU marketplace caters to shoppers in Spain, Germany, France, Italy, the Netherlands, and the United Kingdom. So, the items and listings must be accessible in up to six languages. Of course, you can reach more people if you create your listings in different languages, but the stress of translating can also be a lot.
You Can Leverage Fulfillment by Amazon
The Fulfillment by Amazon service is one of AMZN’s fulfillment options. Under this service, AMZN handles storage, packaging, and shipping on behalf of its sellers. So, sellers who opt for this fulfillment option can focus on other aspects of their business.
The service is available on other marketplaces, but sellers who have decided to sell internationally on Amazon USA will find it very useful. Without FBA, international sellers would have to ship their own goods to their consumers overseas. Or they can locate third-party fulfillment options, which may be costly and time-consuming.
If you’ve stalled on setting up an online business because you’ve been wondering “can Amazon ship internationally?”, now you have your answer.
If you sell on Amazon USA through FBA, you won’t have to worry about international shipping, customer service, or even returns processing. AMZN will handle all these major processes on your behalf.
Which Countries can Sell on Amazon USA?
At the moment, AMZN has about 19 marketplaces and accepts sellers from over 102 countries across the globe. So anyone can start selling globally on Amazon, but first, you must provide proof of residence in your home country, a valid phone number, and a chargeable international bank card. Sellers often ask, “Can you sell on Amazon USA from Australia or Canada?” Well, the answer is yes, you can, and quite easily too. In the next section, we’ll show you how to sell on Amazon USA from anywhere in the world.
How to Start Selling on Amazon USA
Selling in the U.S. marketplace is not so difficult. So even a foreigner outside of USA can sell there. But like every other process on AMZN, there are certain requirements you’ll have to meet. So, to start selling in the marketplace, you must have:
- A valid credit card
- A credit card that is chargeable internationally
- If you can’t create a U.S. bank account, you may need to use Amazon’s Currency Converter. If you do, you can sell on AMZN without creating a U.S. bank account)
- Proof of residence (Utility Bill)
- Proof of Identification (ID, passport, drivers license and often times Credit card or Bank statement)
- Tax information
- Phone number
Afterwards Amazon will send a postcard to the address you provided when signing up to confirm your address. With that you can then enter in the code that is on the post card in seller central to confirm your account.. Depending on where you live it can take anywhere from 1-4 weeks, with covid-19 there could be delays with this process. It is important to enter this code within 30 days of receiving it as they will often send follow up emails stating that the code will expire if not used within that time frame.
Create a Seller Account
If you have all the requirements listed above, you can go ahead to create your seller account. To sell on Amazon USA, visit the U.S website (amazon.com), then fill in all the required information.
Check out our article on how to create an Amazon seller account if you need more help.
In addition to the basic requirements listed above, aspiring sellers must complete an online step-by-step interview to determine whether a W9 (as a US taxpayer) or a W-8BEN (as a non-US taxpayer) is required.
AMZN may take up to 72 hours to review your application. They may also ask for further details sometimes, so make sure you respond to all requests promptly.
Choose A Business Model
After creating an account, the next thing you’ll have to do is to choose a business model to sell with. AMZN offers five different business models, but three of them are more popular and profitable in the U.S. marketplace.
The three most common business models in the U.S. marketplace are as follows:
- Private Label: You can decide to manufacture your own products to sell. To do this, you’ll have to find a profitable product option and then reach out to an overseas manufacturer to make them for you so that they carry your own branding. The private label model is the most popular business model in the U.S. marketplace, and about 67% of U.S. sellers use this model.
- Wholesale: This business model involves buying in large quantities to reselling in small quantities to retailers. Unlike the private label model, which requires a seller to create their own brand, wholesalers sell already existing products.
- Dropshipping: Being a dropshipper is another option you may want to consider if you want to sell on AMZN. This business model is stress-free, and you won’t have to maintain inventory.
There are other business models, but if you want to sell on AMZN without doing much heavy lifting, then these three are the best options for you. Regardless of the business model you choose, you will have to find a profitable niche and product options. When it comes to finding the bestselling products on AMZN, guesswork will not get you the results you want. So, it’s best to invest in software for product research.
If you read to the end, we’ll tell you all about the best software for product research. However, here are a few things to look out for when choosing products if you decide to carry out manual product research.
- Choose products that have high demand and low competition, preferably products that sell at least 200-300 units per month.
- Choose small and lightweight products. This way, you’ll be able to save costs on shipping. Also, try not to choose products that are fragile or can get damaged in transit.
- Make sure the products you list for sale are not patented.
After choosing a product, the next thing you should do is source the products from suppliers. Look out for genuine suppliers to source high-quality products. You can also use ZonBase’s Hot products tool for supplier research. Here’s a faster way to find suppliers for your products.
- Open the ZonBase Hot Products tool and enter basic product information
- Set the filters based on your product preferences. You can filter products based on price, BSR Ranking, reviews, and the number of sales.
- The tool generates an extensive list of the best-selling products in any category in a matter of seconds. Click the ‘find a supplier’ option on each entry to find authentic suppliers.
Create Your Listings
You’ll have to create a product listing if you want to sell on AMZN through FBA. Here are a few things to keep in mind when creating your product listings:
- Use attractive product images: Ensure your product images are clear, attractive, and detailed.
- Use clear titles and descriptions: Your titles and descriptions play a major role in your visibility, so you should include relevant keywords in your titles. Also, make your descriptions detailed, and use bullet points where necessary.
- Add reviews to your listings: Customers want to see proof that others have purchased items from you and found them worth it. So, use reviews to persuade buyers to buy from you.
Choose a Reliable Freight Forwarder or Customs Broker
There are many processes involved in international shipping, especially for online vendors. So, if you want to sell internationally on Amazon without too many hassles, you should enlist the services of a freight forwarding company or customs broker.
With a customs broker on your team, you won’t have to worry about too much paperwork and documentation. They’ll handle all the customs procedures, freight forwarding, and inventory storage for you. A freight forwarder, on the other hand, will ensure your products get to the warehouse safely.
Here are a few of the services that custom brokers can render:
- Examining samples: Your customs broker can inspect your samples for you and tell you whether they are the exact products you requested from your supplier.
- Assurance of high quality: Your customs broker can inspect the quality of your goods in the same way that samples are examined. Before the products reach Amazon’s fulfillment hubs, third-party quality assurance organizations can evaluate and grade them.
- Fulfillment Preparation: Your products must be prepared before AMZN accepts them, and this includes having FNSKUs and other required labeling.
In addition, if your product requires some assembling that your supplier cannot provide, a third-party fulfillment prep center can help.
How Much Does it Cost to Sell on Amazon USA?
Selling on Amazon is a lucrative business venture, but it isn’t free, and it’s important that you understand the costs involved. Here’s a breakdown of the fees you’ll have to pay if you sell on AMZN.
Selling Plan Fees
To sell on AMZN, you’ll have to create an account and choose a selling plan. AMZN offers two selling plans: the individual plan and a professional plan. The individual plan costs $0.99 on every sale and is best for sellers who do not intend to sell up to 40 items monthly. In contrast, the professional plan costs $39.99 monthly and is best suited for sellers who want to sell more than 40 products in a month.
Referral Fees
Referral fees are a fixed percentage of the total sales price and can range from 8% to 45% depending on the product category. AMZN’s fees are calculated based on sales in dollars and the number of products sold in some categories. Electronics accessories, for example, are charged 15% of the total sales price for any component up to $100 and 8% for any portion larger than $100. Amz has a minimum referral charge that applies if the percentage-based payout is greater than the minimum referral fee, albeit this isn’t always the case.
Fulfillment Fees
This applies to FBA sellers and is the cost you’ll have to pay for AMZN’s services. This includes picking, packing, and order fulfillment. Fulfillment fees are calculated based on the size and weight of the item and are charged on a per-item basis. Your FBA fees and shipping costs may differ depending on your location and what kind of tax laws apply there.
“Starting on April 28, 2022, a 5% fuel and inflation surcharge will be applied to FBA fulfillment fees. The surcharge is subject to change.”
Inventory Storage Fees
This fee covers the cost of having your inventory stored in AMZN’s warehouses. The inventory storage fee is charged on a monthly basis and is dependent on the type and size of the item you’re selling. Note that the storage fee from January to September is different from October to December. Also, if your inventory stays in fulfillment centers for more than 365 days, you’ll incur extra costs in the form of long-term inventory storage fees.
There are other Amazon Fees that you may incur, but they are not fixed
Check out the full list of Amazon FBA Fees
Best Amazon Software for Product Research
Finding profitable products for your store is the first step to success on Amazon. But there are so many product categories and product research may get overwhelming if you don’t have the right tools to help you sort through the several options at your fingertips. Thankfully, with Amazon software, you can now automate your product research process.
ZonBase is the best software for Amazon business automation, not just product research. The software not only offers high-tech product research tools, but also offers keyword research, listing optimization, sales estimation, and analytics tools. If you want to sell on Amazon USA, you will find this software useful. You can also use the ZonBase Hot Products tool for supplier research.
The software is quite affordable and can be accessed for free when you sign up for a free trial.
Conclusion
Selling online is always a great idea and if you ever decide to sell online, you should sell on Amazon USA. If you’re located outside of the United States, there may be a few challenges but once you get past them, the rest of the journey will be a breeze.
