Selling on Amazon can be quite daunting at first. There is so much to learn and figure out, and it can be intimidating if you don’t have a lot of experience. But if you really want to succeed as an online entrepreneur, adapting to this marketplace is something you’ve got to learn. With over 300 million registered subscribers, Amazon is without a doubt one of the biggest online marketplaces in the world. Sellers who have an established presence on this platform will undoubtedly put themselves in a position to succeed.
And if you want to start selling and start growing as a global eCommerce leader, then you are on the right page. Read this comprehensive guide to find out how you can start selling on Amazon by finding winning products. In this article, we will also discuss important techniques on how to make your store profitable.
Deciding what to sell on Amazon
The first thing you have to do before getting into the business is decide what products you are going to sell. Your product is the heart of your business. Choosing the right one will make your store productive and profitable. This is why you need to be careful in choosing the right products to sell on Amazon.
Before setting your account details and creating the product listings, it is crucial to decide what assets you are going to sell.
So, how do you decide what products to sell? When it comes to deciding what to sell, you have endless possibilities available in the market. However, to be successful, consider the following factors:
- Market: First of all, you need to understand your market and connect with your audience. You must find your niche market and make sure that you can dominate as a seller in this space. If you understand what your market wants and you know how to provide it, you already won half the batle. By focusing on your own niche market instead of battling it out with huge retail giants, you are giving yourself a fighting chance to succeed.
- Demand: There is always a demand for a certain product somewhere. All you have to do is find this demand and fill it. By providing solutions to problems that people have, you can create a demand for your products. Check out the loops and find gaps that others are not able to fill. This is how you can create demand for the products that you sell.
Try everything to find the gap. Google search for your potential product demand in the market, Check out competitors’ listings, or use tools like ZonBase Chrome Extension to see how the product you choose to sell is performing and whether it’s the best fit for you.
- Competition: The third factor that you have to consider when selling on Amazon is the competition. You don’t want to sell in a space that is highly competitive. But you also don’t want to sell in a category with no demand. Finding the products with high demand and low competition is the best way to fly under the radar and still be profitable. An excellent way to find the right product without any effort is to go for ZonBase hot products. It provides you the best products that are selling high with excellent sales metrics.
- Price: For the price, it is very good practice to aim for a product that isn’t either too costly or too cheap. Costly products are very hard to sell, especially if you are not a big brand. On the other hand, products that are too cheap can also turn off some buyers who are on the upside. You have to look for a product that can bring in a fair amount of profit margin, but doesn’t cost and arm and a leg to procure. Once you get acquainted with selling on Amazon, you can definitely change how you target customers.
- Product size: Here’s something you may not know – the size of your products will directly affect your revenue and profit margin. And as a new seller aiming to be profitable, you should always try to reduce your cost. Shipping cost is crucial as a beginner and choosing small, light products can save your cost considerably.
With all the points discussed above, you can choose those products that are best for you to sell. Consider all the factors and analyze them all to come to the right conclusion.
How to Find the Best Suppliers
Once you have decided what to sell, you need to find the right sellers from whom you can source goods to sell. One option is to manufacture your goods yourself but that will not be a good option to start selling in terms of cost reduction. There are plenty of resources like Alibaba to Aliexpress that you can opt to source your product.
To start selling on Amazon, the first thing to do is to find the suppliers that manufacture your products and contact them. Contact about 3-5 suppliers and take more information. Build a cordial relationship with your suppliers and get as much information as you can.
As we are going through the most critical phase, we need to ensure that the suppliers are not fishy and are reputed to fulfill their promises. To help you out, here are strategies that you can use to help you weed out the good suppliers from the bad ones.
- Get product samples: Every product may not be the same as shown in the image. So, to sell best you need to feel the products physically. For that, you must collect samples from all the suppliers that you have talked to. It will help you in listing your product and advertising it accordingly. Also, you can decide whether the product you have decided is worth selling to the niche market you have chosen.
- Read reviews: Reading reviews from other buyers will immensely help you to decide if the supplier is a good fit for you. Plenty of negative reviews shows that they already have a dispute with earlier buyers. That may reoccur in your case also.
- Understand their pricing and terms: Spend plenty of time with the suppliers over the internet. Take to them about the overall business and the terms and conditions of the sales. The more information you get, the more beneficial it is for you. As all the suppliers have different policies and terms, it is more beneficial if you can enquire about factors like minimum order quantity, shipping cost, size of the order, and the frequency of the order.
- Negotiate about the terms that you are not comfortable with: Some of the conditions may be unreasonable and you may have places where you feel to make adjustments in your favor. You have to go for it and negotiate with the suppliers in this context. If you feel the deal is too much for you, don’t hesitate to say no and move to other options.
- Compare multiple suppliers: As we have already discussed that you have to go for multiple suppliers to find the best deal for you. Go for it and you will have price comparison, feasible terms, and conditions.
How much does it cost to start selling on Amazon?
Before you can start selling on Amazon, there are a variety of fees that you have to pay. Due to the uncertain nature of some of the fees, exact numbers are hard to pin down. However, you can still accurately guess the estimate of these fees. It’s important to understand the structure of fees and the maximum cost that you have to incur.
Let’s take a look into the following fees structure that can help you decide whether selling on this platform is worthy of your time or effort to start:
- Seller Fees: This is the most important cost that you have to incur while selling. If you are an individual seller you have to pay $0.99 per product and if you are a professional seller you have to pay $39.99 per month to start selling on Amazon.
- Referral Fees: Referral fees are product-specific and depend upon the category of the product you sell. That’s why you have to consider what product category to sell. Generally, referral fees range from 8% to 15% of the selling price.
- Shipping Costs: Shipping fee is one of the most important things you need to take into consideration, especially if you are using FBA. You have to analyze the different shipping plans and compare them with the FBA cost and go for the favorable option.
- Inventory Cost: There are two options that you have to evaluate to calculate what can save your inventory cost. You have to calculate the inventory cost whether you want to store the products yourself or opt for FBA. Anyway, you must ensure that you earn more than you pay for the cost of your product.
- Picking and packing: This is another fee that you have to pay for the picking, packing, and shipping of your products. It can cost you as low as $2.41 per product and the fees go on increasing as the size and weight of your products go on increasing.
- Returns Processing Fees: In some product categories, AMZ charges fees if the customer returns your products.
In addition, AMZ also charges stock removal fees if you want your products to be disposed of or returned back to you and FBA export fees if you want to sell internationally.
You can take a look here for a detailed explanation of how much exactly you get charged for your products to start selling on Amazon.
Start Selling on Amazon: 5 Easy Steps
Although it is described as a tough job, selling can be pretty simple and easy if you follow the exact procedure and methodology. Here are five easy steps that almost all successful sellers follow:
Step 1: Sign up for a Seller Account
While going for the account setup, you need to choose a seller plan. This is a prerequisite before you can start selling on Amazon. There are three seller plans.
- Individual Seller: You can opt for the individual seller plan if you wish to sell less than 40 items per month. You have to pay a fee of $0.99 per item sold plus other few transaction fees.
- Professional Seller: If you want to sell more than 40 items per month, you must go for the professional seller plan and pay $39.99 per month as seller fees.
Also, make sure that you are familiar with the restricted items. If you are registered in an Individual Selling Account, you won’t be allowed to sell restricted items. It would be advisable to register as a Professional Seller in order to get access to the restricted category.
Step 2: List Your Products
Once you get your seller account ready, you now officially get into the real deal. Now you have to make your store ready and list your products to make them sellable.
If you are an individual seller you have to list each item individually while professional accounts have the privilege to list products in batches. You can list your products under two categories: New products that you are the first one to list and products that are already listed.
Step 3: Manage Your Inventory
After you set up your seller account and list your products, you can check for all aspects of your business on the seller central account. Check for your product orders, update your inventory, and many more.
Every time a customer returns back without being able to order your product being out of stock is a lost opportunity for you. You must take this aspect seriously and manage your inventory properly. Replenish your stock once it is going to be out of stock, mark the margin of safety and find out effective ways to order goods from your supplier so that not a single customer returns empty-handed.
If your inventory is not moving fast, you can always choose the sponsored ad that can move your product listing above the others and can sell fast.
Step 4: Fulfill Your Order and Ship Them to Your Customers
Once you are done with the toughest part of selling i.e. listing your products and managing your inventory, you have another challenging task to make the product available for the customers.
There are two options a seller can choose for the fulfillment of the customers’ orders. These fulfillment options are listed below:
- Fulfillment by Merchant (FBM): Under this option, you have to manage all the services like maintaining inventory, packaging, labeling, and shipping products to individual customers. It will cost you a lot and you have to prepare for the warehouse or godown for the products to be stored.
- Fulfillment by Amazon (FBA): This is the best method for beginner sellers. With this, you can store your products in AMZ’s fulfillment centers. After that, they will handle all your picking, packing, return and refund services of the customers.
Step 5: Optimize Your Processes
Now that you have a fully functional business setup, it’s time to chill. Is it??
Most sellers fail due to this mentality. Your work is only half-done!
There are certain steps that you have to take to ensure that the sales figures are ever-increasing and the customers purchase your product frequently.
The online marketplace is ever-changing and you have to change as per the market condition. Optimization should be your daily work. Optimizing your product listings and pricing strategy can make a huge difference in your business.
In addition, you have to work on making your customer service strong, building your brand, look for ways to increase your chances to win the Buy Box, and build a strong customer base.
Initially, you do not have the advantage of brand recognition and all the favorable conditions while selling and it will take some time and effort to start selling on Amazon. But, the benefits you are going to enjoy are much higher than the cost you are going to pay.
The costs are nominal and you don’t have to sacrifice your entire profit to cover up all the costs. You can surely rise and shine if you develop a proper strategy to optimize listings, manage your inventory and follow all the seller guidelines to sell successfully.
However, the most important part is still finding the best products to sell. Even the most sophisticated marketing strategies will not work if there is no demand for your product in the first place. When it comes to finding the best products to sell, having access to powerful software such as Zonbase can be a game-changer. Zonbase specializes in many different tasks such as product research, keyword research, and listing optimization. With just a click of a button, you can quickly find products that are in demand.
For example, Zonbase has a tool known as the Hot Products tool. What this tool does is that it helps sellers find the trending most-gifted products that have very low competition. With this tool, you can quickly find a trending product that you can sell for a profit before the other sellers catch up on it.
To see what else Zonbase can do for you and your business, try Zonbase today.