How to Sell on Amazon for Beginners — The Ultimate Guide
The question “how to sell on Amazon for beginners?” It’s from one of the most asked questions. In our blog, we have written several articles on how to improve your position or your sales on Amazon,
but we have never had a complete guide to sell on Amazon made especially for beginners. We will start with the first step and we will talk on the tips to make money selling on Amazon.
My goal with this publication is to tell you the complete process of what it takes to sell on Amazon
and that you can extract all the performance for this year 2018.
After reading this article, I think you’ll have enough information to decide to make for you to sell on Amazon.
Selling on Amazon for beginners overview
First I will provide an overview of how the sale works on Amazon.
Amazon is the largest online marketplace worldwide. Do you know the difference between Marketplace and e-commerce? Broadly speaking, a Marketplace is composed of more than one businessperson (of the same or different products), while an e-commerce is composed of only one businessperson.
What we find in Amazon is that it is not only a Marketplace, but that Amazon itself is also a seller (both of third-party brands and their own brands).
When Amazon buy a product from a brand like Samsung and they get it at wholesale price,
this is commonly known as First Party Seller. You may have found yourself in the spot where Amazon has detected demand for your brand or your products and you call to sell them themselves so they would be sold as the first-party seller.
In this case, you negotiate with Amazon a wholesale price and Amazon will decide what retail price will be (usually the cheapest one in the market). It must be said that at no time are you obliged to sell your products to Amazon.
When you start selling on Amazon on your own will, you do it as Third Party Seller.
The main advantage is that you control the sale price and can benefit from different tools to locate your product.
Let’s see a practical example with a Samsung Galaxy Note 9.
In that picture we will examine several points:
- If we click on the “Add to cart” box, the seller who is a third party would get a sale, since their positions both price and shipping are the most beneficial for customers. Therefore, the seller is the earner from this product
- The product is managed by Amazon, which means that the seller has used the Amazon logistics or FBA (Fulfillment By Amazon). With this, you get the product to become a Prime member
Something to keep in mind is that all sellers with the same product are grouped on the same product page. If you have ever sold on eBay, you will see that it is different since there you can create all the content (or listing) of your product.
Getting the Buy Box is one of the keys to success at Amazon.
The performance of the algorithm is not exactly known,
but 3 main facts that you can control is the price, the score achieved as a seller (rating) and your shipping characteristics.
This shipping method is very important to maximize your results on Amazon. Using Amazon Logistics (FBA) as your shipping method is one of the best things you can do to increase your sales on Amazon.
As we see in the previous image, we can appreciate the few methods of purchase that can exist in Amazon:
How to sell with Amazon FBA?
I just mentioned that using the logistics of Amazon FBA is mostly the best option for you to send the products,
so let’s analyze how it works
- Find a product you want to sell on Amazon
- Publish the product to sell on Amazon. At the same time, you go Publish the product to sell on Amazon. At the same time that you are configuring the product, you will also establish the price. We’ll talk about it later.
- Prepare the product to send it to the Amazon logistics center.
- Pack your product and send it to the location assigned by Amazon. Note: you can pack many products in the same boxes.
Your only responsibility is to get the products safely to the Amazon logistics center. Do not worry about the packaging that the final customer will receive.
So if you have 20 paperweights that you want to sell, you can send the 20 in the same box to the logistics center, as long as Amazon has assigned you the same center for the 20.
At this point, your work regarding the product is almost finished.
Here are the steps Amazon will take once your products arrive at the logistics center:
- Verify that you have sent the correct products in the correct conditions
- Once verified that the products are correct, Amazon will activate your listings. This means that your seller name will appear on the product details page and that product will be available for sale.
- Amazon will store the product in its stores until a customer buys it.
- When a customer purchases a product, Amazon team will send the product to the customer.
- Once the product has been shipped, Amazon will deposit your earning in your seller account. You will receive an email from Amazon.
- after every 14 days, you will receive payments in your bank account for the products sold during those 14 days.
Using Amazon’s logistics is a very good idea if we want to experiment in different markets that we can see which products work best for us in which countries.
Basically, you are only responsible for finding good products to sell on Amazon. After this, Amazon does the rest.
What are the benefits of using FBA ?
in how to sell on Amazon for beginners we will talk about the benefits of using the FBA there are some benefits of selling products on Amazon through the FBA program.
The biggest benefit of FBA is the free shipping offered to customers
When you sell on Amazon using the FBA program, your products are available for all Prime benefits. This means that customers can have free shipping within 24 hours of the products you sell.
Fast deliveries are very relevant for customers and greatly increase the chances of generating a sale in front of a seller that is available for delivery through Prime.
In addition to fast shipping, customers know that products sent through Prime will have the same refund conditions as products sold by Amazon.
This means customers will be very confident that their products will arrive exactly as described and when they are expected to arrive.
In the event that expectations are not met, they know that Amazon customer service will solve the problem for them.
The great confidence that customers having in Prime two great benefits that will help orders to sell faster.
The other positive point that I will mention is that Amazon does the most laborious work when you are using FBA to sell on Amazon because while you send products en masse,
they are responsible for sending them individually to customers.
FBM, the other shipping alternative.
As I mentioned above, there is the option of sending FBM Fulfillment By Merchant or shipping from your own warehouse. This means that you store the product for sale in your store and when a customer makes the purchase you send the product directly to the customer. There are times when this option may make sense, but in 99% of the time, FBA will be a better option.
Just learn that the logistics of the seller or FBM is an option, but during this article on how to sell on Amazon for beginners, we will focus on selling on Amazon using FBA.
Now we have an idea about how processes work, we’ll go into detail about how to set up a seller account,
how to know, how much you’ll get for a sale, how to find hot products to sell, how to set up the price of products, how to ship products to stores of Amazon and what you can expect once you have your products for sale on Amazon.
How to start selling on Amazon? Step by step
The first step to sell on Amazon is to set up your seller account.
by clicking here
As you will see in the price plans tab, there are two modalities:
The program that we will choose is that of Seller Pro where you will pay a fixed fee of $ 44.76 per month plus VAT to be able to list your products on Amazon.
By clicking directly on the link you will register as a Pro Seller. After that, you will start the registration process and it should not take more than a few minutes.
How to calculate Amazon commissions: Using the Amazon Logistics Income and Expense Calculator?
If at this point you have already registered as a seller, the first thing I recommend is that you download the application for Amazon sellers (for Android or for iOS) It is a free application available directly through Amazon that will give you details about the sale price, commissions and many other data of any product available on its website. This application will allow you to use your camera to scan barcodes of any product and show you the price and commissions of any product you are considering selling on Amazon.
How to publish your products on Amazon
We reach the last point of how to sell on Amazon for beginners article before you start selling your products on Amazon:
There are 3 ways to publish your products on Amazon: through a file, using your product catalog (EAN, UPC, ISBN, ASIN or product title) or by creating a new listing.
But before that, I would like to tell you that, if these products are your own brand, it is important that you have registered the brand on Amazon.
Because it is important, your products are your property and therefore you have the right to modify the content of these If you do not do this, distributors could manage the content of your products, even creating a reputational crisis. it will not take that more than 3 days to receive the response.
Publish products on Amazon by file
It is the fastest way and the one that most vendors use. For this, we will go to the option of the top menu File / Add products with files and select the continue option Create a product file. Once inside we select the category of products where we are going to sell, we go to the bottom, select Advanced to download a file with all the fields and click on Download template.
Publish products on Amazon using the product catalog
In case you cannot sell many products, you can sell those products already exist in the Amazon catalog, we recommend using this option. To do this go to the main menu File / Add a product and look for the product by EAN, UPC, ISBN, ASIN or product title. Once the product is found, select Sell yours, fill in the fields that and save.
Publish products creating a new listing
If you have searched product and have not found it in the Amazon catalog, it means that no other vendor has uploaded it previously. On the one hand, it is good news because it means that you will have the Buy Box, but on the other hand, you will have to configure all the parameters of the product.
What price do I put on the products I sell on Amazon?
if you have some listed products and you want to sell on Amazon, we need to know how much price should of this. When you sell on Amazon using the FBA program, I recommend putting a price similar to the other FBA sellers.
Through this publication, we have been able to cover most of what is necessary to start selling on Amazon. I would like to finish with some tips and ideas that can be of help based on my experience.
The first thing I told you is that if how to sell on Amazon for beginners sounds good to you, give it a try.
There is no reason for you not to try it this, how to sell on Amazon for beginners
The other main thing that I would like to say as you searching for how to sell on Amazon for beginners is not to give you false expectations. Selling on Amazon, particularly through arbitration, will take a few hours. If you are going to try it, do it using the necessary work.
I hope this article of how to sell on Amazon for beginners answers many of your doubts about how to sell on Amazon for beginners. Although I have tried to make it as easy to understand as possible, you may still have more doubts. That is why both I and the team will be happy to solve them in the comments.