Business

6 Figures Selling on Amazon in 7 Easy Steps

This year, more than 140,000 third-party vendors made more than $100,000 in annual sales

These statistics from Amazon are just one reason to sell on the site. It can be daunting to start an e-commerce company. But, if you follow these steps you will (hopefully!) become one of the 140,000 third-party sellers earning six figures.

Many e-commerce platforms make it easy for you to sell your products. However, Amazon has an existing customer base so it’s easier to sell through their platform.

Amazon customers are eager to purchase, so make sure your products are visible to the 150 million unique Amazon users.

Even if your website is not yet online, Amazon is a great place to sell your products. In fact, more than 80% of third-party sellers sell outside of Amazon.

You can learn how to sell on Amazon, whether you have an established e-commerce site or are just starting out.

How to Sell on Amazon

Amazon is a trusted seller platform. They offer customer support and allow users to leave reviews. Amazon is often the first place a buyer visits when searching for an item.

Sometimes, people just want to compare prices and options. Sometimes they want to purchase quickly and efficiently.

Amazon is more than just convenient for buyers. It’s also convenient and easy for sellers. These seven steps will get you to your first sale.

1. Calculate startup costs

This step is often overlooked and people waste their time searching for a product to market only to find out that they don’t have enough funding. These are the costs that you should consider when selling on Amazon:

  • Amazon Account Opening ($39.99
  • Purchase of initial inventory (150+)
  • UPC codes purchased ($10)
  • Photography of products (Free-of-charge – $300)
  • Create logo/branding ($25+)

Although starting an Amazon business is expensive at $350 per month, once you make a profit, it will be well worth the investment.

Consider crowdfunding if you don’t have enough capital to start selling on Amazon. Or, look into purchasing your initial inventory wholesale.

2. Decide what you want to sell on Amazon

It can be difficult to decide what product to sell on Amazon. But, thorough research will help you choose the best product for your business.

3. Select a selling plan

There are two types of selling plans: professional and individual.

Amazon Individual selling plans are for those who sell less than 40 items per month. The plan does not have monthly fees, but it charges $0.99 per item, a referral fee, and variable closing fees.

The professional plan costs $39.99 per month, but there is no per-item fee. However, it does have variable closing fees and referral fees.

Sellers can list products in more categories than 20; professional sellers may apply for sales in at least 10 additional categories.

The fees for referring customers vary depending on the category. Amazon is essentially making money from each sale by referring you to customers and allowing you to sell on their site.

Want to learn about Amazon Individual selling Check out this detailed Amazon individual seller guide.

4. Register for an Amazon Seller Central Account

This is the most crucial and obvious step in the entire process. After you have registered, you will be able to manage your Amazon Seller Central account.

An Amazon Seller Central account allows you to be a third-party seller or marketplace seller. You can sell directly to Amazon customers through seller central. It also gives you flexibility in terms of logistics and payment terms.

5. Select a fulfillment option

You have two options: Fulfillment by Amazon or self-fulfilling orders.

Self-fulfilling orders

It can take time to fulfill orders yourself. You can print your label using an Amazon-approved carrier and enjoy low postage rates.

If you plan to sell less than 50 products, this is the best way to go.

Fulfillment by Amazon

This option is available to all sellers who have an Amazon Sell Central account. FBA is an Amazon service that stores your products in a warehouse and then ships and handles all returns.

FBA makes your products eligible for Amazon Prime shipping. FBA is an excellent way to get Amazon Prime shipping.

6. List your items

There are many ways to list on Amazon, depending on which selling plan you choose. The individual selling plan allows you to add products to the Amazon Marketplace catalog product by product. 

Amazon’s Top Selling Products

Let’s start by looking at the most popular Amazon products. We are not suggesting that you sell only these products. You have to be aware that there would be intense competition. 

Also, before you move further, SellerApp may require you to conduct competitor research.

But, if you are paying attention to trends like this, you can get a better understanding of what Prime members and other Amazon shoppers need. This Amazon bestseller list can be used as a starting point for your product research.

Toys and Games

The majority of children are consumers so it’s not surprising that the Toys & Games segment is so strong.

Electronics

We live in a digital age and selling electronic goods online (including Amazon, another eCommerce platform, or your own eCommerce website) is possible.

Camera & Photo

Amazon’s top-selling products in the category of camera photos include everything from instant camera film to wifi-enabled camera systems.

Video Games

Video Games include gift cards as well as actual games and hardware such as controllers or headsets.

Books

There are likely to be PR and marketing campaigns for pre-sales. Many of the best-selling books on Amazon have upcoming releases.

Clothing, Shoes & Jewelry

Amazon has been expanding its Clothing, Shoes & Jewelry section for some time. If you look at the top 100 products within this category, it is clear that comfort and warmth are important to Amazon Prime shoppers. It’s not surprising, considering the colder temperatures in fall (and winter ahead).

Home & Kitchen

The InstantPot pressure cooker is a top-rated product in the Home & Kitchen category. The power of technology gives us the ability to automate and consumers love gadgets that make our lives easier, whether it’s for cleaning, cooking, or anything else that could be tedious and/or time-consuming.

Recommended Guide: How To Start A Dropshipping Business On Amazon?

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