7 things to watch out for when starting selling on Amazon
Have you decided to do business on Amazon? Create a business plan and optimize your business with this giant. In the article, you will learn what to watch out for in the beginning.
Amazon is a real giant of e-commerce. According to statistics in 2018, more than 2 million merchants worldwide sold on Amazon.
This, of course, attracts more and more resellers, as Amazon has a robust infrastructure and an extensive distribution network. That is why the sale on Amazon is suitable both for companies that are just being set up and for established companies that want to expand their scope.
1. Choosing the right Amazon market
Not every product is suitable for sale on Amazon and not every market is ready for your products. You need to think in advance what market you can succeed in. Amazon sells in the following markets:
2. Selling on Amazon as a "professional" vs. "individual"
If you want to get the most out of Amazon sales, you probably plan to sell more than 50 products a month. If you sign up as a "professional" you will pay Amazon $ 39.99 a month in addition to any additional fees.
As an individual, you probably sell units of products per month. You pay Amazon $ 0.99 per month plus additional fees.
When talking about additional charges, count on "relieving" an additional 6 to 20% of the sale, with 15% being the average amount (depending on which category you sell).
Amazon, however, is perfectly prepared for beginners. Just click on the link for the market you want and a guide will open:
3. Amazon FBM FBA
Want to solve logistics once and for all? Take advantage of the FBA program, which takes over all the logistics for you, such as product storage, packaging, shipping... You pay more to Amazon, but ultimately save time and costs. Another significant advantage of FBA is that Amazon handles product returns.
In contrast, the FBM (Fulfilled by Merchant) program means that you as a reseller send your products to customers yourself. You are therefore responsible for fulfilling your orders. You need to consider whether this method is convenient for you. Is it worth it? Do you have sufficient capacity for the FBM?
4. Looking for help selling Amazon? Trust, but verify
To help you sell on Amazon, look for trusted sources, which promise to teach you how to sell. But be careful not to waste money.
On the other hand, when you entrust yourself to a professional, you start selling faster and with better results on Amazon.
It's the smallest step to find out how to sell on Amazon and whether Amazon is right for you.
5. Develop your business on Amazon gradually
Do not unnecessarily introduce too many products at once. It is much easier to concentrate initially on several products and optimize their sales. When you flip through them successfully, move on to the next, then the next ...
The more products you sell, the more opportunities for making mistakes. Don't just do everything at once.
6. Think about pricing
Be the cheapest and sell maximum products with lower margins? Or "copy" the pricing of an existing e-shop? What works in the local market does not have to be on Amazon.
Therefore, think carefully about what pricing you will enter Amazon. If you make a mistake at the beginning of the pricing, it will be very difficult to remove.
7. Collect positive reviews
Once you start selling on Amazon, do everything possible to offer quality service to buyers. Even if you encounter a problematic customer. Unfortunately, the customer is always right.
If you get too negative reviews, your "score" on Amazon will drop and you lose a long-standing position. Keep in mind that Amazon is always more of a customer because it is very important to him.
Have you been headed past Amazon and have you not even started?