Whether you already have an eCommerce site or are completely new to selling online, figuring out how to sell on Amazon successfully can be tricky. From fees for selling on Amazon to Fulfillment by Amazon (Amazon FBA), there are plenty of things to consider when you first start out.
TradeGecko’s inventory and order management software will help you automate your workflows so you can focus on growing your business.
We’ve created a quick guide on how to sell products on Amazon to help make the process easier for you.
As a seller in Amazon, you also need to have UPCs for any products you list for the first time. A UPC is a barcode used for categorizing and identifying your store listings, and can be purchased online from GS1.
If you have an approved trademark, you can also skip purchasing UPCs by registering your brand on Amazon. Depending on your brand, registering can be a good idea to ensure your registered Amazon trademarks are protected and so customers see you as a trusted seller. If you register your brand, you will still need to create SKUs for each product, but it doesn’t have to be purchased from a third party.
Fulfillment by Amazon takes care of the picking, packing, and shipping for you. This is particularly beneficial for small businesses, as it not only reduces handling and shipping responsibilities but also allows your products to appear in Prime-filtered searches. Prime-eligible products have higher conversion rates than those without, which means an Amazon FBA business is likelier to sell more products than a seller who handles fulfillment themselves.
Although this service comes at a cost, many business owners find Amazon FBA fees to be reasonable, especially when considering the cost of managing packing and shipping internally. Find out more about FBA and how to sell on Amazon Prime here.
Whether your business is a one-person operation or you have a team on hand to help, it’s important to dedicate time to growing Amazon as a viable sales channel.
There are many strategies to maximize your gains, and the strategy you adopt should depend on your business model. For example, pricing optimally is critical for all Amazon resellers because it means that fees don’t eat into your profit yet your price is competitive enough to attract customers. As you begin to grow, consider utilizing a dedicated team with the know-how and time to implement strategies specific to selling on Amazon.
Customer satisfaction comes down to shipping quickly and accurately. While Amazon FBA is valuable for ensuring swift shipping of your products, you should still have a straightforward shipping and returns policy in place so that customers know when to expect their products, and what to do if they want to return an item.
Before you pull the trigger on your Amazon store, make sure you have a plan in place to handle an uptick in orders coming in from your new sales channel. While you don’t want to be left with a huge amount of surplus stock, you should have enough inventory on hand to avoid stockouts and keep new customers happy. A dedicated inventory and order management system can help you manage fluctuations in sales and determine optimal stock levels as you grow your Amazon business.
Although you might expect sales patterns on Amazon to mimic those on your online store (if you have one), different channels can easily produce different results.
Think of your Amazon presence as a standalone venture that should be reviewed and improved on continually. For many businesses, this means testing different tactics and scaling those that work. As a starting point, follow these steps to give yourself the best chance of success:
Use TradeGecko to streamline your inventory management processes and grow your business