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How to Sell on Amazon in 2023

May 22, 2023

Selling on Amazon has become one of the most lucrative ways to make money online. Since its launch in 1994, Amazon has revolutionized the eCommerce industry, allowing anyone with an internet connection to create a business and sell products worldwide quickly. In 2023, this trend is expected to continue as more and more people take advantage of the opportunities Amazon provides. This article will give you a detailed, step-by-step overview of how to sell on Amazon in 2023.

We'll discuss why you should consider selling on this platform, what strategies and best practices are necessary to maximize your sales and profits, and what new growth opportunities may become available. With this comprehensive guide, you'll be well on your way to learning how to sell on Amazon and creating a successful business.

The Benefits of Selling on Amazon in 2023

Selling on Amazon can be a profitable business opportunity, particularly for beginners, due to the company's global presence and continued growth. With 20 marketplaces worldwide, Amazon offers a thriving platform with ample opportunities for those looking to enter the e-commerce industry and start their own business. In this section, we tour some of the advantages entrepreneurs get from selling on Amazon in 2023.

  • One of the largest eCommerce platforms

Based on a 2022 report, Amazon has over 200 million active Prime members, with even more customers flocking to the platform without a subscription. As an Amazon seller, you have access to this customer base without having to do any marketing or advertising. Therefore, you can minimize advertising spend while placing your products in front of millions.

  • It's already trusted by hundreds of millions of customers

One of the most significant challenges business owners face is earning the trust of their customers. However, when you sell on Amazon, you already have millions of people seeing your product that already trust the platform. As a result, it can be easier to sell on the platform and create a reputation for your business independently.

Moreover, with Amazon's lucrative return policy, customers using the platform will feel more confident making purchases from your business, especially if they haven't made a purchase before.

  • Amazon charges reasonable fees

Like any platform, Amazon charges sellers to use the platform. However, the fees are minimal compared to some alternatives, especially considering the added benefits mentioned above. Sellers with a merchant account are charged a flat monthly fee ($39.99) in addition to a small percentage of your sales, but you would not have any listing fees.

Amazon also offers a pay-as-you-go plan that only requires you to pay a fee once you sell an item. The price for sellers with this option translates to a $0.99 fee per item sold.

How to Sell Successfully on Amazon in 2023

Now that we've gone over the advantages of selling on the platform, let's delve into how to sell on Amazon successfully.

  1. Getting Started

The first step when learning how to sell on Amazon is registering as a seller. To do so, you have two plan options: Individual or Professional. The Individual plan is perfect for those running a smaller operation with only a few items to sell; the Professional plan is great for those aiming to run a larger-scale business.

If you find that you made the wrong plan choice, Amazon will let you switch for a small fee.

Once you decide on a plan, it's time to create your seller account. To complete the registration, you'll need to provide the following information:

  • Your business email address or Amazon customer account
  • Valid credit card information to cover any applicable fees
  • Your government-issued ID
  • Phone number
  • Tax information
  • A bank account where you can have your sales proceeds deposited

Before listing products on the platform, you should be aware of the fees you may encounter as an Amazon seller:

  • Subscription fees: Briefly mentioned above, sellers are responsible for paying a subscription fee based on the plan they choose when setting up their seller account. The individual selling plan will be charged $0.99 per item sold. In contrast, the Professional plan charges a $39.99 monthly fee with no fee per item sold.
  • Selling fees: These fees cover variable closing and referral fees. The variable closing fee refers to the percentage of the sale you pay to Amazon for using their platform. On the other hand, the referral fee is only applicable to media categories.
  • Shipping: If you opt to fulfill orders without the help of Amazon, you will have to pay shipping fees, which vary based on the product category and the shipping carrier you choose.
  • FBA fees: If you decide you don't want to ship products yourself and prefer Amazon to do it for you, you will be responsible for paying Fulfillment by Amazon (FBA) fees.

 

  1. Get Familiar with the Amazon Marketplace

After successfully registering as an Amazon seller, you can open your Amazon Seller Central Account. This account acts as a gateway where you can monitor your sales and carry out various tasks such as managing your inventory, updating prices, adding product details, communicating with customers, and more.

Amazon allows you to manage your storefront even when you're on the go with their Amazon Seller app. With the app, you can fulfill orders, input product images, create new product listings, and more. Sellers can download the app with their iOS or Android devices.

Suppose you decide to opt for Amazon FBA. In that case, you should familiarize yourself with the process to ensure you understand it through and through. With Amazon FBA, sellers can choose to have their products stored in more than 175 fulfillment centers worldwide. You also can have your customer service, returns, and automatic Prime eligibility all handled by Amazon.

The fees associated with Amazon FBA include fulfillment and storage fees. The fulfillment fees are charged per unit sold but cover the entirety of the fulfillment process. On the other hand, inventory fees get charged monthly. They depend on how much inventory you keep housed in Amazon fulfillment centers.

Amazon FBA will handle everything for you – all you have to do is ship your product to Amazon, and they will take care of the rest.

 

  1. Determine Your Sales Strategy

You may already have an idea of you plan to source your product, but in case you are still unsure, there are several options to choose from:

  • Private label includes products manufactured by one company but branded and sold by another entity.
  • Drop-shipping is when the seller partners with a third-party supplier that fulfills your orders. Essentially, a customer places an order with your business, you order the product from a third party at a cheaper rate and have it shipped to the customer, and you get to keep the profit.
  • Handmade products: Amazon has a special section of its website dedicated to artisans, which gives them a central location to sell their handmade products.

While there are other sales strategies, these three are some of the more popular options for sellers on the platform.

 

  1. Create a Plan for Success

Like any business, you can't just list a product for sale on Amazon and expect it to become successful. Instead, you must plan and create a strategy that will eventually snowball into a successful business.

This section covers some steps you can take to make the most of your efforts selling on Amazon.

  • Put together a business plan: before you get started selling on Amazon, take the time to create a business plan that covers your long-term goals, branding, budget, and the types of products you plan to sell.

While creating your business plan, conduct market research to see what products are performing well on the platform and take the time to find the best suppliers. Preemptively creating this plan will allow you to streamline operations, minimize potential risks, and address everyday business challenges head-on.

  • Find your niche: knowing what group of people you plan to sell your products to will allow you to select products that appeal to them directly. Hence, it's essential to have a clear picture of your buyer persona. Additionally, having a personal interest in your chosen products can help you market them appropriately and stay competitive in the marketplace.
  • Create your brand: although it can be challenging to decide on a brand, it is essential to carve out a spot for your business in the marketplace. Your brand should distinguish you from other sellers on the platform to make your company recognizable to your customers.

The first step is to pick a brand name that adequately represents your business, goals, and values. When you have a list of potential brand names, be sure to Google them and research domains to see if that brand name is already taken to avoid confusion or potential issues later down the line.

The next step is to create your logo, which you can hire a graphic designer or do yourself. Your logo should represent your brand identity and be easily recognizable.

  • List your product(s): To create an optimized product listing, add relevant keywords and make sure it is appealing to any potential customers who may come across it. To make an optimized and appealing product listing, it should include the following:
    • Product Titles
    • Product Description
    • High-quality, professional images
    • SKU
    • Global Trade Item Number (GTIN), such as a UPC or an EAN
    • Relevant keywords

Your product titles should be concise and descriptive. Still, you can leverage the product description to go into detail about everything your product has to offer.

 

What Should You Do After Making Your First Amazon Sale?

Making your first sale is a giant leap forward toward growing your business, so here are some best practices to follow after selling to your first customer:

Keep an Eye on Your Inventory

Proper inventory management is vital for any business. It helps prevent issues such as spoiled products and unfulfilled orders. You can meet customer demand by tracking and maintaining appropriate inventory levels while avoiding overstocking or stock shortages.

Track Your Performance

To track your performance, use Amazon Seller Central and pay attention to these critical metrics:

- Order defect rate of less than 1%

- Pre-fulfillment cancel rate of less than 2.5%

- Late shipment rate that should ideally be under 4%.

Watch for and reply to customer reviews

Customer reviews can have a significant impact on a business's success. In Amazon, they are a crucial aspect of the customer's shopping journey.

One way to boost your sales and conversions is to ask satisfied customers for reviews, which serve as social proof of their positive transaction experience. Even negative reviews can be advantageous if you learn how to respond appropriately. How you handle reviews, positive or negative, can influence your brand's image in customers' eyes.

However, it is vital to research what you should avoid doing regarding customer reviews to prevent policy violations.

 

How to Grow as a Seller on Amazon

After you start to see some success with your Amazon business, take the time to look into and try out some of Amazon's advertising options to scale your current operation. Presently, Amazon sellers can take advantage of Sponsored Products, Sponsored Brands, and Amazon Stores' advertising options with Amazon Seller Central. As your business grows, you can also offer your customers discounts, free shipping, and BOGO (buy one, get one) deals.

Selling on Amazon can be intimidating at first, but with the right plan in place and research to back it up, setting up your shop can be exciting and rewarding! If you're ready to get started but looking for business capital to launch, Fund&Grow can help.

With their done-for-you service that offers business funding of up to $250,000 - even for startups - Fund&Grow simplifies the process so anyone can access necessary funds in no time. Don't let lack of capital stop you from starting your journey as an entrepreneur on Amazon in 2023; click here to learn how Fund&Grow can get you the funds you need to be successful.

 

I take tremendous pride in building positive and lasting relationships in my businesses and personal life. Every member of my team is committed to helping our clients get the maximum amount of funding possible and achieve their highest growth potential.

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