Last updated on 5th October 2023 at 14:25 by Alex Nicholas
Anyone who wants to make money online should consider selling products on Amazon. It's one of the easiest ways to get started in eCommerce, and there are many benefits and several ways to sell on Amazon that you may not be aware of. In this article, we'll discuss some of those benefits and explain why selling on Amazon is a great option for online entrepreneurs.
Your online store is your home base, where you showcase your brand and sell products.
Selling in the world's number one commerce platform is a no-brainer. It can also be a great way to test the appetite for products without too much investment creating your stores later down line; this helps plan potential launches rather than just focusing entirely on specific markets.
In this guide, we will cover various topics including:
- Why should I sell on Amazon
- Can I sell on Amazon from home
- How to sell on Amazon
- The ins & outs of selling on Amazon
- The benefits of selling on Amazon
- The 2 Amazon selling plans
- Create an Amazon seller account
- Choosing the right products to sell
- Plan before you start
- Registering your products
- The costs of an Amazon business
- Fulfillment by Amazon
- How do I get paid when I sell on Amazon
- Amazon Brand Registry
- Selling on Amazon fees
You probably have a lot of questions before we get into the details, so let's answer them straight away:
Why should I sell on Amazon?
The number of people buying from this popular eCommerce site has never been higher. With over 2 billion active customers worldwide, there's no better time like the present for an entrepreneur like yourself to take advantage and start selling on Amazon!
In fact, if you want to become a seller on Amazon, we would argue that there's no better time to start. The western world turns to the internet these days when they need things, so to become a seller on Amazon makes perfect sense.
How can I start a lucrative business on Amazon and how do I ensure that it continues to flourish in the future?
The number 1 question that will be going through your mind will be how do I sell on Amazon or how do I become an Amazon seller, and the answer is the same as any other business venture, to sell successfully on the Amazon marketplace you need a good product to sell and a plan.
Without a well-thought-out and solid strategy, your future Amazon business may fail. You'll want to consider what you will do when the product runs out or needs replenishing. You can utilize services like Amazon FBA which can help reduce risk by storing products while they're being shipped off to lighten the load of your business.
But without knowing the competitiveness of the landscape or your margins you'll struggle on Amazon as a seller.
How much money do you need to start selling on Amazon?
When starting to sell on Amazon, you'll need a seller central account. This can cost as little as $30 per month for a professional plan, but there are other costs such as stock for example that must be considered, too.
If this is your first time selling through Amazon we usually recommend starting off with just 1 or 2 products and a budget for stock that doesn't keep you up at night.
With regards to how much upfront capital you will need, well that's obviously not something we can cover here as only you will know that. It could be as much as $20'000 or as little as $2000 and will be dependent on your attitude towards risk and how much you're prepared to lose if it all goes wrong.
However, if you have a budget in mind and want to either explore some options of what to sell on Amazon or confirm your idea(s), we highly recommend that you use the best Amazon seller software on the market, and that's Helium 10. It'll go a long way to settling any fears you might have.
It stands out when I ask myself the question, what do I need to sell on Amazon? And whilst the obvious answers are time and money, what often gets overlooked by beginners looking to sell on Amazon is data at your fingertips. Data goes a long way when you're setting up a business on Amazon.
Helium 10 is a long-standing partner of ours, and as such has provided us with a discount for new sign-ups. Just click on the link below, enter the Digital Cornerstone code then make the most of this best-in-class tool to get ALL of the information and competitive data you need.
What are some good products to sell on Amazon?
Many products sell well on Amazon including:
- Electronic accessories
- Headphones and audio equipment
- Children's toys and games
It's up to you to do your research and find out what products are popular in your niche. Then you can decide what products are right for your Amazon business.
We suggest that you use this 6 step process as a guide to figuring out if a product is worthwhile or not:
- Look at the top 2 pages of results when you search for a product you're thinking of selling. If there are lot's of near-identical products with loads of good reviews then that's going to be a tough niche to crack.
- If the top 10 products have over 1000 4.8 star reviews each then it's a signal that the buyers are happy and will likely take the lion share of the sales because the products are obviously good and probably can't be improved upon.
- We do not recommend settling for anything less than a 30% net profit. To help you figure this out go to Amazon's sales calculator and enter your product costs etc.
- Install the Helium 10 Chrome extension and check out the BSR (best sellers rank) over the course of a year for the competing products. This will show you how many you can expect to sell after a certain time period after you have some good reviews and are on the 1st page.
- Whilst using the plugin, check the prices over a year to see how stable (or went up) they were. If they were stable then that's a great sign that a) buyers like the price and b) there isn't lot's of new competition entering the space. If the price fluctuates quite a lot then either there are a number of competitors joining in or buyers are very price sensitive.
- Away from Amazon, check Google trends. Like the data provided by the Helium 10 software, Google Trends will show you whether or not there's constant or rising demand for a product or if it's a passing fad.
Can I sell on Amazon from my home?
Yes! You can sell on Amazon from the comfort of your own home. All you need is an account with seller central and then use it as a platform for listing products, setting up promotions to increase sales volume, and monitoring trends throughout all stages.
How to sell on Amazon
Amazon has become one of the most popular ways for people to start their own small companies. Understanding how this works can be really helpful if you want a detailed guide on what steps are involved in building your sustainable online store all while optimizing your time.
With the right strategy, eCommerce businesses can take advantage of Amazon to sell products and improve brand awareness while creating an online store where they control everything. They'll save money on fees as well (stay tuned for more in-depth information on this at the end of the article).
There's no better way to get your products in front of regular customers than through the channels they're already using. By making relationships with these shoppers deep and strong, you'll have an easier time growing sales.
Selling on Amazon is easier than you think. You just need to follow a few simple steps:
Step 1: Register as an Amazon seller and create your brand on Amazon
You'll require a contact phone number, email address, and business name to start with (more on this later).
Step 2: List products you want to sell
Only approved products can be listed through the ‘inventory' tab in your seller central dashboard. It's important to research products first to avoid fraud or legal issues later down the line.
Step 3: Pricing
Consider your product cost, promotional discounts, shipping costs, and ensure you are not selling at a loss before listing any goods on Amazon.
Step 4: Promoting your business
After all that hard work, you need to make sure that your Amazon business is successful. Promotional discounts are a great way to get more customers on board, but it's important not to go overboard with these.
Step 5: Sell
Sales are the lifeblood of your business so this one is crucial. Be sure to keep a close eye on your competition and monitor product trends so you can be one step ahead. Monitoring this data is crucial for planning stock replenishments and the future growth of your Amazon business.
The Ins and Outs to Selling on Amazon
How selling on Amazon works
When you sell your products on Amazon Marketplace, they are sold under the famous banner of “Amazon.”
When selling on Amazon Marketplace, you will be assigned a category that defines the type of seller and how often your sales can occur. Casual sellers are those who sell 35 items per month or less and pay only completion and referral fees for each item they sell.
Professional sellers can sell a greater range of products than casual ones and they're given bulk listing tools that make it easier for them. However, there's an additional fee associated with the professional status: monthly subscription services, as well as individual completion referral fees all come into play here.
Selling on the Marketplace is a great way to make money, but if you're looking for more sellers and higher conversions it may be worth considering becoming “pro-merchant” with Amazon. The cost of membership starts at £25 per month (or £28.50 including VAT) which enables access in one or all five EU marketplaces – giving your customer a much greater selection when they buy.
The benefits of selling on Amazon
There are numerous benefits to selling on Amazon. We've compiled a list of 11 below for you to get a better idea of why Amazon is the best place to start your online eCommerce journey.
- Amazon is the most trusted online retailer by a long, long way
- Reach a large audience of potential customers
- Easy and fast set-up
- Sell products globally
- Use Amazon's infrastructure and resources
- Completion and referral fees are low
- Get access to bulk listing tools
- No need to create your website or shopping cart
- Customers are comfortable with Amazon's checkout process
- Can sell a greater range of products than on other marketplaces
- Opportunity to improve brand awareness
Now that you have a good idea of what sets Amazon apart, it's time to explore how you can pave your way utilizing all that Amazon has to offer as a seller.
Creating the right selling strategy
There are two primary ways to operate on Amazon – through the ‘Individual' or ‘Professional' Selling Plan. The biggest difference between the two is that individual sellers are only allowed to list 40 items per month, while professional merchants may sell up to 200 listings per month.
Professional selling plans also give you access to bulk listing tools, customer support, and the option to enroll in Fulfilment by Amazon (FBA).
The two selling plans on Amazon
There are only 2 plans to choose from when it comes to selling on Amazon, the individual plan and the professional plan. The main difference between the two selling plans is how many items you can list.
Individual sellers are limited to 40 listings per month, while professional sellers can list up to 200 listings per month.
Individual selling plan benefits:
- You can sell in more than 15 international Amazon marketplaces.
- Your products are eligible for Prime shipping and Free Shipping on eligible orders over $49.
- You can sell in more than 60 countries around the world.
- There are no monthly subscription fees or referral fees to pay.
- The plan is free to join.
Professional selling plan benefits:
- Allowed to sell 200 listings per month, as opposed to 40 with the individual plan.
- Unlimited storage capacity for your products means you don't have to worry about deleting items to list new ones.
- Users can enroll in FBA.
- The professional plan is only £19.99 per month, coming to a total of £239.88 including VAT annually. This breaks down to less than £2 per day to access all the benefits listed here – that's one Starbucks coffee!
You can see how it can be more beneficial to become a ‘professional' merchant on Amazon.
How to increase sales
It's a well-known fact that more revenue can be made on Amazon through some simple, yet effective practices. When implementing a marketing strategy, it's important to consider what you're selling and how it may be different from similar items currently being sold on Amazon.
The best way to increase sales through Amazon is by going niche-specific with your product. We say ‘going niche' because the majority of sellers list a wide range of products, meaning they aren't tackling a specific market.
Finding a profitable niche to sell your product within can be difficult, but it can also have high returns if done successfully. When you're analyzing niches to focus on, following on from our 6-steps listed above, you should also look at the following:
– How many other sellers are there? Less competition means more income.
– What's the market like and how big is it? The smaller the market, the fewer people will be targeting it meaning higher potential profits.
– What can you offer? If you find the niche, what products are available to be sold?
– What's the competition like? How many sellers are there in this niche?
It's not just about choosing a niche market, you need to think about the type of products you'd like to sell as well. This will largely depend on your current skill set and what you feel comfortable creating.
Here is a list of ideas for different types of products:
- Household items: Kitchen utensils, cleaning products, towels & bedding, etc.
- Health & beauty aids: Makeup, skincare, haircare, dental hygiene.
- Clothing: Pants, dresses, shoes, shirts.
- Electronics: Smartphone accessories (cases/holders), cables & charging docks for Apple devices.
- Sports & Outdoors: Home gym equipment & hiking gear.
Now that you know how to increase your sales on Amazon and how to go about choosing a profitable niche, it's time to take a look at the different ways you can overshadow your competitors.
Tips for Beating Competition
Staying ahead of your competition is easier said than done, but there are some simple tips you can implement right away. Here are 5 key tips to position you ahead of the competition.
1. Listing optimization
We've already created an Amazon listing optimization guide that shows you how to increase your Amazon listings' performance, so we won't go too in-depth here. If you're serious about selling your products on Amazon though, then it's going to be well worth your time investing in going over this article. It can be as easy as ensuring the title, bullet points, and description are optimized for certain terms or identifying popular ‘hashtags' to help sell.
It's important to brand your products when selling on Amazon. You can do this in several ways but without knowing your product it's hard to comment. However, basic things such as own branding (private label), adding stickers, or changing the color of packaging for different brands/variations you sell (e.g., blue label = original product, red label = improved version) can be a big help in the long term.
3. Seller Feedback
It's important to get on top of your seller feedback as early on as possible so you can build up a good reputation for yourself. Amazon works like a flywheel, the more sales and positive feedback you get, the higher up the results pages Amazon pushes you, which in turn creates more sales and reviews.
This is an area where it may be worth investing in some professional help. There are plenty of tools out there that can give you insight into areas such as competitor pricing strategies, how often a product is sold, and the highest and lowest prices customers have paid for a certain item.
If you're fulfilling orders yourself, known as Fulfilled By Merchant (FBM) then make sure you're competitive on shipping prices and times to entice customers to purchase from you rather than a competitor seller. We recommend offering free at all times if possible because Amazon's customer base is used to paying nothing for shipping.
However, we strongly recommend that you utilize Amazon's FBA service (fulfillment by Amazon), which means that all you need to do is ship to Amazon themselves and they handle shipping through their fulfillment centers.
Creating an Amazon seller account
The next step is to create a new Amazon seller account. Before signing up, keep the following on hand:
- Business email address
- Bank account number or bank routing number
- Active credit card
- Government-issued national ID (depending on which country you're selling from)
- Tax information
- Phone number
To get started, go to sellercentral.amazon.com and sign up. You will need some information about your business such as address or tax number; this way Amazon can correctly identify who you are so they know how much money of their stock is required for each transaction.
After your Amazon seller account has been approved, you can then get your products listed for sale.
What products you should sell on Amazon
There are a lot of different products you can sell on Amazon. In addition to books, music, and DVDs from their inventory in the early days when the site was founded, they now sell almost anything you can think of in their inventory.
Compared to back in the early days, now when a person visits the Amazon website, they're greeted with an overwhelming assortment of product categories.
There are plenty of options to choose from, here is a list of some popular product types that people are selling on Amazon these days:
1. Phones & Accessories
One of the best things you can sell on Amazon is a mobile phone. There are many ways to go about this, whether buying refurbished phones outright and sending them through for resale or selling new unlocked devices – there's no wrong answer.
2. Books & Media
Amazon has plenty of options for new sellers. Selling physical books is an easy way to start making some good cash while still learning the ropes.
3. Health & Personal Care
Customers are always looking for ways to save money when it comes time for their beauty and health routines. One way you can do this is by offering discounted or smaller size toiletries, such as beard oil in 1oz samples instead of the usual 3.38 fl oz bottles.
4. Home & Kitchen
If you're looking for a way to diversify your product line, Amazon is an excellent option. With their ever-expanding selection of kitchen-related products and services available on the site like sets of pots and pans or a dish rack.
5. Movies, Music & Games
If you have a large digital library of music or movies, this can be another low-effort income method. Amazon has a huge inventory of movies and music, so this is an excellent option for people with the right kind of inventory.
6. Apparel & Accessories
You've probably seen someone wearing something that catches your eye in the past few months. Perhaps it was a unique, superhero backpack, or a nice pair of high heel boots. Whatever it was, someone probably had to make it; why not sell it on Amazon?
If you are not in the market of producing your products there are other options to make money with Amazon without selling anything physical.
7. Selling Services
Services are much more difficult to put your stamp on than products. But you can still provide customers with high-quality work and get paid in return by selling services such as book reviews or website design through the Amazon marketplace.
Choosing the right product to sell can become overwhelming so don't chance it. Thorough research is the key to success, so head over to Helium 10, choose ‘Black Box' from the tools drop-down and start hunting for your winning product.
Which products NOT to sell on Amazon
There are a few things and products you should avoid when selling on Amazon.
When selling on Amazon, you mustn't violate any copyright laws. If your item is a resale product and not sold entirely by yourself then make sure the license allows for this! Even when using your products in an unauthorized manner be aware of what local regulations may apply where you live – even if something seems okay online doesn't mean there aren't any restrictions at home too.
You can't sell any of these types of products on Amazon, even if they're legal in your region. Avoid selling them and you'll avoid losing your account to Terms of Service (ToS) violations.
1. Guns & ammunition
Selling firearms on Amazon is generally prohibited, but that doesn't mean you can't sell anything related. Ammunition and gun accessories are allowed in most regions so long as you check Amazon's guidelines first.
2. Drugs & medical devices
Selling drugs on Amazon is a very serious offense. When you get caught, your account will be terminated immediately and any products associated with selling illegal items become ineligible for return or refund under the company's policies as well.
3. Hazardous materials
Some items are dangerous to ship, so Amazon doesn't allow them to be sold on their marketplace. This applies to anything hazardous, including flammable liquids, explosives, compressed gases – even fireworks!
Business planning and preparation before you start selling on Amazon
Before you can sell on Amazon, you need to make sure your business is set up correctly! Things like your tax situation and business structure should be well-thought-out before you start selling.
You can sell on Amazon without being a professional seller if you have a few items or are just starting. However, the benefits of that extra level for more serious traders are clear: increased range and flexibility in product selection.
And don't forget tax planning – If you're planning on shipping products out of the country, it's important to consider how that will affect your taxes. International shipping rates are quite high, so you'll want to stay away from shipping products directly from your country.
For sellers from outside the United Kingdom, numerous additional restrictions apply. More detailed information may be found on Amazon's website.
If you follow these tips and build your business correctly from day one, there's no reason why it can't be successful! If you want to avoid making costly mistakes that could put your Amazon business at risk, then take some time and do some research. Find someone willing to mentor you and help guide you through the process. You'll save yourself a lot of disappointment and frustration, not to mention time. After all, there are only so many hours in the day!
You'll need to register your products – thankfully this part of the process is extremely simple.
Click on the “Sell Yours Here” button to start selling your products on Amazon.co.uk. You will be required to enter details about what is listed, such as details regarding the condition and age of the product. Don't forget to include all additional relevant information for each item sold which helps buyers find exactly what they're looking for.
If you're already a professional seller on Amazon, you can use their web-based interface or bulk listing functions for this process depending on what will work better with the specific needs in each instance.
If your products already exist in the Amazon.co.uk catalogue then you can set up individual product pages to sell your items, using the site's web-based interface. Just enter a name for this new Product Page and choose whether it will be available in stocked quantities or not then type in an item number that corresponds with one of those listed above.
You can also use Amazon's bulk listing tools, which require the EAN/ISBN or UPC for each product. If you need a barcode click here to find one online.
If your products do not exist in the Amazon.co.uk catalog then you can list them using either the web-based interface or bulk listing tools.
For each new product, you will be required to provide product information, including:
- EAN, UPC, or ISBN code
- The product title
- Product description
- An image of the product
- Available stock
The EAN is basically a barcode that identifies the product. If you're in the UK I recommend using GS1 UK.
Some of the categories require additional information to be input. Amazon will let you know if they need more information from you to complete your listing.
Costs of operating an Amazon business
What are the costs to sell on Amazon UK you might ask?
As a casual/individual seller, you are required to pay a completion fee per product sold which is around £0.75 in addition to the referral fees that vary depending on what they are.
There are a few different costs that you can expect when selling on Amazon. Professional sellers pay £28 per month for their subscription, plus an additional referral and closing fee depending upon the product they're listing – which ranges from books through music DVDs (with certain categories having more specific rates). If you qualify for VAT-exclusive fees these could vary. We'll dive deeper into fees at the end of this article.
With all these extra services, there is a higher price to pay for using Amazon's marketplace. You'll need fulfillment by Amazon and they charge an additional fee if you want the package shipped outside of their shipping facility which we recommend because otherwise it may get lost or delayed in transit; see below for more information.
Shipping and payment for selling on Amazon
You must ship your product within two days of receiving notification that it has been sold, and you will receive confirmation for funds to be credited if the buyer pays upfront.
When you send confirmation that the item has been sent, Amazon deposits your earnings into a seller account. Funds are then transferred to the bank on a 14-day cycle for final processing and withdrawal – usually within two days of receiving payment!
Shipping and storage for selling on Amazon
With the Seller Central account, you can manage your products and orders. Each seller has full access to this facility – all transactions are visible on one easy-to-use interface so that they may be tracked for progress reports or similar needs.
Once your item sells, Amazon will send an e-mail to notify you that payment has been taken from the buyer. You must dispatch it within two days of receiving this information for them to receive their purchase on time
You can either manage the delivery process yourself or let Amazon take ownership. If you're going to retain responsibility for it and be informed by email when an order has been placed – all that's left is packing up.
Fulfillment by amazon
Although you can manage your shipping and customer service, using FBA (Fulfillment by Amazon) will allow Amazon to do so for you. With this feature, customers can store their products in one place while still having them delivered straight from an external source, which allows you more time to devote elsewhere.
You don't have to pay any extra fees when you add Fulfillment by Amazon. But there are fulfillment and storage requirements that vary depending on the type of item, its dimensions, or weight for example; also what shipping method is used (door-to-door versus drop-ship).
When it comes to storing your inventory, the price per month can vary. From January through September you will pay £0.30 for every cubic foot that is stored; during October and November, this increases by about 10%. The highest rate monthly fee applies in December because there's more stock than usual leftover after all those gift shoppers have finished shopping.
To see if FBA service might work for your business, simply add up what costs are associated with overhead like warehouse space/packing supplies, etc., then divide these numbers between two sides: one representing potential revenue from sales through amazon marketplace vs another which would represent cost savings.
Something that you should also consider is that if there's a problem with the delivery of your item then because you're using the FBA program, Amazon takes full responsibility and it doesn't affect your account health.
And seeing as your account health is a big deal in Amazon's eyes we strongly recommend that you consider FBA if possible.
How do I get paid to sell on Amazon?
Selling on Amazon is not only an effective way to make money, but it's also responsible for significantly growing the e-commerce industry in the UK. While there are some potentially lucrative selling options such as selling via retail arbitrage, it is also a good idea to list products on the platform as a manufacturer or supplier. This is known as the wholesale model and allows sellers to quickly collect payments for their products without having to go through individual buyers – which is why this approach was highly effective in the past.
You'll be automatically depositing money into your account every 14 days, starting with the next purchase. There will be a notification sent to your email once the payment is sent. Then you will be able to check how much money you've earned in your Amazon account. After that, it's up to you to decide when and how you want to withdraw your money! In addition, you can ask Amazon for a check, direct deposit, and more.
Amazon growth opportunities
Encourage Product Reviews
Reviews are the backbone of any business, and as such it's no secret that they're extremely important. We've all bought something on Amazon with a decision coming down to which product had better reviews even if one was higher priced than another – these days, unless you're buying everyday consumable items, you can't tell if the purchased item will be fit for purpose until after your purchase has been made so it's critical to get good reviews from customers.
Sellers are allowed to send follow-up emails to customers related to a specific order, and there are several automated services available that can help you manage this process. The guidelines are here but, in summary, you may not:
- Send emails with marketing or promotional messages
- Have links to other websites
- Demand, ask for or incentivize positive reviews
You can send a few emails confirming that you have received an order, as well as following up to request the customer leave some feedback.
There are tons of practices for email marketing out there, but it's important to send no more than two or three emails. One during the order confirmation phase and another a few weeks after receiving your product, so that customer doesn't get flooded with messages from different companies all at once.
You can avoid making your emails feel too “spammy” and give customers an outlet to share negative feedback directly with you by using services such as Feedback Five or Feedback Genius. These automated platforms will help make life easier for both businesses, who want their reputation maintained online; consumers looking out for themselves when it comes time post-purchase review (whether good/bad); plus anyone else involved in any way.
Run sponsored product ads
You can promote your product on Amazon with the help of an ad platform.
Unlike other forms of advertising, such as print or radio spots that have been around for decades and are still popular today in certain formats; Pay per click (PPC) offers advertisers new ways to reach their target audiences through mobile devices. Placements on the desktop format could be placed above, to the side, or below search results.
When running Amazon PPC ads, there are three things to keep in mind:
One: Start with automatic targeting. This allows Amazon to use its powerful search algorithms. You'll get the most relevant keywords for your products without spending hours trying out different variations on bid amounts or picking flat-out winners across all categories. The goal here is just getting some data about which ones perform best in terms of revenue per visitor/lead!
Two: This is where you can take your campaign to the next level. Once there's enough data for at least a few weeks, start evaluating what keywords performed best in automatic targeting and which ones didn't work so well. Next, transition those over into manual campaigns where their performance will be more relevant than ever before. With this type of strategy, there's no limit on how much bid adjustments may change outcomes depending solely on specific words or phrases – it all depends upon how much time each customer spends browsing various products online.
Three: Continue to refine your keywords and bids to improve the success of your ad campaign. Data should be used as a foundation for making decisions about where you want the ad space concerning other brands or products. If it doesn't seem like enough information has been generated yet, then test different bid amounts until something feels right.
There are a lot of tools out there to help you create long-tail keywords, but if you start with the above list it'll get you started without being overwhelmed or requiring lots more employees. You can always take these steps further depending on what resources/time constraints exist for your business – but at least this is one way that should get things moving.
Note: The most effective way to improve your website's conversion rate is to pay attention and make sure you're using all of your keyword phrases. For example, if “locally produced” has been converting well then make sure it's in one or more titles within each detail page as well.
Take advantage of promotions
Promotions including Lightning Deals are a great way to sell units at an increased velocity, ultimately leading and more reviews. These flash sales happen on the Amazon Deal Page – one of Amazon's most frequently visited pages.
With a flash sale, you can increase your product's discoverability and sales during a limited period. You may also see increased rankings in search results due to more customers looking at it early on for their Deals of The Day or other promotions that come up around this type of event.
The See All Recommendations section on your Seller Central screen is where you can run a Lightning Deal for most sellers. These deals are invite-only, meaning that they only show up when someone goes to see what's available and there may be an additional cost associated with running this promotion type.
Large-scale events like Prime Day and during the holidays, Lightning Deals can be very successful in selling hundreds or even thousands of units within a few hours. This is because they allow new customers to discover your brand without having bought anything yet – which gives them an opportunity for future business.
You can gain additional reviews and build relevancy so other customers find you by sprinkling in promotions at the beginning of your product lifecycle.
When it comes to saving money, there's no better time than the present. That is why Lightning Deals are always happening across many different categories including health and personal care products as well as home appliances – and you can be sure that these deals will sell out quickly.
In addition, this offer has been designed not only for those looking forward to selling units but also for those interested in trial purposes. Trial purposes offer chances being given on winning new customers who might want something else later down the line too.
Drive external traffic
There is a lot of value in promoting your site with ads, but many brands forget about this part or reserve all external channels to point people towards their online store. Amazon listings can also benefit from these tactics, just make sure they're advertised on both social media and across other websites.
There are two different programs to do this, Amazon Associates and the Amazon Influencer Program. The former offers financial incentives for recommending products through your blog or YouTube channel while also earning an affiliate commission on any customer's purchases that come from their custom link. This can be especially lucrative when directed at bloggers who want more exposure in exchange for promoting only certain brands!
You may be familiar with Amazon Associates, as it's a common program for many businesses. However, the new Influencer program developed by them and designed specifically to meet social media influencers' needs has been catching on quickly.
With the rise in competition, being an Amazon seller has become more challenging. But as a brand owner, you can still beat the competition by mastering your Amazon SEO and boosting your product's discoverability.
Win the buy box
When it comes to selling on Amazon, you might have come across the term “buy box.” The idea of a seller having more than one item for sale and being able to take advantage if they're in different markets is simple enough; however, managing them can be much harder.
There is a ton of potential for other sellers to list their offers for ASIN (Amazon's SKU identifier). This means that even if you are the manufacturer, another person could potentially undercut your price and be listed as “the default option” when selling an item through amazon – or win the buy box! The only exception would come with brands who have “brand gating.”
To win the buy box, you need to be professional and knowledgeable about your products. The algorithm for who wins this competition is proprietary but there are some major components: price will have an impact as well as Prime eligibility, and shipping costs when possible. Remember that they're looking at both speedier delivery time along with lower costs; quantity may make a difference too since more items mean better chances at getting chosen by customer's liking what you sell.
A high seller rating can sometimes earn someone their slot right away while other times it takes longer than others because everyone has different opinions on quality goods.
Some products have multiple listings on Amazon, but it can be frustrating for customers to not know which one they should buy. To avoid confusion and increase competition among sellers in your product line. You may want to create a single page with just one listing instead of separate pages under different ASINs.
If you are the manufacturer of your products and own the brand then one of the best things you can do is to enroll in Amazon's brand registry scheme. It's completely free and has a number of benefits.
Your brand is protected
You can sleep at night knowing that no third-party seller can change your product listing (yes that's a thing…). With brand registry, you get the protection that other sellers don't get.
Not only do you have the ability to determine how your product information appears, but you also have complete control over your products’ marketing.
This means that your company effectively gets priority over other sellers. Amazon's Brand Registry system collects all the information surrounding your brand to protect your brand image, products, and trademark.
Whenever you need a little peace of mind, Brand Registry can provide you with the confidence necessary to know that your brand is always looked after with you in control.
Whilst this isn't always the case, brands that have a storefront that can only be connected through Brand Registry often see an increase in their sales. This is mainly because you're seen as an established business that takes the quality of its products seriously.
Better ads placements
With Brand Registry you can make the most of sponsored brands, which is a form of advertising that doesn't allow other sellers to advertise on your listing. You get the buyer's eyeballs on your brand only!
With sponsored brands, you get to place your ads at the top of the results page, above all other listings with up to 3 products along with your logo.
Guaranteed buy box
As touched on above, winning the buy box is really important, but when you have a brand registered you are guaranteed to get the buy box because it's your product. For this alone, I would recommend all brand owners enroll in Brand Registry.
Get your pricing right
Even with the right pricing strategy for your products, finding success on Amazon can be tough. Especially once you add in complexities from competitors and open marketplaces to compete with you as well. But not to worry! Below are some pricing guides to help you power through those challenges:
You can be in trouble if you don't follow the pricing parity clause of your agreement with Amazon. The “general rule” is that both your item price and total sales cost cannot exceed those from other online channels, which includes Shopify sites as well. Make sure to sell at a low enough rate so they won't suspend or ban accounts based on this mandate – but still higher than what people would buy locally since there's no competition.
To get the buy box on Amazon, you may have to compete with other third parties. Fortunately for sellers like yourself who are looking into ways of automating their pricing decisions and making life easier (and less stressful), there is a new repricing tool released by Amazon recently called the Automate Pricing Tool. This handy little program will help save valuable time. It will also help you to achieve the best prices through automated rules such as beating out competitors by 2% until reaching certain floors or limits.
With all of the information that you have just read, here are a few FAQs to keep in mind. Learning about different fees will help ensure your success and maintain high-profit margins on Amazon sales.
Sell on Amazon Fees FAQ
Can anyone sell on Amazon?
Yes anybody can! Some prerequisites are necessary for you to have before setting up your Amazon retailers account. Such as; e-mail address, business address, banking, and credit card info, and your country of operation. It also costs to sell on Amazon UK, how much do you ask? See below for more details.
Do you have to pay to sell on Amazon UK?
Yes, there are per-item fees to sell on amazon UK of £0.75 (ex. VAT) per unit sold or a monthly subscription fee of £25 (ex. VAT). There are a number of things to consider when deciding on which plan to go for, but in general, we recommend going for the professional plan.
Here's the up-to-date breakdown of Amazon's fees so you can make an informed decision.
How much is Amazon's referral commission?
Amazon charges anywhere from 7.14% to 45.9% depending on that category you sell in, and all categories have a minimum referral fee of £0.25.
What are the selling fees on Amazon vs eBay?
Whereas the fees for selling on Amazon could range from £0.75 to £25 depending on your plan and how many items you are deciding to sell through Amazon. eBay in the UK offers several different ways to sell, you can select the “No Shop” option to pay as you sell items that are ideal for smaller sellers. Or you could also select from one of their shop plans which can range from £25/MO to £399/MO.
While selling on Amazon may be a daunting task at first you will find that it is fairly simple to sell products on Amazon, and as outlined above, there are several tips and best practices that will help you walk down the path to becoming a successful seller.
Although having competitive pricing and listing your products with highly searched-for terms or descriptive terms will help buyers find your items will go a long way to helping you reach your targets, that alone won't win the race.
There are several tools that will provide both powerful market insights and help optimize the buying experience for your customers so that you may better tailor your products to the market you are trying to reach, but none of them get close to offering the powerful suite of tools that Helium 10 offers.
It's unrivaled in it's field and will provide you with data that allows you to make informed decisions at every step of the journey.