How to Become a Successful Amazon Seller

Are you looking to start your own business and tap into the world of ecommerce? Becoming an Amazon seller could be your ticket to success. With millions of customers worldwide, Amazon provides an enormous platform for reaching potential buyers. With that in mind, we've put together an Amazon seller how to, where we'll take you through the step-by-step process of becoming an Amazon seller so you can start selling online, today.

Amazon seller central account: an introduction

An Amazon seller account allows you to list and sell products on Amazon's vast marketplace. There are two types of seller accounts: an individual account and a professional account. An individual seller account is ideal for beginners and those who plan to sell just a few items, while a professional seller account is suitable for those looking to sell in bulk and access additional tools and features.

Create an Amazon seller account

Creating an Amazon seller account involves several steps. Here's a general outline of the process:

• Preparation: Before you start, make sure you have the necessary information and documents ready. This includes your business information, tax identification number, bank account details, and product details.
• Sign up: Visit the Amazon Seller Central website and click on the 'Register now' button. You'll need to provide your email address and create a password.
• Choose account type: Amazon offers two main account types: Individual and Professional. Choose the one that suits your needs.
• Individual account: Suitable for those who plan to sell a limited number of items. There's a per-item fee in addition to referral fees.
• Professional account: Geared towards high-volume sellers. You pay a monthly subscription fee but don't have to pay per-item fees.
• Business information: Provide your business name, address, and contact information. You might need to provide a valid credit card to verify your identity.
• Product category selection: Select the product categories you plan to sell in. Different categories might have different requirements and fees, so make sure to choose the most relevant ones.
• Product details: Provide information about the products you plan to sell. This includes product names, descriptions, and relevant images.
• Shipping settings: Set up your shipping options. You can choose between Amazon's fulfillment services (Fulfillment by Amazon) or handle shipping yourself (Merchant Fulfillment).
• Bank account setup: Provide your bank account details for receiving payments from Amazon.
• Tax information: Depending on your location and Amazon's requirements, you might need to provide tax-related information. This could include your VAT identification number and other relevant details.
• Verify identity: Amazon might require additional identity verification steps, such as confirming your phone number via SMS or providing additional documents.
• Agree to terms: Read and agree to Amazon's terms of service and seller agreement.
• Confirmation and access: Once you've completed all the steps, Amazon will review your information. This process might take a little time. Once approved, you'll have access to your Amazon Seller Central dashboard.

Start selling with the right plan

Choosing the right selling plan on Amazon depends on your business goals, the number of products you plan to sell, and your budget. Amazon offers two main selling price plans for individuals and businesses: the Individual Selling Plan and the Professional Selling Plan. Here's how to choose the right plan for you:

Individual seller account

Suitable for: If you plan to sell only a few items per month.

Monthly fee: There's no monthly subscription fee for this plan.

Per-item fee: You'll be charged a fee for each item you can sell on Amazon, in addition to referral fees and other applicable fees.

Features: This plan is more suitable for casual or occasional sellers. You won't have access to advanced selling tools, reports, and features available to Professional plan sellers.

Professional seller account

Suitable for: If you plan to sell more than 40 items per month or want to access advanced selling features and tools.

Monthly fee: There's a monthly subscription fee of $39.99.

Per-item fee: You don't pay per-item fees for individual sales, but you'll still be subject to referral fees and other applicable fees.

Features: This plan provides more tools for managing and growing your business, including bulk listing and inventory tools, custom shipping rates, access to promotional tools, and more.

Consider your selling strategy

With its massive customer base and efficient logistics network, Amazon provides a platform for reaching a global audience with relative ease. However, success on Amazon doesn't come solely from listing your products; it requires a well-thought-out selling strategy to generate sales. So, before getting started, determine what that strategy is going to be:

Decide what to sell

Choosing the right products to sell is the foundation of your Amazon business. To make informed decisions, consider these factors:

Market research: Conduct thorough research to identify trending and in-demand products. Tools like Amazon's Best Sellers Rank, Google Trends, and industry reports can provide valuable insights.

Niche selection: It's often beneficial to specialize in a niche market. Focusing on a specific product category allows you to cater to a dedicated audience and become an authority in that space.

Competition analysis: Evaluate your potential competitors. Are there established sellers with high ratings? Is the market saturated? Assessing the competition helps you identify gaps you can fill or unique selling propositions you can offer.

Profit margin: Calculate the potential profit margins for your chosen products. Factor in manufacturing costs, shipping, Amazon fees, and other expenses to ensure you can maintain healthy profitability.

Product differentiation: Consider how you can make your products stand out. Whether it's through superior quality, unique features, branding, or bundling, differentiation helps attract customers and minimize price-based competition.

Source your products

Once you've decided on the products to sell, sourcing them efficiently and reliably is the next crucial step. Here's what to keep in mind:

Supplier research: Whether you're manufacturing your own products or sourcing them from suppliers, research is key. Check the reputation, reliability, and quality of potential suppliers. Utilize platforms like Alibaba, Thomasnet, or trade shows to find suitable partners.

Quality control: Ensure that the products you source meet high standards of quality. A few bad reviews due to a subpar product can seriously dent your credibility and sales.

Order fulfillment: Decide whether you'll be using Amazon's fulfillment services (Fulfillment by Amazon, or FBA) or handling shipping yourself (Fulfillment by Merchant, or FBM). Each option has its pros and cons, so consider your business's scale and logistical capabilities.

Shipping and logistics: Work out the logistics of getting your products to Amazon's fulfillment centers (if using FBA) or to customers (if opting for FBM). This involves choosing the right shipping methods, managing customs procedures for international shipments, and optimizing transit times.

Inventory management: Striking the right balance between having enough inventory to meet demand and avoiding excess stock is crucial. Stockouts can lead to missed sales, while excess inventory ties up capital.

Choose which fulfillment method you'll use

Choosing the right Amazon fulfillment method for your business is a crucial decision that can impact your operational efficiency, customer satisfaction, and overall success. Amazon offers two main fulfillment methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

Fulfillment by Amazon (FBA)

FBA involves sending your products to Amazon's fulfillment centers, where they store, pack, and ship the items to customers on your behalf.

Pros:

• Prime eligibility: FBA products are eligible for Amazon Prime, which can attract more customers due to the fast and free shipping options.
• Customer trust: Amazon's renowned customer service and efficient shipping can build trust with customers.
• Scalability: Amazon handles inventory storage, packing, and shipping, allowing you to focus on growing your business.
• Multi-channel fulfillment: You can use FBA to fulfill orders from other sales channels, like your website.
• Global reach: FBA provides international shipping options, expanding your customer base.

Cons:

• Fees: FBA charges fees for storage, order fulfillment, and other services.
• Less control: You have limited control over the packing and shipping process, which could impact branding and customer experience.
• Long-term storage fees: If your products don't sell quickly, you might incur additional fees.

Fulfillment by Merchant (FBM)

FBM involves fulfilling orders directly from your own inventory using your preferred shipping methods. You retain control over the entire fulfillment process.

Pros:

• Cost control: FBM often has lower fulfillment fees compared to FBA, making it cost-effective for low-volume or large items.
• Shipping control: You have more control over packaging, branding, and shipping methods.
• Inventory control: You can manage your own inventory and avoid storage fees.

Cons:

• Lack of Prime eligibility: FBM products aren't automatically Prime eligible, which could impact visibility and customer trust.
• Shipping responsibility: You're responsible for timely and accurate shipping, which might be challenging during peak seasons.
• Limited reach: FBM might not offer the same international shipping options as FBA.

Go mobile

To manage their business on the go, Amazon sellers should download the Amazon Seller App. This app serves as a versatile tool that empowers sellers to stay connected with their businesses 24/7.

Sellers can effortlessly oversee their sales performance in real-time. Detailed analytics and sales data are presented in a user-friendly manner, allowing sellers to gain insights into their business trends and make informed decisions, wherever and whenever.

The app also allows for seamless communication with customers. Inquiries and feedback from customers can be promptly addressed, enhancing customer satisfaction and loyalty, ultimately translating to increased brand credibility and repeat business.

Another benefit of the Amazon Seller App is that it enables sellers to make instant updates to their product listings. Whether it's adjusting prices, updating product descriptions, or managing inventory levels, Amazon sellers can maintain accurate and up-to-date information with ease.

Adding your products

Your success as a seller depends on creating appealing listings for products that customers actually want. Here are a few things to consider when choosing your products and putting together your product listings:

How to find products to sell on Amazon

Niche research

Look for niches that are in demand but have less competition. Start by identifying your interests, passions, and areas of expertise. Research potential niches using Amazon's search bar and pay attention to customer reviews to understand pain points and preferences.

Trending products

Search for products that are currently popular or experiencing a surge in demand. Keep an eye on seasonal trends, upcoming holidays, and emerging technologies. Monitor social media platforms, online forums, and news sources to identify products gaining traction. Explore Amazon's 'Best Sellers' and 'Movers & Shakers' sections for insights into what's currently popular.

Product listing details

High-quality photos

The quality of your product photos can significantly influence a buyer's decision, so be sure to include clear images of your items from multiple angles, showcasing their features and details. Clear, well-lit images create a sense of trust and transparency, enabling customers to visualize the product before making a purchase.

Detailed descriptions

Write accurate and compelling product descriptions that highlight the product's key features, dimensions, materials, and any unique selling points. Be concise yet thorough, ensuring that customers have all the information they need to make an informed choice. Make sure to address potential questions customers might have and emphasize the benefits of your product.

Pricing

Set competitive prices based on market research. Keep in mind factors like production costs, shipping fees, and Amazon's referral fees. Pricing too high could discourage buyers, while pricing too low might raise questions about your product's quality.

Keywords

Effective use of keywords is vital for your product's discoverability on Amazon's vast marketplace. Conduct thorough keyword research to identify relevant and high-traffic terms related to your product and add them to your titles and descriptions to improve visibility in search results.

Attracting customers

Once your products are listed, focus on attracting customers to your store:

Provide fast shipping

Customers value quick delivery. If using FBA, Amazon will handle this for you. If using FBM, ensure your shipping process is efficient.

Advertise your offers

Utilize Amazon's advertising options to increase your product's visibility. 'Sponsored Products' and 'Sponsored Brands' can help you reach potential customers.

Set competitive prices

Research your competitors' prices and adjust yours accordingly. Offering competitive prices can attract more buyers.

Get customer reviews

Positive reviews build trust and credibility. Provide excellent customer service and encourage buyers to leave reviews.

Build a strong brand

Finally, once everything else is in place, you need to focus on building your brand to differentiate your business from others on Amazon. Develop a strong brand identity with a compelling logo, professional packaging, and consistent messaging across your product listings. Encourage positive customer reviews and provide exceptional customer service to build trust and loyalty. Consider registering your brand with Amazon's Brand Registry to gain access to additional benefits and protection.

Conclusion

Becoming an Amazon seller is an exciting journey that offers vast opportunities. By following this comprehensive guide, you'll be well-equipped to navigate the process, make informed decisions, and build a successful online business.

Remember, patience and persistence are key as you work towards establishing a strong presence in the competitive world of Amazon sellers.

Do you need help with your VAT compliance? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers.