One of the most asked questions by millions of small and medium entrepreneurs in Mexico and the world is how to sell their products on Amazon. Although it is the largest marketplace in the world, it can be fully exploited by any entrepreneur looking to offer its products to millions of users.
Thanks to its customer service, its speed in shipping, and that it sells all kinds of products at a competitive price, millions of users go directly to Amazon when looking for any product. For this great opportunity that it can represent for your business, we will tell you how to sell on Amazon to boost your business.
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What is Amazon?
Amazon SL (limited company) is a company from the United States and its main market is electronic commerce along with cloud computing services.
Its main headquarters is the city of Seattle, in the state of Washington. Amazon is recognized for being one of the first companies to offer and sell goods on the internet on a large scale and its motto is “From A to Z” (From A to Z), a full refund guarantee that protects the user at any time. purchase of products sold and shipped by a seller within the Amazon network.
Jeff Bezos is the owner and CEO of Amazon, a firm that was born in 1994 and that today has managed to establish itself in markets such as:
- United Kingdom
Thanks to its extensive network, Amazon is able to offer specific products from each of these countries. In other countries where Amazon is also present, it performs technical support functions, such as Costa Rica, since it is there from where it centralizes its attention to customers from all over Latin America, being one of the largest companies in this country by having a workforce of no less than 7,500 employees.
How to Sell on Amazon?
Although Amazon seems like a single and restricted company, the reality is that approximately half of the products sold on the platform are not their own, but rather from third-party companies or entrepreneurs (like you).
Currently, there are 2 types of accounts to register as a seller on Amazon: individual and professional. Each one has its characteristics and conditions.
Amazon Individual Seller Account
This account is focused on people who sell less than 40 products per month and who only want to pay Amazon when they make a sale. This account is ideal if you want to start selling on the platform little by little to test if it works for your business.
By connecting to the central seller, you come across your amazon seller dashboard. Here you will find many features to help you sell more and more products on amazon.
Professional Seller Account
These types of accounts are focused on entrepreneurs who already sell regularly on the Internet (more than 40 products per month).
Unlike the individual profile, with the professional account, you can sell in all Amazon categories, create new products that are not currently in the Amazon list, access more detailed reports on your orders, upload your inventory in an automated way, and have the possibility of getting your products to be bought with a click (a new option on the platform).
Prices to Sell on Amazon
Amazon currently offers a single rate structure made up of a monthly subscription fee and referral fees.
For their part, referral fees are those that sellers pay for each item they sell. Amazon deducts, as a referral fee, a percentage of the total sale price (10% to 15% depending on the category) that includes the total amount paid by the buyer, the price of the item, and any charges for shipping and gift wrapping.
So far, we have only talked about the sale, but the shipping is missing. Amazon on its business page explains that there are two modalities in terms of logistics:
Sold and Shipped by you (MFN)
Your merchandise is offered by your own business in the marketplace and in the same way the shipping logistics is up to you. This model has only a commission price on sale and is intended for merchants who sell to end consumers and have logistics and customer service capabilities.
Sold by you with Amazon Fulfillment (FBA)
Your merchandise is offered by your own business in the marketplace, but the logistics and shipping are the responsibility of Amazon. In this model there is a sales commission and a logistics service cost, so this profile is intended for merchants who sell to end consumers, but do not have logistics and/or customer service capabilities.
Process to Sell on Amazon
Now that you know the Amazon rates, it is time to get down to work and start selling since the process to do so is very simple.
1. What to sell on Amazon?
Although it is very basic, the first step to selling on Amazon is knowing exactly what you are going to offer.
You may already have your business well established, but this step is important because before registering you must do a little search and really see the products that may be interesting for the consumer. If your business offers different types of products, testing that it works is the first step.
The easiest way to see if a product is selling well on Amazon is to go to the category of that type of product and see the list of the best sellers. If the product you want to sell is in the first position, it is a good sign.
2. Create an account in Seller Central
The first thing you should do is register in the Amazon sales center. You must enter data such as a contact number, your personal and bank details.
The first information Amazon will ask you for is your country of origin, type of business, and the name of the owner. Once you enter the data you must click on the “Accept and continue” button.
Once you have accepted, you will enter a page that shows you 5 simple steps:
- Personal information.
In the personal data part, Amazon will ask you for your name, date of birth, and a telephone number to verify the contact.
3. Create your product list
Once you have completed the registration you should start adding your first product. For this, you must go to the “inventory” section and click on “add a product”.
Now Amazon will ask you to look for your product among those that are already sold on the platform. Unless you are selling an item that you made yourself, you probably don’t need to create a new product.
4. Product details on Amazon
You have already located where your products are located, because now it is time to fill in the information fields such as the title, brand, weight, color, etc.
At the end of the guide, we will give you a series of tips and tricks so that you complete all the information well so that your product positions in the first results of the Amazon search engine.
Tips for Selling on Amazon
As in your business, there are various practices that sellers usually use within the Amazon platform to be able to sell their products, so we leave you three tips that will be very useful.
Upload good photos of your products
A fundamental point in the sale of any product is its presentation. It should be your priority to upload the photos of your product in the best quality and create variants such as different angles and even a small explanatory video.
It is very important that you do it well since the graphic section is the first thing the user will notice.
Analyze the Prices and be Competitive
When you are inside Amazon you will be competing with hundreds of entrepreneurs who will seek to attract the attention of the consumer, so you must establish a competitive price for each of your products.
This point is essential because it will directly affect the number of sales you make and the return on investment. Therefore, we recommend that before setting a random price, you take into account the following points:
Analyze your competition: see at what price your competition sells your products or very similar items.
Calculate the costs and benefits: put aside the costs you have when making or obtaining the product and then establish a minimum price at which you would have to sell that product to obtain a profit margin.
Look outside prices: something you should keep in mind is that you not only compete with other sellers within Amazon, you also compete with external sellers who possibly have their own marketplace.
Serve the Customer Well
A crucial point at Amazon and in any business is customer service. Good attention can be the difference between a sale or that nobody trusts your business.
Remember that customer service and quick reaction are rewarded with reviews and ratings. If you take care of answering questions, send the product as quickly as possible, and offer a guarantee, users will rate you with 5 stars, something that will increase the confidence of new consumers.
Read more: Top 7 Amazon Seller Tools For Newbies!