There are more than 2 million small businesses, creators, and app developers that sell products on Amazon. It’s a great venue for small businesses, too.
Are you looking at business ideas to start on your own? Selling on Amazon is a viable option. As you can tell, there is a lot of competition.
Knowing how to sell items on Amazon can make all the difference between a business that thrives and one that has to close shop within a year.
Don’t let fear get in your way, just gain the knowledge you need to build a great Amazon business. The first step is easy. Just keep reading to learn how to sell items on Amazon.
1. Do Product Research
Selling products on Amazon doesn’t mean that you pick products because they seem like they’d be fun to sell.
That’s why so many other Amazon businesses fail. They don’t think about what people want or need, they think about themselves.
Product research is at the center of your business. If you have initial ideas for products, you want to validate them.
The easiest way to research products is through keyword research. Use a keyword research tool that’s specific to Amazon.
Look at other sellers selling the same products on Amazon. You might see Amazon sell similar products under its own brand. That’s a good sign there’s enough demand for the product.
Check out Google Trends, too. This will show you long-term data for searches. You’ll be able to tell if a product is seasonal or popular all year.
2. Write A Business Plan
Yes, you need to write a business plan. It doesn’t have to be a long, formal business plan. The business plan is important because you have to understand the risks of selling items on Amazon.
You also have to figure out your selling strategy. You can create your own brand and sell white-label products.
Many people starting out choose a reseller strategy. You sell existing products and list them on Amazon.
The business plan takes you through financial exercises so you know how and when you’ll be profitable.
3. Pick Products And Vendors
You know what you want to sell, you have to find a supplier to get the products. There are platforms like AliExpress and Alibaba for finding suppliers.
If you’re going to white-label products, you’ll need to find a manufacturer.
In both cases, check the minimum order quantity, costs, production capacity, and shipping charges. Narrow down your options and order product samples for quality testing.
Place a small order with your chosen supplier. This is another test of the timeliness and service of the supplier.
4. Register Your Amazon Seller Account
It’s time for the fun part, which is signing up for your Amazon seller account. The Professional plan is $40 a month, plus additional fees for each sale.
The professional plan allows you to advertise and use Amazon’s API. The other decision to make when setting up your account is to sell FBA or if you’ll fulfill orders.
5. Create Product Listings
The product listings are your chance to get found on Amazon and convert sales. It has to be optimized for search and appealing to customers.
Start with the headline. Include the main keyword for your product.
The description should give more details about the product. List the specs, benefits of the product, and use bullet points.
Include plenty of quality images of the product. You can also include images of the product from different angles. This gives consumers a better idea of the product.
6. Choose Tracking Software
As your business grows, you’ll need to find ways to optimize it. Utilize software tools build just for Amazon sellers.
There are tools that help you manage inventory and advertising.
Others are more robust. They tell you how to improve your listings, manage stock, and forecast sales. Learn more about these tools and invest in one for your Amazon business.
7. Get Product Reviews
Product reviews are what get people to decide if they’re going to purchase a product or not. The more positive reviews you have, the higher the conversion rates.
Conversions can jump as high as 270% just from reviews.
That means you have to have a strategy to encourage people to leave reviews. There are a few ways to get more reviews.
The first is to add an insert in product packages that ask people to leave reviews. You can also send follow-up emails after the purchase to ask for feedback.
Social media reminders are another way to encourage reviews. The main thing to know is that you can’t violate Amazon’s terms and conditions.
8. Don’t Forget You’re A Business
Selling on Amazon is easy. It’s so easy that you don’t think you can sell, make money, and enjoy your income.
There’s a lot more to running an Amazon business than that. Did you know that if you’re a third-party seller, you could be held liable if there are injuries from product defects?
Amazon will cover claims under $1000 for sellers. You’re responsible for claims that go over that amount. If you sell more than $10,000 in 30 days, you’ll need a product liability policy.
It’s a good idea to have if you make $10,000 a month or not. If you get sued, you’ll have to pay for litigation costs and damages out of pocket.
It may be a smart decision to start your business as an LLC instead of a sole proprietorship. That’s because you’re personally responsible for lawsuits and damages.
The other business consideration is taxes. You still have to pay them because the IRS considers your sales to be income.
Get yourself set up with an accountant who understands eCommerce sales so you make the appropriate deductions and pay enough in taxes.
How To Sell Items On Amazon
Starting a new business is challenging, but selling products on Amazon make the process a lot easier. Learning how to sell items on Amazon takes time, research, and patience. Follow these steps and you’ll have a successful business in no time.
Be sure to visit the home page of this site for more business insights.