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How to Sell on Amazon for Beginners

With convenience being a trait that the modern-day consumer values, it shouldn’t come as a surprise that more people are using online platforms for shopping.

In fact, 79% of millennials make at least one purchase per month on Amazon. If your business wants to reach out to more consumers, learning how to sell on Amazon is a step in the right direction.

However, selling on the platform can be frustrating if you aren’t well-versed with the basics. Starting the next stage of selling on a trial and error basis might result in you making a few mistakes that might not only turn customers away but also reduce your profit margins.

This article will give you the confidence and know-how to get started the right way.

Here are some basics of selling on Amazon:

Will Your Product Need Amazon’s Approval Before You Can Sell?

Amazon has two product types; those open to all sellers and those whose sale is contingent on approval. The former consists of 20 product categories that you can freely sell on the platform.

As for the latter, which consists of 15 product categories, you should apply for the Professional Selling Plan subscriptions and wait for their approval.

Amazon aims to maintain the quality of the products that need its approval by limiting the number of sellers on its platform.

If you are confident that what you have to offer is at par with their expectations, feel free to request approval.

Once you fill out their application, you can get approved within three business days, or they will ask for more information or improvements from you.

Pick Your Selling Plan Wisely

When selling on Amazon, you can use either of their two selling plans; the professional plan or the individual plan.

Under the individual plan, sellers need to pay $0.99 per sold item, along with referral and variable closing fees. This will be the best plan for you if you plan to sell at most 40 items each month.  

Under the professional plan, you pay $39.99, along with referral and variable closing fees. This will allow you to sell an unlimited number of products.

If your plan is to sell more than 40 items per month, then this might be the best option for you.

Choosing Shipping Options

If you wish, you can always handle all the costs of selling your goods on Amazon, including storage and shipping.

However, there is an upside for leveraging the Fulfillment by Amazon Program (FBA). You will only need to send your goods to an Amazon fulfillment centre. They will handle the storage, packaging and shipping of your products.

Under the program, your products are eligible for customer service and returns, free shipping and Amazon Prime’s free two-day shipping. These perks can boost your customer experience.

In turn, you need to pay an order fulfillment fee and a storage fee. Amazon includes shipping costs in your seller plan, so you won’t have to worry about that.

The Power of Reviews on Amazon

84% of customers perceive online reviews to be just as important as a personal recommendation from a friend. Ideally, reviews can help build brand and product credibility. The more positive reviews you have, the higher your sales will be.

Other than just having positive reviews, the way you respond to the negative ones can have an impact on how your potential customers perceive your business.

Luckily, Amazon allows sellers to ask for reviews from their customers by sending follow-up emails.

You even have the option to automate the process, but you have to stick to Amazon’s strict guidelines. Incentivizing reviews by offering money or discounts is against Amazon’s rules.

Such incentives only help inflate a brand’s average rating, often resulting in misaligned customer experience.

Be sure to craft polite and formal emails to get your much-needed reviews.

Conclusion: How to Sell on Amazon for Beginners

As long as you understand your way around Amazon, you can tap into the ever-growing online marketplace.

Success trickles down to offering unmatched customer experience.

Let’s work together!

Arrange a free Amazon setup consultation today to prop your business up for success.

Prefer to speak with us and learn more about how we can help your business succeed online? Contact our full service eCommerce agency at your convenience, we’re looking forward to speaking with you!

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