The majority of sales on Amazon are made by independent sellers, mostly small and medium-sized businesses. Just about anyone can become an Amazon seller. Amazon offers two different sales plans, with different pricing and different types of services. They charge a referral fee on each sale, and also fees for optional services, such as advertising. However, they also provide free information for sellers on how to put together a successful online business.
How to become a seller on Amazon.
To become an Amazon seller, you need to be a resident of one of the countries listed on the registration website. This list includes most of the countries in the world. You also need a valid phone number and an international credit card. There are also a variety of requirements that vary by country.
Create your business plan.
It’s best to have a detailed business plan before you start to sell on Amazon. Your business plan should include details about the items you plan to offer for sale, how you intend to source those products, and your financial projections.
Find a niche market.
You can find just about everything for sale on Amazon, but some types of products are more popular than others. In 2022, the top five categories for independent sellers were health and personal care, home, beauty, groceries, and apparel. On one hand, these categories attract the most buyers, but on the other hand, they generate the highest competition. Finding a niche requires market research and probably an element of trial and error.
Secure a product supplier.
You can either hire a manufacturer to produce items or buy products that are already being produced by a wholesaler. Working with a wholesaler is probably the easiest as you don’t have to deal with product development unless, of course, you plan to offer unique products for sale. Ordering from a supplier becomes easier as you learn more about the fluctuations in demand for your products.
Create an Amazon Seller account.
Amazon offers individual and professional seller accounts. The main difference between the two is their fee structure, but professional accounts also offer some extra services. To open an account, you must supply your email address, banking details, credit card number, national ID number, tax information, and phone number. There are also specific registration requirements which vary from country to country. Amazon charges a referral fee on each sale which is a percentage of the sales price and varies according to the product. Finally, there are advertising fees.
Create your Amazon product listing.
To sell on Amazon, you must create a listing for your products, using the portal “Seller Central”. You’ll need to supply a product identifier, a description of the product and its price, shipping options, and certain other details. You can do some things to optimize your listing and attract more attention to it. For example, the title should begin with the name of the product and ideally be about 60 characters long. Items are best described in no more than five simple bullet points.
