How to Sell on Amazon A Step-by-Step Guide for New Sellers
Selling on Amazon can be a game-changer for anyone looking to start an online business. Whether you’re a small business owner, a hobbyist, or someone exploring new income streams, Amazon offers a vast marketplace with millions of potential customers. But like any venture, selling on Amazon requires careful planning, understanding of the platform, and strategic execution.
This guide will walk you through each step of setting up and optimizing your Amazon store, helping you navigate the complexities with ease. Whether you’re just starting or looking to refine your approach, these steps will set you on the path to success.
Step 1: Understand the Basics of Selling on Amazon
Before diving into the technicalities, it’s essential to understand the two main ways to sell on Amazon:
Individual Seller Account: Ideal for those who plan to sell fewer than 40 items per month. There are no monthly fees, but you’ll pay $0.99 per item sold plus other selling fees.
Professional Seller Account: This is for sellers planning to sell more than 40 items per month. It costs $39.99 per month, regardless of the number of items sold, plus additional selling fees. It also gives access to more advanced selling tools and options.
Choosing the right account type depends on your business goals and sales volume. If you’re unsure, starting with an Individual Seller Account is a good way to test the waters without committing to a monthly fee.
Step 2: Register Your Seller Account
Once you’ve decided on the type of account, the next step is to register as a seller on Amazon. Here’s how:
Sign Up: Go to the Amazon Seller Central website and click on “Start selling.”
Enter Personal Information: Amazon will ask for details like your business name, address, and tax information. Be sure to have your Social Security Number (SSN) or Taxpayer Identification Number (TIN) ready.
Set Up Payment Information: Provide your bank account details so Amazon can transfer payments to you.
Choose Your Selling Plan: Select either the Individual or Professional plan based on your earlier decision.
After completing these steps, your Amazon seller account will be ready for use.
Step 3: Choose What to Sell
One of the most crucial decisions you’ll make as a new seller is what products to offer. Here are some tips to guide your product selection:
Research Demand: Use tools like Jungle Scout or Helium 10 to analyze product demand and competition on Amazon. Look for products with steady demand but lower competition.
Consider Profit Margins: Calculate your costs, including product sourcing, shipping, and Amazon fees, to ensure a healthy profit margin. FBA calculator is the best option to calculate profits for a specific product.
Start with a Niche: Focusing on a specific niche allows you to build expertise and a targeted audience. For example, instead of selling general kitchen gadgets, consider specializing in eco-friendly kitchen tools.
Consider the following factors while product research:
1. High demand 2. Lightweight items(<5lb)
3. Decent profit margins (15-40%)
4. Small items dimensionally
5. Reasonlabe competition
6. Products with a room for improvement
7. Lowseasonality/Perennial Products
8. Nolegal issues
9. Products > 15 dollars
Non seasonal or Perennial product:Product must be non-seasonal which may effective over the year.
No legal problems: Avoid picking up products that have the trademark or legal issues.
A price that is greater than 15 dollars: You can easily increase the ability to make millions of dollars through sales by having a higher price per unit.
Lightweight and small: These types of products tend to generate better sales than the ones that are not. This is due to two reasons- one: lower shipping charges, and two reduced storage.
Room for improvement: If you can choose a product that can perform better than your competitors, then it increases the chances of making more sales.
Enumeration of Amazon product research Requirements:
Product price should be $16-$40
Daily sales =10 units minimum or monthly minimum sales of 300
Best Seller rank must be 5k minimum and maximum 50kbutwecan consider less than 5k inconditional situation if you have a high budget to spend for the product marketing.
Search volume of related keywords almost 50k but we can consider even very low
search volume in suitable situation.
Non-seasonal products Strictly prohibited to sell seasonal products
10 products with less than 50 reviews on the first page
Small and light weight products max.5lb
No brand names or trademarks associated with the product
Profit margin minimum 15% to 40%
Quick and easy product sourcing from China
The product should not be fragile or something which leads to go in dangerous or hazard zone.
Ability to expand your brand with related products
Can make a superior product over similar products in the market
Product encourages recurring purchases
The product should not have any legal issues patent etc
Step 4: Source Your Products
Once you’ve identified the products you want to sell, the next step is sourcing them. There are several ways to do this:
Manufacturing: Create your own products if you have the resources and expertise. This gives you complete control over quality and branding.
Wholesale: Purchase products in bulk from manufacturers or distributors and resell them on Amazon, but this .
Private Labeling: Buy generic products from a manufacturer, then brand and package them under your own label.
Dropshipping: Partner with a supplier who ships products directly to customers on your behalf. This model requires minimal upfront investment but often comes with lower profit margins.
Regardless of your sourcing method, ensure your products meet Amazon’s quality standards and any specific regulations in your category.
Step 5: Create Your Amazon Listing
Your product listing is your storefront on Amazon, so it’s essential to make it as compelling and informative as possible. Here’s how to create an effective listing:
Product Title: Craft a clear, keyword-rich title that describes your product accurately. Include important details like brand name, model, color, and size.
Product Images: High-quality images are crucial. Use multiple images showing your product from different angles, and consider including lifestyle shots to help customers envision using the product.
Product Description: Write a detailed description that highlights the features and benefits of your product. Use bullet points for easy readability, and make sure to address common customer questions.
Keywords: Use relevant keywords in your title, bullet points, and description to improve your product’s visibility in Amazon search results.
Pricing: Set a competitive price. Research similar products to ensure your pricing is attractive while still allowing for a healthy profit margin.
Step 6: Set Up Fulfillment
Amazon offers two primary fulfillment options:
Fulfillment by Amazon (FBA): With FBA, you send your products to Amazon’s warehouses, and they handle storage, packaging, and shipping. This option allows you to take advantage of Amazon’s Prime shipping and customer service, but it comes with additional fees.
Fulfillment by Merchant (FBM): If you prefer to handle shipping and customer service yourself, FBM allows you to do so. This option gives you more control but requires more time and effort.
FBA is often recommended for new sellers as it simplifies logistics and allows you to focus on other aspects of your business.
Step 7: Launch and Promote Your Store
With your products listed and fulfillment set up, it’s time to launch your store. Here are some strategies to promote your products and attract customers:
Amazon Advertising: Invest in Amazon Pay-Per-Click (PPC) ads to increase visibility. Sponsored Product ads are a good for showing products in search results.
Sponsored Brands ads for discoverblity and awareness with custom heading and creatives.
Display ads to outreach off Amazon.
Video ads and TV ads to show your product guidelines of use in lifestyle way.
Social Media Marketing: Leverage social media platforms to promote your products. Share content related to your niche, run contests, and engage with your audience.
Influencer Partnerships: Partner with influencers in your niche to review your products and promote them to their followers.
Step 8: Monitor Performance and Optimize
After launching your store, continuously monitor its performance and make necessary adjustments. Here’s what to focus on:
Sales Data: Track your sales to identify trends and best-selling products. Use this data to adjust your inventory and marketing strategies.
Customer Feedback: Pay close attention to customer reviews and feedback. Address any issues promptly and use feedback to improve your products and services.
Listing Optimization: Regularly update your product listings with new keywords, images, and descriptions to keep them fresh and competitive.
Step 9: Expand Your Business
Once you’ve established a successful store, consider expanding your business by:
Adding New Products: Introduce new products to your store based on customer demand and market trends.
Expanding to Other Markets: Consider selling on other Amazon marketplaces like Amazon UK or Amazon Canada.
Building Your Brand: Focus on building a strong brand identity by offering consistent quality, excellent customer service, and unique products.
Selling on Amazon offers a tremendous opportunity to reach millions of customers worldwide. By following these steps—understanding the basics, choosing the right products, optimizing your listings, and continuously improving—you can build a successful Amazon business. Remember, success on Amazon doesn’t happen overnight, but with persistence, learning, and adaptation, you can thrive in this dynamic marketplace.
Written by AMZ DOC’s Team
