This week, we had a great conversation with Randy Stocklin on our podcast. Randy is an e-commerce expert who co-founded One Click Ventures, which owns three large e-retailers in the eyeglass industry. One topic we touched on was the importance of selling on Amazon.
With its incredible reach, Amazon should never be dismissed as a means of selling and distributing of any of your products. The volume of Amazon buyers far outweighs the disadvantage of not owning a relationship with your customer. Amazon attracts over 150 million visitors a month.
The key is to use guides such as this one to learn as much as possible, beat your competition, and avoid wasting money on silly mistakes. The market is really competitive, and the more you know, the better equipped you’ll be to win over the competition.
Ron Dod, Visiture
Visiture is an eCommerce Search Marketing Agency, and they’ve put together an in-depth article with just about every detail you need to decide how you’re going to sell on Amazon, the critical decisions you need to make, and how to get started:
- Amazon Selling Plan – determine whether you want to be an individual seller or a professional seller.
- Amazon Seller Fees – fulfillment, shipping, closing, and referral fees may all be applied when selling on Amazon.
- Fulfillment – Fulfillment by Amazon (FBA) or Merchant Network Fulfillment (MFN) are options for getting your products from the warehouse to the doorstep.
- Select Your Products – You may not want your entire inventory on Amazon, so details are provided on selecting the best products you want.
- Setup Your Products – It’s one thing to publish a product and another to get it to show up in searches and get great sales.
Amazon offers a lucrative platform for those seeking to enhance their income or elevate their existing eCommerce sales. The potential earnings range from a modest sum to a substantial six-figure income, contingent on your dedication and strategic approach to Amazon’s marketplace. A diverse range of products, from second-hand items to health supplements, finds its audience here.
Starting on Amazon: Simplified and Efficient
For newcomers, Amazon’s accessible entry point and streamlined setup are advantageous, especially compared to the complexity and expense of establishing traditional eCommerce stores. Success hinges on market understanding, selecting the right product, and optimizing product data. This guide provides insights and strategies to outpace competitors and avoid costly errors in a highly competitive market.
Choosing Your Amazon Selling Plan
Amazon presents two primary selling plans: individual and professional.
- Individual Seller Plan: Suited for initial trials, this plan incurs a fee of $0.99 per item sold and is ideal for low-volume sellers. It’s limited in features like bulk uploads and advanced analytics.
- Professional Seller Plan: With a $39.99 monthly subscription and no per-item fee, this plan is recommended for sellers targeting over 40 sales per month. It offers advantages like eligibility for the Buy Box, bulk uploads, third-party integrations, and comprehensive reporting tools.
Understanding Amazon’s Fee Structure
Selling on Amazon involves various fees, including shipping, referral, and variable closing fees. For Fulfillment by Amazon (FBA) users, additional charges apply.
- Shipping Fees: These vary based on product category and shipping service.
- Referral Fees: Charged per sale, these fees differ between media and non-media products and vary across categories.
- Variable Closing Fees: These are contingent on the product category and shipping service.
Leveraging Fulfillment by Amazon (FBA)
FBA offers significant advantages, such as eligibility for free 2-day shipping for Prime members and handling of order fulfillment and returns. However, it’s essential to consider the additional fees and the impact on inventory turnover and profit margins.
Finding Profitable Products for Amazon
Selecting the right products is critical. Tools like Google Keyword Planner and Merchant Words assist in identifying high-demand products. Consider weight, durability, and market demand to ensure profitability and minimize returns.
Setting Up Successful Product Listings on Amazon
Effective product listings are key to attracting customers. Elements to focus on include:
- Product Title: Clear, descriptive titles differentiate your product.
- Bullet Points and Product Description: Highlight features, benefits, and use cases.
- Search Terms: Use relevant keywords for better visibility.
- Images: High-quality images following Amazon’s guidelines.
Success on Amazon requires understanding its selling plans, fee structure, and the intricacies of product selection and listing optimization. This guide is a roadmap to navigate these aspects effectively, positioning you for success in the competitive Amazon marketplace.
