The world has become digital and the retail sector is no exception to this reality. In a context of dematerialization of exchanges, consumers have an increasing tendency to do their shopping on the internet. To reap the benefits of this new channel, you need to be there as well.
Several sales places are open, each with its advantages and challenges. In this competitive environment, one of the most lucrative and highly rated remains and remains Amazon. In this article, we’ll walk you through the reasons why you should get started selling on Amazon.
The advantages offered by this platform are numerous. Three main ones should inspire you to commit to it:
Amazon has such a reputation that its platform registers more than a million visitors per day. By placing your products on such a platform, you greatly increase their chances of being noticed and their likelihood of being purchased faster than if they were presented only on your own website.
The possibility of sponsoring your products
In order to stand out from the thousands of sellers on the platform, Amazon offers you a sponsorship service. This allows, through targeted keywords, to increase the visibility of your products. User feedback shows that this option effectively boosts sales and maximizes return on investment.
Support for the shipment of your products by Amazon
Shipping orders is often a big challenge for sellers, especially if the structure is small. With the “Fulfilled by Amazon” service, no more hassle. You send your products to an Amazon fulfillment center and they do the rest. Even in the event of a sale on your website, this service remains available to allow you to optimize your costs.
How is it possible to sell on Amazon?
To start selling on Amazon supposes to register on the platform, that is to say to create a seller account. However, this crucial step depends on several important decisions, including what you are going to sell (the category of products you are going to offer) and your sales plan (professional or private). Once the account is created, you register your products to make them available to any interested buyer.
Sell as an individual
This type of account corresponds to sellers who only have a few items, and whose sales expectations are less than 40 items per month. There is no monthly subscription fee and you are only charged the sales fee on items sold. They are 0.99 euros per item.
Sell as a professional
This type of account is suitable for sellers who intend to exceed the 40 items per month mark. A monthly subscription fee of 39 euros excluding tax is required. This tariff plan gives the right to advantages such as:
- “Sell in all Amazon product categories”: it helps boost product profitability
- “Order reports”: they ensure better monitoring of activity
Sell as a self-employed person
The status of auto-entrepreneur gives you tax advantages in France, but limits the turnover to 81,500 euros. This is an intermediate stage allowing the seller to test the viability of his activity without bearing heavy structural loads. On Amazon, as a self-entrepreneur, you will start your sales with a specific type of account.
Is it better to sell new or used products?
You should know that both types of products are accepted on Amazon. If you are a business, you certainly have new products in your inventory. Individuals looking to supplement their end of the month can often put second-hand products up for sale. However, the quality of the products offered for sale must be acceptable according to Amazon’s standards to be referenced on its platform.
Why shouldn’t fees be a drag on selling?
Depending on your sales plan, you incur costs for your products on the platform. However, these should be analyzed in the light of the financial benefits and time-on-sale benefit provided by Amazon. You will then realize that if you are selling products that are in high demand, the profits generated from your merchandise will totally eclipse the costs associated with the sales, whether per item or monthly.
What should I know about Amazon FBA sales?
Amazon FBA means “Fulfillment By Amazon” or “Fulfilled by Amazon” is the delivery service provided by Amazon for products sold on its platform. Its subscription is at the seller’s choice. Just select the products to go FBA and ship them to an Amazon fulfillment center. Amazon takes care of the rest. You are only billed for storage costs, around 0.01 euro per product and per month.
How to choose the products to sell?
Selling on Amazon is subject to many criteria that ensure the quality of your products and customer satisfaction. In order to boost your competitiveness, the platform offers you several tools allowing you to choose the best products to sell. This is the “Sales Coach” service that informs you about sales opportunities and the most requested products.
However, you will need to choose your industry to receive personalized notifications. Specialized sections also exist on the platform to present the most popular products and guide your sales choices.
How does the logistics work?
Once the products have been ordered, they are prepared, packaged and shipped to the end customer by Amazon’s specialist services. Refund and return requests are also the responsibility of Amazon. Overall, Amazon FBA relieves you of all actions related to the logistics of your products.
What tools are at my disposal?
A multitude of tools are offered by Amazon to help you manage your sales. Some may be chargeable. It is therefore important to carefully analyze their necessity so as not to spend unnecessarily in the end. Amazon FBA offers:
- For product research and sales estimation: Egrow
- To find the best product ideas to sell: Jungle Scout
- For keyword research: Adword
- For the auto-responder function and sending invoices: Amz cockpit
- For the calculation of margins: HelloProfit
Ultimately, Amazon is a very beneficial platform for any seller. Everything has been put in place to facilitate trade.