Amazon is an ecommerce giant. It achieved sales revenue of $177.87 millions in 2017 and had a total 562,382,292 products on hand as of Jan 10, 2018. This article will show you how to open an Amazon store and how to set up Amazon fulfillment (FBA). It also gives advice on how to sell on Amazon.
Become an Amazon Seller
You can either open an Amazon seller account as an individual or a business to start your own store. A business account charges a monthly subscription fee, but has a different selling fee structure than individual sellers. This allows anyone who sells in large quantities to save money by selling on Amazon.
UK sellers can sign up for a seller membership through Amazon. It costs PS25 (around $30/AU$42 per month), excluding VAT.
If you are willing to handle international postage, customs, and duty issues, you can sell on Amazon UK only or on all five primary European Amazon marketplaces. After paying the monthly membership fee, selling fees will be applied. Individual sellers can sign up for no subscription fees if they plan to sell less than 35 items per month. Each item is sold for PS0.75 and the seller pays only when it sells.
A subscription fee for a seller in the US is $39.99 per month plus selling fees. Individual sellers selling less than 40 products per month will pay $0.99 per sales plus selling fees.
Fulfillment by Amazon
Fulfillment by Amazon (FBA), takes the fulfillment responsibility off of retailers looking to open an Amazon store. Amazon stores your products and does all the packing, shipping, and picking up.
Amazon sellers who use Amazon’s fulfillment services must pay a stocking fee for each item they want to sell. Depending on the size of an item, this fee could range from 60p up to more than PS4.50. Additional storage fees may be added to this.
FBA is not the most affordable service, but it’s growing quickly. This hidden benefit should be known before you open an Amazon store. Your potential customers are more likely to buy an Amazon product.
Fulfillment by Amazon makes your products Prime-eligible. Prime members are more likely to purchase a product via FBA as they are assured that the item will arrive within two days. Customers who aren’t Prime members are more likely than others to trust Amazon-filled products. Amazon delivery is trusted by customers. Prime customers know that they will not be charged additional shipping fees for a combined order. These two factors are extremely powerful in increasing Amazon sales.
Fulfillment by Amazon is an excellent opportunity for businesses who want to open Amazon stores. It makes it easy to grow your business without worrying about logistics such as warehouses, shipping materials, and couriers.
Find What to Sell
Private labeling is the most popular way to sell on Amazon. It allows you to create your brand and apply it to your product before it is sold on Amazon. Private label products can be expensive to order. However, if you are looking to create an asset that can be sold later, this is the right direction to take
It is essential to research Amazon products before you open an Amazon store. Also, it is vital to find out the popularity of the category that you are trying to sell.
Amazon’s Seller App is free and provides details about the selling price, fees, and other details for every product on their website.
Look at the reviews of products that are already on Amazon. You’ll find a product customers love that you can improve or sell at a lower price.
Amazon prefers stable sellers that have stock, healthy inventory, and can keep up to the demand created by winning the Buy Box. You can’t make any money if there aren’t products in stock. The time between placing an order and receiving it must be as quick as possible. Amazon’s success depends on reliable suppliers.
Start to Scale your Amazon Store
- Your Best Sellers rank can be improved. BSR is a key metric for your customers as well as your sales. If you are looking to sell your business, this is a crucial metric. Prospective buyers want to see consistent growth in your BSR rank over the years.
- Expand your product range. Each new product you offer will require extensive research. You can reduce your risk of your company becoming dependent on one product.
- Your brand page. You will need to create a professional site to promote your business on Amazon as you expand your private label product ranges. This will allow you to market your products in a different way and make your business more attractive to potential customers. Frooition designs custom Amazon stores for sellers who are part of the Amazon brand registry.
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