The Process Behind How Selling Items on Amazon Works
Amazon is one of the most infamous shopping websites throughout the world. They offer millions of different items and sell everything you could possibly imagine. According to Statista, Amazon sold over $175 billion worth of products in 2017 alone. With the increasing popularity, many people are starting to wonder if they too can start selling products on Amazon. Thankfully, anyone can. Amazon allows about anyone to create a selling account which they can use to list and sell products on Amazon. The downfall is that there’s a lot of competition on the site. Let’s discuss the process behind selling products on Amazon.
The first step is to determine what product to sell. Items need to be in high demand if they are going to sell. They also have to be sold at competitive prices. This product has to stand out to users. A good idea to consider when picking an item is to choose something that is not already available on the site. While this may narrow the options drastically, it is rather smart to do. Online shoppers have a tendency to choose items that are cheap and that most importantly, have good customer ratings. According to HuffPost, “… 84% of people trust online reviews as much as a personal recommendation from someone they know…” Amazon products with no ratings scare customers away. With that being said, buyers have no option but to buy a product if it is the only one of its kind. Long story short, pick a product that isn’t already widely available.
The next step in the process of selling items on Amazon is to determine the means of physically getting the items to sell. Unlike similar shopping sites like eBay, Amazon products are not just a single product and a single listing that disappears after one person buys it. This means, you’re going to have to have a lot of inventory. What a lot of sellers on Amazon do is locate a site that they can purchase the items for a cheap price. There are a bunch of sites out there that offer products at a fraction of the cost that you will find them for on Amazon. So why doesn’t everyone buy it from there? The reason is because these sites often require you to buy the product in bulk. You may have to buy hundreds or even thousands of a single product to get it cheap. But don’t get me wrong, this can be a great investment. Selling items for $5 that you bought for a couple of pennies provides for a great return.
After determining the product itself as well as the manufacturer, it is time to list your item online. Setting up an account is actually quite simple. Unfortunately, there are fees that come with selling on Amazon. As stated on Amazon.com, there are two types of selling accounts. The first type of account is for anyone who plans to sell less than 40 items per month. There is no monthly fee for this account however one must pay around a dollar fee per item that they sell as well as closing fees. The other option of an account is for those who plan to sell more than 40 items per month. Account holders of this type are required to pay $39.99 per month as well as closing fees. Consider these options and decide what account type will work best.
What about shipping? How do sellers on Amazon manage to ship all of the products that they sell? That seems like a bunch of trips to the post office, huh? Thankfully there is a little trick that most Amazon sellers use to make their lives a bit easier. Many sellers do not ever even physically deal with their products. Upon buying their product from the manufacturer, many will chose an option that allows them to have the items shipped directly to the Amazon distribution center upon purchase. This comes in handy for sellers who get hundreds of orders per day.
So hopefully you now understand the process of selling on Amazon. Let’s run through the steps briefly: Pick an item, find a manufacturer, make an account, and begin selling products!