Yes Amazon’s track record is very inspiring but you may be thinking ‘What’s in it for me?’ Well, if you are looking for an option to get started with an online business or have an online channel to sell your current products, Amazon may just fit the bill!
The Number 1 Online Retailer
If you are online, the chances are, you’ve heard of Amazon? Amazon was founded by Jeff Bezos in 1995 and first started selling books and CDs. Since then, the online retailer has come a very long way and now sells almost anything you can think of. It offers, electronics, hair accessories, stationary, toys, pet food and even groceries.
The company that began in a garage of Jeff Bezo’s rented home has now become established in several countries and is a leading online retailer. At the same time, it has developed into on online business opportunity for entrepreneurs.
Getting started with Selling on Amazon:
There are several ways you can leverage the power of Amazon and generate an income.
Selling other people’s products on Amazon
By Becoming an Amazon Associate. Essentially, this is affiliate marketing where you get a link for a product and send this to your list, add to your blog or website and when someone makes a purchase, you receive a commission. The maximum commission is 10% and if anything else is bought in that transaction, this adds to your commission.
Whilst that is a route, this does rely on having an audience (or building one?) and the advantage is that you don’t need to have a product of your own.
Selling your OWN products on Amazon
If you want to sell products online, there are a number of ways to source products. For example, retail arbitrage (online or bricks and mortar stores), buying from a wholesaler, second-hand and liquidation/ surplus stores.
We recommend becoming a product owner.
This means having a product you have the sole rights to sell or own the product outright. Using this method, you can develop a brand using private labelling.
This gives you the opportunity to scale up and differentiate your product. You can scale up by offering similar products.
Fulfilment By Amazon (FBA)
Having your own products and combining this with the Amazon FBA is our recommended route for a successful business on Amazon. Fulfilment by Amazon (FBA) means that Amazon handles all the shipping and customer service.
You concentrate on all aspects of finding, developing and refining your product offering and boosting sales. Using Amazon FBA means that your products are available for two day shipping with Prime Customers and free shipping. The costs of this is £25 +VAT month plus selling fees.
Fulfilment by Merchant (FBM)
If you would prefer to send the items to customers and deal with returns, you can go for the Fulfilment by Merchant (FBM) option. This is a way to start out if you plan on selling less than 40 items a month.
There are no subscription fees and the selling fees are £0.75 per item plus selling and shipping fees. Using this option, requires joining as an individual aseller.
The good thing about Amazon is you can always upgrade to FBA when you are ready!
How do I select Products to Sell on Amazon?
If you don’t have a product, we can show you how to select a product to sell on Amazon. There are a number of things to consider and you must avoid the items on Amazon’s restricted list such as Tobacco & Tobacco-Related Products, Recalled Products, Hoverboards and other items.
That still leaves a lot of products to select from…..
We go through a list on how to select an item on our Amazon Mastery Course. This goes through the characteristics of items, how to select bestsellers and there are worked examples to show you how this is done.
Through our experience, we have developed a list of 26 recommend product categories to help get you started Rather than going through trial and error, our course will explain how you can make the right choice, saving you time and money.
Costs and Profitability
On the Amazon Mastery Course, we show you how to calculate the profitability of the item based on your costs and Amazon fees with a real example.
Amazon has a number of fees:
- Per-item Fees
This costs depends on your account. An individual seller it is £0.75 (per item sold) and for a professional seller there isn’t a per item fee but there is a monthly subscription.
- Referral fees
Sellers pay a referral fee on each item sold and this varies depending on the category but typically ranges from 12-15% in most categories.
- Variable Closing Fees
This fee applies to items in the media category.
When you send out the product (fulfil), there are also shipping rates to pay which is based on the product category and shipping service selected by the buyer. This applies to individual sellers.
And there are also storage fees which range from 0.48 – 2.40 per cubit foot. The variation depends on the size (standard or oversize) and time of year.
Finding the right supplier for your Amazon Business
We show you how to search and find the right supplier for your product – both in the UK and abroad. Shipping goods from abroad does not have to be complicated and we take the mystery out of this.
We have a supplier checklist because we know that working with the right supplier has a direct link with you customer experience and therefore your ratings on Amazon.
Great Amazon ratings and reviews are one of the most important factors on purchase decision of Amazon customers.
You’ve done all the hard work on selecting a product and supplier, the next step is to make sure the product listing captures the attention of potential buyers.
On the Amazon Mastery Course, you will learn how to list your products on Amazon with the right images, titles, benefits and description.
A picture paints a thousand words and we have some image tips to help your product stand out from the crowd!
Using the right tools in Your Amazon Business
There are a range of tools available on the market to help support your Amazon business. We have used a set a tools that have been proven to work with an Amazon business. Use our recommendations to help your business succeed on Amazon.
To super charge your Amazon Business, we ALSO show you advanced strategies on
- How to use keyword search terms and analyse your page
- Deal with barriers to purchase
- An Online Amazon Toolkit which teaches you how to send your goods to Amazon FBA
- How to boost sales with reviews and ranking
- Learn how to use Amazon Sponsored Ads
An Established Route for Making Money Online
Selling on Amazon is a well-established route to running an online business and you may be thinking the market is saturated. There are ways of competing with established sellers and our course gives you gives you the know-how do this. To become success, no prior experience is needed just an open mind and willingness to take action.
With our course, you will learn the foundations though to more advanced techniques and take your business to the level you want to achieve.
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