Planning to expand your business? Read on to learn how to sell on Amazon by reaching lakhs of customers and increasing your profits considerably.
Shopping online is not an unknown concept for anyone today, be it for Gen Z or millennials. In the last quarter of 2020, e-commerce registered a growth of 36%. The lockdown, which turned into a blessing in disguise, has seriously boosted the e-commerce platforms. With e-commerce being the only way to deliver essentials during the lockdown, the revenue from online platforms rose leaps and bounds and is predicted to double in the upcoming years if you sell on Amazon.
As a seller, you can easily leverage this $70 billion market segment and start selling on Amazon pricing at Amazon, one of the largest e-commerce platforms, in not more than five steps. And to make this even easier for you, we have outlined the steps below.
How To Start Selling On Amazon (With Steps)
The e-commerce giant has made it easier to register yourself as a seller and sell on Amazon India or Amazon Global. Below are the quick steps that you need to follow for selling on Amazon:
- Once you know the product, you need to register yourself as a seller on Amazon. Depending on the type of business you will be operating, you will need several sets of documents. If you’re a sole proprietor, the set of documents needed will be different from that of a Private Limited Company. As soon as you sign up as a seller, upload all the necessary documents and procedures.
- The next step involves listing your products on the portal. To do this, you need to upload your products to the portal. You can quickly go to your Seller Account>Inventory>Add a product to start listing your products. You can either find existing listings or create new listings as per your project. Add all the necessary details about your product like Offers, Description of the product, keywords etc., and you’re good to go.
- The next step involves shipping and fulfilling the orders. With the MFN option, you can start selling as soon as the customer orders your product. You can offer various modes of payment like UPI, as per the limit per day on Amazon. Additionally, you can choose from multiple fulfilment options like Fulfillment by Amazon (FBA), Easy ship and Self-ship.
- Now that you’re up and running, you need to find better ways to market your product to boost profits. You could finally create Product Bundles, Lightning deals, and other offers and ways to increase your sales to become a verified seller. Once that happens, your payment cycle will get reduced to as low as seven days, even for Pay on Delivery orders. Eventually, from selling on Amazon India, you could move on to selling on Amazon global or vice-versa.
Products You Can Sell On Amazon
Before registering yourself to sell on Amazon India or to sell on Amazon global, you need to assess the market demand and understand if your product will sell in the selected demographic. Irrespective of whether you’re new or a seasoned seller foraying into the Indian market from the US market, you need to identify the strategic product categories that will sell in India. It needs to be kept in mind that even if you’re a top seller for Amazon US, it is not guaranteed that the same will be the case for Amazon India. Hence, you need to be extremely confident and firm about your market research. Though you can initially start with one or two products, gradually consider expanding your portfolio of products based on how the market reacts for better profits.
Below are some criteria or tips that will make your journey of finding the right product to sell easier.
- As one of the first steps, look for the top trending categories under the Amazon India Bestsellers and proceed based on your decided type.
- Try to look for products with consistent sales throughout the year rather than only during particular seasons to ensure a steady flow of profits.
- While finding a category is essential, finding a niche within it helps market your product better. Find a niche product with consistent demand.
- Check all necessary details like shipping costs, profit margins, manufacturing costs etc., before starting your business to make an informed decision.
Amazon Charges Per Product
Amazon charges four types of basic fees on your products as listed below:
- Referral fees: This fee starts at 2% and varies from one category to another based on the product category.
- Closing fees: Based primarily on the selling price of the item, it starts at Rs. 2 and varies
- Weight Handling fees: Starts at Rs. 28 per item shipped and varies entirely on the volume and distance for shipping and delivery of the item.
- Other fees: Depending on the program or service and the fulfilment channel opted for. Other charges are levied.
Benefits Of Selling On Amazon
The customer base of Amazon runs in crores, which is a huge opportunity for you as a business to expand and increase sales. Other than that, when you sell at Amazon, you get access to a heap of other benefits unlike its competitors, some of which are below:
- Regular payments: Amazon ensures that its sellers don’t have to wait for long payment cycles for their payment, which is why they get paid every seven days, even for Pay Delivery orders.
- Hassle-free shipping: You can choose from a variety of packages for shipping your product. You can either do it yourself or let Amazon do it for you so that your life remains hassle-free.
- Market your products: You can market your products using targeted ads and pay only when the customers click. You could go global right from the ease of your home by selling on Amazon Global.
- Easier business: Business with Amazon is accessible. With seller support, seller university, help guides and forums, you can access your entire seller dashboard through the Amazon Seller app.
With innate potential and the world turning towards e-commerce for every need today, the timing couldn’t be any better to become a seller on Amazon. With the festive season coming up, partner with other brands, run offers on your products and reap maximum benefits. Happy selling!