As a business owner, you can’t overlook the potential of Amazon’s vast marketplace. With more than 200 million Prime members and extraordinary brand recognition, Amazon is a major player in online retail. Plus, its easy onboarding process makes it appealing for both new and established entrepreneurs.
This guide will take you through the steps to leverage Amazon as a sales channel. From setting up your store to optimizing your listings, you'll learn how to turn your products into a steady income stream.
Why you should sell on Amazon
1. It’s the biggest online sales channel
Amazon is the biggest online sales channel for any retailer. With nearly two million active Amazon sellers, the site is a powerhouse.
Shoppers often find bestselling items on Amazon first. No wonder 89% of them say they are more likely to buy from Amazon than other ecommerce sites. The massive store carries millions of products in various categories.
Don’t be discouraged by the competition you might face. It’s better to be where your customers are by starting an Amazon business. Don’t let your competitors take all of your potential sales.
2. Amazon is a trusted brand
Amazon is a recognized and trusted brand. Founded in 1994, it has 30 years of relationship and trust building under its belt. If your store lacks brand recognition because it’s relatively new, customers may feel safer buying from Amazon than your store.
By selling products on Amazon through your own store, you can build a great brand image and reputation. Over time, the customers who consistently buy from you may eventually start buying directly from your store.
3. Many people have an account
As mentioned earlier, Amazon has millions of active users. In the US, there are more than 200 million Amazon Prime subscribers. The average Amazon Prime user spends $1,400 a year on Amazon products alone.
Thus, when it comes to ecommerce, Amazon has a huge chunk of market share in the industry. Those with Amazon Prime accounts will likely search on Amazon for items they want, since they have special perks as a member.
It’s important to be where your customers are. If your primary audience is in the US, then selling products on Amazon is worthwhile.
4. Minimal fee
One of the perks of selling on Amazon is that there aren’t any listing fees unless selling as an individual rather than a merchant account. You can add as many products to your Amazon store as you like. With an Amazon Pro Merchant account, you’ll be required to pay $39.99 a month and a percentage of your sale. If you sell a lot of items on Amazon, the selling fee seems minimal.
5. Proven success model
Many of those who sell items on Amazon have achieved big payouts on the platform. About 0.3% of Amazon sellers make more than $100 million in sales on Amazon alone, with 0.6% making more than $50 million. The number may seem small, but $100 million is a lot of money for a brand to make off only one sales channel. With consistent effort and the right selling price, you too can be an Amazon success story.
3 myths of selling on Amazon
1. Amazon’s marketplace is too crowded
While there are thousands of third-party sellers on Amazon, there’s still room for a business like yours to make money.
Even if you can’t compete on price, it’s possible for a potential Amazon customer to choose your product over a competitor or even a supplier.
Don’t add barriers. Even if you make only an additional $10,000 in revenue from selling items on Amazon, that’s still more than you would have made by avoiding it.
2. You can set it and forget it
Oftentimes, entrepreneurs think marketplaces will result in people finding your products on their own. You need to be proactive about generating sales, especially in the beginning.
Start by adding high-quality images and descriptions to your product detail page. Include relevant details that customers would find helpful, such as shipping options or return policies. You can also add customer reviews and include a customer questions and answers section to improve shoppers’ experience.
Once you’ve generated a few sales and received positive reviews, you’ll be more likely to be found organically and get the Amazon Buy Box, which is an Add to Cart section that enables customers to make quick purchases.
3. New products can’t get organic traffic
New products can get organic traffic if your product listings are well optimized.
This means writing an optimized product title, using the right keywords in the description, and adding high-quality images that are in line with Amazon’s terms of service.
Getting these things right will improve your visibility in Amazon search results. And that means more organic traffic for your products.
How to become an Amazon seller in 8 steps
1. Choose what to sell on Amazon
The first step in learning how to sell on Amazon is figuring out what to sell. To get product ideas, you can use a tool like Helium 10 for inspiration.
The tool suggests thousands of items in different categories. Check out the products listed to get ideas for what you can sell on the Amazon marketplace.
You can also review Amazon’s bestsellers page to see what’s currently popular. As Amazon updates this list frequently based on sales data, you can discover the latest trends and bestselling items.
Consider how you might offer a similar product with a unique feature or focus on a niche market that isn’t fully addressed by current top sellers.
2. Decide on your Amazon selling strategy
Depending on what you’re selling and your budget, you might pick one or more of these ways to sell on Amazon:
Dropshipping
With dropshipping, you don’t hold any stock yourself. When a customer buys something, you pass the order to a supplier who ships the product directly to the customer. It’s a low-risk way to start selling on Amazon since you don’t need a lot of upfront investment.
Private labeling
Private-label products are made by someone else but sold under your brand. You choose the design and features, and a manufacturer produces them. Then, you sell these items as your own private label products. This method allows you to have products tailored to your specifications without manufacturing them yourself.
Retail Arbitrage
Retail arbitrage involves buying products at a discount from stores like Best Buy or Target and selling them on Amazon for a profit. You’re looking for sales, discounts, or clearance items, and then you resell them at competitive pricing on Amazon. Success is tied to finding deals and flipping them for a higher price.
White labeling
White labeling involves taking generic products and branding them with your name or logo. You don’t need to design or manufacture anything, just source quality products and market them under your brand. This allows you to sell your own products without getting involved in the creation process.
Choose what fits your style and resources. Whether you’re flipping bargains or building a brand, there’s a strategy that can work for you.
3. Meet the company’s requirements
Before you start selling on Amazon, make sure you’re clear on the rules and know what you’re allowed to sell.
Baby gear, books, pet supplies, and toys are great to start with. But items like hoverboards, fireworks, and weapons are restricted.
Some products need Amazon’s thumbs-up before you can list them. Look over the product rules to be sure you’re following the guidelines.
4. Set up your Amazon seller account
To sell on Amazon, you’ll need to pick a seller plan: individual or professional. Which one depends on how much you plan to sell.
Individual vs. professional seller accounts
With the individual plan, you pay as you go. You get basic tools for listing and managing orders, and it costs 99¢ per sale. If you’re selling fewer than 40 items a month, stick with this. But if you sell more than 40 items, it’s cheaper to switch to the professional plan.
The professional plan costs $39.99 a month. You get extra seller tools and perks like advanced reports and access to global selling programs. It’s better for higher-volume sellers.
Setting up your account
Ready to start? Gather your details:
- Your business email
- Bank account and routing numbers
- Phone number
- Government ID
- Tax info
- An active credit card
Enter these on the Seller Central signup page to get going.
5. Apply for category approval
When working through the process of selling on Amazon, you’ll need to apply for category approval. Some categories require approval from Amazon before they can be added.
Popular categories such as Clothing & Accessories, Shoes, Handbags & Sunglasses, and Jewelry require approval before selling.
6. List your items on Amazon
There are two ways to list a product on Amazon. You can either list something that’s already on the site, or you can add new stuff that’s not there yet, like your own private label products.
Listing existing products
Let’s say you bought a bunch of travel mugs in bulk, and those mugs are already on Amazon. Here’s what you can do:
- Find the listing for those mugs on Amazon. Copy the ASIN from the product details.
- Go to your Amazon Seller Central account. Click on “Catalog,” then “Add Products.” Paste the ASIN into the search bar.
- The listing will pop up. Pick the condition of your item from the dropdown (New, Used, etc.).
- Click “Sell this product,” set your price, and choose how you want to fulfill orders (FBM or FBA). If you have a SKU, enter it. Click “Save and finish.” You’ll see your listing on the Manage inventory page.
Adding new products
Now, say you’re selling something entirely new. Like your own line of emu leather platform clogs. Here’s how you list them:
- In your Amazon Seller Central account, go to “Add a product.” Click on “I’m adding a product not sold on Amazon.”
- Pick the category for your clogs. Fill in all the details: name, price, description, photos, and how you’ll fulfill orders.
- Hit “Save and finish.” Your product will be submitted for approval. Once approved, it’ll get an ASIN and show up on Amazon. Check it out on the Manage inventory page.
Once your product is listed, people can find it on Amazon. And with a bit of good marketing, you’ll soon start seeing how many units you sell.
7. Send traffic to your Amazon store
The most important part in learning how to sell things on Amazon is knowing how to promote the items. Here are a few ideas to help get you started:
- Take advantage of every audience you own. For example, if you have an email list for your business that you’ve been building for a while, you can send that audience a link to your Amazon store. The upside to using your email traffic is that they’re already familiar with your brand. Loyal customers will likely also write positive reviews, which is what you’ll need to sell products on Amazon to people beyond your email list.
- Add your product links to Pinterest group boards. Most small brands don’t have a lot of social media followers. That’s why group boards are a great way to tap into a big audience. You can use a tool like PinGroupie to find relevant boards for your niche.
- Run Amazon ads. This is one of the best ways to gain traction on Amazon, especially if you don’t have an audience of your own. To get more visibility for your product, use a compelling image and copy for your ad.
How to sell on Amazon successfully: 5 tips
Amazon provides new sellers with the opportunity to reach a broader audience. Selling to this audience requires understanding Amazon’s ecosystem and running promotions that compel them to buy. Here are some tips for selling on Amazon:
1. Treat your Amazon store like your actual shop
You won’t make six figures in sales on Amazon just because you uploaded products. You’ll need to treat it like your online store.
You have to drive traffic to the Amazon product pages, either with Amazon ads or other methods. You need to optimize product pages. You need to get great reviews. You need to offer great customer service.
In a nutshell, your brand still has to live up to a great reputation, even if items are sold on Amazon.
2. Get online reviews early on
Focus on getting positive reviews early on. Go the extra mile for your customers when you sell on Amazon. Issue refunds quickly if a customer is upset. In the event that you get a negative review, communicate with the customer to try to have it removed.
You can also offer quick replacements and great service to keep your customers happy. After going above and beyond, many customers will change their review if asked. Most sellers have experienced that having a 95% rating has led to a better ranking in the Amazon search engine, allowing them to sell products on Amazon in higher quantities.
3. Focus on optimizing your product pages
When selling on Amazon, it’s important to optimize your product pages. You can use a tool like SellerApp to determine the estimated monthly search volume for keywords, as well as which categories they dominate in.
By choosing popular keywords, you can improve your chances of being found organically by customers. Also, you’ll want to consider which product categories your products would perform well in. Keyword tools can also help you identify what items to sell on Amazon.
4. Pay for Amazon ads
Paying for Amazon ads is optional and not essential for growing your Amazon presence. One of the perks is that you get access to Amazon’s search data, making selling on Amazon easier.
The cost per click is often fairly low on Amazon compared to other ad networks. Also, the product ad blends in with third-party seller products, making it likely that a customer will click on the product if it meets their needs.
5. Register as a professional seller
Having a professional seller account will save you money if you’re uploading countless products. As a professional, you can add as many products as you like. While Amazon charges selling fees, there are no fees for listing the items.
The more products you list on Amazon, the more likely you are to be found. Also, the more items you sell on Amazon, the more money you can potentially make. Product volume, especially on marketplaces, can be great for getting sales.
6. Provide outstanding customer service
Your job doesn’t end when a customer purchases an item. Actually, this is just the start of building a loyal relationship.
Follow up to ensure the customer is satisfied. Consider adding a thank-you note or a small gift. These touches show you care about their experience and encourage positive reviews.
Some sellers also send follow-up emails or a survey asking for feedback. You can do the same to make customers feel valued and gather insights for your market research.
What is Amazon FBA, or Fulfilled by Amazon?
Amazon FBA (Fulfilled by Amazon) is a service Amazon provides where it carries your inventory and ships products to your customers on your behalf. Items that are fulfilled by Amazon are able to reach customers with faster shipping times.
When investigating how to sell products on Amazon, you’ll want to think about whether you want to ship products to customers yourself or have Amazon do it for you.
If you ship items yourself, you can save additional Amazon fees. However, Amazon has shipping guidelines you’ll still need to adhere to. If you don’t consistently deliver products within a reasonable time frame, you might eventually get booted off the platform.
By taking advantage of Amazon FBA, you’ll delegate the bulk of the logistics work to Amazon, meaning you’ll have one less responsibility to fulfill. Plus, you might be able to save on shipping costs since Amazon FBA sellers qualify for free shipping on orders over $49 for all items except books.
Note: Using Amazon FBA doesn’t exempt you from selling on other sales channels. In other words, you can continue selling on your online store, Instagram, Facebook, and other marketplaces like Walmart and eBay.
Start selling on Amazon today
Becoming an Amazon seller can help you earn additional income while also connecting you with customers you wouldn’t have had access to on your own.
In the beginning, your focus should be on getting product reviews so you can build social proof and trust. Take advantage of the email lists, social media followers, advertising services, and Amazon affiliates at your disposal.
In summary, here are the steps to start selling on Amazon:
- Choose your product niche.
- View eligibility requirements.
- Create a professional seller account.
- Apply for category approval.
- Connect your Amazon account to your Shopify account.
- Create listings for products.
- Manage your inventory.
- Send traffic to Amazon listings.
Is there anything else you’d like to learn about how to sell on Amazon?
How to sell on Amazon FAQ
How do I sell on Amazon for free?
Sign up as an individual seller. This saves you from the monthly fee associated with a professional Amazon seller account.
How do I sell on Amazon without buying products?
Register for Merch by Amazon. This is Amazon’s version of print on demand. You just design merchandise and earn every time a customer buys your product.
Is selling on Amazon profitable?
Selling on Amazon is still a great way to earn profits. According to JungleScout, more than half of all Amazon sellers make $1,000 to $25,000 per month, meaning you could make between $12,000 to $300,000 annually.