MT: How to Sell on Amazon: The Step-by-Step Approach
M.D: Understand how to sell on Amazon and make the most out of your Amazon sales journey using this step-by-step guide. Step up to hit your Amazon sales goals and get started!
Knowing how to sell on Amazon is not just about accessing 315 million+ customers; it is about developing a solid brand identity, setting goals for the brand, and applying strategies that translate to growth.
Be it small, midscale, or large operations, Amazon is suited for various business types with numerous scalability options to future-proof your growth. Irrespective of your business type, having a clear vision of how to proceed is crucial for a start.
In this article, we’re going to take you through each of the steps to plan to sell on the ecommerce platform. Specifically, we’ll help you effectively launch your very own Amazon store. Additionally, we’ve also provided several actionable insights that might add value to your selling journey.
Conduct Market Research
Before diving deep, you have to first test the water. Similarly, thorough market research, (especially in your domain) helps you gauge the ebbs and flows of trends, and the changing consumer preferences. This will give you a better take on how to sell on Amazon.
To make your product research easier, you can take advanced product intelligence tools to extract the sales data of your competitors and compare it. Additionally, it gives you clarity of the pricing, competition, discoverability, listing quality, and sales potential of products— be it your competitors’ or yours. It helps you to strategically plan your market presence and successfully sell on Amazon.
For example, if you find your top competitors to have more or less similar sales overviews, you can bring a USP to the table that might resonate with a wide target audience and eventually dominate the category by catering to the needs of an untapped market.
Here are some tips to make your product research easier:
-
Focus on specific categories in demand that align with your region of expertise.
-
Your niche can help you amplify your marketing game.
-
Read your competitors like a book before trying to know how to sell products on Amazon— this will help you find the gaps in the market.
-
Do in-depth trend and category analysis to find gaps you can fill.
At the end of the day, to make your product successful in the marketplace, keep your demand high and competition low. While most of the categories and subcategories are saturated on Amazon, keep stacking your strategies to ultimately reach this level where you have successfully eliminated your direct competitors.
Figure Out your Selling Strategy
Once you are done deciding on and developing your product, it’s time to strategize a business model that best suits your product and capacity. Some of the popular options that may resonate with you if you’re trying to understand how to sell on Amazon:
-
Private Labeling
This allows you to source products from a manufacturer directly to list them on Amazon Marketplace, and directly sell on Amazon with full control over your branding strategies and pricing. It requires substantial upfront investment but the manufacturing requires no effort from your side. Once you excel in your inventory planning, stocks will keep recycling effortlessly and all you need to do is work on your branding to keep your competitors from taking over.
-
Dropshipping
For a new Amazon seller, this method is even more convenient as it requires the least effort. Even without holding an inventory you can list your products on Amazon Marketplace, optimize the listings to have the best reach, and upon receiving orders a third party supplier will pack the products, label them, and send them directly to the customer.
-
Retail Arbitrage
Retail Arbitrage requires less upfront investment with minimal effort. This is because here in this strategy sellers can buy directly from retail stores just to sell them at a higher price on Amazon. Well, the process of holding onto a stock level at a minimal price can require patience and risk from your side.
Note: Remember to choose your selling strategy according to your goals and resources while getting to understand how to sell on Amazon.
Chalk out a Business Plan
An elaborate business plan acts like a map so that you can always stay on track with your business goals and visualize it well. Once you create a plan like this, it gets easier to stay organized with the process of selling on Amazon. Amazon being an open market, it is easy to lose track of your brand messaging while chasing profits. It may have you list products that do not even resonate with the rest of the listed items.
A business plan streamlines your attention so that you do not overshoot your boundaries (maybe in terms of finances or brand messaging) or sabotage the future of the business.
If your concern is to understand how to sell on Amazon, an ideal business plan contains:
-
A market analysis– to build an idea around what customers want, considering demographics and trends.
-
Business summary— to outline the goals.
-
Sales strategy— to ensure a stable flow of revenue.
-
Expense calculation— to estimate all the expenses including inventory, packaging, shipping, Amazon PPC ads, etc.
Sign up for an Amazon Seller Account
Two types of accounts available for Amazon sellers are:
-
Individual account– requires no monthly fee, charges 99 cents per sale, and is suitable for sellers selling less than 40 units in a month.
-
Professional account– A professional account on Amazon comes at a monthly fee of $33.9 through which you can make unlimited sales.
List Your Products
Now assuming that you have already decided on what to sell, it’s time to list your products on Amazon Seller Central to sell on Amazon. We will provide a list below that covers all the top tips to keep in mind while creating a product listing on Amazon.
-
The product title should contain the product name, description, the USP (Unique Selling Point), and the main keyword.
-
High quality images for best results. The images should capture the product from various angles showcasing the real-life application of the product via pictures in different settings. The more detailed the pictures are the better, not just in terms of product specification but usability or even packaging.
-
Video content and A+ content are the most overlooked sections when it comes to listing quality. Don’t forget to walk the extra mile by adding quality A+ and video content and nail the listing process.
-
Compelling descriptions with in-depth details are important to understanding the product better and driving purchases. It can also act as a space to incorporate relevant keywords to increase the chances of its discoverability.
-
Competitive pricing is another major driving force of a purchasing decision. We recommend using competitor research tools to understand your position among other similar listings and set a price that makes your target audience choose your products. Setting a competitive pricing strategy at first helps you gain the initial traction that leads to more sales and increased review count over a period of time.
-
Reviews are one of the most influential factors in driving a purchase decision. So, implement various strategies to gather reviews and ratings for quality reviews on your product. Maybe use a review extraction tool or maximize the chances of getting a review back.
Select a Fulfillment Service
Amazon sellers have two options for selling products online.
-
Fulfillment by Amazon (FBA)
In this fulfillment method, the entire storage, packaging, labeling, and pre and post-purchase customer interaction is handled by Amazon. Selling on Amazon FBA is a perfect solution if you want to outsource your shipping responsibilities and the robust logistics help you maintain delivery timelines.
Amazon sellers selling on Amazon FBA are charged according to storage space occupied and order volume received. Most importantly, Amazon offers better visibility to products that come under FBA or for their Prime eligibility.
-
Fulfillment by Merchant (FBM)
If managing your inventory by yourself is a priority for your business goals, we suggest that you go for Fulfillment by Merchant (FBM) where you enable the entire shipping process. It might be too overwhelming for businesses with a limited staff to undertake the shipping responsibilities.
Launch Your Product
A successful launch carries significant importance. The A10 algorithm of Amazon favors any product that experiences a high sales velocity right after its launch. It further snowballs into increasing its chances for Buy Box eligibility and positive reviews; both of which are important for maximizing sales.
Gauge the Performance
Amazon Seller Central comes with a set of analytics tools that help you track sales, monitor inventory levels, analyze customer feedback, and more. These cumulatively support a seller in setting correct prices, finetuning marketing strategies, analyzing demand, restocking on time, and making informed decisions for their business.
Keeping a close track of customer feedback helps you make small adjustments to incrementally grow and improve in terms of product listing optimization, leading to better discoverability and hence higher conversion rate. Or you can use the expertise of an Amazon Marketing Agency to help you optimize your listings and significantly increase your visibility and sales potential.
Final Thoughts
Standing out in the Amazon marketplace might come off as an easy solution to reach a worldwide audience. But creating your space as an Amazon seller at the biggest ecommerce platform requires dedicated strategies, a focus on individual contribution, creating optimized listings, and constant monitoring the growth.
Take advantage of the correct strategies or let an Amazon Marketing Agency take charge and set you up for assured success.
Author Bio:
Prateek S. is an experienced SEO Analyst and writer specializing in eCommerce with over two years of expertise. Currently at SellerApp, he excels in crafting clear and insightful content that breaks down complex eCommerce concepts, helping businesses optimize their online presence. His work reflects a deep understanding of the digital marketplace, providing practical guidance to those navigating this ever changing industry.
