how to sell on amazon for beginner

How To Sell On Amazon For Beginners : Ultimate Guide & Critical Steps

Wondering how to sell on Amazon for beginners?  In this how to sell on Amazon for beginners  Ultimate Guide & I will share with you something you must know before even creating your first Amazon account.

 

Today, Amazon is already a household name in all around the world, it’s is no doubt that it is the king of the online marketplace.

However, a beginner may see selling on Amazon intimidating and confusing, given the excess amount of information online. you may ask “Why do I need to sell on Amazon?”

Why do you need to sell on Amazon?

  • Firstly, Amazon is the biggest online marketplace in the world, along with millions of prime member, you can easily cash in their existing user base.
  • Secondly, Amazon can handle warehousing and fulfillment for you (FBA)
    With FBA, you can ship your inventory to Amazon and let them manage it for you.
    You can run your business remotely without worry about warehousing and shipping.
  • Amazon has a substantial online traffic, approximately 1/3 of the USA  shopper only buy from Amazon, if you don’t sell on Amazon, you leave lots of money on the table.

Now that we have discussed why you should sell on Amazon, the rest of this article will walk you through the processes on how making money on Amazon works.

How To Sell On Amazon For Beginners Step 1



Looking For Product To Sell On Amazon

The first question you may ask is “how much funds do I need to get my business running on Amazon?”

In fact, the capital you need to start can be quite small, and there are a so many ways you can source your products.

Firstly, you can choose to do “arbitrage” whereby you buy goods from both a physical or online store and then list them for sale on Amazon.

Secondly, you could get your stocks from wholesale Suppliers and resell them on Amazon.

Lastly, private label manufacturers allow you to change and customize your branded goods

and then resell them anywhere you wish, including Amazon.

Mind you there are other methods of finding goods for sale on Amazon, and they all work in the following ways:

Retail/online Arbitrage

It simply means when you buy goods in physical or online retail stores and then resells them on Amazon.

To take advantage this technique, The seller has to look for retail clearance and stock reduction sales.

And when they find an excellent deal, they make use of some seller software, Those apps then estimate and report the profitability of the items. Those apps let them know if they can make a profit after taking all costs into consideration.

The capital required to start this way is relatively small,  If you are short of money, then around USD 300 should be enough to start this business method.

Wholesale Suppliers    

This is the most commonly used technique, you buy in bulk from a supplier and resell them at a margin.

The key benefit of this method is that you can get much better margin than retail arbitrage, however, it requires some capital to start.

Also, to avoid getting stuck with unsold supplies, you must carry out proper research before ordering from your suppliers.   

     

Selling Private Label Products

This option allows you to buy goods from the manufacturer and customize them under your own brand.

You can change the color, package or even design for those private labeled products.

The primary advantage is that it makes your product unique and stand out. Since you add a unique selling point to it.

However, it cost a lot of money since you have to buy goods in volume

Manufacturing & Handmade Goods

You can put up hand-crafted goods that you made for sale on Amazon.

You may need to research how much it would charge you for such items and for this method to be profitable.

Dropshipping Goods

If you are running on a shoe-string budget, then you could consider doing drop shipping.

With drop shipping, you don’t buy any inventory, Otherwise, You list those products for sale first, while you make a sale, you send the order detail to the supplier and pay for only the product you sold.

 

Keep in mind that it may not fit any business. The concept relies on your dropship vendor to dispatch items you sold. 

The problem with dropshipping is that the profit margin is relatively low.

And you might have to deal with complaints about quality, shortages, and problems with late delivery of products.

In addition, this technique is seldom used by sellers on Amazon because the conditions for drop shippers are quite stringent.

sign up your amazon account

How To Sell On Amazon For Beginners Step #2

Select And Set Up Your Account

To sell on Amazon, the first thing you need to do is to open an account. You can start either as an Individual or Pro Seller. 

The Pro account offers more features and costs $39.99 for each month,

The Individual accounts go for $0 per month, but Amazon takes approximately a $1 fee for every item you sell.

 

Even though most sellers prefer the Pro accounts due to its outstanding features, you could start with an Individual plan to minimize your risk, especially if you are using the retail arbitrage method to source your inventory.

On the other hand, the Pro Seller account is suitable if you are putting money into wholesale or private label products.

  

Creating Your Product Listing

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Your next step to do is to create a listing of your product, which can be carried out in a couple of ways.

You may decide to include your goods in current product listings or create a fresh one for your product.

The most straightforward option is just to add your items to current listings and is the preferred method for most beginners on Amazon.

Bear in mind that if you are listing a product already on sale, you may not get the needed exposure initially, but as competitors run out of stocks, your items then become available to buyers.

But you can make your product the customers top pick by offering free shipping, a reduced price or using FBA (fulfillment by Amazon).

 

There are essential tips you should notice when listing your product on Amazon and they include the following:

 

  • Although there might be multiple listings, make sure you select the best listing.
  • Always look for highly-ranked listings with clear images and excellent information.
  • Your profit should be on your mind all the time
    it becomes very important that you perform research on all fees and costs and products.
  • You may take advantage of scouting apps and the Amazon profit calculator when researching your product source.
  • Even as a beginner, for Amazon to store and ship your goods and to be “Prime-eligible,” you should ensure that you enroll for FBA just like most highly rated sellers.

Owners of Amazon Pro seller account may add fresh listings of their goods in two ways, and they are:

  • Creating new listing manually 
    It can be time-consuming if you have a lot of product to add.
    This technique is ideally suited for most items, especially when you don’t have a lot of products to add.
  • Bulk Uploading lets you create lots of product listings straight away by uploading a spreadsheet that contains each one of your items.
    If you sell goods on your own site, then you may link your products directly to Amazon as well.

How To Sell On Amazon For Beginners Step #3

Manage Inventories 

How well you are able to manage your inventory determines the level of your success on Amazon

Amazon would lower your seller ratings if you fail to ship a product displayed as being “in-stock” on time.

And if you failed to maintain your seller matrix, your account will be suspended by Amazon

So keep in mind always manage and fulfill your inventory properly.

 

There are a number of options that you may employ to manage your inventory -such as FBM, FMA or tried party fulfillment company.

 it is crucial you update your inventory frequently, so as to maintain a high rating on Amazon as a seller.

Note that as you make the sales, your inventory count decreases automatically on Amazon, and you may need a robust solution if you have similar items on your site or retail store.

 

The concept of managing inventories is very much like the listing of products on Amazon and can be done either manually or via bulk upload.

 

  • You can manually update inventory levels after selling some few items by merely altering the Available units from your dashboard.
  • You will need a sophisticated solution to manage a large stock or to reconcile inventories between your site or store and Amazon.

How To Sell On Amazon For Beginners Step #4

Fulfill Your Amazon Orders

The final stage in selling on Amazon is to deliver your orders.

Based on Amazon’s standards, you should always fulfill orders on time and if you fail to do that, it will hurt your seller rating.

And if you failed to maintain a good matrix. your account can end up suspended.

As you sell on Amazon, you should be ready to either dispatch orders yourself or let Amazon handle it.

There are a few ways you can achieve this goal, and they include:

Shipping orders by yourself (FBM Fulfillment by Merchant)

This method is also known as Fulfillment by Merchant (FBM), which requires Amazon merchants to ship their orders out to customers from their warehouses.

If you decide to adopt this method, Make sure you have a good inventory management in place.
Or having relative small orders.

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Allow Amazon to fulfill your Order


This method is regarded as Fulfillment by Amazon (FBA)

With this method, you ship your product to Amazon.

Amazon handles almost everything for you – warehousing, customer service, and fulfillment.

And you only pay for a relative small warehousing and fulfillment fee.

On the other hand, the benefits of FBA are immense and include the following:

  • Your items will likely be listed as “Prime products” on Amazon and get more traffic.
  • Amazon makes your items qualified for Prime free 2-day shipping
  • Your product listings will get better ranking on Amazon
  • It instills confidence in buyers that they will get their  goods
  • You will make more sales!

How To Sell On Amazon For Beginners Step #5

Sign Up For My Free Video Training: How To Sell on Amazon for Beginners

Thanks for reading this How To Sell On Amazon For Beginners” guide, I hope you have learned something so far

I tried to cover as many things as I can in this short article, and I know you do want to know more about it

You Can click the link here to sign up for my free video training 

  • In this 3 part video training you will how the following
  • 13 Critical Criteria For Finding A Winning Product
  • My Foolproof ways to spot suppliers and have to get the best margin
  • 66 Products you should never sell on Amazon
  • How do I make $81k in a month selling on Amazon case study
  • 100 best selling Amazon categories report
  • My hand-fulfillment llment service for you
  • My 3 step formula to start any Amazon business
  • How to sell on Amazon for beginners
  • And more

You Can click the link here to sign up for my free video training 

[Free Training]Sign Up To Get My Free Amazon Training For Beginnners

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4 Comments

  • Joshua Petrullo

    ReplyReply January 11, 2018

    Hi my friend! I want to say that this post is awesome, great written and come with almost all vital infos. I would like to see extra posts like this.

    • Administrator

      ReplyReply January 12, 2018

      Hi thanks a lot ๐Ÿ™‚

  • Ndayishimiye Boaz

    ReplyReply January 8, 2018

    Amazon is a great place to start an online business compared to other online business models:
    1. It’s less risky,
    2. It’s proven to be profitable in long run.

    • Administrator

      ReplyReply January 9, 2018

      yeah it is ๐Ÿ™‚ thanks for sharing

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