‘How to sell on Amazon?’ is the question on the minds of all online sellers as Amazon is the top online marketplace in the world. The numbers are continually increasing with each passing day and the overall growth of the portal is multi-fold. We will take you through a guide to registration and kick-starting the sales function.

how to sell on amazon

How to sell on Amazon (Step-by-Step guide)

As you know, Amazon is one of the largest marketplaces out there for selling online. Retailers can benefit from just how many people visit the site every day. There are even some rumors that Amazon fulfills orders to the tune of a few thousand in a matter of seconds, all day, every day.

If you want a chunk of that eCommerce pie, you’re thinking right.

If you’ve done some preliminary research on how to sell on Amazon, you might have noticed the Buy Box. Simply put, the Amazon Buy Box is almost always the chosen seller for fulfilling an order. Before you go further, we recommend that you give this article at least a skim-through.

Back from reading? You now have some context to get started with Amazon and to do it right the first time around. Here is a step-by-step process to follow.

  1. Choose Your Products And Pricing

    As you can imagine, the right way to sell on Amazon always begins with the right products. If you already have a product in mind, move on to the Pricing section underneath. If you are looking at options, keep these things in mind:

    • Choose products that you know you can source consistently.
    • Select vendors that you trust and ones that you know will always give you the best products and service
    • If you’re not sure of how to begin this process, take a look at this resource.

    Product Pricing

    Here, you have two things to consider. One always does your research before setting a price for your product. You can look around on Amazon for similar products and see how they are priced. Also, customers are willing to pay more for a niche product but you need to showcase the premium appeal through pictures and descriptions.

    Two, dynamic pricing is a great way to get more revenues. Nearly every Amazon seller does it to increase sales. If you are worried about fluctuations, use a repricing software instead of doing it manually.

  2. Create a Seller Account on Amazon

    Before you begin to register for a seller account on Amazon, you need to make sure you have the following:

    • Your business name, address and contact information
    • Internationally chargeable credit card with a valid billing address
    • Phone number
    • Tax identity information

    If you are located outside your elected country, then you need to read this notice to understand a few guidelines for the same.

    If you are selling from outside the US, click here to know more about the guidelines for the same

    After completing the registration process, you can manage the online channels yourself or use a multichannel inventory management software for all your offline and online businesses.

    Selling Plans

    You can select from either of the 2 plans:

    • Individual Plan, or 2) Professional Plan
    • Individual sellers are on a pay-as-you-go system. They can use only a basic set of tools for listing and order management.
    • Professional sellers pay a monthly subscription fee of $39.99 They get a waiver of $0.99 fixed closing fee for each order and can use additional tools for listing and order management. For more information on selling plans, click here: Selling Plans

    How much does Amazon charge a seller?

    Amazon charges sellers based on whether they are an individual merchant or a professional seller.

    For a professional seller in 2019, the total charges paid include a monthly subscription fee of $39.99, referral fee on each item sold (varies by product category), and closing fee (varies by product category).

    For an individual seller in 2019, the fees include $0.99 for each item sold and the closing fee that varies by product category.

     

    Referral fee

    Sellers have to pay a referral fee for every item sold as a percentage of the total sale price

    Items in several categories have a per-item minimum referral fee. Amazon deducts either the applicable referral fee percentage or the applicable per-item minimum referral fee, whichever is greater.

    To know the referral fee for each category, click here: Referral fee charges

    Variable closing fee

    You have to pay a closing fee on the total amount paid by buyers (including any shipping or gift-wrap charges) for books, DVDs, music, software & computer/video games, video game consoles. These come under media products and most of them have a closing fee of $1.35.

    For non-media products, the charge would be $0.45 + $0.05/lb. For more details on closing fee, click here: Closing fee

    Monthly Subscription Fee

    All sellers selling under the professional plan need to pay a sum of $39.99 every month. Individual sellers use a pay-as-you-go system.

    High-Volume Listing Fee

    This fee came into being from August 2016. Non-media ASINs that fall under the following category are identified: 1) when the seller has an active offer, (ii) the ASIN was created more than 12 months ago, and (iii) the ASIN has not had a sale from any seller in the past 12 months.

    The first 100,000 ASINs that meet these criteria will not be charged the High-Volume Listing Fee. For each additional ASIN (above the first 100,000) that meets these criteria, the seller will be charged a monthly High-Volume Listing Fee of $0.005 per ASIN. The High-Volume Listing Fee will be charged monthly and will be applied to the seller’s highest number of applicable ASINs above 100,000 at any time during that month.

  3. Product & Sales Management Process

    how to sell on amazon.com

    Product Listing:

    This is where you add information about the products that you want to sell. This step is very important as it helps a buyer make a purchasing decision depending on the information given by you.

    To list your product on Amazon, you need to follow these steps:

    1. Search for the item you want to sell. When you’ve found the page for the category of product you want to sell, click on ‘Sell yours here’ on the right-hand side of the page.
    2. Describe the condition of your item.
    3. Set your price and register to collect online payment from the buyer.
    4. Select a shipping method-You can choose to ship orders yourself or use Amazon’s FBA to ship.
    5. Optional: Set SKUs for your items
    6. Confirm

    For more details regarding adding products, click here

    Download our free guide on how to make sure your products rank high on Amazon here

    Updating Inventory:

    Amazon provides tools for searching, viewing and updating your product and inventory listing information.

    To customize your page view, click Preferences at the top of the Manage Inventory page, Amazon offers the following options of customization:

    • Active or All listings: Choose whether to show active listings by default or all listings.
    • Low Price Comparison: See Match Low Price for more information about this feature. The low match price helps you to quickly and easily match the current lowest prices on Amazon.com.
    • Show # results per page: Select from the drop-down menu how many results you want to see on each page in Manage Inventory.
    • Show shipping charges in price columns: This field is visible only if you have selected Pre Shipment/Weight-Based shipping model on the Shipping Settings  Check this box if you want the lowest shipping charges to be displayed in the Your Price and Low Price columns. When checked, Match Low Price uses total price (item price + shipping) in the Low Price column for comparison. When unchecked, matching is based on the item price only.

    To get more details regarding inventory management, click here.

    primaseller inventory management software

  4. Order Management

    order management

     

    Amazon Order Management provides a customizable view of your orders. You can view all orders within a given date range or use the Search and Advanced Search filter on specific types of orders. From this list, you can access the details necessary to fulfill the order. Alternatively, you can download it in a report too via the Order Reports section.

    To learn more about managing orders, click here.

    The orders can be fulfilled by the seller directly or by Amazon. Amazon offers order fulfillment service by storing the products in their fulfillment centers, they pack and ship the products as the orders arrive. This service allows you to increase your buyer base due to the trust factor involved.

    Fulfillment by Amazon

    Amazon offers this service to facilitate better service and credibility for buyers. As claimed by Amazon, 86% of sellers saw an increase in sales after using FBA. The services allow you access to fast, free delivery options, safe inventory storage, packing and shipping across the country.

    fulfillment by amazon works

    How Fulfillment by Amazon works?

    It provides the following edges to your business overall:

    • It makes your offer more visible and competitive.
    • FBA products available for One Day Delivery, Free Delivery
    • Access to ‘Buy Box’ along with ‘Add to Cart’

    FBA Fees

    You can also choose to use FBA( Fulfillment by Amazon) for managing your orders. If you subscribe to FBA, services including order handling, pick, pack and shipping will be taken care of by Amazon.

    The order handling fee depends on the size of the packet. To know the charges for different categories of products depending upon their size and weight, click here.

    How to start using FBA?

    Follow these steps to start using FBA:

    1. On the Manage Inventory page, select a product you would like to include as an FBA listing by selecting the checkbox in the left column.
    2. From the Actions pull-down menu, select Change to Fulfilled by Amazon.
    3. On the next page, click the Convert button
    4. Follow the directions for creating your first shipment

    For detailed information regarding FBA, take a look at this guide.

  5. Shipping

    Sellers can deliver their orders using any carrier. However, Amazon requires sellers to ship books, music, video and DVD products within 2 business days of receiving the order.

    Amazon collects per-item shipping costs and passes it on to help the seller cover his/her shipping costs. The shipping amount the seller will receive depends on the category of the product ordered and the mode of shipment chosen. To know the amount the seller will receive to offset shipping costs, click here.

    You can choose to sell domestically or internationally with Amazon. You need to go to ‘Shipping Settings’ under Settings to mention your shipping details.

    1. Mention your ship-from location which could be a city or a country in case you are an international seller
    2. When you register for selling, your default shipping is set for US Domestic Standard Shipping. To change your default shipping options, use the drop-downs in the Default Shipping section and enable any additional shipping services you want to offer.
    3. You can choose to sell internationally using Amazon. The recipients’ full name and address should be written with the last line of the address specifying the country name in capital letters.
    4. The seller must take care of all the domestic and foreign tax laws about the particular country you are shipping to. Read more on selling internationally using Amazon

    What is FBA Shipping

    If you chose to fulfill your orders using Amazon FBA, they will take care of your product shipping. The charges applied depends upon the category of product and its size. To get detailed information on the rates, click here.

    Ship With Amazon

    Ship With Amazon is a delivery service offered by Amazon. Amazon picks up the package from the seller’s location and delivers it to the customer on behalf of the seller. This is quite similar to any other delivery partner such as FedEx. Amazon has a ton of other order fulfillment options which you can see here.

    Sell on amazon.com

  6. Returns & Refund Management

    Returns are an inevitable part of the business and since e-commerce businesses support it for better customer experience, it may be higher in online orders in some cases. The typical process may involve refund, exchange or replacement. Returns and refunds, if handled well lead to buyer satisfaction making you a preferred seller on the portal.

     

    No. Scenario Concern Attribution Impact to Seller
    1 Issuing refund on shipping cost due to delivery delay Shipment to Customer was delayed due to transportation. The Customer didn’t pay the shipping fee or Amazon refunds the shipment fee to the Customer Amazon None
    2 Issuing refund on shipping cost due to delay in the pick-pack process Shipment to Customer was delayed due to a delay in the pick-pack / billing process. The Customer didn’t pay the shipment fee or Amazon refunds the shipment fee to the Customer Seller Seller will be charged with the Shipping/transportation Fee as applicable depending on the Shipping method
    3 Issuing a full refund on orders not received by the customer The shipment was not delivered to Customer for various reasons like:

    · Address not found

    · Business closed

    · Customer Unavailable

    · Inaccessible Location

    · Wrong Address

    · No Secure Location

    · Package is damaged

    Amazon · The entire order will be delivered back the Seller

    · The Seller will not be paid for such orders

    · No fee will be charged

    4 Issuing full refund on orders rejected The shipment was rejected by the Customer for various reasons like:

    · Package is damaged

    · Incorrect Product

    · Expired Product

    · Spoilt/unusable product

    · Spoilt/unusable product

    Amazon / Seller · The entire order will be delivered back to the Seller

    · The Seller will not be paid for such orders

    · The Seller will be charged a penalty of 20% of the referral fee (only for reasons controllable by Sellers – Incorrect product, expired product, Spoilt/unusable product)

    5 Issuing a partial refund to the customer for a rejected product(s) A portion of the shipment was rejected by the Customer for various reasons like:

    · Package is damaged

    · Incorrect Product

    · Expired Product

    · Spoilt/unusable product

    · No Longer needed

    Amazon / Seller · Specific items (rejected by Customer) will be delivered back to the Seller

    · The Seller will be paid partially for such orders (accepted items – rejected items in the order)

    · The Seller will be paid partially for such orders (accepted items – rejected items in the order)

    6 Issuing full refund on orders for which Customer is requesting Refund The customer accepted the entire package but reaches out to Customer Support requesting a Refund on the entire order.
    Possible reasons could include:·· Package is damaged· Incorrect Product· Expired Product·         Spoilt/unusable product
    Amazon / Seller · The Seller will be paid for such orders as long as the fault is attributed to Amazon.

    · For issues attributing to Seller fault (only for reasons controllable by Sellers – Incorrect product, expired product, Spoilt/unusable product), the Seller will not be paid for such orders

    · The Seller will be charged a penalty of 20% of the referral fee (only for reasons controllable by Sellers – Incorrect

    7 Issuing a partial refund to the customer for the product(s) for which Customer is requesting a refund The customer accepted the entire package but reaches out to Customer Support requesting a Refund on specific items within the order.
    Possible reasons could include:·· Package is damaged· Incorrect Product· Expired Product·         Spoilt/unusable product
    Amazon / Seller · The Seller will be paid for the rejected items as long as the fault is attributed to Amazon.

    · For issues attributing to Seller fault (only for reasons controllable by Sellers – Incorrect product, expired product, Spoilt/unusable product), the Seller will not be paid for the rejected items

    · The Seller will be charged a penalty of 20% of the referral fee (only for reasons controllable by Sellers – Incorrect product, expired product, Spoilt/unusable product)

    For detailed refund policy, refer to the document on this link.

  7. Payments

    The payments are released on a cycling pattern and the details of it can be accessed on the seller dashboard. Amazon also hosts a Seller Protection Program to secure sellers of any fraud by buyers. As claimed by Amazon.com, the payment of your sale proceeds is transferred to your registered current account in 14 days for the first order, and 7 days for subsequent orders. The settlement report can be accessed through Reports on the seller portal.

    It usually takes 2-3 business days for funds to arrive in the account from the date of transfer initiation. Transactions are recorded in the Seller Central Account after the seller confirms the shipment of an order. If the order shipment is not confirmed, the payment will not be made.

    You can choose to register under Pay with Amazon too if you have your website. It is a service provided to customers to shop from the seller website with their stored Amazon account information. It aids the seller business to add new customers, increase sales, increase conversion rate, and organize timely delivery. The overall benefits of the services areas listed below:

    1. Increase conversions
    2. Avenues of growth
    3. Fraud Protection
    4. Increase buyer confidence
    5. Manage Deliver

    To know more about payments, click here

  8. Measuring Performance

    Amazon.com provides a complete Dashboard with various reports to track your performance. The reports can include Sales Report, Inventory Report, Settlement Report, Statement Report, Payment Report, Removal Report, Business Report, Order Report amongst others. This allows you to get a clearer picture of the business relating to the performance of the business on the portal and the improvement required thereof.

    To register as a seller on Amazon click here: sell on Amazon

How does Primaseller help you sell on Amazon?

Once you have registered yourself as a seller on Amazon and listed your products there, you are ready to wait for your orders to come and make your sales. But, the tough job in this process involves efficiently managing your inventory and orders.

When you have numerous products on Amazon, it’s not easy to manage the flow of your inventory if you don’t have a good software platform for the same.

Primaseller helps you by managing all your inventories on Amazon, and also on the various other channels you might be selling, like eBay, your own website or even your offline retail outlet etc. We keep you updated on the status of your inventory across all these channels from a single place, even when you are not monitoring. Primaseller also helps you process orders from these marketplaces. You can also easily integrate your physical store and online store operations using Primaseller.

Invest right and wait for your profits to flow in.

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