How to Sell on Amazon and Turn Your Amazon Seller Startup into a Booming Success.
05.23.2022
How to Sell on Amazon and Turn Your Amazon Seller Startup into a Booming Success.
Start with these 10 steps that describe how to make money on Amazon.
1) Figure out what you want to sell. The first thing to zero in on is: what products sell best on the platform. Or which niches have the best profit margins and fit your sales goals. To decide what product categories are right for you, review the most popular sellers and determine from those pools what areas interest you. Focus on those items.
Research: Do as much digging as possible about how to sell on Amazon with those particular products that pique your curiosity. There are plenty of articles and videos online for enthusiasts of every kind.
2) Choose the right sales channel. For anything you decide to sell, there is also an audience that wants those exact same products. Whether it’s home goods or electronics, consider the quantity of products you’re selling. Knowing the answer to these two considerations will influence what type of sales channel will work best for you.
When building a thriving Amazon seller business, you’ll want access to analytics, customer reviews, and as many customers as possible.
3) Review product listings and fees for selling. The capital necessary to sell online will change depending on the different store models chosen. Be sure to pay close attention to fees and other charges as you decide on which option you choose for your business.
Here’s a basic rundown of the different fees you can expect:
- Listing fee: typically, a flat fee to list on Amazon, either per item or a monthly charge
- Selling fee: a percentage of the selling price (may include shipping and handling)
- Payment processing fees
If you’re an Amazon seller who is moving a lot of products, these fees can add up quickly. If avoiding fees is your top priority, then pick a store model where the fees aren’t excessive to help you avoid the costs.
4) Rank better at Amazon SEO. Think of the platform as a search engine and you’ll have a better idea of how to sell on Amazon as a strategic approach to succeeding at eCommerce.
Study the details of Amazon’s search engine algorithm, and you’ll better understand how to the most effective search terms, keywords, and copywriting to boost the profile of your store.
5) Prioritize your product listing correctly. After learning how Amazon’s SEO engine and algorithm operate, spend some additional time researching your competitors.
Search your own product listing and see how yours rank compared to those in other stores in regard to their listing descriptions, as well as their prices.
6) List your products at a competitive price. If priced the highest, don’t expect to get many sales. If you’re priced the lowest, your lack of margins will eat all your profit.
Your goal is to find the ideal price between competitiveness and margin. It may be just one penny lower than the competition — even though it’s important to know that the coveted “Buy Box” winner is decided by more factors than solely price.
If you have a large inventory, repricing manually may not be viable so you may want to use repricing software like Repricer.com to save time.
7) Choose the right pricing strategy. Whether you’re an Amazon seller with a store full of expensive or inexpensive goods, then your prices should reflect the values of those items.
Usually, it’s safe to say that you don’t want to be 10% more expensive than any Fulfilled by Merchant seller, and you don’t want to be more than a couple of pennies less than the least expensive seller.
In the case of a price war between your item and another store as the two lowest priced sellers — back out, because a pricing face-off usually leaves no winners, and it’s smarter to rethink your marketing strategy than to continually lower your prices. Again, think margins.
One effective way to stay on top of a competitor is to raise your price if the other store runs out of a particular product, and also lower your price by one penny.
8) Know which of your items are most profitable. Your products with the highest margins are your bread and butter, and you want to treat them with just as much attention as they’ve been treating you.
Scrutinize your sales reports to identify your most profitable items by looking at sell-through rates, profit margins, and price trends. Then makes sure to bring in more to keep maximizing your ROI. Always maintain a good amount of stock when it comes to your hot sellers.
9) Customer service. After you’ve worked hard to elevate your sales, it’s imperative that you keep the customer who receives your products happy. Double-check that all the order information is correct, and if you have an Amazon dropshipping store, ensure that you’re packaging your items appropriately, and shipping to the right addresses. If you choose an FBA (Fulfillment by Amazon) model, you will only need to ship your items directly to Amazon and they’ll take care of the rest, including any returns. They do a fine job.
10) Accept that it requires a lot of hard work. Or choose a management company like PushAMZ which does all 10 of these steps for you. Just when you think you’ve figured out how to sell on Amazon and your store is making money, don’t think it’s over and you can relax — again unless you have a trusted operator who handles all the headaches for you. In fact, if you’re going it alone and achieved a fair amount of success, that’s when things really start to heat up.
You’ll continually have to find SKUs that are trending and profitable, and you’ll have to keep diversifying your inventory. Your hottest sellers won’t stay in that position forever, and if you can find other items to swap them out for better earners, you’ll stay ahead of the game going into the future. But that takes constant oversight.
Think about introducing new items slowly and start off with your existing suppliers to maintain continuity.
Parting thoughts. Running an Amazon business is not for the faint of heart. The competition is always trying to win out, and most of them are already savvy Amazon sellers that will constantly try to outfox you. But by following the 10 steps above, you can become the next Amazon success story.
