Did you know that 74% of shoppers start their search on Amazon? This mega platform has become more than just an eCommerce marketplace. The site receives over 200 million monthly visitors, and shoppers purchase over 4,000 products every minute.
Clearly, this is a dream marketplace for any seller. Now, of course, as expected, the competition is so fierce with about two million sellers. So, everyone wants to now know how to sell on Amazon and make money.
When you’re looking to start selling on Amazon, it’s important to remember that the process isn’t as simple as listing a few items and watching the profits roll in. There are several things to keep in mind when getting started, from choosing the right products to pricing them correctly and understanding Amazon’s fees.
Here are tips on how to sell on Amazon and make money:
Understand the Popular Amazon Selling Methods
There are three ways to sell on Amazon, the first one being retail arbitrage. This involves buying products at a retail store and then selling them on Amazon for a profit. You can also go with FBA, which involves selling products that you sourced yourself and sending them into an Amazon warehouse for shipping.
Alternatively, you can go with dropshipping, which is all about partnering with a supplier who will ship the product directly to the customer on your behalf. Each of these selling methods has its own set of pros and cons, so it’s important to understand them before deciding which one to use.
Retail arbitrage is probably the most well-known way to sell on Amazon. However, just as it can be profitable, it can be time-consuming and difficult to scale up.
FBA is a great option for sellers who want to outsource the shipping and logistics process. When products are sold through FBA, they’re stored in an Amazon warehouse and shipped directly to the customer. This method is popular because it guarantees fast delivery and eliminates the need to handle shipping and logistics.
Dropshipping is a good option for sellers who want to start selling on Amazon without investing in inventory. This method can be profitable, but it’s important to find a reliable supplier who can ship high-quality products.
For all these methods, you need to consider Amazon accounting to tell which one will make you more money.
Create a Solid Business Plan
Just as you would for any other business, you need to have a solid business plan in place before buying and selling on Amazon. This will help keep you organized and ensure that your time is being spent in the most effective way possible. Your business plan should include:
- An overview of your product
- The target market for your product
- How do you plan to reach your target market
- Your marketing strategy
- The financials of your business, including an estimated budget and profit/loss projections
- Your company’s mission statement
Creating a business plan is essential for any business venture, and selling on Amazon is no exception. Without a solid plan in place, you’re likely to encounter some bumps in the road along the way. Take your time and put together a well-thought-out plan before getting started.
Find the Best Products to Sell on Amazon
The next part of knowing how to sell on Amazon and make money involves identifying a market need and filling it. It’s not enough to simply slap a label on something in your garage and hope for the best. You have to research what people are searching for and find a product that meets those needs.
The best way to find a profitable product to sell on Amazon is to use Amazon’s Best Sellers Rank. The BSR tells you how well a product is selling compared to other products in that category. You can see the BSR for all of the products on Amazon, so it’s easy to do some research and find a product that has a high BSR.
The downside to selling popular products is that they are often more competitive and have higher prices. If you’re looking for a less competitive product, you can use the “also bought” feature on Amazon to find products with a lower BSR.
Use Amazon Product Finders to Research Products
The Amazon Product Finder is a tool that allows you to research products to sell on Amazon. It provides information about the product, such as the BSR, price, and reviews. You can also use it to find similar products that are selling well on Amazon. The following are some of the benefits of using the Amazon Product Finder:
- It provides information about a product, such as the BSR, price, and reviews
- You can use it to find similar products that are selling well on Amazon
- It makes it easy to compare products and find the best one to sell
Sponsored Ads are another way to find products to sell on Amazon. Sponsored ads are paid advertisements that appear at the top of the search results for a specific keyword or phrase. They’re a great way to find products that sell well and have a high BSR.
Price Your Products Right
First, you need to determine how much your products will sell for. You can do this by finding similar products online and checking out their prices. Once you have an idea of what you should be pricing your products, you’ll also need to factor in Amazon’s fees.
Amazon takes a cut of every sale on the site, and these fees can vary depending on the product category. For example, products sold through Amazon’s Media category have much higher fees than products in the health and personal care category. Be sure to account for this selling on Amazon fees when pricing your products.
Once you have an idea of how much your products will sell for and what Amazon’s fees are, use this simple calculation to determine your potential earnings: (Product Price – Amazon Fees) x Quantity Sold = Your Earnings. The average income from selling on Amazon is anything between $1,000 and $25,000 per month, so you can make this work.
How to Sell on Amazon and Make Money: A Guide
Selling on Amazon can be a lucrative way to make money, but it’s important to do your research first. Familiarize yourself with the platform, understand Amazon’s fees, and calculate your potential earnings before getting started.
With these tips in mind, you’ll be well on your way to becoming a successful Amazon seller. Now that you know how to sell on Amazon and make money, check out our comprehensive guides for more tips and advice.