How to Start Selling on Amazon

February 20, 2024
8
minutes to read
by
Warren More
Contents

In the ever-expanding realm of ecommerce, Amazon stands as a global powerhouse, offering a colossal marketplace for businesses of all sizes. For Aussie small business owners, venturing into the world of Amazon can open up new avenues of growth and success. This comprehensive guide is your roadmap, providing detailed insights into every step of the process.

What is Amazon?

Amazon's journey from humble beginnings to global dominance is a remarkable tale of innovation, persistence, and adaptability. Founded by Jeff Bezos in 1994 as an online bookstore, Amazon rapidly expanded its offerings to include a diverse range of products. Amazon's relentless commitment to customer satisfaction, expedited shipping, and an ever-expanding product catalogue propelled its popularity. 

Over the years, Amazon's business model evolved to incorporate services like Amazon Prime, Kindle, and Amazon Web Services, solidifying its position as an e-commerce giant and a tech powerhouse. However, this ascent to greatness has not been without controversies. Amazon has faced scrutiny for its labour practices, market dominance, and impact on small businesses. The company's growth has raised concerns about its power in the marketplace and influence over various industries, sparking debates on the fine line between success and ethical considerations.

Despite the challenges and criticisms, there's no denying that Amazon has revolutionised how we shop and conduct business globally.

How Popular is Amazon in Australia?

Amazon's popularity in Australia has experienced a steady ascent, establishing itself as a significant player in the ecommerce landscape. Since officially launching its services Down Under in 2017, Amazon has worked diligently to win the hearts of Aussie consumers. With a vast and diverse product selection, competitive pricing, and the allure of expedited deliveries through Amazon Prime, the platform has garnered a substantial customer base. Aussies have increasingly turned to Amazon for their online shopping needs, appreciating its convenience and reliability. 

The company's commitment to enhancing the customer experience and strategic initiatives like the introduction of Amazon Prime have contributed to the platform's growing popularity. While Amazon faced initial challenges in adapting to the unique demands of the Australian market, its continuous efforts to refine its services and expand its offerings have solidified its position as a go-to destination for online shoppers across the continent.

How To Start Selling on Amazon in Australia?

Step 1: Create a Seller Account

Your journey on Amazon begins with creating a seller account. Navigate to Amazon's Seller Central, where you'll provide essential information about your business. Choose between the Individual Plan (pay-per-sale) or the Professional Plan (monthly subscription). Consider your business goals and choose accordingly.

Step 2: Choose a Plan

Selecting the right plan is crucial. The Individual Plan suits those selling fewer than 40 items a month, while the Professional Plan is ideal for businesses with higher sales volume. This subscription-based plan offers additional benefits, including access to advanced selling tools and promotional features.

Step 3: List Your Products

Once your account is set up, it's time to list your products. Provide accurate and detailed information, including high-quality images and compelling product descriptions. OptimiseOptimise your listings with relevant keywords for better visibility.

Step 4: Set Up Your Amazon Store

Enhance your brand presence by setting up an Amazon Store. This feature lets you showcase your products in a branded storefront, offering customers a curated shopping experience. CustomiseCustomise your store with images, logos, and a unique URL to stand out from the crowd.

Step 5: Connect Bank Account

Once you have set everything up, you must connect a business transaction account to pay your earnings. A product like Thriday allows you to open up to ten $0 monthly accounts to budget and easily track which product lines are profitable.

While starting a business on Amazon involves costs, they are relatively reasonable. The Individual Plan charges $0.99 per sale, while the Professional Plan requires a monthly subscription fee of $39.99. Additionally, factor in referral fees (percentage of each sale) and fulfilment fees for those using Fulfilment by Amazon (FBA).

How To Start Selling on Amazon Without Inventory?

If managing inventory seems daunting, leverage Amazon's Fulfilment by Amazon (FBA) service. With FBA, Amazon handles storage, packing, and shipping, allowing you to focus on other aspects of your business. This convenience does come with associated fees, so carefully evaluate the cost-benefit. FBA also makes your products eligible for Prime shipping, offering customers expedited shipping, often within two days. 

This attracts more buyers due to the enticing promise of fast and reliable deliveries and boosts your products' visibility on the platform, increasing the likelihood of making a sale. Prime Shipping adds a layer of trust and convenience for customers, fostering loyalty and elevating your products above competitors in the fiercely competitive marketplace.

What Is the Best Way to Be Successful on Amazon?

Optimise Product Listings

Craft compelling product titles and descriptions with relevant keywords. Use high-quality images to showcase your products and ensure your pricing is competitive. Regularly update your listings to reflect product offerings changes or incorporate customer feedback.

Encourage Customer Reviews

Positive reviews build trust with potential customers. Encourage buyers to leave reviews by providing excellent customer service and quality products. Respond to customer inquiries promptly and address any issues to maintain a positive reputation.

Leverage Marketing Tools

Utilise Amazon's marketing tools, such as Sponsored Products and Amazon Advertising, to increase the visibility of your products. These tools allow you to create targeted ad campaigns, reaching potential customers as they browse and search on the platform.

Stay Informed About Market Trends

Regularly research and analyse market trends. Stay ahead of the curve by adapting your product offerings and marketing strategies accordingly. Keep an eye on your competitors and be agile in adjusting your approach based on changes in consumer behaviour or industry trends.

Is Selling on Amazon Profitable?

Selling on Amazon can be a highly profitable venture for entrepreneurs, including Aussie small business owners. The platform's expansive reach and massive customer base give sellers unprecedented exposure to potential buyers. 

Success on Amazon, however, hinges on various factors such as product selection, competitive pricing, and effective marketing strategies. While associated costs include referral and fulfilment fees for services like Fulfillment by Amazon (FBA), the benefits often outweigh the expenses. With careful planning, strategic decision-making, and a commitment to customer satisfaction, sellers can tap into the lucrative opportunities presented by Amazon's vast marketplace. 

Building a solid brand presence, optimising product listings, and staying attuned to market trends are crucial for long-term profitability. As with any business endeavour, thorough research, adaptability, and dedication are essential to unlocking the full potential of selling on Amazon and turning it into a profitable venture.

How Much Does Amazon Charge?

Understanding Amazon's fee structure is pivotal for sellers looking to manage their finances effectively. Amazon charges sellers through various fees, and a clear grasp of these costs is essential for accurate pricing and maintaining healthy profit margins.

  • Referral Fees: Amazon charges a referral fee for each item sold on the platform. This fee is a percentage of the item's sale price and varies depending on the category. Referral fees typically range from 6% to 45%, with specific categories having a minimum fee per item.
  • Subscription Fees: If you opt for the Professional Plan, which is geared towards higher-volume sellers, a monthly subscription fee of $39.99. The Individual Plan charges $0.99 per item sold in addition to referral fees.
  • Fulfilment Fees: For sellers using Fulfilment by Amazon (FBA), where Amazon handles storage, packing, and shipping, there are fulfilment fees. These fees cover picking, packing, shipping, and customer service costs. They vary based on the size and weight of the item.
  • Optional Services: Amazon provides optional services such as advertising through Amazon Advertising and various seller tools, each with its associated costs. Sellers must factor these expenses into their budgets based on their marketing and operational needs.
  • Other Fees: Additional fees may apply for specific circumstances, such as removal or disposal fees for items stored in Amazon's warehouse that are not being sold or long-term storage fees for items held for an extended period.

To calculate the total fees for a particular product, sellers must consider the referral fee, fulfilment fee (if applicable), and any additional optional service fees. While these fees contribute to the overall cost of selling on Amazon, the platform's immense customer reach and potential for increased sales often make it a worthwhile investment for businesses willing to navigate the fee structure strategically. Sellers should regularly review their financial metrics and adjust their pricing strategies to ensure a profitable and sustainable business on Amazon.

Do You Have to Pay to Start Selling on Amazon?

While there are costs associated with selling on Amazon, consider them as investments in the growth of your business. The potential for increased visibility, customer reach, and revenue far outweigh the initial expenses. Conduct a thorough cost analysis, including product costs, Amazon fees, and additional marketing or fulfilment expenses, to clearly understand your financial commitments.

Where Do You Buy Products to Sell on Amazon?

You should always source products from reliable suppliers or consider creating your own unique items. Establish strong relationships with your suppliers, negotiate favourable terms, and ensure product quality to meet Amazon's standards. Consider diversifying your product sourcing to minimise risks associated with dependency on a single supplier.

Why Can Amazon Seller Accounts Be Deactivated?

Amazon maintains strict policies to ensure a trustworthy marketplace. Violating rules related to product quality, customer service, or intellectual property can result in account deactivation. FamiliariseFamiliarise yourself with Amazon's policies to avoid any issues. Monitor your account health regularly through the Seller Central dashboard and address any performance notifications promptly to maintain a positive standing.

Final Thoughts

Embarking on your Amazon journey as an Aussie small business owner is a significant step towards growth. Success on Amazon requires a combination of strategic planning, continuous learning, and adaptability. By staying informed, providing exceptional customer experiences, and optimising your presence on the platform, you'll be well on your way to unlocking the vast opportunities Amazon offers. Seize the moment, and let your business thrive in the dynamic world of e-commerce.

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