If you’re a successful entrepreneur (or one in the making), maybe you’re ready to start selling on Amazon. Find 9 amazing ways to succeed as a seller.
You are a successful entrepreneur (or possibly one in the making), and now you may be wondering how to set up your business on Amazon. With Amazon making up a little over 40% of market share in the Ecommerce space according to eMarketer, clearly you are thinking ahead. Even so, selling on Amazon can be a whole different ball game. We break it down for you below.
Our experience selling on Amazon has taught us a lot about what you need to thrive on a big online sales platform. We’ve studied what works for sellers, the latest online marketing tools and trends, as well as some missteps that new sellers tend to make along the way to put together this post.
Don’t expect to make a profit overnight once you open that Amazon seller account (that generally isn’t the rule for any type of business!). But, starting things out properly will mean that you’ll definitely be able to bypass some of the common mistakes that some sellers on Amazon make when starting out on the platform.
If you're craving even more, be sure to also check out our recent post on how to start your first Amazon store in seven steps.
It’s not reinventing the wheel – you just need some expert guidance. Here’s 9 practical tips to implement as a new seller that will help you make money on Amazon and set you up for long-term success.
There are so many details involved to grow a successful online business. From product descriptions to photos and videos, pricing, account set up and more, it can definitely be an overwhelming process. To combat this, a solid strategy is to keep it simple wherever you can.
Our advice to new Amazon sellers is to start with one marketable product that you’re passionate about (more on that in the next point) and begin building your store from there. And keep in mind that you don’t need to hire a village or overprice your products to gain maximum profitability.
We also mean small in the literal sense of the word. Where will you store your products? When brainstorming products to potentially sell on Amazon, make sure that you will have the capacity to manage your inventory. Too much of everything can leave you overwhelmed and burnt out before you even get started.
For example, High Desert began their business by only selling Alfalfa hay, and was able to find a niche product that they were passionate about in the pet industry. After seeing success with their first product, High Desert was able to expand and sell more products successfully on their Amazon store.
Once you’ve opened your seller account, follow this checklist for launching your first Amazon store and you’ll be on your way.
Don’t mind us for stating the obvious, but picking the wrong product is surprisingly one of the biggest mistakes that new Amazon sellers make. What is a good product to sell on Amazon? Here are a few ideas for picking the right product for your Amazon store that will help make you money.
Sell a product without any direct competition: Amazon puts all similar products on the same page, making it very difficult to come first on the list, or stand out in any way. If you pick a unique product to sell, you won’t have to share the screen with so many other sellers. Buyers will be able to click directly to your store.
Choose a product you’re passionate about: We hit on this briefly in our first point, but it's worth repeating. Seems obvious to choose something you're passionate about, right? Not necessarily. Many sellers go with the trends without considering their knowledge or even interest in the product. This isn’t sustainable. Not only that, this strategy makes a product much harder to market. Why make things harder on yourself?
Consider selling seasonal products: Time of year is so important when it comes to analyzing shopping trends, and the online world is no different. When you look at the top ten selling products on Amazon, you’ll notice that there’s at least one (if not more) seasonal products on the list. Seasonal items are things like pool floaties in the summer and planners for teachers in August. You don’t need to rethink your whole business model, but jump on the bandwagon once in a while and consider selling seasonal products to boost your sales.
This might be one of the biggest decisions to make when it comes to selling on Amazon. Many sellers are apprehensive at first, but having FBA status is the only way you can sign up for a lot of the extras like Amazon’s Brand Registry, Amazon Storefront, and more.
Plus, it’s really tough to stand out as an independent seller on the platform unless you have a known brand and your own tried and tested marketing strategy. Amazon FBA handles all storage and shipments for sellers like you, so you can focus on all of the other aspects of your business (which as you can see can be a lot, especially at first).
Opening an Amazon FBA professional seller account currently costs $39.99 a month, but it comes with a lot of free perks. Another way to make more money as a new seller on Amazon is to take advantage of those free tools at your disposal (and know how to use them). Amazon offers handfuls of free webinars and tutorials to help sellers navigate the world of online retail. Joining webinars and reading up on how-to guides and tutorials can save you time in the long run if you’re serious about being a professional seller on Amazon.
On top of that, there are handy tools like the FBA Revenue Calculator to help you figure out the most efficient way of fulfilling an order. FBA sellers can also apply to create their own Amazon Storefront, which is the opportunity to have an individual shop page for your products.
New sellers on Amazon know that it’s very difficult to get your product noticed on the platform. Things like reviews and sales will boost your store in search – but, you can’t get reviews if you don’t make sales, and you can’t get any sales if no one can find your store. A way out of this loop is through Amazon Ads.
By paying per click, sellers can get their products on the first page of the right shop category using Amazon Advertising. Your store’s ads can be customized and the setup process is pretty simple. More sellers nowadays are using Amazon Ads to boost sales and make money.
Many new sellers make the mistake of overpricing or even underpricing their products. The key to making more money as an Amazon seller is to know the right time to put a product on sale, when to offer promotions, and how to price your product compared to the competition.
Getting to know your customer base and analyzing the latest market trends will also help you figure out how to price your products for maximum profitability and make more money on Amazon.
For example, around the time of Halloween, certain costumes are going to be more in-demand (especially if you can get the products to the customer quickly). However, if the customer has other similar Halloween costumes to choose from other competitors, this will make it harder to price your product competitively.
Be sure to also learn more about the Buy Box, which is important for beating the competition.
Using the right keywords can be a game-changer for your Amazon store. It’s all about finding hidden keywords in the marketplace and using them to up your store’s sales. They will help you in search, in building your brand, and connecting with your audience. When it comes to an online store, keywords are important for:
Another important point is if you’re selling a product without much direct competition, finding the right keywords will be easy. You can label your products accurately, write in solid descriptions, and you’ll see your products come up in search. And the easier it is to find your store on Amazon, the more money you’ll make.
This is another easy mistake that could potentially cost you lots of income as an Amazon seller. Amazon’s marketplace has over 20 product categories to choose from, and if you file your product(s) incorrectly, it makes it harder for shoppers to find your store and your products.
We can’t emphasize enough how you shouldn’t rush setting up your Amazon shop and creating your listings. Putting in the time beforehand will help you make more of a profit in the future. You can learn more about Category, Product and Listing restrictions on Amazon here.
Don’t focus all of your copywriting skills only on your online shop – there are plenty of other avenues to communicate to your audience and let your brand shine.
Outside of Amazon, sellers can use marketing tools like social media, blogs, even writer platforms like Medium to help get the word out there. In a previous post, we even wrote about how influencers can be leveraged to promote your products. You don’t have to use every single platform or post things twice a day, but know that there are ways for you to post curated content to extend your reach and find new customers.
Ways to use content platforms to promote your store:
According to Amazon’s Small Business Empowerment Report for 2021, about two million small and medium-sized businesses currently operate on Amazon as third party sellers.
Lots of independent sellers can still set up their online shop and make a profit using the Amazon marketplace. You can register as an individual seller (non FBA) on Amazon without having a business license or registered brand and successfully sell your products. Once you start to make money however, you can register as a sole proprietor in the United States if you’re operating your business out of the U.S.