How to Sell on Amazon for Beginners: A Comprehensive Guide

Adam E. Wilkens / Darren DeMatas

Published:

Selling on Amazon is a great way to make money and grow your business. If you’re just starting out, this guide on how to sell on Amazon will walk you through the steps to become a successful Amazon seller. Let’s dive in!

Step 1: Choose Your Business Model

First, you need to decide how you want to sell on Amazon. Here are the main ways:

1. Private Label: You create your brand and products. This means designing something unique and working with manufacturers to produce it.

2. Wholesale: You buy products in bulk from manufacturers or distributors and sell them at a higher price.

3. Retail Arbitrage: You buy products on sale or clearance from local stores and resell them on Amazon.

4. Online Arbitrage: Similar to retail arbitrage, you buy products from other online stores instead of local ones.

5. Dropshipping: You sell products without keeping any inventory. When a customer orders, you buy the product from a third party, and they ship it directly to the customer.

Step 2: Find Products to Sell on Amazon

Finding the right products is key to your success. Here’s how to find profitable products:

1. Research Tools: Use tools like AMZScout, Jungle Scout, and Helium 10 to see what products are popular and have low competition.

2. Product Criteria: Look for products that are priced between $10 and $100, are lightweight, and have fewer than 200 reviews. Avoid electronics and complicated items.

3. Check Demand: Make sure the products you choose are in high demand but not too competitive.

Step 3: Create an Amazon Seller Account

You need to set up an account to sell on Amazon. There are two types:

1. Individual Account: No monthly fee, but you pay $0.99 for each item sold. Good for beginners with fewer than 40 sales a month.

2. Professional Account: Costs $39.99 per month with no per-item fee. Best for sellers with more than 40 sales a month.

Step 4: Manage Your Inventory and Fulfillment

Next, you need to decide how to handle your inventory and shipping:

1. Fulfillment by Amazon (FBA): Amazon stores, packs, and ships your products for you. They also handle customer service and returns. This is the easiest option for most sellers.

2. Fulfillment by Merchant (FBM): You store and ship your products yourself. This can save money but requires more work.

Step 5: List Your Products

Creating a great product listing is important. Here’s what you need:

1. Title: Make it clear and include important keywords.

2. Description: Write a detailed and helpful description.

3. Bullet Points: Highlight key features and benefits.

4. Images: Use high-quality photos showing different angles and uses of the product.

Step 6: Promote Your Products

Promoting your products helps you get more sales. Here are some ways to do it:

1. Amazon Advertising: Use Amazon’s advertising options, like Sponsored Products, to increase visibility.

2. Social Media: Share your products on Facebook, Instagram, and other platforms. Influencers: Partner with influencers to reach more people.

3. Email Marketing: Send updates and promotions to your email subscribers.

Step 7: Review Your Sales

Regularly check your sales to see what’s working and what’s not. Use Amazon’s tools to track:

1. Sales Performance: Look at your sales numbers and see which products are doing well.

2. Inventory Levels: Make sure you always have enough stock.

3. Customer Feedback: Read reviews and see how you can improve.

Beginner Tips To Sell on Amazon

1. Avoid Restricted Categories: Some categories need approval from Amazon, so it’s best to avoid them at first.

2. Get UPC Codes: You’ll need a UPC code for each product. Buy them from the Global Standard 1 (GS1) website.

3. Use Amazon Ads: Advertising on Amazon can help you get more sales.

4. Great Customer Service: Good customer service leads to happy customers and positive reviews.

Conclusion

Selling on Amazon can be a great way to make money if you follow these steps. Choose the right business model, find good products, manage your inventory well, create great listings, and promote your products. With dedication and effort, you can build a successful business on Amazon.

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Frequently Asked Questions

How much will it cost to start selling on Amazon?

Starting costs include Amazon seller fees, product costs, shipping, and marketing. You can expect to spend around $500 to $1,000 initially.

How much does a beginner Amazon seller make?

Earnings vary, but beginners can make between $500 and $2,000 monthly, depending on product choice and marketing efforts.

Is selling on Amazon easy?

It requires effort and learning, but with the right approach and tools, it can become manageable and profitable.

What should you do first when selling on Amazon?

First, choose your business model and research profitable products. Then, create your Amazon seller account and start listing your products.