How to Sell on Amazon in 2021: Selling on Amazon Guide

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Wondering how to sell on Amazon? The first step is to sync Amazon and Shopify. Shopify is an official Amazon partner, allowing entrepreneurs like you to sell your products on Amazon . You can use Amazon as an additional sales channel to grow your revenue. 

In this article, you’ll learn how to start selling on Amazon, and why you should list your products on the marketplace  . In addition, you’ll learn a few tricks to maximize your Amazon sales. We’ll also debunk myths about selling on Amazon for beginners.

NOTE: When it comes to how to sell on Amazon, there are lots of options. But… you cannot use Oberlo to dropship on Amazon.


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Why You Should Sell on Amazon

1. It’s the biggest online sales channel

Amazon is the biggest online sales channel for an online retailer. With over 1.9 million active Amazon sellers, the site proves to be a powerhouse. 

Shoppers will find best selling items on Amazon first. No wonder 89 percent of them say they are more likely to buy items from Amazon than other ecommerce sites.The massive ecommerce store carries millions of products in various categories.

Don’t be discouraged by the amount of competition you might face. It’s better to be where your customers are by selling stuff on Amazon. Don’t let your competition take all of your potential sales.

2. Additional stream of revenue

The main reason you should learn how to sell stuff on Amazon is that you’ll have access to a second stream of income. When it comes to selling through Amazon, you’ll want to be wherever your customers are. 

If your customers are on Facebook, create Facebook ads to reach out to them. If your customers love reading and learning about your niche, create a blog so that they’ll find you easily. If your customers shop on Amazon, sell on Amazon. You’ll be able to grow your sales and even connect with new customers by selling on the marketplace.

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3. Trusted brand

Amazon is a recognized and trusted brand. Amazon was founded in 1994. Thus, it has over 24 years of relationship and trust building under its belt. If your store lacks brand recognition because it’s relatively new, customers may feel safer buying stuff from Amazon than your store. 

By selling stuff on Amazon through your own store, you can build a great brand image and reputation. And when selling on Amazon, you can get access to the customers who may be a bit more risk averse. 

Over time, the customers who consistently buy from you may eventually start buying directly from your store.

4. Many people have an account

As mentioned earlier, Amazon has millions of active users. In the US, there are currently 150 million Amazon Prime subscribers. The average Amazon Prime user spends $1400 a year on Amazon products alone. 

Thus, when it comes to ecommerce, Amazon has a huge chunk of market share in the industry. Those with Amazon Prime accounts will likely search on Amazon for items they want since they have special perks as a member.

It’s important to be where your customers are. If your primary audience is in the US, then selling products on Amazon is worthwhile.

5. Minimal fee

One of the perks of selling on Amazon is that there aren’t any listing fees unless selling as an individual rather than a merchant account. You can add as many products to your Amazon store as your heart desires. With an Amazon Pro Merchant account, you’ll be required to pay $39.99 a month and a percentage of your sale. If you sell a lot of items on Amazon, the monthly fee seems minimal.

6. Proven success model

Many of those who sell stuff on Amazon have achieved big payouts on the platform. About 0.3% of Amazon sellers make over $100 million in sales on Amazon alone, with 0.6% making over $50 million. The number may seem small but $100 million is a lot of money for a brand to make off only one sales channel. Notably, 51% of Amazon sellers make over $100,000 in sales each year so odds are definitely in your favor. With consistent effort, you too can be an Amazon success story.

4 Myths of Selling on Amazon

1. Amazon’s marketplace is too crowded

While there are hundreds of millions of products on Amazon, there’s still room for a business like yours to make money. 

Even if you can’t compete on price, it’s still possible for a potential Amazon customer to choose your product over a competitor or even supplier.

Don’t add barriers. Even if you only make an additional $10,000 in revenue from selling stuff on Amazon, that’s still more than you would have had by avoiding it.

2. You can set it and forget it

Often times, entrepreneurs think marketplaces will result in people finding your products on their own. You need to be proactive about generating sales, especially in the beginning.

Once you’ve built up a few sales and received positive reviews, you’ll be more likely to be found organically. 

3. You can de-prioritize your store

The reality is Amazon is only one of the online selling websites out there. You can also sell on other platforms. However, your own online store can prove to be more valuable over the long term as you can eventually sell it. 

Also, if Amazon were to ever go away or close your shop, you’d still have your online store to fall back on. 

Never become dependent on one sales channel. The more streams of income your business has, the less risky it is for you if any of them ever stop panning out.

4. New products can’t get organic traffic

New products can get organic traffic if they’re well optimized. 

Also, if you send paid traffic to your products as soon as you upload them and focus on getting sales and reviews early on, your new products can also get organic traffic. 

Potential customers may be wary of items without reviews, but there will still be those who buy products without them if it’s something they want.

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What is Amazon FBA or Fulfilled by Amazon?

Amazon FBA (Fulfilled by Amazon) is a service Amazon provides where Amazon carries your inventory and ships the products to your customers on your behalf. Items that are fulfilled by Amazon are able to reach customers with faster shipping times.

When investigating how to sell products on Amazon, you’ll want to think about whether you want to ship items to customers yourself or have Amazon do it for you. 

If you ship it out yourself, you can save additional Amazon fees. However, the mega online store has shipping guidelines you’ll still need to adhere to. If you don’t consistently deliver products within a reasonable time frame you might eventually get booted off the platform.

Plus, by taking advantage of Amazon FBA, Amazon will take over the bulk of the work allowing you to have one less responsibility to worry about. Amazon FBA sellers also qualify for free shipping on orders over $49 for all items except books (book sellers qualify for free shipping on orders over $25). 

Note: Using Amazon FBA doesn’t exempt you from selling on other sales channels. In other words, you can continue selling on your online store, Instagram, Facebook, and other marketplaces like Walmart and eBay.

How to Become An Amazon Seller in 8 Steps

1. Choose What to Sell on Amazon

The first step in learning how to sell on Amazon is figuring out what to sell on Amazon. To get product ideas, you can use Oberlo as an inspiration. 

The dropshipping platform has thousands of products in different categories. Check out the items listed to get ideas for what you can sell on the Amazon marketplace.

2. Does your store meet all requirements?

To become an Amazon seller, you’ll need to ensure that you meet all requirements and that your products aren’t restricted. 

Niches like baby products, books, pet supplies, toys & games can start an Amazon store quickly. You can view additional eligible stores. If your niche isn’t listed there, you’ll need to apply for approval. 

Amazon also has restricted products such as hoverboards, explosives, and weapons, so avoid selling anything that falls under Amazon’s restriction guidelines..

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3. Create a professional seller account

If you currently run a Shopify store, you’ll likely need a professional Amazon account. 

In the individual selling plan, every time you sell a product a .99 cent Amazon listing fee gets added which eats away at your margins, especially on top of other Amazon fees. 

With a professional plan, you pay a $39.99 monthly subscription and a few category related fees with a professional seller account.

To register, go to Amazon Seller Central where you’ll have to provide your name, email, and password.

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Next, you’ll need to share your business details.

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Then, you’ll need to continue on with the process by providing Amazon your business’ billing, tax, and product information.

4. Apply for category approval

When working through the process of selling on Amazon you’ll need to apply for category approval. Some categories require approval from Amazon before they can be added.

Popular categories such as Clothing & Accessories, Shoes, Handbags & Sunglasses, and Jewelry require approval before selling.

Take a look at the approval requirements for each category to determine your specific next steps.

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5. Connect your Amazon account to your Shopify account

After receiving Amazon approval, connect your Amazon seller account to your Shopify account. On the left navigation of the Shopify dashboard, look for the + button beside Sales Channels and click on it.

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A pop-up will appear where Amazon is listed first. Click Add Channel.

how to sell on amazon as a sales channel

Next, click ‘Connect to Amazon.’

connect amazon to shopify 6. Create Listings for Products

Under the sales channel, you’ll see Amazon listed. Click on it, then click the create listing button. 

Afterwards, you’ll want to click Select Product. There will be two options to choose from. As a private label seller, you should click the lower option ‘This product is made by another brand.’ 

Choosing the option will allow you to search for the AliExpress product to become an additional seller. After finding the product you sell, click Select. Lastly, you’ll need to select Publish. And repeat the process for each item.

7. Streamline Your Inventory

Effective inventory management is the key to success when selling products on Amazon. It’s crucial to keep your product inventory level healthy for your direct customers and those buying through the marketplace. 

As you get orders on Amazon, your inventory levels will start to decrease, so make sure to update your stock to reflect the current product availability on your Amazon listing.

8. Send Traffic to Amazon Store

The most important part in learning how to sell things on Amazon is knowing how to promote the items. There are a number of ways to promote your Amazon products. Here are a few ideas to get started:

  • To sell items on Amazon, you’ll need to take advantage of every audience you own. For example, if you have an email list for your business that you’ve been building for a while, you can send them a link to your Amazon store. The upside to using your email traffic is that they’re already familiar with your brand. Loyal customers will likely also write positive reviews which is what you’ll need to sell stuff on Amazon to people beyond your email list.
  • Another tips for selling on Amazon is by adding your product links to Pinterest group boards. Most small brands don’t have a lot of social media followers. That’s why group boards are a great way to tap into a big audience. You can use a tool like PinGroupie to find relevant boards for your niche.
  • Amazon ads is one of the most popular ways to sell on Amazon if you don’t have an audience of your own. To get more visibility for your product, an ad budget can help position you above your competitors who sell similar products. If you’re promoting the best selling items on Amazon on your account, the product will sell itself when seen by customers.

How to Sell on Amazon Successfully: 5 Tips

1. Treat your Amazon store like your actual shop

If you sell stuff on Amazon, it won’t make you six figures in sales just because you uploaded products. You’ll need to treat it like your online store. 

You’ll need to drive traffic to the Amazon product pages whether with Amazon ads or other methods. You’ll need to optimize product pages. You’ll need to get great reviews. You’ll need to offer great customer service. 

In a nutshell, Your brand still has to live up to a great reputation even if items are sold on Amazon.

2. Get online reviews early on

Focus on getting positive reviews early on. Go the extra mile for your customers when you sell stuff on Amazon. Issue refunds quickly if a customer is upset. In the event that you get a negative review, communicate with the customer to try to have it removed. 

You can also offer a replacement quickly and great service to keep your customers happy. After going above and beyond, many customers will change their review if asked. Most sellers have experienced that having a 95% rating has led to a better ranking in the Amazon search engine, allowing them to sell products on Amazon in higher quantities.

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3. Focus on optimizing your product pages

When selling on Amazon, it’s important to optimize your product pages. You can use a tool like Merchant Words to determine the estimated monthly search volume for keywords as well as which categories they dominate in.

By choosing popular keywords you can improve your chances of being found organically by customers. Also, you’ll want to consider which product categories your products would perform well in. Keyword tools can also help you identify what items to sell on Amazon.

4. Pay for Amazon ads

Paying for Amazon ads is optional and not essential for growing your Amazon presence. One of the perks for paying for ads is that you get access to Amazon’s search data making selling on Amazon easier.

The cost per click is often fairly low on Amazon compared to other ad networks. Also, the product ad blends in well with the other products which makes it likely that a customer will click on the product if it meets their needs.

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5. Register as a professional seller

Having a professional seller account will save your Amazon store money if you’re uploading countless products. As a professional, you can add as many products as you wish. Remember, there’s no listing fees. 

The more products you list on Amazon, the more likely that you’ll be found. Also, the more items you sell on Amazon, the more money you can potentially make. Product volume, especially on marketplaces, can be great for getting sales.

FAQ

How to sell on Amazon for free?

Sign up as an individual seller. This saves you from the monthly fee associated with a professional seller account. 

How to sell on Amazon without buying products?

Register for Merch by Amazon. This is Amazon’s version of print on demand. You just design merchandise and earn every time a customer buys your product.

Is selling on Amazon profitable?

Selling on Amazon is still a great way to earn profits. According to JungleScout, 62% of new sellers saw an increase in profits in 2020, and 80% are planning to continue using Amazon to sell products in 2021.

Conclusion

Becoming an Amazon seller can help you earn additional income for your business while also finding new customers you wouldn’t have had access to on your own. 

In the beginning, your focus for selling products on Amazon should be on getting product reviews so you can build social proof and trust. Take advantage of the email lists, social media followers, advertising services, and Amazon affiliates at your disposal. 

With the best selling items on Amazon in your shop, you’ll be unstoppable.

Summary: How to Sell on Amazon in 2021

  1. Choose your product niche
  2. View eligibility requirements
  3. Create a professional seller account
  4. Apply for category approval
  5. Connect your Amazon account to your Shopify account
  6. Create listings for products
  7. Manage your inventory
  8. Send traffic to Amazon listings

Is there anything else you’d like to learn about how to sell on Amazon? Let us know in the comments below!

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