Amazon has definitely become the giant
of the retail industry. You can find
millions of products being sold
by Amazon directly and by an army
of third party sellers that list their
products on the e-commerce juggernaut.
Amazon allows third party sellers,
such as me, to list their products
and either have the orders fulfilled by
Amazon, or the third party sellers
can pack and send out orders directly
to the buyers.
According to Amazon, 40% of their
unit sales come from third party sellers.
That means that there are people just
like you and me that are collectively
selling millions of products.
You need to register as a seller.
You can register as an individual
or professional seller. There is
a different fee structure for
individual and professional sellers,
plus different categories for which they can
sell items in. If you are planning
on listing many items, and conducting
a large volume business, I would recommend
that you set yourself up as a professional
Research the listings on Amazon
and see which products are
in high demand. You can see
that information by looking at the
sales rank of an item, and the
feedback which the item
Or, you can look at the
merchandise which you currently have
and determine its sales potential
on Amazon. If you see that the competition
is relatively low, or non existent for really unique
products, you might consider selling the merchandise
which you already have. The only challenge is that it's
possible that if there is no competition it is
because there is no demand for it.
And even if there is demand for your product,
you are going to have to wait to receive
positive reviews from customers
until you can really ramp up your sales.
People like purchasing products that
have good reviews, so if you are introducing
a brand new product not previously
available on Amazon, it will take you
time to get your first few sales
You can also list your items
as part of already existing listings.
That means that if for example
Coach is selling a specific handbag
which you also have, you can include
yourself as a third party seller in the
Look for wholesale sources for the merchandise
that you will be listing on Amazon.
The merchandise should be ready for retail,
which means that it is in brand new condition,
and has an ISBN number. I believe you
can order an ISBN number if you
are creating your own product.
I know that many sellers
look for wholesalers that specifically carry products
for Amazon, which is fine, but they should
realize that all Amazon sellers will have
access to the same products, so the competition
will be intense.
I personally prefer to look for really good wholesale
and closeout deals, and then decide the best
place to sell them at.
I would suggest that you visit
closeout warehouses and determine
which of the products that you
find are suitable for Amazon.
You can also call manufacturers
and see if they have any closeouts
which they can offer you at
below wholesale prices. Make sure
that the items are in brand new working
condition. You want to keep a
favorable rating with your customers and
you do not want your account to be
You have to decide if you
want to fulfill your own orders
or if you want Amazon to
fulfill the orders for you.
If you fulfill your own orders
you will be sending the merchandise
directly to the customers, and Amazon
will give you a set amount for the
If you can send the merchandise
to your customers at a lower shipping cost
Amazon will allow you to keep the difference.
It's really important that you ship out the items
within the time period that you are required to do so.
You can also send in your merchandise to Amazon,
and under their Fulfillment by Amazon (FBA)
program the e-commerce retailer will
fulfill the orders for you. While this option
might sound ideal, keep in mind that you
will be charged storage and other order processing
fees. But on the other hand you won't have to
worry about packing and sending out
Another advantage of having Amazon
send out your orders is that products
that Amazon has in their warehouses
can be eligible for Prime, which is
a membership program that offers
free shipping to customers.
Customers like purchasing products that
are covered by Prime because they
wilbe eligible for free shipping, will receive their
order within days, and know that they
are purchasing directly from Amazon,
as opposed to a third party seller
that might be challenging to
I would recommend using
Amazon's fulfillment services
for products that move quickly,
this way you won't be subject
to high storage fees.
Amazon has an email newsletter
that they send to their sellers.
The newsletter provides you with
tips as well as lets you know
which products are currently in
high demand. Make sure that
you read the newsletter so that
you can take advantage of the
insider information that you
are being provided with.
Visit the forums
where sellers discuss
important issues, ask questions,
and share stories that can
inspire and benefit you.
Like any business endeavor,
you want to keep on top of the latest trends
and insights. There are many books available
at Barnes and Noble, as well as from online
book sellers, that can provide you with
expert advice on running your Amazon
If you see a consumer trend
starting to pick up steam
you will want to see which wholesale
products you can purchase to meet that demand.
In a way, online and offline sales are
very similar. It's a matter of
matching the right products
to consumer demand.
Make sure to carefully track the
progress of your Amazon sales.
This way you will be able to spot
trends such as the increase in
popularity of an item, as well
as your actual profitability.
You should definitely give
your business time to grow,
but you also want to evaluate
your progress so that you
can make decisions based on
factually correct information,
and not simply emotions.
Whether you are reselling
merchandise that you are obtaining
from wholesale sources, or creating your
own merchandise, you should
definitely consider this powerful online