selling on amazon

Selling On Amazon

Are you currently selling on Amazon? Do you have an Amazon Seller Central account but don’t know where to start? Over the past three months, Amazon posted $89 billion in sales, mostly due to the COVID-19 pandemic. More shoppers are avoiding brick and mortar stores in favor of shopping online. Amazon can be a profitable enterprise done correctly. In this blog post, I will give three tips for selling on Amazon Seller Central.

Sell High-Profit Margin Products

Selling on Amazon is a pricy endeavor. For small businesses, Adaptable Digital Solutions LLC recommends selling products that have a high-profit margin to cover the following fees:

Referral Fees: The referral fee is the amount Amazon takes from each sale sold on their platform. The referral fees range from 8%-20%, depending on the product category. The most common referral fee is 15%, so expect to pay that amount after each sale.

FBA Fees: Amazon charges FBA (Fulfillment by Amazon) fees, which varies based on the size/weight of the product and the amount of inventory stored. These fees only incur if you ship products to Amazon warehouses to be eligible for Prime shipping.

Some sellers might be inclined to increase the price of their product to cover all the fees. Unfortunately, Amazon requires that the price on Amazon be the same or lower than other marketplaces and your website.

Utilize Fulfilled by Amazon

According to Statista, there are currently 133.1 Amazon Prime members, and by 2022 that number will grow to 143 million. Amazon Prime members get free two-day shipping and will filter out the products that are not eligible for Prime shipping. The products without the Prime badge are missing out on millions of customers.

When selling on Amazon, we recommend signing up for FBA (Fulfilled by Amazon) vs. only FBM (Fulfilled by Merchant). As discussed previously, there are fees associated with shipping products to Amazon. However, the benefit of having the Prime badge on the detail page and the discounted shipping rates outweighs the costs incurred.

selling on amazon

Be Patient and Be Prepared to Spend

When you first start selling on Amazon, it is essential to know right from the start that it will take 3-6 months to see the benefits fully. Adaptable Digital Solutions LLC advises small businesses to be patient when first starting. Think about when you first started your business. Did sales come right away, or did it take a while to build up momentum?

Amazon is a pay to play e-commerce platform, meaning, to be successful, you must spend on advertising or run deals such as coupons. The SEO on Amazon works a little differently than Google. At the same time, the Amazon SEO algorithm crawls for keywords, the most crucial factor in sales. Increasing sales is the best way to have your detail page (product listing) show up on the first page.

How can you increase sales if your product shows up on the 3rd or 4th search results page on Amazon? The best way is to run PPC advertising campaigns, which allows your listing to show up on the top of the page or other product pages. If you have good reviews, a great main image, and competitive price, you can convert those clicks into sales, which in turn helps your organic listings move up on search results.

Selling on Amazon can be a daunting task. But, if done correctly, it can lead to increased sales and help improve your brand awareness. By selling high margin products, taking advantage of Prime shipping, and being patient and willing to spend, you can set your company up for great success selling on Amazon.

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