One of the great benefits of being an internet entrepreneur starting today is that you don’t have to figure it out on your own. There are many tools and resources to help guide you through this process, community forums where you can ask questions, share tips, and hear stories, and examples of profitable online businesses to follow.
You can also use one of your existing and existing online platforms as a marketplace to start a business quickly and easily, without the need to create your own website, online store, or ecommerce site. In fact, these third-party services can form the backbone of your business in the long run.
Amazon, today’s most powerful online selling platform, accounted for nearly 39% of total e-commerce retail sales in 2020, is valued at over $260 billion, and will continue to grow in 2021. It is predicted to double. Over the years, this former bookstore has become the dominant online retailer selling everything from toilet paper to tennis shoes to high-tech electronics.
In addition to retail, Amazon operates in several industries. It offers its own entertainment streaming service through Amazon Prime, featuring syndicated shows as well as exclusive movies and TV shows3. We work with tech companies to sell Kindle tablets and related e-books or subscriptions. There is now even a store that sells bricks and mortars. And not to mention the fact that she took over her big grocery store Whole Foods.
Such massive growth points to a strong and innovative company. And while that certainly is positive, it’s not why you, as a solo Internet entrepreneur, should be interested in Amazon.
Opportunities for Third-Party Sellers Amazon
One of the more subtle features of the Amazon business model is that it allows people to sell products on their site. They have been offering this “third party sale” opportunity since 2006.
Even if you already have your own website and ecommerce store you may want to consider expanding your distribution into Amazon. You’ll be able to reach more potential customers and increase sales of first-time customers who may be leery of shopping on a lesser-known website. This is a lucrative opportunity. Sales to third-party companies generate billions of sales each year. With one slice of this pie, you can earn 5-6 figures as an Amazon seller. It’s easy too. With Amazon’s Seller Central dashboard, you can run your online business without your own website and let Amazon do all the nagging work. 7 (Of course, it’s OK to have a website or blog or be active on social media. You need to direct potential buyers to your Amazon page).
The Advantages of Selling on Amazon
For every month in 2021, Amazon.com was visited over 2 billion times—in some months it was more. Not every visitor will be in the market for your product, of course, but you’ll be in a prime position for those who search for products in your niche, and are ready to buy. As mentioned above this can be a great way to reach new and first-time customers.
Ready-made storefronts: By utilizing Amazon’s seller platform, you won’t have to worry about setting up an online shopping website.8 You can simply fit your products into existing templates for maximum functionality and quick display.
Shipping and fulfilment: Rather than purchasing postal supplies and building shipping procedures from scratch, you can follow the online dropping business to let Amazon’s systems handle the orders, delivery, etc.
One of the biggest hurdles facing any new internet entrepreneur is getting prospects to trust them enough to actually buy something. When you operate under the Amazon umbrella, there’s already a built-in level of trust.
How to Start Selling on Amazon
Once you’ve made the decision to sell your products through Amazon, it’s time to take care of formalities. You’ll need to create a seller profile, add your products, and attract customers.
Amazon has guides to walk you through each step, but you can expect the following:
- Choose and pay for a plan, either by each individual sale, or as a subscription model with the Professional plan.
- Decide on a strategy, whether selling your own brand, or reselling others.
- Create a seller account, where you can identify your business and streamline payment processes.
- Add your products, with detailed descriptions and any technical specifications required.
- Set pricing, and attract customers through one of Amazon’s many marketing add-ons.10
- You do have to fit into one of almost 70 categories in order to be a third-party seller.
- Some of the more common and most profitable categories are clothing, healthcare, beauty products, baby products, jewellery, home and garden items, cell phones, and electronics, though just about anything you’d want to sell is covered.
Fulfilment by Amazon
The hassle-free way to sell on this site is to become an Amazon FBA Seller.
This means that all your orders are “Fulfilment by Amazon.” This means that Amazon handles shipping, shipping and, where necessary, returns, refunds, or exchanges. Also, there is no need to store or manage inventory. All you have to do is ship your bulk purchases to one of our many Amazon warehouses across the country. Then, whenever someone places an order, the warehouse acts as an intermediary that takes the order and ships it to you. It’s a convenient business model that allows you to focus on marketing and increasing your take-home revenue.
How to Be Profitable as an Amazon Seller
Keep in mind that even though Amazon makes the process of selling easy, you’ll still have to put in the work to make your products sell. In order to make good money as an Amazon Seller, there are a few things to keep in mind.
Actively Market your Product
First and foremost, you can’t simply list your products on Amazon and then hope for enough people to stumble across them. You should be marketing your business on social media, on your blog, by sending emails to your network, or any other method that is suitable for your product. You can also incorporate tools and apps designed to enhance user engagement with your product, like chatbots or surveys.11 You may choose to create a unique social media account just for your product, and attract followers with contests or promotions. Tag your product in attractive images, and add links back to your Amazon Seller page.
Choose the Right Niche
When running a business on Amazon, you have to sell products that people are actually interested in. It’s important to stay informed about trends in your industry, and reflect that in your business’s online presence.
If you already have a product or a full business, you’ve likely spent some time developing its value and are familiar with your target buyer. If your offerings fall within one of Amazon’s popular categories, then you have a head start in finding the right audience. But if your product is obscure, you may be able to improve visibility (and sales) by linking it to a more popular category.
For long-term financial success, you’ll want to focus on products in markets that are always strong, like weight loss, natural health, self-development, yoga, consumer electronics, baby items, and others. A good way to gauge a profitable market is to check Amazon itself—what are the bestsellers? Remember it’s a good idea to stay in a big mainstream market that will continue to have demand for years to come.
Know The Market
It always pays to see what others are doing in your niche. See how they’re pricing their products, what type of marketing they’re using, how they are presenting and describing their products, how frequently they offer new products. Even if your Amazon store is doing well, there’s no guarantee it’ll stay that way. To avoid stagnation and stay profitable, it’s essential to keep up with the market.
A great way to do market research, especially on Amazon, is to read the positive and negative customer reviews. Find out what people hate and what people love about certain products then be sure that you meet those needs and avoid the pitfalls.
- Maximize Profits
You might start small with just one product on Amazon, and if you’re lucky it might be a one-hit wonder. Realistically, if you want to really make some money, you’re going to have to expand to sell a whole range of items. Again, study the market to see what’s selling well, and apply what you learn to your business to create additional or accompanying products.
It’s also important to take advantage of busy buying seasons. Traditional retailers make the bulk of their money each year around the holiday season, and it’s no different for online sellers.12 In fact, online retail has even developed its own “holidays” for shopping (like Cyber Monday, after Black Friday). Make sure you’re well-stocked to handle a flood of orders.
If you’re looking to compliment your online sales with a side-gig, there’s a way to pay yourself twice. By joining Amazon’s Associate’s program, you can include affiliate links to your own products in your marketing. So, when someone buys your product, you get not only get the profit from that sale, but also the referral commission.
Next Steps to Amazon Seller Success
Selling on Amazon is a great way for new online entrepreneurs to get started in this market. It takes the hassle out of selling online. Let somebody else do the hard work of shipping and managing inventory for you. And put a trusted brand to work on your behalf.
Frequently Asked Questions
- What is Sell on Amazon or SOA?What is Sell on Amazon or SOA?
Sell on Amazon is a program that enables you to list and sell your product on Amazon.in.
2. What products can I sell on Amazon.in?
You can sell items in the following categories:
Apparel, Automotive, Baby Products, Batteries, Beauty, Books, Consumables, Consumer Electronics (including Cameras and Video Games – Consoles), Digital Accessories (including Mobile Accessories, Electronics Accessories and PC Accessories), Groceries, Home, Jewellery, Kitchen, Luggage, Mobile Phones, Movies, Musical Instruments, Office and Stationary, Personal Care Appliances, Personal Computers, Pet Supplies, Software, Shoes and Handbags, Tablets, Toys, Video games (consoles and games) and Watches.
Please note that certain categories are restricted and require prior approval before you can start selling.
3. I don’t have a website; can I still sell on Amazon.in?
You don’t need a website to start selling on Amazon.in marketplace. Once your complete registration, you will have access to our Seller Central platform using which you can list your products for sale on amazon.in.
4. How and when do I get paid?
You are eligible to get paid for the order 7 days after the order is delivered. Amazon ensures payment for your sales (minus the Amazon Seller fees) is deposited securely into your bank account every 7 days, including your Pay on Delivery orders.
5. How Much Can You Make Selling on Amazon?
There are many factors that will affect your success as a third-party seller on Amazon—the popularity of your products, pricing, competition, marketing efforts, etc.—but almost half make between $1000 and $2500 per month, once they’re up and running.
6. What Are the Top Products Selling on Amazon?
The top selling products vary by year, season, trends, but Amazon keeps a constant tally of the most popular items if you’re looking for a snapshot view at any given moment.15 Over time, toys and games, electronics and gadgets, books, and clothing, have been consistently high.
7. Are There Fees for Selling on Amazon?
Yes, you do have to pay a fee for the privilege of selling on Amazon. If you sell more than 40 products a month, you’ll qualify for the professional plan, and you’ll pay $39.99 per month, as well as other fees for things like Amazon personnel handling your products. You can opt for a more modest plan, and pay $0.99 per sale, as well as other fees.
In all, growing your sales on Amazon starts with getting smarter about your selling strategy as well as how you spend your time.
- Determine if you will sell to Amazon or on Amazon.
- If you will privately label, if you will use FBA or you will fulfil yourself or through a 3PL solution that can get your products ready for FBA.
- Then, focus on outsource manual, repetitive tasks so you can focus on growing margins through negotiation and finding better tools.