How to Sell on Amazon- Introduction
I wanted to write a short blog post about how to sell on Amazon.
Amazon is the largest e-commerce platform, and a great place to start a business, for more reasons than one.
Firstly, when people are searching for a product on Amazon, these people are ready to buy, so it is a website full of potential customers! This is great because it means that you don’t have to spend any extra money on marketing and such- as long as you choose the right product!
‘How to Sell on Amazon’ is an extensive topic, so this is a condensed version of the basics, however, I will be talking about more advanced strategies in future videos.
If you are interested in learning more about selling on Amazon, then the first video in my free video course is on this topic. You can join the course at http://www.tycoonfactory.com/freecourse
How to Sell on Amazon- First Step
Before you begin researching products to sell, you will need an Amazon seller account.
Amazon.com is by far the largest platform, so I would suggest utilising this platform at some point, regardless what country you are based in, however, it makes sense to start in your own country (particularly if you plan to ship items yourself.)
Below I have included links for Amazon.com and the European sign up form which covers UK, Spain, Italy, France and Germany.
These links will automatically try and get you to sign up for their ‘professional’ seller account which has a monthly fee. However, if you want to start on a lower budget then you can sign up for the individual account (where you only pay if you sell an item) by scrolling down the page and selecting this option.
Once you sign up, you are able to sell in most categories, however, some categories are gated which means you will have to submit an application before you can sell in them, this is a very easy process and involves submitting product photographs of the kind of stock you will be selling. Just ensure that before you start and look at stock, that the category you wish to sell in is available to you.
How to Sell on Amazon- Choosing a Product
Once you have your Amazon account, you need to decide what you are going to sell, and also, where you can get it!
Amazon actually give you the very best tool for deciding on what products you would like to sell, which is their best seller rank.
You can scroll down on the page and find the best seller rank (or BSR as it’s often shortened to) under the product details (see screenshot)
As long as the product is under 30,000 in most cases you will sell some, if you can find one under 10,000 then you are happy!
As you can see I chose to look at an Iphone in the screenshot which is number 6, so you can imagine how many of those are selling!
I actually managed to purchase some children’s camera from eBay once that I sold on Amazon with a £40 Profit, they had a BSR of 245 and they sold out within 45 minutes of going up for sale- I wish I had bought more!
The thing you may struggle with the branded/unbranded issue when you use this research method. Obviously, items that have large brand names attached to them such as Apple Iphone, you may well struggle to get wholesale, and so, it’s important to find products where there are 4 or 5 different sellers listings which are non branded under the 30K BSR.
Take some time on your research, write down 4-5 possible products that you found that
a- Have a BSR less than 30k
b- Have at least 5 variations of none branded (or at least brands you have never heard of) items under 30K for example, I have found 5 people selling none branded kitchen scales today with BSR under 30k.
Knowing there are relatively unknown brands selling well, means you stand a chance when you enter the market.
Make a note of the brand names too, because it’s not always impossible to find these items.
Next you need to start and look at where to source your stock…
How to Sell On Amazon- Stock Sourcing
First of all, you could utilise the retail arbitrage method of sourcing products to sell.
This involves going into physical stores local to you, and looking for items that are on sale. If you have the Amazon app, you can even scan the items in store to find out how much they are selling for and what their BSR is.
I found toy stores sales were particularly good for this, as you could get huge discounts, but I have known people even utilise this method in pound stores!
The thing you have to be careful of when using this method, is that there is enough profit in the items. Amazon charge almost 20% on most of their products in fees, so you need really to find products that sell for a minimum of 2 times the price on Amazon, even 3 times the price if you can (or of a higher priced item, then where you stand to make at least £10-20 per sale.)
Another way to find stock (which I briefly mentioned earlier) is buying on EBay to sell on Amazon. I have utilised this method many times in the past and its amazing how well it works!
It’s just a case of finding the items cheaper on EBay and purchasing from there. You could even contact the seller on EBay and ask if they would be willing to send directly to your customers (so effectively when you make a sale on Amazon, you purchase the product then send the customer address direct to the seller, asking them to leave out the invoice!)
Sign up for US Ebay: http://ebay.to/1UMpbTt
Sign up for UK Ebay: http://ebay.to/22vCtd5
This also works vice versa buying on Amazon to sell on Ebay) check out my free video course for more on this by clicking HERE.
My last method, which sounds totally obvious! Is to google it. I know this sounds really silly, but I have found some amazing suppliers this way, and even gone on to sell the products I was buying wholesale to my customers, simply because they had not thought about googling the item themselves.
This is one way you stand a change of finding branded items also.
So you would just search your keyword followed by the word supplier, wholesaler, dropshipper, depending on your chosen business method.
“Kitchen Scales Supplier”
It’s even better if you can add in your country.
“Pet supplies UK”
“Pet supplies wholesale UK”
If you are unaware, a dropshipper is someone who sends your products directly to your customer when you make a sale. This is amazing, because firstly, you don’t have to worry about packing, shipping or items going missing, but secondly, you don’t have to purchase any stock upfront! You will only purchase an item when you sell one.
However, reliable dropshippers that have good prices are difficult to find.
One of the sources I use to help source good dropshippers is a company called World Wide Brands
World Wide Brands vet their suppliers before allowing them onto their site, and literally have hundreds of suppliers and dropshippers listed in all categories, it is a paid tool, however, if you want to save time searching for suppliers it is an option.
Lastly, once you have purchased stock (unless you have opted to use a dropshipper), you could choose to send it off to FBA (fulfilment by Amazon) This is where you send your product to Amazon warehouse and they ship on your behalf to your customers.
It can be confusing when you first start learning how to sell on Amazon, and therefore you want to automate as much of the process as possible, which is where FBA can be a life saver! (I know I’m being dramatic again!)
The great thing about FBA is that you have no customer service to deal with either, so literally once the items have left your home and arrived at the FBA warehouse, your job is done and you can just wait for your cheque! It does add fees onto the cost of your Amazon service, however, if your product allows it, it’s always the best option to go for, as it allows you more freedom to work wherever you please, whenever you please.
I hope this guide on how to sell on Amazon has been helpful.
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