Sell on Amazon: How to Sell Without Inventory
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8 minutes 32 seconds
Want to start selling on Amazon? Looking for ideas on how to get started because you've never done it before? You've come to the right place! I've prepared a comprehensive guide for you on how to sell effectively on Amazon!
Why is it worth starting to sell on Amazon?
Let's start with a fundamental question: Why sell on Amazon? After all, quite a few other solutions are available in Poland—from popular marketplaces such as Allegro to e-commerce created on platforms such as Shopify to building your own small online store in WebWave.
Despite everything, an increasing percentage of sellers decide to move part of their business to Amazon. There are several reasons why this is a pretty good idea:
- Firstly, they become part of a retail space that integrates a wide variety of companies (from those with multi-million dollar capital to mini businesses selling handicrafts);
- Second, it opens up the opportunity to reach hundreds of millions of customers (seriously);
In other words, Amazon is a friendly environment for businesses of all sizes, allowing them to scale quickly.
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How to start selling on Amazon? Step-by-Step
Now it's time for more details. Find out how to become a full-fledged seller on Amazon!
1. Choosing an e-commerce plan
You need to start selling products by choosing a plan. The division is simple and easy to navigate. You can choose between:
- Individual plan – Choose this if you sell less than 40 items per month, don't need advanced tools or programs, and are still wondering what you really want to sell.
- Professional plan – This will be a better choice if you sell more than 40 items per month and want access to APIs and additional sales reports.
At this point, I cannot fail to mention Amazon Brand Registry. A tool that helps you personalize your brand and product pages, protect trademarks and intellectual property. It also allows you to take advantage of additional advertising options and recommendations for improving traffic and conversions.
In short, remember this name because you will need it!
2. Registering a seller account
It's time to create a seller account on Amazon. Before you do so, prepare the following:
- Your company email address or Amazon customer account
- A valid credit card (or international card)
- A valid passport or ID card
- Company registration details, including VAT number
The registration process itself is simple and intuitive. The only thing that may surprise you is the request for additional documents to verify your business.
3. Adding products for sale on Amazon
Already have an account? It's time to add products to it!
There's nothing complicated here either:
- Log in to Seller Central. This is nothing more than Amazon's sales center. In other words, it's a one-stop shop for managing your sales account, adding product information, updating inventory, managing payments, and finding useful content to help you navigate the platform. And finally, it's the place where you list all your products.
- Go to the “Catalog” tab and select “Add Products” (originally: Business Development: Selling on Amazon).
- Search for the product you want to sell. If it is not there yet, add a new one, providing all the necessary information, such as title, description, photos, price, etc.
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4. Order management
To sell your products, it's a good idea to download the Amazon Seller app. This will allow you to stay up to date with all your orders.
All you have to do is click on the “Manage Orders” tab to monitor your account – you'll see which products have been sold, what your customers' expectations are, and what actions you still need to take.
5. Choosing a logistics model – FBA or FBM?
Unfortunately, this is not the end of the decisions you have to make as an Amazon seller. You still have to select a logistics model, among other things. And please do this before you launch your offer.
Fortunately, the choice is limited to only two options:
- FBA, or Fulfillment by Amazon. You send your products to Amazon warehouses, and they take care of storage, packaging, and shipping. The advantage of this solution is access to Prime customers (also the most popular filter on the German market) and Amazon's return service.
- FMB, or Fulfillment by Merchant. You store, pack, and ship the products to customers yourself. The advantage is greater control than with Amazon fulfillment, and the disadvantage is more responsibilities.
6. Promoting products
There is no sale without proper marketing. The same applies to selling on Amazon. You need to work on the visibility of your offers. Amazon offers tools designed for this purpose, such as:
- Sponsored Products (Amazon Ads). Ads are billed on a cost-per-click (CPC) basis and promote specific products in search results.
- Sponsored Brands. This type of ad allows you to promote your entire business by showcasing several products at once.
7. Optimizing your offer
In point 5 of this article, I listed in detail what not to do. So what should you do to sell effectively on Amazon?
Optimize your offer! Take care of:
- Product title – it should be clear and contain the most important information;
- Description – it must be detailed, but place the greatest emphasis on the benefits of the purchase and the unique features of the product;
- Photos – make sure they are of the highest quality and show the product from different angles;
- Customer reviews – encourage buyers to leave reviews (e.g., by offering a discount on subsequent purchases).
8. Monitoring results and adjusting strategies
As a professional salesperson, you are concerned not only with sales figures but, above all, with customer satisfaction.
It seems that this is something that cannot be measured objectively. Wrong!
Observing a few key performance indicators ensures that users are satisfied with your product range and service.
9. Customer service
And now we move smoothly on to the last point, customer service. I don't need to explain to you that satisfied customers are the key to your sales success.
And again, you don't need to know complicated algorithms or hire a team of specialists (for now). All you need to do is answer questions and make sure you have a positive buyer experience. Amazon will quickly notice and appreciate this!
When to sell on Amazon, and when to set up your own online store?
Finally, we will clear up any doubts you may have. After all, the decision about where to sell online will be crucial for your business!
And each of these solutions—both selling on Amazon and having your own online store—has its pros and cons. I hope this comparison will help you make the best choice!
When to sell on Amazon?
Quick start and wide reach: Amazon is the perfect solution if you want to start selling quickly and reach millions of potential customers. The platform is well-established and enjoys a high level of trust, which increases the likelihood of customers making a purchase.
Simple logistics: The platform takes care of the storage, packaging, and shipping of your products. This is a huge convenience, especially for small businesses.
High conversion rate: Amazon customers are often focused on making a purchase, which translates into a higher conversion rate than your online store, where you have to attract and convince customers.
Market testing: Amazon is a good place to test new products and check demand for them.
Conclusion
Selling on Amazon can be a lever for your entire business.
Haven't tried your hand at international markets yet? Now is the best time to change that!
FAQ
What is an Amazon selling account?
An Amazon selling account is a necessary account for anyone looking to sell products in the Amazon store. It allows sellers to list their products, manage their orders, and track their sales performance. There are two types of accounts: Individual and Professional. The Professional selling plan is ideal for those who intend to sell a large volume of products and require additional features like bulk listing tools and advanced reporting.
How do I create an Amazon selling account?
To create an Amazon selling account, visit the Amazon Seller Central page and click on the "Register now" button. You'll need to provide your business information, including your name, address, and bank account details. Choose between the Individual or Professional selling plan based on your business needs. Once you complete the registration, you can start listing your products on Amazon.
What is the difference between Fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM)?
Fulfilled by Amazon (FBA) allows sellers to store their products in Amazon’s fulfillment centers. Amazon then takes care of storage, packaging, and shipping to customers. On the other hand, Fulfilled by Merchant (FBM) means that the seller is responsible for storage, shipping, and customer service. FBA can enhance your product visibility and potentially increase sales due to Amazon's fast shipping options.
Can I sell on Amazon without inventory?
Yes, you can sell on Amazon without holding inventory by using dropshipping. This method allows you to list products from suppliers, who will ship directly to customers when an order is placed. However, it’s essential to comply with Amazon's dropshipping policies and ensure excellent customer service.
What are product listings and how do I optimize them?
Product listings are the pages that display your products on Amazon. An optimized product listing includes an informative title, detailed product description, high-quality images, and relevant keywords. Using the Product Opportunity Explorer can help you identify trending keywords and optimize your listings to attract more customers.
How do I manage my inventory on Amazon?
Inventory management on Amazon involves keeping track of your stock levels and ensuring your products are available for sale. You can use Amazon’s inventory management tools to monitor your stock, set alerts for low inventory, and manage your shipments to fulfillment centers. This helps prevent stockouts and ensures efficient order fulfillment.
What is the Amazon Brand Registry and how can it help my business?
The Amazon Brand Registry is a program that helps brand owners protect their registered trademarks and create a more accurate representation of their brand on Amazon. Joining the registry provides access to tools that help you manage your product detail pages, respond to customer reviews, and monitor listings that violate your rights, thereby supporting your ecommerce business with Amazon.
How can I grow my business on Amazon?
To grow your business on Amazon, focus on optimizing your product listings, utilizing FBA for faster shipping, and leveraging Amazon’s advertising options to increase visibility. Regularly analyze your sales data and product reviews to identify improvement areas. Engaging with customers through exceptional service and timely responses can also enhance your reputation and boost sales.
What are the common policies I should be aware of when selling on Amazon?
When selling on Amazon, it’s crucial to adhere to their policies, which cover aspects like product authenticity, customer service, and return policies. Familiarize yourself with Amazon's seller guidelines to avoid account suspensions and ensure a smooth selling experience. Understanding these policies can help you maintain a good standing in the Amazon store.
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