Amazon is, without a doubt, the most crucial online store. Anyone who has surfed the internet to buy something will undoubtedly have landed on its pages at least once. Many companies, therefore, may be wondering if it is possible to sell on Amazon. The answer, we tell you right away, is yes. The next question, therefore, will undoubtedly be: how to sell on Amazon? Let’s see it together.
HOW TO SELL ON AMAZON
TYPES OF AMAZON SELLERS
Let’s start by distinguishing the types of Amazon sellers. Those who think they are making less than 40 sales per month will open a Basic Account. On the other hand, those who believe they are making more than 40 sales per month can subscribe with a Pro Account. What is the difference between these two types of accounts?
AMAZON BASIC ACCOUNT FEATURES
The Amazon Basic Account pricing tier has three rates:
fixed closing commission: it is a fixed commission that Amazon applies on each sale;
referral fee: it is a variable fee that Amazon applies depending on the category of the item for product referral;
Variable Closing Fee: When it comes to books, music, videos, and DVDs, alongside the referral fee, Amazon also charges a variable sales fee.
Regarding the fixed closing fee, the Basic Accounts are subject to a fee of 0.99 euros. As for the reporting fees and the variable closing fees.
FEATURES OF AMAZON PRO ACCOUNTS
Regarding Amazon Pro Accounts, the rate plan includes:
monthly subscription fee: it is a fixed fee that every Amazon Pro seller must pay as a minimum fee;
referral fee: it is a variable fee, depending on the product category, that Amazon applies to the product sold for reporting to the buyer;
the variable closing commission is a variable commission used by Amazon on so-called Media products: books, music, videos, and DVDs.
For Pro Accounts, the subscription fee costs 39.00 euros per month. About the referral fee and the variable closing fee, we also suggest, in this case, referring directly to the Amazon site.
HOW TO REGISTER FOR AMAZON SALE
Signing up for the Amazon Selling Affiliate Program is extremely simple. Before starting the procedure, it is advisable to have the following information available:
- email address
- valid credit card
- type of business
- place and date of foundation of the company
- registration number in the Business Register
- VAT number
- telephone number of the contact person of the company
- identification documents of the company delegate and the beneficiary
- open a current account and IBAN code
As for the actual registration procedure to the Amazon affiliate system, it is straightforward. For that, we refer you directly to the marketplace site, where it will be sufficient to follow the instructions.
THE ADVANTAGES OF SELL ON AMAZON
For an entrepreneur to decide to join, they need to see the benefits of selling on Amazon. The latter lists five main advantages:
- earn more: it is undeniable that selling on a marketplace opens your store to a much wider audience than we will ever have with a physical store;
- cut costs:, if you want to reach the same audience with one or more shops, the prices would be higher than online; in addition, Amazon also offers a logistics service that allows you to deprive yourself of your own;
- sell in the European Union: selling online not only opens the shop to the national public but, if desired, also to that of the European Union; in particular: United Kingdom, Germany, France, Italy and Spain;
- protect yourself from fraud: Amazon provides a series of security systems that prevent you, and your customers, from falling into the trap of deception;
- save time: thanks to Amazon, the company grows with a time commitment that can be less than required for a physical store.
The benefits of Amazon membership, however, don’t stop there. The more time passes, the greater the number of people who buy online becomes. Although the online market is already crowded, moving today allows you to be ahead of those who remain anchored to the old logic of commerce.
THE DISADVANTAGES OF SELLON AMAZON
Like all strategies, there can also be disadvantages to selling on Amazon. The first concerns the profit margin that can be made on each sale. Considering the affiliate costs, it can become difficult to stay profitable. Don’t give up, though. As the expert in e-commerce, Giovanni Cappellotto, suggests, affiliation prices are often present in any e-commerce, but they are usually not calculated adequately.
THE DIFFERENCES BETWEEN EBAY AND AMAZON: How to sell on amazon
For the first time, those looking to marketplaces could ask themselves: what is the difference between eBay and Amazon? Unlike Amazon, which we could define as a vast shopping arcade where each seller has their shop, eBay supermarket where each seller puts their products in competition with those of other sellers.
In any case, whether it is one of the other marketplaces, it does not matter. The important thing is to identify your strategy and pursue it to the end. As always in business, improvising is not possible. Clear ideas are needed, which means planning in the short, medium and long term. To keep everything under control, a management software like Maestro can be the ideal solution. Thanks to the possibility of keeping inventory under control in real-time and creating sales graphs, it is possible to conduct in-depth analyses of the products to be sold online. Indeed, in its Maestro Gold version, the Geniosoft software is even able to manage product sheets, connecting directly with the warehouse, as well as orders placed through eBay.
Also Read: How much does hair grow in a month
