With a market capitalization of 1 trillion dollars, Amazon is by far the most profitable E-commerce platform in the world. Over the years the company has been innovating different ways to keep customers satisfied as well as give shareholders value for their money. Amazon is not only profitable to the shareholders but has also developed several revenue streams the general public can earn from.
From affiliate marketing to different reseller packages, many have been able to build major means of income through Amazon. Their affiliate commission payout is currently considered the best in the industry.
In view of this and many more is why we want to discuss How to sell on Amazon and earn profitably. We shall also answer questions bordering on How Can I Become An Amazon Seller In 2024 as well as other profitable ways to make money in Amazon as a seller.
Amazon currently boasts of over 3 million sellers/merchants offering products from all over the world. Amazon has an FBA (Fulfillment By Amazon) program that provides services and facilities that accelerate the profitability of sellers on the platform.
Is it profitable to sell on Amazon?
The question above has many answers. Online-contents can promise you a lot about making money on Amazon. However, the fact remains that you might not break even if you fail to work hard towards improving your ratings and quality of products. For the first few weeks or months, you might not actually be rated as a top seller however, with continuous improvement and work you can scale up.
Educate and equip yourself with enough knowledge on how the Amazon platform works. Amazon has millions of traffic every day mainly from people looking for products to buy. It is profitable if you position yourself well enough to meet the needs of these people.
According to Enterprenuer.com, average sellers make $250 per month which is bound to rise considerably high. Therefore, our answer to your “Is it profitable to sell on Amazon question is yes, it is profitable to sell on Amazon.
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How much does it cost to sell on Amazon?
There are four fees sellers and merchants are likely to incur while selling on Amazon. The Selling Plan Fee, The Referral Fee, Fulfillment Fees, and other Miscellaneous Fees. We shall give you a breakdown for a clear view of what to expect while setting up your Amazon store.
1. The Selling Plan Fee:
The charge for the selling plan differs. Merchants mostly those that make sales of up to 40 product units or more are charged $39.99 Monthly. While individual sellers are charged $0.99 for every product sold on the platform.
Using the professional account of $39.99 Monthly fee gives one access to many other features on the platform while the individual seller gives limited features.
However, both plans are ideal based on the level you are operating or intend to operate on the platform. That means the fees come down to your level of merchandise on the platform.
2. The Referral Fee:
The referral fee here is basically the amount charged on every single product sold on Amazon market places. The fee borders of product category, logistics costs, product type, among other things. Devices and accessories take up to 45% in referral fees while appliances are just 8% in referral fees. The differences continue as you browse through the categories of Amazon referral fees.
Visit this webste for the full list of the referral fees.
3. Fulfillment Fees:
As we said earlier, Amazon has a feature call Fulfillment by Amazon (FBA). This feature enables sellers to use some Amazon Merchant facilities and tools while running their stores on the platform.
However, this fee depends only on whether you use FBA for your logistics need or you do it yourself. The charge for FBA subscribers differs from those that do their fulfillment their selves.
Amazon FBA covers picking and packing, customer care, return on products as well as product handling among many other things. The cost of FBA also borders a lot on the dimensions and weight of the product.
Non-FBA professional account users can set their own shipping rates except for individual sellers who make use of Amazon rates.
Visit this website for more on fulfillment fees.
4. Miscellaneous Fees:
Your question of how does it cost to sell on Amazon will not be complete if we fail to include the costs of other optional and additional costs.
Some of these costs are not statutory like others and can be avoided. This includes the inventory costs, listing fees, premium account services among many other things.
Visit this website for all you need to know.
We are sure that you never expected so many fees while searching for the cost of selling on Amazon. Nevertheless, the most important is to set up your store first and start making sales.
The fees do not hurt earnings if your store is well structured. Remember a good number of the fees are optional and some are paid by the customers indirectly.
Therefore with a minimum of $500 or $200, you can set up your Amazon store.
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Is it hard to become an Amazon seller?
If you are looking for a place where you just list products for sale without much documentation and verification like classifieds platforms, then Amazon is not for you.
Amazon is structured in a way that sellers are made to go through verification processes designed to gain customer confidence. And they are not actually done in a day. Neither does it take too long.
Account set up and verification process appears to be the stage that takes up time. There are a couple of documentations needed such as taxes, address, product line knowledge among other things.
Once your account has been set up and verified, selling is not an issue. Amazon has made selling easier with FBA, providing storage and logistics to sellers. Amazon is currently the most valuable e-commerce platform in the world.
Therefore, it is not surprising to say that you are likely to meet competitions while offering products for sale. However, with the huge influx of traffic, you can still meet the demand of people as a newcomer.
Becoming an Amazon seller can be tedious for you while setting up the account. However, upon verification, listing products for sale is easy and comes with many helpful features.
How Can I Become An Amazon Seller In 2024?
Once you have made the decision of joining Amazon as a seller the first step is setting up your account. Account set up for Amazon sellers takes a longer process than buyer account.
Before setting up your account it is also imperative you have already sourced what you want to offer for sale. The process and steps on how to become an Amazon seller are definitive in a way that you can’t get to the next step if you skip the first.
Step by Step Guide on How to Become an Amazon Seller
- The first requirement like most other platforms is your business name and address. Followed by a phone number, Bank details, and Tax information. There are two categories of Amazon seller account the individual account and professional account. You will be required to choose either of the two before proceeding with more setup.
- The next step after the above will be to choose your fulfillment plan on Amazon. There are two fulfillment plans on Amazon. FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) Earlier in the text we mentioned how both works.
FBA:
This method uses the ‘’You Sell it, We Ship it’’ tag. in the FBA plan, Amazon helps the seller with storage facilities, packaging, logistics, customer care among many other things.
The seller is only concerned with connecting with the buyer and selling the product. While Amazon on the other hand help deliver it. However, be reminded that fees and charges apply
FBM:
FBM package is where the seller handles everything involved in getting the order across to the buyer.
After filling up this process and upon verification, your account will be activated for listing on the website. With the process listed above, it is ok to say setting up an Amazon seller account is not as tedious as you think.
Once you sign-up on the page the process for setting up the store is self-explanatory. The platform presents all tools and necessary guides that give one full guide on setting up his/her Amazon seller’s account.
Visit this website to know more and begin your journey on the platform.
How can you sell things on Amazon?
After setting up your Amazon account the next question that borders next is ‘’How can you sell things on Amazon’’. Before you start selling you must have picked a plan, build your store, add products then start attracting customers.
Step-by-Step Guide On Selling On Amazon
To get your product listed, Amazon issues each seller a unique number called Fulfillment Network Stock Keeping Unit (FNSKU).
However, to get your FNSKU, sellers must obtain a Universal Product Code (UPC) offered by the standard organization. With this, you can be allowed to list products for sale on Amazon.
Furthermore, another important aspect in selling on Amazon is the use of keywords. After giving a clear detail and description of your product, it remains imperative for you to insert keywords people use in searching for such products.
If not, you might not record a sale even with the good copy used in describing your product. Keywords are used in optimizing a product to improves its visibility on the platform.
Another aspect we shall love to touch is how to source for products to sell. By virtue of how innovative the tech space has been, you can actually stay in the comfort of your house and sell the product of another company if you do not have a personal product you want to sell.
Sellers can order bulk retail from verified manufacturers list them on the website for sale without having to move around.
In addition,
Merchant sites like Alibaba provide a platform for bulk purchase for mostly professionals that want to sell.
On the other hand, you can be a verified affiliate seller for the company where you don’t need to purchase in bulk but you are paid per product sold on behalf of the company.
Amazon FBA subscribers can have their logistics, shipping, and storage is taken care of by Amazon. The charges apply based on the distance, product size, quantity among other things.
You can hire a specialist to help you set up and optimize your store on the platform. A good number of them can be found on freelance sites like Fiverr, Upwork, e.t.c.
Nevertheless, you can also optimize your product yourself. Ensure you endeavor to constantly equip yourself with information you come across dealing with running a successful online store on Amazon.
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How much can you make as an Amazon seller?
According to data retrieved from Junglescout.com, sellers average income from selling on Amazon 2020 amounted to $42,000. Many sellers make $1,000 monthly on average from the platform. Amazon seller profit margin averages 10% for almost 68% of sellers on the platform.
Additionally, while sales might actually be a good feat it might not add up if your profit margin is not high. However, with the robustness of the platform, a good number of sellers average a profit margin of 20% which could raise or lower based on monthly sales, prices, and volume.
Newbies are usually the ones that struggle to make a profit. However, after the first few months and with series of efforts the number will start adding up. A final round-up sees an average Amazon seller making an average income of $2000 to $3000 monthly.
Conclusion
Amazon is currently a goldmine for those seeking to make a dependable source of income selling products online. Affiliate marketers with Amazon are also making good money by using their different platforms to promote products and earn a commission.
There is no limit to how much one can earn with Amazon. follow the step-by-step guide on selling on Amazon we explained above to get started. The platform provides useful tools and facilities that have made order fulfillment easy especially with FBA.
You can also hire the services of an Amazon Pro consultant to optimize your store to reach targeted customers more. Equip yourself with the latest trends and knowledge of selling on Amazon it helps stay updated.
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