How to Become an Amazon Seller: Step-by-Step Tutorial for New Brands

Overview of Amazon’s Marketplace Potential and Reach

Amazon’s marketplace is a powerful platform with a global reach, allowing sellers to access millions of customers across the world.

Whether you’re in the United States, India, or the United Kingdom, Amazon offers a robust infrastructure that supports your business on a global scale.

The marketplace spans countries like France, Germany, Japan, and many others, enabling seamless international trade.

This extensive reach can significantly boost your business’s visibility and growth potential.

Difference Between Individual and Professional Selling Plans

Amazon offers two main selling plans: Individual and Professional.

Individual Plan:

• Best for: Small-scale sellers or those who sell fewer than 35 items a month.
• Cost: £0.75 per item sold.
• Benefits: No monthly fee, but you pay a small fee for each sale.

Professional Plan:

• Best for: Established businesses or those planning to sell more than 35 items a month.
• Cost: £25 per month (excluding VAT), regardless of the number of items sold.
• Benefits: Access to advanced selling tools, bulk listing options, and eligibility for top placements of your products.

Both plans incur additional fees like referral fees, which are a percentage of the total transaction and may differ by category.

Key Benefits of Becoming an Amazon Seller

The primary advantage of selling on Amazon is access to a vast customer base.

With over 200 million Prime members and countless active user accounts, your products have unparalleled exposure.

Here are a few key benefits:

• 🌍 Broad Customer Reach: Your products are exposed to millions of potential buyers.
• 🔒 Trust and Credibility: Leverage Amazon’s reputation for reliability and secure transactions.
• 📢 Marketing and Advertising: Use Amazon’s powerful marketing tools to boost your products’ visibility. Advertising, promotions, and other marketing aids are readily available to sellers.
• 📦 Fulfillment Services: Opt for Fulfillment by Amazon (FBA) to handle storage, packaging, and shipping, gaining access to Amazon Prime eligibility which enhances trust and boosts sales.

Stepping into Amazon’s marketplace can be the catalyst for significant business growth, offering tools and opportunities to scale efficiently.

Navigating your selling journey on Amazon can seem daunting, but understanding these basics is the first step.

Getting Started: Account Setup

Essential Requirements for Creating a Seller Account

To start selling on Amazon, you need a few key details ready:

• 📧 A business email address or Amazon customer account
• 💳 A chargeable credit card (international credit cards are accepted)
• 🆔 Valid passport or national ID for identity verification
• 🏢 Company registration details and VAT number (if applicable)
• 📞 A phone number for account verification
• 💰 A bank account to receive payment proceeds

These requirements ensure Amazon maintains a secure and trustworthy marketplace for both sellers and customers.

Understanding VAT Requirements and Compliance

Value Added Tax (VAT) is a crucial aspect of doing business on Amazon if you plan to sell in Europe.

Depending on the nature of your business, you may need to register for a VAT number.

Factors influencing this requirement include:

• 🏢 Your place of business establishment
• 📦 Your chosen fulfillment model (e.g., Fulfillment by Amazon)
• 💸 Your annual sales volume

Maintaining compliance with VAT regulations is essential for a seamless selling experience.

Amazon provides resources like the VAT Knowledge Centre to help sellers understand their obligations and ensure full compliance.

Navigating Seller Central Dashboard Basics

Seller Central is your command center for managing your Amazon business.

Within this dashboard, you can:

• 📊 Monitor sales activity and inventory levels
• 🛒 Update product listings and prices
• 💬 Communicate with buyers through the messaging system
• 📈 Review your account health and performance metrics
• 🛠️ Access various tools and reports to optimize your business operations

To get started, familiarize yourself with the layout and available features of Seller Central.

Amazon also offers a mobile app that allows you to manage your business on the go.

Regularly checking your dashboard will keep you informed and enable you to make data-driven decisions.

As you set up your seller account, the next step involves deciding on your selling strategy—a critical choice that can shape your business trajectory on Amazon.

Choosing Your Selling Strategy

Choosing an effective selling strategy is a cornerstone of your success on Amazon.

This chapter will walk you through crucial decisions such as whether to resell existing products or create your own brand, understanding product categories and restrictions, and making the most of the incentives available to new sellers.

Deciding Between Reselling Existing Products vs Creating Your Own Brand

One of the first decisions you will face is whether to resell existing products or create your own brand:

1. Reselling Existing Products: This involves finding popular products that already exist and offering them in Amazon’s marketplace. It’s a faster way to get started as you leverage products that have established demand. However, competition may be higher, and margins can be lower due to the presence of multiple sellers.
2. Creating Your Own Brand: Also known as private labeling, this strategy involves manufacturing your own products or sourcing unique items to sell under your own brand name. This approach can offer higher margins and allows for more control over branding and customer experience. It requires more time and investment upfront, but the long-term benefits can be substantial.

Understanding Product Categories and Restrictions

To ensure a smooth selling experience, it’s essential to familiarize yourself with product categories and their respective restrictions:

For more detailed information, visit Seller Central to understand the specific policies related to your chosen product categories.

Leveraging the New Seller Guide and Available Incentives

Amazon provides an array of incentives worth over £42,000 specifically designed to support new sellers:

• 📚 New Seller Guide: This comprehensive set of brand, logistics, pricing, and promotional services is backed by data science and aims to fuel the growth of new sellers. The first 90 days are critical, and this guide offers step-by-step assistance.
• 💸 Financial Incentives: Enjoy a 10% bonus on your first £40,000 in branded sales and a 5% bonus through your first year until you reach £800,000. These incentives are designed to offset costs and boost your early profits.

By understanding these strategies and leveraging the available resources, you’ll be well on your way to building a successful presence on Amazon.

Creating Product Listings

Creating an effective product listing on Amazon is crucial for visibility and sales.

Your listing should be clear, engaging, and informative to attract potential buyers.

Essential Elements of a Product Listing

When creating your product listing, focus on the following key elements:

• 📝 Title: Make sure the title is clear and descriptive, with a maximum of 200 characters. Capitalize the first letter of every word to enhance readability.
• 📸 Images: Use high-quality images (500×500 or 1000×1000 pixels) to showcase your product from multiple angles. Images should be clear and well-lit to provide an accurate representation of the product.
• ✍️ Description: Write a comprehensive description that highlights the key features and benefits of your product. Use bullet points to break down the information and make it easier to read.
• 🔑 Keywords: Include relevant keywords that potential customers might use to search for your product. This will help improve your product’s visibility in Amazon’s search results.

Understanding Product Identifiers

Product identifiers are essential for listing your products on Amazon.

These identifiers ensure your products are accurately listed and easy to find.

• 🌐 GTIN (Global Trade Item Number): A unique identifier used globally; often the parent identifier for other identifiers such as UPC, EAN, and ISBN.
• 📦 UPC (Universal Product Code): Commonly used in North America; necessary for almost all products.
• 📚 ISBN (International Standard Book Number): Specifically for books.
• 🔢 ASIN (Amazon Standard Identification Number): Unique to Amazon, automatically generated when listing a product.

If you don’t have a UPC, you can obtain one directly from GS1 or request an exemption from Amazon.

Optimizing Product Detail Pages for Better Visibility

To make your product stand out, optimize your product detail page with the following strategies:

• 📸 High-Quality Images: Include multiple images to provide different views of your product.
• 📝 Detailed Product Descriptions: Use bullet points to highlight key features, dimensions, and any special attributes.
• 🔑 Use Keywords Effectively: Research and include keywords that customers are likely to search for.
• ⭐ Customer Reviews: Encourage satisfied customers to leave positive reviews, as this will improve your product’s credibility.
• 🎨 Variations: If your product comes in different colors, sizes, or styles, include these variations to offer more options to your buyers.

Make sure to frequently review and update your product listings to keep them accurate and competitive.

Next, we will explore fulfillment and shipping options to determine the best approach for managing your inventory and ensuring prompt delivery to your customers.

Fulfillment and Shipping Options

Comparing Fulfillment by Amazon (FBA) vs Self-Fulfillment

Choosing the right logistics method is crucial for your success on Amazon. Fulfillment by Amazon (FBA) and self-fulfillment are the primary options available.

Fulfillment by Amazon (FBA)

When using FBA, Amazon stores, picks, packs, and ships your products for you. This option offers numerous benefits:

• 🚚 Your products become Prime eligible, providing faster delivery times and appealing to a broader customer base.
  📦 Amazon handles customer service and returns, freeing you to focus on growing your business.

Self-Fulfillment

With self-fulfillment, you manage all storage and shipping processes.

This can be advantageous if you have specific shipping methods or want more control over the fulfillment process.

However, you are responsible for handling all customer service and returns.

Understanding Prime Eligibility and Its Benefits

Prime eligibility is a significant advantage on Amazon.

Prime members expect fast and reliable shipping, and Prime-eligible products often see improved sales:

• 🚚 Free Two-Day Shipping: Attracts more customers expecting quick delivery.
• 💥 Prime Exclusive Deals: Increases visibility during special promotions.
• 🤝 Customer Trust: Prime products are often viewed as more reliable.

Managing Inventory and Shipping Across Different Regions

Efficient inventory management ensures you meet customer demands without overstocking.

Amazon provides tools in Seller Central to help:

• 📊 Inventory Performance Dashboard: Track key metrics and optimize storage.
• 💵 Automated Pricing: Adjust prices to stay competitive without manual interventions.

Shipping across different regions requires understanding Amazon’s regional fulfillment centers.

FBA can help streamline this process by distributing your inventory based on customer demand patterns.

Assess your fulfillment options thoughtfully. Effectively managing your logistics sets the foundation for customer satisfaction and business growth.

Pricing and Competition

Setting Competitive Prices

Pricing your products competitively on Amazon is vital. Seller Central provides essential tools to help you stay on top.

The automated repricing tool allows you to set your price ceiling and floor, helping adjust your prices in real-time based on competitor prices.

Bulk pricing for Amazon Business customers is another feature that will enable you to offer discounted rates for large orders, attracting business buyers looking to purchase in volume.

Staying competitive in pricing not only increases your chances of winning the Featured Offer but also helps attract more customers.

Understanding Referral Fees and Selling Costs

When selling on Amazon, it’s essential to understand the various referral fees and selling costs.

Every time you make a sale, Amazon charges a referral fee, which is a percentage of the item’s total sales price, including shipping.

This fee can vary by product category, so be sure to check the Amazon Pricing Page for specific details.

Additionally, sellers on the Professional plan will incur a monthly subscription fee of £25, while Individual plan sellers pay £0.75 per item sold.

Understanding these costs helps you price your products effectively to ensure profitability.

Strategies for Winning the Featured Offer Position

The Featured Offer position, previously known as the Buy Box, is crucial for increasing your sales as it is the default option for customers to add items to their cart.

To win this position, you need to meet specific performance criteria, such as maintaining competitive prices, ensuring fast shipping, and maintaining high seller ratings.

Using Fulfillment by Amazon (FBA) can also enhance your chances of winning the Featured Offer, as it meets Amazon’s shipping performance standards, including fast delivery and exceptional customer service.

Transitioning seamlessly to the next steps, understanding how to market your products and attract customers is the next focal point to ensure success on Amazon.

Marketing and Customer Attraction

Utilizing Amazon’s Advertising Options and Promotional Tools

Amazon offers a wealth of advertising options to help you amplify your product’s visibility and attract potential buyers.

Key options include Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP (Demand-Side Platform).

• 📦 Sponsored Products: These ads appear within search results and on product detail pages, effectively boosting visibility. They target specific keywords, making them an excellent tool for reaching customers already interested in products like yours.
• 🌟 Sponsored Brands: These banner ads, featuring your brand logo and a selection of products, are placed at the top of search result pages. Ideal for driving brand awareness.
• 🎯 Sponsored Display: These ads reach customers on and off Amazon, targeting them based on their shopping behaviors. It’s an effective way to re-engage past customers or attract new ones.
• 🌐 Amazon DSP: This programmatic ad-buying platform allows you to reach millions of Amazon customers across the web.

Running deals and promotions can also significantly drive sales. Options like Lightning Deals, 7-Day Deals, and Coupons can create urgency and attract bargain hunters.

Implementing the Amazon Flywheel Principle for Business Growth

The Amazon Flywheel principle centers around creating a positive feedback loop to grow your business:

1. Customer Experience: Providing excellent service and fast shipping, often through Fulfillment by Amazon (FBA), ensures customer satisfaction and repeat business.
2. Selection: A larger selection attracts more customers, increasing sales volume.
3. Traffic: More traffic leads to higher seller ratings and customer reviews, boosting product visibility.
4. Sellers: As you grow, you can offer more selection, feeding back into the flywheel.

Gathering and Managing Customer Reviews Effectively

Customer reviews are crucial for building credibility and encouraging purchases.

Here’s how to manage them effectively:

• 📝 Encourage Reviews: Send follow-up emails requesting reviews after purchase, or use Amazon’s “Request a Review” feature.
• ⏱️ Respond Promptly: Address negative reviews quickly and professionally. Acknowledge issues and offer solutions, demonstrating your commitment to customer satisfaction.
• 🔧 Use Feedback to Improve: Use reviews to identify areas for improvement in your products and service.

By leveraging these marketing strategies and maintaining excellent customer feedback, you can attract more customers and foster business growth.

Next, we’ll explore how to expand your business internationally.

Growing Your Amazon Business

Expanding to International Markets Through Amazon Global Selling

Expanding your business internationally can seem daunting, but Amazon Global Selling simplifies the process.

With one account, you can access numerous Amazon marketplaces worldwide.

This means reaching customers in countries like the United States, Canada, and across Europe.

To get started, you’ll need to:

1. Evaluate which international markets are most viable for your products.
2. Ensure that your listings are translated and adhere to local regulations.
3. Optimize shipping processes for cross-border sales.

Global Selling allows you to manage your inventory and orders across multiple regions, providing a pathway to significantly increase your customer base.

Leveraging Brand Registry for Enhanced Control and Protection

Amazon’s Brand Registry is a powerful tool for businesses looking to safeguard their brand on the platform.

By registering, you can:

• 📊 Gain access to advanced reporting tools to help protect your trademarks.
• 🚫 Take down counterfeit listings.
• 🌟 Enhance your product visibility with A+ Content and Storefront.

The Brand Registry adds an extra layer of control over how your products are presented, ensuring that only genuine items are sold.

Utilizing Analytics and Performance Metrics for Business Optimization

Amazon provides sellers with a wealth of data through its analytics tools.

Regularly reviewing these metrics is key to optimizing your business.

Focus on:

• 📈 Sales performance and trends.
• ⭐ Customer reviews and feedback.
• 📦 Inventory levels and turnover rates.

Diving into detailed performance metrics helps you identify areas for improvement, adjust strategies, and ultimately make data-driven decisions to enhance your business growth.

Implementing these steps can lead to significant growth for your Amazon business, setting the stage for even more advanced strategies in the future.