How to sell on Amazon step by step Guide 2022

How to sell on Amazon step by step? Guide 2022

Amazon is the largest marketplace in the Western world. It’s one of the most influential companies on the planet.

You’re guessing right if you’ve thought about selling on Amazon your products, in addition to your platform. They will acquire greater visibility, and it will be quite a showcase for your business.

First and foremost, always be clear that your primary sales channel should always be your online store. The others should be secondary channels.

How to sell on Amazon? It’s much more than just uploading products and seeing what happens.

What is the FBA (Fulfilled By Amazon) system? (Fulfilled By Amazon)

There are several methods of selling on Amazon that you should know, each with its advantages and disadvantages. Today you will know them all!

How to sell on Amazon? It’s much more than just uploading products and seeing what happens.
If you are considering using this strategy as an additional or complementary sales channel, you have to do a previous study to make sure of certain aspects such as:

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Although several types of formulas fit, the first difference we must make is this.

And what is it based on? On the level of control, you are willing to give up on the platform. Let me explain: become part of Amazon’s supplier network: just like that.

When we opt for this method, what happens is that we sell directly to Amazon as the only customer and there ends all our relationship with your company and your end customers.

How to sell on Amazon step by step Guide 2022

This implies that you have to negotiate with them. And this is not easy because they have the upper hand (and it is a vast frying pan).

If you don’t want to get unpleasant surprises, you must be clear about some key aspects:

Price: the most critical of all and that you can never overlook is that you give them the power to set the price they want. If you don’t only sell on Amazon, this matters a lot because the competition they can make to other channels (like your online store) is potentially very tough.
Payment period and formula: this is very delicate because, by default, they always pay in 90 days. Can’t or don’t want to assume it? In that case, you can reach an agreement to be paid in one month… with a 3% penalty.
Refunds: who assume them? Because they think it will be you in all cases, regardless of the condition of the products. If you don’t want to do it, you have to negotiate with the corresponding penalty of 2% of the invoicing.

What happens if there is an overstock? Are they going to make you pay for the storage? Who bears the cost of shipping it back to your warehouses if it happens? Is Amazon Retail right for you?

The answer depends on your business model and your strategy. Here you go:

Relinquish control over the product.
Forget about logistical headaches.
Deal with customers over whom you also have little control.
What do you get in return? You have a vast, international critical mass of potential buyers. It’s a great option.

1 Amazon Marketplace.

Amazon will see your product as one of its own, resulting in prioritization in sales.

Here we will discuss the classic model of large retail shopping centers taken to an online concept. They represent the platform as an ‘umbrella,’ and third parties are the ones who provide the business and manage the space granted to them in a way that complies with the guidelines they set as a marketplace.

2 Amazon Warehouse

Unlike selling on Amazon Retail, doing it through this formula means keeping the last word on the main aspects of the business (price, logistics, inventory… ).

Within the Amazon marketplace, a concept marks a subdivision within the merchandising methods.

They call it ‘fulfillment .’It encompasses all the actions and procedures necessary to get the product into the hands of the customer.

Within Amazon, there are sellers called FBA and FBM.

What is the FBA system? (Fulfilled By Amazon -preparation by Amazon-)
When a merchant chooses this option, what he is doing is forgetting about the management and hiring Amazon to do it for him.

Their total service management prices (handling, inventory, shipping, customer service…) are not much different from what it would cost to hire a third party.

This has a few advantages, and they all stem from the same thing:

Amazon looks favorably on us. We have already said that it will always look first for in-house and retail supplier products, but those outside those categories, its favorites are FBAs.

How to sell on Amazon step by step Guide 2022

This is mainly because they have greater control over processes and customer experience, which is what they obsess over to maintain a high level of recurrence in their buyers.

Thousands of retailers have jumped headfirst into FBA because the investment that retailers have to make is much less.

You don’t have to rent halls or warehouses or pay for facilities that don’t quickly pay off.

Free Guide: Merchandise Preparation and Shipping

From deciding how much to charge your customers to understanding insurance and shipment tracking, this comprehensive guide will take you step-by-step through the entire process.

I want to make an important point here: to sell in FBA, it seems that the only thing you need is a good niche exploration and a particular investment in the product.
It is probably occurring to you that it might not be necessary to invest in the product because you could resort to dropshipping (basically becoming an intermediary).
Well, depending on where you want to set up the business, I have bad news.

In the marketplaces of Spain and LATAM, dropshipping is not allowed. It is explicitly stated that:

You cannot buy products from another online retailer and have the retailer ship directly to customers.

Do you know what is the best? If you intend to set up the business directly from the USA, it changes because it is available for that market.

The first thing to keep in mind if you are considering this type of distribution is that maybe you are already doing it through your eCommerce with what you have your suppliers in China or India.

On many occasions, the path is the other way around. Once you have verified on Amazon that a particular product has an exciting volume of business, you may find it interesting to incorporate it into your eCommerce.

What is the FBM (Fulfilled By Merchant) system?

You are interested in selling on Amazon, but you are not willing to give them the keys to your business.

In this case, they will let you in. But don’t dream of having the same possibilities as a seller who does it on any other scheme that brings you more control.

For Amazon, what counts is the customer at even unreasonable levels. If you sell, ship, and manage the incidents that may occur, they are putting in your hands their most significant asset, which is the buyers.

When the buying experience is negative, there is a direct impact on recurrence. And that is critical in Amazon’s business model, hence so many years of losing money with their PRIME program (a program that you forget to apply).

How to sell on Amazon step by step Guide 2022

You are free to use FBM, but you should know that they will be looking at you with a magnifying glass, and if you neglect your optimal response rate and low returns… they may suspend your account.

Well, it has a lot to do with the platform and the service offered by Amazon. The vast majority of those who access to sell on Amazon do it through the Amazon Seller Central platform.

In this case, you autonomously manage all the day-to-day details, such as uploading and updating your product listings; the interaction with Amazon is minimal.

It has advantages such as a better-designed platform, more options for internal advertising campaigns, attention, and support directly through an agent (the so-called Vendor Managers).

The vendor itself has no cost, but all these advantages are not free, so you will have to go through the cash register very often with their “suggestions.”

It is worth considering this option:

You may find it interesting to join, as long as you are looking for a large sales volume and have a production/distribution capacity in line with this demand.

You can see that there is no 100% ideal model to sell on Amazon and that, in all cases, you have to evaluate what and how much you want to give.

How to sell on Amazon step by step Guide 2022

This is a consequence of dealing with a platform that is not neutral (nor pretends to be). They are judged and party because they have the asset that attracts all stores: the critical mass of customers.

This partiality means taking risks such as being left out if you represent a level of competition they don’t want to take on or even having your products copied.

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