Amazon is the world’s largest online retailer and has basically created an industry of its own. According to Statista, Amazon has a market cap of $569 billion as of October 2021 and it’s not slowing down.
Starting an Amazon business is a great way to earn money online. Going into business on Amazon can sound like a sweet deal: no employees, no retail storefront, and all the free time in the world. It is definitely easier than getting a traditional job to start off with, but it is also much harder.
If you want to get in on this action, then here are some tips for starting up your own Amazon business:
1. Gain knowledge.
When you first start up an Amazon business it can be a little difficult to know where to start. The good thing is there are plenty of resources you can Go Now for new sellers like blogs and forums where people can share their experiences with other sellers. You will learn from them what works and what doesn’t work so that when it comes time for you to sell your products, you already have an idea of what works best for other sellers.
2. Start small, get bigger.
If you are an entrepreneur at heart and have been thinking about starting up your own Amazon business, then don’t go overboard and try to start with too much at once. It’s easy to be tempted by all the cool product categories and niches you can sell in, but it’s better if you start small first so that you can test out how successful your products are before expanding into other areas.
3. Pick the right product.
Picking the right product to sell online can be tricky — you don’t want to bet on something with low demand or high competition. As with any business, it is important to know your niche before starting up. This can be done by doing research on what items people are buying most frequently on Amazon, or by looking at which products are selling well in your area or region (if you live near an Amazon warehouse).
4. Find a reliable supplier.
Once you have identified a niche or a product to sell, find a manufacturer who can produce the products needed to fulfill orders on time and at an affordable cost. You may want to consider outsourcing this part of the process if it is not possible for your small business due to a lack of capital or resources necessary for manufacturing tasks such as packing and shipping orders themselves.
5. Set up your seller account.
You can easily set up an individual seller account with Amazon by going through their website and following the prompts. It costs $39 per month but is free for sellers who sell fewer than 40 items per month. The more items you sell, the less each item will cost you per month (with a minimum fee of $1).
Once you’ve created an account, you’ll need to apply for approval as a seller by providing information about your business (including tax ID number) and uploading photos of your products. Then you’ll need to register your business with the IRS and obtain an Employer Identification Number (EIN). Finally, you’ll need to open up a bank account that’s dedicated solely to your business finances so you don’t get them mixed up with personal expenses. If you’ve already been doing business elsewhere (like Etsy), make sure your business is registered there too!
6. Get familiar with the platform.
Before you start selling your product, you need to get familiar with the platform. This can be done by creating an account as a customer. You can buy some products and see how the whole buying process works. Also, you can check out the product listings and compare prices. It would be smart to do some research on product pricing before listing your product on Amazon. If you find that your product is already listed, then you should check out its price and quality to make sure that it’s in line with what others are offering.
7. Research your competition.
Researching the competition is one of the most important things you can do as an Amazon seller. It will help you understand what works and what doesn’t when it comes to product selection and pricing. It will also help you decide how much money you need to invest in advertising, how much time you should spend on customer service and how much inventory you should carry.
8. Understand how to price your items correctly.
Amazon is a competitive market, and you need to price your items correctly to stay on top of the game. If your products are priced too high, then you’ll struggle with sales. However, if your products are priced too low, then you’ll end up losing money.
There are many things you need to consider when pricing your items:
- marketplace competition,
- product cost,
- product category, and
- customer demand.
9. Stockpile some inventory.
Buying in bulk is a great way to save money and ensure that there is enough stock on hand at all times. However, this can be an expensive proposition if you don’t have the right equipment or space to store large amounts of inventory. Consider renting a storage unit or using an online service like Amazon Fulfillment by Amazon (FBA).
FBA allows sellers to send their product directly from their warehouse or storage facility to Amazon’s fulfillment centers, where they will be stored until it is sold. This saves sellers time and money because they aren’t required to spend time packing orders and shipping them out themselves — those tasks are handled by Amazon employees instead.
10. Check and balance.
Checking and balancing your finances is essential for any business owner, but even more so for those who have started an Amazon business.
It’s very easy to lose track of money when you’re managing multiple products and customers, especially when dealing with foreign currency transactions. This can cause problems later down the line when it comes to paying taxes or running reports.
Checking your finances regularly is important because it helps you make better decisions about your business and can help prevent mistakes. It’s also important to keep track of your profits so that you know if you’re making enough money or not. If you’re not making enough money, then there may be something wrong with your marketing strategy or pricing scheme.
11. Promote your online store.
Getting customers to your online store is no easy feat. You need to be creative and resourceful with your marketing efforts, and you also need to be strategic with your approach. Just like with any business, you need to get the word out there. You can start by building a website and taking advantage of Amazon’s ready-made solutions to help you do so. Along with a website, be sure to have a collection of photos and videos that show off your products and explain how they work. And don’t forget about social media! Also, it’s worth noting that many people will find you through Amazon itself–so make sure your listings are up to date with great photos and descriptions.
Remember These Tips When Starting Up an Amazon Business
There are many reasons people choose the Amazon marketplace over others, and with so much money pouring in it’s no wonder. However, this income is only guaranteed to those who treat it like a real business and use the right tools to help them succeed. That said, there is still plenty of money to be made on Amazon given the right preparation is taken before starting up. These tips can come in handy for sellers who want to improve their strategy moving forward.