Selling on Amazon: A Comprehensive Guide
Are you interested in selling on Amazon? If so, you’re not alone. Amazon is one of the largest online marketplaces in the world, and it offers a lot of opportunities for sellers. However, getting started on Amazon can be a bit daunting. In this article, we’ll go over everything you need to know about selling on Amazon, from the different types of fulfillment to the challenges you may face as a seller.
Table of Contents
1. Introduction
2. Merchant Fulfilled vs. FBA
3. Fees and Costs
4. Restricted Brands and Categories
5. Getting Approval to Sell
6. Returns and Customer Service
7. Intellectual Property Claims
8. Scaling Your Business
9. Love-Hate Relationship with Amazon
10. Conclusion
Merchant Fulfilled vs. FBA
When it comes to selling on Amazon, there are two main types of fulfillment: Merchant Fulfilled and FBA (Fulfillment by Amazon). With Merchant Fulfilled, you ship the product directly to the customer from your home or warehouse. With FBA, you ship the product to Amazon’s fulfillment centers, and they handle the shipping and customer service for you.
There are pros and cons to both types of fulfillment. With Merchant Fulfilled, you have more control over the shipping process, and you don’t have to pay Amazon’s fees. However, you also have to handle customer service and returns yourself. With FBA, you have less control over the shipping process, but Amazon handles customer service and returns for you. You also get the benefit of Prime shipping, which can be a big selling point for customers.
Fees and Costs
Selling on Amazon comes with fees and costs. There are two main types of fees: referral fees and fulfillment fees. Referral fees are a percentage of the sale price, and they vary depending on the category of the product you’re selling. Fulfillment fees are charged if you use FBA, and they vary depending on the size and weight of the product.
In addition to these fees, there are other costs to consider, such as storage fees for FBA and the cost of shipping products to Amazon’s fulfillment centers. However, if you have good products that sell quickly, the fees and costs can be worth it.
Restricted Brands and Categories
One of the biggest challenges of selling on Amazon is dealing with restricted brands and categories. Some brands, such as Sony, restrict their products on Amazon. This means that you can’t sell anything from that brand without permission. Additionally, some categories, such as Automotive and DVDs, are restricted due to counterfeit problems.
Getting approval to sell in these restricted categories can be difficult. You may need to provide proof of purchase or get approval from the brand owner. However, there are ways to get approval, and it’s worth exploring if you want to sell in these categories.
Getting Approval to Sell
If you’re a new seller on Amazon, you may find that many products are restricted for you. However, there are ways to get approval to sell in these categories. You can request approval through the Amazon Seller website, and you may need to watch a video and answer some questions to get approved.
Additionally, you can build up your account and reputation by selling products that are not restricted. Over time, you may be able to get approval to sell in more categories.
Returns and Customer Service
Returns are a part of doing business on Amazon. However, they can be more frequent than on other marketplaces. Amazon has a very customer-centric approach, which means that customers can easily return products for any reason.
If you use FBA, Amazon handles returns and customer service for you. However, if you use Merchant Fulfilled, you’ll need to handle these yourself. It’s important to have good customer service skills and be prepared to handle returns if you want to sell on Amazon.
Intellectual Property Claims
Intellectual property claims are another challenge of selling on Amazon. If you sell a product without permission from the brand owner, you may receive an intellectual property claim. This means that you’ll need to provide proof that you have permission to sell the product, or your account may be suspended or banned.
It’s important to be aware of intellectual property laws and to only sell products that you have permission to sell. If you do receive an intellectual property claim, you’ll need to respond quickly and provide the necessary documentation to resolve the issue.
Scaling Your Business
If you’re successful on Amazon, you may want to scale your business. This can involve expanding into new categories or using different types of fulfillment. However, it’s important to be aware of the challenges that come with scaling.
As you scale your business, you may face more competition and more restrictions. You may also need to invest more money in your business, such as by purchasing liability insurance. It’s important to have a plan in place and to be prepared for the challenges that come with scaling.
Love-Hate Relationship with Amazon
Many sellers have a love-hate relationship with Amazon. On one hand, it offers a lot of opportunities for sellers. On the other hand, it can be difficult to navigate the restrictions and fees.
If you’re considering selling on Amazon, it’s important to be aware of the challenges and to have realistic expectations. It’s possible to make good money on Amazon, but it’s not easy. You’ll need to be prepared to work hard and to navigate the challenges that come with selling on this platform.
Conclusion
Selling on Amazon can be a great way to make money, but it’s not for everyone. If you’re interested in selling on Amazon, be prepared to navigate the challenges of restricted brands and categories, fees and costs, and intellectual property claims. With hard work and persistence, it’s possible to build a successful business on Amazon.