Advertiser Disclosure

How to Start an Amazon Store: The Ultimate Guide

Selling your product on one of the world's biggest ecommerce platforms presents a huge opportunity, at the same you'll want to understand the site's terms and conditions to limit your costs and maximize your profit margins. Follow our guide below to selling on Amazon and avoid the amatuer pitfalls that could cost you time and money.


Tamara Cohen
Tamara Cohen
July 12, 2022

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.


How To Decide What To Sell On Amazon

Before setting up an account on Amazon, you have to first decide what you're going to sell. You can't set up your store properly without knowing what you're selling.

There are endless options to choose from when it comes to deciding what to sell. It's all about your capabilities as well as interest. Here are a few tricks that you should keep in mind if you feel you want to maximize your profit as well your success rate:

How To Find Suppliers

After finalizing the product you're selling the next step is to find suppliers. There are a variety of websites like AliExpress and Alibaba from where you can buy products at a lower rate.

Keeping this in mind the next thing to do is to search all the suppliers for your products. You can do this through a directory or a google search. Go through a few places so that you can get a better idea of the prices and quality. Plus make sure the supplier is reputable.

The most important thing is knowing how to choose a good supplier. We have listed a few things that you should keep an eye out for:

How Much Does It Cost To Sell On Amazon?

Like any other type of business many fees and expenses have to be covered when you start selling a product. Hence, you must know how much you'll be spending initially to plan your budget accordingly.

According to Bench, Amazon deducts all the ue fees from your sales revenue and deposits the remaining into your bank account every two weeks.

But what are these fees and how much does it cost?

1. Amazon has different subscription plans depending on what type of a seller you are but the first fee you will encounter will be the Seller Fees

2. The next fees will be the referral fee and it is never more than 15% of your selling price but it will vary depending on the type of product you're selling

3. Amazon charges return processing fees for some products

4. One major chunk of fees will come from shipping costs so to avoid spending extra on shipping it is important to do some research on different types of packaging and make it more cost-effective

5. Last but not least is the inventory costs and this includes a long list of different fees that amazon charges including;

  1. Stock Removal Fees
  2. Inventory Placement Fees
  3. FBA Export Fees
  4. Pick and Pack Fees
  5. Monthly Storage Inventory Fees

Knowing how to cut down on these costs will help you become a successful seller on amazon.

An Afro-American delivery man, wearing a gray t-shirt with the word “Delivery” printed on the chest, delivers a parcel at the front door in a residential street.

How To Sell On Amazon In 5 Steps

There are 5 easy steps that you have to go through to start selling products on Amazon. We have broken it down even further to make this process as simple as possible.

1. Sign up for an Amazon Seller Account

  1. Choose a plan
  2. Create your Seller Account
  3. Set up your Seller Profile

2. List your Products

3. Manage your inventory

4. Begin your trading

5. Improve your selling and shipping process

Other Things To Consider When Making An Inventory Purchase

When purchasing products there are other factors to consider too:

The Bottom Line

Selling products on Amazon can seem daunting, especially when you take a look at the initial costs. It may take some time to start getting orders. You have the capabilities to achieve your goals with a little time and attention. However, with our guide and with some practice, you should be able to understand the basics of it as well as hopefully develop a strategy. 


APPLY NOW
User Generated Content Disclosure

Conversation

0 Comments