Nowadays it is easier to sell on the internet thanks to online shopping sites like Amazon. All types of products can be sold on the web. But to be able to profit from it, one must be well informed about the operation of the site in question, in order to sell with peace of mind. You also have to choose the most popular sites, so that the product is seen by as many potential customers as possible. We will see in this article how to make money on Amazon FBA.
1 Amazon FBA, how does it work?
2 Register on Amazon
3 Opening an account on Amazon
4 Fees and commissions on Amazon
5 The Pros and Cons with Amazon FBA
5.1 – The advantages
5.2 – The disadvantages
6 Profitability on Amazon
7 Choosing the product to sell
8 Sales estimate
8.1 Related posts:
Amazon FBA, how does it work?
Amazon FBA is an online shopping site, offering its services as an intermediary between sellers and customers. Even an individual like me can therefore benefit from Amazon FBA services to sell my products. In return, Amazon charges me a percentage depending on the sale made. Despite a fairly high commission, Amazon is one of the most influential sites, which allows you to sell faster.
To make it easier for sellers, Amazon FBA takes care of the storage and delivery of products ordered by customers. To do this, Amazon has several logistics centers located throughout France and in several European countries. To sell on Amazon, you must create a legal entity and have a professional account to be eligible on the sales platform, as a seller. Then, it will suffice to label the products to be offered for sale and send them to the nearest logistics centers. The products in question will be available on the market within 24 to 48 hours.
Amazon is operational throughout France, but also in Europe. It is possible to sell its products in Germany, Italy, the United Kingdom or Spain. Thanks to the Pan European service, Amazon allows you to operate locally or abroad, and your products will be delivered in less than 48 hours.
By accessing the Amazon site, information about you will be requested, such as:
The person receiving the service
Opening an account on Amazon
The only requirement for admission to Amazon is to have a business account. By having this account, you will be able to benefit from Amazon services, including the “Fulfilled by Amazon” service. Depending on your activity, you have the choice between two types of accounts:
The Basic account
The PRO account
1-The Basic account
Depending on the product, sellers make less than 40 sales per month. This particularly concerns individuals. With this type of account, Amazon earns 0.99 euros per sale.
2- The pro account
This type of account is ideal for professionals who offer a large number of varied products on the site. I think this is more reasonable, because the platform charges a total of 30 euros per month for the subscription to the PRO account. But it should be noted that the “Fulfilled by Amazon” service is only available to those with a business account. Once you have this account, you will be able to access the platform. You just need to follow the instructions to send your product.
Amazon fees and commissions
Amazon is above all a sales platform that connects sellers and customers. In return, the site requires receives a commission according to the sale made by each seller. There are two types of commissions on Amazon:
Commissions based on the sale price
Amazon FBA or “shipped by Amazon” charges
Commissions based on the sale price
This type of commission concerns the fees charged by Amazon according to the sales made. The price varies according to the type of product. Indeed, each type of product is categorized and each category has a commission grid.
Amazon FBA fees
This type of charge is for the “Fulfilled by Amazon” service. This means taking care of another commission in return, managing the products of each seller. The site takes care of the storage, sale, preparation of the product and its delivery. From now on, it is this type of efficient service that has made Amazon the world reference in E-commerce. The order processing fee varies according to the weight of the product. For example, the processing fee for a 250g product is $ 2.55.
The pros and cons with Amazon FBA
Selling on Amazon provides several benefits, not only for the seller, but also for the buyer.
Efficiency and time saving
Selling a product has become an easy task on Amazon. No need to travel, or look for customers, without success all day. Just send the product to the nearest Amazon logistics center and you’re good to go.
The service “shipped by Amazon” is also the strong point of the site. It allows sellers other income-generating activities while Amazon sells the product and delivers it to the buyer. If this task were the responsibility of a professional salesperson, he would surely have to recruit, which would significantly increase his costs, and reduce his earnings. With this type of service from Amazon, the seller wins.
Reliable and fast service
Amazon uses efficient means to sell its products. Buyers can subscribe to Amazon prime for a price of 49 euros per year. This way, they will have access to videos presenting several categories of products available on the platform. Also, 30 days of free trial are offered on Amazon prime. This way, the products you put on sale will have a much better chance of being noticed by potential customers.
Unlike sellers who do not use the “Fulfilled by Amazon” service, those who do can gain customer trust through the speed of delivery. As a result, the seller has no risk of having their account suspended, as they will avoid worries with buyers. Indeed, the reason for suspending an account is often a sales problem, such as a dissatisfied customer who cancels their purchase. But in most cases this applies to sellers who take care of the delivery themselves, and who do not abide by Amazon’s terms of sale.
- The inconvenients
Amazon addiction risk
Selling on Amazon exposes the seller to addiction risk. Indeed, once accustomed to using this platform, it is possible that the seller no longer thinks of performing other activities. However, a product may find it difficult to sell.
Closure of account
A level of performance is required on Amazon. This requirement concerns the quality of the product and the seller’s ability to process emails. If these requirements are not met, the seller’s account may be suspended. Fortunately, training is provided to those who need it, to avoid this inconvenience. If you want to benefit from it, I advise you to search for training on Amazon FBA. Here you can find experienced and successful salespeople who offer to share their experiences regarding choosing the right product, managing sourcing, integrating the product on Amazon, and anything else that can help be profitable on Amazon.
Profitability on Amazon
At first glance, the commissions Amazon charges appear to be substantial. But if we calculate the charges without using the Amazon FBA service, we will find that they are higher.
I think taking care of the delivery is even complicated. First, the product must be packaged properly and in the correct form before it is shipped. With several products to deliver per day, it will be necessary to recruit.
There is a much better chance of selling quickly on Amazon compared to other online shopping sites, as this platform is one of the most used in the world.
Choice of product to sell
The choice of which product to sell is very important, as you will have to consider buying a certain number in order to have enough in storage. You will face a huge loss if the product does not sell once online.
Avoid products that are too heavy
As discussed later, the heavier the product, the higher the Amazon FBA fees. Opt for a space-saving product.
Use efficient software
To be sure, the right product, I think it is necessary to use software, allowing a quick review of the most sought after products on Amazon. This will give you access to important information, such as the estimated number of sales of a specific product, or comments from buyers. The software then indicates through a note, if the product is interesting or not. These tools do pay off, but they’re worth the cost to make sure they’re profitable.
Find out about the product’s influence on potential buyers
In order for a product to sell, it has to be popular. Several clues help identify a profitable product. A large number of reviews means that the product is of interest to a large number of people. You can also find out more on the site, by accessing the “best sellers” tab. This way, you will see the best-selling items and be able to inspire you to find the products to sell.
Other useful information is posted on the platform. By informing you about the number of customers who have bought a product, the platform makes available to you the other items purchased by the same customers. You will then have a wide choice of product according to your budget.
However, it is necessary to check the seasonality of the chosen product, as it might only sell for a certain period.
Once the product has been chosen, it will be necessary to set a price before putting it on sale on Amazon.
Use the positioning strategy
You have to position yourself against your competitors, especially if you sell the same type of product. But you don’t need to use this strategy if the product is high-end. Indeed, you can afford to sell at a high price if your product is of high quality.
Internet sales platforms make it easy to sell products. Personal or professional, this site allows all types of sellers to sell quickly, using the platform’s influence with potential buyers. With the Amazon FBA service, the seller can confidently entrust Amazon with the tasks related to the storage, preparation and delivery of the product. But to be profitable on this site, you have to know how to choose the product in vogue, by finding out about the site itself or by using various tools available on the web. Regarding e-commerce sites,