The Beginner's Guide to Selling on Amazon (2023)

This article was last updated on December 2, 2022.

We all know Amazon is the juggernaut of the e-commerce world.

Today, it accounts for roughly 40 percent of U.S. retail e-commerce sales—or nearly $2 of every $5 spent online—according toe-commerce.and more than60% of online product searchesNow on the market.

For sellers, Amazon represents a huge green opportunity.

With 200 million loyal Prime members and billions of monthly visitors, Amazon has distinguished itself as the largest online marketplace in existence. That's why it became popular with manymulti-channel salesStrategy. (not to mention if youronline storeBuilt with Wix, adding Amazon as a sales channel is just a few clicks away. )

But Amazon is also a huge marketplace. To stand out from the crowd, there are a few things you need to know before getting started. In this blog post, we'll cover all the basics of selling on Amazon, including:

• Is Amazon right for you?

• Pros and Cons of Selling on Amazon

• How to Set Up an Amazon Seller Account

• how to list your product

• How to optimize your listing

• How to price your product

• how to complete an order

• How to market your product

Is Amazon right for you? 5 considerations

1. Audience

It's easy to assume that everyone and their mothers shop on Amazon. However, the reality is that, like any other sales channel, Amazon attracts a unique set of customers.

Earlier this year,business insider-- along with analytics firm Numerator -- even reported that the typical Amazon customer is a college-educated married woman living in the Southeast with an annual income of $80,000. According to the same report, these shoppers, mostly aged 35 to 44 or 55 to 64, spend 9 percent of their shopping budgets on Amazon.

This is the same assimilar networkFindings of:

• 60% of Amazon.com visitors are women, 40% are men

• 25% of shoppers are between the ages of 25 and 34, 21.6% of shoppers are between the ages of 45 and 54, and 16.3% of shoppers are between the ages of 55 and 64

• 70.2% of the visitors have a college degree or above

• 39.5% of households had an annual income of more than $100,000, 29.9% had an income between $50,000 and $100,000, and 30.6% had an income of less than $50,000

• The average household size of an Amazon shopper is two

Before selling on the channel, verify that your audience aligns with that of Amazon, and set your expectations accordingly.

2. Product category

With more than 30 major product categories and 25,000 subcategories, Amazon is known as the "everything store." However, not every category is created equal. Some people see more sunlight than others. Some are more strictly regulated. Still others are easier to rank (read: less competitive) or more profitable to sell.

Make sure to do your due diligence and understand the types of behaviors your target category attracts. Browse top-ranked products for related searches and category pages. CheckAmazon Bestseller List.If you resell popular products, navigate to the product page and check out the "Other Sellers on Amazon" section to see who you're competing with.

Keep in mind the top 10 more popular categories (by number of sellers) likejungle scout:

• Home and Kitchen

• Beauty and Personal Care

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• toys and games

• Clothing, Shoes and Jewelry

• Health, Home & Baby Care

• Sports and Outdoors

• Arts, Crafts and Sewing

• books

• kitchen and dining room

• baby

3. Seller requirements

Almost anyone can join Amazon. However, as a third-party seller, you will be measured against strict performance standards. More specifically, you need to maintain:

• Order Defect Rate (ODR) of less than 1%- Based on the number of chargebacks processed, negative feedback you received, etc.

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• Less than 2.5% pre-fulfillment cancellation rate- Based on the number of orders you cancel before shipping

• Late Shipment Rate (LSR) below 4%- Based on the number of late or missing shipment confirmations

• More than 95% effective tracking rate (VTR)- Make sure the tracking number you upload is valid

It goes without saying that you'll want to make sure your setup consistently meets these standards. Otherwise, you could get banned from listing or even worse, have your account suspended.

4. Amazon Cost of Selling

If you really want to get Amazon up and running, you'll want to sign up for the Professional plan, which costs $39.99 per month. Through this program, you gain access to the most useful tools in Seller Central and are eligible to win Buy Boxes (a must for resellers).

In addition to your monthly subscription fee, you also pay a referral fee for each item sold. The exact amount varies by product category, but typically ranges from 8% to 15% of the total sales price of your items.

5. The Cost of Competing on Amazon

Beyond the costs required, there are other costs associated with being able to actually compete in Amazon's bustling marketplace. Among them:

• Amazon FBA fees- With 92% of Amazon sellers using FBA, participation in the fulfillment program is almost integral. Currently, this is the only way for third-party sellers to earn the coveted "Prime" badge on their listings (Amazon has offered a Seller-Fulfilled Prime option in the past, but the program has been closed to new registrants), and wins in most categories. buy box. FBA comes with a variety of shipping and storage-related fees that you'll want to know about.

• advertising fee- Nearly two-thirds of sellers promote their products through Amazon's Sponsored Products ads. They are pay-per-click (PPC) ads, and the cost varies based on the competitiveness of the targeted keywords.

make sure you understand thoroughlyhow much to sell on amazonBefore diving head down.

Pros and Cons of Selling on Amazon

To sum it up, there are clear pros and cons to selling on Amazon. Not all of the drawbacks are unique to Amazon—many are inherent to selling on any third-party marketplace—but you still want to be aware of them.

advantage

• Huge influence -Amazon's global reach and reach can drive tons of new traffic to your product, and ultimately, sales.

• trusted channel- You may have an easier time gaining the trust of new customers simply because of Amazon's reputation as an affordable, buyer-friendly marketplace.

• Competitive Advantage- When shoppers jump to Amazon to compare products and explore all of their options, you can ensure your products are always top of mind for your customers, no matter where they shop.

• open minded shopper-Sixty-five percent of consumersLevel the playing field by saying they are happy to buy from sellers they’ve never heard of before on marketplaces like Amazon.

shortcoming

• lack of control- Amazon has its own unique algorithms, processes and requirements (pricing, listings, fulfillment, etc.) that you need to abide by in order to maintain your selling privileges.

• expose your data- Amazon knows what you sell, what makes the most money, who your suppliers are - and it's no surprise that Amazon might use this data to create competing products.

• lots of competition- While almost anyone can start selling on Amazon, onlyOne percent of Amazon sellersOver $100,000 in sales per month (you have to play the long game and not dream of overnight success).

• brand dilution- and78% of searchesWith no brand in the market, you may find it difficult to attract repeat customers and redirect customer loyalty from Amazon to your brand.

• fees can add up-Amazon seller feesIt can eat into your margins, and it's hard to avoid, especially if you're fulfilling with FBA.

How to Start Selling on Amazon

If you decide Amazon makes sense for your business, here are the steps to get started.

1. Set up your Amazon seller account

One of the quickest ways to get started is through your Wix account. By integrating your Amazon store with Wix, you can automatically import your existing catalog into Amazon, avoiding a lot of manual data entry and repetitive work.

To do this, simply log into your Wix account and add Amazon as a sales channel. Alternatively, you cansign up for a new accountvia Amazon. (Note: You can still connect your Amazon account to Wix after creating your account.)

During the setup process, you will need to provide the following information:

• tax information

• telephone number

• Bank account

• bank routing number

• credit card details

• government-issued ID

2. List your products

If you're using Wix, simply select the product you wish to list on Amazon in your Wix store catalog. You can add to an existing Amazon listing (aka "ASIN") or create a new listing (only if no one else is selling your product on Amazon) - all within Wix. You can customize your product details specifically for Amazon if desired.

For example, let's say you want to change your price on Amazon. You can easily define your prices in Wix, then click "Publish" to send those details to Amazon.

Alternatively, you can go into Seller Central and create your listing from there. This is a fairly simple process, but can be tedious if you enter the details manually. That said, Amazon operates on a first-come, first-served basis.

In other words, if an ASIN already exists for your product because another seller already offers it on Amazon, you will not be able to change the listing details without submitting a support request. On the other hand, if you are the first seller to list a unique product to Amazon and/or onAmazon Brand Registry, you have the most control over product details, including titles, images, and bullet points.

3. (For New Listings) Optimize Your Content

When creating a brand new listing on Amazon, you need to make sure your content is optimized for Amazon’s algorithm and its seller guidelines. Remember, Amazon SEO is not synonymous with Google SEO. Amazon has its unique ranking algorithm designed to promote high-converting listings sold by reliable sellers.

Follow the tips below to strengthen your Amazon listings.

product name

Your product titles help entice shoppers to click to your product detail pages, so be sure to craft them carefully.

• Keep your text under 200 characters to avoid Amazon clipping it. Amazon Seller Guidelines recommend keeping titles under 60 characters.

• Make sure to include the most important aspects and keywords of your product. Consider what your customers are looking for when purchasing your product, such as size, color, brand, and compatibility.

• Include relevant search terms to increase the discoverability of each product.

• Aim for plenty of keywords that will bring the right shoppers to your listing, but don't overpack it with searchable terms.

• Be careful to capitalize words so your listing looks professional.

Product Image

Product photography is very important to building trust, so don't settle for anything unprofessional.

• The recommended size for product images is 2,000 x 2,000 pixels.

• Make sure the main image is taken against a plain white background and only include the products that come with each order.

• You can add up to nine images, each of which helps customers visualize your product's dimensions, details, and intended use. Consider hiring a professional product photographer and retoucher to add smart touches to your images.

• Avoid distracting backgrounds that distract from the product itself. Make sure the product is the star of the image.

• Use soft lighting so that all details of the product are easy to see.

For more tips, check out our guideProduct photography.

Key Features and Description

While key features (aka “feature bullet points”) tease the best aspects of your product, your detailed description can help seal the deal by providing deeper details about your product — don’t skimp on either.

• Use bullet points to let customers know the main selling points of your product. Don't just focus on features, talk about the benefits of owning your item.

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• Use product descriptions to help shoppers understand how your product will change their life. What value does it bring? What sets it apart? How does it compare to other similar products on the market?

• Don’t pad your copy with filler words or exaggerated words like “very.” Instead, write to inform your customers of the most useful aspects of your product and appeal to their values.

• Weave keywords naturally, including any alternate names, synonyms, and spelling variations.

Pro tip:tools like this jungle scout,Helium 10, andseller applicationBoth can help you with thorough keyword research, especially for Amazon. Determine the competition and discover the best keyword opportunities for your products.

4. State your price

At this stage, you'll want to keep your pricing competitive without squeezing your margins. Find out what your top competitors are charging by identifying the best-selling products in your category. Analyze your existing sales data and use the above tools to develop your pricing strategy.

Keep in mind that your Amazon price shouldn't vary too much from normal store prices. If your product is available for a much lower price in your store or elsewhere on the internet, your listing may not rank well or be banned entirely.

If you are a reseller, you also need to be familiar with the buy button. This little piece of real estate (on the right side of a product detail page on desktop, or below a product image on mobile) determines who "wins" and gets the profit from the sale. Buy Box winners may change daily, if not hourly, to reward sellers with the best track records.

While your Buy Box eligibility depends on a variety of factors (including good account health and sufficient order volume), your price and total offer (e.g., shipping time and fees) also come into play. You don't necessarily have to offer the lowest price, especially if you sell using FBA and offer Prime shipping. However, you still need to optimize the price of the buy button.

Consider testing the Amazon repricer to dynamically adjust your prices. At the very least, do your research diligently when figuring out the best price for your product.

5. Decide how you will fulfill the order

You can handle order fulfillment on Amazon in two ways.

• Fulfilled by Merchant (FBM)- You handle everything from warehousing to shipping, packaging to returns processing.

• Fulfillment by Amazon (FBA)- You outsource fulfillment and customer service to Amazon. You are solely responsible for shipping the product to Amazon's fulfillment center.

As mentioned earlier, FBA is almost a prerequisite for competing in popular Amazon categories. That said, you can choose to take a hybrid approach and only use FBA for certain products.

Probably the biggest advantage of FBA is that it makes your products Prime eligible, which improves rankings (plus the Buy Button). To sweeten the deal, FBA offers highly competitive shipping rates, allowing you to save even more on shipping compared to other delivery partners and carriers.

However, there are some challenges to be aware of. Sellers recently reported that Amazon significantlycut their FBA storage limit, choking sales. You lose more control over your business, and Amazon can keep your inventory, decide what to do with returned items (dispose or resell?), limit storage space, and more.

Carefully decide which shipping method is best for your product, then enter those quote details into your Wix account. In Seller Central, you can fill out the Offers tab.

6. Publish and start marketing your product

After completing the steps above, you can publish your product listing to Amazon. Remember, the job isn't done when you hit "Publish." Take steps to drive more traffic to your listing through the following channels:

• amazon advertising- Create a PPC (pay-per-click) ad for your product and target the main keywords your target audience will search for. These sponsored ads appear as recommended products on search results and other product pages. Three types of Amazon PPC ads are available: Sponsored Products, Sponsored Brands, and Sponsored Display.

• social media- Choose the right social media channels for your target audience and develop a content strategy to increase the visibility of your eCommerce business. Create engaging content that brings your products to life and drives customers to your online store or Amazon product listing. Connect with social influencers who can use Amazon affiliate links to promote your products, earning them commissions in exchange for sales.

• amazon badge- Amazon has created a variety of badges designed to help shoppers make purchasing decisions. These badges or ribbons are only available to sellers on the Professional plan and can appear on search engine results pages (SERPs) or product listings. Some require more time and effort to acquire, but all of them can have a positive impact on your store's traffic and sales.

• Amazon's Choice- Sellers cannot purchase or claim this sought after badge. It's an algorithmically selected "best option" specifically designed to simplify the customer journey. To qualify for Prime, you need to have competitively priced highly rated products that are in stock and ready to ship.

• Promotions and Coupons- Customers love the thrill of haggling. Grab their attention in a crowded marketplace by offering incentives like free shipping, percentage discounts, or seasonal promotions. Promotional codes or percentage discounts are tempting and free to use, but they will only appear on your product listings. Coupon codes can be found in the SERPs, but Amazon charges a fee for each coupon redeemed. Ultimately, you need to calculate whether a price promotion is right for your business.

• Daily Deals or Limited Time Deals- Flash sales like this one encourage shoppers to take advantage of discounted prices, while supplies last. Due to its high visibility on the Deals page, sellers must pay to participate. Even so, sales are not guaranteed, and you will be charged regardless of how well your campaign performs.

Unicorn theme children's store,daughter's list, cleverly uses some of these sales techniques to provide cost-conscious shoppers with a perception of value for money—offering discounts on each product’s original list price, plus an additional 5%-25% off coupon. This competitive pricing strategy, combined with well-crafted product descriptions and solid product reviews, has earned some of their products the coveted Amazon's Choice badge.

Sell ​​on Amazon and Beyond with Wix

Selling successfully on Amazon involves strong brand management, financial management, and continuous optimization of your listings. Standing out in such a crowded market requires strategic planning, attention to the finer details, and staying focused on your business goals.

Run faster and smarter than your competition by managing your businessmulti-channel salesat Vickers. Set up and expand your reach - all in one place.

New to Wix?Create your online storeFree today.

Amazon Selling FAQs

Is it profitable to sell on Amazon?

Despite the fees, it's impossible to ignore the profit potential when selling on Amazon. The e-commerce giant has an incredible 300 million customers, including 200 million Amazon Prime members — an exciting prospect for entrepreneurs looking to grow beyond current SEO and marketing strategies Prospects.

It’s also worth mentioning that Amazon’s relationship with third-party sellers is mutually beneficial. In 2021, Amazon will generate approximately$103.4 billion in third-party seller servicesand third-party sellers now account for more than half of all sales.

Why sell on Amazon if I have an online store?

A multi-channel strategy is advantageous for a number of reasons:

• You are not dependent on reaching customers through a single sales channel.

• Amazon's international loyal shoppers increase your chances of being discovered.

• An online store can add credibility to your brand. Customers browsing on Amazon are likely to check out your website for more information.

• Wix stores that add additional sales channels can see up to 12% more revenue.

wax merchantasUse Amazon to get its diverse offerings (including home, lifestyle, pet and baby products) in front of the right audience. Instead of building audiences from scratch for each category, Qualis could leverage Amazon's massive following and offer site visitors multiple ways to purchase their products.

The Qualis homepage proudly displays a sticker that reads "Proud Amazon Seller," letting shoppers know they can complete purchases through their Amazon Prime account if they choose. Meanwhile, for Amazon shoppers, the Qualis website is a great place to learn more about the Colorado-based company. The Qualis website and Amazon pages share a similar look and feel, creating a symbiotic relationship between the two channels.

What are good Amazon seller tools?

Amazon Seller Tools are third-party software solutions designed to help you grow your Amazon business and simplify your workload. In a crowded marketplace, they can help your store stand out from the competition.

Some of the most popular tools include:

• jungle scout - An all-in-one platform that helps Amazon sellers find products to sell, find suppliers, optimize listings, manage inventory and sales, and more.

• Helium 10 - An all-in-one platform that provides comprehensive software tools to manage your Amazon business.

• seller application - An analytics software application that provides a set of tools to analyze and optimize the marketing, sales, and operations of your Amazon store.

How can I get more reviews on Amazon?

Amazon automatically sends emails to buyers asking for product reviews, so technically you don’t need to do anything to get reviews. However, there are other steps you can take to increase your comment count. Be sure to familiarize yourself with Amazon's strict Community Guidelines, which prohibit things like bribing customers to leave positive reviews.

Here are some things you can do to earn reviews:

• join amazonthe show is comingOpen to sellers with Amazon Brand Registry products with fewer than 30 reviews. In the Vine program, sellers submit 30 pieces of inventory. Selected Vine reviewers receive products, test them, and write reviews for free.

• Manually request a review in Seller Central using Amazon's "Request Review" button. It allows you to request a review on each order within 4 to 30 days of purchase.

• Place the card requesting a review with your package. Adding a personal touch like this can encourage users to give you feedback.

Don't forget to optimize the user experience to win reviews organically:

• Responsive. Promptly and professionally address and respond to any questions, questions or concerns.

• Respond to customer reviews on the product detail page and ask them to contact you through Amazon's buyer-seller messaging service if you need to resolve any issues.

• If you do receive a bad review, you can try to contact the customer to offer compensation, such as a full or partial refund or an item replacement.

• track your performanceAmazon's Seller Central.

• Take feedback and use it to improve your business. Consider making changes to areas of your business that keep getting negative feedback.

geraldine filley

Ecommerce Marketing Writer Wix

Geraldine is a marketing writer for Wix. She uses her extensive experience in journalism, publishing, public relations and marketing to create engaging content and loves hearing user success stories.

(Video) How to sell on Amazon for beginners (step-by-step tutorial)

Li JiajiaEcommerce Wix Editor

Allison is the editor of the Wix eCommerce blog and has years of experience covering eCommerce news, strategy, and founder stories.