One of the easiest ways to get rich quick is to do selling on Amazon. Amazon is the biggest online store in the world which has over 244 million active users. There are over 2 billion products sold on Amazon and the company makes close to $100 billion in sales year-on-year.
There are hundreds of thousands of small business owners and individual sellers who earn a living by selling on Amazon. Do you think you can take advantage of the opportunities that Amazon has to offer?
You don’t really have to start big when you start selling on Amazon, the opportunities will always be there as you go along. The important thing is to get started.
So you are probably wondering why sell on Amazon? Why not sell on eBay.com, Overstock.com, Buy.com and a countless other sites? Why not sell on your own website, and avoid paying a commission and other fees to Amazon on each product?
Okay, the answer is quite simple – have you tried selling anything on your own website? Starting an online store is no joke. It is an incredibly complex thing to do and is very expensive too. It’s not easy to get people to visit your store without investing heavily in marketing. And even when you get some traffic, it’s only going to be a small fraction of what you can achieve on Amazon.
What about the other online marketplaces such as eBay.com, Buy.com and Overstock.com? They provide excellent opportunities too, but it’s never close to what you can achieve on Amazon. What are the benefits that Amazon has to offer?
Let’s talk about the most important thing first – as an Amazon seller, you are likely to make more money than as an eBay seller or as a seller on any platform.
In a survey of 200 sellers on Amazon and eBay done by Feedvisor and Web Retailer, it was found that 34.3% of eBay sellers made less $10,000 per year, compared to only 9.0% of Amazon sellers.
Most interestingly, only 3.9% of eBay sellers had an income of over million dollars per year, while 16.7% of Amazon sellers made over one million a year. Clearly, there are a plenty of opportunities to make money on Amazon, you only have to look for them.
Are there other reasons to sell on Amazon? Yes. When you sell on Amazon, you can run your business from home, and won’t have to hire employees to help you out. It gives you all the freedom that only having your own business can offer, without the hardships that come with running a business.
Selling on Amazon requires just 6 to 8 hours of your time a day. You will have enough time for your family, and can take a vacation or travel as you please. When you joined Amazon FBA program, you won’t have to worry about shipping either.
Managing returns and refunds on Amazon is simple and at no point will you be chained to your work. You will have enough time to take your kids to school, play with them or help them with their homework. You will be able to achieve a sizeable savings and will enjoy a consistently high income for as long as you are active on Amazon.
So how does one sell on Amazon? What are the things that you should do that make you distinct from the tens of thousands of others who are selling on Amazon as well?
Well, first of all you will have to decide for yourself how big you want your Amazon business to be. Decide how many hours a day you want to work on Amazon and whether it’s going to be a part-time job for you or a full-time obligation.
Start your business on Amazon with the right vision, as only that will help you do well and replace your old income, or add to your current income. Make sure that you stick by the rules of Amazon and don’t do anything that runs afoul of Amazon’s strict guidelines.
You will learn on the job, through a combination of trials and errors, aided by hundreds of hours of painstaking research. Sure, there will be mistakes along the way, but you will learn from them.
Follow the tips given here on how to sell on Amazon, and hopefully get rich quick.
Tip #1: Become an Amazon Featured Merchant for Selling on Amazon
If you want to achieve success as an Amazon seller, become an Amazon Featured Merchant. It won’t be easy and you will need to get decent feedback to make that happen. You will need to have good sales as well. But once you make it as a featured merchant, the floodgates literally open for you and you will find it much easier to sell on Amazon and make money.
So how do you become a featured merchant? To be fair, nobody really knows the secret formula to his, but the basics are simple – get a good feedback on a consistent basis, get the right type of seller account and start generating sales. There are many sellers who achieve this status in very little time. You can certainly do it too.
Why is it so important to be a featured merchant on Amazon? Well, for one, when you are a featured merchant, you will get what is called as the “Buy Box” on Amazon. This gives you the default sales option, which is very valuable on Amazon.
This means that whenever someone clicks the “Add to Cart” button for a product, you will get the sale for it. Now, how much you are able to sell depends on the demand for the product, but when you get the Buy Box, this can very easily double your sales.
Tip #2: Join Fulfillment by Amazon and have everything done for you
The best tip we can give you is to join Amazon FBA or Fulfillment by Amazon and have Amazon handle the entire process of fulfilling the order – packaging, shipping, delivery, refunds and product replacement for you. All you need to do is to ship your products in bulk to the nearest Amazon Fulfillment Centre, that’s it. Amazon takes care of everything from this point. So you will have a lot of your free time left to grow your business, strategies, and focus on things that make you the most profits.
Tip #3: Be thorough with Amazon’s rules
One of the biggest mistakes people make is to start selling on Amazon without being thorough with the Terms of Service. Not being aware of the rules and regulations related to selling on Amazon is the easiest way to get banned. Follow Amazon’s rules in the Help section. When you sell on Amazon, you are basically in their store, and working from within, so you better follow their rules. Be a true professional and be ethical in your conduct. This will do you a lot of good in the long run.
Tip #4: Focus on the margins
Your margins are the most important thing that you should focus on as an Amazon seller. They make all the difference to how much money you will make on Amazon.
So, when you buy products to be sold, you will have to look into the cost of the product. There’s no point in pricing the product low and spending most of the money got from its sale on the fees to be paid to Amazon.
A lot of Amazon sellers lose money because of focusing on selling on Amazon at the expense of protecting their margins. Don’t let this happen to you. Know what are the fees charged by Amazon, learn everything there is to know about the product costs, find out about the shipping costs, taxes and more.
Margins are everything to a seller. It is because companies such as Wal-Mart and Amazon ferociously guard their margins that they are today among the biggest companies in the world. So track the margins closely at all times.
Tip #5: Choose the right products
Product selection makes all the difference to your prospects on Amazon. It decides the level of success that you will achieve as an Amazon seller. But you should select products based on the size of your business and the space that is available to you. So if you are going to be selling furniture on Amazon, you will need a large basement. If you have a warehouse, this would simplify things for you. But select products that are in great demand and are likely to sell much faster.
Tip #6: Take extra care when sending products to Amazon Fulfillment Centre
It is important to package the products and label them with care. There is no point in sending your products to Amazon and then to have them damaged along the way. Make sure that you pack the products with enough packing material to insulate them from drops, falls or knocks. Use Kraft Paper or bubble wrap. Add extra packing, especially if your products are very fragile. You cannot be careful enough.
Tip #7: Don’t be afraid to tweak your pricing strategy
Most Amazon sellers tend to under-price their products. Now, this is probably the only option left to you when competing in a hotly contested category, so look to sell in a category where there is little or no competition.
Your chances of selling the product are much better this way. In addition to that, perhaps you can try offering a discount offer or something extra, or maybe bundle your products. But if you want to make money on Amazon and indeed, get rich quick by selling on Amazon, be prepared to raise your prices.
No, you don’t have to raise your prices by a lot. As long as your volume is decent, even a small increase, not more than 4%, can improve your income by a lot.
Tip #8: Be prepared for the Holiday Season
The Holidays are when you will need to work hardest on Amazon. Sales of most Amazon sellers increase by three or four times over during the holiday season. It is the best time of the year for your business. But one of the mistakes you can make is to end up buying more inventory than you should.
So you will need to be able to forecast demand appropriately. How many products do you think you can really sell? Work it out on a Spreadsheet. Take full advantage of the Holiday Season, that’s the way you will grow as an Amazon seller. If you don’t make over the top profits during the holidays on Amazon, you will have only yourself to blame.
Tip #9: Look for fresh marketing opportunities
Amazon is such a great platform to sell your products because the company makes it really easy to get your products noticed. Amazon helps determine what works and what doesn’t. Take advantage of the marketing opportunities on Amazon. But don’t leave it at that. Market on Facebook, Twitter and try your hand at Google Adsense and Facebook marketing. Try different marketing strategies and find out what works best for you.
Tip #10: Stay up to date with Seller Central Reports
Amazon Seller Central is one place where you can access the latest reports that relate to your seller account. You will have access to the best tools to help you as a seller on Amazon as well. You will learn everything you need to know about how much you are earning on Amazon, how high or low your inventory is at the Amazon Fulfillment Centre, whether your promotions are getting you the extra sales that you had expected them to deliver and more. If there are any refunds or returns, you will learn the reasons for the same. Download the reports and make use of them to forecast your sales better. Also, keep yourself informed about the changes on Amazon, especially with regards to the fees.
So these are a few simple tips that you can use to get rich quick by selling on Amazon. Follow them well, because the possibilities of making money as an Amazon seller are limitless. We hope you enjoyed reading this, and look forward to your questions and suggestions.