Key points
- Selling products on Amazon will broaden your business’s reach
- It’s important to choose the right plan to get the most out of selling on Amazon
- Amazon is a highly competitive marketplace
- You must adhere to strict rules in order to sell on Amazon
Amazon: The world’s largest marketplace
Although Amazon started as a small online bookstore in 1995, it’s one of the world’s largest online stores today. Today, it sells virtually everything from beauty products to home appliances and car parts. The great news is that 40% of the sellers on Amazon are third party sellers. This means that you too can sell products on the world’s largest online marketplace. Getting your company to sell products on Amazon is a powerful way to attract new customers and broaden your reach. So how do you get your company to sell products on amazon? And more specifically, what steps can you take to give your company the best chance of success?
Choosing the right plan
Deciding to start selling products on Amazon exposes your company to millions of customers worldwide. Whether you’ve just started your company, or want to get your products into a global marketplace, the exposure that Amazon offers is unparalleled.
Amazon have 2 selling plans, one as an individual seller and the other as a professional seller. Individual sellers have to pay $0.99 per sale, and a professional seller has to pay $39.99 per month and sell over 40 items. If you’re selling something as a one-off, you would opt for the individual plan. However, if you want to sell more frequently, $39.99 a month isn’t a huge price to pay. You just have to make sure you reach 40 sales per month to get your money’s worth.
Be weary of the competition
It’s a jungle out there, and nowhere more so than in the world’s largest online retailer. Depending on what you sell, it’s likely there are many sellers who sell products in a similar space to yours. If you want your company to sell products on Amazon, have a think about your selling points. What makes your products different from the rest? How do your strongest competitor’s market themselves? Selling products online itself requires a different marketing strategy from selling products in store. You may also have to adapt your strategy to sell on Amazon.
Comply with all the rules
Amazon has strict rules when it comes to selling online. In addition to the Australian Competition and Consumer Commission (ACCC), you also have to adhere to Amazon’s rules. If you don’t, they can ban you from selling on their site. Using Amazon as your sole vehicle to sell products is not without risk. It’s worth maintaining some products on your own site to have a backup in case anything happens.
Protect your Intellectual Property
Depending on the type of products you sell, it’s important to ensure your intellectual property is protected before selling on any online marketplace. You can do this by registering trademarks for your company logos, slogans and any designs. There have been incidents of unethical sellers registering a product that is already listed under the same product code and then providing counterfeit products to customers. This has resulted in the original sellers getting bad reviews, and if you get a series of bad reviews, it is enough for Amazon to prohibit you from selling on their site. IP Australia have useful information on how to protect your products in the digital age and it is worth engaging an intellectual property lawyer to determine what protection you should register for.
Decide whether you want to be a Fulfilment By Amazon Seller
If your company already operates as an online business, it is likely that becoming an FBA seller isn’t necessary as having your orders shipped by Amazon does entail additional charges. Being an FBA seller means that Amazon take care of the shipping and general logistics of getting your product out to the customer. For an extra fee, you can make sure that your company’s shipping methods are reliable, and the same goes for customer returns. Deciding whether or not to be an FBA seller depends on whether your company has a large amount of stock, a significant profit margin, and whether it has the capabilities to fulfil orders on its own. However, registering your company to sell products on Amazon requires that you have an adequate shipping and delivery system in place.
Getting your company started on Amazon will provide enormous opportunities and the potential for your business to grow in a global market. However, it is important to choose the right plan and take measures to ensure your products are protected and more importantly, that your customers are satisfied.
