How to Start Selling on Amazon for Beginners: Top 9 Tips

by | Business

how to start selling on amazon

Amazon is almost a heaven for shoppers, this is also a “hub” of opportunities for sellers. Striving brands like New Balance, and Levi’s sell alongside beginner brands that will very soon appear on your radar sell on Amazon. Jungle Scout 2021 report showcased the following data “New Amazon sellers are earning an average of nearly $30,000 in annual profits”. However, the success of retailers on Amazon is not guaranteed. Apart from keeping up-to-date with Amazon’s ever-evolving trends and requirements, you need to be aware of the basic rules for starting and leading a business on Amazon. Check out our 9 tips on how to start selling on Amazon for beginners.

Start with Registration

Registering a seller account is the first step to joining the Amazon community. What do you need to get registered? 

  1. Ensure you have a business email address or customer account.
  2. Chargeable card.
  3. Valid passport or ID for identity verification purposes.
  4. Proof of address. 
  5. Company registration details (you may also need a VAT number).

Decide which seller plan fits your better: individual or professional (standard and premium correspondingly). The difference is the number of items you will be able to sell. If you sell more than 40 items in a month, a professional plan makes much more sense. It also allows accessing APIs and more selling reports as well as starting sales with programs like Launchpad or Handmade.

Make a Market research 

According to Investopedia definition, market research “is the process of determining the viability of a new service or product through research conducted directly with potential customers”.

Market research is essential to start and run a striving business as it gives your business a clear direction by illustrating your target audience and helping comply with their needs! Here are some questions you need to answer when conducting a research:

  • What are the key demographics of your market?
  • What problems does your product solve?
  • What’s the image of an ideal customer for your business?
  • Who are your competitors and what are their strengths and weaknesses?

Start Selling with Little

Your every sale is a milestone. However, before importing large batches, always test the market and warehouses. Amazon unified all its European online stores allowing the creation and management of product offer to the entire European Union from one EU member state. 

Start with warehouses in Germany. Analyze customers’ eagerness to purchase your products. Do things flow well? Well done, you can go on investing more. By making your business grow step-by-step, you leave space for improvements, learn by mistakes and thus make more intelligent investments.

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Select the Right Fulfillment Model

Amazon sellers have two options on how to deliver goods to shoppers. These are the merchant fulfilment and fulfilment by Amazon (fba).

A merchant fulfilment model involves you taking care of maintaining your inventory and shipping products to customers. 

Fba involves Amazon’s responsibility for packaging, labelling and shipping products to customers. Each model has its set of perks to consider.

Pros of Merchant Fulfilment 

  • Increased customer trust by free express delivery to Prime customers;
  • Greater sense of control over the shipment and storing process.

 Pros of Fba 

  • Advanced business scalability with Amazon automatic Prime eligibility and Free Super Saver Shipping;
  • Fulfilment by Amazon helps build and grow your international brand identity;
  • Amazon faster delivery and prime badge.

Do not Cheat with Reviews

Yes, positive reviews are important as they add credibility to your business making customers more likely to buy from you. However, you should win reviews with excellent customer service and high-quality goods. Do not try to purchase fake reviews as Amazon is highly likely to recognise the cheating and ban your account. 

Encourage users to leave testimonials about their experience with your brand by sending following-up emails or offering a discount for the next order in exchange for the review. What best strategy to follow chasing customer testimonials is only your decision to make. 

Make Calculations 

Basic calculations are required before starting any trading activity. How much would you earn after Amazon charges a percentage from a sale? What remains after paying taxes, salaries, etc? Understanding your costs is vital for smart business decisions. It helps you determine the profitability of a business and gives an understanding of how to set prices. After all, when you barely make ends meet, what is the point of all the risk and hassle related to running business?

calculations
Source: Unsplash

Mind VAT

Take care of your VAT (value added tax) compliance in advance. Depending on the nature of your business, your annual turnover, place of business establishment and fulfilment model, you will be required to register for VAT in a European country. Knowing VAT requirements and how to remain VAT compliant will contribute to a smooth selling experience on Amazon.

Want to learn more about VAT in Europe? Check out our ultimate guide on how to be European VAT compliant when selling on Amazon in 2022.

Balance Responsibilities

There should always be a reasonable balance between “I can manage it on my own” and “I’ll let professionals do it for me”. What you can handle and where professional assistance is needed depends on each case separately. Estimate your opportunities wisely. 

Register a Trademark and Open a Brand Registry

Those sellers trading under “Private label” are highly advised to open Amazon brand registry. The thing is, the Amazon brand registry gives a range of perks. Here they are.

Additional Content

A brand register will allow you to incorporate your own shop inside Amazon. Businesses are empowered to showcase their product features and brand history with rich text and images. It will help sellers drive conversions, boost sales and so increase revenue.

Brand Analytics

Opening the Amazon brand registry gives access to A+ brand analytics. Customer search terms and behaviour reports available lead to more informed and strategic business decisions. 

Protection from Competitors

One more reason to invest in the Amazon brand registry is proactive brand protection. Based on the information you provide about your brand, Amazon’s automated protection mechanisms proactively remove suspected infringing or inaccurate content. In addition, Amazon’s powerful search tools will let you easily find and report suspected violations. 

Curious about how to register a trademark? Our experts can help you register a trademark in the EU, UK, and the USA. Contact us to learn more!

amazon box
Source: Unsplash

Wrapping Up

Amazon is a large, competitive, and trustworthy marketplace. Buyers love Amazon for providing a secure environment for spending money while sellers enjoy the financial opportunities it opens. However, as with any business platform, Amazon requires a clear and concise business plan. By following the tips provided in this guide, you can be sure your Amazon journey is streamlined and you will see the return on your investment soon!
In case you need help with opening a European company for Amazon, registering and verifying your account, don’t hesitate to contact our managers! We know how to make your Amazon launch smooth!

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