Amazon is the place to sell things online, and you can make lots of money if you do it right. But selling on Amazon can seem confusing if you’re new to it. Don’t worry, though, as this guide will make everything simple.

We’ll walk you through each step so you can start your own Amazon business. All that said, there’s more to Amazon than meets the eye. So let’s cover all the essentials with our beginner’s guide to ensure you start on the right track.

Let’s dive in

Step 1: Decide on Your Amazon Business Model

Step 2: Find Profitable Products To Sell

Step 3: Open Your Amazon Seller Account

Step 4: Organize Your Inventory Management and Product Fulfillment

Step 5: List Your Products

What Are Some Additional Tips for Selling on Amazon?

Is Selling on Amazon Worth It?

Let SET Marketing Lead You to Effective Amazon Selling

Step 1: Decide on Your Amazon Business Model

The first step is deciding how you’ll get products to sell on Amazon. There are a few different ways, called “business models.” Here’s a quick look at the most popular options:

 

    • Private Label: You design and create your own unique products. You put your brand name on them. This takes some work, but it can be very profitable.

    • Wholesale: You buy products in bulk from manufacturers or other sellers. Then, you resell those products on Amazon for a higher price.

    • Retail Arbitrage: You hunt for good deals on products at stores like Target or Walmart. You then sell those products on Amazon to make a profit.

    • Online Arbitrage: Instead of shopping at physical stores, you find deals on websites like eBay and Craigslist. You then resell on Amazon. This is a great strategy on Amazon Prime Day.

    • Dropshipping: You never actually buy or store any products. When someone buys on Amazon from you, a supplier sends the item directly to the customer.

Each of these has benefits and drawbacks. Think about how much money you have to start with and how much time you can put into the business. So read on, and let’s find the perfect model for you.

Step 2: Find Profitable Products To Sell

Choosing the right things to sell is the most important part of your Amazon business. Pick the wrong stuff, and you won’t make good money. But get it right, and you’ll be set up for success. There are a few ways to make sure you’re on the right track:

 

    • Think Like a Customer: What kinds of products do you buy on Amazon? What would you be excited to find? This can be a great starting point.

    • Look at Best-Seller Lists: Amazon shows you which products are selling the most in different categories. Check these lists often to see what’s trending and popular.

    • Use Product Research Tools: These tools can help you get even more specific data. They let you see how often a product sells, how much competition it has, and even its estimated profit margin. Many of these tools offer free trials, so it’s worth exploring a few to see which one you like best.

These guidelines are a great start. Now, let’s talk about the key to good product research. You want to find products that have these three things:

 

    1. High Demand: You need a product that a lot of people want to buy. This high demand will increase your potential customers.

    1. Manageable Competition: You don’t want to compete with hundreds of other sellers for the same product. Look for items with fewer reviews, which usually means it’s a space that’s easier to break into.

    1. Good Profit Potential: You’re in business to make money. Make sure the product you choose lets you make a decent profit after Amazon fees.

Finding the perfect product takes some work, but it’s worth it. Spend time exploring the different methods and tools available.

Don’t be afraid to experiment until you find a product you’re confident about. Remember, a product with high demand, manageable competition, and good profit potential is your ticket to success on Amazon.

Step 3: Open Your Amazon Seller Account

Once you have a few awesome products lined up, it’s time to make your Amazon Seller account. There are two types:

 

    1. Individual: This plan is best if you plan to sell less than 40 items per month. You don’t pay a monthly fee, but Amazon takes $0.99 for every item you sell.

    1. Professional: This is the better option if you want to sell more than 40 items a month. It costs $39.99 per month, but you don’t pay that extra $0.99 per item fee.

Most people who are serious about starting an Amazon business choose the Professional plan as their central account. It’s often the cheaper way to go in the long run.

When creating your account, you’ll need to have a few things at the ready. These include:

 

    • Bank account number and routing number

    • Government ID

    • Your business’s tax information

    • A credit card that you can use internationally

    • Phone number

Once you have your central account set, you can proceed to managing your inventory for sale. 

Step 4: Organize Your Inventory Management and Product Fulfillment

This is where you decide how to get your products to your customers. Amazon gives you two main options:

 

    1. Fulfillment by Merchant (FBM): You do everything yourself. Store your products, package them, and ship them out when orders come in.

    1. Fulfillment by Amazon (FBA): You send your products straight to Amazon’s warehouses. When a customer orders, Amazon takes care of shipping. It’s pretty hands-off.

Which one is better? That depends on your situation. If you’re just starting out and selling only a few products, FBM might be easier. It gives you more control and can sometimes be a bit cheaper. But if you want to save time and hassle (and have a bit of space to spare), letting Amazon handle things with FBA can be a huge relief.

Most new sellers start with Amazon FBA — it’s much easier, especially if you don’t have much time or space for running your own warehouse operation. However, there’s a catch. 

FBA comes with fees. Here’s what those FBA fees include:

 

    • Fulfillment Fees: This is what Amazon charges to pick, pack, and ship your products. The fees depend on the size and weight of your item.

    • Storage Fees: Amazon charges you a monthly fee to store your products in their warehouses. The longer something sits there unsold, the more this can add up.

It’s important to factor these fees into your pricing. You need to make sure you’re still making a profit after Amazon takes its cut.

No matter which way you go, you need to think about inventory management. This means keeping track of how many products you have and how quickly they sell. You don’t want to run out of your hottest items and miss out on sales.

Step 5: List Your Products

Now, it’s time to list your products on Amazon. There are two ways this might go. If someone else is already selling the same product, things are super easy. Find that existing listing and add yourself as a seller. You’ll be able to compete on price and other factors.

But let’s say you’re selling a brand-new product. It’s time to create a whole new listing. Don’t worry — Amazon will walk you through it. You’ll need to write a title and a description and then add any other metrics or information on your product detail page.

Here’s where you need to put your best sales hat on. View your product listing as your mini-advertisement. 

Here’s how to make it really shine:

 

    • Snappy Title: Make it clear what you’re selling and use relevant keywords so people find your product when they search. Think about what you would search for if you were the customer.

    • Great Description: Tell people why they should buy your product. What’s so special about it? Explain how it will solve a problem or make the customer’s life better. Think honestly about what makes this the best product out there, and make sure your product descriptions reflect that.

    • High-Quality Pictures: Several clear, well-lit photos will let people see exactly what they’re getting. Show the product from different angles and in different situations if it makes sense. Pretend you were the customer looking at these photos — would they convince you to buy?

Creating a great product listing is one of the most important steps in your Amazon journey. Take your time and make it something you’re truly proud of.

What Are Some Additional Tips for Selling on Amazon?

There are a few extra things to keep in mind that can help give you an edge as a new Amazon seller. Here are some quick but important tips:

Avoid Restricted Categories

Some product categories, like certain electronics or groceries, require special approval from Amazon before you can use your selling account for business. It’s best to steer clear of these when you’re an Amazon beginner.

Get Your UPC Codes

Every Amazon product needs a UPC code. This barcode helps track your item in the massive Amazon marketplace. You can easily buy UPC codes online.

Use Amazon Advertising

Running sponsored product ads on Amazon can get your listings in front of more potential customers, helping you boost sales. It’s a great way to groq your online business, even if you’re starting with a small budget.

Optimize Your Product Listings

Make sure your product title, descriptions, and images are all SEO-friendly. Use relevant keywords in your listings to help Amazon customers find your items when they search. This is your chance to show customers why your product is the best.

You can take it a step further by utilizing Amazon’s Automate Pricing Tool. It will assist you in making your product a Featured Offer, which, in turn, will push you toward more sales.

These tips might seem small, but they can make a big difference in your Amazon success. Invest a bit of extra time into getting them right, and you’ll be setting yourself up for a much smoother selling journey.

Is Selling on Amazon Worth It?

Absolutely. People make a lot of money building an Amazon business. With a bit of work, you can start a fantastic side hustle that brings in extra cash each month — some sellers even turn their Amazon store into their full-time income with a successful professional selling plan.

But here’s the thing: it takes effort. You won’t become an Amazon millionaire overnight. Be ready to put in some time to learn about Amazon Seller Central, product listings, customer reviews, and how to ship orders efficiently.

Let SET Marketing Lead You to Effective Amazon Selling

Remember, Amazon is a massive opportunity for those who want Founder Freedom. With the right guidance and tools, the process doesn’t have to be overwhelming. If you’re ready to take your Amazon journey to the next level, Setting The Pace Newsletter can provide great insights for any ecommerce business.

And for those truly serious about building a successful brand, SET Marketing can give you the in-depth knowledge and support you need to optimize for success.