Amazon is among the largest online marketplaces around the globe. However, if you’re thinking of selling your goods on Amazon You might be wondering what your experience will be like.
The good thing is that it is possible to gain a solid idea of what you should be asking by asking the right questions first.
The answers to these questions will allow you to estimate the amount of sales you’ll make each month and also know how you will most efficiently fulfill orders, and also calculate the amount you’ll have to pay the online giant.
1. How many sales can you expect to see per month?
The daily volume of sales on Amazon is incredibly high however it doesn’t mean that your sales will be as high simply because you’ve posted your listing on the website.
For a better idea of what you can expect to see if you are selling your product to customers on Amazon There’s an Amazon Sales Estimator Tool that can estimate the amount of transactions you’ll be able to handle each month.
Instruments to determine sales volume are based on the product’s category in, then compare that to the sales of similar products.
Naturally, however, you’ll need to take this figure with caution. There are numerous reasons your competitors could do better (or more) than you.
The estimator basically tells you whether there is demand for the product you are selling on Amazon.
As long as there’s the demand to sell your products or products similar to it and services, you’ll know that by implementing the correct branding and marketing campaign it is possible to win a portion of the sales.
Amazon provides its own ad marketplace where you can buy ads to show on the site’s e-commerce.
It is also possible to create your own ads via Google, Facebook and other advertising networks.
In this scenario you’d just direct your ads towards the Amazon page. You can also run advertising campaigns on social media such as Instagram as well as Twitter to help build brand awareness.
2. How will you fulfill orders?
If you decide to market the product you sell on Amazon then you’ll need to select one of the options for fulfillment. In the event that you’re able to have substantial inventory of your product available in stock, it might be beneficial to choose one of the options, which is Fulfillment by Amazon (FBA) option. With FBA as an seller, you can remove a number of logistical hassles:
- It is not necessary to rent an office space.
- There is no need for the expense of paying employees to choose the products, package them and then ship them.
- There’s no need to worry about losing your packages.
- You don’t need to be concerned about shipping costs, all you have to do is ask.
- The products are automatically eligible for Amazon Prime, which customers are raving about.
- Amazon offers support for customers.
- Amazon sends transactional emails to you.
Of course, Amazon charges a fee for these services. However, most of the time, the total will be much lower than the amount you’d pay for a warehouse rental and employ employees to handle the tasks.
If your company doesn’t own lots in stock, or do not prefer to utilize FBA because of a different reason, you can still fulfill the orders through Amazon and yourself. This isn’t the best option but it’s certainly not a major issue.
This isn’t as much of a challenge, however when you don’t have competitors. But, if you do, and your products are FBA, and come with no cost Prime Shipping You could miss out on sales because people love Prime’s two-day delivery option.
3. How much will you pay for Amazon?
As we’ve mentioned, selling your items on Amazon is not for free. Amazon has poured money to build a world-class online marketplace and is requesting sellers to pay for access to it.
There are two distinct kinds of accounts for sellers. The two kinds of accounts are based on the number of sales you are expecting such as An Amazon Individual seller plan and Professional plans.
The individual plan was designed for sellers who plan to sell less than 40 items each month. There is no subscription fee per month in this plan. However, you’ll need to pay $0.99 per item, plus the referral fee as well as an adjustable closing fee to Amazon when you sell.
The plan Professional is intended for sellers who plan to sell more than 40 products per month. Professional sellers pay an annual fee in the amount of $39.99 to Amazon however, this $0.99 per item cost is exempted.
If you’re curious about how much the fee for referrals is You can look up the fee chart on Amazon here. The percentage is determined by the category your product is in.
In the majority of instances, the minimum fee is $1. This is the amount you pay to Amazon for each product you sell.
Variable closing fees apply exclusively to the media (books, videos, music DVDs, video games, DVDs consoles, software and books). It is $1.80 per item of media that is sold.
Now having a better understanding about the price to offer your product on Amazon There’s some pondering to do. Are you sure Amazon is the right choice for your product?
If your margins of profit are sufficient to cover the costs Amazon is charging, then it is a good idea to make sense to list your products.