The chances of successfully running an e-commerce business increase as amazon expands and improves.
E-commerce saw a significant escalation in 2020, as consumers moved from buying in stores to online shopping. The consumers believed that their online purchases had increased by 34%, while their consumption dropped all in all.
At the end of 2020, 74% of consumers think that the future is online shopping as it escalated as much as 69% in starting months.
All these statistics demonstrate that there are enormous opportunities for e-commerce entrepreneurs. You must look into the Amazon seller registration process if you aim to utilize the perks amazon offers.
To verify your account, which provides you with colossal opportunities to create a successful Amazon business, we will demonstrate the latest process.
How to start an Amazon business
There is this thing about Amazon that there isn’t any specific way to start an Amazon business. You can select and choose to sell multiple products from the business model. You can become a successful seller with ease on Amazon.
The first step requires you to choose from multiple business models.
- Private Label: It means buying products from a manufacturer and changing its name using your brand name.
- Wholesale: It means purchasing products in bulk form at a cheaper rate and selling them in the retail market.
- Online and/or retail arbitrage: It means purchasing products at reduced rates and selling them afterward.
- Dropshipping: It means that the seller doesn’t have to keep up product inventory and moves his orders towards the manufacturer straight away.
- Handmade: It means that the seller creates his products by hand and sells them online.
The second step is to choose a fulfillment method:
Fulfillment by Amazon (FBA)
Amazon FBA business is a method in which you send your products to Amazon, and it will ship them upon receiving an order. In the Amazon FBA business, customers will get excellent service.
Amazon FBA sellers don’t have to do much as the essential work of dispatching the orders will be done by Amazon.
Amazon FBA for beginners is an excellent Amazon initiative that allows the seller to reach more and more customers.
Amazon FBA fee is such that individual plans cost $0.99 and professional programs cost $39.99 per month. Also, the Amazon FBA fee is updated frequently.
Amazon FBA for beginners can serve as a great opportunity because, in this way, the sellers learn to do business without involving many risks.
Fulfillment by Merchant (FBM)
Both of the methods mentioned above have their advantages and disadvantages so you must select the one which will serve best for you.
- The next step is to select the product that you want to sell. The product should have a considerable demand on Amazon, and should have a good profit margin. Use online tools like Jungle Scout to find profitable products. If you are an Amazon FBA seller, you should select small and lightweight products to gain maximum profit.
- The next step to register yourself on Amazon as an Amazon seller. If you become an Amazon FBA seller, your workload will be significantly less. Amazon FBA business is for you if you opt for it as a side business.
- You must start setting up your products once you have completed the necessary steps and you have been approved as a seller by Amazon. As an Amazon FBA seller, you should lower your shipping costs to attract customers.
If you want to sell private labels, you can look up a manufacturer who can create your products.
The next step is to list your product items.
How to create a seller account on Amazon
The steps to create a seller account are easy.
- Visit www.services.amazon.com
- Click on “Become an Amazon seller.” You’ll find ‘See pricing —>’ on the right side and click it.
- You have to select whether you want to go for an individual or professional seller account. The difference between these both is that you should select a professional seller if you are about to sell more than 40 products per month, but you must select an individual if you are about to sell less than 40 products per month.
- Now create your account by entering your email address and password. After entering, click next. Amazon will send you an OTP to verify your details. The next step is to click on the ‘Create your Amazon account’ button.
- Now you have to select your business location and type, then select your country. While in business, you have to tell Amazon that if your business is privately owned or publicly owned or state-owned or charity or individual. In this step, you also have to write your full name. After entering these particulars, you should click the ‘Agree and continue’ button.
- In the next step, Amazon will ask for your number for verification. After giving the number, you should click on the ‘Next’ button.
- Now you have to choose your marketplace. It focuses on the Amazon store location where you are about to start your sales.
- Next, you have to enter your billing information. This step is to validate if the seller’s credit card details are reliable.
- In this step, you have to add information about your products. You have to write your Amazon store’s name, UPC codes if available, whether you manufacture your products, whether you have a trademark for your products. Then click on the ‘Next’ button.
- The last step is for Address Validation. You’ll be asked to confirm your address. If the address is entered correctly, you will receive a verification code and postcard at your address.
And that’s it. Now you have completed all the steps. A 2 step verification should also be done to secure your account. Once all this has been done, log in to www.sellercentral.amazon.com.
How much does it cost to sell on Amazon?
The good news is that Amazon requires no registration fee. But if you want to sell as a private label business, you have to spend money buying the inventory before selling it.
A recent survey of more than 1,000 Amazon sellers depicts that a total of 17% have kick-started their business with fewer than $500 while the average cost is $3,836.
Additionally, you have to pay some fee:
- Amazon referral fees: This involves the fee taken by Amazon as its commission because it is letting you sell products on its platform. It is different for each category but is kept between 12-14%. The average fee is 15%.
- Individual seller fees include an add-on of $0.99 on the Amazon referral fee.
- Amazon FBA fees: You have to cater to the shipping and handling costs if you select Amazon’s FBA program. For lightweight items, it is $3.00, but it can increase if the shipment is a heavyweight. Amazon FBA fees are also applicable if you are an Amazon FBA seller and are affiliated with Amazon FBA business. Amazon FBA sellers will have to pay additional Amazon FBA fees if the parcel returns.
- Other Amazon fees: Amazon can also charge you for inventory, media, and advertisement purposes.
We hope you have got answers to all your queries now. Buckle up and become an Amazon seller right away.
Kevin David is a self-made multi-millionaire, started his entrepreneurial journey as a leading Amazon seller. He is now a world-renowned leader in eCommerce, entrepreneurship, social media, and online business. With a goal to help every aspiring entrepreneur around the world, he started his online Amazon FBA course training. His online courses have helped hundreds of thousands of people around the world to achieve financial momentum and live the life they have always dreamed of.