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How to Start Your Business on Amazon

How to Start Your Business on Amazon Sitting At Home (How to Start Your Business on Amazon)

Online trading is a big medium of doing business these days. Through this internet-enabled business, big traders to small traders are also doing good business. In such a situation, people starting from the site also get the opportunity very easily. One can sell their goods online from anywhere in the country. At present, there are many e-commerce sites in which this type of business is being done. Amazon is also one such e-commerce site, where almost all types of goods are traded. If a person wants to earn profit by trading his goods through this site, then it can be possible very easily. Here is all the related information to start a business on Amazon.

How sales are done on Amazon

As soon as we open the Amazon website, we see many different things in front of us. Many times when a new person sees it, he feels that all this stuff is from Amazon. But it is not so, Amazon also sells many of its goods from this site, but apart from this other companies also sell their goods from here. Amazon sells most of the Amazon Echo speakers, tablets, and a variety of home items as its accessories. By looking at the list of their websites, you will know that all the goods are not of the Amazon brand. For example, Samsung phones are sold on Amazon, but there are no direct relationships between Samsung and Amazon. Therefore, anyone over the age of 18 can become an Amazon seller. If you want to sell any of your goods on Amazon, then you can sell them, but in return Amazon will take some of your share (commission) from your every sale, thus making Amazon a profit.

Registering as an Amazon Seller

There are two types of options available when you sign up for Amazon as a seller. An individual can start his business by creating his personal account or creating a professional seller account. However, both these types of accounts have their own limitations and features. Because of this, any person should choose an account according to his business.

Individual seller Account

The special thing about this type of account is that there are no annual or monthly fees. The seller can sell a maximum of 40 items each month through this account, and all of these items must be listed on Amazon. An individual seller can never create a new inventory of goods, so the seller will only be able to sell goods that are already running on the Amazon platform. The seller will not be able to sell goods under his label from this account. Registration is also free. Amazon also charges a $0.99 value (referral fee) plus a closing fee for each item sold. Those opening their account do not get any kind of ‘advertising platform’ which prevents them from promoting their goods.

Business Vendor Account

The merchandise seller account is very useful for doing business on Amazon. To use this account, the merchant has to pay a fee of $40 each month. With the help of this account, a seller can easily sell the goods of his label. The sellers of this account can sell unlimited i.e. as much as they want every month. At the same time, Amazon Business also gives the facility of ‘Listing’ to the seller. One of the advantages of this account is that sellers get an ‘advertising platform’ to promote their goods. You can also register for the ‘Amazon fulfillment’ program through this account.

Amazon Business Model

Amazon offers a variety of ways for its sellers to set up a business. This is the special information related to Amazon’s business model.

retail arbitrage

Under retail arbitrage, you can buy goods at a discount from any retailer and sell them on Amazon at a higher price and earn profits. You can start with a personal account of up to 40 items purchased. However, there are a few things to keep in mind when it comes to retail arbitrage.

  • You must have a receipt or invoice for your goods that the manufacturer or shopkeeper has given you. The receipt you get from the retailer on Amazon is of no use.
  • You will not get the manufacturer’s receipt for taking the goods from the retailer, so you will have to do business by making your goods in the list of used goods (used).
  • Make sure the item you are going to trade is not restricted on Amazon. Otherwise, your goods will not be sold
  • Your account (personal account Amazon) may be closed upon complaint by the main manufacturer of the goods. It has very little profit compared to wholesale.

Online Arbitrage

Just like retail arbitrage, you can buy goods online at a low cost and sell them on Amazon and make a profit. Since the customer may be able to find the goods you are selling at lower prices, there is no chance of any significant profit from such trading.

Wholesale Products

You can earn good profits from Amazon by selling wholesale goods. Wholesale means buying more goods from the manufacturer directly from the manufacturer and selling them on this site. The point to be noted here is that the goods do not belong to the seller’s brand and the seller is a third-party seller. It requires a wholesale license before starting. Wholesalers get a lot of profit on Amazon because you get the goods at a lower price and you sell at a higher price on Amazon.

Private Label Products

You can buy goods from any manufacturer and you can do branding by giving your name. After this, your branding goods will be sold on Amazon. Having a private label can allow Amazon to list you. If you wish, you can better improve the quality of your goods, through this process the seller also gets a very good profit.

starting an Amazon Fulfillment by Amazon (FBA) business

Amazon offers a variety of features to its merchants that ease the hassles of doing business. ‘FBA’ is a very convenient program run by Amazon for its merchants. Under this program, the merchant sends his goods to Amazon, for which Amazon is responsible for maintenance and delivery. In return for this work, Amazon takes some money as commissions. Many merchants become part of this program run by Amazon. So that they can be relieved of the responsibility of delivery. As an ‘FBA seller’, the merchant only needs to have their goods delivered to an Amazon warehouse. After this, on one side the merchant sells his goods and on the other hand, Amazon keeps on delivering the goods.

Benefits of being an FBA seller

  • FBA sellers are able to use Amazon ‘Prime logo’ for their goods. This logo starts increasing the trust of customers in your goods.
  • Due to this program, the ranking of your goods in the ‘search result’ is better, so that your goods can be found when you search the internet.
  • The biggest advantage of this program is that it keeps the Amazon delivery network running smoothly. This allows the customer to receive the goods purchased by him on time.

FBA Program Fees

Amazon charges fees for this program in two forms. The first is ‘Fulfillment Fee’ and the second is ‘Monthly Storage Fee’. Under the fulfillment fee, Amazon charges for packing, shipping, etc., while under the monthly storage fee, it charges money for storing your goods in its warehouse. The total cost of an FBA depends on the dimensions of your luggage package. In addition, Amazon may charge you labeling fees, long-term storage, return processing, stock removal fees, etc. under this program.



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