How to start selling on Amazon?
- 28 April 2020
Amazon is the leader of the global e-commerce market. Although it is not officially present in Poland and other Eastern European countries, interest in this platform is constantly growing. Perhaps the American giant will soon become a competitor to the local marketplaces. So how do you start selling on Amazon and run it successfully?
Is it worth selling on Amazon?
Before we start our first actions, we must decide if they are worth undertaking. At this time, the platform is not officially available in Eastern Europe. However, its appearance can significantly affect the e-commerce market and create completely new opportunities for online marketers. If you are already thinking about selling on Amazon, read about it in our blog post of how to prepare for Amazon’s launch on the Polish market .
What are the benefits of selling on Amazon? First of all, the website creates the possibility of selling both popular and non-standard products, from very diverse categories. Secondly, the popularity of the platform means that the offer can reach even millions of customers in Europe. Auction preparation is simple and intuitive, and products are easy to find by buyers. However, to conduct legal sales there, several formal and legal requirements must first be met, such as, for example, having a registered company (e.g. limited liability company or sole trading) and providing its registry data, and the owner’s data, often with confirmation of the address of residence in the form of a utility bill. You must also pay a fee for selling products on Amazon.
In the article “How Retailers Can Move Online With Amazon“, the author mentions the following benefits of selling on Amazon:
• Your products are much easier to find and will be visible to literally millions of online shoppers
• You know you’re listing your products with a trusted and established brand
• Your products will be protected by Amazon’s security and fraud protection policies
• You can sell to people nationwide and across Europe in five marketplaces
• There are no listing fees; you only pay when you make a sale
• You have the option to let Amazon fulfil your orders, so you don’t have to deal with the packaging or shipping of your goods if you don’t want to
What is FBA and FBM on Amazon?
The next step is to choose a logistics model. Amazon offers two options: FBA and FBM. At FBA (Fulfilment by Amazon), the entire sales and logistics process is handled by Amazon. The role of the seller is to provide the goods and to promote the products. Then orders are sent to the customer directly from Amazon’s warehouse. This, of course, involves paying a certain commission for the site. In the FBM (Fulfilment by Merchant) model, the entire sales and logistics process remains with the seller.
Choosing a logistics model is one of the most important sales decisions on Amazon. The choice should depend primarily on the products sold. For small and light goods, FBA will work well because storage costs will be low. FBM should be considered for larger products. Costs can be converted using special calculators available on the Amazon platform. You can read more about it in a dedicated post in May!
How to monitor prices on Amazon?
The next step in selling on Amazon is monitoring the competitors’ offers and prices. It is crucial to accurately price products intended for sale on the website. Amazon is a specific platform and not all available tools monitor it properly. We wrote about it in more detail in the article: How to effectively monitor prices on Amazon?.
So to properly monitor prices on Amazon, it is worth reaching for a platform that tracks all its auctions. At Dealavo we have prepared the tool, which provides automated price monitoring in marketplaces, including Amazon. If you would like to learn more about our platform, please contact us – we will present you the most important functions and advise you on how to use them effectively.