Selling on Amazon: General Information
Amazon is the ultimate e-commerce channel in the Western world.
There's no need for many introductions, but rather some information that can be helpful for you to evaluate whether and how to start selling on Amazon.
Amazon boasts over 300 million active customer accounts worldwide, with customers purchasing approximately 7,400 products per minute from US sellers.
Create, develop, and cultivate your brand with Amazon's innovative toolkit: top-notch logistics, proven customer experience, detailed data insights, and cutting-edge advertising and marketing solutions.
- Recent research indicates that more than half of Amazon store sellers who sell on multiple channels prefer Amazon for customer acquisition.
- In a recent study, nearly 60% of Amazon store sellers who sell on multiple channels have identified Amazon as the fastest growing channel.
Sellers have the chance to reach millions of customers in over 180 countries as Amazon's selling partner.
- Don't have an Amazon seller account? Create an account on Seller Central and start selling today.
How to sell on Amazon
If you are looking to begin marketing your products online, selling on marketplaces is a great starting point. Amazon, in particular, often serves as the primary destination.
First and foremost, it is important to understand that there is a distinction between Amazon Marketplace and Amazon Retail, which is explained well in this article on our blog.
There are two distinct categories to consider when it comes to selling:
- Direct selling. With this approach, we will assist you in registering an account on Seller Central. The account will be under your VAT number. Your company will be the tax subject for every transaction with the buyer (you will need to issue a receipt or an invoice when requested), and you will have the legal responsibilities for the transaction and warranty.
- Indirect selling. In this case, you will use the accounts that we provide for selling. As these accounts are registered under our VAT number, our company will be the responsible tax entity for the transaction (we will issue the receipt or invoice when requested), and the consumer will exercise their right of withdrawal and warranty with us.
Identifying the Ideal Seller for Amazon Marketplace
We recommend that professional businesses consider selling on Amazon Marketplace.
If you're looking for a hobby, have a hobby business, or want to experiment, then we advise you to explore other more suitable platforms.
A vast array of merchandise categories are allowed on the marketplace, meaning that whatever products you have, they can be sold there. However, there are certain restrictions that all sellers must take into account.
For certain categories, such as alcoholic beverages and jewelry, it is necessary to obtain pre-approval from Amazon in order to publish your articles.
Amazon is a brand-oriented marketplace.
If you own a well-known brand or have a company that produces exceptional products, then Amazon is the perfect destination for you.
Over 50% of product searches start on Amazon. While customers seeking information may turn to Google, those looking for a product turn to Amazon.
Registering your brand on Amazon, which involves presenting documentation proving ownership of the brand, allows you to access features that the platform only offers to brands. These features include the use of enriched content for product listings and the ability to launch sponsorship campaigns. If you want to delve deeper, you can read this article on our blog.
Expanding globally on Amazon is easily achievable. And if you have your merchandise at the Logistics Centers, it becomes even simpler.
First and foremost, it's important to mention that Amazon divides its sites into three distinct regions.:
Europe: Spain, United Kingdom, France, Netherlands, Germany, Italy, Sweden, Poland, Egypt, Turkey, United Arab Emirates, India
North America: United States, Canada, Mexico, and Brazil
Far East: Singapore, Australia, Japan
Thanks to the Paneuropean logistics program, your merchandise is seamlessly moved between various Logistics Centers based on the demand that arises from the sites.
You just need to properly configure your control panel, and we will guide you in this process, in addition to managing incoming orders.
Payments and logistics
The payment model follows the traditional marketplace approach. When a purchase is made on the platform, the transaction occurs between the end consumer and Amazon. Afterward, Amazon will settle the proceeds from your sales, deducting their share for facilitating the deal.
FBA (Fulfilled By Amazon) logistics is the pride of Amazon, one of the pillars upon which the Seattle giant builds its success. For this reason, the IT infrastructure of its Logistics Centers is fully integrated with the eCommerce platform and made available to every seller.
To sell on Amazon's marketplace, you don't necessarily have to use their logistics. Instead, you can store your products in your own warehouses. However, by sending your products to Amazon's Logistics Centers, your offers will then be included in the Prime program, providing significant visibility and appeal to consumers.
Furthermore, you can utilize Amazon's logistics, regardless of whether you are selling products on their website or not. You have the option to retrieve your merchandise from their Logistics Centers to fulfill an order placed on your own website using a method known as "Multi-channel fulfillment."
Selling on Amazon: What are the Costs?
Determining an exact cost for selling on Amazon can be quite challenging due to the various configurations (whether or not logistics are involved).
The key aspects that you need to consider, in any case, are as follows:
- With an Account PRO, priced at approximately €40 per month, you gain access to the Seller Central platform, enabling you to showcase your entire inventory and seamlessly manage all incoming orders without any limits. Additionally, the Account PRO provides you with entry to the Brand Registry, allowing you to register your brand within Amazon's Marche Registry.
Sales Commissions. These are the most important component, as they represent the percentage that Amazon retains for each order you receive. The commissions can include a fixed and a variable portion, depending on the product category in which your items are organized.
“For over 8 years I have been helping sellers of different product categories, sizes of all kinds and even with specific needs. I am happy when I help companies achieve the goals we set for ourselves.”
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