Are you contemplating starting a business online? We live in the digital age where many people spend time online. Setting up an online business is a good way to tap into this pool of potential customers. As it stands, over 2.14 billion people shop online, representing about 27.6% of the total population in the world. This statistic shows the growing adoption of online shopping by various people. Therefore, starting a business on a well-known platform is a wise and profitable investment decision. Amazon is such a platform. According to Forbes, 89% of people are more likely to purchase items from Amazon than other online shopping sites. In this post, we will focus on starting an Amazon business.
Starting an Amazon business
What makes Amazon great is that there are various ways of starting a business on the platform. On Amazon, there are many ways to succeed. However, they begin with choosing a business model and the products that you plan on selling. Regardless of your business model or your chosen type of product, setting up and running an Amazon Business remain the same. Below are the steps to set up and run an amazon business:
1. Choose a business model
There are many business models that you may use for your Amazon business. Settling on a business model plays a critical role in improving sales. Below are some models that you can use:
Private label: This refers to the process in which a retailer renames/rebrands a product that they have manufactured.
Wholesale: A retailer may buy goods at a discounted price or a low cost and then sell the individual units for profit in a retail market.
Dropshipping: This is a business model by which a seller transfers the customer orders directly to a supplier or a manufacturer instead of keeping their inventory.
Handmade: You can make your products like accessories, jewelry, home décor by hand and put them up for sale on the Amazon marketplace.
Retail and/or Online Arbitrage: Arbitrage refers to a method that retailers find a discount or low-cost goods on eCommerce sites and resell them on the internet.
2. Choose the fulfillment method
You can choose between;
Fulfillment by Amazon (FBA)
Amazon has among the most advanced networks for order fulfillment in the world. With FBA, you store products in an Amazon fulfillment center. Workers pick, package, ship, and offer customer service for your products.
Fulfillment by Merchant (FBM)
This refers to when retailers put their products on Amazon, but they handle the fulfillment of orders and customer service.
Each method has its advantages and disadvantages. Therefore, closely examine each before settling on either of them.
3. Settle on the products that you will sell
The next step is deciding which products you will be selling. You can sell fashion products, food products, handmade items, among many other categories. If you plan to sell handcrafted items, this process may be already sorted, although you still have ensured that there is a demand for the product on Amazon. Tools like Jungle Scout are essential for finding the highly demanded products.
4. Apply to become a seller
We will discuss the process of registration to become a seller in the next section.
5. Sourcing your products
Once your registration has been approved and verified, you can start sourcing for the product(s) that you will be selling. If you use a private label business model, you can find a manufacturer using the supplier database on Jungle Scout or Alibaba.
6. Creating your product listing
Finally, you can create your listing and use it as a basis for growing your Amazon sales.
Creating an account as a seller on Amazon
After figuring out the product(s) that you intend to sell on the platform, complete the process of registration as a seller. The process is as below:
1) Head to https://services.amazon.com
2) Next, scroll the page that is below the link showing how you can become a seller on amazon
You will see a link labeled “see pricing->”, click on it.
(With the “See pricing->” link, you can see the difference between professional and individual accounts. Thus, you can choose what registration to use”.)
3) Choose between professional or individual accounts
You have two options for seller plans on Amazon, Individual and professional plans.
Are you going to sell over 40 products per month? Then a professional plan is your best option. Whether you do not consider yourself a professional or sell as a hobby, the plan helps you save money. However, if you plan on selling less than 40 units a month, select an individual plan.
4) Key in your details and click “Create a new account”
After selecting a seller plan, a form will appear for you to enter your seller account’s credentials. Click “Next” when you are done.
You will see another screen requesting you to enter a Time Password (OTP) sent to your email by Amazon. It verifies your email. After entering the OTP, click on the “Create Your Amazon account” button.
5) Choose the location and type of your business.
In which country is your business located? You must get this right because Amazon will verify it.
Amazon lets you choose from the following business types; Charity, Privately owned business, publicly owned business, state-owned business, or none (if you are an individual). You then have to enter all your three names. After this, click on the “Agree and continue” button.
6) Provide your personal information
After selecting the type of business, Amazon will ask for your details. To validate them, Amazon will ask you to give identification. It may be a driving license or a passport. For verification, they may ask you to provide your phone number.
7) Select your marketplace
After filling in the personal details, check the box below to select the marketplace(s). A marketplace, in this case, is the location of an Amazon store, amazon.co.uk, amazon.ca, amazon.in, among others. Click “next”.
8) Provide your billing information
This is a way for Amazon to verify your identity and ensure that your credit card information is valid. Amazon requests the credit card number, the name as it appears on the card, and the date of the credit card’s expiry. Click “next” at the bottom of the page when done.
9) Adding the Amazon store and the product information
After your credit card information is validated, Amazon will ask you several questions about the products you intend to sell and your amazon store. They include;
- What is the name of your Amazon store?
- Do you have UPC codes for your product(s)?
- Are you the manufacturer? Who is your product’s brand owner?
- Do you have registered trademarks for your products?
After answering these questions, click “next”.
10) Validation of the address
After completing the steps above, Amazon requests you to confirm the business address you had provided earlier (in the “personal information” screen).
If the displayed address is correct, click on the “confirm” button. A message appears showing that Amazon will send a postcard to that address. It also includes a verification code. When the postcard arrives, enter the code into the “enter the code” field. To finish the process of verification, click “next”. You are now in. All you have to do is log into https://sellercentral.amazon.com. To get started.
To ensure increased security, set up two-step verification on your Amazon account. However, note that there has been a change registration process for a seller on Amazon. It is primarily to help in verifying the seller’s details. To be prepared with the documents, read our article on “Amazon seller verification”.
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