Opening an Amazon store can be a great way to start or grow an ecommerce business. Amazon provides a massive built-in audience of millions of shoppers and handles payment processing, shipping, and customer service on your behalf. However, launching an Amazon seller account requires some preparation and strategic decisions to set your business up for success. Here is a step-by-step guide to opening an Amazon seller account and getting your products listed for sale.
Decide on your Amazon seller account type
The first step is deciding what type of Amazon seller account best suits your needs. Amazon offers two main account options:
Individual seller account
An individual seller account is intended for small scale sellers who expect to sell less than 40 items per month. This account has no monthly fees but charges $0.99 per item sold. Individual accounts are limited to selling up to 40 items per month. This account type is best suited for casual sellers or those just starting out on Amazon.
Professional seller account
A Professional Seller account is for established businesses that expect to sell more than 40 items per month. There is a $39.99 per month subscription fee but no per item fees. Professional accounts allow unlimited listings and access to additional features like shipping discounts and the ability to create a customized seller store. This account type is ideal for those running Amazon as a full business.
Consider your expected sales volume and needs when deciding between an Individual or Professional account. You can always start with an Individual account and upgrade later as your business grows.
Register for an Amazon seller central account
Once you’ve decided on an account type, it’s time to register. Visit Amazon Seller Central (sellercentral.amazon.com) and click on the “Register Now” button.
You will need to provide some basic business information to sign up, including:
– Your business name, address, and contact details
– Credit card information for account security
– Tax information like your EIN if you have one
Amazon will review your registration and approve your account within a few days. Once approved, you can begin setting up your Seller Central dashboard.
Set up your Seller Central account
With your account created, it’s time to get your backend dashboard fully set up. In Seller Central, you will take care of important tasks like:
Complete your account profile
Provide additional information about your business, products, website, and branding. The more detail here, the more professional your seller profile will appear to customers.
Set up payment and tax information
Connect your bank account to facilitate transfers from Amazon sales. Confirm your tax identity and set up tax settings.
Review policies and agreements
Familiarize yourself with Amazon’s detailed seller policies and agreements so you stay compliant. Key details cover areas like fulfillment, prohibited products, returns, and more.
Explore selling tools and settings
Review available selling tools like FBA, ads, and more. Adjust account settings for preferences like email notifications and profile visibility.
List your products
Once your account is ready to go, it’s time to publish listings and get your products visible in Amazon’s massive marketplace.
Create listings manually
For each product, you’ll need to create a detail page including title, description, images, pricing, quantity, and more. Ensure listings are well-optimized to drive clicks and sales.
Use inventory loading tools
For larger catalogs, use tools like Amazon’s Bulk Listing Upload to quickly publish multiple products. Data feeds can also help automate listing management.
Take high quality product photos
Invest in images that accurately showcase your items. Amazon has strict requirements for minimum image sizes, formats, and more.
Consider Amazon advertising
Use Amazon Sponsored Products ads to promote new listings above search results. Headline Search ads also help increase product visibility.
Monitor and improve listings
Check back regularly to update inventory, adjust pricing, and add new product detail content or images as needed.
Consider using FBA
One major decision is whether to handle your own order fulfillment or leverage Amazon’s Fulfillment by Amazon (FBA) service.
Benefits of FBA
FBA provides storage, packing, and shipping for your orders. Amazon handles customer service and returns too. Key perks include:
– Prime eligibility – Products stored in Amazon’s fulfillment centers can qualify for Prime’s free 2-day shipping. This helps drive sales.
– Reduced shipping costs – Amazon’s discounts with major carriers help save substantially on fulfillment costs.
– Faster delivery – FBA facilities are located near many customers so items arrive quickly.
– Expanded reach – FBA items can be sold on Amazon sites in Europe, Japan, and beyond.
Drawbacks of FBA
Downsides of FBA include:
– Monthly storage fees – Amazon charges for space used to house inventory. Fees vary by product size.
– More complex returns – You’ll need to re-acquire returned inventory from Amazon facilities.
– Loss of branding – Plain Amazon packaging is used for shipments rather than custom boxes.
Weigh the pros and cons vs. your resources and order volume when deciding on FBA. Many new sellers start handling fulfillment and explore FBA later as sales increase.
Drive external traffic to your listings
Don’t rely solely on Amazon for sales. Make efforts to promote your listings and brand outside of Amazon as well. Useful tactics include:
– Creating an ecommerce website with links directing to your Amazon listings
– Driving traffic to your website and Amazon store through online ads and social media marketing
– Building an email list and promoting your Amazon presence via email campaigns
– Getting press coverage or blogger reviews to boost brand awareness and trust
The more streams of traffic you can direct to your Amazon listings, the more sales you’ll make. Amazon advertising and SEO alone shouldn’t comprise your entire marketing strategy.
Use Amazon tools to monitor performance
Amazon Seller Central provides powerful analytics to track your store’s growth and identify opportunities for improvement. Make sure to regularly review:
Key metrics dashboard
Check figures for sales, traffic, conversions, advertising spend, and more. Look at trends over time.
Product analytics
See which ASINs are performing best. Identify those with low sales or high return rates.
Keyword tracking
Find best ranking keywords to refine product SEO and advertising targeting.
Negative feedback
Address any customer concerns or issues flagged through reviews. Maintain ratings above Amazon’s seller standards.
Restock alerts
Get notifications when inventory runs low so you can replenish. Avoid missing sales due to stock-outs.
Regularly monitoring performance data enables you to capitalize on what’s working and quickly fix problems areas.
Market across Amazon channels
Make the most of cross-merchandising and advertising options across Amazon’s family of sites:
Amazon marketplace
This core platform should be your central focus. Enhance visibility through promotions, ads, and great SEO.
Whole Foods Market
Consider placing your products in physical Whole Foods stores through Amazon’s Local Market program.
Amazon Fresh
Expand to grocery delivery by getting your eligible physical products supplied to Amazon Fresh hubs.
Amazon Handmade
List qualified handcrafted items on this marketplace specifically for artisans.
Amazon Launchpad
Showcase innovative newly launched products here to tap into engaged early adopters.
Amazon Business
Supply business, education, and government organizations via this B2B marketplace.
Amazon Advertising
Leverage Amazon’s Demand Side Platform for self-serve PPC campaigns.
The more exposure across Amazon environments, the greater your reach and sales potential.
Maintain outstanding customer service
A critical factor inAmazon marketplace success is providing exceptional customer service:
Monitor feedback and reviews
Check ratings, issues mentioned in negative reviews, and any messages sent via Seller Central.
Respond to messages within 24 hours
Timely communication and quick resolution of problems impresses shoppers.
Issue refunds fairly
Have a clear returns and refund policy listed and honor it promptly.
Follow up on issues
If a customer was disappointed, reach out to discuss how you plan to improve.
Request positive feedback
Graciously ask happy buyers to leave a review of their experience. This helps build social proof.
Providing 5-star service ensures customers become loyal repeat purchasers who recommend you to others.
Conclusion
Launching an Amazon seller account provides access to millions of built-in shoppers in a powerful ecommerce marketplace. But achieving success requires focused effort. You need to strategically set up your account, list competitive products, promote your brand externally, leverage data, and deliver excellent customer service. With the right approach, selling on Amazon can become a rewarding channel to grow your business and profits.
