Things to know before selling on amazon
E-commerce websites are extremely useful when you are looking at a massive amount of audience, it enables you to sell across the borders without physically crossing them. When we sign up in Amazon, it enables us to sell on Canadian, U.S., and Mexican marketplaces, it's easy to build a brand recognition with the variety of selling plans and other features of Amazon. Its results are easy and fast selling, therefore, before taking a plunge into the world of online selling there are certain things you need to know:
Fees and charges
What does it take to sell on Amazon? not an entire fortune but definitely Amazon gets the larger end of the stick, depending upon the category of the items sold there are different types of fees that typically include:
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Per-item fees
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Shipping Fees (Fulfilling Orders)
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Referral Fees
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Variable Closing Fees
You will see such terms when it comes to paying to Amazon, depending upon categories, product type and shipping service selected by the buyer. A more detailed view will be available on Amazon site which is highly recommended to be viewed before you start selling.
The difference between Professional and Individual seller
there are these two categories you'll be divided into depending on your preference:
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Individual
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Professional
A Professional seller is required to pay a monthly subscription fee of $39.99, whereas an individual seller doesn't need to pay that. The latter is expected to pay Per Sale Closing Fee, in addition to stated selling fee.
Who gains the most in Amazon selling
Sellers who produce their own unique products, the ones who sell used or refurbished items tend to gain as there are a lot of buyers out there who concentrate on getting the cheapest in a market because of use and throw tendency nowadays. Investing large sums on items which will ultimately be replaced doesn't seem like a wise decision to a lot of buyers. Another types of products resulting in high gains are the ones that target a specific market, these niche products can be very profitable, which is the beauty of this concept.
What is Fulfillment by Amazon
FBA products gain access to millions of customers from different countries, FBA is linked to Amazon selling account and offers a flexible pay per use and minimum inventory requirements are null. In FBA you can send your item to one of the many Amazon fulfillment centers to be stocked. Making it an easy setup where the customer buys a product from you and Amazon ships them.
Amazon Policies and Agreement
It is important for you to know what you are getting into before starting. Amazon provides participation agreement. All sellers are expected to follow the policies while listing products on Amazon. Seller offenses and prohibited content are violations and can result in suspension of your Amazon account. Therefore it is suggested that all the policies and agreements are read and understood by the seller.
Like any other marketplace, Amazon has set of rules to adhere to in order to ensure a safe selling experience, being informed is the first step and the rest follows.
