As Amazon USA grows in popularity, so do the opportunities to start an e-commerce business by selling on the platform. In 2020, consumers shifted from in-store to online shopping, resulting in a massive increase in e-commerce. As the year progressed, 34% of customers reported that their online spending increased while their total spending decreased. By the end of 2020, 74 percent of customers planned to do the majority of their shopping online, up from 69 percent only a few months earlier.
According to these trends, e-commerce firms will have a plethora of chances in 2021. To take advantage of Amazon’s huge possibility, though, you must first complete the Amazon seller registration process.
We will walk you through the updated process to guarantee that your account is confirmed (and that you have an opportunity to develop a successful Amazon company).
This is what we’ll discuss:
What is the most effective approach to establish an Amazon business?
How to Create an Amazon Seller Account
What is the cost of selling on Amazon?
What else should you be aware of before you sell on Amazon?
The most effective approach to establish an Amazon business
The wonderful thing about Amazon is that there is no one-size-fits-all method to starting an AmazonUSA business. There are various methods to succeed on the platform, ranging from the business plan you choose to the products you sell. The steps for getting up and running on Amazon are the same regardless of the type of business model and the product you choose.
1. To begin, determine which business model you want to use.
The practice of rebranding/renaming a product that is already manufactured under a retailer’s own brand or label is known as private labeling.
Wholesaling is the practice of purchasing low-cost or discounted products in bulk and reselling them as individual pieces in a retail marketplace.
Arbitrage (online and/or retail) is the practice of discovering low-cost or discounted products at physical retail businesses (or on e-commerce sites) and reselling them online.
Dropshipping is a business technique in which an Amazon seller does not keep their own product inventory and instead delivers orders directly to the manufacturer or supplier.
Handmade sellers on Amazon USA are individuals who create their own goods to sell on the Amazon marketplace (“by hand”). Examples include jewelry, accessories, home décor, and other products.
2. Once you’ve settled on a business plan, you must select a method of fulfillment.
- Fulfillment by Amazon (FBA) is a service provided by Amazon.
- Alternatively, merchant fulfillment is a service offered by merchants (FBM).
Both techniques have pros and downsides, so weigh them carefully to determine which one is best for your business.
3. Think about the product(s) you’ll be selling next.
If you have a product (say, you manufacture your own handcrafted items), you may be ready to launch, but you must still go through this step to guarantee that your product will have adequate demand on Amazon. Utilize a tool like Jungle Scout to assist you in identifying goods to sell that are in high demand yet have minimal competition.
4. Once you’ve found a product you like, apply to become an Amazon seller.
In the next section, we’ll go through how to complete the Amazon seller registration process.
5. Begin sourcing your goods once Amazon has confirmed your details and accepted your application.
If you’ve decided to sell private labels, you may find a manufacturer using Jungle Scout’s Supplier Database or Alibaba.
6. Finally, create your product listing.
And after your listing is complete, you can begin growing your Amazon sales!
How to Create an Amazon Seller Account
Once you’ve selected what you’re going to sell on Amazon, you’ll need to go through the Amazon seller registration process, which is rather simple.
- Navigate to https://services.amazon.com/.
- Scroll down to the bottom of the page and search for the heading “Become an Amazon seller.”
On the right side, look for the ‘See Pricing -‘ link (below the ‘Make Money’ heading) and click it.
Please keep in mind that if you click the orange ‘Sign up’ button, you will be sent directly to the professional seller registration page. The ‘See pricing’ option, on the other hand, explains the distinctions between individual and professional accounts and allows you to choose which one you want.
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Choose between a personal seller account and a professional seller account.
When it comes to Amazon’s seller plans, you have two options: professional or individual.
Being a “professional” is the way to go if you want to sell more than 40 items every month. Even if you’re selling as a hobby and don’t consider yourself a professional, this method will save you money.
If you wish to sell on a smaller scale, go with the individual plan (i.e. fewer than 40 items per month).
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Fill in your email address and click the ‘Create a New Account option.
After you’ve chosen the best selling plan for you, you’ll be asked to provide your email address and a password (of your choosing) for your seller account.
When you’re finished, click the ‘Next button.
This will take you to a second screen where you will be prompted to enter a one-time password (OTP) that Amazon will generate and send to the email address you provided on the first screen. This is the Amazon USA method of verifying the email address you supplied.
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Choose your company’s “location” and “industry.”
As the next stage in the Amazon seller registration procedure, the following information must be shared:
The address of your firm is: This is the country in which your company is headquartered. Because Amazon will double-check it, it’s important that this be right (see step 10).
The nature of your business is as follows: You will be able to choose your business entity from the following options (the majority of which fall under the category of “Privately-owned”):
Enterprise controlled by the government
A government-owned corporation and a privately held corporation
Charity
I am a one-of-a-kind person.
6. Please provide your personal information.
After that, you’ll be asked to provide Amazon with a range of personal details. A form of identification is necessary (either your passport number or your driver’s license number).
It is conceivable that you may also be asked for your phone number. Again, this is for verification purposes.
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Choose your market
Once you’ve completed the ‘Individual Information’ part, check the box beneath the marketplace(s) — this refers to the location of an Amazon store (e.g., Amazon.ca, Amazon.co.uk, etc.) — in which you’d want to sell, and then click ‘next.’
Fill out the billing information.
Amazon now verifies a potential seller’s identification by verifying their credit card information.
After you’ve chosen your marketplace(s), you’ll be asked to enter the credit card number and expiration date, as well as the name that appears on the card.
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9. Insert information about your product(s) and Amazon shop into the blanks.
Following the confirmation of your credit card information, you’ll be prompted to answer a few questions about your Amazon store and the products you wish to sell.
To advance to the next level of the Amazon seller registration procedure, you must answer the following questions:
The name of your Amazon store.
Whether or not your product has a universal product code (UPC) (s)
If you produce and/or brand the product(s) you’re selling,
If your product is registered as a trademark (s)
10. Address verification
Finally, after completing all of the preceding steps in the verification process, you will be requested to confirm the business address you supplied in step six (the personal Information’ page).
If the address provided is correct, a new screen will appear after clicking the ‘Confirm’ button. It says you’ll get a postcard with a verification code at that address.
When you get the card, input the code in the “Enter code below” area and click “Next” to finish the verification process.
The best cost of selling on Amazon?
What’s great about selling on Amazon is that you don’t need any money to get started.
However, if you wish to use the private label business model, there are costs connected with acquiring inventory before selling it (at a higher price). However, it may not be as expensive as you believe.
In fact, according to a Jungle Scout survey of over 1,000 Amazon sellers, 17% launched their companies with less than $500, despite a $3,836 average claim cost.
Furthermore, regardless of the fulfillment method you select, there will be fees associated with your seller account.
What are Amazon’s fees and charges?
Here are some of the Amazon fees you may be required to pay:
Amazon referral fees are fees charged by Amazon for selling on their marketplace. It varies by category, but it generally ranges between 12 and 40%. The majority of goods have a 15% referral fee.
Individual seller fee: In addition to the referral money, you will be charged $0.99 for each transaction you make. However, sellers are only required to pay this per-item fee if they have chosen an individual seller account over a professional plan.
FBA costs: If you use Amazon’s FBA program, you must pay Amazon’s shipping and handling fees. This is usually approximately $3.00 for little items weighing less than a pound. The costs rise as the items get heavier or larger.
Other Amazon fees are conceivable, including long-term inventory storage fees (if you use Amazon FBA), media fees (if you sell books, DVDs, or other media), and advertising expenditures.
