E-Commerce has never been bigger than it is right now. It was steadily rising in the years leading up to 2020 and the Covid-19 pandemic, and shopping online got exponentially more popular once people were forced to stay home to lessen the spread. You have probably heard the stories about how websites like Amazon provide unprecedented selection and convenience for shoppers around the world. What is often not talked about enough is the opportunities these e-tail sites have provided to sellers.
There are over 3 million people and businesses that sell with Amazon. They all have access to a worldwide market, instead of just the local one based on their geographic location. There are plumbing parts suppliers in the United States shipping to the UK, and vice versa. Because of the access to such huge markets, many sellers are making more money than they ever have before. You can get in on this booming industry by opening your own Amazon store. However, before you do, make sure that you are prepared so that your business is set up for success. Here is what you need to know about selling products on Amazon.
Choosing Your Selling Plan
When you register with Amazon to be a seller, you will automatically be placed in the “individual” selling plan. This plan is for those who are only going to sell a few items per month or less. It provides you with access to basic selling tools. It costs $0.99 for every item that you sell.
If you want to sell more, then the professional plan is probably worth it to you. On top of the $0.99, you will have to pay $39.99 monthly to access this plan. This plan provides you with selling tools, but also you can access reports and analytics, use 3rd party selling tools, and get your products placed in otherwise restricted selling categories.
The Buy Box
The buy box may be more important than you realize. What is the buy box? It is the yellow box that a shopper clicks on to add something to their shopping cart and start the purchasing process. However, it is more than a simple button to click. Many shoppers don’t realize it, but when they search for a product, they are presented with a generic page that all sellers of that product share. Only one of them is awarded the buy box. This means that if a shopper views a product and clicks on “add to cart,” it will automatically start a purchase for that featured seller.
Sellers “win” the opportunity to be connected to the buy box through their history. Amazon looks at the sellers they think will provide the best services to customers and then awards them with boy boxes. To get this for your online store, you will have to offer competitive prices, good shipping timeframes, quality service, and good customer ratings. It can be difficult, but it can supercharge your earning potential if you are successful.
You Still Need Insurance
You may think that if you are working from home, you don’t need insurance. That is untrue. There are several reasons why you might need coverage, from damage to your inventory to shipping loss to protection from lawsuits. Plus, if you have over $10,000 in gross sales, Amazon requires you to have liability insurance to continue selling. You can get Amazon sellers insurance easily online with several options to help choose the coverage that is right for you. Don’t make the mistake of thinking you can save money by not having proper business insurance.
List Your Products Properly
Amazon has specific requirements for listing your items, and if you don’t follow them you could find your items being delisted or pushed down to the bottom of search rankings. When you create your listings, you must consider these requirements and make sure that you provide details and information that will help you get listed higher. Your Amazon store can use search engine optimization (SEO) in the same way a website would.
You need to make sure you have as many details as possible so your products are shown in as many searches as possible. Your product title shouldn’t just include the type of product, but size and color details. Use bullet points in your description to capture everything about your product customer