It seems like every year, the Amazon market is expanding. Just a couple of years ago, the number of sellers on Amazon surpassed 2 million. As third-party sellers make up nearly half of Amazon’s sales base, you could make a lot of money choosing to become an Amazon seller.
Whether you’re currently working in sales or you’ve got a great new product that you want to start getting into customer’s hands, selling on Amazon is important. As Amazon has taken over a huge chunk of the retail market, it leaves room for individual third-party sellers to start getting involved.
Whether or not your store is up and running yet, you need to avoid the pitfalls common to new sellers. Here are 6 ways to make sure that your Amazon store is successful from day one.
1. Start Off With $500 for Inventory
Every business should start off with an initial investment. For a typical restaurant or store, you’ll need to start off with $10,000 or more. Thankfully, your overhead will be much less when you start an Amazon FBA account.
Having $500 more will allow you to buy an ample amount of inventory to send in at the start if necessary.
If you can help it, don’t spend it all at once. Try to spread it out over your first month or longer. Find great clearance items and great deals and then start gathering everything together.
Once you’ve got about 40-50 items, then you should consider sending everything in. With shipping fees and packaging, it’s going to be more cost-effective in the long run to send in more of your items all at once.
Starting off with just a few items means you could hit bottom quickly.
2. Apply for a Professional Amazon FBA Account
For anyone looking to make their Amazon business a serious part of their income, signing up for a professional seller account is a necessity. It might be good to start out with a free account so you can get a feel for how much volume you’re selling.
If you start to sell 40-50 items a month, then a professional account starts to make more sense. While the professional account will cost you $39.99 a month, your free account will require you to pay $1 per item.
Switching over your account could be a bit of a headache. If you’re sure that you’re going to be hitting the ground with high volume after you become an Amazon seller, you should consider starting with a professional account.
3. Research and Take a Course
While you might think you know everything there is to know about selling, Amazon is a different animal than any other type of sales. You won’t be able to apply a lot of traditional sales tactics to your Amazon seller account so you’d be advised to learn from other people who have experience.
Check out some affiliate stores that sell the kinds of things you want to sell to get an idea of how it can be done.
There are people out there who are making $100,000 a year who are willing to share their knowledge for free. Take a listen to what they have to say when you become an Amazon seller. Look for free courses that last a few days or weeks so that you aren’t trying to learn everything in one sitting.
Search for digital sales boot camps that are Amazon-specific. Online courses can save you the hours of going through blogs and watching YouTube tutorials. While it can be a good experience to watch videos, having access to a teacher or mentor is invaluable.
4. Look for Cashback Programs
There will be a lot of inventory flowing in and out of your account over time. You’ll be doing a lot of purchasing in advance, so you might as well make something out of it.
Finding a credit card with some great rewards, cashback or mileage benefits could allow you to make a little extra while purchasing your inventory. Set up automatic payments from your deposit account with Amazon and you’ll keep your balance low while piling up rewards.
There are other cashback programs from companies like Ebates and TopCashBack that could add up to some extra coinage. Once you’re buying inventory online on a regular basis, this could mean that you’re saving a little something on every purchase.
5. Stock Up on Shipping Supplies
You’re going to need plenty of things to keep your shipments moving out the door. You’ll need mailing envelopes, packing tape, labels, and printer ink to even get started. See if there are any bulk deals online or from any of the shops in your area.
Purchase when you see prices drop so that you can save a little extra.
During the back to school season, you’ll see deals from just about every retailer. Check online for coupons from big box stores and for buy one/get one deals for things like printer ink.
If you know people who are getting lots of cardboard boxes shipped or who’ve just moved, ask for their extra boxes. It’s silly to pay for cardboard boxes when so many get thrown out daily.
If you can have your neighbors save them for you, you’ll save some extra money. Ask around at your office if you see your coworkers jumping windows over to Amazon throughout the day.
6. Get a Barcode Scanner
When you become an Amazon seller, one of the cheapest time savers around could be a barcode scanner that plugs into your computer. You’ll be spending around $20 and saving lots of frustration from reading the little numbers under every barcode.
You could always sit around and enter every item manually, but if you’re getting serious with your selling, it doesn’t make sense. Save yourself headaches with a barcode scanner.
Better yet, see if you can get one for your phone.
Become An Amazon Seller Today
If you’ve been thinking about becoming an Amazon seller for a while, it’s time to get over your hesitation and jump in. It can be a fun way to make some extra money and if you get good at it, it can add up to serious income.
If you’re still wondering what else you might need to do before you start selling, contact us for more tips to get your sales through the roof.