How to Start Your Online Business

A Step by Step Guide

How To Start An Amazon Store – What You Need To Know

There are 2 ways to be involved with Amazon online. You can be an affiliate for Amazon or you can have your own sellers account. Both involve work, time and determination. But if you want to have your own sellers account or store with Amazon, you’ll need money and wholesale suppliers.

This post is going to be about starting your own sellers account with Amazon. If you want to have an affiliate account with Amazon, you can find that information here.

There are 2 kinds of sellers accounts you can have with Amazon. A personal account or a professional sellers account. The personal  account is free to create and the professional account cost $39.99 a month.

You could open a Personal account at no cost to you, and you could sell new and used products you have collected and have in your home, or buy products wholesale to sell.

Just to explain what a sellers account is with Amazon, when you search for a product in the Amazon search bar, it will bring up that item. Under the description or sometimes off to the right, it says “other sellers” or “other offers”. Those are other sellers of the product that have sellers accounts.

The most important part of becoming a seller on Amazon is to be able to buy the product cheap enough to consume the shipping cost and Amazon selling fee’s you will have to pay.

For example, an item selling on Amazon for $18.00, and is offered as a prime product, it cannot cost you more than 1/3 of that price, or very close to it. So if you pay $6.00 for that item wholesale, you have to tag it, box it and send it to Amazon for sale.

Once at Amazon, you will be charged a listing fee of approximately $2.00 and a shipping fee of about $4-5.00, depending on the size and weight.

Lets say you bought this item in bulk, and had it shipped to you, at a landed cost of $6.00, now you have to tag it, (small cost), box it up to ship and ship it to Amazon. This might make your landed cost to Amazon $7.00.

Now you have the listing fee, (a charge Amazon has for having it listed on their site), and once it sells, the shipping charges. So this product sells for $18.00 and cost you $14.00, so you make $4.00 on the sale. This does not include any PPC advertising of the product. We’ll get to that later.

There are a few wholesalers that deal with Amazon and will tag your items and ship them to the Amazon fulfillment center for you, but that will cost you. Mostly, Amazon sellers have the product shipped to them, tag it with the Amazon ACIN# (more on that later), box it up and ship it.

So, is it worth it? Yes. If you research the products you want to sell, have a good wholesale supplier and can sell quantities of your product, You can do very well. Just think of the millions of shoppers on Amazon at any given time. To sell 10-30+ items every day is not uncommon. 10 items each day with a $4.00 profit is $1,200.00 a month profit.

Now I don’t want to miss-lead you, to get your products seen by the Amazon shoppers, you will have to do some PPC advertising. This is another cost you will have that takes another bite out of your profits. But there are other ways to get your products seen that we will discuss later.

Before you sign up with Amazon for either account, you’ll need to have some information available. A good credit card and your bank account number is the most important.

If your going to create a professional sellers account, you have to create a business name, open a business checking account and should have a business credit card. Just for liabilities sake, your business should be an LLC or a corporation.

At the bottom of any search page of Amazon is this listing. The one you want to click on to create a sellers account is the “Sell on Amazon”. The second box is to become an affiliate.

The first thing you will have to choose is weather you want a personal account or a professional account. Then you will be taken through all the forms to fill out. A personal account has its limitations, and most people that start with a personal account are not ones buying in bulk from wholesalers.

I also recommend you have an email just for your business and use that email account when you sign up. You can always change it, but its best to start off with the account where you want all your business emails to be sent.

Once you sign up, you will use your submitted email and password to sign into your sellers account and have a dashboard as the image below shows.

This is the very top of the page and for good reasons I have blotted out my figures. But you can see there are 8 drop down menu’s along the top each with multiple menu’s. This is where you will manage your account, the pricing, advertising, your inventory, all your reports and keep tabs on your performance.

There is an Amazon university where there are training video’s for anything you need to know as well as weekly live training that you can sign up to.

Lets say you find a product you want to sell, you have found a good supplier at a good cost, bought them and had it shipped to you and now you want to add it into your sellers account.

When you want to add a product to sell that is already listed on Amazon, under the Inventory tab, there is “add a Product”. You need to have the “ACIN” number which is an Amazon bar code type number. But its the number that Amazon uses and one that you need to put on all your products before sending them to Amazon.

Note: The ACIN# that you tag your products with before sending them to Amazon, has to cover the entire UPC#. They will remind you of this as you ready your products to ship.

The ACIN number can be found for each product if you scroll down on the page of the product under “Details”. You simply copy and paste that number when you want to add a product. It will bring up the listing and there will be a button that asks, “sell yours?”.

That will take you to a form where you just have to add how many your sending them, your listing price and the condition. This is the easiest way to sell products because all the details are already in place, your just adding yours to the list of sellers.

Just a note here, there are some products that are considered collectables. Most collectables are restricted to sell.

While on that subject, there are restricted items and/or categories for most sellers. You can have it un-restricted , but there are some forms to submit as well as some conditions to be met. But don’t worry about that because there are about 480 million SKU’s on Amazon.

You can also add a product to sell that is not on Amazon at all as well as add private label products. This takes a little more work, you need more information and in the case of private label, you’ll have to buy some bar codes.

But we’re getting ahead of ourselves here and there is plenty of training on the Amazon university to guide you through that process.

But I will say this about private label, Its the best way to make some good money with Amazon. You’ll have no competition so you won’t have to worry about price wars with other sellers.

Working with Amazon sellers central is very easy and there is so much help available in the form of training video’s that I don’t want to waste a lot of your time going over it. Also, the sellers central support is very good. You can chat, email or have them call you.

Amazon, just like google and other search engines have their own PPC advertising. This is something that can be done in 2 ways. You can use the automatic PPC or manual.

With the manual way, you can add your own keywords or phrases that you want to target. You also set your own bid amount, what your willing to pay for that word or phrase.

With the automatic PPC, you choose the products you want to advertise and can set a maximum bid amount. You do not get to choose your own keywords, its automatically done.

Having a website that you can post to google+, Facebook, twitter and more is a great way to get your products exposure. Posting to your friends and followers through tags can get you started with traffic.

Now this is one instance that I think the offer at Wealthy Affiliate works well. You can sign up for free, get 2 free websites and also have free hosting. You’ll also get some free training with the basic’s of building a website.

You don’t need a large website for this at all. A page for similar items your selling with some details and a link connecting it to your product on Amazon works well.

With this free offer, there is absolutely no cost to you and if you use the free training, you’ll be able to have a great looking page(s) and promote your site on social media for free.

Below is the free sign up offer if your interested.

So to recap, the most important part of selling on Amazon through your sellers account is, Have wholesalers to buy from, research your products so your not selling something that has a lot of competition, price your products competitively and control your advertising.

I hope you found this informative and if you have any questions,
leave me a comment and I will get back to you asap.
Thanks,   Doug

 

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