Marketing Tech

How to Sell on Amazon for Beginners | Updated 2020 Guide

how to sell on amazon for beginners

This is the most up-to-date guide on how to sell on Amazon for beginners. In this post, you will learn everything you need to know about bringing your ecommerce brand over to the Amazon marketplace.

Are you aspiring to sell your own products on Amazon?

Or, do you have a product you want to sell on Amazon but don’t know how it works?

Continue reading to find out:

  • How to sell private label on Amazon
  • The startup costs of selling on Amazon for beginners
  • How to optimize your product listings on Amazon
  • The different ways to deliver your products to your customers
  • How to manage your Amazon business
  • The best Amazon tools to use for beginners
  • Some important reminders when selling on Amazon

Ready to take your Amazon FBA business to the next level? Amazon FBA courses would help!

We compiled the 5 Best Amazon FBA Courses you should look at.

Without further ado, let’s get started.

How to Sell on Amazon for Beginners

If you follow the steps here on how to sell on Amazon for beginners, you are unloading the biggest workload of starting an Amazon business.

If you already have a product, feel free to proceed to step #2.

1. Find Products to Sell on Amazon

First things first — you need to identify what product you are going to sell on Amazon.

There are several ways to find products that you can sell on Amazon FBA.

One, you can head straight to Alibaba.com or Aliexpress.com to find cheap products that you can outsource.

However, it’s going to be a lot of work.

And you need to take extra precaution considering these platforms are now riddled with third-party sellers and scammers.

What you want is to get in touch with real suppliers and manufacturers.

One of the best ways to find products to sell on Amazon is to either do manual research or use a product research tool like Jungle Scout.

I wrote a post on how to search Amazon for up-and-coming products and how to choose the best products to sell on Amazon FBA.

2. Sign Up With Amazon

As soon as you have your product, register yourself as an Amazon seller.

Amazon has two types of seller accounts — individual and professional.

You can think of these seller accounts as a standard and premium.

Choose a Selling Plan

The Amazon individual selling plan costs $0.99 per sale. This is perfect for sellers who are just starting out in Amazon selling and do not have a lot of items to sell yet.

The Amazon professional selling plan costs $39.99 per month. This is suitable for sellers who want to scale their Amazon business and sell thousands of items.

If you are starting to sell more than 40 items a month, the professional plan makes sense.

amazon selling plans - how to sell on amazon for beginners

Submit Amazon Seller Requirements

Amazon requires new sellers to submit or show some documents to get started.

Here are the requirements to sell on Amazon:

  • Bank account number
  • Bank routing number
  • Credit card
  • Government-issued ID
  • Tax details
  • Phone number

Without these requirements, your registration won’t be completed.

Compute Amazon Selling Fees

Selling on Amazon has several other costs apart from the selling plans.

Depending on your selling plan and the type of products you sell on Amazon, you might have to pay the following fees.

1. Selling Fees

Some products have referral and closing fees.

Referral fees can range anywhere between 6% to 51%, depending on the product type.

Closing fees at $1.80 per item apply to media categories only (books, DVDs, video games, consoles, etc.).

Textbook rentals have a rental book service fee of $5.

Learn more about the Amazon selling fee schedule.

2. Shipping Fees

Shipping fees apply to orders you fulfilled yourself.

The rates are based on the product category and shipping service selected by the customer.

Amazon has different shipping rates based either on the item, weight, or price order.

Learn more about how to set your shipping fees on Amazon.

3. FBA Fees

For products that Amazon will fulfill for you (under the Amazon FBA program), some fees you need to consider are order fulfillment, storage, and additional services.

For the fulfillment fees, they may range between $1.97 to $137.32 or more per item, depending on the size and weight.

The fulfillment fees include picking and packing orders, shipping and handling, customer service, and product returns.

The storage fees vary between $0.48 to $2.40 per cubic foot, depending on the volume and the months.

Be sure to check out this page to learn more about the updated category referral fees, fulfillment fees, storage fees, and other costs.

And check out this Amazon cost calculator to estimate your total Amazon selling fees.

3. List Your Products

Once you have your products ready, it’s time to create product listings.

There are two ways to go about this — one, look at an existing listing of a product similar to yours, and two, create a new listing.

Note that individual seller accounts can only upload products one at a time.

Professional seller accounts can do batch uploads using third-party bulk uploading or inventory management tools.

Your products must have a product ID, which Amazon uses to identify your item.

If you can find competitors on Amazon, it’s likely that the product ID is already there and you don’t need to provide it anymore.

But if you have a unique product — a product that has not been listed on Amazon yet — you need to provide a product ID.

Product IDs could be attained by applying for a Global Trade Item Number (GTIN), Universal Product Code (UPC), Internation Standard Book Number (ISBN), European Article Number (EAN), or Amazon’s brand registry.

Create Product Pages

Apart from product IDs, here are the details you need when creating product listings on Amazon:

  • SKU
  • Product title
  • Product description and bullet points
  • Images
  • Relevant search terms

It’s important to optimize your product listings for better conversions.

Your product page should provide all the relevant details your customer needs to know more about the product.

It’s important to use unique product titles and descriptions, especially if you are competing with so many other merchants for the same product.

They also have to be concise, accurate, and easy to comprehend.

Optimize Product Pages

Here are some guidelines to optimize the details of your product listings:

  • Title. Keep it at 200 characters maximum, and capitalize the first letter of every word. It should be factual.
  • Bullet points. Summarize key features and benefits of your products in the shortest and most descriptive way possible. Avoid misleading statements.
  • Images. Use clear images with dimensions 500 x 500 pixels or 1,000 x 1,000. Set products against a white background. Products should occupy at least 80% of the image.
  • Variations. List products that have variations, whether in color, size, scent, etc.
  • Product description. Include keywords that customers use to find your product.
  • Featured offer (“Buy Box”). Add relevant products that your customers might want to add to their cart.

Looking for an Amazon FBA course to help you build a profitable business? Check out the Proven Amazon Course and Amazing Selling Machine.

Read my Proven Amazon Course Review here and Amazing Selling Machine Review here!

4. Deliver Your Product

Once you get for your first customer’s order, it’s time to deliver the product.

You have two options here — do it yourself or have Amazon delivered it to your customer for you.

The first option requires you to manage your own inventory and shipping of orders directly to your customers.

If you are offering a free delivery option, you need to shoulder the shipping service fee for this.

Hassle!

The second option is called Fulfillment by Amazon (FBA).

With Amazon FBA, Amazon will take care of your product, from packaging to labeling to shipping.

Amazon FBA gives you more advantages, such as automatic Prime eligibility and free shipping options.

How to Sell on Amazon FBA

If you are confused about how Amazon FBA works, here’s a simple step-by-step guide:

  1. Send your inventory to Amazon. They will be scanned, managed, and sold for you.
  2. Amazon packs and ships all your customers’ orders directly.
  3. They collect payment from the customer and sends you your revenues twice a month.
  4. They take care of customer questions, returns, and refunds.

Interested in how to sell on Amazon FBA? You might want to read our guide to finding the best products to sell on Amazon FBA.

5. Manage Your Amazon Business

If you are selling on Amazon FBA, all you need to do is supervise and watch your business grow.

Amazon put high standards on products listed on their marketplace, so it strives to keep tabs on some metrics.

And you should too.

Amazon Performance Metrics

Here are some metrics on Amazon Seller Central that you should keep an eye on:

  • Order defect rate

It measures a seller’s customer service standards.

Keep it less than 1%.

  • Pre-fulfillment cancel rate

Cancellations made by the seller before shipment confirmation.

Keep it less than 2.5%.

  • Late shipment rate

Shipments that go past the expected delivery date.

Keep it less than 4%.

Customer Reviews

In addition to these three metrics, you should also watch out for customer reviews.

Bad customer reviews have a negative impact on your product’s profitability.

Advertising

Amazon advertising gives you a new way to approach and engage potential customers.

The platform has three advertising methods, all of which are accessible via Amazon Seller Central.

  • Sponsored products

These are ads for single product listings. They show up on Amazon’s product details and search results pages.

  • Sponsored brands

These are ads displaying your brand as well as your product collection. They appear on search results with your brand logo, your compelling custom headline, and up to three of your products.

  • Amazon Stores

Amazon Stores are custom multipage shopping hubs for individual brands. This is where you can share your brand story and product offers.

Promos and Coupons

If you are looking to incentivize your customers, you can do so by offering discounts, free shipping, and buy one get one free promo.

Best Tools to Use for Selling on Amazon for Beginners

Of course, you need the right tools to help you streamline your ecommerce business.

Here are some of the best tools you should use:

1. Buy Shipping Tool

If you going the Self-Fulfilled Prime program, Amazon’s Buy Shipping services if a must. It enables you to purchase shipping labels at scale as well as deliver, confirm, and track customer orders.

This ensures your products are shipped to your patrons via a reliable network of carriers.

2. Automate Pricing Tool

The Automate Pricing tool is free to use, letting Amazon sellers automatically adjust prices on SKUs in their catalogs.

This is perfect for special events like Buy Box winning price, Black Friday deals, etc.

No need for you to revisit the SKU every single time.

3. CamelCamelCamel

This is a third-party tool that houses a wealth of resources on Amazon FBA sellers.

It contains Amazon FBA guides, news, tips, downloads, add-ons, and more!

It’s perfect for beginners, and it’s free to register.

4. Amazon Seller App

If you are into retail arbitrage, the Amazon Seller app for Android and iOS can scan items and come up with a suggested price for you as an FBA seller.

5. AMZFinder

Customer reviews are critical to your Amazon selling journey.

Having AMZFinder at your side enables you to send automated emails to your customers to ask for reviews.

It’s free to use for the first 500 emails per month, which should be enough for new sellers.

How to Sell on Amazon for Beginners Checklist

Before wrapping this up, I want to give you a few reminders on how to sell on Amazon successfully.

These reminders are in response to the common rookie mistakes of many Amazon sellers.

Make sure to implement these things in your first 90 days.

  1. Always keep your account health in Amazon Seller Central in check.
  2. Enroll your brand in Amazon’s Brand Registry for protection.
  3. Take advantage of the benefits of Amazon FBA.
  4. Create product bundles and offer deals and discounts to your customers.
  5. Avoid using variations of the same products on one product page.

In Conclusion

And that’s it for our guide on how to sell on Amazon for beginners!

I hope we have helped you take off the hardest part of building a brand on Amazon.

Got questions? I’d love to hear them in the comments!

Adam Hendricks
Chief content marketer and funnel hacker at Performance Funnels. With over 10 years of digital marketing experience, Adam enjoys helping people make money online with affiliate marketing and sales funnels.
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