A woman closes a box she was packing. In the background are more boxes, a whiteboard, and a rack of clothing.
Amazon has two main choices for shipping, so you have options on how to get your products to your customers. — Getty Images/BartekSzewczyk

Amazon makes it easy for new sellers to set up their business and start selling products. Here are six steps to getting started as an Amazon seller.

[Read more: How to Start Your Own Amazon Package Delivery Business]

Set up your Amazon seller account

To get started, you’ll need to sign up for your Amazon seller account. After you sign up, Amazon will prompt you to enter the following information:

  • Name.
  • Business location and entity.
  • Address.
  • Billing information.
  • Proof of identity.

From there, you’ll have to decide whether you want to register for an individual or professional plan. This depends on how many items you plan to sell each month.

If you plan to sell fewer than 40 items per month, you’ll probably want to choose the individual plan. The professional plan is ideal for anyone who knows they’ll sell more than that on a monthly basis.

Decide what products you’re going to sell

A big part of your success on Amazon will come down to whether or not you chose profitable products to sell. For a product to be profitable, there must be a demand for it in the marketplace.

To identify profitable products, it can help to see what is already selling well on Amazon. Look for products that are lightweight and easy-to-ship and have at least a 50% profit margin.

It’s a good idea to avoid items that are fragile and require a lot of care to ship. And you should avoid selling trademarked items or choosing items from Amazon’s restricted list.

Do market research

Once you’ve identified the types of products you want to sell, make sure you spend some time on market research. Keep track of your competitors and their sales over a period of time. This will give you a more realistic picture of that market and the approach you should take.

It’s also a good idea to talk to potential customers and get their feedback on the products you’re looking to sell. This market research will help you validate your business idea and figure out your next steps.

A big part of your success on Amazon will come down to whether or not you chose profitable products to sell.

Create your Amazon listings

Before you can start selling on Amazon, you need to create product listings. If someone else is selling the same product, you can match their existing listing. Otherwise, you can create a brand-new listing.

To create a product listing, you’ll need to have a Global Trade Item Number (GTIN). This is a product ID that helps the company determine exactly what it is you’re selling. If the product you’re selling is unfamiliar to Amazon, you may need to request an exemption.

To get started, you’ll choose the product category. If you’re trying to sell items from a restricted category, you’ll have to wait until you receive approval from Amazon.

Finally, be sure to include photos of your products. This is especially important if you’re trying to sell a competitive product. Keep in mind that photography doesn’t have to be expensive—you can take the photos on your own.

Set up your shipping plan

The final step to getting started as an Amazon seller is to set up your shipping plan. When it comes to shipping, you have two options: You can do it yourself or let Amazon fulfill shipping for you.

If you choose to handle shipping yourself, you’ll store and ship the products directly to your customers. You also have the option of Fulfillment by Amazon, which is the easier method.

Amazon has more than 175 fulfillment centers, and sellers receive access to that storage space. If you choose to go this route, you’ll ship the items to Amazon. Then every time a sale goes through, Amazon will ship those products directly to the customer.

Stay on top of customer reviews

Customer reviews are everything for Amazon sellers. Potential buyers take these reviews seriously, so having a lot of positive reviews will add credibility to your business.

Followup with each of your customers to find out what their shopping experience was like and encourage them to leave a review. This will be the best way to increase your sales and to continue to grow your business over time.

[Read more: How to Use Amazon to Grow Your Business]

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Published October 28, 2020