How To Make Money On Amazon (How To Sell On Amazon)

by Kahlia Meeuwsen, Money Columnist

Published in Money and Finance on 10th December, 2019

Selling online is a convenient way to get your products out into the world without having to worry about paying rent in a commercial space or begging to get your items into physical stores.

On top of that, it offers so much convenience to customers as well, which is why it has become such a popular way to get just about anything.


Amazon is at the forefront of the online selling movement, offering nearly anything you may need in one easy place. They also generate simple ways to get your products delivered quickly, whether it's a gift for a family member or your own weekly groceries.

What Is Amazon?

Amazon brings all the magic of buying or selling on the internet to one place. The site sells a massive variety of products in a huge number of different categories all the way from shoes to electronics and car parts. Additionally, products tend to be new or clearly marked otherwise so you always know what you're getting into.

If you're familiar with Ebay, then you can compare Amazon to that. However, Amazon does appear to be a bit more regulated, making it easier to find new products that are local to your area. Furthermore, there is no bidding on Amazon, only outright purchases.

All of this tends to mean that those who sell on Amazon are more professional in nature. On Ebay, just about anyone can decide to sell, which makes it a great way to get rid of things you no longer need and make some money.

Amazon, on the other hand, tends to often be used by stores and professional sellers trying to make a living.

Naturally, there are exceptions to both sites. What's important to note is that the selling experience on Amazon is likely to be different from the more casual selling sites. However, you can get quite a bit in return when you treat the processes and rules with respect.

Why Should You Sell On Amazon?

Amazon makes selling easy, thanks to the ability to have the company handle shipping and packaging. They also make it simple for customers to make purchases and get them quickly.

sell on amazon

Because there's a great deal of ease on both sides of the spectrum, you really can't go wrong! As long as you're following the rules and selling quality products, Amazon can really only be a benefit.

How To Sell On Amazon

The concept of selling on Amazon might seem more difficult than it actually is. Just follow these guidelines step by step and you'll be on your way to making some extra money or building a selling career. Just remember to be patient and flexible. The needs of customers are ever-changing and can often be hard to predict.

Pick Your Products

There are a few things to keep in mind when it comes to selecting your products. The first is that they should be products you have a decent comfort level with. The more you know about the products, the easier it will be to discuss the benefits they offer with potential customers.

Additionally, it's best to aim for products that a lot of people want. As you consider that aspect, also look for products that won't leave you with a lot of competition. The more you have to compete to even get a sale, the harder it will be to get those sales to build up.

products amazon

It's also a wise choice to pick items that won't ride a short trend. For example, don't reach for whatever is cool in the moment, but might not be in a few months time. Items like fidget spinners may fit into this category. Once the trend has ended, you can wind up with no more sales.

You're also going to need to be resourceful about how you get your products. It's important to have enough of them that you won't sell out too quickly. Wherever you're getting those products from, it should be one that is fully reliable and able to provide quality products.

Decide On Prices

When it comes to your prices, the goal is to end up with an amount that customers will feel okay spending. You also want to make sure that amount is still going to provide you some profit. Otherwise, what's the point of selling at all?

As you research similar items already on the market, take into account the prices they are being sold at. Then, compare that with the amount you know you'll have to pay to get that product. This can give you a good idea of what your profit might look like before you even get started.

Once your profit is figured out, think about how many sales you'll need to make for that product to pay itself off or earn you money beyond that point. You want this to line up with your goals as closely as possible, whether that's some nice spending money or a full time income.

Another point to consider is the value customers are getting for their money. Often, they don't mind paying more if they are getting solid products that they know they'll be able to rely on for the long term. If they feel they are getting enough for their money, you'll have happy customers.

Take A Look At Seller Plans

While you're in the process of creating your account, you'll need to choose the kind of account you want to use. There are two options available for you to pick from. In looking over these options, you'll find that they are made to fit those selling under different circumstances.

The first is the individual plan. This plan is designed for those who are just looking to sell a few things here and there. If you know the number of items you want to sell on a monthly basis is lower than 40, this is the plan you'll want.

It's also worth knowing that there is no subscription fee for this choice. Instead, there is a $0.99 fee that is applied to each item that you sell.

At the other end of the spectrum is the professional plan. This is for those who will be selling more than 40 items on a monthly basis. While this plan does offer a subscription, priced at $39.99, there are benefits to the stable monthly cost. It means that instead of that $0.99 fee for each product, you just pay the subscription cost.

This ends up saving professionals money, because when you sell more than 40 items in a month, the $0.99 fee would end up being higher than the subscription fee.

For example, if you sell 100 items with a professional account, the fees paid to Amazon only amount to $39.99 rather than the individual item fees, which would reach nearly $100.00 for the month.

That said, keep in mind that other fees can be involved in the selling process. Things like closing fees and referral fees will take place regardless of the plan you have. This is worth being aware of as you decide how much profit you'll actually get in the end.

Make Your Seller Account

After deciding what you want to sell and how many sales you plan to make, you can start putting together you seller account. To do this, you'll just need to follow a step-by-step process that requires you to fill in basic information like you email, address and whatever is required for you to get paid.

amazon sell profile

You may also need to create a seller bio. If that's the case, it's wise to make that bio as professional as possible. Customers will want to know that you take what you do seriously. However, they'll also want to know they're purchasing from another human being, so don't be too robotic!

Add Products To Sell

Depending on the account plan you chose to go with, you may either be able to add your products in bulk form or complete them one at a time. This just makes things easier for both options, as professional accounts won't need to add 40+ products separately, and individual sellers can have more control over each product.

You may also find that some products are easy to locate, while others need to have all of their information added to the system. This can really just give you an idea about whether or not anyone else is selling the same item as you.

If you find that you're starting from scratch, enter information carefully and make sure any pictures you add are high quality and show your product in the best light.

Selling Items

Once you have everything set up for your products, selling is largely an automated process. Customers will see the products you have available, and will simply follow the Amazon indicators to make the purchase. You can then be alerted to the fact that a purchase was made.

selling items on amazon

Amazon will keep track of the payment, and will ensure that the funds are delivered to your bank account. Just remember that there are fees that may come out of that payment before the rest is sent to you. When money is sent to your bank, you'll get an e-mail to let you know that the transaction took place.

Choosing Your Shipping Method

One of the great aspects about Amazon is that sellers don't always have to ship the products they sell. If you allow them to, Amazon can go ahead and ship out your product from one of their warehouses. This can help to save you time and money, and it helps to ensure things get delivered on time.

If you have a strong preference for having full control over the packaging, shipping, and customer service for your products, then you can opt out of using Amazon's fulfillment services. It might be more work for you, but it's a choice that is completely yours to make.

Otherwise, you can choose to get your products to an Amazon warehouse. In major areas, this can just mean driving your goods there to drop off. In other cases, it might include shipping the products to the warehouse. This is a factor that can often play into making the decision, as you end up shipping items either way.

However, using those fulfillment services means that you can have more free time. Packing and shipping will be taken care of by Amazon employees. This also includes customer service that is related to the shipping process, such as handling situations where products don't arrive on time.

Once you ship a product, it's often out of your hands in any case. Being able to rely on Amazon to address issues that may show up during shipping is just another great way to make the system work more smoothly. Instead, your focus can remain on the quality of the products themselves.

Developing Great Customer Service

This is what will keep your customers coming back for more. If they know they are going to get excellent service, prices will matter less. It can also mean they'll be a little more lenient about problems that can occur with the products themselves, because they know you'll handle the situation appropriately.

great customer service

What many may not realize is that customer service is part of the value discussed earlier in this article. Customers want to know that they are going to be taken care of. If someone purchases a waffle iron from you, they want to know you'll help them out if it isn't working correctly.

In short, customers want to know that you care. On both ends of the purchase, there are human beings. Making the connection between the two can take some extra time and effort, but it's going to ensure that your name comes to mind when customers need something they know you sell.

It also means they are going to be more likely to share your name with others when they want to recommend products. Although word of mouth isn't one of the more obvious means of advertisement, it's one that new customers are more likely to rely on than some ad they saw online.

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