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SELLING ON AMAZON: 2 SOLUTIONS TO OPEN YOUR SHOP

Selling on amazon yes or no? Some entrepreneurs wonder if it is worthwhile to create their shop or not. Let’s find out the advantages of the insurance marketplace together.

Sell ​​in a few simple steps. This is the promise of Amazon that for years has been helping to connect companies and buyers in every part of the globe.

The regulars of the platform, according to an analysis by Repricer Express, are the millennial. Although with the pandemic digitization even those who were fasting online purchases got used to frequenting the site, helping to increase traffic.

From a business point of view, we can understand that many people use Amazon every day, also driven by the persuasive lever of Amazon Prime, which drastically reduces the buying friction in consumers.

In addition to consumers, Amazon has conquered global businesses of various kinds, so much so that ” two out of five sellers say their business has done better than expected despite the COVID-19 pandemic .” 

The topic of this post

  • 1 Why sell on Amazon
  • 2 Is it worth opening e-commerce and selling on Amazon?
  • 3 Start selling on Amazon
  • 4 E-commerce on Amazon: types and costs
  • 5 Selling on Amazon: Basic Account Benefits
  • 6 Selling on Amazon: Pro Account Benefits
  • 7 Expand your Amazon business
  • 8 Conclusion

Why sell on Amazon

Last year 25,000 small and medium-sized businesses made more than 1 million euros in terms of sales on Amazon.

Amazon

Opening e-commerce on Amazon can be an interesting investment, both in terms of the notoriety of the brand. A Brand is an identification symbol, trademark, logo, name, word, and/or phrase that companies use to distinguish their product from others. A combination …than conversions. On a psychological level, the American giant has become synonymous with barrier-free online shopping.

Amazon allows you to sell on different European marketplaces – such as the German, French, and Spanish sites – giving micro companies a further chance to expand on an international scale.

What does opening e-commerce on Amazon entail?

Building e-commerce on Amazon also entails several benefits such as:

  • Expanding your business;
  • Reaching new customers;
  • Sales on European soil -> showcase on the various national shops ;
  • Simplified fulfillment and Amazon Prime eligibility.

Is it better to open e-commerce and sell on Amazon?

Although one of Amazon’s pride is that it has sold more than 12 million products  – thanks to the different marketplaces -, opening e-commerce could have limits.

Since Amazon is not a proprietary platform – unlike a site on WordPress or Magento –, the first disadvantage for the company is the loss of data: demographics of the target refers to a group of potential customers to whom a company wants to sell its products or services. The Target is consequently also …, email, tracking on Analytics. Analytics or web analytics is the measurement, collection, analysis, and reporting of web data for understanding and optimizing the use of the web. When…, Pixel tracking, etc.

In addition to data limitations, opening profitable e-commerce on the Marketplace involves considerable costs – in terms of subscriptionsfees, and advertising. Advertising (abbreviated ADV) means advertising, it is a paid message that a company sends intending to inform or influence the people who receive it…

Limitations and costs of sale:

  • Failure to access emails from paying customers ;
  • Wait 14 days to receive payments ;
  • Maximum sales cap – for those who choose the basic account;
  • Fees of € 0.99 for each product sold: cost incurred only by those with the basic account;
  • Fixed monthly cost  – From 39 € [VAT excl.] For those who subscribe to the monthly subscription for unlimited sales [Pro Account];
  • Sales commissions: incurred by basic sellers and pro sellers.

The importance of testing

Even those who already have online e-commerce can think of opening a second one on Amazon.

On the other hand, about “80% of sellers also sell on other platforms outside of Amazon!” [ Vox ]

By opening e-commerce also on the marketplace, the touchpoints and the possibilities to intercept a new audience are expanded.

To do testing you could start with the basic account to conduct a careful evaluation!

By doing this you will know for sure if the investment can become a profit, considering the management costs of the Marketplace.

Start selling on Amazon

To become a seller on Amazon you just need to create an account on Amazon Seller Central by adding company information and the catalog with the products.

  1. Create the seller account

Opening the seller account is simple, you just need some data:

  • Personal – email address, telephone number, identity document -;
  • Banking [credit cards, IBAN code, bank details],
  • Businesses [“type of business, place, and date of foundation, registration number in the business register, VAT number, etc.”]
  1. Create an inventory of products

Once logged in, enter the products to sell.

To increase the possibility of meeting new customers, enable sales on foreign marketplaces:

  • Germany: Amazon.de;
  • France : Amazon.fr;
  • Spain: Amazon.es.

To correctly enter inventory products, you need to provide additional product-related information such as:

  • Title, Description, Image;
  • Type of code – EAN, UPC, or ISBN;
  • Price is the amount of money required for a product or service. In a broad sense, the price is the sum of all …;
  • Availability in stock.

Amazon and Brexit:

The British store deserves a separate mention, accessible on the amazon.co.uk website.

Since the Brexit laws went into effect last month, trade from Europe to the UK – and vice versa – has changed. To evaluate the hypothesis of selling a prospect. tA Prospect is a prospect for whom we have contact information and who has been qualified as meeting certain criteria. In most …Anglo-Saxons I advise you to keep yourself informed on the official Amazon page, to avoid unpleasant additional costs and delays.

2.1 – What products can you sell

Amazon Marketplace allows the sale of products belonging to various categories such as:

  • Automotive and Industry;
  • Home and kitchen;
  • Garden and DIY;
  • Electronics and IT;
  • Games, Children, and Early Childhood:
  • Entertainment: Books, Music, Videos, DVDs, Sports, Travel and Leisure.

For products in the electronics, computer accessories, jewelry, watches, shoes, and bags categories, approval must be received from Seller Central Support.

2.2 – What you can’t sell on Amazon

Amazon Marketplace places two simple stakes on commerce: a ban on dangerous goods and drugs.

The prohibited products also include tobacco and drugs.

E-commerce on Amazon: types and costs

Amazon offers sellers two sales accounts: the basic account and the pro account.

The basic account proves to be the ideal choice for those who will make ” less than 40 sales per month.”

Holders of this contract will bear the following expenses:

  • a fee of € 0.99 for each item sold;
  • sales commissions.

While the Account Pro proves suitable for those who want unlimited sales.

The pro seller will incur two expenses:

  • Monthly subscription of € 39 – VAT excluded-;
  • and various sales commissions.

Selling on Amazon: Basic Account Benefits

Amazon offers 4 business benefits.

1 – Payment flexibility according to use: since the basic account does not include a monthly fee, the seller will only pay the fees and sales commissions;

2 – Simple sale and assistance available: the seller can customize their shop, to do branding. Branding is a marketing technique used by companies to create the desired image of a product or company in the consumer’s mind. The…and work on advertising. Amazon provides businesses with guides and other useful tools to simplify the sales and sponsorship processes.

3 – Possibility of reaching millions of Amazon customers: the strong point of the platform is the huge user base present at a global level.

4 – Reliability of the marketplace: both for those who sell and for those who buy.

To read: Is it worth selling on Amazon or creating e-commerce?

Selling on Amazon: Pro Account Benefits

Pro sellers have 4 additional benefits available such as:

  1. Brand visibility: also obtained thanks to advertising.
  2. Sales on European platforms: therefore the possibility of meeting new audiences.
  3. A single inventory for the different European marketplaces ;
  4. Creation of reports and other analysis tools, limited to the platform and not monitorable with external software such as Facebook Pixel and Google Analytics.

Expand your business on Amazon

Fulfillment: The added value of Amazon Prime

Among the initiatives of the American giant is the successful Fulfillment by Amazon service, which allows you to reach customers outside the national territory and speed up sales thanks to Amazon Prime.

This service has two objectives:

1 –  Increase visibility among customers and increase sales potential. The best advantage is to make use of the buy box on the sales page.

The buy box is nothing more than the ” buy now ” box located on the right side of the page. It may seem like a trivial service but it is an additional incentive to reduce the buying friction.

– Amazon takes care of after-sales services: delivery, customer service, labeling, preparation and packaging, gift packaging.

The American marketplace aims to simplify the lives of sellers by providing useful tools to facilitate sales both in terms of logistics and advertising.

Advertising

Advertising on the Marketplace brings numerous benefits in terms to entrepreneurs.

The platform provides sellers with 3 advertising methods:

  • Sponsored Brand: the ideal choice to generate Brand Awareness. Brand awareness is a marketing term that describes the degree of recognition of a product by the consumer through its name or …;
  • Sponsored Product to increase the sale of featured products;
  • Sponsored Display whose goal is to reach new market segments.

Conclusion

The Amazon marketplace presents itself as a viable way to expand brand awareness and increase conversions.

It can play a strategic role especially for entrepreneurs who use the platform as second e-commerce, to have a new touch-point with the audience.

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