When it comes to researching a new online business opportunity there is no shortage of information out there. The hard part is sorting through it all and deciding if this opportunity is even right for you.
It’s time to clear up the confusion about selling on Amazon. You want to fully understand what this business can do for you and the commitment it requires before you decide to steer your focus in this direction.
Who can sell on Amazon?
Selling on Amazon is open to anyone. We’ve met people from all walks of life who have charted a new direction using Amazon’s marketplace as a selling platform including:
You’ll need to meet a few requirements in order to get started. Amazon will need to verify your identity. When you submit your application they’ll request the following:
Each of these will be verified upon submitting your application. This means anyone with a verified tax ID number, internet connection, and products to sell can sell on Amazon’s ever-growing marketplace.
When you choose to sell on Amazon you will become a third party seller. This means you are an independent business offering products for sale on Amazon’s website under your own seller ID/store name. You will be expected to adhere to all policies and terms of service they provide.
What types of products can be sold on Amazon?
If you can BUY it on Amazon, it can be sold on Amazon by a third party seller with some restrictions within categories, brands and specific products. Learn More Here.
New sellers often start selling books, housewares, and kitchen accessories.
How do you sell on Amazon?
There are two specific ways to sell products on Amazon. Either using the Fulfillment by Amazon (FBA) program or Seller (Merchant) Fulfillment.
What is Seller (Merchant) fulfilled?
You list products for sale on Amazon’s marketplace, store them in your home and ship them yourself when you make a sale.
What is Fulfillment on Amazon (FBA)?
When participating in the FBA program you will list products for sale, label and package them according to Amazon’s speculations and ship all the items in large boxes to the Amazon fulfillment centers (aka warehouses), where Amazon will store and ship your products when a customer makes a purchase.
Which Method Should You Choose?
Choosing the best fit for you depends on circumstances including available storage space, flexibility of time and convenience.
If you choose Merchant Fulfillment you will need a place to store your products until you make a sale. At the time of sale, you will need to ship the item to the customer preferably within 24 hours. This requires you to be close to home in the event of a sale.
With FBA, you will prepare larger shipments by sending in all your inventory at once to warehouses where Amazon will store and ship your products on your behalf until you make a sale. When a sale comes in because Amazon will ship your product to the customer on your behalf.
The major benefit of using the Amazon FBA selling program is that all your items will be available to the 101 million current US Amazon Prime members. As a merchant fulfilled seller your products won’t be eligible for Amazon Prime, and therefore you’ll cut your product visibility by over half. Most Amazon shoppers use Prime for the 2-day free shipping option and if your products don’t qualify for Prime your sales potential drops significantly. We highly recommend using FBA to sell on Amazon.
Deciding to start a new business is no small decision. Make sure you balance your research and inquiries with action steps. If you think Amazon FBA is the right business for you, take action now. Whether it is taking a course, watching a few more videos or opening an amazon account do something to move in the right direction. You’ve got this!
Ready to get started? You’ll be ready for your first sale on Amazon in as little as two weeks with our Start FBA Today™ program.
We're excited to help you on your journey.
This post is the first in a series to help you determine if selling on Amazon is right for you. The next post in the series we discuss the time and financial commitment you’ll need to make to start an Amazon business.