Share This Article
The shopping methods of users are changing frequently, as are the shopping platforms. There has been a positive evolution in the product-buying process.
eCommerce is all about selling goods, services, and funds over the internet. It‘s similar to starting your own company but online. When things are going so well in the eCommerce niche, everyone wants to get in on the action.
Which is fair, as profit is what everyone looks for.
If you are also someone who has an eCommerce startup and wants to start your business on big platforms like Amazon, then you have clicked on the right link.
This blog will be a complete guide on how to start a business on Amazon.
Why Amazon Tho?
Have you ever thought about why eCommerce businesses sell their products on Amazon?
Amazon is a platform with more than 1.9 million sellers. It is the biggest online retailer all around the world, with eBay being the second.
Amazon is a retail giant with over 300 million customer accounts, giving small and midsized businesses a platform to earn from online sales.
This is an indication to give Amazon a shot.
Here, are some more benefits of selling on Amazon-
- It has high traffic.
- It provides turnkey solutions.
- Amazon holds a phenomenal track record.
- It provides scalability
- You can easily create a seller account on Amazon.
Now, the point is how do I get started with Amazon?
For this, you have to decide the way you want to sell the products on Amazon.
Make a Decision on How to Sell
One important thing about selling products on online platforms is to offer the sellers maximum flexibility so that they can sell products quickly.
Some of the prevalent business models that you can try are:
1. Dropshipping
With the dropshipping method, you don’t need a warehouse or inventory. Whenever you receive an order, share the details with the manufacturer/ supplier to fulfil the order.
This means you only have to take orders. The rest of the work, like obtaining items, storing them, and shipping them, can be outsourced.
2. Wholesale
It is one of the popular models where one can purchase demanding products in bulk from a manufacturer or a brand at a relatively low cost or at a discounted price. It is then sold as an individual unit by listing it on the manufacturer’s existing listings.
With this model, you can significantly commit to an existing product’s demand.
3. Retail Arbitrage
In this model, one purchases products from brick-and-mortar stores or from a website. It is done to find low-priced or discounted items in retail stores and discount sites like eBay and Alibaba so that they can be resold on Amazon for a profit.
4. Private Label
The private label model is different from the above three models. It involves more heavy lifting, such as sourcing products from a manufacturer. Working with manufacturers to customize products with your brand elements.
This model involves more work. However, around 80% of US consumers have shown interest in private labels, so I guess it’s worth the extra effort.
5. Handmade
If you are an artist or want to sell your products on Amazon, then this is the model for you. With this model, you can sell your handmade products on the Amazon marketplace. Amazon has also made a separate section on its platform where you can get better exposure and have higher chances of making a sale.
A Quick Guide for Starting Your Business on Amazon
Starting a business on Amazon can be a great way to reach millions of customers and generate revenue. Here are some quick steps to get started:
Choose a product or niche: Decide what type of product you want to sell on Amazon. Do some research on what products are popular, what is in demand, and what you are passionate about.
Create an Amazon Seller account: Go to the Amazon Seller Central website and create an account. You will need to provide basic information about yourself and your business.
Source your products: You can either manufacture your own products or source them from a supplier. Make sure you find a reliable supplier with good quality products.
Create a product listing: Create a detailed product listing with high-quality images and a clear description of your product.
Set your price: Price your product competitively. Do some research on the costs of similar products on Amazon to get an idea of what to charge.
Fulfill orders: When a customer places an order, you can either fulfil the order yourself or use Amazon’s fulfilment service, Fulfillment by Amazon (FBA).
Market your product: Use Amazon’s advertising tools to market your product to potential customers. You can also use social media and other marketing channels to drive traffic to your Amazon listing.
Monitor your sales: Keep track of your sales and customer feedback. Use this information to make adjustments to your product and marketing strategy.
Some Pointers for Starting an eCommerce Business
Starting an e-commerce business can be exciting and challenging at the same time. Here are some tips to help you get started:
Research your market: Before starting an e-commerce business, research your market thoroughly. Identify your target audience, their needs, and what your competitors are doing.
Choose the right platform: Choose the right e-commerce platform that suits your business needs. Some popular options include Shopify, WooCommerce, and Magento.
Create a user-friendly website: Make sure your website is easy to navigate and user-friendly. Your website should have clear product descriptions, high-quality images, and easy-to-use shopping carts.
Offer competitive pricing: To attract customers, offer competitive pricing for your products. Do some research on what your competitors are charging and set your prices accordingly.
Focus on customer service: Good customer service is crucial for the success of an e-commerce business. Respond to customer queries promptly and offer a hassle-free return policy.
Use digital marketing: Use digital marketing techniques such as search engine optimization (SEO), social media marketing, email marketing, and pay-per-click (PPC) advertising to promote your e-commerce business.
Optimize your website for mobile: A significant portion of e-commerce sales comes from mobile devices. Ensure your website is optimized for mobile devices with a responsive design and easy navigation.
Leverage analytics: Use analytics tools to track your website traffic, user behavior, and sales. This information can help you make data-driven decisions to improve your e-commerce business.
Build a strong brand: A strong brand can help you stand out in a crowded market. Invest in building a brand identity that resonates with your target audience.
Final Thoughts
Starting a business on Amazon can be a great opportunity, but it’s important to do your research and be prepared for the competition. Make sure you have a solid business plan and are willing to put in the work to make your business successful.
An e-commerce business takes time and effort, but following these tips can help you create a successful business. Remember to stay focused on your goals, keep your customers happy, and be willing to adapt and evolve as needed.
Extern Labs is here for all your tech-related needs. Whether you want to build your website or want to establish your brand through digital marketing, we will assist you with all steps of your business.
