In this post we are going to cover the basic first step that you need to know to start selling on Amazon. We will start from the very first step that creates your account, then going through the Amazon FBA process for sellers, how to to find product Amazon high demand products and low competition, finding a supplier on Alibaba, send your product to Amazon and get money.
# How To Setup Your Amazon Seller Account #
Go to Amazon Seller Central and click on Register Now. Hit Start selling and Create your Amazon Account. You will provide your basic information such as Your Name, Email and create a Password.
At this point you will be asked about the Legal Name of your business. If you already have a registered company, you can use it. If don’t, just put your name and it will be all right.
Provide your Address, etc.
The information you provide in the box “Choose your unique business display name” will be showed to your customer on the top page. We recommend you start with a general name, unless you already know that you will sell for a specific market.
If you would sell your product online, enter your website URL.
Choose a call or SMS receive a PIN to verify your phone number.
Billing / Deposit:
Set up your billing method.
As you can see, the account fee is $39.99 per month and you will be charged the first month upon your registration.
Provide the credit card details that will be charged the Amazon fee.
Set up your deposit method.
This section is about how Amazon will pay you and transfer the money to your bank.
So, provide information such as Bank location, Account Holder’s name, Bank Account Number, etc.
Hit the button “Start Tax Interview”.
You will see questions like:
Who will receive income from Amazon or its subsidiary?
We are going to sell as an individual or sole-proprietor if you do not create your company yet. If you already have your company created, go with Business option.
For U.S. tax purposes, are you a U.S. person?
Tax Identification Number: If you are starting as a individual sole trader, do not worry about that now. You can edit this information later.
Do you consent to provide an electronic signature for you IRS form W-9? That is basically a tax form and we hit “yes” to confirm our electronic sign at the document.
Type your name bellow.
Hit submit and you will get a message like “Your IRS Form W-9 has been received” and click exit interview.
Do you have your Universal Product Codes (UPCs) for all your product? “Yes”
Do you manufacture and brand the product you want to sell on Amazon? “Yes”
How many product do you plan to list? If you are just starting the probably answer is 1-10.
The next page is about providing Amazon more details on what product you are going to sell. This does not really matter right now, so just select the most suitable category and hit finish.
You can edit all this stuff later, so don’t worry to much.
And that’s it! Now you have your Amazon account created.
Now let’s start with the really important practice steps you should know before you are start to sell on Amazon.
# Understand the Process #
Basically, you are going to buy products from suppliers and you will be a third party seller from Amazon. You will send them to the Amazon warehouse and Amazon ship it out for you.
We highly recommend you start using the Amazon storage because they can do the whole process for you while you are focusing on other things. Examples; your marketing strategy, finding the right product, or even when you are enjoying your family and watching Netflix.
The term FBA comes from this and means Fulfilled By Amazon, that is exactly when Amazon fulfilled the orders for you.
# You need to find Amazon high demand products and low competition #
Here our key phrase is BSR #5000 . Let us tell you what does it mean.
Amazon best seller product list
You can just Google Amazon Best Seller and find the first link that will take you to the Amazon page. There you can see products which have a really good seller rating. You can see the huge list on the left hand side with all the categories. Have a good look at the best seller products on Amazon are in front of you.
Best sellers Ranking
If you click on a product and you scroll down until you find the Best Seller Rank – BSR. In this information you can see which place the product is at in the specific category. For instance, if you find a product that has a position of #5000 or lower, it means that the product is selling approximately 15 times a day.
Knowing your competitors
Copy the main key word of a product into the Amazon search bar and have a look at the search results. Then you click on the last non-sponsored result of the first page. Click into the product page, scroll down until you find the BSR again. If the BSR product between #1 and #5000, it is a strong seller. However, if you find a product in the first page with a BSR over #5000, you can consider that there is a chance to be able to compete in this market. So, long story short, if you do research on products which the seller on the first page are not in the #5000 position in the BSR, maybe you found a product with a high potential.
# Find a supplier who can build your product #
Go to the Alibaba website. It is a business network platform and will help you with the Amazon FBA process.
Make a search on the product you are looking for sell.
On the “Supplier Types” bar click on the check boxes “Trade Assurance” and “Gold Supplier”. And if you want to be really safe hit on “Assessed Supplier”. For instance, the Trade Assurance means that you can get your money back if you have a problem with your supplier.
Then you need to check if the product you are buying from a supplier is profitable. Your challenge here is to make sure that you can beat the competition and still be profitable with your price. You should make sure that at least 67% of the profit either goes to the supplier or to you, and also the remaining 33% goes to Amazon.
Keeping that in mind, you can choose a product in Alibaba and contact the supplier straight away. You can type the quantity needed and ask them how much would it cost it if you make an order.
Make sure you study your competitors reviews. You should find out what their customers don’t like about their product and you build your product to fix those problems.
The key rule here is to differentiate your product from others.
# Send the product to Amazon and start making money #
Ask to your supplier to print the FNSK code on the package you are selling because your product will be sent from the supplier to the Amazon warehouse. When the product gets to the Amazon warehouse, the buyers will see your product on Amazon’s website.