Primarily targeted towards providing an effective market for entrepreneurs, Amazon is website that rose to prominence over the years due to its services offered for both online sellers and buyers.
May it be a large item producer or an independent vendor, this site can potentially grant you huge profits upon the use of the right strategies. In this article, we will dig into the steps as to how you can start an online business with Amazon.
- Identify the types of products you wish to sell
It will be best to explore the available product categories of Amazon and decide which are most suitable for you. Varied items are generally classified into two – the open categories (ie. books, office products, toys, etc.) and those that still require approval (ie. collectible coins, jewelry, fine art, etc.).
Consider the involved competition within each category and see if your prospect product is naturally at an advantage or if you need to exert extra effort in marketing. It will also be strategic to introduce new product lines which can attract and keep loyal customers.
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- Estimate the number of items you will sell per month
Depending on the projected monthly item sales, Amazon classifies its merchants into two – the Individual and Professional Sellers. If you plan to sell less than 40 items per month, then the first is more suitable for you. If your target sales are way more than that, then it’s best to avail of the latter. Under the Individual seller plan, you will be charged of $0.99 per item in addition to referral and variable closing fees. On the other hand, the Professional seller plan features a $39.99 monthly subscription on top of the fore mentioned referral and variable closing fees.
While both Individual and Professional sellers can venture into open categories, only the Professionals are eligible to apply for the categories that need authorization.
- Register and manage an account in Amazon
Amazon will provide an easy to follow directions for signing up. More than that, their site has readily available references as to how you can effectively maintain your new account and attract potential customers. Here are a few basic tips that can get you started.
Maximize the use of keywords – Applying SEO strategies on both your account and product descriptions might just be the cheapest way to lure a customer right into your page.
- Create comprehensive yet catchy product descriptions – Accompanied with the best picture, an informative and well-written product description can speak for the overall quality of your item.
- Avoid under pricing simply to compete with other sellers – Do not overdo pricing strategies to the extent that it will significantly minimize your profits.
- Secure positive customer reviews and dispute negatively biased ones – Impressive testimonies from previous buyers can attract new ones.
- Offer promos especially during holidays – Giving out discount packages is another marketing strategy to effectively compete with other sellers on Amazon.
- Be quick in responding to customers – May it be an inquiry or a purchase request, make sure to promptly accommodate your buyers’ needs and offer high quality customer service.
Resources:
http://www.nytimes.com/2015/08/23/opinion/sunday/a-look-inside-amazon.html
http://fortune.com/2015/08/21/amazon-antitrust/
http://fortune.com/2015/08/20/amazon-overwork/