How to Third Party Sell on Amazon

Selling products on Amazon as a third party can be a lucrative venture if done correctly. This guide will walk you through the essential steps and considerations to get you started with selling on Amazon as a third party.

1. Understand Amazon's Marketplace

Amazon provides two primary platforms for third-party sellers: Amazon Seller Central and Amazon Vendor Central. Most third-party sellers use Seller Central as it gives you control over your sales and allows you to manage your inventory directly.

• Seller Central: Designed for individuals and small businesses. You list your products, set your prices, and manage your orders.
• Vendor Central: Generally used by larger companies where Amazon buys your products directly and sells them as a retailer.

2. Register for an Amazon Seller Account

To start selling on Amazon, you'll need to register for an Amazon Seller account. Follow these steps:

• Go to the Amazon Seller Central website.
• Click on “Register Now”.
• Choose between Individual or Professional selling plans. The Individual plan has no monthly fee but charges a per-item fee, whereas the Professional plan has a monthly fee but no per-item fee.

3. Choose Your Selling Plan

Amazon offers two types of selling plans:

• Individual Plan: Ideal for those who plan to sell fewer than 40 items per month. No monthly fee but a $0.99 fee per item sold.
• Professional Plan: Best for those who plan to sell more than 40 items per month. Comes with a monthly subscription fee of $39.99 but no per-item fee.

4. Set Up Your Seller Profile

Once you’ve chosen your selling plan, you'll need to set up your seller profile. This includes providing:

• Business Information: Name, address, and contact details.
• Tax Information: Your Tax Identification Number (TIN) or Social Security Number (SSN).
• Bank Account Information: For receiving payments from Amazon.

5. List Your Products

You can list your products in several ways:

• Manual Listing: Suitable for a few products. Use the “Add a Product” button in Seller Central to enter product details.
• Bulk Listing: For large inventories. Use Amazon’s bulk upload tools and templates.
• Integration with E-commerce Platforms: If you use platforms like Shopify, you can integrate with Amazon to sync your inventory and manage listings more efficiently.

6. Optimize Your Listings

Effective product listings include:

• High-Quality Images: Clear, professional photos of your product.
• Compelling Titles: Include key features and keywords.
• Detailed Descriptions: Explain the benefits and specifications of your product.
• Relevant Keywords: Use Amazon's keyword tools to find and include relevant search terms in your product descriptions.

7. Price Your Products

Competitive pricing is crucial. Consider:

• Amazon’s Fees: Be aware of referral fees, which can vary by category.
• Competitor Prices: Check similar products on Amazon to ensure your prices are competitive.
• Your Costs: Include manufacturing, shipping, and Amazon fees in your pricing strategy.

8. Manage Inventory and Fulfillment

You have two main options for fulfilling orders:

• Fulfillment by Amazon (FBA): Amazon handles storage, packaging, and shipping. Your products are eligible for Amazon Prime, and you can reach more customers.
• Fulfillment by Merchant (FBM): You manage storage and shipping yourself. This option can be more cost-effective but requires more effort.

9. Monitor Performance and Customer Feedback

Keep track of your sales performance and customer feedback:

• Sales Reports: Use Amazon’s reports to monitor your sales, manage your inventory, and understand your performance metrics.
• Customer Reviews: Respond to reviews and feedback to maintain a positive seller reputation.

10. Advertise Your Products

Consider using Amazon’s advertising tools to increase visibility:

• Sponsored Products: Ads that appear in search results and product detail pages.
• Sponsored Brands: Ads that feature your brand logo, a custom headline, and multiple products.
• Sponsored Display: Ads that target customers based on their shopping behavior.

11. Comply with Amazon’s Policies

Ensure you follow Amazon’s rules and guidelines to avoid account suspensions or other issues. Familiarize yourself with Amazon’s:

• Product Listing Guidelines: To avoid listing errors and rejections.
• Seller Code of Conduct: To maintain good standing as a seller.

12. Stay Updated

Amazon frequently updates its policies and features. Stay informed about changes to optimize your selling strategy and remain compliant.

Summary

Selling on Amazon as a third party involves setting up an account, choosing the right selling plan, optimizing product listings, managing inventory, and utilizing Amazon’s advertising tools. By following these steps and continuously monitoring your performance, you can effectively grow your business on Amazon.