Amazon Small Business Guide: How to Get Started
Amazon has changed how consumers shop, businesses sell, and everything else. And, with more than 60% of sales coming from independent sellers, primarily small and medium sized businesses, it’s can help smaller businesses grow through accessing new customers.
We covered the pros and cons of selling on Amazon in a previous blog post, "Should You Sell Your Product on Amazon?.” Although we acknowledge that the decision to sell in Amazon’s store is unique for every business owner, it’s something that every CPG brand should consider.
Once a company decides to enter Amazon's digital doors, what should it do next? Abby Malchow, Manager of Small Business Partnerships & Education at Amazon, shares how to start selling in Amazon's store.
Click here for the entire webinar.
My Business is Ready for Amazon, but Is It?
Even though you've decided to sell on Amazon, your product might not be suitable for the store.
Abby shares that products should be easy to package and ship, have branding potential, a long shelf life (six months or more), and be affordable to customers (typically less than $200). Food and beverages that need refrigeration might not be a good fit for Amazon’s store.
If your product matches the criteria, ask yourself – do I have the infrastructure to support selling on Amazon? The product should be in stock. Businesses should have a clear understanding of the target consumer. Supply chain logistics should run seamlessly.
Also, is your product and brand name trademarked? If not, visit Amazon’s IP Accelerator for resources and professionals who can help you file for a trademark to ensure success in Amazon’s store.
Check all the boxes? It's go time.
Process for Starting to Sell in Amazon’s Store
Select a plan—individual or professional. Individual plans may be a good fit for brands selling less than 40 items a month and who require less analytic data. There is a 99-cent charge on every sale. The professional plan is $39.99 monthly and provides increased access to analytics and additional selling programs. You can switch plans at any time which provides flexibility.
Create an account. Selling to other businesses? Create an account here. Selling directly to consumers? Create an account here.
Organize information. Amazon requires a bank account number and routing information, a chargeable credit card, a government-issued national ID, tax information (social security information), and a phone number.
Become friends with Seller Central. Keep track of inventory, update listings, contact selling partner support, and review analytics. Insider's tip: Review the QuickStart guide, which provides an action plan for the first 90 days selling in Amazon’s store (available once you’ve set up an account). On average, sellers who follow the QuickStart guide generate 6.3X more first-year revenue than those who don't.
List products. Make sure you have product IDs (read "Barcodes 101—Everything You Need to Know about the Universal Product Code (UPC)"), SKU numbers (created by you or Amazon), product titles, descriptions, images (a recommendation is six or five and a video), and search terms.
Register on the Brand Registry. This helps protect your brand's IP and allows you to create a brand store.
Fulfill orders. Congratulations on your first Amazon sale! Now, you must deliver the product. Select your fulfillment strategy (Fulfillment by Merchant, Amazon - Fulfillment by Amazon Revenue Calculator, or Seller Fulfilled Prime).
Get reviews. Encourage your customers to leave reviews. Additionally, Amazon Vine is an invitation-only program that selects the most insightful reviewers in the Amazon store to serve as Vine Voices. Brands can enroll in this program.
Consider advertising tools. Business owners can explore different options here. Selling partners that ran a 12-month campaign in 2022 saw an average 11.2% higher return on ad spend than their first month.
Apply for the small business badge and add diverse business certifications to your Seller Central account.
Additional Resources for Selling on Amazon
Black Business Accelerator - Create a Professional selling account and certify your business as Black-owned to unlock a suite of resources to help you succeed in Amazon's store.
Seller Fulfilled Prime - The Prime program allows you to deliver directly to domestic Prime customers from your warehouse. By displaying Prime branding on your offers, you are committing to fulfill orders with one-day and two-day delivery at no additional charge for Prime customers.
Amazon Small Business Academy offers FREE small business resources: online courses developed with industry professionals, live and on-demand educational content, and a community of like-minded entrepreneurs.
Amazon Handmade - Artisans from over 80 countries are following their passion and selling their craft in Amazon’s store.
Amazon Seller Blog - Tips, info, and stories about selling in Amazon store.
Bottom Line: Amazon is the world's largest online retailer and a "prime" opportunity for small business owners to introduce their brand to the store’s hundreds of millions active users. Selling in Amazon’s store is an investment (in time and money), but the benefits can take your business to the next level. Check out our blog post on "How CPG Entrepreneurs Thrive on Amazon" to learn how other women founders are finding success in the store.