The fight to sell online is going further and further. New challenges arise every so often and it seems more than evident that Selling on Amazon is the most recent goal of the vast majority of e-commerce.

Launching into the marketplace par excellence involves making some strategic decisions. In the end, everything happens to adapt to a new environment and that requires a certain investment in time and resources.

In any new venture, we must know how to assess the learning curve and be realistic about what it is going to mean to achieve a certain mastery of the environment. To help you with this, I am going to give you some tips and hints to manage your Amazon account as a seller, first for what values ​​whether or not you should take the leap, and then simply to guide you to adapt your business model to Amazon by selling your products.

Is Amazon for everyone? The answer is simple: no. Have you been surprised? I imagine not, you already know that each business has some economic and strategic conditions. This means that in the end there is no perfect and universal solution that we all fit into and Amazon is no exception to this universal law of business.

You must be sure to have a sufficient margin because in this environment there is increasingly high competition and you have to pay certain tolls to use the platform. Typically I would tell you that Amazon is recommended in this order for manufacturers, wholesalers, and retailers with a good margin and advantageous commercial agreements that allow you to sell at a competitive price, pay Amazon fees, and continue to earn money.

The product is the most important variable to control when we want to sell on Amazon. It is always best if you have one exclusively (either as a manufacturer or distributor) this will mean that you will not have as much competition. Check that it is not for sale and, if it is, who are your competitors and in what margins they move.

If you have reached this paragraph: congratulations. That means that both in product and numbers you see certain viability to the project. Now comes the second big decision and it is one that will determine practically everything you do next: What regime do I sell on Amazon?

To give you an idea, you can choose between two different ways of putting the products on sale. You can choose Amazon Retail or Amazon Marketplace. Let's briefly see what each of them is.

It consists of selling directly to Amazon and leaving all the management in their hands, from the price or storage to distribution and shipping. There is no difference to what is the most classic model of selling to a large area and "disengaging"

This means a greater lack of control over our product, and everything happens to achieve the best possible negotiation so as not to get our fingers caught (payment times, return policy, over-stocks)

The best? that Amazon will always look favorably upon its products and by "look favorably upon" I mean that it will prioritize its sale.

In this case, you keep all control over your product from stock or pricing to logistics, shipping, and dealing with the end customer depending on the “fulfillment” method you choose when you start selling there. There are two types of collaboration with Amazon Marketplace:

Fulfilled by Merchant (FBM): real control over all processes and procedures. The option that the portal likes the least because it feels that it is leaving its customers in your hands.

Fulfilled by Amazon (FBA): We assign responsibility for warehousing and logistics to Amazon. They will be the final responsibility for their clients. If you do numbers you will see that all those costs (warehouse, shipping, and after-sales service) are similar or lower than what it would mean for you to manage it with a third party or assume it internally.

Also, Amazon cares more for FBAs and allows them to enter its Prime program, to sell better by prioritizing its positioning in the search engine and winning the famous buy box. On the other hand, you will have to go through its rules and the strict performance levels required.

For its part, Amazon offers you its platform, it's brand that has enormous weight and the millions of visits it generates per month from customers who have advanced through the customer journey to phases closer to conversion. All this that is so sweet necessarily passes through a series of considerations and tools.

You have to pay a price based on the sales plan you select. There are three different:

Individual: ideal for freelancers who make less than 40 monthly sales (if you do more you will have to upgrade) € 0.99 per product sold plus shipping, the reference rate, and a variable that depends on the category of the Article. Of course: there is no monthly fee.

Professional: mandatory for all those who sell more than 40 items per month. You pay a monthly fee of 39 euros which allows you to sell in England, Germany, France, Italy, and Spain. You do not pay the fixed € 0.99 of the individual plan, but you still have to face Amazon commissions that vary for each category and range from 5% on laptops to 45% on accessories for Amazon devices (you can see the list here full of all categories and some extra charges for some of them)

Brands: as producers we negotiate directly with Amazon, centralizing all orders in one that we make to Amazon every week.

As you can see, it has its cost, the important thing is that you do your numbers and values ​​if it is still profitable to use this sales channel.

Right now the level of exposure and the brutal reach that it boasts in all the markets it reaches make it very attractive to consider entering Amazon.

Author's Bio: 

Are you a newbie to the world of Amazon selling or thinking about starting? Check out this expert guide on how to sell on Amazon