Selling on Amazon for Dummies

Sell on Amazon and Make Them Do the Heavy Lifting

Selling on Amazon has become one of the most popular ways to earn income online. In fact, there are over 2 million people selling on Amazon worldwide. Amazon allows any business, no matter how small, to get their products in front of millions of customers and take advantage of the largest fulfillment network in the world. It also allows businesses to leverage their first-class customer service and storage capabilities.

Selling on Amazon For Dummies walks owners through the process of building a business on Amazon—a business that can be built almost anywhere in the world, as long as you have access to a computer and the internet.

• The basics of selling on Amazon
• Using FBA
• Getting started
• Deciding what to sell
• Conducting product research
• Finding your way around Seller Central
• Product sourcing, shipping and returns, Amazon subscription, fees, sales tax, and more
• How to earn ROIs (Returns on Your Investments)

Selling on Amazon For Dummies provides the strategies, tools, and education you need, including turnkey solutions focused on sales, marketing, branding, and marketplace development to analyze and maximize opportunities.

Deniz Olmez is an Amazon consultant who specializes in search engine optimization, new account setup and management, FBA, and branding services. Joe Kraynak has authored and coauthored numerous books including Flipping Houses For Dummies and Foreclosure Self-Defense For Dummies.

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 3

Where to Go from Here 4

Part 1: Getting Started With Selling On Amazon 5

Chapter 1: Laying the Groundwork 7

Getting the Lowdown on Selling Online 7

Weighing the pros and cons of online retailing 8

Taking a tour of online stores and marketplaces 9

Exploring How Amazon Works 10

Before you start selling 10

Selling products 11

Using Fulfillment by Amazon (FBA) 11

Comparing Amazon Business Types 13

Vendor (1P) versus Seller (3P) 13

Individual versus Professional 14

Arbitrage versus private label 15

Sellers with and without brand registry 17

Tabulating the Costs 18

Product sourcing 18

Shipping and storage 18

Amazon Seller fees 19

Returns 19

Other costs 20

Following Amazon’s Rules 20

Seller code of conduct 20

Accurate information 21

Acting fairly 21

Ratings, feedback, and reviews 22

Communications 22

Customer information 22

Circumventing the sales process 22

Multiple Amazon Seller accounts 23

Chapter 2: Selling on Amazon in a Nutshell 25

First Things First: Finding Products to Sell 26

Deciding what to sell and not sell 26

Exploring product sourcing options 29

Listing Products for Sale on Amazon 30

Prepping and Shipping Products to Customers 31

Introducing Amazon Prime 31

Fulfillment by Amazon (FBA) and Small and Light (SNL) 32

Fulfillment by Merchant (FBM) 33

Seller Fulfilled Prime 34

Drop-shipping 34

Multi-Channel Fulfillment 35

Boosting Sales with Advertising and Promotions 35

Providing Stellar Customer Service 37

Chapter 3: Setting Up Your Amazon Seller Account 39

Registering to Become an Amazon Seller 39

Completing Your Amazon Seller Business Profile 42

Business Address 42

Official Registered Address 43

Language for Feed Processing Report 43

Legal Entity 43

Merchant Token 44

Display Name 44

Checking and Adjusting Your Account Settings 45

Entering Shipping and Return Settings 46

Shipping settings 46

Return settings 47

Securing Your Amazon Seller Account 49

Chapter 4: Becoming Familiar with Seller Central 53

Finding Your Way around Seller Central 53

Switching marketplaces 54

Navigating the menu bar 54

Using the search bar 60

Viewing your payments summary 61

Taking advantage of Amazon business reports 62

Accessing the Buyer-Seller Messaging Service 64

Getting Help and Information 65

Engaging in the seller forums 66

Contacting Amazon support for help 67

Managing your case log 67

Consulting Amazon Selling Coach 68

Skimming Amazon headline news 69

Checking out Amazon’s app store: The Service Provider Network (SPN) 69

Exploring Amazon’s Seller University 70

Part 2: Procuring Products to Sell On Amazon 71

Chapter 5: Knowing What You Can and Can’t Sell on Amazon 73

Recognizing Products You Can Sell: Amazon’s Product Categories 73

Open categories 74

Categories that require approval 75

Steering Clear of Restricted Products 76

Brushing Up on Food Safety Rules 78

Organic products 79

Chilled and frozen products 80

Chapter 6: Finding Products with Profit Potential 81

Recognizing the Characteristics of Products with High Profit Potential 82

Uniqueness 82

Price range and profit margin 82

Sales volume 83

Shipping cost/complexity 84

Reviews 84

Steering Clear of Troublesome Products 84

Trademarked products 85

Mechanically complex products 85

Products that are difficult and costly to store and ship 86

Products sold in large retail stores 87

Conducting Your Own Product Research 87

Using product research tools   87

Sizing up the competition 89

Exploring Alibaba and other Chinese online wholesale marketplaces 90

Validating or Rejecting Product Ideas 92

Weighing the pros and cons of carrying the latest, greatest products 92

Considering seasonal products 93

Giving new brands a try (or not) 93

Focusing on Price and Sales Volume 94

Checking out different pricing strategies 95

Keeping an eye on the competition 95

Estimating sales volume 97

Setting realistic profit projections 98

Chapter 7: Exploring Your Product Sourcing Options 101

Mastering Retail Arbitrage 102

Buying from brick-and-mortar retailers 102

Buying from online retailers 105

Recognizing the importance of having a purchase order (PO) or receipt 107

Sourcing Products at Auctions and Liquidation Sales 107

Weighing the Pros and Cons of Drop-Shipping 109

Buying from Manufacturers, Distributors, and Wholesalers 110

Deciding whether a manufacturer is best 111

Knowing when to opt for a distributor 111

Deciding when a wholesaler is best 112

Sourcing Products from Alibaba 114

Finding Suppliers at Tradeshows 117

Making and Selling Your Own Products: Amazon Handmade and Custom 119

Selling your own hand-crafted products 119

Selling customized products on Amazon 121

Chapter 8: Evaluating and Negotiating with Suppliers 123

Deciding Whether to Use Domestic or Foreign Suppliers or Both 124

Recognizing the pros and cons of working with domestic suppliers 124

Weighing the pros and cons of working with foreign suppliers 125

Selecting Suppliers with the Right Stuff 126

Gauging experience and expertise 127

Ensuring clear communication 127

Sizing up a supplier’s reputation 128

Assessing a supplier’s responsiveness 130

Comparing prices 131

Negotiating Prices and Terms 132

Prepping for negotiation 132

Brushing up on effective negotiating tactics 133

Obtaining a purchase order contract 134

Part 3: Getting Down To The Business of Selling 137

Chapter 9: Listing Products for Sale on Amazon 139

Knowing What’s Required to Own the Buy Box 140

Ensuring buy-box eligibility 140

Meeting the quality metrics for winning the buy box 141

Thinking outside the buy box 144

Obtaining High-Quality Product Photos 144

Brushing up on Amazon’s product photo rules and restrictions 145

Procuring manufacturer photos 146

Taking your own photos 146

Outsourcing product photos 147

Checking out Amazon Imaging Services 148

Creating a Product Listing 149

Matching to an existing product listing 149

Creating a new product listing 151

Listing multiple products in bulk 155

Listing variations and bundles 159

Creating product subscriptions 162

Increasing Your Product Search Ranking on Amazon 164

Harnessing the power of the A9 algorithm 164

Checking out the competition 166

Using keywords to your advantage 166

Chapter 10: Fulfilling Customer Orders 171

Choosing an Order Fulfillment Method 172

Fulfillment by Amazon (FBA) 172

Fulfillment by Merchant (FBM) 174

Seller Fulfilled Prime 175

Drop-shipping 177

Using Fulfillment by Amazon (FBA) 178

Accounting for the costs 179

Knowing what to send and not send to FBA 182

Signing up for FBA 185

Preparing and shipping products to FBA 185

Removing inventory from FBA 190

Shipping Products Yourself: Fulfillment by Merchant (FBM) 193

Chapter 11: Helping Shoppers Find You and Your Products 195

Gaining Traction with Product and Seller Ratings and Feedback 195

Encouraging customers to review products 196

Improving your seller rating and feedback 199

Harnessing the Power of Search Engine Optimization (SEO) 200

Jazzing Up Your Listings with A+ Content 201

Driving Web Traffic from Outside Amazon to Your Product Listings 203

Generating buzz via social media 203

Creating a website or landing page 204

Using pay-per-click advertising 206

Chapter 12: Boosting Sales with Marketing and Advertising 207

Exploring Different Ad Types 208

Sponsored Products 208

Sponsored Brands 210

Sponsored Display 211

Amazon demand-side platform (DSP) 211

Custom ads 212

Deals and coupons 212

Optimizing Your Search Rank with Sponsored Product Ads 214

Letting Amazon target your Sponsored Product ad for you 214

Targeting your own Sponsored Product Ads 215

Evaluating and adjusting your ad campaigns 217

Boosting Brand Awareness with Sponsored Brands 219

Giving Your Shoppers an Added Incentive to Buy: Deals and Coupons 221

Offering special deals 221

Offering coupon discounts 223

Creating promotions 224

Taking Advantage of External Marketing Options 225

Dipping into social media marketing 226

Harnessing the power of influencer marketing 228

Firing Up Your Email Marketing Machine 229

Chapter 13: Focusing on Customer Service 231

Understanding Why Customer Satisfaction Is So Important 232

Laying the Groundwork for Quality Customer Service 233

Managing and Shipping Orders 234

Responding to Customer Questions, Concerns, and Complaints 235

Processing Returns, Refunds, and Cancellations 236

Handling returns 237

Issuing refunds 239

Following up on order cancellations 239

Managing Seller Feedback and Product Reviews 240

Monitoring and responding to seller feedback 241

Monitoring and responding to product ratings and reviews 243

Fielding A-to-Z Claims 244

Chapter 14: Building and Managing Your Own Webstore 247

Choosing Where to Build Your Webstore: Inside or Outside Amazon or Both 248

Weighing the pros and cons of building an Amazon Store 248

Weighing the pros and cons of building a webstore outside Amazon 249

Creating two webstores 250

Laying the Groundwork for Your Webstore 250

Choosing a unique and recognizable domain name 250

Deciding how to build your webstore 251

Categorizing your products 252

Gathering the essentials to build your store 254

Creating Your Amazon Store 257

Creating a Stand-Alone Webstore 259

Designing your storefront 259

Making sure you have everything in place   261

Chapter 15: Managing Your Inventory 263

Grasping the Importance of Inventory Management 263

Managing Inventory via Amazon’s Manage Inventory Page 264

Maintaining Sufficient Stock 266

Forecasting sales 266

Accounting for lead time 267

Replenishing FBA inventory 268

Setting up replenishment alerts 269

Avoiding FBA’s long-term storage fees 271

Getting Some Cash or Credit to Buy Inventory 272

Hitting Amazon up for a loan 272

Getting daily payouts with Payability 273

Making savvy use of credit cards 274

Financing with loans or lines of credit 274

Part 4: Taking Your Business to the Next Level 277

Chapter 16: Putting Additional Amazon Seller Tools to Work for You 279

Tracking Your Account’s Health and Performance 280

Checking your account health 280

Reviewing customer feedback 282

Monitoring and managing your A-to-Z Guarantee claims 282

Monitoring and managing your chargeback claims 283

Accessing Amazon’s performance notifications 284

Gaining additional insight via the Voice of the Customer feature 284

Improving your performance via Seller University 285

Dealing with Sales Tax 285

Grasping the basics of Marketplace Tax Collection 286

Using Amazon’s Tax Calculation Service (TCS) 287

Generating Business and Inventory Reports 289

Sales reports 289

Inventory reports 290

Payments reports 292

Customer concession reports 292

Removal reports 293

Managing Your Amazon Seller Account with the Mobile App 293

Getting the Amazon Seller Mobile App 294

Navigating the Amazon Seller Mobile App 294

Chapter 17: Building Your Own Brand (or Not) 297

Deciding Whether Branding Is Right for You 298

Creating Your Own Brand 299

Discover your purpose 299

Analyze your competition 300

Identify your target market 300

Identify your brand’s key benefits 301

Write a slogan 302

Visualize your brand 302

Work it: Reinforce your brand 302

Trademarking Your Brand 303

Registering your trademark on USPTO.gov 303

Streamlining the trademark registration

process with IP Accelerator 304

Adding your trademark to the Amazon Brand Registry 305

Building a Brand with Private-Label Products 309

Chapter 18: Taking Advantage of Third-Party Tools and Service Providers 311

Taking Product Research to the Next Level 312

Managing the Backend of Your Ecommerce Business 313

Handling multi-channel integration 314

Streamlining order management 315

Simplifying inventory management 315

Automating price changes 316

Automating Feedback and Reviews 317

Finding Help through Amazon’s Service Provider Network 318

Chapter 19: Expanding Your Operations: B2B and Global Sales 321

Selling Products to Amazon as a Vendor 322

Weighing the pros and cons of selling to Amazon as a vendor 322

Increasing your chances of getting invited to become a vendor 323

Selling to Other Businesses 323

Getting up to speed on performance standards and rules 324

Managing business pricing and quantity discounts 325

Creating business-only offers 328

Enrolling in Amazon’s tax exemption program 329

Negotiating business prices 330

Expanding Your Operations Globally 331

Simplifying the process with FBA Export 331

Expanding your operations into other countries using Amazon Global Selling 333

Part 5: The Part of Tens 335

Chapter 20: Top Ten Advertising Tips 337

Get to Know the Different Ad Types 337

Test the Market with Automatic Targeting 338

Make the Most of Manual Targeting 339

Find Your Long-Tail Search Terms 339

Research Your Competitor’s Search Terms 340

Write Copy Specific to Your Product 340

Avoid These Common Search Terms Mistakes 341

Specify Negative Search Terms 342

Always Test and Track 343

Don’t Rush! Good Advertising Takes Time 343

Chapter 21: Ten Tips to Deliver Awesome Customer Service 345

Follow Amazon’s Rules and Updates 346

Respond in a Timely Manner 346

Be Honest 347

Be Empathetic 347

Go the Extra Mile 348

Ask Questions 348

Personalize Your Responses 349

Stay Calm 349

Remain Positive 350

Think Long Term 350

Chapter 22: Ten (Plus One) Tips to Find Best-Selling Products 353

Recognize Key Product Selection Criteria 354

Find a Niche 354

Sell What You Know and Love 355

Do Your Own Thing 355

Don’t Expect Seasonal Products to Sell Year-Round 356

Decide Whether to Pursue Best Sellers 357

Capitalize on Low Competition 357

Focus on Products That Sell for More than 20 Bucks 358

Check Competitors’ Reviews 359

Reduce Returns 359

Avoid Legal Issues 360

Index 361

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