Today, more than half of all Amazon sales come from third-party sellers. Doing business on Amazon will have different execution options to choose from. Vendors selling to Amazon have avoided some logistical problems, but due to their limited range and ability to sell products. Amazon sells its own inventory and products from outside sellers in the marketplace. Amazon sales are calculated as a percentage of the total profit from the sale
Amazon offers many different ways for online retailers to sell, but choosing a process to sell on Amazon can be challenging.
Remember that Amazon account management requires a seller of time and knowledge. Amazon has special requirements for its Markets and requires a lot of time and knowledge to manage these operations.
What is an Amazon business platform?
The Amazon platform is one of the most popular marketing channels for online retailers. For products on Amazon’s top list, sellers need to create an account and submit product information to Amazon.
How can I business on Amazon?
Here are the main ways you can sell on Amazon and some terms to help you decide which is the best selling option for your online store.
Sell directly to Amazon
Amazon Direct Selling is an invite-only program. Selling products directly to Amazon grants Amazon ownership of Amazon warehouses, and these products will be sold to consumers on Amazon.
How it Works?
The seller or manufacturer sells inventory (such as hats) to Amazon at wholesale prices. Once these items are shipped to Amazon, the merchant completes the product. Amazon pays sellers directly for inventory and maintains ownership of products. Amazon sells these products on the marketplace (like Amazon) – price and delivery options.
What are the benefits of selling directly to Amazon?
- Selling direct to Amazon is an option for manufacturers, virtually eliminating direct sellers’ job, including marketing, advertising, and even pricing.
- Avoid the hassle of pricing, shipping and selling other logistics products. Bulk purchase and detail page functionality available only on Amazon
Store registration and sell on Amazon
A popular option to sell on Amazon is to sign up for a store and sell on Amazon. Today, more than half of all Amazon sales come from third-party sellers.
How does it work?
- Sellers list their product on the Amazon marketplace and sell the item as a third-party seller.
- Selling on Amazon is usually more work than selling directly to Amazon, but it also has a higher degree of control and profitability. In-store sellers control shipping, pricing, and option execution themselves.
- Amazon sellers have different fulfillment options to choose from. Merchants can choose whether they want to handle the rollout, or have Amazon sort, package, and ship products through their own fulfillment centers.
As a third-party seller selling on the Amazon marketplace, you can choose to use Amazon’s own services:
- Made by Amazon (FBA) – sellers use Amazon products sold on the Amazon Marketplace to achieve sales or use their own products (FBM) to process product fulfillment Sold on Amazon Marketplace
- Amazon will sell the stores on Amazon to the seller according to the procedure the seller chooses to sell, for at what price.
The benefits of selling on Amazon
- Increase Visibility – Use millions of visitors each month to get more people visiting your online store.
- Take advantage of the Marketplace – Amazon’s Marketplace is a popular BUY point for reliability, online shopping and convenience of choice. The market listing of repairers.
- Seeking new customers – The Amazon market is huge. Sellers Reach new and different buyers through the Marketplace, many of whom will not meet your online store.
- Increase Sales – Amazon Buyers Enter a Market with a clear BUY goal or at least Search for a specific product. Online search, advertising, and other forms of display online don’t reach the end of the funnel for an audience. The obvious point is that Amazon is more likely to buy.
Should I use the FBA service made by Amazon?
- There are millions of third-party sellers on the global Amazon market, accounting for over 50% of Amazon’s total revenue.
- If you sell on Amazon or want to sell on Amazon as a third-party seller, one of the first decisions you need to make is whether to use Amazon Full Payment (FBA) or do it internally (or through information). Via information). Through service).
- Using FBA can have a significant effect on your sales performance and performance, but FBA might not be a good choice for your online store.
What is Fulfillment by Amazon (FBA)?
Amazon’s fulfillment is commonly referred to by Amazon as the Amazon Execution (FBA) in which the seller chooses to allocate the seller’s product.
Amazon sells its own inventory and products from outside sellers in the marketplace. When buying a product from a third-party seller on Amazon, the product is shipped depending on the shipping method selected by the retailer.
Those who persevere in the FBA opt-in will complete the packaging, sorting, and shipping to Amazon. Amazon has more than 80 fulfillment centers in the United States, providing fulfillment services to themselves and to third-party sellers.
Note: The FBA is an exercise option for the seller to select any or all of the products. Sellers choose to use the FBA to choose product quantities (if any) based on margins, product categories, and associated seller variables.
Why should I use Amazon FBA?
For sellers looking to increase transit times and reduce the time and money allocation, Amazon shipping is a good choice.
Other FBA benefits for Amazon sellers include:
- Business process reduction – FBA helps sellers take responsibility for shipping. Instead, to deal with inventory and packaging (shipping, picking) and associated costs, retailers can delegate these tasks to Amazon.
- Amazon Prime: Amazon Prime customers buy more and more often than traditional Amazon shoppers.
- Using FBA can improve product discovery, as FBA products have Key Transfer function and can be used to search for Prime filters. Top users and buyers increase seasonally and can increase during holidays. In Q4 of last year, more than 1 million people signed up for Amazon Prime (Amazon Prime) within a week. Conversions are more likely to appear on high-quality qualifying detail pages, which can increase product sales you sell with FBA.
- Customer service and returns: Amazon processes customer service and returns items with FBA orders, a surcharge for sellers who are not customer service specialists.
- Shipping Speed: For online shoppers, FBA means faster shipping, Amazon Prime qualified shipping, and 24/7 Amazon-powered delivery tracking, and customer service. FBA products are shipped from Amazon, so they can be processed faster than products shipped directly from retailers. Amazon insists on customer service, so shoppers can turn to helpful help.
- Buy Box Sharing: FBA key factors influence the Buy Box’s shared variables, including shipping costs and seller ratings. The FBA is a great way to increase your chances of having a baby to get products that are hard to reach for shipping or other Standard Purchase Box requirements.
- The Amazon brand: The FBA is Amazon perfection. Amazon has worked hard to create a convenience branding plan that focuses on online shopping and customer service. The FBA associates your store with your brand and brings this reputation to your store.
How much does the FBA cost?
Amazon sales are calculated as a percentage of the total profit from the sale. In addition to these fees, FBA also charges fees based on the following aspects:
- Handling and handling charges Packaging and storage fees (square feet)
- To some sellers, the FBA may seem like an expensive option, but keep in mind that the FBA covers all execution costs (including storage and shipping costs). Use Amazon’s revenue calculator to determine if your product is profitable through the FBA.
Consider the cost of the FBA
Amazon’s completion can affect the margins of individual products, which can limit margins. However, as total sales and visibility increase, FBA can be a good investment for your online store. For example, you could spend less overall on a particular product like a kettle, but you could sell more warmer overall for a greater overall profit.
Remember that you don’t necessarily have to use the FBA option for all products, so take the time to calculate which products are profitable through the FBA.
The FBA may not apply to your store, depending on competition around your products, the products you sell, where your business is located, margins, and other relevant variables.
FBA and Hybrid
- FBA products are sold by third-party merchants and need to be labeled and shipped to Amazon warehouses before Amazon can use the FBA to handle performance issues. Amazon offers two labeling options for the FBA, both of which carry variables that can affect your profits and time.
- FBA Marked Inventory- requires a separate label for each product that FBA sends to Amazon.
- FBA inventory without labels / blends – allows sellers to exclude FBA labels. Amazon will use product identifiers (such as UPCs) to group your products with the same mixed inventory.
- Mixed inventory requires less labeling work, but group your products with other sellers to speed shipping. Confusing issues can lead to damaged packaging and mixed fraud
- When choosing the method of FBA marking, please consider your options and products. Also, keep in mind that you may need to choose a labeling method for some products.
- Amazon’s Implementation is a convenient execution option that allows Amazon sellers to use Amazon resources to increase sales in the marketplace. Determine Amazon’s store budget, Amazon’s overall margins, and specific products, then decide to use Amazon’s delivery service.
Contact with Wahapy Vietnam’s consultants to help you produce on demand, create your own brand and export to Amazon warehouse quickly and conveniently