- Register as a professional seller – There are several reasons to do this:
- As an individual seller, Amazon charges you 15% Selling commission plus 99¢ per sale. The fee to become a professional seller is $39.95 per month, but as a pro seller you are only charged 15% –and not the extra 99¢. So, if you sell 40 items per month or more, you will actually save money on fees. (Unless you plan to make at least 40 sales per month -you should not be wasting your time selling on Amazon).
- As a professional seller, you are allowed to create listings for products that are not currently being sold on Amazon. You can also create product bundles, which we will show you how to do later, as they are a great way to increase your profits. (Creating your own listings will help you reach those 40 sales per month more quickly).
- Amazon has several categories that are restricted, and you must apply to sell in these (clothing, shoes, jewelry and auto accessories are just a few). You must be a pro seller to apply to sell in these categories.
- You can Manage inventory using feeds, spreadsheets, and reports
- You can take advantage of Promotions, gift services, and other special listing features
- Here is the most important one: Only professional sellers Eligible for listing placement in the Buy Box (Over 78% of all Amazon sales originate in the buy box)
2. Sell with FBA – FBA stands for Fulfillment By Amazon. This is a program whereby you send all of your merchandise into Amazon, and when it sells, Amazon ships it for you. In FBA Amazon also handles customer service, communications and returns and refunds.
Since we moved from merchant fulfilled to FBA, our sales have increased by a factor of 5X. It is true that fees in FBA are higher than merchant fulfilled, but your merchandise will sell so much faster, that you will still make greater profits. And some of those fees are offset by the cost of boxes and shipping materials that Amazon supplies as part of the fee.
In addition, consider the huge time-saving factor of not having to individually wrap and ship 20 to 30 packages a day. This allows you more time to do high-value tasks such as product research and sourcing.