7 Steps To Activate Your Amazon Seller Central Account in 2021

09 - 7 Steps To Activate Your Amazon Seller Central Account in 2021

Want to start selling on Amazon? Here are the 7 steps needed to activate your new Amazon Seller Central Account in 2021! Start your Amazon Business Now!

So you’ve heard all about the exciting world of successful Amazon Sellers and now you want to try it out for yourself. Building an Amazon business requires a strong foundation. Once you set the foundation and learn a bit about product sourcing, what products to sell on Amazon, and how to keep inventory, your business will begin to flourish.

But first, you need to set up a free Amazon seller account. Starting an Amazon Business is easy, fun, and an exciting experience but can be challenging if you do not know what to expect. Use this guide as a paved road to help you start your own Amazon seller account.

Step 1: Amazon Sign-up

The first thing you need to do is register a seller account on Amazon. To begin, visit the Amazon Seller Central page. You’ll notice a giant yellow “Sign Up” button. Below the button, Amazon states a monthly cost based on your account type. There will be two options. An individual plan which costs .99 per unit sold or a professional plan that costs $39.99 per month plus Amazon seller fees. This is where you will need to decide how much you want to commit to Amazon FBA.

There are pros and cons of each account if you are starting a new Amazon account. If you want to start at a smaller stage, the individual plan will provide more safety. New Amazon sellers have the opportunity to start small; have a smaller inventory and a smaller catalog. If you want to start as a beginner, the individual plan will empower you to build your business as you gain more experience over time. Because this account type charges fees based on the number of items you sell, if you have no or low sales, the cost will be dramatically lower than the professional plan.

If you’re ready to start big and expect to be selling more than 40 items a month, your best bet is to purchase the professional plan. This plan removes the per unit sold fee and replaces it with a flat seller fee ($39.99 per month). If you sell more than 40 items a month, it would be cheaper than the individual plan cost of $0.99 fee per unit sold. FBA sellers that purchase large quantities of stock and expect high sales would be best suited for the professional plan.

Step 2: Breaking Down Amazon Seller Fees

As with any business, it is hard to escape the world of fees and taxes! Amazon is no different. Amazon charges several fees for your business venture.

Amazon Referral Fees

Amazon referral fees are fees that Amazon charges your business every time you sell a product. Most referral fees are between 8% to 15% but can range greatly based on the product category. For items like computers, the fees may be a little as 6%. For other categories such as Amazon device accessories, these fees can inflate upwards of 40%. Referral fees are crucial when deciding what products you want to sell and how they can impact your profitability.

Fulfillment By Amazon (FBA) Fees

Next, Amazon may charge a fulfillment fee. The Amazon merchant fulfillment fees are the fees that Amazon charges your business if you use Fulfillment by Amazon (FBA) to ship your orders. As stated by Amazon, FBA fees change every year depending on the costs for Amazon to ship, transport and deliver your products. Therefore it will be vital for sellers of all sizes to determine how the cost will impact their business model. These fees will change based on product category, product size/weight, and additional category guidelines. To learn more about FBA fees and how they will impact your profitability, head to Amazon Seller Central Support.

Extra Fees to Think About

There may be other costs associated with your business such as inventory storage fees or promotional fees (when you use an Amazon sale mechanism like “Lightning Deals”). As a general rule of thumb, sellers want to avoid long storage fees, so you’ll want to maintain inventory so it is constantly moving instead of staying stagnant in storage.

Each business will range based on their business model, what products they sell, and how they fulfill their orders. Research is crucial when starting a new Amazon business, so make sure you do your due diligence before you consider it in Amazon FBA!

Step 3: Completing Your Amazon Account on Seller Central

Once you click “Sign Up” you will go through the Amazon seller account registration process. Here you’ll want to create a new Amazon account for your business. As a reminder, all sellers should keep your personal shopping Amazon account separate from your business account to maintain organization and clarity. You will enter your email, password, and then be asked to verify Amazon seller account through your email.

Once verified, you will need your business name and address, which might be your home address if you’re operating your Amazon Seller Business from your home.

Finally, you will need to enter a phone number and verify that number via text message. You will be given a code via text that you will need to enter. Once these steps are completed, you should be able to access your account through the Seller Central login.

Step 4: What is Amazon Marketplace and How to Select Your Online Marketplace

After you register your account, Amazon will allow you to pick your regional marketplace. Amazon Marketplace is different from Amazon. While Amazon is the e-commerce platform as a whole, Amazon Marketplace is the actual online shopping network where Amazon third-party sellers like you can sell your products. This step gives you the option to choose what marketplace you want to sell on before you opt for Amazon seller registration.

Remember that each region has a different culture, perspective, and needs. Some items might overperform in one region over another. Amazon also charges fees differently based on the region. You could pay an extra fee to hit Japan and other global marketplaces and test your luck, but we recommend just selecting North America or whatever region you are living in and moving to the next step.

Step 5: Enter Your Financial Information

The next step is all about the financials. You may be thinking, why is Amazon asking for a credit card? You will need to enter your credit card information to begin your account. If you choose the professional plan, you will be charged $39.99 a month. The plan fee will hit your account right away, so make sure that you are ready to sell when you make your Amazon account. Once you start making sales over $40 a month, Amazon will take the monthly fee out of your profits instead of charging your card.

After inputting your financial information, you will enter your billing address and bank account information (bank name, account number, routing number). This allows Amazon to direct deposit your profits into your bank account every two weeks.

Step 6: Choose An Amazon Store Name and Building Your Personal brand

After inputting your financial information, the next step is picking your account and business brand name. What’s in a name? While you may think your name plays a huge part in your profitability, no one really pays attention to your store name. Amazon allows sellers to change this as often as they like, so don’t put too much time and resources trying to pick the perfect name. Specifically, if you are planning on selling brand name products, the store name will not impact your sales greatly. The brand names on the products you sell will go way farther than your store name!

Once completed, Amazon will ask you two questions. 1) Do you have universal product codes (UPCs) for all of your products? Click yes. 2) Are you the manufacturer, or brand owner, agent, or representative for the brand? You can click whichever ones if they apply to you, but if you are planning on reselling items on Amazon, choose “no.” If you are not sure what type of seller you want to be, check out our article on A Beginner’s Guide to Selling Whole Products on Amazon.

Step 7: Amazon Verification and Become An Amazon Seller

To prevent Amazon Sellers from running multiple businesses under the same account, there will be an Amazon account verification process that will ask you additional questions to verify your identity. This includes providing documents required to open Amazon seller accounts. You can choose to upload your passport information or driver’s license information. Once you provide these documents and click “submit,” you should receive confirmation within 24-48 hours. For safety, be consistent with all of your addresses and information. Keep everything as simple as possible!

Start Selling on Amazon Today!

Congratulations on making your new Amazon Seller Account! But, the job is not done! Get to work and start your Amazon selling adventure now!

Have questions or concerns about where to go next?

Read our past blogs on Profit Calculator: How to Estimate Amazon Product Margin or Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers!

A Guide to Product Analysis: The Secret to Amazon Wholesale and Product Sourcing

08 - A Guide to Product Analysis The Secret to Amazon Wholesale and Product Sourcing
A Guide to Product Analysis: The Secret to Amazon Wholesale and Product Sourcing

Your Amazon Seller Central account is set up. You’ve established a separate bank account for your Amazon Business. You have decided the wholesale route is the business route for you. You’ve completed the mandatory and legal business tasks including acquiring your resellers permit. In this article, you will learn about product research 101, reverse sourcing wholesale, the fundamentals of the Amazon Buy Box, and how to scope out your competition.

First, you need to learn the fundamental methods of product analysis. When identifying potential products to add to your catalog, you need to ask yourself a series of questions. What makes a product have good sales performance? How can you know when a product is going to be profitable? Amazon selling should not be a guessing game. You certainly don’t want to blindly pick products and “hope” you get a return on investment (ROI). Fortunately, there are some seller tools and tactics that you can deploy to find the best, proven products out there and unlock profits.

Become the Ultimate Amazon FBA Seller with Reverse Sourcing Wholesale

First things first, you need to figure out which products have the most successful stories on Amazon. What does that mean? Well, you want to find branded products that are in high demand, are selling quickly, and have excellent product ratings. The key here is “branded products.” Brand name products provide their own marketing. Strong brands have established core values, customer bases, and name recognition. By utilizing brand name products, sellers have a higher chance of selling more products and increasing sales. Once you determine what products are doing well, move onto the next step which is to contact the brand owner of that product directly to set up a wholesale account so you can buy bulk products, build your inventory, and resell on Amazon.

A product with a good story is one that:

  • Sells hundreds or thousands of times each month
  • Has high product reviews (4 stars or more)

This is called reverse sourcing wholesale. Instead of creating a product, bringing it to market (or finding a distributor), and hoping it will sell, you’re finding an already successful existing product. Then you take that product, stock up on the same product, and resell the products individually (with the brand owner/manufacturer’s blessing). Reverse sourcing can be extremely helpful to small-time Amazon sellers to build their business and reputation over time. Small sellers can start with a small inventory and continue to build their catalog until they become a titan of Amazon selling.

As an Amazon wholesale seller, you’re volunteering to be a distributor for the product. That saves the brand owner time (and money). The more you can establish a strong buy/sell relationship with reputable brand owners, the more likely they will sell their products to you in bulk for your Amazon reseller business. And, if you continue to have a proven track record of good sales, the brand owner may even make you their exclusive or limited exclusive reseller! If you would like to learn more about wholesale sourcing and tracking stock from wholesale suppliers, check out our last article on “Super Tracking: Develop Your Own Superpower to Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers.”

Remember, business is all about relationships, so it’s vital to show your value proposition and build these relationships.

The Amazon Buy Box Unleashed

What is buy box and why does everyone want to win it? When consumers are browsing for products on Amazon, there is a section, add to cart, on the right side of their page that allows customers to place products directly into their shopping cart. If there is more than one seller in the product listing, who will take the market share and win the sales?

Amazon created a merit-based rotation system known as Buy Box. To “win” the Buy Box means the product you are reselling shows you like the default seller in the “add to cart” section, thus prominently placing it for consumers to see it right away and most likely purchase due to convenience.

This is what we call the Buy Box. To “win” the Buy Box means the product you are reselling appears in the Buy Box, thus prominently placing it for consumers to see right away and most likely purchase due to convenience. This is why all Amazon sellers should create an Amazon buy box strategy to try to climb the rankings. It is kind of like when you create a webpage and have all the right performance metrics and keywords for your page. Google’s algorithm bots pick up on your high performing website and when people search for things relevant to you, your page comes up in the top three search results or ranks on the search engine results page (SERP). The higher you rank, the more traffic and traction you are to get in sales.

The Buy Box is a great product research tool and a great place to start for product analysis. There you can see who the competition is for specific products. You can get a sense of seller feedback and buy box rate estimations for in-demand products. Sellers can in turn use this information as a growth estimation and to determine what products you may want to pursue to resell.

Scoping Out Amazon Top Sellers with Rank Tracking Tools

It is okay if there are 5,000 sellers for the same product. But, if there are about 50 competitive Buy Box sellers for that same product, it is an entirely different story. Determining which existing sellers are competitive will change the way you analyze products on Amazon. Once you’ve identified your competition, it is time to return to your personal business goals.

You can also use intelligent software solutions that allow you to track your products and your competitors to gain a profitable edge in the e-commerce marketplace. This should include Amazon market research software, product sourcing tools, and an inventory management system. One tool sellers can use for product analysis is Sellgo’s Profit Finder. The Profit Finder tool will enable new and experienced Amazon wholesalers to super filter winning products with key performance indicators (KPIs) including profit margins, ROIs, and more. After finding proven products with high sales potential, go back to the Buy Box and see how competitive the sellers are. Sellgo also offers the Product Tracker tool provides inventory insight so you know what items to resupply or drop products that are not selling. By using effective FBA tools and strategies to conduct product analysis, sellers can obtain valuable advantages that will help win buy boxes and create profit funnels.

Building Your Amazon Inventory and the Cost of Production

How much money are you willing to spend on your Amazon Business? Your limit will help you determine which kinds of products you should purchase and the quantity of inventory to purchase from the supplier. One aspect to note is that all wholesale manufacturers will be different and offer different price points depending on the quantity of your purchase. This is known as the product cost or the cost of production.

Be sure to factor in the cost of processing each unit so you can include that in your product pricing to ensure a return on investment. Some suppliers will factor in a Minimum Advertised Price Policy (MAP) or a Minimum Order Quantity (MOQ). If you don’t have the capacity or resources to buy the minimum amount from the supplier, this will greatly impact which manufacturers will be willing to source their product and the price per unit.

If you’re wondering how much inventory you should purchase when first starting out, we recommend at least 24-26 days worth of inventory. With that guideline, you’ll need to determine how much money you want to spend on your products from the brand owners. Note that it is perfectly fine and secure to start off with a smaller Amazon inventory and grow it over time. The best part about owning your own Amazon wholesale business is that you’re the boss! Take your time to make well-informed, conscious decisions. We discuss inventory management in more detail in our article on “A Beginner’s Guide to Selling Wholesale Products on Amazon: How to find “Winning Products”?”

Assemble Your Tools and Become an Amazon Business Seller

Remember, every reseller journey is going to be different for everyone. There are some electrifying practices you can emulate in your business strategy for the best results, but at the end of the day, it is up to you to choose the products that best fit your financial goals. The best Amazon third-party sellers take advantage of every tool in their arsenal and use them effectively. You can too. Check out Sellgo to start building your toolkit.

Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers

07 - Super Tracking Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers

One of the biggest challenges in starting an Amazon business is building relationships with wholesale suppliers and searching for high-profit products to sell online. Super tracking can be the ultimate superpower to expediting this process and unlocking your profitability quickly and efficiently. Super tracking involves looking for other sellers that have the same product range as you and scouting out their inventories. Other competitors provide quality leads to finding profitable products that you can use to broaden your catalogue. As you become more successful at tracking competition and scouting products, wholesale manufacturers will see your potential and be willing to supply more products for you to sell. By establishing your business and reputation, you will see higher acceptance rates from brand owners and suppliers as they come flocking to your doorstep hoping to partner up.

Super tracking consists of three major steps: identifying Amazon third-party sellers, optimizing product research to track popular products to sell online, and using Amazon product lists to find new wholesale suppliers.

Amazon Seller Search: How to Find Best Sellers On Amazon

The first step is finding the right competition to super track. There are millions of merchants across Amazon’s global marketplace. As an individual user, super tracking is not about finding the best sellers, but focusing on the right size sellers. Look for other Amazon third-party competitors that are not too small or not too big.

Small sellers are often “arbitrage” resellers with low inventories. As a result, tracking small sellers will not be beneficial to finding new products to increase your own catalogue.

On the other end, large merchants may sell mass-market products or private labels and which may not be the most profitable and can have a short lifespan on Amazon. Larger sellers often have the resources run on thinner margins, which is not affordable for medium-size or small-size Amazon sellers.

You’re searching for the “middle man”, the successful Amazon sellers that don’t sell too much or too little products and have a catalog within your reach. These proven merchants are the best sellers for your size and are worth super tracking. For more information on the different types of sellers and which category may be right for you, check out our “Beginner’s Guide to Selling Wholesale Products on Amazon.”

Amazon Seller Feedback: Using Seller Feedback and Reviews to Scout Competition

After you limit your scope to the right size sellers, you are left with hundreds of thousands of sellers you can start tracking. But how do you differentiate among the middle-sized sellers? A useful metric to finding the right FBA sellers is seller feedback. Seller feedback includes reviews from various buyers in the past 30 days, 90 days, and so on. For a quick analysis, utilizing reviews from the last 30 days is more than enough to see a competitor’s tracking potential. A seller who has between 200 to 800 different feedbacks is most likely another genuine third party seller using the wholesale model and is the ideal seller to track.

Next, you want to investigate each of these seller’s Amazon listings. Pay close attention to their product descriptions, images and most importantly, keywords. Take a look at the product reviews to determine what customers like and don’t like about the product. You could even go as far as to order a product if it is in your price range and ask the seller questions regarding the product.

Product Tracker: Best Selling Products on Amazon

Before you can start super tracking products to sell, you have to look through the thousands of products on Amazon to find the most profitable products to sell online. Some sellers may have as little as a dozen products while other sellers may have hundreds to thousands. To find the best products from each seller’s catalogue, you have to manually calculate important key performance indicators (KPIs) such as the profit margin and return on investment (ROI) of each product and see which ones are the most profitable. As we always say, not every product is a winning product. Even some of the “best selling products” may have low-profit margins or potentially negative profit, so sellers need to do product research before they invest in any product. If you need tips on how to manually calculate a product’s KPIs, please read our last blog on “Profit Calculator: How to Estimate Amazon Product Margin.”

An alternative to manual calculations is utilizing convenient seller tools:

Amazon’s Revenue Calculator

The first tool is Amazon’s Revenue Calculator. Located in Amazon’s Seller Central, the revenue calculator allows sellers to input a product and calculate the product costs along with any variable cost such as shipping and seller’s fees. Please note that prices and KPIs change constantly, so this tool provides rough estimates, not exact figures. As a result, you should use this tool for big picture analysis.

Sellgo’s Product Tracker and Profit Finder

Some other valuable tools are Sellgo’s Product Tracker and Profit Finder tools.

The Product Tracker uses product scouting to find individual winning products that sellers can use to widen their catalogues. In addition, sellers can analyze trending products, Buybox Rate Estimation, revenue estimation, daily sales tracker, inventory insight and more.

Alongside the Product, Tracker is the Amazon Profit Finder tool. The Profit Finder works hand-in-hand with the Product Tracker provides Amazon filtering of all the products and instantly provides KPIs such as variation analysis of selling prices, profit margins, and return on investments to identify winning products.

Both of these tools provide instant super tracking powers for you to accelerate the product research process. As you continue to super track more products, you may see your sales results and acceptance rates from wholesale suppliers skyrocket.

Wholesale Manufacturers: Tracking the Best Wholesale Suppliers

The final step in super tracking is tracking the best wholesale suppliers to stock up your inventory. This relationship with suppliers is the most vital relationship because it is how to source your products that will ultimately determine if your business is profitable or not. Suppliers are very picky with their partners, so be sure to convey your unique value proposition when trying to agree on a sourcing deal.

If you can get product sourcing from a wholesale manufacturer, you may get access to all of their product lines that you can potentially add to your catalogue. But remember, not all products are winning products. To determine the best products from the product lists to sell, you must perform manual calculations or utilize FBA tools to calculate the appropriate KPIs. One option is to data export the product list to Sellgo’s Search Management tool.

The Search Management tool makes wholesale sourcing convenient and transparent through supplier analytics. This tool will categorize all of the products from a supplier and then sort them based on KPIs, similarly to the Product Tracker but for individual suppliers. By organizing this data, seller’s gain a profit funnel of products that they can super track and add to their catalogues. Wholesalers can use this software to find products to sell on Amazon, identify brand name wholesale suppliers, and organize Amazon product lists.

Optimize with the Best FBA Tools:

Finding the right products to sell may seem like a difficult process but it doesn’t have to be. A lot of the challenges of starting your Amazon business can be minimized by using super tracking and resourceful FBA tools. Unlock your super tracking powers by using Sellgo and be a seller on Amazon today.

A Beginner’s Guide to Selling Wholesale Products on Amazon: Find “Winning Products”?

05 - A Beginners Guide to Selling Wholesale Products on Amazon Find Winning Products

Want to sell on Amazon but not sure where to start? Check out this guide on everything you need to know before you start selling!

While many industries have suffered the impacts of COVID-19, one industry that has not slowed down is e-commerce and its industry champion, Amazon. Amazon has continued to grow and dominate the e-commerce industry despite the economic impacts of the pandemic. In 2020 alone, Amazon registered over 32,436 new sellers joining Amazon marketplaces, along with their 2.3 million active sellers and 9.4 million total sellers worldwide. On Primeday 2020, Amazon third-party sellers had over $3.5 billion in sales, a 60% increase from 2019. Many are turning to sell on Amazon as an alternative income and opportunity to enter the e-commerce space. This guide will provide you with tips for finding products to sell on Amazon and starting your own Amazon wholesale business.

Before getting into Amazon wholesale, it’s important to understand the four types of sellers on Amazon:

Dropshipping

Dropshipping is the first type of Amazon seller and is typically straightforward. Dropship sellers serve as a “middle-man” between consumers and suppliers. A customer will put in an order for a product on Amazon and will pay the dropship seller, who will then take the funds, put in an order, and provide the customer’s information to the supplier or manufacturer who will then ship and complete the transaction. The most fundamental part of this process is that Amazon dropshipping does not require the seller to handle or store inventory.

Arbitrage

Arbitrage is the second seller type and entails the process of buying individual items from one business at a discounted price and then reselling the item on Amazon for a profit. Amazon arbitrage can take place in traditional brick-and-mortar stores (retail arbitrage) or on the internet (online arbitrage). This process is extremely fast, taking as little as a week to turn over a product.

While Arbitrage may seem simple, it requires extensive manual product research for sellers to find the right discounted items to stock and sell. After research, arbitrage sellers have to source from retail stores and websites. Consequently, arbitrage selling is extremely manual, requiring sellers to constantly look for new items to resell.

Private Label

Private label selling is the high-risk, high-reward method of selling on Amazon, which requires sellers to buy large quantities of a product from a manufacturer, rebrand the stock as their own private label products, and resell it for a profit on Amazon. This is often done by building relationships with manufacturers, signing production contracts, and shipping the items to the seller who will then hold the inventory and mark up the price to be sold.

Similar to arbitrage, private label selling requires extensive manual product research to find the right product and manufacturer. Most private label sellers buy large quantities from international manufacturers and marketplaces like Alibaba. Unfortunately, this often leads to longer shipping periods and can take up to 3 to 4 months to launch a single product. If not enough research is done, private label sellers risk losing 100% of their investments if they choose the wrong product.

Logistically, private label selling can also be the most challenging and intensive to pursue. Private label selling requires sellers to abide by international and domestic regulations when purchasing merchandise overseas. This includes shipping costs, risk management, and cross-border transactions. Global Trade Management (GTM) provides sellers with tools to oversee the legal, regulatory, and business logistics that come with private label selling.

Wholesale

The last type of seller is through Amazon wholesale. Similarly to private label sellers, selling wholesale requires sellers to contact and establish relationships with manufacturers, purchase large quantities of a product, hold inventory, and resell it for a higher price on Amazon. Compared to the other forms of sellers, wholesale provides logistical and marketing advantages.

For starters, wholesale gives sellers more autonomy to control and manage their inventories compared to dropshipping. Wholesale sellers are no longer middle-men but the businesses fulfilling the orders themselves.

While arbitrage gives sellers a lot of autonomy, they are often limited or capped at their sales. This is due to the fact that they have to purchase individuals items from retailers instead of buying bulk supplies from a manufacturer. As a result, arbitrage sellers tend to have less inventory and cap out once that inventory is sold.

Although wholesale and private label sellers are similar, wholesale sellers have one huge advantage. Unlike private labels, Amazon wholesale businesses take advantage of purchasing established-name brand items instead of rebranding to a private label. As a result, wholesalers do not have to market their own brand and can utilize an established brands’ reputation to market to consumers. Wholesalers can source from U.S. based brands and distributors with proven products. This can shorten the launch period from 3 to 4 months from private labels to 2 to 3 weeks for wholesale.

Product Research: Using Data to Find “Winning Products

Now that you have a better understanding of the types of sellers, the next question is, how do sellers know what items to sell? Amazon is one of the world’s largest online marketplace. According to Big Commerce, Amazon sells more than 12 million products and more than 350 million products across all marketplace and sellers. How do individual sellers find products to sell on Amazon? Should sellers target the “best selling products on Amazon” or should they try to find “niche products” for unmet demands? This is where product research becomes essential for Amazon sellers.

Amazon product research and product research tools allow sellers to delegate product research to a virtual assistant. By using these tools, they will sort through the millions of items sold on Amazon and determine what are “winning products.” Winning products are not always the “top-selling products” or the most “niche products.” Winning products are the items that are the most profitable products to sell online or that carry a ton of potential. Profitable products can include categories that you might not even think of, so it’s vital to utilize product finder apps and product databases that can help optimize profit.

If you are unsure of where to start and which tools to use, you can use check out Sellgo’s Profit Finder and Chrome Extension. The Profit Finder will scan, sort, and categorize all the items sold by a multitude of manufacturers and rank the profit, margin, and return on investment (ROI) potential. In doing so, sellers can immediately determine winning products to invest in. On top of identifying profitable products, sellers can then track the potential of other products, historical sales data, and inventory trends.

Product Sourcing: How and Where to Find Wholesale Products

The next challenge after identifying winning products is where to buy products and where to source products. To buy wholesale merchandise, sellers must contact manufacturers and begin building relationships and rapport. The Product Tracker is a great tool to identify manufacturers. Next to every product categorized, manufacturers will be listed under Source. Once you find a winning product and identify the manufacturer, all you need to do is find their contact information and try to work out a contract.

Manufacturers do not sell to anyone. Manufacturers want sellers who know the product, know how to sell, and can produce results! Remember that wholesale sellers are not just selling but building a business and relationships. By providing your own value proposition, manufacturers and suppliers are more likely to trust and value your relationship. Sellers also have the autonomy to choose which manufacturers they would like to work with. Whether it be international or domestic suppliers, wholesale sellers can pick the manufacturer that best aligns with their best interests.

Bulk Products: What is the product cost?

Here are some key terms to note when contacting manufacturers:

What is the Minimum Advertised Price (MAP) Policy?

MAP policies are a price minimum that is set by suppliers that wholesalers must abide by. These price points are usually agreed upon by both parties and will have huge implications on profit margins and return on investments.

Is there a Minimum Order Quantity (MOQ)?

MOQs refers to the minimum number of units the seller must buy for the manufacturer to agree to supply. Manufacturers very rarely sell items individually and more often than not require sellers to buy items in bulk. Higher quantities may lead to lower product cost per unit. The MOQ can also greatly impact inventory numbers, selling prices, profit margins, and more.

Start Your Own Amazon Wholesale Business!

Amazon wholesale provides new and experienced sellers with the opportunity to build and develop a business in the e-commerce space. While there are various methods of selling, wholesale provides the perfect mix of autonomy, marketability, and profitability.

If you would like to start earning with Amazon wholesale, check out Sellgo’s tools to find products to sell and start your Amazon wholesale business.

Attention Amazon Sellers: Are You Ready for Amazon Prime Day 2020?

02 - Attention Amazon Sellers Are You Ready for Amazon Prime Day 2020

Are you ready for Amazon Prime Day 2020? Prime Day is one of the biggest days for Amazon Sellers, read these tips to prepare!

Attention Amazon Sellers: Are You Ready for Amazon Prime Day 2020?

The COVID-19 pandemic has delayed, canceled, and complicated many facets of life, and retail shopping is no exception. Traditionally held in July, Amazon Prime Day is one of the most highly anticipated online shopping events of the year. Finally, after numerous pandemic-related delays, Amazon announced its 2020 Prime Day will take place on October 13-14, just two months before the holiday shopping season.

Amazon’s signature event is a win-win for consumers and sellers alike. According to the most recent data from the Bureau of Economic Analysis (BEA), personal income in the United States decreased 2.7 percent in August, while consumer spending increased 1.0 percent. Simply put, Americans are making less money but are increasing their spending.

Not only that, but consumers have been shopping more frequently on Amazon since the beginning of the COVID-19 pandemic for a variety of reasons:

  • A safe, contact-free shopping and delivery experience
  • Sales and discount prices on highly desired products for consumers trying to save money in tumultuous economic times
  • Limited availability of essential products (cleaning, sanitizing, paper products) in brick and mortar stores
  • Convenience

Amazon Prime is in its Prime

As of December 2019, 65 percent of Amazon online shopping users were also subscribers to the Amazon Prime service. During the same period, there were an estimated 112 million Amazon Prime members in the United States. Even though Amazon increased Prime Subscription prices from $99 to $119/year back in 2018, Emarketer.com forecasts Prime membership will grow 14.9% to 142.5 million US users in 2020, surpassing 50% of the US population for the first time.

The free and quick shipping, Prime video options, and product availability are all key drivers in consumers adopting an Amazon Prime membership. These benefits are especially important for consumers seeking a no-hassle shopping experience with quick delivery during a worldwide pandemic.

Amazon Sellers, Are You Ready?

Whether you are a seasoned seller, or this is your first Amazon Prime rodeo, there are a few things you can do to make sure you have the most profitable Amazon Prime Day yet. Even if you haven’t put a lot of effort into your Amazon Business for Prime Days in the past, you can be sure Amazon Prime Day 2020 is going to be a whole different seller experience, especially since it unofficially kicks off the holiday shopping season.

1. Search. First thing is first, you have to begin your product search. Upload your search files and determine which products are going to get you the most bang for your buck. You can also use a free Chrome Extension to scout and source products on Amazon and export a handy list of products broken down by list price, retail price, seller feedback, and more.

2. Find. Time is money. Especially with Amazon Prime Day 2020 right around the corner. A lightning fast Profit Finder for Sellers can tap into bulk analysis to match products with those in the Amazon catalog, finding golden products instantly. After all, it is hard to make bad wholesale product decisions when you have the most up-to-date data on your side.

3. Track. Every product has a story and a Product Profit Tracker helps you avoid products with bad stories. Monitor product trends and track Amazon buy box price, sales rank, and profit all in one place, keeping you a few steps ahead of the competition. This will guarantee the best ROI for your Amazon Business on Amazon Prime Day 2020.

4. Sell. You’ve searched, researched, tracked, and purchased your ideal products. Now it is time to sell. As a product in the online retail showcase, it is important to note that appearance matter. You will want to make your product listing as attractive as possible to bring consumers to your product. Make sure your listings are up to date. Low prices alone will not do the trick, you need to optimize your listings for best results.

What About Those Prime Day Lightning Deals?

Lightning deals are products that are sold as a discounted price for a specific period of time. These products are limited in quantity and offer a “you-don’t-want-to-miss-this” feel to the Amazon buying experience. The lightning deal model makes Amazon shopping feel competitive to the consumer. However, all third-party sellers must submit an application to become Amazon Deal eligible.

Putting it All Together

By harnessing the power of Amazon Wholesale Software made by and for Amazon Sellers, you can turn Amazon Prime Day 2020 into a profit-boosting success for your Amazon Business. With this, a tiny bit of optimization on your product listings, and a positive attitude, you can hustle smarter, giving you more time to do what you love and more money in your pocket.