Amazon is an e-commerce website where various digital and physical products such as books, housewares, movies, toys, etc.
Amazon acts as a mediator separating the seller and the consumer. It also provides other categories of web services, such as renting data storage and cloud computing. The platform accommodates numerous customers providing the retail of digital and physical products to buyers.
According to statistics in 2012, traffic generated on Amazon represented 1% of the total internet traffic in North America.
The Amazon company has also developed to include ebook retailing services to readers and writers who want better access to digital resources. Kindle was introduced to help buyers purchase books and grant them the liberty of reading on the app.
This was a massive addition to the Amazon services provided, as most of the traffic generated came from ebook sales. Amazon gives you access to a sound search engine where you can order several products. When you hear the name Amazon, the first thing that comes to mind is Online purchase.
Many entrepreneurs are more interested in getting their products recognized on Amazon than on google. This shift has been caused by the massive influx of customers who search for several products on the platform. In 2016, 43% of online retail sales made in The United States were made on Amazon. Analysts predict that this percentage would rise to 50% in 2021.
Every day, the Amazon marketplace receives thousands of orders and purchases. The surging traffic is great for many businesses and products. All you need to do is have your business established on Amazon, irrespective of the country you reside in.
Amazon offers international transactions with opportunities that can be maximized to provide more sales. International transactions on Amazon are better secured from economic fluctuations and expensive exchange charges.
Getting Started
Establishing your business on Amazon Business is very easy and quick. The first step is by registering on the platform and listing the products to be made available to customers.
It would be best if you endeavored to watch out for some of the default options logged into your account once you register.
To prepare yourself and have a better grip on the entire process, you should go through the terms and policy statement of Amazon. Here you will find most of the transacting conditions and the benefits that are attached.
The next step is to familiarize yourself with the listing format of Amazon and the type of products that receive more orders. No product is irrelevant on Amazon. You should, however, consider having products that fall under highly-rated categories. It would be best to carry out deep market research to know what products are the best selling. You would also discover the average selling rate of other sellers.
The price of your product should not be tagged at outrageous prices. Always stay within the price range set by other sellers. Going a bit above those ranges should be done when the seller believes the product worths more than what is proposed.
When you have all these sections settled, you are now ready to get your product and business registered. In registration, you need to have the following details: email address, business name, credit card, tac I.D., passport, and contact address.
To be on the safe side, you should have contingency plans for returned orders to avoid having a series of issues with client orders.
General Fees And Expenses
As a businessman, you need to understand that the Amazon platform comes with a percentage of charges for transactions. These fees are not new to market places as they are an integral part of business transactions.
The amounts charged are substantial fees depending on the type of business account created and the product being sold. An individual selling plan does not attract any monthly charge but will demand a 0.99 dollar deduction for every product sold.
On the professional selling plan, sellers charged 39.99 dollars every month and no extra charges for individual product sales. Each of the plants in plants is explicitly designed to fit the business account’s need to be created.
The referral fees were also charged depending on the product range from 6% to 20% of the product’s cost.
Products that fell under the media category and chucked a variable closing fee of $1.80 per sale. They have also added charges deducted on activities like taxes shipping returns acquisition of products. These expenses are varied according to the type and size of the product.
When you begin to lose sight of essential sales strategies and ignore transaction policies, you make substantial financial losses.
The competition on Amazon is relatively high due to the availability of different types of products. Sellers are put in the position of implementing better selling and ranking strategies.
Amazon FBA Business
Here are other options for sellers to use in creating the account on Amazon. FBA refers to fulfillment by Amazon and involves shipping of products in bulk quantities to Amazon warehouses and parks instead of shipping products directly to the individual buyer.
The advantage of this option is that when the products are shipped to the Amazon warehouse, Amazon does not charge any extra shipping cost for sending the products directly to the customer.
Fulfillment by Amazon is preferred because it allows sellers to carry out free shipping while allowing prime members to make sales at a higher success rate. If a non-prime customer orders a product, the FBA sellers are more likely to consider the deal.
The policy is built to favor FBA sellers over others. For displaying the effects of FBA sellers, Amazon charges $0.20. The only way to avoid this charge is to allow your product to be mixed randomly. This will reduce your chances of making sales.
Another disadvantage of allowing your products to be mixed is that when purchases are made and sent to another seller, you get the blame if the product turns out substandard or doesn’t like the product’s quality.
FBA is more suited for helping sellers gain global recognition and avoid challenges associated with localization taxes and international shipping.
Why Payoneer?
The final stage of setting up your business and product on Amazon is having a quick and effective way of receiving payments, and this is through Payoneer. Every typical e-commerce website makes provisions for financial service providers, which aids sellers in receiving payments from customers.
It is the most effective tool for accepting payments on Amazon. It grants the seller the ability to receive prices in several foreign currencies at low transaction charges.
Sellers in countries like the U.S., U.K., E.U., Japan, Canada, Australia, and Mexico are provided with credit and debit options to aid smooth transactions on Amazon.
Payoneer offers reliable customer care which attends to the needs of clients promptly.
The process of setting up your business on Amazon is very smooth as long as you keep the guidelines stated in this article.
Amazon is a huge e-commerce platform you shouldn’t ignore. It allows you to access several customers and make more sales. Irrespective of the competition, sellers can still receive steady alerts for product orders.
