What else do you need to understand before you sell on Amazon?

9 Things You Need to Know Before Selling on Amazon | Volusion

The beautiful thing about selling on Amazon is that you can get started for free. However, there are expenses associated with buying your inventory before you sell it if you intend to use the private label business model (at a higher price). However, it might not cost as much as you might anticipate. In fact, although the average reported cost is $3,836, according to a Jungle Scout survey of 3500 Amazon sellers, 16% began their enterprises with less than $500. There will also be costs for your seller account, irrespective of the fulfillment option you choose. Additional seller registration on amazon fundamentals for selling on Amazon are provided below.

  • The Best Sellers List on Amazon (BSR)

Each product on Amazon is assigned a Best Sellers Rank (BSR), which serves as a ranking system. The higher the BSR, the more popular the product is (and the more sales it generates). Additionally, Amazon’s departments (also known as parent categories) and their sub-categories each have their own taxonomy of BSRs.

  • New Amazon merchants’ training

At Jungle Scout, we recognize how intimidating it may be to learn everything there is to know about selling on Amazon. We therefore have a large collection of free materials to aid you in ramping up more swiftly. Furthermore, if you currently subscribe to Jungle Scout, you have access to our members-only Academy. It offers video tutorials for both new and experienced sellers.

  • Using Amazon Prime to sell

Your goods will be eligible for Amazon Prime if you’re using Amazon’s FBA program and you have enough inventory to distribute throughout its fulfillment network. Selling Prime, which guarantees that your products will be delivered to buyers within two to three days, is essential for success on Amazon. Additionally, your listing will display the “Amazon Prime” logo, which increases the likelihood that your goods will sell. Customers appreciate quick shipping. However, you can still offer Prime as a Merchant Fulfilled Network seller if you’re selling FBM. But in order to accomplish that, you must enroll in Amazon’s Seller Fulfilled Prime program.

How much does Amazon charge?

Some of the Amazon fees that you could have to pay include the following:

  • Fees charged by Amazon as a commission for selling on its platform are known as referral fees. It varies depending on the category, but is often between 12 and 40%. A 15% referral fee is common for products.
  • Individual seller charge: In addition to the referral fee, this cost is a flat $0.99 added to each sale you make. Only those sellers who selected an individual seller account over a professional plan are required to pay this per-item cost.
  • FBA fees: If you participate in Amazon’s FBA program, you’ll be responsible for paying for Amazon’s shipping and handling expenses. For tiny things weighing no more than one pound, this often comes out to be around $3.00. As the things become heavier or larger, the fees increase.
  • Other Amazon fees: If you use Amazon FBA, you may also be charged long-term inventory storage fees, media fees (if you sell books, DVDs, etc.), and advertising expenses.

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