4 Important Tips for Selling Your Products on Amazon

Selling products on Amazon can be very lucrative. Amazon is one of the largest online marketplaces, and selling there will drastically increase your exposure and help you reach new customers all over the globe. In addition to that, Amazon automates much of the buying and selling process, which makes many aspects of selling items online easier. Selling on Amazon is a solid option for people looking to sell their old items or professional resellers running their own business. If you are interested in selling on Amazon, here are four important tips to keep in mind.

1. You Can Only Sell Certain Items

Amazon’s listing system is not as flexible as competitors such as eBay. Sellers are required to sell the exact product as it appears on Amazon’s listing page. Sellers do have the ability to list new items per Amazon’s policy, although the number of items you can list is limited until you are an established seller. Amazon has also implemented some additional restrictions for selling some types of items more recently. To fight back against bootleg items, sellers must meet special criteria in order to sell DVDs that are above a certain price point. Sellers must always remain up to date on Amazon’s policies and understand how those policies affect the seller’s business.

2. Practice Excellent Customer Service

You are essentially running a business, and need to provide excellent customer service to be successful. Selling through Amazon is beneficial because your sales are part of their automated system, which reduces the amount of contact with customers you are responsible for. However, occasionally an issue will come up and you will need to address it. For sellers on Amazon, your feedback score is very important. Not only will customers not want to buy from you if your score is low, but Amazon may take action and even close your account. You always want to be concerned with how pleased your customers are with your products and your service. Do everything in your power to fix problems that occur. That’s simply good business. That being said, do not tolerate abuse, especially for Amazon’s generous return policy, and report any abuse to Amazon.

3. Remember Taxes

If you are selling on Amazon as a business, you are required to pay tax on all revenue. Amazon fortunately collects the sales tax for you, which is a major benefit of selling products through them. However, you need to be careful when it comes to selling across different states and ensure you are planning to pay the correct amount of sales tax you owe. Whether or not you owe taxes largely depends on if you are running a serious resale business on Amazon or simply selling some of your old items. The upside to running a tax-paying business, of course, is that sellers can deduct business expenses from their taxes, which should lessen your tax burden a bit. You are also a self-employed individual and can enjoy the freedom that entails.

4. Estimate Shipping Properly

When you list an item, Amazon automatically builds in a shipping allowance to the purchase price. The buyer pays that amount for shipping on top of the item’s purchase price when they buy the item. The problem is that this shipping fee does not always cover the actual cost to ship the item. Amazon has set values depending on the item’s category but some items are heavy or require special shipping. Sellers should think ahead to how much it will cost to ship the item and then build any additional shipping costs into the price of the item itself. If you do not plan for this potential additional cost, you will lose money very quickly on sales.

In many ways, selling items through Amazon is easier than selling through their competitors. Much of the process is automated and taken care of for you. However, it does require some significant commitment, and you will need to learn how to navigate Amazon’s system. You must also stay up to date with any of Amazon’s relevant policies, which they change on a relatively regular basis. If you leverage the system correctly, you can run a very lucrative and successful business selling products on Amazon.

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