Becoming a successful Amazon seller has increasingly become a dream for many. Whether you are thinking of starting a lucrative part time job or you want to become your own boss, selling in the Amazon marketplace provides a financially rewarding opportunity. Even with a small amount of money, you can maximize your success in the Amazon marketplace and attain financial freedom if you follow these steps.
How to Become a Successful Amazon Seller in 5 Simple Steps
Create an Amazon Seller Account
The very first thing you have to do is to setup an Amazon seller account. To open an account, you need to have a valid email address. You will then be asked to provide other essential information to proceed. These include business name and address, telephone number, credit card or bank details, tax information and product details.
If you are beginning as a sole proprietor, you don’t need a business entity – just enter your full name. It is important that you have all these information on-hand to make the process quick and easy.
Choose a Selling Plan
When setting up your account, Amazon offers two account types – to sell as an individual or as a professional. If you are just getting started, it would be wise to pick the former. The individual plan is perfect for anyone who wants to sell fewer than 40 items, who does not have a product yet or just want to try the platform. This plan does not also require a monthly fee but may ask you a flat rate of $0.99 per item sold.
On the other note, if you are planning to sell more than 40 items initially, you need to select the professional plan. While selling as a professional does not charge per item sold, it comes with a $39.99 monthly fee.
After choosing the right plan for you, add FBA to your seller account.
Get an EIN Number
An Employer Identification Number (EIN) is a unique nine digit code given to businesses operating in the US. The EIN serves as an identifier for tax purposes. If you are uncertain whether you need an EIN, consider the following questions below. According to IRS if you answer yes to any of them, you need an EIN.
- Do you have employees?
- Do you operate your business as a corporation or a partnership?
- Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
- Do you withhold taxes on income, other than wages, paid to a non-resident alien?
- Do you have a Keogh plan?
- Are you involved with any of the following types of organizations?
- Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers’ cooperatives
- Plan administrators
To register for an EIN number, you need to fill out the IRS SS-4 form and submit it to the IRS office whether via mail, fax, or email.
Find a Product to Sell
The best thing about selling on Amazon is you have limitless opportunities on the kind of products you want to sell. This does not mean however that you just choose whatever product that comes to mind and expect to profit from them.
When it comes to finding the best product, it is important to use product-finding tools and market analysis software. This way you can pick out products that meet your goals and requirements but will also make you money.
In terms of listing your products, go to the Inventory menu at your seller central account, and pick ‘add a listing’. Since Amazon monitors inventory in marked boxes, you have to create a new box for each individual box you send.
Order and Ship Your Product
To prepare your products for shipment to Amazon, head over to ‘work on shipment’ at your seller account. This enables you to create and print shipping labels for your boxes. Then, pick an Amazon’s partnered carrier to get a shipping discount. In most cases it is UPS.
As an Amazon FBA seller, it is integral that you get a solid grasp in the ins and outs of the marketplace. Equip with the right information, it becomes easier to work and start your Amazon journey and reach success. However, be reminded that there is still a plethora of information out there, you just have to put in the work to seek it out.