Nowadays it is easier to sell on the internet thanks to online sales sites like Amazon. All types of products can be sold on the web. But to be able to profit from it, it is necessary to be well informed on the operation of the site in question, in order to sell with peace of mind. You should also choose the most popular sites, so that the product is seen by as many potential customers as possible. We will see in this article how to make money on Amazon FBA.
Amazon FBA, how does it work?
Amazon FBA is an online sales site, offering its services as an intermediary between sellers and customers. Even an individual like me can therefore benefit from the services of Amazon FBA to sell my products. In return, Amazon charges me a percentage depending on the sale made. Despite a fairly high commission, Amazon is one of the most influential sites, which allows you to sell faster.
To make it easier for sellers, Amazon FBA takes care of the storage and delivery of products ordered by customers. To do this, Amazon has several logistics centers located throughout France and in several European countries. To sell on Amazon, you must create a legal entity and have a professional account to be eligible on the sales platform, as a seller. Then, all you have to do is label the products to be sold and send them to the nearest logistics centers. The products in question will be available on the market within 24 to 48 hours.
Amazon is operational throughout France, but also in Europe. It is possible to sell its products in Germany, Italy, the United Kingdom or Spain. Thanks to the Pan European service, Amazon allows you to operate locally or abroad, and your products will be delivered in less than 48 hours.
By accessing the Amazon site, information about you will be requested, such as:
- Credit card
- Company details
- The person receiving the service
- Banking information
Opening an account on Amazon
The only criteria for admission to Amazon is to have a professional account. By having this account, you will be able to benefit from Amazon services, in particular the “shipped by Amazon” service. Depending on your activity, you have the choice between two types of accounts:
- The Basic account
- The PRO account
1- The Basic account
Depending on the product, sellers make less than 40 sales per month. This particularly concerns individuals. With this type of account, Amazon earns 0.99 euros per sale.
2- The pro account
This type of account is ideal for professionals who offer a large number of varied products on the site. I think it’s more reasonable, because the platform requires a total of 30 euros per month for the subscription to the PRO account. But it should be noted that the service “shipped by Amazon” is only accessible to those with a professional account. Once you have this account, you will be able to access the platform. You just have to follow the instructions to send your product.
Profitability on Amazon
At first glance, the commissions Amazon charges appear to be substantial. But if we calculate the charges without using the Amazon FBA service, we will find that they are higher.
I think taking care of the delivery is even proving to be complicated. First, the product must be packaged in good and proper form before shipping it. With several products to deliver per day, it will be necessary to recruit.
There is a much better chance of selling quickly on Amazon compared to other online shopping sites, as this platform is among the most used in the world.
Once the product has been chosen, it will be necessary to set a price before putting it on sale on Amazon.
Use the positioning strategy
You have to position yourself against your competitors, especially if you sell the same type of product. But it is not necessary to use this strategy if the product is high end. Indeed, you can afford to sell at a high price if your product is of high quality.
Internet sales platforms make it easy to sell products. Whether private or professional, this site allows all types of sellers to sell quickly, using the platform’s influence with potential buyers. With the Amazon FBA service, the seller can confidently entrust Amazon with the tasks related to the storage, preparation and delivery of the product.