Amazon is the world’s largest online retail selling site. When most people buy something on Amazon they think they are buying from Amazon, but third party sellers sell over 33% of all items sold on Amazon.
For a beginner, it is important to understand that Amazon FBA is an actual business. This means that at some point one needs to form a business structure, open a business checking account, collect sales tax and do bookkeeping. This could be unfamiliar territory for many people and they could seek help from a CPA or a tax professional. One must also read the rules! If you’re confused, join a friendly selling group and ask lots of questions. Selling on Amazon can be super profitable, fun and straightforward but you cannot fully enjoy them if you jump in without doing your homework.
Following are some of the tips from Chris Bowser, who started the Online Auction Learning center, which is a one stop learn-all place for Amazon FBA through his Amazon workshops and FBA seminars:
- Register as a professional seller: As a professional seller there are many perks that you do not get as an individual seller. Like you are allowed to create listings for products that are not currently being sold on Amazon, product bundles, sell in restricted categories, and register a brand among other things.
- Follow The Rules:There are specific policies on selling, a detailed list of the various policies related to all of your Amazon activities are available on the website.
- Answer Customer Communications quickly:Amazon wants you to answer a question from the customer within 24 hours and if you do not that is a demerit against your account.
- If you are merchant, ship all orders within 1 business day and provide tracking information: Amazon requires you to state the handling time for all products and to meet that expectation.
- Describe product accurately: Even the slightest difference between the product you are delivering and what you describe in your listing, customers will notice.
- Ask for Feedback: There are several third party feedback services that automatically sends out an email to each customer telling that if there is anything whatsoever wrong with the transaction to let us know and give us a chance to fix it.
- Use Larger Images and Follow Amazon Image Guidelines: Amazon now requires images to be at least 1006 pixels on a side in certain categories and encourages it in all categories.
- Label your items and shipments correctly when sending to FBA: It is very easy to mislabel products. When you put a shipment together create a system to double check that each product has the correct label.
- Manage Your Inventory proactively: manage your inventory so you don’t run out of anything. You should know how long it takes to get an order placed, shipped to you and shipped to Amazon.
- Pack your shipments to Amazon correctly to avoid damage, delays and penalty fees: Amazon has some fairly strict requirements when you send items to their FBA warehouses, follow them rigidly.
These are just some of the many tips that you can follow. For further information, sign up and read in Chris bowser’s Online Auction Learning Centre.