Knowledge Base: E-commerce Accounting and VAT Compliance

How to start selling on Amazon: Tips and strategies

How to start selling on Amazon: Tips and strategies for e-commerce sellers

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Date17 Jul 2024
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Starting to sell on Amazon is a significant step for any e-commerce seller. Amazon is one of the largest marketplaces in the world, offering access to millions of potential customers. In this article, we will provide a detailed guide to help you understand how to begin your journey on this platform step by step.


Before you begin: Choosing a selling plan

First, you need to choose the right selling plan. Amazon offers two main plans:

  • Individual Plan: Costs 4 PLN per item sold. This is a good choice for those who plan to sell a small number of products.
  • Professional Plan: Costs 165.91 PLN per month, regardless of the number of products sold. This is the best option for those planning larger-scale sales.

Keep in mind that regardless of the plan chosen, Amazon also charges a sales commission, which varies depending on the product category.


Consider your sales strategy

Before you start selling, you should think through your sales strategy. On Amazon, you can operate as:

  • Reseller: Find popular products that already exist in the market and offer them in Amazon stores.
  • Brand Owner: Manufacture your own products or source goods to sell under your own brand, offering unique products.

You can also combine both approaches to better achieve your sales goals.


Registering a seller account

To start selling on Amazon, you need to register a seller account. You can do this using your existing Amazon customer account or by creating a new seller account. Here’s what you’ll need:

  • A business email address or Amazon customer account
  • An active credit card
  • A valid passport or ID
  • Company registration details (including VAT number if applicable)
  • A phone number
  • A bank account where Amazon will send your sales proceeds

Go mobile

Amazon offers the Amazon Seller app, which allows you to manage your sales from your phone. With the app, you can track sales, fulfill orders, find products to sell, respond to customer questions, and create and edit listings. The app is available on the App Store and Google Play.


VAT requirements information

Depending on the nature of your business, you may need to obtain a VAT number in a European country, in accordance with applicable regulations. These requirements depend on various factors such as the location of your business, order fulfillment model, and annual sales amount. Understanding and complying with different VAT requirements is crucial for smooth selling on Amazon. If you need help with this, contact us, and we will help you understand and meet all necessary tax requirements.


Adding products: First steps in Seller Central

Before adding products, familiarize yourself with the first steps in Seller Central. Here’s what you need to know:

  • What you can sell: This depends on the product, category, and brand. Some categories are available to all sellers, while others require a professional plan account, sales approval, or include products that third-party sellers cannot offer.
  • Product identifier: To create a listing, you will need a product identifier, such as GTIN, UPC, ISBN, or EAN.
  • SKU identifier: Created for tracking your inventory.
  • Listing details: Such as price, product condition, available quantity, and shipping options.
  • Product details: Name, brand, category, description, and images.
  • Keywords and search terms: Help buyers find your product.

If another seller already offers the same product, join the existing listing. If you are the first seller offering a product, you need to create a new listing.


Product page

Listing details will be displayed on the product page, where customers will find all relevant information. If multiple sellers offer the same product, Amazon combines data from different listings on one product page. Sellers can co-create information on the product page or request corrections if the displayed information is incorrect. If you sell products under a registered trademark, consider signing up for Amazon Brand Registry. This is a free service that gives you greater control over product pages using your brand.


Attracting customers

Once your products are available on Amazon, there are several ways to attract customers:

  1. Fast shipping: Customers often choose products with the Amazon Prime logo, which you can obtain by using the Fulfillment by Amazon (FBA) program.
  2. Sell and ship across Europe: One account allows you to reach customers and manage listings and inventory across Europe on eight EU marketplaces.
  3. Advertising listings: Increase the visibility of your products and brand awareness with ads in search results and on product pages.
  4. Competitive prices: Seller Central tools such as automated pricing and bulk pricing for Amazon Business customers can help you stay competitive.

Summary

Starting to sell on Amazon requires thought and planning, but with the right strategy, you can succeed. Choose the appropriate selling plan, register an account, add products, and start attracting customers. Amazon offers many tools and services to help you effectively manage sales and succeed in the e-commerce market.

Iga Turniak

Junior Process Management & QM Specialist at getsix®, Marketing Assistant at getsix® and amavat®. With the company since March 2022. Interested in SEO, content marketing, and the e-commerce industry.

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