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1. The value of selling on Amazon in 2024

How to sell on Amazon: A beginner's guide for 2024

Whether you're a budding entrepreneur with a brilliant product idea or a small business owner ready to catapult your brand to new heights, understanding the intricacies of selling on Amazon is crucial. 

This beginner's guide for 2024 is your compass in the vast Amazonian wilderness, designed to demystify the process and set you on a path to success. From the latest strategies to insider tips, we'll embark on a journey to unlock the secrets of selling on Amazon, ensuring you're not just participating but excelling in this dynamic marketplace.

Main takeaways from this article:

  • Amazon's global reach, consumer trust, logistical support, favorable SEO, and opportunities for diverse revenue streams make it an attractive platform for new sellers.

  • Familiarity with Amazon's selling policies, including product listing, prohibited items, intellectual property, data privacy, fair pricing, and product review policies, is essential for successful selling.

  • Be aware of various costs associated with selling on Amazon, such as account fees, referral fees, and additional fees like FBA and advertising services.

  • Steps for selling on Amazon include creating a business plan, setting up an Amazon Seller account, finding a niche, choosing a fulfillment method, listing products, pricing effectively, optimizing listings, promoting the store, providing excellent customer service, and monitoring performance.

  • Gelato's integration with Amazon helps manage inventory and order fulfillment efficiently, which is especially beneficial for creators and new sellers.

The value of selling on Amazon in 2024

infographic detailing the numerous advantages of selling on Amazon

The global ecommerce giant offers a host of opportunities for new sellers. Let's delve deeper to understand why selling on Amazon will be beneficial for you this year. 

  • Access to a global market: With over 300 million active users worldwide, Amazon is more than just an online store; it's a global marketplace.

  • Consumer trust: Ranked as one of the world's most trusted companies, Amazon has earned enduring consumer trust for its commitment to secure shopping experiences and excellent customer service. 

  • Logistical support: A big part of Amazon's appeal is its comprehensive logistic support. From storage to shipping through Amazon FBA (Fulfillment by Amazon), you have the choice to hand over complete operations management to a reliable entity.

  • Favorable SEO: Compared to individual online stores, products on Amazon often rank higher on Google. Due to its robust search engine optimization (SEO) guidelines, your products will likely pop up more in searches, boosting visibility and sales. 

  • Opportunities to diversify revenue stream: Beyond just selling products, Amazon offers additional income sources, such as affiliate marketing through the Amazon Affiliate Program.

Understanding Amazon's selling policies

Before you embark on your Amazon selling journey, understanding Amazon's selling policies is crucial. These policies, laid out by Amazon to govern seller behavior, will be your roadmap as you navigate the world of ecommerce sales on their platform. Amazon's selling policies evolve and change, so it's crucial for sellers to stay informed. Some of the critical selling policies for 2024 include: 

  • Product listing policy: All products listed on Amazon should match an existing product in Amazon's catalog. Sellers also have to use product IDs (UPC, EAN, etc.) for listing.

  • Prohibited items policy: Amazon has a stringent list of prohibited items like drugs, certain clothing items, copyright-infringing products, etc. Sellers need to be fully aware of this list to avoid violating Amazon's rules.

  • Amazon's intellectual property policy: Sellers should not infringe on others' intellectual property rights — this includes selling unauthorized replicas or counterfeits.

  • Data privacy policy: Sellers need to protect customer data and use it only to process orders and customer service. Sharing this data with third parties is strictly forbidden by Amazon.

  • Fair pricing policy: This policy governs the price of all listed products. Amazon may remove offers or suspend sellers who engage in "price gouging" — excessively or unreasonably high prices.

  • Customer product review policy: Trying to manipulate product reviews is against Amazon's policies. This includes offering incentives to customers for writing reviews or writing fake reviews.

The costs involved in selling on Amazon

visual representation of the financial aspects of selling on Amazon / infographic illustrating the three fee categories that come into play when selling on Amazon

Selling on Amazon certainly comes with its own set of costs that you must be aware of as a beginner so that you can create a competitive and profitable pricing strategy. These costs can essentially be broken down into the following categories. 

1. Account fees

Amazon provides two types of selling plansIndividual and Professional. Professional sellers pay a monthly fee of $39.99, while Individual sellers pay $0.99 per item sold. Your choice should depend on a projection of your sales volume. If you foresee selling more than 40 items a month, the Professional plan will be more economical.

2. Additional fees

Depending on your business model, you may encounter additional costs like FBA (Fulfillment by Amazon) fees if you choose Amazon to handle the storage and delivery of your products. Additional services, like advertising and advanced account analytics, also carry separate costs.

3. Referral fees

These are the fees Amazon charges for selling your goods on their platform. Each product category has an associated fee rate, which typically ranges from 6% to 45%. Bear in mind that while these costs may seem steep initially, the potential reach of Amazon's vast customer base could offset these expenses over time.

How to sell on Amazon in 2024 step-by-step

infographic detailing the steps to selling on Amazon in 2024 / an ecommerce professional starting an Amazon business

Ready to launch your products and grow your business with Amazon? Let's learn how you can start selling in the Amazon marketplace with this step-by-step process using Amazon Seller Central.

1. Create a business plan

To kickstart your Amazon selling journey, you need to develop a comprehensive business plan. This includes deciding what products to sell, determining selling fees, and leveraging tools like Amazon Seller App. A good control over your business strategy can lead to growing sales and an increasing number of satisfied Amazon customers.

2. Set up your Amazon Seller account

Next, you'll need to set up your Amazon Seller account. This involves providing your business information, agreeing to seller agreements, and setting up your account details. Ensure you choose the right account type - 'Individual' if you plan on selling less than 40 items per month or 'Professional' for higher volume sales.

3. Find your niche and decide what to sell

Identifying a niche that aligns with your interests and offers profitability is vital to success on Amazon. Reflect on what you're passionate about and find products that align with that passion. Make sure that there's a viable market for these products and that they offer ample potential for profit margin.

4. Choose an order production and fulfillment method

Choosing your production and fulfillment method is a vital step on your Amazon journey. Fulfillment by Amazon (FBA) could be an excellent solution, allowing Amazon to handle storage, packing, and shipping tasks. Alternatively, you might consider a partnership with a printing and fulfillment service like Gelato to manage your orders efficiently and on demand.

5. List your products on Amazon

Start by giving each product a compelling title and detailed description. Photos should be high-quality and clear. Add video snippets, too, showcasing your products on display for added appeal. Use Amazon's 'Manage Inventory' feature to input your products, set prices, and upload images. Amazon often recommends similar products, so make sure your listings are accurate and thorough to be included in these suggestions.

6. Price your products effectively

Product pricing is a critical factor for success on Amazon. To set competitive rates, you need to understand your costs fully, research your competitors' prices, and consider the perceived value of your items. Use Amazon’s 'Match Low Price' feature to stay competitive, but make sure you still make a profit.

7. Optimize product listings for visibility

To increase product visibility, optimize your listings using SEO-friendly product descriptions and high-quality images. Keep titles concise yet informative, and use clear, relevant keywords. Including bullet points for product features can also boost visibility. Regular reviews and updates of your listings are essential to maintain high search rankings on Amazon.

8. Promote and drive traffic to your Amazon store

Boost your Amazon Seller Central presence and sell products more effectively by using Fulfillment by Amazon (FBA) and promoting your product detail page. Utilize advertising features like Amazon ads and Facebook to drive traffic. Idealize your perfect launch, grow your business, and engage potential Amazon customers for a flourishing seller account.

9. Provide outstanding customer service

In the digital marketplace, customer service is pivotal. As an Amazon seller, diligently respond to buyers' queries, handle returns swiftly, and solicit feedback to improve your services. Remember, maintaining high ratings and positive customer feedback can significantly boost your store's visibility and sales.

10. Monitor and improve performance

Constant performance monitoring is crucial for Amazon. Assess your performance metrics regularly, recognize weak points, and strategize to improve. Employ customer feedback to improve product quality and enhance the overall customer experience. Remember, consistent improvement drives business growth, and an agile approach to your business model can help secure your position in the Amazon marketplace.

Establish a competitive Amazon business with Gelato's print on demand platform

gelato and amazon integration

As you develop your Amazon selling plan, consider taking advantage of Gelato's print on demand platform's powerful integration capabilities with Amazon. This partnership can supercharge your ecommerce efforts, allowing you to efficiently manage your inventory and ensure quick, reliable order fulfillment. Whether you're a creator selling artwork or a burgeoning business dealing in customizable goods such as mugs, t-shirts, phone cases, photo books, and wall art, Gelato can handle production and delivery, giving you the freedom to focus on growing your Amazon presence. 

Gelato's print on demand service is a blessing, especially for newcomers to the marketplace. As orders come in on your Amazon store, they are automatically forwarded to Gelato, which takes care of printing, packing, and shipping. This means you never have to worry about products piling up or running out of stock - an excellent way to reduce overhead costs and improve the customer experience

With Gelato's integration capabilities, you're not just selling on Amazon; you're thriving there. So, why wait? Now's the time to streamline your ecommerce process, boost your Amazon business, and get more done with less stress. Make the smart move and sign up for Gelato now!

Amazon selling FAQs

Is it free to sell stuff on Amazon?

No, it's not completely free to sell on Amazon. Sellers generally have to pay a referral fee per item sold and, depending on the plan chosen, a monthly subscription fee.

How much does it cost to sell on Amazon?

Amazon's selling fees vary according to the selling plan you opt for, the category of your product, and whether you choose to fulfill orders yourself or use Amazon's fulfillment services. Some costs include the Amazon referral fee, which is a percentage of the total selling price, variable closing fees that apply to media items sold by non-Pro sellers, and the monthly subscription fee if you opt for the Professional selling plan.

Is it still a good idea to sell on Amazon?

Absolutely, selling on Amazon remains a lucrative opportunity for both new and established online retailers, provided you have the right approach and resources. Given the platform's unparalleled customer base and market reach, it offers a wide window of opportunity to sellers. 

Can I make good money selling on Amazon?

Yes, making a good income from Amazon is possible, especially with proper planning, product selection, and market research. Your success and potential earnings largely depend on your strategy and the effort you put into your Amazon business.

What do I need to start selling on Amazon?

To start selling on Amazon, you need a seller account, product listings, and a plan for order fulfillment. Choose between Individual or Professional accounts. You'll also need bank account details for payments, tax information, and an understanding of Amazon's policies and fees.

Do I need a business license to sell on Amazon?

A business license may be required to sell on Amazon, depending on local laws and the type of products you're selling. While Amazon doesn't mandate a business license for all sellers, it's essential to comply with legal requirements in your area and for your product category.

How much money do you need to sell on Amazon?

The initial investment for selling with Amazon varies. Costs include a fee for a selling plan ($39.99/month for Professional, $0.99/ item sold for Individual), plus additional fees like referral fees, fulfillment, and shipping costs. It also requires you to budget for initial inventory, marketing, and potential tools or services to manage your listings.

How to find products to sell on Amazon?

To find and sell products in your Amazon store, research market trends, analyze competitors, and identify gaps in product offerings. Tools like Amazon's Best Sellers list, keyword research tools, and customer reviews can provide insights. Consider profitability, demand, and sourcing capabilities when selecting products.


Next steps

Start selling products with Gelato