Selling on Amazon may be easy, but it isn’t always a piece of cake. Whilst anyone can create a seller’s account and start advertising their products, making money requires considerable effort. There are millions of sellers competing for a slice of the action on Amazon. It’s not rocket science to figure out that you need more than good luck if you want a reasonable piece of the pie. Here are some of the key things you need to know before you start selling on Amazon.

#1. Understand the Power of the Buy Box

There are many factors that determine which seller wins the battle of the Buy Box. These include pricing, seller history, the number of positive reviews, and how many other offers there are. To maximize your chances of success in the Buy Box, read on.

#2. Choose Your Niche Wisely

To build a successful business in a competitive niche, you need to do one of two things: sell something unique or be extremely competitive in your pricing. For reasons already discussed, we recommend the former.

A far better approach is to avoid a competitive niche like iPhone cases or console games. Instead, drill down into a less competitive niche and find one that’s popular, but not as well serviced. Alternatively, create your own niche if you think there is a demand for your products.

#3. The Approach

The downside to this approach is that it won’t take more than six months for other retailers to spot that you’re doing rather well selling cheap blue widgets. They will target your products and source cheaper ones to undercut you. This is when you should move on.

Always be on the lookout for profitable gaps in the market or underserved niches. If you can evolve to suit the market, you will always be generating profit.

#4. The Benefits of FBA

You’ll also discover that Amazon alerts other sellers when your stock runs low, so they can compete for the same customers.

#5. Stick to Better Quality Products

Instead, research other niches, as already discussed, and once you find a product that looks like being a good fit, try sourcing it at a competitive price.

Alibaba makes sourcing products from overseas a dream, but don’t be swayed by cheap headline prices. Most big discounts are only applicable to bulk orders, i.e. more than 1,000 pieces. Remember that cheap products are cheap for a reason, so given a choice, elect to sell better quality products at a higher price, or your feedback rating will suffer.

#6. Cut Your Costs

#7. Read Amazon’s Policies

Don’t let this put you off. Selling on Amazon can be very profitable if you tackle the process in the right way!

Originally posted here: https://www.ruhanirabin.com/things-to-know-sell-on-amazon/

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Ruhani Rabin being a tech and product evangelist for almost 20 years. He was VP, CPO for various digital companies. Plays with Drones in his free time.

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Ruhani Rabin

Ruhani Rabin being a tech and product evangelist for almost 20 years. He was VP, CPO for various digital companies. Plays with Drones in his free time.