In today’s technology-driven world, it has never been easier to start up your own business, start selling your own products, or resell someone else’s products. Online marketplaces are popping up all over, but by far, the largest and most well-known of these is the giant known as Amazon.
Since its founding in 1994, Amazon has grown into one of the most recognizable brands on the Internet, and they have established a central position as a dominant open marketplace. Becoming an Amazon seller has never been easier, but it can be tricky to ensure you’re putting your best foot forward.
Putting the Customers First
For any business, the bottom line of their success or failure comes down to the customer base they serve and how well they do it. It’s important to show the customer that the seller behind their screen has good intentions and will be responsive to their needs. Anyone can sell their products on Amazon, so it’s your job as the seller to make sure that listings are accurate.
Your product detail pages should be thorough and yet concise, giving the best representation of each product’s information. The accuracy and veracity of product details can push customers toward your product in gratitude that you’ve been open and honest.
Listening to customer feedback and having open communication with your customers can reassure them that you are properly representing the product they are buying. Amazon even has a convenient best practices guide for their own store, providing more pointers on how to optimize your products.
Pro Tip: Take a close look at your reviews to see what feedback you’re getting from your customers and how your customers are talking about your products. These can really help you form and optimize an ideal product description.
Own the Buy Box
Owning the buy box can be a difficult task to maintain, but you’ve still got to try. According to Feedvisor, over 80% of all sales on Amazon go through the Buy Box at the top of the page. There are a number of factors which lead to the system giving a particular product the spotlight.
Some of these factors include the item price, the optimal buy box price, and your price compared to other sellers. Buy box placement can also depend on your status as a Professional Seller on Amazon.
One alluring trait that causes shoppers to flock to certain products is the promise of fulfillment by Amazon. Fulfillment by Amazon (FBA) is the service which allows users to sell products, but have the order shipped to and from an Amazon fulfillment center. This provides your customers with Amazon’s highly touted “2-day free shipping” that Amazon uses to market their Amazon Prime memberships.
If you’re looking for another fast fulfillment option, Deliverr offers fast 2-day shipping for your Amazon sales and across your other eCommerce channels. It’s the FBA experience, everywhere you sell online. Learn more.
Best Practices When Filling Orders
As with any business, listing your products properly and interacting with the customers is only half the battle. The next steps to success in the Amazon marketplace come after the sale is over and the fulfillment process commences.
As previously mentioned, many of today’s biggest Amazon sellers choose to use the Fulfillment by Amazon program in order to quickly deliver goods to their customers. However, for many sellers, Amazon has flourished as a marketplace akin to eBay or a second hand marketplace — a place to resell used products. With used products, the seller will typically ship their products personally, so there are plenty more things to consider when fulfilling your customers’ orders.
Amazon’s selling policies give a good word of guidance to their sellers, instructing that customer information should only be used for the delivery of the product and promptly deleted afterwards. More information on Amazon’s policies and guidelines can be found through their Seller Central help database.
Pro Tip: if you’re looking to diversify away from FBA or to make 2-day delivery a competitive advantage everywhere you sell including Walmart, eBay, Shopify, and more, check out Deliverr’s ultra-fast and affordable fulfillment options. They store your items close to your buyers across their network of warehouses. So you can provide customers with fast and free 2-day shipping at a price that works for your bottom line. Get started here.
Amazon Payouts: How Do They Work?
So, you’ve listed your product, interacted with your customers, and sold your products. Now, the biggest question is “What happens next? How does Amazon pay me?” As with any retailer, Amazon is a business and charges fees for selling products through their marketplace. Their Seller Central database lists a variety of prices and options for their sellers, which covers the cost of using their marketplace.
Amazon offers different fee schedules for individual plans versus those with professional seller accounts. Each has different ways of doling out fees. For individual sellers, Amazon collects a flat fee of $0.99 per item and a referral fee, taken as a percentage of the sale price based on what type of product was sold. Professional sellers pay a subscription fee of $39.99 per month and bypass the referral fee for their items. If you sell more than 40 items per month, it’s definitely worth it to upgrade from an individual seller account to a professional account.
Getting Your Pay Faster with Payability
For a typical Amazon sale, it could easily take more than two weeks for a seller to receive payment for an item that has sold through the marketplace. This can be a major hassle for sellers looking to scale their business fast on the Amazon marketplace.
However, many sellers are seeking ways to access their funds faster and feel more financially secure. Payability offers cashflow solutions for Amazon and other marketplace sellers paid on terms to quickly receive their earnings the next day.
How Payability Can Help Amazon Sellers
Payability’s funding solutions are designed for the unique financing needs of eCommerce businesses. They are also designed to be debt-free and equity-free. Plus, approval is based on account health and sales performance, so there are no credit checks and you can get funded as soon as the next business day. The application is simple and takes less than 10 minutes to complete. Just be sure to connect all of the eCommerce platforms you sell on to get an offer.
Our Instant Access program offers accelerated daily marketplace payouts for your day-to-day sales. Instead of waiting for Amazon to go through their 14+ day payout process, you receive your payouts the next day, every day.
Payability’s Instant Advance program works similar to Amazon Lending or Shopify Capital. In fact, it can be used alongside both products or in their place. With an Instant Advance, we predict your future sales and give you 75% – 150% of your monthly sales upfront. There are no origination fees or hidden fees. We also offer a fee rebate. So you can pay your advance back sooner and lower your cost.
In today’s world, eCommerce is growing faster than ever before. According to a study done by McKinsey and company, 2020 saw eCommerce grow as much in a single year as it had in the past decade. Online marketplaces have never been in the limelight more than they are today, and Amazon continues to lead the charge as one of the most well-recognized.
As a seller on Amazon, it is your job to not only ensure you are providing your customers with the best products possible, but to make sure these products are priced fairly and your listings are a cut above the rest. It can seem like a balancing act to make sure every avenue is covered, but with services like Fulfillment by Amazon and financing options like Payability, your business can see more growth and success in the Amazon marketplace.