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Sell products through Amazon

Selling on Amazon

There are many people who want to earn an extra buck. You can do this in different ways. For example, you can choose to take an extra job for your day off. However, it is also possible to sell products through Amazon. This can be a fun way to earn extra money. 

Ways to sell products on Amazon

There are a number of options for selling your products through Amazon. There are two options that you can opt for. In order to do this, you often have to pay a sum of money to Amazon each month. 

The first option is a seller account on Amazon. With a seller account, you sell your products directly to a buyer who wants to buy your products on Amazon. 

The second possibility is the vendor account on Amazon. This means that Amazon buys products from you and sells them on. You will only get a vendor account if Amazon invites you to one. This doesn't happen very fast. 

Cost of sales

There are a number of costs involved if you want to sell products through Amazon. First, you have to pay a monthly subscription fee. This is an amount of 39 euros per month. 

You also pay platform fees. This is a portion of the gross profit you pay to Amazon for being able to sell your products. These costs can be from 10 to 15 percent of your gross profit. Cheap products often have high costs and expensive products have low costs. These fees are very flexible. This is because they are not set by Amazon. If you want to know the exact amounts, you can best use an FBA calculator. 

There are also some marketing costs that go over the price. If you are a new seller, you will soon be on the last page with your product. If you want to increase this ranking, you need sales and reviews. If you want to make sales quickly, it is best to choose Sponsored Products. This is Amazon's adwords system. A rule of thumb that many sellers use is to use ten percent of your turnover for Sponsored Products.

Lots of time

The most important thing you need to have for an Amazon account is time. Setting up the account and delivering the products takes a lot of time to set up. Besides this, it also takes a lot of time to keep everything running. This can be quite difficult. 

The time is mainly spent on direct to consumer. Direct to consumer is the working method that Amazon uses. This means that you do not work with an intermediary. This can be a nice working method. However, it will take a lot of time. This is because you have to arrange everything with the customers yourself.

When working with Amazon, if you've set up the sale yourself, you also have to answer customer questions and look carefully on the internet for reviews. This can be very tricky, because people who buy things on Amazon are very prone to complaining. As a seller on Amazon, you are fully responsible for dealing with questions and complaints. 

Amazon works with as little contact with the sellers as possible. Everything is handled through the internet. Amazon is mainly focused on the consumer and the seller is unimportant to them. If you want to contact Amazon as a seller, it will be quite difficult. 

Even the smallest complaint will cause them to close your account. After this you need to come up with a good improvement plan. If you do not come up with this, you quickly run the risk of having your account removed from the site altogether. So you will not be under the same company name again on Amazon. 

If you want to prevent this from happening, it is useful to make sure that you handle all questions and complaints within 24 hours. It's best to keep the margin of error at one percent. By doing everything this way, you won't have the risk of having your account closed. 

Shipping via Amazon

If you want to sell products on Amazon, you will have to ship them. There are two ways to do this. You can choose to do the shipping yourself or you can choose to let Amazon do it for you. This is called FBA, or Fulfilment by Amazon. 

When you use FBA, Amazon takes care of the shipping of the products, the returns and the customer service. However, there are a number of additional costs associated with this. These consist of Fulfilment and storage costs. These costs often differ per product. The weight and size of the products are the main factors taken into account. The lighter the product, the lower the costs.  

It is important to take into account that if you choose for storage in the Netherlands, you also have to be registered in Germany. This is because there is a German VAT requirement. This means that you do not only have to be a Dutch company, but also have to be registered for VAT in Germany. 

Payout

If you have made money by selling on Amazon, you want to be able to get it back. You can do this by getting a payout. The money you have made, you can see back on your sellers account. 

You can have this deposited into your bank account. However, the costs of shipping, the platform and the account will be added first. Amazon processes payments every 14 days. It takes about five days before the money is actually in your account. This means that a payment can take a while. 

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