How To Start an Ecommerce Business On Amazon

Introduction.

Starting an online business might sound overwhelming, but it doesn’t have to be. If you’ve ever thought about building an online store, chances are Amazon has crossed your mind.

And why not? With over 300 million active users and more than $500 billion in annual sales, Amazon is one of the most powerful platforms for ecommerce entrepreneurs.

Whether you’re looking to build a side hustle or replace your 9-to-5 job, selling on Amazon can be a great way to make it happen.

But how do you start? What do you need to know? Let’s walk through everything step by step so you can get your ecommerce business up and running.

Why Amazon?

Amazon isn’t just a giant marketplace; it’s a system designed to help people sell products easily. Here’s why many people choose Amazon to start their online business:

1. Massive Customer Base: With millions of users shopping every day, your product has a higher chance of being seen and purchased.
2. Trust Factor: People trust Amazon. When you sell on their platform, you’re benefiting from that trust.
3. Fulfillment by Amazon (FBA): Amazon can handle storage, shipping, and even customer service for you, making it easier to manage your business.

How Do I Start an Ecommerce Business On Amazon?

Step 1: Choose Your Product

Everything starts with a product. But what should you sell?

Here are a few things to think about:

1. Find a Niche: Don’t try to sell everything. Focus on a specific product category. For example, instead of selling “kitchen products,” focus on something like “eco-friendly kitchen tools.”
2. Look at the Competition: Check out what’s already selling on Amazon. Tools like Jungle Scout or Helium 10 can help you analyze what’s trending and what products have low competition but high demand.
3. Solve a Problem: Products that solve a specific problem tend to do well. Think about what people might need but can’t easily find.

Pro Tip: Avoid overly competitive markets. If you see 10,000 sellers for a product, it might be tough to stand out.

Step 2: Set Up Your Amazon Seller Account

Once you know what you want to sell, the next step is to create an Amazon Seller account.

How to Do It:

1. Go to Amazon Seller Central.
2. Click on “Sign up” and follow the prompts.
3. You’ll need to provide basic information like:
   • Your business name
   • Your email address
   • A valid phone number
   • Bank details for receiving payments
4. Decide between an Individual or Professional account:
   • Individual: No monthly fee, but you’ll pay $0.99 per sale.
   • Professional: Costs $39.99/month but has lower per-sale fees.

If you plan on selling more than 40 items a month, the Professional account is a better deal.

Step 3: Source Your Product

You need to find a supplier for your product. There are a few ways to do this:

1. Wholesale: Buy products in bulk from manufacturers or distributors and resell them on Amazon.
2. Private Label: Create your own brand by purchasing generic products and putting your label on them.
3. Dropshipping: Work with suppliers who ship products directly to customers, so you don’t need to handle inventory.

Websites like Alibaba, AliExpress, or even local suppliers can be great places to start.

Tip: Always order samples before committing to a supplier. You want to make sure the quality meets your expectations.

Step 4: Create Your Product Listing

Your product listing is how customers will find and learn about your product. A good listing can make or break your sales.

Here’s what to focus on:

1. Product Title: Make it clear and include keywords people might search for. Example: “Eco-Friendly Bamboo Cutting Board – Extra Large, Durable, and Easy to Clean.”
2. Product Images: High-quality photos are essential. Use multiple angles and show the product in use.
3. Bullet Points: Highlight the key features and benefits. Keep it simple but informative.
4. Description: This is your chance to tell a story about your product. What makes it unique? Why should someone buy it?

Pro Tip: Use keywords naturally in your title and description. This helps your product show up in search results.

Step 5: Set Your Pricing

Pricing can be tricky. You want to be competitive, but you also need to make a profit.

1. Check Competitors: See how much similar products are selling for.
2. Calculate Costs: Include the cost of the product, shipping, Amazon fees, and any advertising.
3. Offer Promotions: Discounts and coupons can help attract new customers and boost sales.

Step 6: Ship Your Products

There are two main ways to handle shipping:

1. Fulfillment by Amazon (FBA): Amazon stores, packs, and ships your products. They also handle returns and customer service. This is a great option if you want a hands-off approach.
2. Fulfillment by Merchant (FBM): You handle everything yourself, from storage to shipping.

FBA can save you a lot of time, but it comes with additional fees. Weigh the pros and cons based on your budget and goals.

Step 7: Promote Your Product

Once your product is live, you need to drive traffic to it. Amazon won’t automatically send customers your way.

Here are some ways to promote your product:

1. Amazon PPC (Pay-Per-Click): This is Amazon’s advertising platform. You can pay to have your product show up at the top of search results.
2. Social Media: Share your product on platforms like Instagram, Facebook, or TikTok.
3. Influencer Marketing: Partner with influencers in your niche to showcase your product.

Step 8: Monitor and Improve

Once your store is up and running, keep an eye on your performance.

1. Check Your Sales: Are you meeting your goals?
2. Read Customer Reviews: Feedback can help you improve your product or listing.
3. Adjust Your Strategy: If something isn’t working, don’t be afraid to try a different approach.

FAQs

1. How much money do I need to start?

It depends on your product and business model, but many sellers start with around $1,000 to $3,000. This covers inventory, shipping, and basic marketing.

2. Do I need a business license?

Not necessarily, but it’s a good idea to check your local laws. In some cases, a simple sole proprietorship is enough to get started.

3. Can I sell from anywhere in the world?

Yes! Amazon allows sellers from many countries, but you’ll need to follow their rules and provide the necessary documentation.

4. How long does it take to make money?

It varies, but many sellers see their first sales within a few weeks. Consistent effort and good marketing can help you grow faster.

Final Thoughts

Starting an ecommerce business on Amazon can be a rewarding experience. With the right product, strategy, and dedication, you can build a successful online store and reach millions of potential customers.

What’s holding you back from starting your Amazon business today?