In this article

[This is a sponsored article with Amazon Global Selling.]

Previously, we interviewed a few local Amazon sellers to get insights into their strategies for selling products globally.

But one key question still remains for many: how exactly do you proceed with starting an international ecommerce business on Amazon.com?

How do I start selling on Amazon.com?

As with any business, the first thing you need to determine is what products you want to sell on Amazon.com. One way to gauge this is by having a look at the products on the Amazon Best Seller list and analysing what products customers are likely looking for.

If the product that you plan to sell is already available on Amazon.com, you can consider selling an alternative product at a more competitive price point. You can also have a look at the reviews of each of the products listed to take note of their drawbacks and strong points.

After identifying potential products, the next step is to create an Amazon account. Have your bank account number, chargeable credit card, NRIC, tax information and phone number ready for a smooth registration process.

Other than that, you can take advantage of Amazon’s Service Provider Network to find service providers to aid in several aspects when selling on the ecommerce platform such as product compliance, taxes, payment, marketing, advertisement, and more.

For those who have yet to venture into ecommerce, they have a comprehensive guide on how to get started on selling on Amazon.com and more.

What benefits can help me kickstart my business?

Amazon started the New Seller Incentives programme where brand owners that register themselves on the Amazon Brand Registry will be eligible for up to US$50,000 in benefits which include, but are not limited to the following:

  • 5% back on your first US$1 million in branded sales for brand owners
  • US$200 credit for Sponsored Product Ads
  • 90 days of free storage for 50 units
  • 180 days of free removals with Fulfillment by Amazon (FBA)

On top of the benefits mentioned above, you will have access to tools to help your business grow, such as ads, multi-page stores, and brand analytics.

Another support that new sellers can get is from MATRADE’s (Malaysia External Trade Development Corporation) eTRADE Programme 2.0 which assists new local SMEs by providing incentives of up to RM20,000, along with digital marketing and training.

Image Credit: Amazon

There’s also the FBA New Selection programme where eligible sellers can get free limited monthly storage, free removals, and more. 

What are the costs of selling on Amazon.com?

You need to first determine whether you need an Individual or a Professional subscription plan.

To elaborate, an individual subscription plan will not have access to many of the advanced selling and analytic tools Amazon offers. In addition to that, the fee is US$0.99 for every item sold.

With the Professional subscription plan, you’ll be charged a flat fee of US$39.99 (before taxes) a month instead. You will also have access to advanced selling tools to analyse sales performance, 90-day support from Amazon themselves, and the option to sell products in restricted categories like art, animal-related products, and more.

With that in mind, the Professional plan provides much better value in the long run and access to on-site advertising tools to help grow your business.

Depending on the item sold, there are also additional selling fees, which include referral fees, and the variable closing fees.

Businesses must consider the fulfilment fees as well. If you do the fulfilment yourself, you are required to pay a seller’s fulfilment price that could start from US$3.99. Another option is by using FBA, which lets you stock up in one of 175+ fulfilment centres around the globe.

The benefit of using the service is that as soon as a buyer purchases your product, Amazon will handle the packaging and shipment to ensure that it reaches its destination. By doing so, not only do the customers get the products much faster, but it frees up the seller’s time to focus on improving their business.

FBA also helps with refunds, customer inquiries, and product returns without you needing to lift a finger. All returned products can be consolidated and sent back to you or disposed of, which can help save on expenditure.

The cost for each product sold can start from as low as US$2.92 a unit plus an additional 5% for fuel and inflation surcharge.

However, keep in mind that there are additional fees to take note of as well, such as the storage fee, removal order fee, long-term storage, and more, which take into account the average volume of the inventory.

I still need more information, where can I find it?

Image Credit: Amazon

For those who want more in-depth explanations about selling on Amazon.com, their official website has plenty of resources for you to take advantage of when starting an international ecommerce business.

You could even speak to their seller ambassadors to get first-hand advice from the community. If you have a question that’s a lot more specific, Amazon has an official Facebook page where your questions will be addressed directly.

They also frequently run live webinars that provide valuable information for up and coming Amazon sellers to stay informed. This includes the upcoming webinar with Sidec on how to expand your business to the US on May 26, 2022, from 10AM to 11AM.

  • Find out more information about how to sell on Amazon.com here.
  • Read our Amazon seller interviews here.

Featured Image Credit: Vecteezy

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Vulcan Post aims to be the knowledge hub of Singapore and Malaysia.

© 2021 GRVTY Media Pte. Ltd.
(UEN 201431998C.)