Amazon India is the pioneer of eCommerce and contributes significantly to eCommerce sales. This year, Amazon Prime consumers made purchases worth more than 250 million worldwide during the 2021 event. Most teenagers and youngsters have agreed that Amazon is their favorite website for online shopping and they can locate almost all products there. Thus, selling on Amazon in today’s eCommerce scenario is a good idea. They have a vast category to sell from, and if you are scared that Amazon’s ever-growing presence will threaten your business, it’s probably a good idea to use Amazon to reach out to a vast pool of consumers out there!
But in India, Amazon is not a new marketplace anymore. They have dedicated online buyers, and their presence has made an impact on the significant population in urban and rural India. Thus, many sellers now sell with Amazon. To make your presence felt, you need to be adept with the latest trends to make sure you stand out on Amazon. Here is a definitive guide for beginners that will enable you to know how to sell on Amazon.
Why You Should Sell on Amazon India?
Amazon is one of the most popular online marketplaces across the globe. As of October 2023, it is estimated that Amazon has over 310 million active users worldwide. When you become an Amazon seller you will get the opportunity to tap into the vast Amazon customer base. If a large customer base isn’t a reason enough to sell on Amazon, here are some more compelling reasons for you.
- Increasing demand: According to the Indian Brand Equity Foundation (IBEF), the growth of India’s eCommerce is likely to reach approximately 99 billion dollars by the end of this year. The eCommerce market is growing rapidly at a CAGR of 27%, especially in categories like apparel, grocery, home decor, etc. These sectors are also projected to experience immense growth. Rising internet penetration combined with growth in different sectors of the retail market enhances the eCommerce requirements in the country. All of these reasons are causing the eCommerce world to soar to heights.
- Brilliant logistics: Amazon has a vast global network with its warehouses placed in several regions in India. This makes them one of the most efficient and trustworthy online marketplaces in the country. Furthermore, Amazon Prime offers expedited shipping for their shoppers and their high-speed technology for logistics operations gives them the edge. Thus, it makes Amazon the perfect place to sell your products online.
- Sourcing products: Several international sellers rely on Indian manufacturers and producers to source their items. India is one of the greatest manufacturing hubs in global trade. India’s manufacturing industry has grown rapidly in recent years. In fact, India’s manufacturing hub is the sixth largest in the world, accounting for around 18% of India’s GDP. Thus, product sourcing from India via Amazon gives the seller nothing but benefits. Amazon also allows you to build better relationships with your customers and suppliers.
In addition to the ones mentioned above, there are plenty of reasons you should sell on Amazon India. These include quick and reliable shipping, secure and timely payments, and an extensive range of features that help you scale your business on the online marketplace. Apart from this, Amazon doesn’t charge you a fixed fee. You can pay when you sell. What’s more? Amazon is trusted by more than 2 million active sellers worldwide.
Advantages of Being an Amazon Seller
Being an Amazon Seller has several perks and here below are the major benefits:
- Amazon is a globally established online retailer. It has a global presence that enables you to gain access to a larger customer base. Approximately, Amazon has over 150 million people buying their products.
- This online marketplace also makes use of the best software technology and practices to make sure that all the products listed gain complete visibility and that all sellers have equal chances to sell their products.
- Amazon also gives their sellers an array of fulfillment options like fulfilled by Amazon, fulfilled by merchants (FBM), and pick up from Amazon associates in most cities in India.
- They have affordable rates for merchants that do not bite into their profits.
- Amazon is extremely user-friendly. They have a simple dashboard packed with all the essential features. Amazon has a multi-access navigation facility that facilitates the selling of millions of products.
How to Start to Sell Products On Amazon – Step By Step Guide
There are several product categories on Amazon. If you list the right products under the correct category, you will make huge profits. Here’s a step-by-step guide to start selling your products on Amazon India:
1) Register as an Amazon seller
Although there are different methods to sell on Amazon, registering on the online marketplace is a must. You will need your PAN card, GSTIN (Goods and Services Tax Identification Number), and bank account details. You will also need all your necessary KYC documents. In case you own a private label, you must be sure to add the trademark documents and bank authorization documents. Lastly, you will also be required to add optional details like business address and more.
2) Product Research
When you do some research on the products you want to sell, you will understand the market you are aiming for. The product research will also help you analyse the turnover rate and the selling rate for the product you want to sell. Amazon India gives its sellers the option to find out which products sell quickly and rank well. Any rank over 50 is assumed to be good and you can choose that product category to sell on Amazon.
3) Find Suppliers to Source Products
Finding a reliable supplier is not only challenging but also a tedious task. One method to find reliable suppliers is by contacting retail malls and understanding what bulk products you can sell. Alternatively, you can look at what types of bundled products are available to be sold online. You can buy these products in bulk at a lower price and sell them at retail cost online.
You can also choose to contact wholesalers and get long-term discounts from them. You will be required to purchase a certain amount of products within a specific timeframe.This allows you to get bulk products at cheaper rates. You can also choose to get in touch with small-scale producers to source some products from them.
4) Check the Eligibility Criteria to Sell on Amazon India
Are you wondering whether you’re eligible to sell your products on Amazon India? Well, you can use the Amazon Seller app to figure that out. This seller app from Amazon lists the complete eligibility criteria you must meet to sell on Amazon India. Not only the eligibility criteria, this app also shows you whether or not the products you want to sell will generate sales. This app also has a ‘sales rank’ feature that allows you to identify your chances of faring on the online marketplace.
5) Create a Listing of Your Products
After you have made an account, you must list your products on the Amazon platform. You can create a new product listing for every item or even add items to the previous listing. Previous listing refers to existing lists that have similar products to the ones you are selling. You will need to add your product with its specifications and pricing using the seller dashboard.
When you create a new listing, you can do it manually by adding every item. Professional sellers use a spreadsheet to upload their products in bulk using a single click.
6) Create a Shipping Plan
You can choose to create your shipping plan in multiple ways including:
- Choosing Amazon Prime to ship your products: You can opt for the Amazon Prime option but you must meet the eligibility criterion for it. In case you are not eligible, you can pick the FBA (Fulfilled By Amazon) option to ship your products.
- Amazon Managing Inventory: Inventory management is a must for all businesses involved in the selling of products. Amazon automatically manages inventory for sellers on Amazon India. It tracks your inventory levels and reduces the inventory count as you sell your products. You can adjust your inventory levels manually as well. The eCommerce platform and inventory management software can also be used to manage your inventory.
- Fulfillment Amazon Orders: You can use a third-party service to manage the fulfillment process. These third-party services ensure that your products are picked, packed, and shipped timely and efficiently. However, this option is not available for Prime product listings. On Amazon, you can choose between FBM (Fulfillment by a merchant) or FBA (Fulfillment by Amazon) to fulfill your orders.
7) Calculate the Margins to Sell on Amazon India
The last and most important step is to calculate the selling price and margins for the products you’ll be selling on Amazon. You can use the Amazon Seller app to calculate the selling price of products, scan the product barcodes, and show the pricing and fee details of any item. Amazon also offers a FBA revenue calculator to help you get details about the fee payable. It lets you enter the price of a product, the cost of shipping, and the actual cost of a product. Then, it will give you the fees you’ll have to pay for the product. You must use this app for every product you want to sell on Amazon India.
You can use this app to price your products based on what other sellers are charging, compare the selling price, and even factor in Amazon charges to determine your profit margins.
How to Make Sure You Stand Out on Amazon India?
Reviews, Reviews, and More Reviews
Where 90% of users head straight to Amazon to look for a product rather than search Google, if your product does not have proper reviews and ratings, there are decidedly fewer chances your product will do well.
Social proof in the form of testimonials and product reviews is the most relatable factor when it comes to online shopping, and people tend to rely on it most when buying anything off the internet. Therefore, a product with more positive reviews is bound to strike a chord with buyers.
So make sure you collect as many reviews as possible and also request video and image proof whenever you can. Videos and images are more authentic and if your product review has these, it adds more substance to the validation your buyer needs.
Engage with your Buyers
When a buyer posts a review about your product, do not forget to reply in a cordial manner. Your response must always be polite, decent, and inoffensive. The answer you leave on a review also makes an impression on the customer’s mind. As Amazon is significantly driven by reviews, you can multiply your customers by just making sure you have enough reviews on your products.
Also, keep getting new reviews as recent ones have more credibility. The interaction you have with your Amazon buyers based on the reviews they share defines your store. Personalized responses catering directly to the question will gain you more visibility and credibility.
Optimize the Product Listing
On Amazon, always make sure your product descriptions have all the necessary keywords. These can also be LSI keywords that will help you rank better among searches. To do so, take your time and do thorough keyword research and competitor research to optimize your copy, title, subtitle, and description. Furthermore, make sure your copy offers something to the customer along with a specific call to action.
Product Images – the Deal Breakers
This point cannot be stressed enough. A product image gives a complete look into what you are offering, and your product images must be top-notch to justify your product quality completely. You can also save to invest in this property as first impressions go a long way!
Diversify Your Approach
Don’t rely just on Amazon to be the flag bearer of your business. Sell on other channels as well. Amazon is a vast platform, but if you stay dependent on only Amazon, you will not be able to establish a brand value among your buyers. Work smart and move forward by acquiring customers from Amazon and diversify your business on other platforms to grow holistically!
Other platforms do not necessarily include other marketplaces. They could include selling on your own website, selling via social media channels like Facebook, Instagram, and other relevant channels.
Package Your Products to Attract Customers
If you save up for packaging, you can give your product an edge by opting for personalized packaging where you can send your buyer extra items, discount coupons, freebies, etc. Along with personalized packaging, you can also choose branded packaging.
How to Maximise Profits on Amazon
When you decide to sell on a platform like Amazon, you must make sure that your business is profitable. Here are a few tips and tricks you can adopt to maximise profits:
Product bundles and promotions
From a gains standpoint, product bundles and discounts provide less risk and greater advantages. Buyers prefer purchasing during sales to gain a discount. This method is advantageous as the high volume of sales enables you to get discounts. Thus, you will encounter lower competition.
Capitalise on the competition
When you have major brands as your competitors in your niche, it will be harder to rank better than their products. You will be able to grab only an insignificant portion of the business. You need to help your products gain higher ranks on Amazon to sell better. You can increase your rank by:
- Identifying your key competitors
- Identifying the right keywords
- Using PPC campaigns to target better
- Using set pricing and buy box alerts on your competitors
- Leveraging reviews and ratings
Effective inventory management
You need to have robust inventory management strategies, otherwise having a profitable business will become tedious. A product going out of stock can be a detrimental situation for a business. Amazon frowns upon it too.
Repricing strategies
When you want to enhance your profits on Amazon, you must track the prices of your products periodically. With changes in trends and demands, you will need to alter the prices of your products on the platform.
Amazon advertising
PPC campaigns are a brilliant addition to your marketing strategies on Amazon. A well-designed PPC campaign can bring you great business and improve your ranks. With sponsored advertisements and increased popularity, you must certainly incorporate them to scale your business.
Holiday sales
The use of festival sales and holiday events can help you drum up a large business. Amazon itself has several sales that allow you to increase your business. You must be sure to stock up on your products before such sales go live to maximise sales and profits.
Choose the Most Optimal Fulfillment Option
As mentioned before, Amazon offers three fulfillment models.
- Fulfilled by Amazon
- Amazon Easy Ship
- Amazon Self Ship
Here is a brief comparison between the three models to give you a better idea of which is best for your business
| Attribute | Fulfilled by Amazon | Amazon Easy Ship | Amazon Self Ship |
|---|---|---|---|
| Amazon’s responsibility | Receive Orders, Warehousing, Packaging, Label Generation & Shipping via Amazon Logistics Network | Receive Orders & Shipping via Amazon Logistics Network | Receive Orders |
| Seller’s responsibility | Send products to Amazon Fulfillment Centers | Warehousing, Packaging & Label Generation | Warehousing, Packaging, Label Generation & Shipping via any chosen courier partner |
Make sure you utilize the model which gives your business the most profit regarding inventory management, storage, packaging, and delivery!
Advertise with Amazon
Amazon provides you with the opportunity to advertise on their website and sell more. The sponsored brands and products you see upon searching for something on Amazon are a product of their advertising venture. You can advertise with Amazon by displaying your products on their banner, running video ads and also making sure your product is visible first in the category it belongs to by sponsoring your store or your product. Amazon follows a PPC strategy while charging for its ads. These ads have the advantage of giving you an edge among Amazon’s buyer base. You can opt for them to improve store presence and reach out to maximum customers.
Amazon India offers excellent incentives for growing your business. With a massive customer base, you can leverage a lot from Amazon and impact many more users if you sell smart and save on whichever aspect you can!
