Start Your Own Amazon Marketplace Business

Amazon has millions of customers worldwide and is one of the largest online retailers of all time. Amazon Marketplace allows retailers and companies to use the Amazon website and selling tools to sell their products. Starting your own business on Amazon Marketplace is simple and inexpensive, and has the potential to be a lucrative venture.

Why Amazon Marketplace?

Amazon Marketplace gives you the benefit of millions of potential customers and a global platform for selling your goods. It offers helpful selling tools that allow you to compare prices with other sellers, keep an eye on the competition and track your products. Amazon Marketplace also makes it simple to accept payments, process returns and manage your account.

What can I sell on Amazon Marketplace?

Amazon Marketplace allows you to sell a wide variety of products. However, Amazon forbids the sale of some products, including tobacco, alcohol, adult toys, medications, firearms, mobile phones, magazine subscriptions and gift cards. Have a look through the Amazon website to see the kind of products currently available for sale, as this will give you an idea of which items you will be able to sell.

How much does it cost to sell on Amazon Marketplace?

Amazon Marketplace separates sellers into two categories: casual and professional. Casual sellers must sell less than 35 items per month. Casual sellers pay a set completion fee for each item sold, along with a referral fee of 17.25% of the sale price. For electrical items, the referral fee is reduced to 11.5%. Professional sellers can sell more than 35 items per month and have more seller tools at their disposal, such as the bulk listing tool. Professional sellers pay a monthly subscription fee, on top of the completion and referral fees. Referral and completion fees vary for professional sellers, depending on the category of the item. Other services and tools are available for a fee, such as the Fulfilment by Amazon service.

What is Fulfilment by Amazon?

Fulfilment by Amazon is a paid-for service provided by Amazon. If you choose to use the Fulfilment by Amazon service, Amazon will store your products in their fulfilment centres. When a sale is made, Amazon will pick, pack and ship your product directly to the customer. In addition, Amazon handles customer service issues for you. Fees for the Fulfilment by Amazon service vary but, for many businesses, this service saves time and money, as it takes away a great deal of the hard work and reduces storage costs, time spent packing and shipping and so on.

What else do I need to know about selling on Amazon Marketplace?

An Amazon Marketplace business is relatively easy to set up, and support is provided for new sellers. However, it is important to read the rules of selling carefully before you offer any goods for sale. Amazon has strict rules regarding shipping, payment, returns and general conduct on their website. You must comply with these rules in order to continue trading.

By Jasmine Stone