Amazon stands as the largest online retailer in the U.S., dominating both revenue and market share in the e-commerce sector. In the fourth quarter of 2024, third-party sellers were responsible for 62% of paid unit sales on the platform, marking an all-time high. While selling on Amazon offers immense opportunities for brands to reach a vast customer base, navigating the platform's complexities requires a strategic approach.
At PBD Worldwide, we specialize in helping brands streamline their Amazon operations, ensuring compliance, efficiency, and scalability. With extensive experience supporting third-party Amazon sellers, we've compiled our knowledge into this step-by-step introductory guide. Whether you're looking to start selling on Amazon, create compelling product listings, set up eCommerce fulfillment, or build a profitable presence, this guide is designed to assist you every step of the way.
Beginning your Amazon selling journey involves several key steps:
Begin by setting up your Amazon seller account. This profile serves as your brand's storefront on the platform, allowing you to manage product listings, track sales, and interact with customers. Amazon offers two primary selling plans:
Choosing the right plan depends on your business goals and sales projections. Once you decide which plan is right for you, visit Amazon Seller Central to begin set-up. You’ll need to provide all necessary information, including business details, tax information, and bank account details. Ensure all information is accurate to avoid delays in account approval.
Once you've registered as a seller on Amazon, it's essential to tailor your account settings to align with your business needs. This ensures smooth operations and a professional presence on the platform.
Account InformationStaying informed is crucial. Under "Settings," select "Notification Preferences" to:
During the Amazon seller profile set-up, make sure to connect your bank account to receive payments for items sold. Amazon will automatically transfer funds on their payment schedule.
As you begin selling, it's essential to comprehend their payment schedule and procedures to manage your cash flow effectively.
Payment Schedule
Amazon typically operates on a bi-weekly payment cycle. This means that every 14 days, Amazon initiates a transfer of your available funds to your registered bank account. Once the transfer is initiated, it may take an additional 3 to 5 business days for the funds to appear in your account, depending on your bank's processing times.
Accessing Payment Information
To monitor your earnings and payment status:
Navigate to your Amazon Seller Central dashboard.
Access the "Payments" section to view your Statement View, which provides detailed insights into your transactions, fees, and upcoming disbursements.
Regularly reviewing this information helps ensure accuracy and keeps you informed about your financial standing.
Considerations for Fulfillment by Merchant Sellers/Seller-Fulfilled Orders
If you are a Fulfillment by Merchant seller, whether fulfilling independently or utilizing a 3PL (not using Fulfillment by Amazon (FBA)), it is important to note that Amazon may hold a portion of your funds to cover potential returns or refunds. Maintaining a positive account health and promptly addressing customer inquiries can minimize these holds and ensure smoother financial operations.
Once your account is set up, you are ready to set up your first listing. Create detailed and engaging product listings that highlight the features and benefits of your offerings. High-quality images, clear descriptions, and accurate information are crucial to attract potential buyers. Use relevant keywords to improve visibility by incorporating search terms customers use. Optimized listings enhance discoverability and help to drive higher conversion rates.
When introducing a product not yet available in Amazon's catalog, you'll need to create a new listing. This process ensures your product is accurately represented and easily discoverable by customers.
1. Access the 'Add a Product' Tool
Navigate to your Amazon Seller Central dashboard and select the "Add a Product" option. Since your item is unique to the platform, choose the option to create a new product listing.
2. Provide Essential Product Details
Complete the required fields with accurate information:
Product Name: Clearly state the name of your product.
Brand: Specify the brand associated with the product.
Manufacturer: Enter the manufacturer's name.
Product ID (UPC/EAN): Input the Universal Product Code (UPC) or European Article Number (EAN) to uniquely identify your product.
If you have your own internal Stock Keeping Unit (SKU) system, you can assign a SKU to help manage your inventory.
3. Understand Amazon's Unique Identifiers
Upon completing your product listing:
ASIN (Amazon Standard Identification Number): Amazon will assign a unique ASIN to your product(s), which helps in cataloging items and searchability.
FNSKU (Fulfillment Network Stock Keeping Unit): If you opt for Fulfillment by Amazon (FBA), Amazon will generate an FNSKU. This barcode is essential for tracking your inventory within Amazon's fulfillment centers and ensuring accurate order processing.
Properly setting up your product listing with these identifiers is crucial for efficient inventory management and providing a seamless shopping experience for your customers.
Decide how you'll handle order fulfillment. Options include:
Choosing Fulfillment by Merchant (FBM) on Amazon offers sellers greater control over their operations. However, managing the complexities of storage, packing, and shipping can be challenging. Partnering with a third-party logistics (3PL) provider like PBD Worldwide can streamline these processes, allowing you to focus on growing your business.
1. Streamlined Operations
Managing warehousing, inventory, and shipping in-house can be complex and resource intensive. A 3PL provider handles these aspects, allowing you to concentrate on core business activities such as product development and customer engagement.
With PBD, you retain full control over your inventory management, shipping schedules, and return processes. Our flexible solutions adapt to your business needs, providing transparency and agility in your supply chain operations.
2. Cost Efficiency
By leveraging the infrastructure and expertise of a 3PL, businesses can reduce overhead costs associated with staffing, storage, and transportation. This partnership often leads to more predictable expenses and improved profit margins.
Outsourcing fulfillment to PBD can lead to significant cost savings. By leveraging our established infrastructure and expertise, you can reduce overhead costs associated with warehousing, staffing, and shipping, improving your bottom line. We have strong, long-standing relationships with all major carriers and pass these savings on to our partners. The average PBD partner saves 20% on freight expenses when making the switch!
3. Scalability
As your business grows, a 3PL can adapt to increasing order volumes without the need for significant capital investment on your part. This flexibility ensures that you can meet customer demand during peak seasons and expand into new markets seamlessly.
PBD's scalable solutions can accommodate increased order volumes without compromising on service quality. Our nationwide network ensures timely deliveries, helping you meet customer demands during peak seasons and promotional periods.
4. Enhanced Customer Experience & Greater Brand Visibility
Timely and accurate order fulfillment is crucial for customer satisfaction. A 3PL's established processes and technologies help ensure that your customers receive their orders promptly, fostering trust and loyalty.
Unlike Fulfillment by Amazon (FBA), which uses standardized packaging, partnering with PBD allows you to maintain your brand identity through customized packaging and order/sales materials. This personal touch can enhance customer loyalty and set your products apart in a competitive marketplace.
5. Access to Expertise and Technology
3PL providers bring industry knowledge and advanced systems to the table. Their experience in logistics management can lead to process improvements and the adoption of best practices that benefit your business.
PBD Worldwide has extensive experience in managing a wide range of products, including bulky and heavy items. Our tailored solutions ensure that your unique products are stored, packed, and shipped efficiently, meeting Amazon's standards and exceeding customer expectations.
Evaluating Amazon FBA: Pros and Cons
Fulfillment by Amazon (FBA) offers a range of benefits for sellers, but it's essential to weigh these against potential challenges to determine the best fulfillment strategy for your business.
Advantages of Using Amazon FBA:
Extensive Logistics Network: Amazon's vast fulfillment infrastructure ensures rapid delivery, enhancing customer satisfaction.
Prime Eligibility: Products fulfilled by Amazon are eligible for Prime shipping, increasing their appeal to a broad customer base.
Customer Service Management: Amazon handles customer inquiries and returns, allowing sellers to focus on other aspects of their business. This could also be viewed as a disadvantage as Amazon employees are not trained on and/or does not follow your brand's customer service guidelines and expectations.
Cons When Using Amazon FBA:
Storage Limitations: During peak seasons, Amazon may impose storage restrictions, potentially affecting inventory availability.
Fee Structure: FBA fees, including storage and fulfillment charges, can accumulate, impacting profit margins.
Product Suitability: Oversized or heavy items may incur higher fees or may not be eligible for FBA.
Branding Constraints: Products are shipped in Amazon-branded packaging, which may limit brand visibility. **This con is extremely important to consider when building your own audience and brand loyalty.**
Once your products are listed, focus on driving traffic to your listings. Utilize marketing strategies and optimize your listings to convert visitors into customers.
If you have active products listed, it is important to check orders daily, ship items within the timeframe expected, send shipping confirmations to customer, keep pricing information up-to-date and monitor inventory levels. If customers reach out, respond to their questions in a timely manner. All of these will help you gain and maintain success as an Amazon Seller.
At PBD Worldwide, we understand that a strong seller reputation on Amazon is crucial for building customer trust and driving sales. A 5-star feedback rating not only enhances your brand's credibility but also improves your visibility in Amazon's search results.
1. Accurate Product Listings
Ensure that your product descriptions are clear, detailed, and truthful. Accurate listings set the right expectations and reduce the likelihood of returns or negative feedback.
2. Prompt and Reliable Fulfillment
Timely shipping is a key factor in customer satisfaction. Partnering with a reliable fulfillment provider like PBD Worldwide can help ensure that orders are processed and delivered efficiently.
3. Exceptional Customer Service
Respond to customer inquiries promptly and resolve any issues with professionalism and empathy. Positive interactions can turn first-time buyers into repeat customers.
4. Proactive Feedback Requests
After confirming that a customer has received their order, send a thank you follow-up message and request feedback on their experience. This can be done through Amazon's messaging system or by including a note in the package. Remember, it's important to comply with Amazon's guidelines when soliciting feedback.
Utilize Amazon's suite of advertising options to reach your target audience:
Sponsored Products: Promote individual listings to appear in search results and product pages.
Sponsored Brands: Highlight your brand and product portfolio with customizable headlines.
Sponsored Display Ads: Retarget shoppers who have viewed your products or similar items.
These tools can increase product visibility and drive targeted traffic to your listings.
Amazon frequently updates its search and advertising algorithms. Staying informed about these changes allows you to adjust your strategies accordingly and maintain optimal performance.
