Amazon listing fundamentals

Amazon listing fundamentals

Amazon has become a household name and a globally popular e-commerce platform. According to Forbes Advisor, Amazon accounts for the highest market share of all the e-commerce platforms, with a 37.8% share of e-commerce sales. Rightfully so, the first thing that comes to mind when considering online shopping is, undeniably, Amazon. The influence Amazon has on its buyers is immense. So, it makes sense why many sellers would approach Amazon to list and sell their products.

However, there is an entire procedure one needs to follow when it comes to Amazon listing. Moreover, if you are starting, there are certain points you need to be mindful of while adding and listing your products for the buyer to view and make a purchase. Let’s look at some Amazon listing fundamentals that will help you understand how to make the most out of the platform.

Top Amazon listing fundamentals

Choose a selling plan

Start your Amazon selling journey by first choosing a selling plan for your products. Amazon offers two types of selling plans, Individual and Professional plans. The Individual plan will be the default setting when creating the account. You can opt for the Professional Account too.

  • Professional Plan

Many merchants consider this plan over the Individual one. If you wish to avail advanced selling tools and Amazon advertising, you should go for this plan. The plan costs $39.99, excluding referral fees.

  • Individual Plan

This plan is best for sellers looking to sell only a few items (less than 40) or hasn’t decided to start selling yet. With limited features and benefits, this plan costs $0.99 per item sold, plus referral fees.

Amazon Selling Fees

The Amazon Selling Fees may differ from category to category. Before depositing your share to the seller account, Amazon takes a portion of each item sold.

  • Referral Fees

Amazon charges referral fees for all the products sold on the platform. The price is charged variably based on the product category of the item sold. The fees range from 6% to 45%, depending on the item and category.

  • Closing Fees

Closing fees are only charged on items from the media category. Sellers pay an additional $1.80 closing fee per media item sold and the referral fees.

How to sell products on Amazon

  • Match or create products

While offering products to the buyers, there are two options you can choose from. You either match your product with an existing product from Amazon’s product catalog or create a new product and add it to the catalog. Ensure that you don’t add a new product listing if one already exists, as it is a violation of Amazon policies.

  • The three basic ways of adding a product to Amazon
  1. One-by-one method using the ‘Add a product’ feature in the Amazon Seller Central
  2. Upload inventory files to the Amazon Seller Central
  3. Use a 3rd party automated feed solution

What is ASIN No.

You will frequently hear the term ASIN Number once you start selling on Amazon. ASIN stands for Amazon Standard Identification Number. Every product on Amazon has an ASIN No. Every new product you add to the Amazon catalog generates a new ASIN number.

Product listing requirements on Amazon

You must be mindful of a few requirements when adding your product listings on Amazon. Additionally, you are required to turn in high-quality product listings for SEO and conversions. If your listing fails to meet the standards, it will affect your product’s visibility to the buyers. Hence, following the requirements and maintaining quality is of utmost importance.

  • Amazon product listing requirements
  1. Product Title of up to 200 characters max.
  2. Bullet points to summarize the key features and benefits of the product.
  3. Description with an easy-to-read format.
  4. Images to improve click and conversion rates.

What are Amazon FBA and FBM

Merchants are offered two options to store and fulfill their products on Amazon. They can either manage all the logistics independently or outsource it to Amazon.

  • Fulfillment by Amazon (FBA)

With FBA, Amazon stores your entire inventory in their warehouses and ships it to the customer. Amazon also handles customer support, and items are mostly sent with 2-day prime shipping.

FBA comes with its benefits, although when you use FBA, you ought to pay certain charges for inventory storage and fulfillment charges, including picking, packing, storing, shipping, and customer support services.

  • Fulfillment by Merchant (FBM)

As the name suggests, Fulfillment by Merchant (FBM) is when the seller manages the storing, shipping, and customer support by themselves. However, if the seller wants to offer Prime-fulfilled products, they must enroll in Amazon Seller Fulfilled Prime.

What is Amazon Seller Fulfilled Prime

We know the Amazon Prime Membership and its benefits as a buyer. With Prime Membership, buyers are eligible for free shipping and fast delivery. However, if you are starting as a seller on Amazon, you might need to familiarize yourself with seller-fulfilled Prime.

Amazon’s Seller Fulfilled Prime allows FBM merchants to list their items as Prime-eligible. Customers don’t like paying for the shipping and quick delivery charges, so making your products Prime eligible will increase the chances of buyers purchasing. But please note the merchant will bear the shipping cost.

Enrolling in Seller Fulfilled Prime requires no fee, but merchants must meet strict performance standards and complete a trial period. Hence, to be eligible to apply for the program, one needs to build an excellent record of seller performance history.

 Wrapping Up

Amazon can be an excellent platform for many merchants, especially when starting. But listing your products and acquiring space on Amazon takes a lot of work. Not to say that it is complicated to make the most out of selling on the platform; focus on fulfilling all the Amazon policies and standards, and from there on, it will be smooth sailing!

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