Selling successfully on Amazon – this is how it works in the year 2025
Amazon is the largest online retailer in the world. In 2023, Amazon generated 574.785 billion US dollars globally – an increase of 11.83 percent compared to the previous year. In Germany alone, it was 37.6 billion US dollars (approximately 34.8 billion euros). Almost half of the people in Germany occasionally or regularly order from Amazon, and even more research products online using the Amazon search. In other words: For online retailers, selling on Amazon is essential for success. A major advantage is the uncomplicated start. Because anyone who wants to become an Amazon seller does not need to set up their own online shop for this. The Amazon platform offers you as a marketplace seller more than enough to sell your products profitably.
In this article, you will learn what you need for the start. We explain how to set up your Amazon account, which business models are available, and what fees apply. In addition, the next steps will be discussed after your account has been created. You will learn how to find the right products and present them optimally, and find more useful tips that will increase your sales. You will also get initial insights into important areas such as advertising, automation, and international sales.
What you need for the start on Amazon!
Amazon advertises that selling can start with just a few clicks. What do you need to register as an online retailer on Amazon? The following data must be at hand when signing up:
The first three points can actually be implemented quickly. But what about the last point?
Registering a business, paying taxes, and other obligations
In order to sell on Amazon, sellers must register a business. Depending on the federal state, a processing fee applies. In Düsseldorf, for example, it is currently 26 euros for sole proprietors. Additional costs may apply, which must be considered and researched on a case-by-case basis.
Since 2019, sellers on Amazon must also provide a tax certificate. You can apply for this at the responsible tax office and import it into Seller Central. It shows that you, as a seller, are properly paying your taxes.
The type of taxes that apply also depends on the main location of the business and the legal form of the company. From income tax, trade tax, and value-added tax to capital gains tax, there is a lot to consider. Since taxes are composed very individually, it is advisable to seek professional advice from a tax consultant who specializes in e-commerce on this matter.
Other costs that may arise for you include costs for:
What is a VAT identification number and how do I get one?
If you sell goods in an EU country, you must register for VAT in EVERY country where you store your goods or to which you ship your goods. In Germany, you obtain a VAT ID from the local tax office. If you want to expand into the EU, we recommend working with local tax consultants.
When does one become liable for value-added tax?
When you sell on Amazon, you are not automatically liable for value-added tax. VAT liability only automatically occurs once a certain revenue threshold is reached, which you must always keep in mind. If you do not reach this threshold, you can continue to operate as a small business.
VAT liability only occurs when you have generated profits with your business that were higher than 22,000 euros (previously: 17,500 euros) in the previous year and are expected to be higher than 50,000 euros in the current year. If the revenue exceeds this amount, VAT liability applies.
The switch to VAT liability is binding for 5 years. Therefore, think very carefully about whether you choose the small business regulation or the standard taxation.
Selling on Amazon – How to set up an Amazon seller account
After you have done the groundwork to sell commercially on Amazon, it is about creating a seller account in Seller Central. Depending on the goals you pursue as a seller, you can choose a selling plan. The following two options are available:
Selling plan individual seller
If you plan to sell less than 40 units per month, this model is suitable for you. You pay 0.99 euros per sold unit and no base fee. However, options like Brand Stores, FBA, etc. cannot be used.
Selling plan professional seller
This plan is suitable for anyone who wants to earn more than just a small side income. With this subscription model, you do not pay fees per sold unit, but a monthly fee of 39 euros. Additional advertising and analysis options such as A+ Content are also available to you. Furthermore, this plan is suitable for anyone who wants to sell their goods through FBA, as this option is only available in the professional plan.
Becoming an Amazon seller – which business model suits you best?
Before you sell on Amazon, you should first get a rough overview of the current market conditions. Find out what trends exist or which may emerge soon. With some tricks, you can quickly spy on your potential competition on Amazon and learn more about their sales volume.
For extensive product research, sourcing platforms like Zentrada or Alibaba are very well suited. There, you receive project proposals directly on the homepage, including purchase prices, which are important for your calculations.
If you have already gained experience as a seller, it is worth selling the same or similar products on Amazon as well. Are you an established retailer specializing in running shoes? Then offer these on Amazon as well. This way, you benefit from your know-how and also impress on the marketplace with your expertise.
Once you have gathered enough product ideas and know what is suitable for you, you should start a rough calculation. Estimate your sales volume based on your competitors. Set a price range that ensures your profitability (i.e., covers costs and generates profit) and is also competitive. If the product you want to sell on Amazon cannot meet one of these points, you should not include it in your portfolio.
Private label or branded goods: Which is better?
Once you have a rough overview of your options, another decision must be made: branded goods or private label?
One thing in advance: There is no blanket answer as to whether private label or branded goods works better on Amazon. Rather, it is about what interests and goals you pursue as an Amazon seller and how you can achieve them. Familiarize yourself with the different forms, their advantages and disadvantages, to choose the right model for a product. Of course, you do not have to align your entire business with one or the other – you can always decide anew depending on the product what makes more sense.
There are also additional factors that you need to consider when deciding “private label or branded goods?” For example, liability and warranty obligations depend on whether you are a manufacturer or just a third-party seller. The investments are also very different. While you need to build and promote your brand when selling private labels, if you sell branded goods on Amazon, you can rely on the marketing of the brand owners.
With a private label, you have the opportunity to design the entire branding, advocate for sustainable production, or pay attention to fair conditions throughout the value chain – but not without the necessary funds. With branded goods, all these decisions are the responsibility of the brand owner, and you are “just” another link in the chain, which certainly has its advantages and disadvantages.
Selling branded goods on Amazon
Anyone who wants to sell branded goods on Amazon offers a product from an already established brand, such as a nail polish from the brand Essie. The name is well-known, and buyers specifically search for the term “nail polish Essie.” However, the seller is by no means the only provider of the product, and a competition arises for the Buy Box. Only the best offer wins the Buy Box and thus attracts about 90% of the demand.
The competition quickly triggers a downward spiral of prices, and the profit per sold unit becomes narrower and narrower. This can go so far that providers can no longer keep up and are pushed out of the market.
As a seller of branded goods, you can counteract this by using intelligent tools that adjust your prices to the market situation. This way, you can decide for yourself, with the help of SELLERLOGIC Repricer, what minimum and maximum price you are willing to sell your items for. The optimization strategies from our Amazon Repricer range from Buy Box strategy to daily Push to manual adjustments according to your preferences. For more information on which pricing strategies you can use to win the Buy Box, read here:
The advantage of branded goods is clear: the product is quickly found by customers, even if they are not specifically searching for it. The disadvantage: too many competitors are vying for the Buy Box and a dangerous price war begins.
The Buy Box is also referred to as the shopping cart or cart field. Occasionally, alternative spellings such as Amazon Buy Box or shopping cart field are used. The fact is that only one offer holds the Buy Box and receives the approval when a customer purchases the product with a click of the button. Therefore, whoever appears in the Buy Box the most often collects the most orders. Additionally, since 2023, there is now a second Buy Box on Amazon, an alternative purchasing option for customers who do not choose the main seller recommended by Amazon. It is displayed below the main offer on the product page and allows other sellers to offer the same product.
What is the Buy Box?
On Amazon, the Buy Box is defined as the small yellow box in the upper right corner of the product detail page of an item. Through this button, the customer adds the item to their shopping cart. The catch: The same product of the same brand only receives a single product page on Amazon – where all sellers with their offers for this product are accordingly gathered.
Who decides on the placement of the offers in the Buy Box?
The Buy Box is won by the provider who meets the highest customer satisfaction. There are many criteria for the Buy Box that marketplace sellers must fulfill according to Amazon. The providers that meet Amazon’s performance metrics come into closer consideration. These include, for example, shipping time, the rate of order defects, or customer satisfaction with returns.
The bar is set very high, and the battle for the small yellow box is often won by the optimal selling price. If this is too high, winning the Buy Box is very unlikely. On the other hand, smaller price differences can be compensated for, for example, by excellent seller performance.
The most important metrics for winning the Buy Box
| Metric | Definition | Winning the Buy Box |
| Shipping method | Shipping method of the seller | FBA/Prime from the seller |
| Final price | Item price plus shipping costs | The lower, the better |
| Shipping time | How long it takes for the goods to arrive | <= 2 days |
| Rate of order defects | Negative feedback rate + rate of A-Z guarantee claims + cancellation rate | 0% |
| Cancellation rate before order processing in % | Orders with cancellation / total number of all orders | 0% |
| Rate of valid tracking numbers | All deliveries whose shipment status can be tracked | 100% |
| Rate of late deliveries | All deliveries that were delivered later than stated | 0% |
| Rate of on-time deliveries | Deliveries that were delivered on time | 100% |
| Dissatisfaction with returns in % | Number of negative return requests / total number of all return requests | 0% |
| Seller rating and its number | Total number of ratings that the seller has received | The higher, the better |
| Response time for customer inquiries | How long it takes for the seller to respond to customer inquiries | < 12 hours |
| Inventory | How often the seller has no stock available | The rarer the seller is out of stock, the better |
| Dissatisfaction with customer service in % | How often customers were dissatisfied with a response from the seller | The lower, the better |
| Reimbursement rate | How often customers request a refund | The lower, the better |
Sale of Private Label on Amazon
If you want to sell a private label on Amazon, it is primarily about the sale of private label products. What exactly is behind this term?
What is Private Label?
Private Label comes from English and means brand name. Therefore, many retailers also refer to “brands.” Private label products are products that are manufactured for a specific retailer so that they can sell them under their own brand name. As a seller, you can modify the selected products directly from the manufacturer according to your needs or wishes, make improvements, provide personalized packaging, and have your own logo printed on the product.
Whoever wants to become a private label seller on Amazon has to worry much less about the profit of the Buy Box, because since they are selling a product of their own brand, they are usually the only seller on the product detail page (unless they license third parties to sell their brand). If they have attracted a customer to their page and awakened their purchase intention, this customer will most likely buy from this seller.
The disadvantage: You have to take care of the marketing of your private label yourself, as the brand name is hardly known and the listing can sometimes appear quite low in the search results. Unlike branded goods, you do not focus on the profit of the Buy Box, but rather on Amazon SEO and advertising.
Your product detail pages must rank for the right keywords, which requires know-how and a high level of effort. Another major factor is how much competition already exists for these keywords. However, you can find out whether you can be successful with your products even before the launch by conducting an extensive market analysis.
Whoever wants to become an Amazon seller must first find the right product
Whoever wants to sell on Amazon should not only focus on their own shop and products. After all, the best product is of no use if the market is saturated, there is no demand, or the competition is too strong. Those who want to act purely for economic reasons should operate where they can sell as “easily” profitably as possible.
Market analysis
The market analysis should be conducted regularly for all served (or targeted) markets and products to anticipate trends and developments as early as possible. This way, you can jump on the bandwagon early and benefit from it. If competition grows, you can act immediately, and this is only possible if you are not solely focused on your own developments.
Whoever wants to become an Amazon seller must conduct a market analysis. Which tools are suitable for this and how to conduct successful product research can be read in the following articles.
How to offer products: Setting up the first product
After you have created a seller account, you can start selling your first products on Amazon. You have the option to either offer an already listed product – which is usually the case with branded goods – or create a new listing.
If you sell an already listed product on Amazon, you only need to submit an offer (including price, processing time, and shipping details) and will be added as another seller to an existing listing. However, you have no influence over how the page looks for existing product pages. You can find out whether a product is already listed by entering the EAN / ASIN or product name in the search field under the “Add Product” section in your inventory and starting the search. If a match is displayed, you need to add your offer to the already existing page.
Become an Amazon seller – create a new product
If you do not find a product this way, you can create a new one. An identification number must be provided for this. This can be, for example, the EAN (European Article Number). It is also possible to sell products on Amazon without presenting an EAN. In this case, another barcode such as the GTIN or ISBN can be used. If no clear identification number is available, an exemption can also be requested from Amazon. This may be the case for certain auto parts or handmade goods, for example.
When creating a new product that you want to sell on Amazon, set up a new product detail page. For this, you need good, meaningful product photos, a good title, and the description. It is best to focus on good SEO right from the start so that your products appear high in the search results and customers click on your offer instead of getting lost to the competition.
Other important information for each product listing includes the following:
SKU
A SKU (= Stock Keeping Unit) or item number is a unique product identifier used to track inventory on Amazon. The SKU must be included in every inventory file sent to Amazon. It is used to link your products to the corresponding product detail page in the catalog on Amazon.
Product title
Amazon has very specific requirements for all areas of the product detail page. The product title is also subject to certain rules. The title requirements apply to all products on all Amazon marketplace pages. The following four criteria must be met in order for products not to be hidden in search:
Further requirements and tips from Amazon regarding product titles can be found directly on the help pages in Seller Central.
Product descriptions and bullet points
The product description allows for a detailed presentation of the offered product as free-flowing text. Here, sellers can provide general information about the manufacturer or brand, as well as information about the style or the manufacturing process.
Use the field to describe your items in more detail and differentiate the product from similar offers. Here you have the opportunity to describe the unique features of the product, including brand, material, fit, etc. Make sure to write complete sentences and not just limit yourself to bullet points.
However, this does not mean that you should not use bullet points. Bullet points are SEO-relevant and are often among the first things that catch the eye of potential customers. This fact is also recognized by the Amazon algorithm, which evaluates bullet points as correspondingly important.
In Seller Central – under the “Description” section – you can enter the bullet points of your products as an attribute. These will be displayed as bullet points below the title and price.
Very detailed Amazon style guides for various product detail pages can be found here.
Product images
Product images are extremely important if you want to sell successfully on Amazon. They appear in search results and are, among other things, responsible for a higher click-through rate of your product detail pages.
Each detail page in the Amazon shop must have at least one product image. However, Amazon recommends providing six images and a video for each product page. With the help of good images, potential buyers can recognize the product much more easily and decide whether to purchase it or not.
According to Amazon, product images must be clear, informative, and attractive. The first image on the product detail page is the “main image.” This is displayed to customers in the search results. The main image may only show the product against a white background. Additional images should show the product in use or in an environment, from different angles and in various details.
Detailed guidelines for product images can be found in the style guides in the link above or here.
Relevant search terms
Relevant search terms (keywords) can not only be included on a product detail page in the product title, description, or bullet points. You can also enter keywords in the backend, thereby suggesting to Amazon which search terms your listings should rank for.
When optimizing search terms, you must ensure that the maximum allowable number of 249 characters is not exceeded. To achieve this, be careful to avoid word repetitions. For this, you can use hyphens. This allows you to combine different variants of a keyword.
More helpful tips for Amazon SEO can be found here:
Select the right product categories
The selection of the right product category determines, among other things, what sales rank your items occupy in the respective categories. The top sales ranks appear in the respective bestseller lists, which is why a smart choice of the appropriate category is extremely important.
If a product is listed in multiple categories, it has correspondingly many sales ranks. For example, the Vileda broom not only has rank No. 922 in the category “Kitchen, Household and Living,” but also No. 1 in the category “Brooms” and “Sweepers,” as well as rank No. 2 in the category “Shovel & Broom Sets.” It is therefore sold more frequently compared to all other products in the three categories. You can find the sales rank in the product description under the designation Bestseller Rank:
An overview of the current product categories on Amazon can be found here.
Product variants
Check if you can offer a product with different variants as well. The T-shirt can be sold on Amazon in sizes S, M, and L and in colors Blue and Red. Those who use product variants not only address a broader target audience but can also benefit from additional advantages, such as consolidated feedback. Furthermore, this saves the seller a lot of work. Instead of creating a separate product page for each color of the T-shirt, they can simply assign the variants as subcategories of a main page.
Forcing product variants artificially is not only pointless but outright prohibited. A dress is not a product variant of a T-shirt with the same design. Learn here how and where to create product variants!
Product identifiers (GTIN)
In most categories, you must assign product identifiers (GTIN) to your products in order to create new product pages or listings. The GTIN allows the listings to be associated with products that are already present in the Amazon catalog. This ensures that correct product pages are maintained.
Detailed information about GTINs can be found on the pages of Amazon Seller Central.
How to ship your goods on Amazon
Anyone who wants to sell their products on Amazon must decide how their fulfillment will be handled. This includes all steps from storage to shipping to returns management and customer support. The following options are available to you.
FBA = Fulfillment by Amazon
With Fulfillment by Amazon (FBA), the online giant has perfected its processes over the past decades to provide the perfect customer journey. You can benefit from this knowledge by outsourcing your fulfillment to Amazon.
The service portfolio of the FBA program includes the following points:
As a seller, you are “only” responsible for sending your goods to an Amazon logistics center. From now on, Amazon will pack and ship for you.
As you can see from the list, an important advantage of FBA is that you receive Prime status for the products you sell. Sellers who sell on Amazon using FBM do not receive a Prime label. Many customers specifically search for Prime products on Amazon. This guarantees them fast delivery as well as good customer service if something doesn’t go smoothly.
When selecting shipping, you should be aware that FBA is not suitable for all goods. With FBA, you are limited in both price and size of the items to be shipped. Additionally, products that may sit in Amazon’s warehouse for a long time are not suitable. The marketplace imposes high “penalty fees” for this. There are also restrictions on certain products, which are not accepted by Amazon as FBA goods.
FBM = Fulfillment by Merchant
The counterpart to shipping by Amazon is FBM, Fulfillment by Merchant, meaning shipping by the seller. With FBM, the online seller takes care of the packaging and shipping of the goods to the customer, is responsible for inventory, and makes all decisions regarding returns management and customer service.
Our tip for those who want to become Amazon sellers: Fulfillment by Merchant is particularly suitable for bulky goods, for items that may not sell for a long time, as well as for niche products and unique items.
This shipping option has a significant disadvantage: if a product is also sold by FBA sellers, FBM sellers have a lower chance of winning the Buy Box – often regardless of price. Additionally, FBM sellers do not receive a Prime banner and may therefore lose Prime buyers, as they often specifically look for FBA-eligible products.
Prime by seller
Since 2016, Amazon has offered the “Prime by seller” program. With this shipping method, sellers who have their own warehouses and want to handle shipping themselves have the opportunity to receive the Prime label.
To participate in Prime by seller, sellers must demonstrate excellent seller performance. The on-time shipping rate must be at least 99%, and the cancellation rate must be below one percent. These are also important criteria for being able to win the Buy Box. With the Prime logo, the seller commits to offering shipping of goods within Germany within 24 hours and to Austria within 48 hours at no additional cost for Prime customers.
Amazon provides the shipping labels itself and determines the shipper. This can lead to much higher shipping fees than if the shipping were determined by the seller. At the same time, Amazon takes care of customer service and thus also makes the decision when a return is necessary.
What fees apply when selling on Amazon?
One thing in advance: Without a precise cost analysis, it is not possible to predict that you will definitely need to raise amount X, for example, to be able to sell on Amazon. Rather, it is a series of decisions that must be made on a case-by-case basis.
It is clear: Nothing is free, and the online giant gives you nothing. When you sell on Amazon, costs will be incurred that are associated with the delivery of your goods to Amazon customers. But what should you actually pay attention to when calculating the fees for your Amazon business?
Subscription fees
The subscription fees are the fees you pay for your selling plan. Amazon offers two plans – “Professional” and “Individual”.
Selling fees
A commission is charged for each sale, regardless of the selected plan. This is dependent on the category and the country of sale. The percentage Amazon selling fees in Germany range from 5% to 20% and are based on the total sale price – that is, the final price plus shipping and gift wrapping.
A breakdown of the selling fees can be found here.
Shipping fees
If you ship your items through Fulfillment by Amazon, Amazon will charge you shipping costs based on the product category and the size of the item. The Amazon FBA costs were last adjusted on March 31, 2022. Here you will find a detailed breakdown of the current prices for all European Amazon marketplaces in the languages:
Zusatzkosten
Regardless of which shipping method you choose, additional fees may apply
Processing fee for refunds
If you refund your customers for orders that have already been paid, you will receive from Amazon the percentage sales fee minus a processing fee of 5 euros or, if lower, 20% of the percentage sales fee.
Example calculation:
You refund a customer the total sale price of 20 euros for an item with a percentage sales fee of 7%. The processing fee for refunds is €0.28 (20.00 € x 7% percentage sales fee = 1.40 €).
1.40 € (sales fee) – 0.28 € (processing fee for refunds) = 1.12 € (refund from Amazon)
Amazon Advertising
With Amazon Ads, you can showcase your items or your brand on both Amazon websites and external platforms. Amazon offers advertising formats ranging from Sponsored Products or Sponsored Brands to display and video ads, as well as custom multi-page stores. This allows products to be placed even above current bestsellers. Sellers can create targeted advertising campaigns and promote their own offers under specific keywords, products, and categories.
Advertising is optional, but especially recommended for private label sellers to increase brand awareness, promote sales, and quickly obtain reviews or improve organic ranking.
How to sell internationally on Amazon
One of the biggest advantages of Amazon is that anyone can comparatively easily sell on multiple international marketplaces with just one seller profile. This quickly increases reach and boosts sales. The European marketplaces alone offer several million additional potential customers.
However, there are also some challenges here. Apart from bureaucratic specifics, the product page must be adapted to the new market. In addition to mere translation, it should also be considered that some colors or stylistic devices have a completely different meaning in other countries than, for example, in Germany. Therefore, make sure to rely on professional support.
Through the Fulfillment by Amazon Pan-EU program, shipping, storage, and customer support are also handled in the European area – of course, always with the best that Amazon can offer. As a seller, you only send your goods to a logistics center, for example in Spain, and from here the online giant takes over. This way, you also save on shipping fees, as you do not have to deliver to each individual customer abroad separately.
Advertising on Amazon – how to sell successfully on Amazon.
Advertising on Amazon has become essential. While you can stand out from other search results with the help of Amazon Lightning Deals or labels like the bestseller title, the Amazon’s Choice label, you must demonstrate excellent metrics for these options.
One thing you must keep in mind: The top four positions are much more important in organic Amazon search than positions 5 to 10. According to the e-commerce news service Marketplace Pulse, organic rankings on Amazon are becoming less valuable compared to paid ads. Of the first twenty listings that a buyer sees in Amazon search, only four are organic results.
You cannot avoid advertising on Amazon that prominently places your offers in the search results. With the help of targeted advertising, you can either bring your product or your entire shop into the buyers’ view. However, keep in mind that you must first maintain the Buy Box.
You have extensive options available, such as:
The most important tools to sell successfully on Amazon
The diverse tasks and responsibilities of Amazon sellers present several challenges. Whether you are looking for the right product, optimizing your own listing, wanting to adjust your prices automatically, or trying to stand out from the competition: To sell successfully on Amazon, you have hundreds of tools available for various areas as a seller on Amazon.
1. AMALYZE
A frequently used analysis tool for Amazon sellers is AMALYZE. The tool includes, among other things, tools from the following areas:
Thus, the niche and category analysis can provide interesting insights into which seller is selling which product at what price on the platform, how many are using Fulfillment by Amazon, or how the reviews of a product affect its ranking.
In addition, Amalyze evaluates the Sponsored Ads or PPC campaigns. Sellers receive information about whether ads were actually placed for the paid keywords to potential buyers, which keywords competitors are bidding on for PPC ads, and which keywords might still be worth advertising.
2. Hellotax
Anyone selling on Amazon cannot avoid the topic of taxes. Sellers active in Europe must primarily ensure the correct handling of value-added tax (VAT). For this, Hellotax offers a comprehensive solution.
A specially developed software and a team of tax advisors across Europe largely automate value-added tax (VAT). There is a free version of the software that provides online sellers with insights into their tax obligations and relevant metrics. The paid subscription unlocks additional features and allows for the complete handling of VAT. The service offering includes, among other things:
3. SELLERLOGIC
Without good repricing tools, selling on Amazon is not possible. Monitoring product performance – another essential aspect of a successful Amazon business – is made possible with a profit dashboard. Also, when it comes to refunding FBA errors, using a tool designed for that purpose is advisable. SELLERLOGIC offers exactly these services and has been indispensable in the toolbox of many FBA sellers for years.
Repricer
The SELLERLOGIC Repricer works dynamically and intelligently. This means it analyzes not only all relevant data and metrics but also the entire market situation.
To do this, the price is first set so low that the product wins the Buy Box; once this is achieved, the price is adjusted and optimized again. The goal here is to show the highest possible price for the Buy Box. Many other Repricer, on the other hand, only optimize for the lowest price and thus risk a price decline.
Automated repricing can also pay off for private label products. For example, with the SELLERLOGIC tool, price adjustments can be made depending on demand or the time of day.
Business Analytics
SELLERLOGIC Business Analytics was specifically developed for Amazon sellers and provides a detailed overview of relevant product data in a profit dashboard – up to two years retroactively and almost in real-time.
This allows you to represent your performance on different levels, namely in relation to an Amazon account, a marketplace, and even for each individual product. Additionally, you benefit from intuitive operation as well as the ability to filter product data customly.
The tool provides detailed profit and cost overviews. When marketplace sellers know which products are unprofitable and can quickly identify costs that need optimization, informed strategic decisions are possible. Only in this way can the profitability of an Amazon business be maintained in the long term.
Lost & Found
When processing orders in the FBA warehouses, Amazon sometimes makes mistakes as well. This is not surprising given the huge sales volumes. It only becomes frustrating when products are damaged, returns do not arrive, and/or FBA fees are calculated incorrectly.
Amazon is obligated to cover the damage. This is where SELLERLOGIC Lost & Found comes into play. With this tool, FBA reports are searched, irregularities are identified, and reported immediately. This is possible retroactively, and in particularly tricky cases, the expert team from SELLERLOGIC intervenes to ensure the best possible processing and effective communication with Amazon.
Further selection of the most important tools can be found below.
Conclusion
Selling on Amazon is not a matter of 10 minutes, and the starting capital is also significantly above 50 euros. Just the search for a suitable product requires a considerable amount of time and skill. As our article shows, starting involves a lot of effort and can become bumpy for inexperienced sellers. However, with increasing know-how and growing experience, you will gradually be able to act faster when it comes to adapting the business and products to the market conditions.
Without the use of software solutions, it is very difficult to become a successful Amazon seller nowadays. Otherwise, you will make wrong decisions that will ultimately cost a lot of money. Last but not least, the service Fulfillment by Amazon is an important support for aspiring and established online retailers, taking on an enormous number of tasks from commercial goods and private label providers.
Selling on Amazon is therefore a multi-tasking topic where know-how, a spirit of experimentation, and perseverance are very important. So follow Amazon’s rules, invest time in finding the right products, and focus on automating processes – this way, you can build a successful business on Amazon.
Frequently Asked Questions
Amazon is one of the largest online retailers in the world. In Germany alone, the company generated revenue of around 29.57 billion US dollars in 2020. Almost half of Germans occasionally or regularly order from Amazon, and even more research products using Amazon search. Another advantage for marketplace sellers is the uncomplicated start: sellers can sell online without having to set up their own online shop.
In principle, anyone can sell on Amazon. All that is needed is a seller account. However, to be truly successful and generate enough revenue, one should think about their products, a coordinated strategy, etc. Because only those who approach the matter with a well-thought-out overall concept have the chance to snag the coveted Buy Box or appear at the top of the search.
Through Amazon, sellers gain access to over 40 million customers in Germany alone in one go. Technical knowledge for an online shop, a payment system, etc. is not necessarily required. Likewise, sellers do not need to be logistics professionals, as the Fulfillment by Amazon program may handle storage and shipping of the products. Even customer service does not have to be managed by anyone themselves. This way, even small businesses with only one or a few employees can handle the order volume.
There are two broad product types on Amazon: commercial goods are products from other brands that are sold by third parties. Private label, on the other hand, are products sold directly by the brand owner. From a seller’s perspective, it is crucial to know which product type I am selling: with commercial goods, I should try to win the Buy Box, while with private labels, it is more about generating a good ranking in the search.
For this, you basically only need a seller account – either in the basic or professional plan. The latter is already worthwhile from 40 orders per month. However, there is high competitive pressure on Amazon. Therefore, analyze the market, define a strategy tailored to your business, and familiarize yourself with the costs that will come your way.
Image credits in the order of the images: © Aleksei – stock.adobe.com / © roman3d – stock.adobe.com / © roman3d – stock.adobe.com / © Tierney – stock.adobe.com / © Amazon.de
