In this Post, we will discuss What is Amazon and How does it functions? and we will know the different selling plans on Amazon.

What is Amazon and how does it functions?

    Are you the owner of a business or planning to start one? Yes, I am! I'll go through how the company operates and some of the things they sell online in this article. To be honest, I noticed that the majority of people don't know what an eCommerce site is (I'm talking about large corporations), so I thought it would be helpful to go through the basics for those who aren't familiar with them. These steps may be useful if you are new to e-commerce, but after everyone in your circle has completed them, feel free to skip around.

• The icon represents more than 300 million active customer accounts in 180 countries: a computer with the Amazon logo.

• There are over 150 million Prime subscribers around the world.

• Third-party selling partners are expected to generate During Prime Day 2020, revenues are expected to reach $3.5 billion.

The competitive advantage of Amazon

    When you start selling on Amazon, you'll be joining a marketplace with a wide spectrum of sellers, from Fortune 500 firms to artisan merchants selling handcrafted goods.They're all selling here for the same reason: to reach the hundreds of millions of people who purchase on Amazon.

• Third-party vendors have grown to account for 58 percent of all Amazon sales since their inception in 1999.  

• At Amazon third-party sales are increasing at a rate of 52 percent every year (compared to 25 percent for first-party sales by Amazon).

Is Amazon a good fit for my company?

    Yes, to put it succinctly. Amazon sells the most well-known brands. So do up-and-coming brands that will soon be on your radar. Small and medium-sized enterprises thrive here, accounting for more than half of all units sold in our global locations. We want you to develop alongside us, no matter what type of business you have or how big it is.

Before you start selling, make sure you have everything you need.

How can I sign up?

    Amazon has two selling plans (individual and professional, which you might think of as standard and premium) that allow you to sell one item or thousands. Before you begin the registration process, decide which plan is the greatest fit for your firm.

    Professional sellers pay $39.99 every month, regardless matter how many items they sell. Individual sellers pay $0.99 per sale. If you sell more than 40 items each month, the Professional package is a good choice. Don't worry if you make a mistake with whatever technique you choose; you can change your mind at any time.

Plans to sell on Amazon

The Individual Selling Plan on Amazon

• You don't sell more than 40 products every month.
• You don't need any special selling software or tools.
•  You haven't decided what to sell yet.

The Professional Selling Plan o Amazon

• You sell over 40 products per month.
• You want API access and more sales reports.
• You want to use applications like Launchpad or Handmade to sell your products.

To get more information about selling plans on Amazon click here.

There are tools available for brand owners.

To get started, you'll need the following items:

• Make sure you have access to the following in order to finish your registration:
• Numbers for your bank account and routing numbers for your bank.
• Credit cards that can be charged/ Valid information
• Accurate Tax information
• a valid identification card
• Phone number

 What is the cost strategy of selling on Amazon?

Depending on your selling strategy and the products you offer, you may incur a variety of different selling expenses.

Subscriptions Fees

    These are the costs of your selling plan, which vary depending on which one you choose.

• There is no per-item price on the Professional selling plan, which has a flat monthly fee of $39.99.
• On the Individual selling plan, there is a $0.99 fee for each item sold.Selling Fees

Referral fees

    (Which are a percentage of the selling price and vary depending on the product category) and variable closing costs are both levied per item sold (which apply only to media categories).

Shipping Fee

    Amazon shipping prices apply when you fulfil purchases yourself. The buyer's choice of product category and shipping service determines the shipping costs.

FBA (Fulfillment by Amazon) Fees

    For products that Amazon fulfils for you, there are fees for order fulfilment, storage, and optional services (known as Fulfillment by Amazon, or FBA).

To get more details about the Amazon Fee Plansm, Click Here.

Learn more about Seller Central

What is the purpose of Seller Central?

    Once you've registered as an Amazon seller, you'll have access to your Seller Central account. Consider Seller Central your one-stop shop for everything related to selling on Amazon. It's a one-stop shop for managing your Amazon business, with features like uploading product information, updating inventory, managing payments, and accessing helpful tools to help you get started. You'll also be able to keep track of all of your products here.Here are a few examples of what you can do using Seller Central.

• You can keep track of your inventory and make changes to your listings using the Inventory tab.
• Save time by downloading bespoke business reports and bookmarking templates that you use frequently.
• To keep track of your seller's performance, use customer metrics tools.

FAQs