How to Start an Amazon Business: Your Guide to Reaching Millions of Customers

The rise of online marketplaces like Amazon has made it easier than ever to start selling online. With a few simple steps, you can create your own Amazon business and gain access to millions of potential customers.

If you are ready to start this exciting journey, our comprehensive guide on how to start an Amazon business is your essential resource. It covers everything you need to know, from setting up your account and choosing your products to marketing your business and fulfilling orders.

Regardless of how experienced you are at selling online, Amazon offers many opportunities to reach a global audience. With our guide, you will be well on your way to launching a successful online business.

How To Start An Amazon Business UK

1: Set up an Amazon Seller Account

Embarking on your Amazon business journey begins with creating your seller account. The intuitive setup process guides you through each step, requiring essential details. Make sure you are fully prepared with the following information:

• Business Email Address or Amazon Customer Account: This will be your primary point of contact with Amazon, so choose one you check regularly.
• Chargeable Credit Card: You will need this for any fees associated with your seller account.
• Valid Passport or National ID: This is for identity verification, a crucial step in ensuring a safe and secure marketplace for sellers and customers.
• Company Registration Details: If you have them, have your company registration details ready, including your VAT number, if applicable.
• Phone Number: Amazon may need to call you for verification or other important matters.
• Bank Account: This is where Amazon will deposit your hard-earned profits! Make sure it is a valid account that you can easily access.

Having these ready will simplify the sign-up process, allowing you to focus on the more exciting aspects of launching your Amazon business.

Amazon's platform eliminates the need for a separate e-commerce website, providing you with a ready-made online shopfront. However, establishing the appropriate legal entity for your business is crucial. Your Company Formations can assist you in navigating this process, ensuring your business is structured correctly.

With your Amazon seller account and legal entity in place, you will be well-equipped to start selling and reaching millions of potential customers.

2: Selecting the Right Selling Plan for Your Amazon Business

Amazon offers two distinct selling plans tailored to different business needs:

• Individual Selling Plan: This plan is ideal for those starting out or selling fewer than 35 items monthly. You will pay a flat fee of 75p per item sold, making it a cost-effective option for smaller volumes.
• Professional Selling Plan: If you anticipate selling more than 35 items a month, the Professional plan may be more suitable. You can list an unlimited number of items for a monthly subscription fee of £25, making it a scalable solution for growing businesses.

Amazon applies a referral fee to each sale regardless of your chosen plan. This fee is a percentage of the total transaction value and varies depending on the product category. It is essential to factor in these fees when pricing your products to ensure profitability.

Choosing the right selling plan is a crucial step in your Amazon journey. Carefully consider your sales volume and growth projections to select the plan that aligns with your business goals.

3: Conduct Thorough Research

When working out how to start an amazon business on the right foot, it is crucial to understand the market landscape. Conducting thorough market research and competitive analysis will help you identify trending products with healthy profit margins in less saturated niches.

Here is how you can gain valuable insights into what's currently selling well on Amazon UK:

• Explore Amazon's Bestsellers Lists: Amazon's bestsellers page is your treasure trove of product ideas. While achieving a bestseller rank takes time and consistent sales volume, it provides a snapshot of consumer preferences.

Ask yourself:

• Can you offer a unique twist on a popular product?
• Can your product cater to a specific niche or address an unmet need?

By analysing these lists, you can uncover hidden opportunities and make informed decisions about your product selection. Remember, a well-researched product is the foundation of a successful Amazon business.

Setting Profitable Prices: A Key Consideration for Amazon Sellers

When pricing your products on Amazon, it is crucial to consider your profit margin after accounting for all expenses. This includes FBA fees, Amazon referral fees, storage costs, and other incurred charges. A good starting point for your profit margin is around 25-30%. This ensures you factor in all costs while maintaining profitability.

Remember, this is just a recommendation. You can adjust your pricing strategy based on your specific product, market competition, and business goals. Review your pricing regularly to ensure it remains competitive and profitable in the ever-changing Amazon marketplace.

4: Listing Your Products on Amazon

The range of products you can sell on Amazon is vast, but it is essential to understand the specific requirements for each category and brand. While some categories are open to all sellers, others necessitate a Professional seller account or approval to sell. Certain products may even be exclusive to Amazon and unavailable to third-party sellers.

To offer branded products protected by intellectual property rights, you must be the brand's legal owner or an authorised reseller. It is crucial to familiarise yourself with Amazon's intellectual property policy for sellers in Seller Central.

For a comprehensive overview of product categories, restrictions, and approval processes, refer to Seller Central Help. If you plan to utilise Fulfilment By Amazon (FBA), review the specific FBA product restrictions to ensure your chosen products are eligible.

By understanding these guidelines, you can confidently select and list your products on Amazon, maximising your chances of success in the marketplace.

5: Creating Your Product Listings

To sell your products on Amazon, you must create compelling product listings in Seller Central (or via API). Each listing serves as your product's digital shopfront, providing potential buyers with essential information and enticing them to purchase.

A well-crafted product listing includes:

• Product Identifier: A unique code such as GTIN, UPC, ISBN, or EAN that identifies the exact item you are selling. You can obtain a UPC code from GS1 or request an exemption if applicable.
• SKU (Stock Keeping Unit): You create A product ID to track your inventory effectively.
• Offer Details: Specify the price, product condition (new, used, etc.), available quantity, and shipping options.
• Product Details: Provide a clear and concise product name, brand, category, description, and high-quality images that showcase your product from different angles.
• Keywords and Search Terms: Incorporate relevant keywords and search terms to ensure your product appears in customer searches.

If another seller already offers the same product, it will be matched to an existing listing, simplifying the process as some details will be pre-filled. However, if you are introducing a new product to Amazon, you must create a new listing from scratch.

6: Launching Your Amazon Business and Building a Strong Brand

Congratulations! You have reached the exciting phase of launching your products on Amazon UK. However, to maximise your success, consider these additional strategies:

• Elevate Your Brand Identity: Differentiate yourself from competitors by branding your products with your unique label or logo. Many manufacturers offer custom branding services, extending your brand identity to packaging.
• Amplify Your Reach with Amazon Ads: Amazon's advertising platform empowers you to promote your products effectively. Start with a modest budget and gradually scale your marketing efforts as your brand gains traction. Pay-per-click (PPC) advertising offers targeted visibility, while social media campaigns can further expand your reach.
• Content Marketing: The Power of Your Own Voice: Create a blog to share valuable content related to your products. Informative blog posts can attract potential customers, establish expertise, and drive traffic to your Amazon listings.

Combining these strategies can build a strong brand presence, attract a loyal customer base, and propel your Amazon business to new heights. Remember, success on Amazon requires ongoing effort and adaptation. Continually analyse your performance, refine your strategies, and stay ahead of the competition to achieve sustainable growth.

7: Fulfilment and Shipping

When it comes to fulfilling customer orders, Amazon offers two distinct options:

• Merchant Fulfilled Network (MFN): This entails handling storage and shipping yourself, adhering to customer-selected delivery time frames. While providing complete control over logistics, MFN demands meticulous inventory management and timely dispatch.
• Fulfilment by Amazon (FBA): Leveraging Amazon's robust infrastructure, FBA involves sending your inventory to Amazon fulfilment centres, where it is stored, packed, and shipped on your behalf. FBA also encompasses payment processing and customer service, alleviating operational burdens.

While FBA's comprehensive services appeal to many, especially new sellers, it necessitates careful consideration. Setup can be time-consuming, and eligibility may depend on sales performance.

Regardless of your chosen method, product selection significantly impacts shipping logistics. Opt for items that are easy to ship, avoiding fragile items requiring intricate packaging. Prioritising small and lightweight products can also minimise shipping costs. Additionally, obtaining product samples before finalising your supplier ensures quality control.

By strategically assessing shipping options and product attributes, you can optimise your Amazon business operations, streamline fulfilment, and enhance customer satisfaction.

Conclusion

With this comprehensive guide, you now possess the essential knowledge to start on your Amazon selling journey. From setting up your seller account to optimising product listings and navigating fulfilment options, you are equipped with the tools to build a thriving business.

Here at Your Company Formations, we understand that starting a business involves more than selling products. That is why we offer expert guidance on establishing the correct legal entity for your Amazon venture, ensuring you have a solid foundation for growth and compliance.

Ready to take the next step? Contact Your Company Formations today and let us help you transform your Amazon aspirations into a successful reality.