How to sell on Amazon from Russia: step by step instructions. How to sell goods on Amazon for hundreds of thousands of dollars a month, being in Russia Selling on amazon pitfalls

Evgeny Malyar

# Online business

The annual turnover of the Amazon online store exceeds $100 billion.

Article navigation

  • How to make money on Amazon
  • Some details
  • What Amazon provides sellers
  • Pricing
  • Scheme of work
  • How to sell on Amazon from Russia
  • Step-by-step instructions for launching a store
  • On the book trade
  • Registering on Amazon
  • Dropshipping on Amazon
  • Top Selling Items on Amazon
  • How to list an item on Amazon
  • Promotion Methods
  • Affiliate on Amazon
  • What Sellers Say About Businesses on Amazon
  • Initial investment
  • Reality or fiction
  • conclusions

Among the various Internet resources that allow you to receive a stable income, the site amazon.com stands out. It offers a variety of products that meet any consumer preferences. The topic of the article, however, will not be the opportunity to purchase something on Amazon, but how to make money on it. How is this e-selling service different from others? How can you enter this business? How much money is needed for this? What is the course of action? If this information is of interest, you should be patient and carefully read the text below.

How to make money on Amazon

To start, just a little history. In 1994, US citizen Jeff Bezos founded Amazon, and a few years later he registered the website of the same name. The name of the company is reminiscent of the Amazon River, and, obviously, should evoke associations with an unlimited flow of goods. Commercial activity began with the book trade, then, in 1998, the assortment was supplemented with discs (CD, VCD, DVD, MP3, games, programs, etc.) It is believed that Bezos' business started from scratch: he did not even have money for a normal office desk , and therefore he used home-made furniture, assembled from improvised materials. However, the businessman himself later explained this fact not by need, but by fundamental savings.

The easiest way to learn how to make money on Amazon is to take a special online course. With it, you will learn how to earn $3720 per month via the Internet. Details here.

The business idea, today declared as a public opportunity to make money without investments (not exactly, but almost), did not arise immediately. At first, Amazon was the most ordinary online store, and only a few years later Bezos came up with the idea of ​​shifting the cost of buying goods to other entrepreneurs. His company takes on many of the concerns of partner sellers, for which it receives a considerable percentage from them, covering its costs and bringing huge profits.

The business is currently booming. 75% of Americans have become regular customers of the online store. Every second, the site receives over three hundred orders. More than two million sellers participate in the system and earn money. Question: how to become one of them?

Some details

A feature of the site is the huge capacity of the market, which seems to have enough space for everyone. The resource is designed to meet the demand of consumers in countries and regions characterized by the highest solvency of the population (USA, Canada, EU and Japan). There is a warehouse infrastructure with commodity stocks formed by sellers. This is the explanation for the high conversion: its percentage exceeds 10%, while on other sites even 2% is considered a good indicator.

Conversion - the percentage of real buyers in the total number of visitors.

What Amazon provides sellers

Despite the apparent simplicity of the scheme of work, its organization is very complex and is implemented by high-tech means. The processes are labor-intensive, which is indirectly confirmed by the feedback from the firm's staff members involved in logistics and warehouse operations: they often complain about excessive exploitation and rigid procedures.

The essence of the services is that the site provides:

  • taking orders from customers;
  • delivery of goods;
  • security of payments and settlements;
  • resolution of conflict situations on complaints.

A person who decides to start a business on Amazon must decide on the assortment of goods and purchase it from a supplier, also paying for delivery to the warehouse.

Pricing

In practice, one should be prepared that, on average, a unit of goods purchased for three US dollars will be offered to the final buyer for $13.

An approximate price calculation is as follows:

  • cost, including delivery to the USA and customs clearance - $3;
  • advertising - $1;
  • site commission - $5;
  • the seller's profit is $4.

Scheme of work

The Fulfillment by Amazon (FBA) customer experience technology has five steps:

  1. The seller-participant selects a product that he considers promising and pays for it with delivery to the Amazon warehouse.
  2. The company receives the goods and stores them.
  3. The buyer makes a choice and pays for the product.
  4. Amazon accepts payment and ships the product to the consumer.
  5. Settlement is made with the seller and, if necessary, after-sales service is carried out.

Now that all the principles of business on Amazon are theoretically clear, we can move on to practice.

How to sell on Amazon from Russia

Trading on Amazon is most often carried out according to a scheme involving the purchase of goods in China and its sale in the United States or other countries characterized by high solvency of the population. At the same time, the seller's citizenship does not play any role: his task is to find positions that are in demand and pay for the consignment with delivery. A Russian who decides to start this business will probably take an interest in the sequence of his actions.

How to become a seller, what steps should be taken for this and how much money is needed to start?

Step-by-step instructions for launching a store

Choice of commodity items. Probably, this step, being the first, is also the most responsible. Amazon sells a titanic amount of goods, it is extremely difficult to come up with something original and original, and there are a lot of factors that determine the correct choice. Experienced traders are advised to start thinking by looking at the categories listed in the Departments option, for example:

  • home, garden and tools;
  • sports and outdoor recreation;
  • beauty and health;
  • automobiles and manufactured goods;
  • toys and children's goods.

Unfortunately, the entire menu is presented in English, and knowledge of it at a high level dramatically increases the likelihood of success on Amazon. You can, of course, use electronic translation programs, but they too often demonstrate their imperfection, expressed by distortion and even complete loss of meaning.

Another tip is to offer buyers a product in which the seller is an expert. You should not try to trade, for example, accessories for pets, if the entrepreneur has never had a puppy or kitten.

The third possible selection method is statistical. Amazon has a Best Sellers Rank for buying activity, and you should be guided by it. However, again, on the advice of people who know, excessive fanaticism is harmful in this case too. The most popular positions attract a huge number of sellers, a “flea market” arises, and in this struggle, as always, the one who orders the largest consignment of goods wins. It is best to opt for something in the middle in terms of popularity and try, when ordering your own product, to try to provide it with advantages that competitors do not have.

The dimensions of the package are also a criterion. Anything that doesn't fit into the 18, 14, and 8 inch (1" = 2.54 cm) box and weighs more than two kilograms is likely to be prohibitively expensive due to the hefty shipping charges.

You should also choose a product taking into account the price. The Amazon commission is 15-30%, and at the same time it is higher for cheap products (their processing, packaging and shipping are more laborious). Therefore, trading positions worth less than $12 is not always economically viable.

Certification is required for a number of products (rules of the Fulfillment program). If the supplier provides all the necessary documents - great. But you should ask about their availability before buying.

The seasonality of sales may not be so bad. But it is still better to start with goods that are sold all year round.

Provider. Having decided on the nature of the product, you can look for a company that offers it on the best terms. This task is also not easy, since the price-quality ratio cannot always be optimized immediately. Most often, a trial batch is indispensable. If you already have experience working with some suppliers, then this is a big plus. The topic of supplier selection is too complex to cover in a short text of one article.

Registration. Creating a seller account on amazon.com will be discussed in detail below. You should register after making the final decision to start a business and choosing a product.

Brand. It is profitable to sell goods under your own brand on the site. The brand provides a better memory and creates a reputation. Registering a mark in the United States will cost $2,000. However, this is only a reminder of what will need to be returned to later. There is no need to start with the official registration of the brand, but it should be invented.

Ordering the first batch of goods. No one is immune from mistakes, therefore it is best to start from a batch of several hundred products (depending on their price). Payment for goods is made with delivery to the warehouse of the online store. At the same time, one should be prepared for the fact that transportation costs may be commensurate with the cost of the product. A small number of units are advised to give away for free in order to get feedback (at least two or three dozen, without them the trade may not go at all).

Business development. Based on the first results, the seller draws conclusions about the prospects of the chosen direction, the pros (cons) of the product, and further purchases. If successful, they will increase.

Learn how to make money on Amazon

On the book trade

Literature trade is a traditional area of ​​the site. The sale of e-books on this site could be a great boon for domestic authors, especially since the technical requirements for the design of texts are very simple. However, there is a problem, and for many it is significant. The amazon.com resource is not positioned for a Russian-speaking consumer.

The books are currently offered in six languages: English, French, German, Spanish, Portuguese and Italian. If the author has the possibility of a high-quality literary translation, then there certainly can be prospects. In Russian, a book can be exhibited under a foreign title, but it is difficult to guarantee or predict successful sales.

Registering on Amazon

Getting an amazon.com account as a seller is easy. Step by step instructions include the following operations:

  1. Enter the option Your Seller Account (“your seller account”). There are two registration options: "individual" or "professional". Both of them have their merits and demerits.
    INDIVIDUAL can sell up to 40 units of goods per month, and for each sale, in addition to the commission, the site will deduct one dollar from the profit. There is no mandatory monthly payment of $40 required.
    PROFESSIONAL, on the contrary, pays forty dollars, but does not deduct a dollar from each sale. There are no sales restrictions either, so the benefits are obvious.
  2. Fill out the forms provided, including name, seller name (brand), phone number, country of residence, email address, bank card number, etc. Please note that amazon.com does not perform fiscal functions, that is, it does not monitor the payment of taxes . Therefore, if the country is Russia, then the seller will have his own settlements with the Federal Tax Service of the Russian Federation, and he does not owe anything to the American budget.
  3. Verify your account by phone.

Data verification takes several days, after which you can start working.

Dropshipping on Amazon

Dropshipping is such a sales system in which the buyer receives the goods directly from the primary supplier, with whom the seller cooperates through an intermediary. In some cases, such operations are acceptable, but the rules clearly indicate their inadmissibility.

Dropshipping directly contradicts the principles of the amazon.com website, according to which the buyer should only know about him and no one else. Actually, this is the main advantage of the trading platform. For a violation expressed in an attempt to carry out dropshipping, the perpetrator is waiting for the ruthless blocking of the account without the right to restore.

Some sources indicate that they allegedly have step-by-step instructions for circumventing this ban, but experienced sellers do not recommend experimenting. In addition, even in the case of hypothetical success, apart from an increase in the workload, nothing awaits the entrepreneur.

Top Selling Items on Amazon

How to choose a good product line has already been briefly mentioned above, but this issue is so important that it deserves more detailed coverage. Of course, no one will give specific recommendations regarding the assortment (in the spirit: “trade phones - this is a sure thing!”). In each case, it is necessary to calculate the cost, to which you need to add a commission and various overheads, including promotion (advertising). The resulting figure gives an idea of ​​the likely level of competitiveness of the price of goods in comparison with the offers of other sellers.

As in any other sector of the world market, the most important thing is to find your own niche, in which, at least for a while, comfortable positioning will be provided.

The advice of experienced participants is to make a list of possible product options. Then, positions that are questionable or completely unacceptable can be excluded from it.

The seller should rely only on himself and his own intuition, and all other tools are just a help. In any case, suppliers will strive to sell their products, and praise its business as usual for them.

If a good direction is found, but the point is uncompetitive price, then there is nothing wrong with adding Chinese goods to the assortment of European, Japanese or American products (in fact, this is basically what everyone does). The wider the choice of the buyer, the more likely the seller.

How to list an item on Amazon

Technically, displaying a product in a shop window is quite simple. For this you need:

  • go to the site and click the Sell on Amazon option;
  • click the option to start selling;
  • form a description of the proposed product with keywords that fully reflect the essence of the product. If the offer is unique, you must create its article;
  • add product images (size no more than 1.5 Mb);
  • set a price taking into account the competitive situation and own profitability. It should be remembered that too cheap goods can scare away the buyer.

Promotion Methods

  1. Listing optimization. The right choice of keywords makes it easier for the buyer to find the product he needs.
  2. Lucky image. The more attractive the product looks on the virtual storefront, the more likely it is to be sold.
  3. Offer through the FBA service. The services of this promotion program help make the product more visible.
  4. Holding shares. You can attract a client not only by lowering the price, but also by other pleasant surprises: loyalty points or free delivery. However, do not forget about discounts.
  5. Wide international coverage. Amazon is considered a global site, so it makes no sense to get hung up on sales in only one country. Just because a product sells well in the US doesn't mean it won't sell even better in Japan, for example.
  6. Convenient delivery. Sometimes it makes sense to overcome the desire to save money and choose a more expensive transport company. A satisfied customer will give a good review, and reputation often brings profit.

Affiliate on Amazon

Of course, the online store has its own affiliate program to attract new customers. Its organization largely coincides with the stimulation of other selling platforms, but pleases with high percentages of rewards, which also grow along with turnover. The principle is simple - links leading to commodity items are placed on available Internet resources. It is best to use your own website or blog.

Before you earn, of course, you should register on amazon.com. Just like in many other affiliate programs, remuneration is accrued regardless of whether the client bought exactly the product that he viewed at the beginning, or some other.

The resource requirements are:

  • it must be registered to a real person who has confirmed his identity;
  • the name of the site should not contain the word "Amazon";
  • buyers should be aware that the site is partnering with amazon.com through an affiliate program.

There are no special requirements for the characteristics of the site. It can be just created or already having high attendance.

  • writing a title text informing about the site and the products presented on it, listing their advantages;
  • availability of contact information;
  • maintaining your own thematic blog.

The percentage of remuneration depends on the number of products sold thanks to affiliate links, as shown in the table:

The withdrawal of earned funds is carried out through the international payment system ePayService, on which you also need to register.

What Sellers Say About Businesses on Amazon

People who have decided to start earning are quite naturally interested in whether this plan can be realized, including without investments. Comments and reviews on this subject illustrate the degree of financial literacy of the population. To clarify the picture, one should first answer two simple questions:

  1. Is it possible to make money in any trade (regular, offline) without spending at least some amount?
  2. Is there a 100% guarantee of a profitable sale of the purchased goods?

Every person who has experience in trading, even petty speculation in the dashing nineties, will answer both questions in the negative.

At its core, the Amazon platform is no different from any other store, except for the comfortable conditions created by sellers. Making money on a website is just as difficult as in any business. Failure to understand this reality can lead to large material losses.

Initial investment

Some sellers believe that a business here can be started with two thousand dollars of capital. Theoretically, this amount should be enough for:

  • purchase of the first batch of goods in China;
  • its delivery to a warehouse located in the US or the EU;
  • initial promotional activities;
  • $40 "Professional Entry Fee".

It is clear that the larger the amount, the higher the chance of success, expressed in profit: a larger batch causes a lower entry price.

Reality or fiction

In the process of activity, an inexperienced seller can get a negative experience if his product is not as popular as he wanted, which is later expressed in negative reviews. However, this happens not only on Amazon.

Among the reviews, sometimes there are complaints not even about the selling site itself, but about the organizers of courses that teach how to make money on it. If you believe the former listeners of such programs, then this is a real "divorce". For some reason, people who allegedly teach some special methods do not want to earn a lot of money here, but teach this to others on a paid basis. The skepticism towards those who divulge the "secrets" of a profitable craft is quite understandable. This phenomenon is also not unique, and applies not only to earnings on the American site.

You have heard a lot about Amazon, perhaps even succeeded in the field of shopping, you liked their service and features. We thought a lot, we approached the issue of our own sales for a long time, there were doubts about the language and specifics, but earnings on Amazon beckoned, and you made up your mind! Just let's immediately, before all this "selling" rigmarole begins in your life, we will discuss a number of points without which selling on Amazon is impossible.

The article will become not so much a direct step-by-step guide as an introductory part, a prequel or an occasion for analyzing the significant points and circumstances associated with such a type of business as making money on Amazon.

To start creating a seller account on the American site, or use an existing (buyer) account for sales, you must have a full-fledged account abroad. Why are we talking only about the American site?

If only because the European Amazon will definitely require additional statements and bills from you, a driver's license, etc. confirmation. Speaking of a foreign account, we are not talking about a certain Russian-American account, say on Paypal, but a full-fledged account in a foreign bank.

We have previously covered the issue of such a means of payment as the issuance of a Payoneer card with a provided account in the United States. If you have such a means of payment, then this is only half the battle. And here's the nuance. Do you know that one of the most condemned offenses in the United States by society and authorities is tax evasion? No, no, we are not talking about any offshore schemes, we are talking about a seemingly “simple”, but in fact a very serious misconduct on the part of a legal entity or individual.

The words above are not moralizing, but preparing you for the main Russian legislation related to existing foreign currency accounts abroad. The essence of this speech boils down to the fact that if you are not ready to work in this direction (and we don’t discuss the option of infantility like “I didn’t know”), then you shouldn’t even start a business on Amazon.

Until June 1, all Russian citizens who have accounts in foreign banks must report to the tax service. You will have to tell about the movement of funds on the account: how much money you received, how much you spent and how much is left.

Recall that the requirement for citizens of the Russian Federation to report on foreign accounts appeared as a result of amendments to the law "On currency regulation and currency control."

According to currency legislation, if you did not report the account at all and the Federal Tax Service eventually became aware of it, you will have to pay a fine of 4,000 to 5,000 rubles. Penalty for late informing - from 1 thousand to 1.5 thousand rubles. The penalty for not having time to provide documents on the movement of funds on the account is approximately the same: 10 days or less - from 300 to 500 rubles, more than a month - from 2.5 to 3 thousand rubles. Repeated violation will cost 20 thousand rubles.

Violation of the tax legislation of the Russian Federation "costs" more. If you didn't report your overseas account to the IRS at all, and still received income from it for many years, that's tax evasion. In this case, the Federal Tax Service may require additional taxes and issue a fine: from 100 thousand to 300 thousand rubles. depending on the outstanding amount. Thus, having discussed the tax moment, we will continue by moving on to the essence of our article.

Before registering, immediately decide what exactly you want to sell. Keep in mind that over 20 product categories are open to all sellers, and at least 10 more are only available to professional sellers. We note right away: if you are an individual, perhaps you should start with a simple, non-professional account, despite the first free month available.

The Professional plan allows you to sell an unlimited number of products for a monthly subscription fee of $39.99. Individuals pay no monthly fees, but pay $0.99 per item sold. Moreover, both types - professional and private, pay additional sales fees when the product is sold. Regarding commissions, as you understand, the fees are not the same. There is a very useful link where everything is explained in detail.

We only add that for newcomers to Amazon, trading can be very diverse: more than 20 categories for sales will be open to you. Items in these categories may be listed without special permission (approval) from Amazon. Moreover, some categories allow you to place positions only in the lists of new products.

Products that fall into the category of things that require approval can only be placed after receiving it from Amazon. Moreover, as an incentive for a paid subscription, there is a provision that only sellers with a paid subscription of a professional plan can sell such types of goods. But that's not all. To register your available listing with a product, you need to find a suitable product (if available on Amazon), and more often buy (EAN / UPC code). There are special services on the network for this need, Google and ebay will help you.

Amazon's restrictions are designed to help enforce warranties and maintain a high level of liability for sellers that meet certain product quality and listing standards. These standards help Amazon customers feel confident buying in any category and variety of products. But that's not all. Remember we talked about taxes? Once again, only about the American ones.

It is important for you to know that your taxpayer identification information will be required to be submitted to Amazon in the future. Please note: Sellers are required to provide tax identification information on Amazon if they are classified as a professional or are individuals whose successful sales limit exceeded 50 in a single calendar year.

Whether you are ready to solve similar and other interrelated issues in the future, everyone decides for himself. Whether or not to file a tax form, report expenses or not, pay taxes or not is up to you. Just keep in mind: in case of non-information, your account will be blocked. Scary?

But everything is not so tragic. The fact is that for Russian citizens who live outside the United States and do not have American citizenship, selling on Amazon does not entail the obligation to pay taxes to the US Internal Revenue Service (IRS). The issue of taxes on Amazon Seller Central is solved in this way. Even before the start of your sales, you will be asked to take a survey - a sort of tax interview, where you have to answer the questions posed.

And only later, after passing this farrowing on the issues of paying taxes to the IRS, tax questions for you will be removed. The fact is that on Amazon, there has never been, and never will be, a mandatory requirement to carry out activities only through their FBA warehouse. The decision how to work is yours.

Thus, we decided: we will act as private traders, without a professional account. If you already have an account, it is enough to start selling. Ask how to trade on Amazon? Nothing could be simpler: there is already a Sell Your Stuff link in your account menu, you just need to click on it.

The whole difference is that when you first register for a sales account, you are persistently offered a paid, professional and advanced account. However, this can be safely avoided by using an existing buyer account for sales, as we described above. However, you cannot avoid filling in all the details, changing the forms of payment and accepting payments, and various verifications and checks.

And then, as soon as you uncovered your Pioneer, deciding to link it to your account, how did you get this:

Screenshot from Amazon.com

A request to the support system of this payment instrument answers that: “... Please note that Amazon has placed restrictions on the use of prepaid cards. For more details, please check out this post on the Amazon support page.

You can use any other credit card to verify your account (this may be your local bank's credit card), this will not affect the receipt of payments through the Global Payment Service..

What a twist! It turns out that base legislation, tax interchange make themselves felt? Yes. You didn’t forget that Amazon will transfer payments to the foreign account you specified? There is also the fact that Payoneer offers us two types of registration:

A) Our local bank transfer when you withdraw your funds to your local bank account in local currency: receiving payments via US Payment Service - 1.00% of the total amount per payment + Wire Transfer - USD - $3 per transfer.

B) Prepaid MasterCard. You can use it to pay in stores or online, as well as withdraw money from ATMs around the world. Here, the commission for the annual maintenance of the account will be $29.95. You should also add to the costs the amount for reissuing your card - $ 12.95 for three years + commission for withdrawing money from an ATM or cash payments through a cash desk or bank branch - $ 3.15 + commission for withdrawing funds at the rates of a local bank.

It turns out that in the case of withdrawing funds to the Pioneer card, it is not very profitable to withdraw small amounts. It makes sense to wait for savings of $300-400, and only then withdraw them.

Let's continue. Amazon only needs your checking account and bank BIC. To register a seller account, you will need a card from which commissions will be deducted if suddenly there is not enough money in your account. Current Amazon fees are charged at the time of transactions, and annual fees are deducted from your account. Thus, it is required to keep a certain amount in the account.

For this purpose, our Russian card is connected. As a solution, it is worth giving the following recommendation: you indicate a card with a normal account in a Russian bank (for example, VTB-24 or another large bank, such as Sberbank of the Russian Federation) or any available available card, but only with a positive balance. And as a tool for withdrawing funds, you specify your "Pioneer".

Many who have already debugged the scheme of work in e-commerce earlier resort to delivery via the Russian Post. Which is completely justified and logical. Actually, the question arises on the agenda, what to do in the case of working with Amazon?

Yes, by selling your goods on Amazon, without resorting to warehouse services and customs clearance troubles, you can still send your parcels yourself using our Russian Post. To this end, in your seller settings, you need to specify the longest, maximum possible delivery times. And then - there was a sale, the status changed to unshipped, which means that the payment went through and you can send it. We immediately indicate the shipment and insert your track number in the Amazon Seller Central settings.

However, many sellers send their goods to Amazon's FBA warehouse using the Russian Post. 50/50 Risks: If US Customs does not consider your incoming package as a commercial shipment, it will safely enter the Amazon warehouse (FBA) without any problems.

But the timing and risks, including customs declaration, as you understand, are yours. However, this is not the most “thin place”. It is important to say that when you block your account, your goods in the warehouse are destroyed. It is for this reason that not everyone works with an FBA warehouse. Alternatively, competitive warehouses like FBA exist in the US.

Another fairly frequent question is whether it is possible to create a new product listing with a different barcode if a similar or almost identical product has been sold on Amazon for a long time? Of course, yes, if you, say, supplement it with a new option - for example, a smartphone case + stylus. Provided that this product has not been exhibited by anyone before you, you can safely list a similar product separately, and not in the general catalog along with competitors. In this case, this will not be a violation of the rules of Amazon.

On this, summing up all the information received, let's finish with the introductory part!

The solution to the above problems is to build a business outside of our country, and the profit should ideally be in dollars so that it is not affected by exchange rate fluctuations. For example, owning a business in the USA is an attractive idea, isn't it? First thought: “No, no, no, it’s too expensive and complicated.” Not at all. With Amazon, you can start an online business with an investment of between $3,000 and $10,000.

Why Amazon

Captain Obvious reports that it is the world's leading online retailer with over 3 million shipments daily to 185 countries.

People from all over the world come here in search of anything and, characteristically, they find it. If they don’t find it, maybe it’s you who will offer them the necessary product?

Partnering with Amazon is probably the easiest way to build a business in the US.

In fact, you don’t even need to leave your home for this, everything can be done via the Internet. You immediately turn to the largest consumer market in the world. The more potential buyers, the more impressive the possible profit.

Another advantage is that payments are made in dollars. I think it's not worth explaining why this is good: the current rate speaks for itself. Any crisis will be unimportant to your business, and profit will no longer depend on the economic situation in the country.

Amazon - the place where you can find almost everything

Amazon has a very interesting seller support program that takes a lot of the hassle out of managing the movement of goods along the way from supplier to buyer. The online retailer takes care of all storage and delivery.

How to do business with the FBA program

The marketplace is vitally interested in attracting new sellers, and with them buyers. Hence the very attractive terms of cooperation.

The FBA (Fulfillment by Amazon) program is a real gift for entrepreneurs who don't want to spend time organizing delivery and storage, finding reliable employees and talking to customers on the phone.

When you order a batch of products from a supplier, you send them directly to the Amazon warehouse. There the goods are stored until they are purchased. After that, warehouse workers form a parcel, which is delivered to the buyer. It turns out that everything works without your participation.

Such an elegant solution eliminates a significant portion of the problems. No need to talk with curious customs officials, figure out what duties are now, and puzzle over where to store this wealth. Just entrust all the worries to someone who will definitely cope with them better.


Fulfillment by Amazon makes doing business a lot easier

The cost of participation in the FBA program is calculated individually for each product, taking into account its dimensions, weight, storage, packaging and delivery costs. The most profitable service costs for goods of a standard size. In Amazon's view, these are items weighing up to about 9 kg, the length, width and height of which do not exceed 45.7, 35.5 and 20 cm, respectively.


With such input, there is no need to further prove why working with Amazon is more convenient than trying to launch your own online store in Russia. Creation and promotion of the site, organization of storage facilities, search for a sane courier service - that's another hemorrhoids. After all, we want to earn money, and not look for the most effective way to complicate our lives, right? Therefore, we choose a proven platform from which it is easier to build a profitable business than anywhere else.

We open our business

All of the above sounds pretty simple, but in practice, you may encounter moments that can drive any beginner into a stupor. Where to look for interesting things for sale? How to draw up a product card? Finally, how to stand out among thousands of the same single sellers and find your buyers? With such questions, you should contact those who already have experience of cooperation with the trading platform and know how to achieve maximum profit with minimal investment.

I am an entrepreneur, internet marketer and training author. In 2014, he moved to Thailand and began to conduct all business remotely. Far from home, with no salespeople, no offices, no warehouses, no production facilities, I manufacture my products and sell them in the US market.

I have the most perfect client department, delivery service, robotic warehouse and the most powerful production. The entire business works remotely with minimal participation from me, and I have never even held some of my products in my hands.

Igor Kustov

A logical question: if everything is really so profitable, why shoot a profitable topic and arm potential competitors with your own hands? This is Amazon. There are a lot of sellers here, and even more buyers, so there is enough space for everyone.

Training begins with a free course "". Here they explain to you on the fingers what Amazon is and why it is more profitable to trade here than to try to create your own store from scratch. At the same time, you will learn how to establish interaction with suppliers and the trading platform.

In short, the scheme looks something like this:

  1. Determine a relatively free niche and select a product with which you will enter the market. It turns out that sometimes people need really strange things. A cage for washing cats, for example. There is a demand - there will be an offer.
  2. Find a supplier. Here, at first, it is most logical to turn to the Chinese comrades, who have everything in general that you can think of. Then you can look for local suppliers or establish cooperation with European or American manufacturers.
  3. Order samples to ensure the quality of the product. At this stage, it makes sense to work with several suppliers at the same time, from which you will choose the best one.
  4. If everything suits you, you purchase a consignment of goods, which is sent straight to the Amazon warehouse.
  5. Register the product and fill out the card with its description. Sales success is your sole responsibility, for the benefit of the buyer, Amazon provides a rich set of tools to increase sales.
  6. Customers purchase your products, Amazon ships them from its warehouse, and you cash out profits and order new batches of products from suppliers so that the business does not stand idle.

6 steps to a successful business

The next stage is the online intensive "". This is a kind of guide to action for those who have firmly decided to try their hand at international trade.

The training takes place in the form of a webinar. In 3-4 hours, you will get a complete picture of the launch of sales on Amazon, learn about the intricacies and pitfalls of this process, and also receive valuable practical advice on organizing sales - up to specific developments for starting a business. Feel free to ask questions if something is not completely clear. The recording of the webinar remains at your complete disposal, so at any time you can review everything and clarify the exciting moments. By the way, it’s worth reviewing: it will be difficult to fully assimilate a sufficiently large amount of information at one time.

And the final stage is the master group "". This is a kind of parachute jump accompanied by an instructor.

For almost three months, SalesHub experts will generously share with you theoretical and practical knowledge, templates and techniques for effective sales organization. Their advice will help you get started and deal with typical newbie challenges. In the end, they themselves faced exactly the same thing, but managed to get out of difficult situations as winners.

If, after completing the program, you realize that the soul of trading does not lie at all, you will be refunded all the money given for training. There is a 30-day money-back guarantee for the online intensive and the master group.

And a last word of advice. Don't be afraid to try new things and do things you haven't done before. Learn from the pros and work hard to implement their advice. Truly complete independence is definitely worth it.

Amazon, as a trading platform, offers ample opportunities to earn money for everyone. At the same time, the profit received from Amazon can reach several million rubles a year. You have probably come across paid courses and webinars - Amazon per million, with similar content. In this article we will try to reveal all the nuances of this business. Right now and for free!

The main advantage of doing business on Amazon is that one person can build a highly profitable business with high automation. And the business will generate income comparable to that of large online stores. All this is accessible and clearly reveals the business model that Amazon offers to use.

For those who don't know what Amazon is, it's the world's largest electronic retail marketplace. In addition to the main function, Amazon offers many different services to everyone, which allows you to build your business on this site.

What is a business on Amazon

The Russian-speaking part of the Internet is still poorly represented or does not use the Amazon site at all. Not for business, not for shopping. At the same time, in the same USA, an individual business on Amazon is one of the most popular types of earnings on the Internet and is a full-fledged profession. Although, no one prevents our compatriots from starting their own business on this site. The Internet knows no boundaries, which is what you need to use.

Of course, this type of business can be treated with skepticism. This approach is preferred by people who are not self-confident. Believe us, these people are skeptical about any business model, they can safely say that any business will not work and will definitely go bankrupt, even proven for centuries. Let's not follow their beliefs. Our article is for those who are self-confident and do not miss a single opportunity to earn.

Despite the fact that Amazon is a platform similar to an online store. And the business processes running inside are not much different from this understandable business model. Inside Amazon, there are many more innovations that offer everyone great business solutions that even the most popular online store cannot implement. This is what sets Amazon apart and makes it the fastest growing e-commerce platform in the world. And the main advantage of this site is the maximum coverage of potential consumers. that are set to buy. It remains only to sell them and earn.

Also, do not forget that when you start your business as a seller on Amazon, you receive comprehensive support from this corporation. Since Amazon itself is directly interested in your success (taking a set percentage of your sales).

Types of Business Organized on Amazon

It is generally accepted that Amazon provides two opportunities to become a seller. First- independent, which implies that the seller himself will support his sales (we are talking about storage, delivery, packaging, etc.), the so-called M.F. ( Merchant Fulfilled) Seller- independent seller, performing their duties. Second- the seller who used the special program Amazon FBA (Fulfillment By Amazon). This program delegates the responsibilities of the seller to Amazon, now the platform specialists will be responsible for the storage, packaging and delivery of goods to the buyer. The seller only needs to find consignments of goods and send them to Amazon warehouses. But, more about this scheme below.

Business Benefits Through Amazon FBA

While the FBA program is very handy for those new to the Amazon business. More and more professional sellers, formerly MF Seller, are leaning towards the convenience of FBA. By introducing FBA, Amazon tried to fully automate individual business and help all sellers on its site, by the way, this program also facilitates the work of the site itself. The use of the FBA program is strongly encouraged by the platform. The working principle is as follows (assuming you are already registered as an Amazon seller):

  1. You have a product that you want to sell through Amazon. This product must comply with the laws and be legal. If you do not have such a product, then you should take care of its search. Our compatriots most often lean towards Chinese manufacturers (which is also done by sellers from the United States), more advanced Russian sellers are looking for unique authentic goods from local manufacturers.
  2. After a batch of goods is found, the seller creates a detailed page describing his offer on the Amazon site. This page is not yet visible to direct buyers.
  3. Amazon puts forward certain requirements for the design and documentation of a batch of your goods. After completing which, you send your batch to the Amazon warehouse (FBA warehouse).
  4. After receiving your batch, it is checked for compliance with the documents and your description that you made on the product page (p. 2). If successful, the product is accepted for storage, and the page becomes visible to all buyers. By the way, all goods sold through FBA have a special “Prime” mark, which increases customer loyalty and interest in buying. Since they have unlimited trust in such a product.
  5. The customer purchases your item. Amazon employees process, pack and ship his purchase from the FBA warehouse. Since the product is distributed through the FBA program, all kinds of additional services of Amazon itself can be applied to it, for example, fast delivery "Prime", which allows a buyer participating in this program to receive a purchase for free in 2 days. Which also pleases customers.

As an Amazon business owner, you do the first three things. All other care falls on the shoulders of the company's employees. It is very convenient and relieves you of many different problems. At a minimum, you don’t have a headache for shipping and complaints, since the responsibility is no longer yours and the buyer will deal with Amazon, and not with you. Your concern is to constantly ensure that the consignment of goods is always in FBA warehouses. That is, to fulfill the first three points. Of course, FBA warehouses are not free and require additional costs. However, the goal of any businessman is to make sure that income exceeds expenses. Using FBA is transparent and calculating your income with expenses is quite simple for a person who decides to sell on Amazon.

Naturally, having studied this scheme, you have already guessed about the work according to the MF Seller scheme. In it, the entire responsibility lies with the seller. From the first to the last paragraph. And do not forget that even working according to this scheme, you will need to pay Amazon for special labels that need to be placed on the outer packaging of the product (the so-called branding). If you are a warehouse owner and understand logistics so much that it costs you practically nothing, then, naturally, it will be easier for you to work according to the individual seller scheme. In all other cases, we recommend that you start a business through Amazon FBA.

A few words about product search and sellers on Amazon

In order to sell something, you first need to buy something. We will not open America or any magic for you if we say that all sellers on Amazon are divided into two types (and this is not a workflow).

Amateurs and professionals. Hobbyists are those who sell from time to time and, most often, they are resellers. That is, they sell their things, unnecessary gifts, buy things at sales with big discounts and resell them at higher prices. This scheme is beneficial to those who make good profits without Amazon. They make extra money on Amazon.

The professionals are the ones who work for Amazon and make the bulk of the profits. They don't resell. They buy in bulk from manufacturers. As noted above, this is usually China, or authentic local producers, whose products are very difficult to buy abroad. The key secret of professional sellers is that they have an understanding of Amazon and know its features.

The peculiarity of Amazon is that the bulk of buyers on it are residents of the United States and Europe. Therefore, all goods sold through Amazon must meet the requirements of the audience and take into account their mentality. What is good for a Russian is very hard for a German. Remember this. After all, the most important and important thing in business on Amazon is to find a unique product that will be in demand. The rest is a matter of technology and the FBA program.

  • Translation

Why is it profitable to sell on Amazon?

The Internet has blurred the boundaries between countries and continents, allowing you to do business from anywhere in the world or buy online from any continent. You can, for example, buy right now in one of the 2000 online stores of the service located around the world and get a cashback for your purchase, while being in Russia. It makes no sense to be limited to local markets given these conditions. We present to your attention a series of articles dedicated to e-commerce, from which you can learn a lot about foreign markets and the mechanics that are used there. Today we will talk about how to start selling on Amazon.


Secret number 1. Content quality

Images
- Main images - white background, no watermark or text
- 1000 px or more for zoom feature
- At least 500px on the longest side (main picture)
- Preferred JPEG format
- Photos from different sides at different angles
- Check your category requirements for product photos

Titles
- One of the most important items in any market
- Components of your title are used in Amazon searches
- Clothes/shoes have their own requirements
- Original title = no more than 80 characters
- Create your title, including the main parameters of the product
- Notify Amazon if the catalog titles don't match your product

Options
- For the most convenient selection of basic parameters (such as sizes, colors, etc.), they should be in the same list

Explore what options are available in your category
Example: Size, Color, Item Package Quantity

Use the options that apply on Amazon
Example: Blue, not Dark Blue

Make sure child elements are unique
Example: Men's T-shirt, Blue XL; Men's T-shirt, Blue Large; Men's T-shirt, Blue Medium.

Product information
Make sure that your product is described in detail and qualitatively

  • The text of each paragraph should be short and meaningful.
  • It is advisable not to use more than five items in the list
  • The list of characteristics is located directly next to the picture
  • Do not use special characters in the description
  • The description must be true and exactly match the product.
  • Use Unique Attributes in Product Descriptions (Amazon Recommended)

Secret number 2. Optimize your keywords

Keywords are used by buyers to search for products on Amazon. By using the most relevant keywords, you will help shoppers see your product at the top of Amazon's listings.

1. Put yourself in the buyer's shoes - think about how they are looking for a product?
2. Experiment
3. Use single keywords instead of phrases
4. According to the rules, you can use no more than five keywords for each product
5. Avoid Keywords That Are Already Used in Headlines
6. Do not use competitors' brands and trademarks as keywords to avoid suspension of listings

Optimize Your Keywords: Attributes
Don't forget to browse other categories to expand your search for products with other criteria on the Amazon marketplace. Note:
+ What is the product used for?
+ Target audience of your product
+ Where the product is used and what it is

Secret number 3. Win BUY BOX

Win a BUY BOX: Criteria

1. Competitive price (Research competitor prices and consider using Repricing Software)
2. Fast and efficient delivery (preferably free)
3. The product is in stock and in sufficient quantity
4. Positive customer feedback
5. Low cost for returning goods by the buyer

Win BUY BOX: Amazon Repricing Software

1. Use Repricing Software as one of your BUY BOX strategies
2. The BUY BOX engine uses Repricing Software and automatically adjusts the price of the item
3. Minimize Margins to Increase Sales
4. The price of your product should not be radically different from the price of competitors
5. Repricing Software is also used to control and find errors in price lists

Secret number 4. Make the Most of the FBA Program

The Fulfillment by Amazon (FBA) program is a program that allows you to sell more goods, not worry about stocking them in warehouses, and forget about shipping problems!
How FBA works:
- Wholesale send goods to Amazon (you can send any quantity of goods)
- The item will be stored at the nearest Amazon Fulfillment Center to your customers
- Amazon will pack and ship your product worldwide - Amazon will take care of customer service 24 hours a day, which in turn can increase your customer service rating

FBA Benefits
Benefits for sellers using FBA:
1. Access to Amazon Prime Members
Amazon Prime Members are users who have access to fast and free shipping
2. Your customers automatically qualify for “Super Saver Shipping”.
Super Saver Shipping rewards its customers with free shipping on their purchases of $25 or more.
3. Responsibility for working with customers is entirely on the shoulders of Amazon. You never interact directly with customers who have purchased your product through Amazon.com. With FBA, you don't have to waste time on petty complaints, dealing with returns, or replacing lost or stolen items.
4. If your item is stocked at Amazon Fulfillment Centers, you have a better chance of winning a BUY BOX
5. More profit through cost reduction using the FBA program
6. Easy access to customers who buy at the last minute (pre-holiday purchases) and customers from other countries
7. Get easy access to international clients
8. Huge shipping discount through partnership between Amazon and UPS (United Parcel Service)
9. Use FBA to sell a product from your own website or from eBay.

Secret number 5. Sell ​​worldwide

Global markets with Amazon
- Global sales with Amazon
- Convenient export with the FBA program

According to research by Nielsen and PayPal, the cross-border online shopping turnover will reach $307 billion by 2018, and the number of cross-border online shoppers will reach 130 million.

Global Markets

Amazon Canada
- 16th most visited site in Canada
- A large number of categories
- Access to Amazon Prime
- Possibility to store goods in our own warehouses or in Amazon warehouses through the FBA program

Amazon Europe
- England, France, Germany, Spain, Italy
- More than 164 million active buyers in 2013
- 30% of total Amazon sales were made by third party sellers
- Amazon.co.uk has over 20 million unique visitors per month. The visits of Amazon.de and Amazon.fr were 24 million and 13 million respectively.

The Amazon FBA Export program is a great way to sell overseas

Products under the FBA Export program are stored in Amazon warehouses
- The list of these products on the site is available for international customers
- There are no additional fees beyond your FBA fee. Using the Amazon FBA Export program metrics, you can analyze in which country your product is selling the most profitably.

Amazon provides quality shipping worldwide.
Amazon Global offers high quality shipping to international destinations. Whether a customer orders a product to their own address or sends a gift, Amazon has no problem delivering it anywhere in the world.

Secret number 6. Use Promotions

Are you running promotions on your website? Don't forget Amazon!

Types of major promotions on Amazon
1. Free shipping. Great for last-minute pre-holiday customers (make a discount on fast shipping)
Example: Spend $150 or more and get free 2-day shipping

2. Special discount
Example: spend $50 and get $5 off

3. Buy one, get the second free

4. Additional bonuses (discount for the next purchase)
Example: Spend $50 and get a $10 gift card

Promotions: Best Practices and Strategies
The best strategy is a direct discount on the product, but you can use other discount options, such as
- scheduled discount (e.g. black friday, cyber monday)
- promo codes and online coupons
- discounts on certain products

Secret number 7. Keep a close eye on your metrics

The Amazon trademark stands for quality customer service
Play by the rules!
The higher the reputation, the more sales!

Keep up with customer metrics
Monitor the quality and effectiveness of your sales daily
- Order Defect Rate<1%
- Pre-Fulfillment Cancel Rate:< 2.5%
- Late Ship Rate:< 4% (доставка с опозданием)
Quality delivery is the key to success
- Deliver on time and provide package tracking

Order Defect Rate
The three factors of this metric are:
- React quickly to negative reviews
- Fulfill warranty obligations
- Send money for returned goods without delay

Communication with clients
Amazon tracks how quickly you respond to customers

Be in touch 24 hours a day!

Measure everything!

In the following articles, we will go into more detail about some of the Amazon programs that we have mentioned here.