August 18, 2022

Ultimate Guide to Selling on Amazon in 2022

Ultimate Guide to Selling on Amazon in 2022
Ultimate Guide to Selling on Amazon in 2022

Do you know that nearly two-thirds of consumers (more than 90%) in the United States have bought something on Amazon? 


Undoubtedly, Amazon is a dominant power in the online marketing and ecommerce space and is a very profitable platform even for new sellers.


Selling on Amazon gives you access to its large customer base and an effective distribution network. 


If you are looking to start your business on Amazon or perhaps you are already selling on the platform, we have prepared a guide to help you sell effectively and increase sales on Amazon. 


Here's what we will look at in this guide: 

  • How to find out what to sell on Amazon
  • A step-by-step guide for selling on Amazon in 2022
  • What are the costs of selling on Amazon?
  • 4 tips to increase sales on Amazon 

How to find out what to sell on Amazon 

The most important part of selling on Amazon is choosing the right product to sell on the platform. The product you choose will significantly impact your Amazon marketing strategy and the overall success of your business. There are many things you will need to consider when choosing the best product to sell on Amazon. However, let's look at some of the most important factors to consider: 


  • Understand the market: The first step to choosing a product is to research and choose a niche market. Every niche has a customer base. With a niche, you can secure a space for your business and engage with customers who are interested in your product. Examples of niches on Amazon include electronics, fashion, etc. 
  • Consider the demand for the product: In choosing a product, consider the overall demand of the product in the market. You want to avoid products with too many sellers especially if you are just starting on the platform. You can check Google and use research tools to check search volume amongst other factors. 
  • Consider the pricing: The pricing of your product will affect your profit margin. You want to avoid products that are too expensive. Expensive products may increase profits if you sell at a high rate. However, it might not always be the case. When choosing a product, balance is the watchword. Look out for products that are fair to buy and sell.
  • Check the size of the product: Oversized products increase shipping costs which could negatively affect your profit margin. Look for products that have a smaller size and packaging. 

A step-by-step guide to selling on Amazon in 2022 

 guide to selling on Amazon in 2022 

Here's a step-by-step guide to help you sell on Amazon: 

Step 1: Choose a product category 

The first step to selling on the Amazon platform is to choose the product category and product you want to sell. There are over 27 product categories you can choose from. Consider some of the factors mentioned above. Most of these categories may require approval. This is done to retain the quality of products within the category. 

Step 2: Get a supplier or manufacturer

Getting a supplier is the second most important step to selling on Amazon. You need to find a supplier who can consistently stock inventory that will be sold on the Amazon platform. However, getting a supplier could appear tricky. How will you know the right supplier? Well, here are a few pointers: 


  • They are consistent with manufacturing products 
  • The supplier is ethical and law compliant 
  • They are open and willing to communicate with you when needed 
  • They allow a third-party inspection to ensure the quality of the product. 


When looking for a supplier or manufacturer, keep as many options open and compare their deals before choosing your preferred option. 

Step 3: Choose an Amazon selling plan and register 

Amazon provides two selling plans for selling on the platform. You can choose the Individual selling plan or the Professional selling plan. 


The most important thing to consider before choosing a selling plan is the number of products you sell or plan to sell on the platform. If you are selling less than 40 items per month, the Individual selling plan would be ideal for you. On the other hand, if you are selling more than 40 items per month, the Professional selling plan would work best for you. 


The Individual plan costs $0.99 for every item you sell on the platform. The Professional plan costs a one-time monthly fee of $39.99. 


Once you choose a plan, proceed to register your Amazon seller account. 


Step 4: Create your Amazon Seller account 

To create your Amazon Seller account, you will need to fill a form with your information. Here's what you will be needing: 


  • Business name 
  • Legal name
  • Contact address
  • Banking information 
  • Shipping options - select where you want to ship to 
  • About the seller - add an interesting introduction about yourself that boosts your credibility on Amazon
  • Seller logo
  • Return and refund policies 

Step 5: Create your product listing 

Product listings are similar to a showroom. This is where you showcase your products on the platform. Ensure you have enough information to describe each product. Add a descriptive product title that makes it easy for online shoppers to understand. Use high-quality product images capturing different product image shots at different angles. Highlight the benefits of your product in the bullet point section and product descriptions. Research and target the right keywords and be thorough with your Amazon SEO. 

Step 6: Set up shipping options

You will need to set up your order fulfillment and shipping method. You have the option of handling your own shipping or having Amazon handle that for you. 


  • Fulfillment by Amazon (FBA): With Amazon FBA, you can relax while Amazon handles the order fulfillment and shipping. All you need to do is register and send your products to the Amazon fulfillment center where they will be stored, packaged and shipped directly to your customers. The service will also include handling your customer service and returns. Amazon FBA allows you to focus on other areas of your business. Also, your product is automatically eligible for two-day shipping on Amazon Prime. However, these benefits come with some FBA costs. 
  • Fulfillment by Merchant (FBM): This shipping option gives you the liberty to handle your order fulfillment, shipping, customer service and returns. 


You can choose to utilize both shipping options. For example, if you sell two products, one oversized and one standard-sized product, you can use FBM to sell the oversized product to minimize costs and maximize profits while using FBA for the standard-sized product. 

Step 7: Start selling and promoting your products 

Once you get your Amazon seller account, order fulfillment, and shipping in place, you can now start selling on the platform. Ensure you optimize your product listings, add relevant keywords, and use high-quality images to attract customers. Ensure you include relevant information that tells your customers all they need to know about your product. 


Promote your product by utilizing PPC campaigns. You can run Sponsored Brand Ads, Sponsored Product Ads, and Display Ads. PPC Ads come at a cost but this will help you increase your audience reach, brand awareness and help you rank much faster organically, especially if you are just starting out on Amazon. 

What are the costs of selling on Amazon?

Just like any other marketplace, Amazon has a set of fees that are charged for its features and services. Knowing these fees will help you know how best to maximize sales. 


Here are some fees you need to keep in mind: 


Seller fees: Amazon charges for your Seller account. You can choose between the Individual selling plan which costs $0.99 with every sale made or the Professional selling plan which cost a one-time monthly fee of $39.99. 


Referral fees: Every Amazon seller is charged a referral fee for every item sold on the platform. Referral fees are a percentage of the selling price. They vary depending on the product category and selling price. While most categories charge a referral fee of 15%, these fees typically range from 6% to 45% depending on the category. 


Fulfillment by Amazon (FBA) fees: The FBA service comes with its own set of fees. They also vary depending on the size and weight of the product. Also, it is important to know the total fees of storing and shipping your product to maximize sales. Here are a few FBA fees:


  • Pick and pack fees: This fee is calculated based on the size and weight of the product. It includes fees for storing, packing, shipping your product, customer service and returns. 
  • Monthly storage inventory fees: This fee is for using the Amazon warehouse. This is charged every month. 
  • Inventory placement fees: This fee is charged to FBA sellers who want to control inventory shipment from the Amazon fulfillment center. 
  • FBA export fees: FBA allows you to send your product to multiple countries. So, a an FBA export fee is charged depending on where you are selling it from. 
  • Stock removal fees: Amazon charges this fee for disposing of unsold stock or having them sent back to you.  


4 tips to increase sales on Amazon 

4 tips to increase sales on Amazon 

Now that we have a step-by-step guide and we know how much it costs to sell on the platform, how do you attract the right audience, drive traffic to your product listings and increase company sales? Let's go through four effective tips that can help you attract the right customers and double up sales: 

Carry out keyword research 

Optimizing your product listing attracts the right audience, improves your ranking on search results, and increases conversion and sales. To optimize your listing, start with using the right keywords. Research relevant keywords using keyword tools like Ahrefs. Once done, insert these keywords into your product listings. Add them to your product title, bullet point section, and product description. You can also add backend keywords to your Amazon seller central account.  

Use high-quality product images

Product images are one critical part of your product listing. This is what gets online shoppers to stop scrolling and click on your product. So, winning this aspect means you've won half the battle. Use high-quality images and take different shots of your products following Amazon's product image requirements and guidelines. Infuse lifestyle images and videos that effectively communicate the value of using your product. You can take advantage of A+ content, a feature available for sellers registered under the Amazon Brand Registry. 

Earn customer reviews

Customer reviews are critical to building trust, dispelling objections in the mind of potential customers, and improving rankings on search results. Encourage your customers to drop an honest review after they make a purchase. You can use channels like product inserts, emails, social media, or simply use the “Request a Review” button on Amazon. Focus on delivering quality products and services that spur a good customer review. You also want to avoid getting fake reviews, as this could get your account suspended. 

Pay attention to the pricing

Your product pricing is essential to increasing sales on Amazon. Firstly, if your prices are favorable, you are likely to attract more customers and finalize a sale. Secondly, a competitive price helps you secure the “Buy Box” which ultimately means more sales. 

Adjusting your prices to the demand of the market and the competition will help you increase sales and maximize your profit margin. Fortunately, there are repricer tools like BQool and RepricerExpress that automatically adjust your products based on the competition and demand for your product. 

Final thoughts 

Selling on Amazon is profitable if you have the right guidance and implement the right strategies. Hopefully, this guide will spur you into action and help you increase sales, maximize your profit margin, and grow revenue with Amazon.


We know it can get tricky figuring it all out on your own, so you can contact Amazon experts on ePlaybooks for some professional help. 




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