Selling on Amazon isn’t as simple as it seems. It is important to decide which products are most popular, what pricing you should use, and what shipping method you will offer. Amazon also holds merchants accountable for product descriptions, quality, customer satisfaction, […]
Selling on Amazon isn’t as simple as it seems. It is important to decide which products are most popular, what pricing you should use, and what shipping method you will offer. Amazon also holds merchants accountable for product descriptions, quality, customer satisfaction, and other matters. These guidelines require a lot of knowledge and time. Being an Amazon merchant can put your products in front millions of people and make it a very lucrative investment. Scott Margolius, cofounder of INDBL (a research automation service for Amazon merchants), shares some insights on how to become a successful Amazon merchant.
Margolius says brick-and-mortar storeowners are some of the most successful Amazon sellers. You can sell any product on Amazon and make money doing it. To make Amazon a substantial source of income, you need to invest a lot of money. Margolius says that many people who have never owned a business or a store before might not be familiar with all the logistics. The store owners who are already in business have large inventories, they know how to run a business, are price-conscious, have customer service knowledge, and have the resources and foresight necessary to handle large shipping volumes. Margolius says, “It’s much easier to move from brick and mortar into web, than to brick and mortar into web.”
Although brick and mortar storeowners are more likely to have an Amazon merchant account than those who own a brick and mortar shop, there are still some differences. Margolius says that Amazon is different than any other marketplace. It is different from other online marketplaces and physical marketplaces. Margolius says, “You must play by their rules and know what they are.” As an example, if a buyer places a purchase for an item that is out of stock, it might be common to contact the buyer to cancel the order and/or place it on backorder. It is against Amazon’s policy to cancel orders. Doing so could result in your account being closed. Amazon also tracks customer concerns, delayed shipments, refunds, and other things.
Margolius says there are three factors that will determine your success as an Amazon seller:
1 ) Your learning curve. How quickly can your learn the intricacies of Amazon’s technology and Amazon’s unique landscape.
2) How much time you are willing to invest. Being an Amazon merchant is a new venture. It isn’t a physical store but it requires the same amount of effort and time as a physical one. Therefore, Amazon merchants should be treated as real businesses.
3) Cashflow: You can be profitable right away. Amazon’s high customer base means that there is a greater chance of selling at higher rates. Margolius says that to make $250,000, you need to spend $500,000 You don’t need to make the investment all at once. As your business grows, you can increase your investment. However, you must manage your cash flow and be open to spending more to make more.
There is no better time to start or grow your Amazon business than now. Margolius suggests that you start in Q1 and Q2 to grow your brand, inventory, visibility, and inventory so your business can take advantage of Q4’s high volume of shoppers. Because customers aren’t stressed and don’t have a deadline, Amazon merchants do not feel as pressure in the early months of the year. Start now to ease your business into a rhythm and smoothen your way before high-pressure shopping begins.
►►► ConnectPOS is a cloud-based POS software compatible with multiple platforms including Magento, Shopify & Shopify Plus, and BigCommerce.