Answering Your Questions About Amazon Selling
Are you interested in selling on Amazon but have questions about the process? Look no further! In this article, we'll be answering some of the most common questions that new Amazon sellers have. From listing products to identifying price wars, we've got you covered.
Listing Products on Amazon
Can I List Products on Amazon and Fulfill Them Myself?
One question that we often receive is whether it's possible to list products on Amazon and fulfill them yourself, rather than sending them to Amazon's warehouse first. The answer is yes! This is known as Fulfilled by Merchant (FBM). Essentially, everything that Amazon would do for you under the FBA program, you would be doing it yourself. If you don't want to have any of the inventory and just want to buy it from your supplier and send it directly to the customer, that would be dropshipping.
How Do I Source a Wholesale Product?
If you already know which product you want to sell, you can go on Amazon and use a profit loss calculator to see what the fees will be and what price you can sell it for. If it's profitable, you can then find a supplier that can sell you that product at a wholesale price. There are many ways to source products, but this is one of the most common methods.
How Do I Send Products to Amazon for Them to Prep?
When you create a shipping plan, you will let Amazon know who you want labeling the products and who will be prepping them. If you put "merchant" on who is going to prep, that means you would have already prepped them before sending them to Amazon. If you put that you want Amazon to prep it, then you would just send them in the condition that they're in, and Amazon will charge you a fee and prep those products for you.
Pricing and Profitability
What Kind of Prices Do Suppliers Sell At?
Suppliers sell products at a discount off the manufacturer's suggested retail price (MSRP). The discount can vary, but it's usually around 30-50%. However, it's important to do your research and look at the history of the product to ensure that it will be profitable for you.
Should I Sell Products at Breakeven Price to Build Selling History?
We don't recommend selling products at breakeven price to build selling history. While it's okay to take a smaller profit, going in with the intention of breaking even doesn't make sense. If the price drops, you're not going to break even, and you'll end up taking a big loss. Instead, look for products that are profitable and take a smaller margin if necessary.
How Do I Identify a Price War on Any Listing?
If you're predicting a potential drop in price, you can use the Keeper graph and look at the history of the listing. If you're talking about how to know if a price war is going on currently, you would see the sellers continuously dropping the price, and one dropping it a little bit more than the other.
Business Models
Do You Private Label or Just Wholesale?
We only wholesale right now, but we don't think there's anything wrong with doing private label or arbitrage. It's important to find the business model that works best for you and your business.
Conclusion
We hope that this article has answered some of your questions about selling on Amazon. Remember to do your research and look at the history of the product to ensure that it will be profitable for you. Don't be afraid to try different business models down the road, but focus on one direction in the beginning. If you have any additional questions, feel free to leave them in the comments below.
Highlights
- You can fulfill products yourself on Amazon through Fulfilled by Merchant (FBM) or dropshipping.
- To source a wholesale product, use a profit loss calculator to ensure profitability and find a supplier that can sell you the product at a wholesale price.
- Don't sell products at breakeven price to build selling history. Instead, look for profitable products and take a smaller margin if necessary.
- Identify a price war by seeing sellers continuously dropping the price, and one dropping it a little bit more than the other.
- Find the business model that works best for you and your business.
FAQ
What is Fulfilled by Merchant (FBM)?
FBM is a way to fulfill products yourself on Amazon. Essentially, everything that Amazon would do for you under the FBA program, you would be doing it yourself.
How do I source a wholesale product?
If you already know which product you want to sell, you can go on Amazon and use a profit loss calculator to see what the fees will be and what price you can sell it for. If it's profitable, you can then find a supplier that can sell you that product at a wholesale price.
Should I sell products at breakeven price to build selling history?
No, we don't recommend selling products at breakeven price to build selling history. Instead, look for profitable products and take a smaller margin if necessary.
How do I identify a price war on any listing?
If you're predicting a potential drop in price, you can use the Keeper graph and look at the history of the listing. If you're talking about how to know if a price war is going on currently, you would see the sellers continuously dropping the price, and one dropping it a little bit more than the other.
What business model should I choose for my Amazon business?
Choose the business model that works best for you and your business. It's important to focus on one direction in the beginning, but don't be afraid to try different business models down the road.
