This is a guest post from Ashley Scorpio, Senior Vice President of Partnerships at Hawke Media
As the world’s largest ecommerce retailer, Amazon netted profits of $33.36 billion in 2021. And founder Jeff Bezos isn’t the only entrepreneur earning money on Amazon. While Amazon makes money from its subscription service, Amazon Prime, plus sales of items it lists and sells itself (along with many other revenue streams, including a stake in electric vehicle manufacturer Rivian), not to mention Amazon Web Services (AWS), third-party sellers can also earn a healthy living using Amazon marketplace.
Just how much could you earn as an Amazon seller? Sellers’ earnings range from $1,000 to $25,000 per month, on average, with 20 percent of sellers earning between $25,000 and $250,000 monthly. 71 percent of sellers have sales over $1,000 per month, and 6 percent report earning more than $250,000 per month, according to figures from JungleScout.com.
There’s no denying that Amazon can be profitable if you’re willing to put in the work up front to set up your business and invest the time and money in marketing your Amazon seller business, managing your inventory, monitoring your listings and reviews, plus following the rules so you don’t get kicked off the platform. So, how do you get started?
What You Need to Set Up an Amazon Account
Setting up an Amazon seller account is fairly easy. You’ll need a business email address or, at the very least, an Amazon customer account, which you can access via an email address. You’ll also need to provide your phone number to Amazon.
To do business on Amazon, you’ll need:
- A credit card that can make purchases internationally (consider a card with no foreign transaction fees for this purpose, even if you only use it for your Amazon business)
- A bank account where Amazon can direct deposit your profits
- A social security number or tax ID number for tax purposes
- A government ID, such as a driver’s license or state ID for identity verification purposes
Deciding What Products to Sell
Once you have those basics, you’ll need to set up your account — or even before opening your seller account – you’ll want to do some market research and determine what products to sell. Do you want to sell new items or used items? Do you want to re-sell another company’s products, or do you want to manufacture your own merchandise to sell?
You can also choose to source goods from another manufacturer and “white label” them – that is, develop your own brand to carry and market that merchandise. Many of these sellers earn money on Amazon. It’s why you’ll often see products like bathroom scales or hair straighteners that look exactly alike, but are marketed and sold under different brand names and by different seller accounts.
The Importance of Registering Your Brand
If you decide to sell your own products or someone else’s products under a private label, you’ll want to make sure to register your brand. Registering your brand can protect you against Intellectual Property (IP) infringement accusations and ensure that your brand is represented properly on Amazon. It can help prevent other people from stealing or copying from you, too.
How to Get Set Up As an Amazon Seller
Once you’ve decided on your products and gathered all the information you need, setting up an account is fast and easy. First, log in to Amazon Seller Central using your Amazon ID and password. You’ll be prompted to enter the information you gathered above, including your mobile or landline telephone number, credit card information, and information to verify your identity. It’s important to enter all this information correctly. Something as simple as listing an incorrect email address can get your seller account deactivated.
Once your account is set up, you can begin creating listings. You can use Amazon Central or a third-party API to create your product listings. You’ll want to make sure that any products you sell do not go against Amazon’s extensive terms of service. You want to make sure they aren’t infringing on other people’s IP and that you aren’t selling items prohibited for sale on Amazon. It’s not hard, but it does require great attention to detail and an understanding of the rules. Beyond that, ensure your catalog of products is organized and you have optimized your listing headlines and descriptions.
How to Troubleshoot Issues and Avoid Account Deactivation
Many prospective Amazon sellers get hung up in the set-up process. A mistyped digit or not having the proper form of identification can create a roadblock to establishing your Amazon seller account. If your application is denied, Appeal Wizards can help troubleshoot and resolve that problem so you can start selling faster.
Once your business is rolling along and you see those direct deposits in your account, you might think your business will continue to grow as long as you keep adding new products and marketing your brand. But the truth is, successful sellers get banned from Amazon every day — often for reasons that aren’t clear to the seller.
If this has happened to you, or if you’ve had a product listing suspended, it might be worth seeking out expert help to troubleshoot it. You can get your Amazon account or product listing reinstated through an appeal process. But if something goes wrong during the appeal, your account could be blocked permanently. That’s why it’s important to engage the experts at Appeal Wizards to help you appeal your case the right way, whether you are a new seller just getting started or a veteran Amazon seller expanding your product lines.