These are the most popular online marketplaces for artisans. Hence the Amazon handmade vs. Etsy comparison is quite common among new sellers. If you have considered selling handcrafted items online, you must have come across these platforms and struggled to settle for one. 

New sellers often ask, “Is Amazon Handmade worth it?” or “Why should I sell on Etsy”? Both marketplaces are well-recognized and offer great potential, but there are a few things to consider before deciding to sell on either. So, before selling on either platform, you should compare them thoroughly to see which one works best for you. 

In this post, we’ll do a thorough Amazon handmade vs Etsy comparison to help you make an informed choice. Ready? Let’s get right into it. 

Brief Overview

Amazon Handmade was launched in 2015 as an online marketplace for artisans. Since the parent channel for this platform (Amazon.com) has over 300 million active customers, the handmade channel has gained massive recognition too. The traffic on the Amazon Handmade platform is not as massive as that of Amazon.com. Still, AMZN handmade sellers have a high chance of building profitable businesses by feeding off the online giant’s customer base. 

Etsy, on the other hand, was established in 2005. This online marketplace focuses on handmade and vintage items, allowing artisans to list and sell their handcrafted goods. Since it has existed for longer, Etsy has built a solid reputation for selling strictly handmade items, and over 2 million artisans currently offer their unique products on the platform. As of now, Etsy has a little over 96 million customers. 

Etsy vs Amazon FBA: Similarities and Differences

If you’re struggling to choose between these marketplaces, it’s probably because you don’t know if they are similar or different. Yes, they are both great marketplaces for artisans, but if you want to start a business, you don’t just want a great platform, you want something that works for you. Hence, it’s important to be 

Similarities

• User-Friendly Dashboard: Both websites are functional and easy to navigate. So, you do not have to worry about not being able to find your way around. Plus, the stores are well-designed and your buyers will not have any difficulty placing orders. 

• Product Listings: To list products for sale on both platforms, sellers have to create product listings using numbered lists, descriptions, images, and drop-downs.

• Custom Products: Both platforms allow sellers to list their unique, handcrafted items for sale. 

Differences

• Listing fees: Creating product listings on AMZN is free and listings do not expire. But if you decide to sell on Etsy, you’ll have to pay $0.20 per listing and 5% per sale. Also, your product listings will only be valid for four months after which they must be renewed. 

• Payment Processing: On Etsy, you’ll get the funds in your bank account once a transaction has been completed. In contrast, the payment process on AMZN is quite long. Sometimes, it takes up to 24 days to get the funds in your account. 

• Sign-up Process: Etsy’s sign-up process is quite straightforward; there are no complicated approval stages. In contrast, the sign-up process for Amazon Handmade is lengthy and it may take weeks or even months for you to get approval to list your products on the platform. 

• Customer Base: Although Amazon Handmade is a streamlined market that only carries handmade items, not all online shoppers are aware of the platform yet. Etsy, on the other hand, is recognized as an artisan-only marketplace, and many shoppers go there specifically for that. 

• Product Categories: Etsy offers over 160 categories while Amazon handmade only has about 14 product categories. 

• Shipping Fees: Amazon Handmade uses a unit/weight-based shipping model. The standard delivery fee on AMZN is $4.49, and per-weight shipping costs $0.50 per pound by default. Etsy charges a 5% transaction fee and a 5% shipping fee on all orders.  

• Mode of Operation/Production: Etsy allows you to recruit people to help with product manufacturing. AMZN’s policy is that your products must be manufactured by you or staff in a company with less than 20 employees. 

Handmade by Amazon and Etsy are quite similar, but they’re also very different. So, before deciding to sell on either platform, you should consider their pros and cons individually. 

Related: Amazon vs eBay

Amazon Handmade vs Etsy: Pros and Cons

Pros and Cons of Selling on Etsy

Etsy is a great place to sell, but like every other business decision, Etsy sellers will have pros and cons. Let’s take a look at the good and bad sides of selling on Etsy. 

Pros

• Quick sign-up process: Etsy’s sign-up process is smooth and easy, so if you want to get your business running in the shortest time possible, Etsy is your best bet.

• Ease of setup: Launching your product is fast and easy. You can create your product listings in 5 minutes just by uploading product images, descriptions, and payment information.

• Easy to Navigate payment system: Etsy has an already established payment system that makes it easy for sellers to receive and process credit card payments. 

• Seller Community: No one wants to be left to figure things out on their own all the time. In addition to the seamless setup process, Etsy has built a strong seller community where sellers can rub minds and access help easily. 

Cons

• Customer trust: Etsy has a relatively large customer base, but this does not automatically translate into trust or loyalty for your brand. Since you’re selling handmade products on an online marketplace with competitors, customers may be unable to recognize your handmade products or remember your brand. This often results in fewer repeat customers and referrals, making it difficult to scale an Etsy store quickly. 

• High Competition: Since Etsy is strictly for artisans, the competition is quite high. Plus, the majority of the niches are crowded making it hard for sellers to make sales without taking additional measures. 

The Pros and Cons of Selling on Amazon Handmade

Yes, the application process for Amazon handmade is complicated. But that doesn’t mean there are no benefits to selling on the platform.  Let’s take a look at the benefits and drawbacks of selling on Amazon Handmade. 

Pros

• Vast Customer Base: AMZN has over 300 million active customers, and over 85% of shoppers say they would rather shop on AMZN than on other marketplaces, making it the most sought-after online marketplace. Also, AMZN is well-recognized as a one-stop shop for any item, so although not all shoppers are aware of the handmade platform, they still search for handcrafted products on the main website and are redirected to the handmade platform. 

• Functional Algorithm: AMZN’s search algorithm is effective, making sellers with well-optimized listings and little SEO knowledge more likely to show up in search results. Unlike AMZN, ranking on Etsy is not an easy feat, and sellers have to spend a considerable amount of time on SEO. 

• Excellent Customer Service: AMZN has an easily accessible and effective customer support team that can be contacted via different channels, whereas Etsy only provides an email for seller complaints.

• Ease of Fulfillment: If you choose FBA, you can delegate fulfillment and a variety of additional tasks to AMZN. And AMZN has the smoothest delivery service in the world, so you can count on on-time, hassle-free deliveries. Using FBA also makes you eligible to sell to Prime subscribers, Amazon’s network of loyal customers.

Cons

• Long Sign-up Process: To become an Amazon Handmade seller, you must first fill out an application. AMZN is picky about quality and exclusively sells handcrafted items. As a result, these applications must go through a thorough review and approval process by humans. Because of the high volume of applications, days could turn into weeks or months before you receive approval.

• Scaling May Be Difficult: AMZN is a fiercely competitive marketplace, and the handcrafted category is no exception. You must be willing to go the extra mile to scale your business. This often entails constantly optimizing your listings and improving your advertising strategies. Even your product photographs must be professional if you want to make sales. 

• Fewer Categories: There are only about 14 Amazon Handmade categories. As a result, some items may not be eligible for sale on the platform. 

Which of these marketplaces is the best one for you? It may be difficult to make this decision, but the good thing is that you can sell on both platforms simultaneously. However, if you intend to sell on only one of these platforms, you’ll have to consider other factors like selling fees and fulfillment services. Let’s take a look at these other factors.

Selling Fees

Amazon Handmade Sellers Fee

If you decide to sell on AMZN, you will have to choose between two selling plans: Individual and Professional. The individual selling plan costs about $0.99 per sale and is best for sellers who intend to sell fewer than 40 items per month. In contrast, the professional plan costs $39.99 and is best for sellers who intend to sell more than 40 items per month. 

AMZN also charges a referral fee. The fee is charged as a commission on every sale and varies from 8% – 45%. However, professional sellers are exempted from the standard referral fees and will only have to pay a 15% commission or a minimum of $1 referral fee per sale. 

Of course, there are other fees you will have to pay if you sign up for FBA. But these are the basic Amazon handmade fees that every seller will have to pay. 

Etsy Fees

Signing up to sell on Etsy is free, and you won’t have to pay a subscription fee except if you sign up for Etsy plus. Etsy plus is a subscription-based plan that costs $10 monthly and gives you access to a wider range of tools and features.

Unlike AMZN where you can create listings for free, on Etsy, you will have to pay a listing fee of about $0.20 per item and a 5% transaction fee per sale. 

As a result of the numerous fees on Amazon handmade, many sellers prefer to sell on Etsy instead. 

Which Platform Offers Better Fulfillment Options: Amazon Handmade or Etsy?

AMZN offers two fulfillment options: Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA). Sellers who use the FBM option will be fully responsible for storing and shipping their handmade products. In contrast, when using FBA, AMZN will store and ship orders on your behalf. They will also provide 24/7 customer service and handle return processing for you. 

Etsy marketplace, on the other hand, does not offer a fulfillment option that allows you to outsource crucial processes to a professional team. So, if you decide to sell on Etsy, you will have to handle all your business processes by yourself. You can still utilize FBA as a Multi-channel fulfillment option for Etsy sellers. You may, however, incur extra fees compared to AMZN sellers.

Clearly, when it comes to order fulfillment, AMZN’s services are second to none. 

Now that you know the costs of selling on either platform, as well as the fulfillment options that they both offer, you can make a more informed decision. 

Amazon Handmade vs Etsy: Which Platform Has More Customers?

The Amazon Handmade vs Etsy comparison will be incomplete with comparing their respective customer strength. Amazon is the largest online marketplace for a reason, and even though Etsy seems to be working really hard to catch up, the gap is still quite wide.

Amazon has over 300 million customers and Etsy has over 81 million customers. So, if you’re looking to make a decision based on which platform gives you a wider reach, you can tell who the winner is. The good thing though, is that you can sell your handcrafted goods on both platforms without having to choose one.

Amazon Handmade vs Etsy: Based on Seller Competition

When it comes to the number of sellers, the difference between both platforms is not so wide. Amazon has about 6 million active sellers and Etsy has about 4 million. If we were to judge based on this as well as the customer base of each platform, it would be safe to say that Etsy is more competitive than Amazon. This is because of the difference in customer base of both platforms.

How to Start Selling on Amazon Handmade vs Etsy

The process of becoming an Etsy seller vs. Amazon Handmade vendor differs significantly. It’s significantly easier on Etsy, however, on Amazon Handmade, you’ll have to go through an application procedure. Let’s go over how to get started on either of these platforms.

How to Start Selling on Etsy

1. Create an Etsy account to get started.
2. Configure your shop’s preferences, such as currency, language, and home nation.
3. Pick a name for your Etsy store.
4. Add items to your shop, create your listings, and publish them.
5. Decide on your payment options and billing information.
6. Set up your shop, personalize it, and promote it.

How to Start Selling on Amazon Handmade

1. Create a seller account: To do this, visit the Amazon handmade website, then click on the “Are you a maker?” design. You will be redirected to a landing page, click on “Apply now”.

2. Complete the application process: The application process is simple and clear, and you should have no problems. However, it is exhaustive, and you must be meticulous. Make sure you include enough information in your application to increase your chances of approval. Also, include excellent product photos that capture your product’s benefits.

3. Create your listings: Once you have gained approval to sell, you should create your listings and list your products for sale. Although the listing creation procedure can be a little perplexing, you should be able to figure it out. If you can’t, AMZN has a wealth of information to help you get started.

Conclusion: Is Amazon Handmade Better Than Etsy?

Is Amazon Handmade worth it? Of course, it is, and selling on Etsy is a great business move too. So, choosing between these platforms may be difficult, especially if you’re a new seller. However, if you read this Amazon Handmade vs. Etsy comparison to this point, you should be able to weigh your options and choose the best platform for your business. Good luck! 

Getting started on Amazon is not so difficult. But it can be challenging at first, especially for beginners. It is even worse for beginners who have no source of capital to finance a new business. Thankfully, the marketplace is built to accommodate everyone. So, whether you’re buoyant or cash-strapped, there’s an Amazon business model for you. Of course, selling on AMZN is a lot easier when you have a source of funding. But what if you don’t? Not to worry, you can still sell on Amazon without capital.

If you want to sell on AMZN without capital, then you should learn how to sell on Amazon without inventory. AMZN offers different business models, but the majority of them require you to fund your business. However, there’s one that allows you to sell on Amazon without inventory. In this post, we’ll tell you all about the different business models. Then, we’ll go ahead to show you how to sell on Amazon without inventory.

Let’s get started.

Amazon Business Models

AMZN offers five different business models and they all work differently. Of course, the financial commitment also differs. Some require huge capital, others require little financial investment. But if you want to learn how to sell on Amazon without inventory or capital, there’s one you should look out for.

• Arbitrage: The arbitrage business is one of the most cost-effective ways to sell on Amazon. Still, it requires you to source products from retail stores, then sell them on AMZN at a higher price. So, you’ll have to maintain an inventory. To source products, you’ll need to have a reasonable amount of capital, but you can start small. This business model has two models: the online arbitrage model and the retail arbitrage model. Both models are similar, but the product sourcing methods vary. With online arbitrage, you’ll have to source products from online retail stores. In contrast, retail arbitrage requires you to source products from physical retail stores.

• Wholesale: Selling wholesale on Amazon involves purchasing products in bulk from manufacturers. Then, selling in smaller quantities to retailers (arbitrage sellers). Of course, the wholesale model requires you to maintain inventory. And since you’ll be buying in bulk, you’ll need a large capital to start.

• Private Label: Private label products are products that are sold under a company’s brand name, but manufactured by a different company. This is the most expensive business model to start with, but if you want to build a brand on AMZN, it’s your best bet.

• Handmade: So you have creative abilities and you want to make money out of them? You can create handcrafted goods and sell them online. The handmade model allows you to sell handmade products from the comfort of your home. But of course, you’ll need to have the products in stock, so you’ll have to maintain an inventory.

• Dropshipping: This business model is popular among those who wish to make money on the side by selling on AMZN. It allows you to avoid the worry and difficulty that comes with inventory management, packaging, and shipping products. In other words, if you want to learn how to sell on Amazon without inventory, the dropshipping model is your go-to.

The dropshipping model involves selling things on behalf of a vendor. So, when a customer places an order on your listing, the information is sent on to the supplier. The supplier then ships the item directly to the buyer on your behalf. This way, you won’t

Since the purpose of this post is to show you how to sell products on Amazon without inventory, we will focus on the dropshipping model. Keep reading to learn more about dropshipping on AMZN.

Related: How to Sell on Amazon for Free

How Does Dropshipping on Amazon Work?

Amazon dropshipping is the easiest way to sell online without inventory. It allows you to sell to customers even if you do not own the product. As a dropshipper, all you have to do is list products for sale and have the supplier ship them to the customers. As a dropshipper, you’re only responsible for marketing products to customers on and off AMZN. The supplier will be solely responsible for shipping orders and maintaining inventory.

If you’re learning how to sell on Amazon without inventory through dropshipping, you can explore the print-on-demand dropshipping model. It is a dropshipping model that allows you to advertise customized items for sale on AMZN. Then, when orders are placed, the supplier designs the products and ships them on your behalf. Customized t-shirts are the most suitable items for this dropshipping model.

Pros and Cons of Dropshipping on Amazon

Dropshipping is a great way to sell on Amazon without inventory or capital. But you should not start dropshipping without making findings and weighing your options. Like every other business model, the dropshipping model comes with its pros and cons. So, to help you decide if dropshipping on Amazon is worth a try, we’ll provide a balanced view of both sides.

Pros

• Minimal Start-up Costs

Dropshipping, unlike other business models, does not involve inventory management. Instead, when the customer pays you for a product, you take some of the money and use it to buy the product from the supplier, who then ships it to your buyer. You won’t be storing or maintaining inventory, so you’ll also incur fewer costs on storage and shipping.

• Easy to Set up

Since you won’t have to go through the stress of product sourcing and inventory management, you can easily get started as a drop shipper. Making money is as simple as advertising your product, making a sale, and getting paid. Getting started as a dropshipper may not be easy at first, but all you need is consistency. Also, follow AMZN’s dropshipping guidelines to avoid running into any trouble.

Check out Amazon’s dropshipping policy.

• Multiple Product Options

Dropshipping does not require you to manufacture new products from scratch. So, you can sell pre-existing products. Also, there are over 30 categories on AMZN and you can decide to sell in as many categories as possible. All you need to do is find profitable products and then find genuine suppliers to work with. This won’t be much stress since product research and supplier research can be automated using AMZN software. If you read to the end, we’ll recommend the best software for product and supplier research to you.

Cons

• Stiff Competition

Dropshipping has a lot of competition because the hurdles to entry are so low. Furthermore, while there may be some uniqueness to the products you’re selling, there’s nothing prohibiting other sellers from selling similar items.

As a result, price adjustment is one of the marketing strategies you’ll have to implement as you go along. But this may not be sustainable in the long run because if your product prices are on either extreme, your bottom line may suffer from it.

• Longer Delivery Times

Dropshipping usually involves partnering with international suppliers. Consequently, the delivery of these products may take a lot longer. Always check where your supplier is located whether it be overseas or already in the states.

• Poor Quality Control

You may not get to see the products before they’re sent to the customer, so you may be unable to assess product quality. As a result, product quality may vary from customer to customer and this may be bad for your business.

How to Sell on Amazon Without Inventory Through Dropshipping

Now that you know you can sell on Amazon without inventory through dropshipping, how do you get started? You can start dropshipping on AMZN in three simple steps.

Create a Seller Account

You’ll need to create a seller account to sell on AMZN. Next, you’ll have to choose a selling plan. AMZN offers two selling plans: an individual plan and a professional plan. The individual plan is best for sellers who intend to sell fewer than 40 items per month. In contrast, the professional plan is best if you intend to sell more than 40 items in a month.

Find a Profitable Product

Choosing a profitable niche is the first step to success on AMZN. But there are over 12 million products in AMZN’s catalog, and it may be difficult to settle for one. One hack to choosing a profitable product is to go for a high-demand, low-competition product.

Another way to find the bestselling products on AMZN is to use software for product research. With a product research tool, you can find in-demand products in different categories. This makes it easier for you to sell in multiple niches and make more money. What’s the best product research tool for your dropshipping business? We’ll tell you about it shortly.

Find a genuine supplier

After finding a profitable product, the next step is to find an authentic supplier to source the products. Supplier research is the most challenging aspect for many dropshippers. But it’s easier when you use software. ZonBase, the best AMZN software, offers a tool that gives you access to a list of authentic suppliers. Read to the end to learn more about this tool.

You can also check other online marketplaces for supplier options. Alibaba and AliExpress are often the best places to find suppliers for any product. Once you have found a supplier, ensure you contact them ahead of time so they don’t ship orders to customers with their company address. The AMZN dropshipping policy prohibits that.

Create a Product Listing

Found a profitable product? Found an authentic supplier? Great! The next step is to create a product listing.

To create a product listing, open seller central and go to inventory. Next, click ‘add a product’. When the add a product screen comes up, click ‘inventory’, then ‘add a product’. Click ‘create a new product listing’ to complete the listing creation process.

The first step is to select a product category. After that, you’ll need to fill out the information for the listing. Remember to factor in AMZN’s costs when deciding on a price for your dropshipped item. If you’re a professional seller, you’ll be charged a monthly flat-rate fee of about $40. Individual sellers are also charged $0.99 per sale. AMZN also charges a referral fee on every sale, usually between 8% – 45% of the product’s price. Referral fees vary by category.

Learn more about AMZN Fees

How to Sell on Amazon without Inventory: Fulfillment Methods

Amazon generally offers two fulfillment options — Fulfillment by Amazon (Amazon FBA) and Fulfillment by Merchant (FBM).

If you opt for the FBA option as a dropshipper, your supplier will ship orders directly to an Amazon fulfillment center, Amazon then stores and ships the orders to your customers. This way, you will not have to hold inventory at all.

With FBM on the other hand, you will have to handle storage and shipping yourself. This defeats the aim of selling on Amazon without inventory. However, you can make use of third-party logistic firms if you really want to be in control of your shipping procedures. We will discuss the pros and cons of Amazon FBA as well as the pros and cons of the third-party logistic option.

Pros and Cons of Amazon FBA

Pros:

• Access to an established network of loyal shoppers
• Amazon handles fulfillment and shipping using its existing logistic infrastructure
• Access to Amazon fulfillment centers for storing your products
• Assurance of safe storage, fast shipping, and excellent customer service

Cons: 

• Costly Amazon FBA fees
• There are strict packaging and shipping requirements

Pros and Cons of Third-Party or 3PL Logistics

A 3PL allows you to store your products and ship them without Amazon FBA fees and without storing Amazon inventory. A few pros and cons are listed below.

Pros:

• Fulfilling orders through 3PLs gives you more control and can be a great way to cut down costs depending on the quantity and size of your orders.
• Like Amazon, if you choose a reliable 3PL, you can be sure that they also have the infrastructure required to ship orders quickly. 

CONS:

• 3PLs often require you to monitor the shipping procedures and this may require an investment of time. 

Amazon Dropshipping Tips

Starting a dropshipping business on AMZN is pretty easy, but you’ll still have to put in some work. Here are a few tips to help you get the best out of your dropshipping business.

Promote Your Listings

The easiest way to make sales on AMZN as a dropshipper is to drive traffic to your listings. Consider running PPC ads to drive traffic to your listings and boost your conversions. You can also drive off-Amazon traffic to your listings through social media ads and email marketing.

Develop a Unique Selling Point

As a dropshipper, you’ll face stiff competition on AMZN because many other sellers sell the same products as you. As a result, you need to come up with ways to differentiate your brand from others. Pricing may not be the best way to do this, but you can come up with other unique selling points for your brand.

Test Products Before Selling Them

As we mentioned before, there is very little quality control when it comes to dropshipping. However, if you want to build a profitable business, ensure that your products are of good quality. Otherwise, you’ll end up shipping sub-standard items to customers and having them file claims against you. If this happens, your account health may suffer and your business may take a hit.

The only way to confirm the quality of your products is to request samples from suppliers before placing large orders. Examine the sample when it arrives. When it arrived, how did it look? How long did it take you to get the order? Were the items exactly as described? This will help you confirm the quality of the product and estimate the average delivery time.

Try Out Multiple Options

There are no restrictions on how many products you can sell as a dropshipper. Since you won’t be paying any upfront costs, you can list as many items as possible. Observe what sells and what doesn’t, then focus on the products that are most profitable.

Other Ways to Sell on Amazon Without Inventory

So, you want to learn how to sell without inventory, but you’re not interested in dropshipping? That’s fine. Dropshipping is the most popular way to sell without inventory, but it is not the only way. However, there’s only one other option apart from dropshipping, and that’s to sell digital products on Amazon.

Sell Digital Products

Downloadable audiobooks, digital versions of your publications, and print-on-demand products, such as selling t-shirts on Amazon or art prints, are all examples of digital products. Selling digital products on Amazon has very similar pros and cons to dropshipping. A few of them are listed below.

Pros of Selling Digital Products on Amazon

• Low startup costs and ease of setup.
• Can be accessed by new and existing sellers, regardless of the level of expertise.
• Sellers are in control of their prices

Cons of Selling Digital Products on Amazon

• Fierce competition resulting in low visibility and reach
• No assurance of sales or profitability
• Commission fees are on the high side

So, can you sell on AMZN without inventory? Yes! Anyone can. All you have to do is set up your account, find a profitable product to sell, and then create and optimize your listings. You won’t have to pay any upfront fees, but if you want to scale your business quickly, you may have to invest in software. There aren’t many affordable yet effective software options, but there’s one that we trust—ZonBase.

Best Amazon Seller Tool To Scale Your AMZN Business

ZonBase is the best Amazon seller tool for product research, keyword research, and listing optimization. Sellers will find this tool helpful regardless of the business model they choose to use. Its product research tools are known for generating thousands of profitable product suggestions. Apart from generating product suggestions, sellers can also validate their product ideas using this tool. Its keyword research and listing optimization tools work hand in hand to help sellers find relevant keywords and create well-optimized product listings.

ZonBase also offers sales estimation and analysis tools to help sellers track profitability. It also offers mentorship and a photo enhancement service for sellers who want to improve the quality of their product images.

How to Sell on Amazon Without Inventory Using ZonBase Tools

With ZonBase product research tools, you can find the best-selling products on Amazon. After finding profitable product suggestions, you can estimate their sales potential and profitability using the sales estimator tool. ZonBase also offers a Hot Products tool that provides supplier options for each product.

Your product images also play a major role, so ZB provides a photo enhancement service. The service allows you to send your product images to a team of experts. The team will then edit them professionally and send them back to you.

ZonBase is the best software for anyone who wants to sell without inventory. The software offers three plans: a standard plan at $37/month, a legendary plan at $67/month and a Diamond Plan at $132/Month. This may seem like a lot, especially if you do not have any source of funding, but investing in software is never a bad idea. It’s a smart move, and if you make the investment, you’ll definitely make the money back in no time. For a start, you can sign up for a free trial to explore the features before making a financial commitment.

Check out the software.

Conclusion

If you read to this point, then you already have all the information you need on how to sell stuff on Amazon without inventory. Now that you have learned how to sell on Amazon without inventory, you will have to use the tips provided in this post if you want to build a successful business.

Good luck on your journey.

Based on statistics, this is a great business move because, so far, 69 percent of Americans have done their shopping online, and 25% of them do so at least once a month. Also, the bulk of these shoppers (59%) purchased apparel and 47% purchased their first item on Amazon.

The table below shows the countries with the highest eCommerce revenue per shopper. (Source: Optinmonster)

It is evident that selling online is never a bad idea, and there’s a market for every Amazon seller regardless of their country. Moreover, you can now sell internationally on Amazon. AMZN has over 16 marketplaces, and these countries are not left out. However, as you can already tell from the chart, selling online in the United States seems very lucrative. So, if you decide to sell on AMZN, you should first sell on Amazon USA and then expand to other marketplaces.

Planning to start selling on AMZN? In this post, we’ll tell you everything you need to know to sell in the U.S. marketplace, even if you don’t reside in America. 

Let’s get right into it. 

Why Should You Sell on Amazon USA?

Vast Customer Base

The U.S. marketplace is the largest online marketplace in the world. The marketplace boasts over three million monthly visits, placing it far ahead of eBay, the second-largest online retailer. Apart from the monthly traffic, there are a few other numbers that show why selling in the U.S. marketplace is worth it:

• There are over 142 million Prime members in the U.S. marketplace.
• The U.S. marketplace hosts about 350 million product listings, including the over 12 million products sold by AMZN itself.
• 64% of sellers in the U.S. marketplace have generated over $25,000 in profits in the course of running their businesses.
• 70% of sellers in the U.S. marketplace earn more than $1,000 monthly in revenue.

Limited Entry Barriers

You won’t have to face too many obstacles if you decide to sell in the U.S. marketplace. Unlike other marketplaces, there are minimal barriers to entry in the U.S. marketplace, and you can set up your business in no time. Also, 54% of U.S. sellers run their businesses in less than three months. And about 64% of the sellers hit the profitability mark in their first year. 

Plus, the U.S. marketplace typically approves new seller accounts in about a week. So, you won’t have to wait too long, and you can get other important tasks done in that time. 

It’s Easier to Sell in the U.S. Marketplace than in the European Marketplace

The unified European Amazon network is the only other AMZN marketplace that comes close to Amazon.com in terms of size. However, new sellers must overcome a few hurdles before selling on European marketplaces.

For instance, sellers must account for VAT to sell in the European marketplace. Whereas in the United States, retailers collect sales tax from customers, which is levied after the transaction is completed. Sellers in the EU are required to incorporate VAT earlier in the supply chain. This increases the cost of goods supplied, making it more difficult to price products competitively in the EU.

Furthermore, EU sellers cater to a wider audience, not just English speakers. In contrast, those who sell on Amazon USA can list their products in English since their audience comprises majorly of English speakers.

The EU marketplace caters to shoppers in Spain, Germany, France, Italy, the Netherlands, and the United Kingdom. So, the items and listings must be accessible in up to six languages. Of course, you can reach more people if you create your listings in different languages, but the stress of translating can also be a lot.

You Can Leverage Fulfillment by Amazon

The Fulfillment by Amazon service is one of AMZN’s fulfillment options. Under this service, AMZN handles storage, packaging, and shipping on behalf of its sellers. So, sellers who opt for this fulfillment option can focus on other aspects of their business. 

The service is available on other marketplaces, but sellers who have decided to sell internationally on Amazon USA will find it very useful. Without FBA, international sellers would have to ship their goods to their consumers overseas. Or they can locate third-party fulfillment options, which may be costly and time-consuming. 

If you’ve stalled on setting up an AMZN business because you’ve been wondering “can Amazon ship internationally?”, now you have your answer. 

If you sell on Amazon USA through FBA, you won’t have to worry about international shipping, customer service, or even returns processing. AMZN will handle all these major processes on your behalf. 

Which Countries Can Sell on Amazon USA?

At the moment, AMZN has about 19 marketplaces and accepts sellers from over 102 countries across the globe. So anyone can start selling globally on AMZN, but first, you must provide proof of residence in your home country, a valid phone number, and a chargeable international bank card. Sellers often ask, “Can you sell on Amazon USA from Australia or Canada?” Well, the answer is yes, you can, and quite easily too. In the next section, we’ll show you how to sell on Amazon USA from anywhere in the world.

How to Start Selling on Amazon USA

Selling in the U.S. marketplace is not so difficult. So even a foreigner outside of the USA can sell there. But like every other process on AMZN, there are certain requirements you’ll have to meet. So, to start selling in the marketplace, you must have:

• A valid credit card
• A credit card that is chargeable internationally
• If you can’t create a U.S. bank account, you may need to use Amazon’s Currency Converter. If you do, you can sell on AMZN without creating a U.S. bank account)
• Proof of residence (Utility Bill)
• Proof of Identification (ID, passport, driver’s license, and oftentimes Credit card or Bank statement)
• Tax information
• Phone number

Afterward, AMZN will send a postcard to the address you provided when signing up to confirm your address. With that, you can then enter the code that is on the postcard in seller central to confirm your account. Depending on where you live, it can take anywhere from 1–4 weeks. With COVID-19, there could be delays in this process. It is important to enter this code within 30 days of receiving it, as they will often send follow-up emails stating that the code will expire if not used within that time frame.

Create a seller central account

If you have all the requirements listed above, you can go ahead and create your seller account. To sell on Amazon USA, visit the U.S. website (amazon.com), then fill in all the required information. 

Check out our article on how to create a seller account if you need more help.

In addition to the basic requirements listed above, aspiring sellers must complete an online step-by-step interview to determine whether a W9 (as a US taxpayer) or a W-8BEN (as a non-US taxpayer) is required. 

AMZN may take up to 72 hours to review your application. They may also ask for further details sometimes, so make sure you respond to all requests promptly. 

Choose A Business Model

After creating an account, the next thing you’ll have to do is to choose a business method to sell with. AMZN offers five different business models, but three of them are more popular and profitable in the U.S. marketplace.

The three most common business methods in the U.S. marketplace are as follows:

• Private Label: You can decide to manufacture your own products to sell. To do this, you’ll have to find a profitable product option and then reach out to an overseas manufacturer to make them for you so that they carry your branding. Private labeling is the most popular business model in the U.S. marketplace, and about 67% of U.S. sellers use this model. 

• Wholesale: This business method involves buying in large quantities to reselling in small quantities to retailers. Unlike the private label model, which requires a seller to create their own brand, wholesalers sell already existing products.

• Dropshipping: Being a dropshipper is another option you may want to consider if you want to sell on AMZN. This business method is stress-free, and you won’t have to maintain inventory. 

• Retail Arbitrage: If you are on a budget, you can consider sourcing products from physical or online retail stores, then reselling them on AMZN. This way you can start your online business with little or no capital.

There are other e-commerce business models, but if you want to sell on AMZN without doing much heavy lifting, then these three are the best options for you. Regardless of the business method you choose, you will have to find a profitable niche and product options. When it comes to finding the bestselling products on AMZN, guesswork will not get you the results you want. So, it’s best to invest in software for product research. 

If you read to the end, we’ll tell you about the best software for product research. However, here are a few things to look out for when choosing products if you carry out manual product research. 

• Choose products that have high demand and low competition, preferably products that sell at least 200-300 units per month.

• Choose small and lightweight products. This way, you’ll be able to save costs on shipping. Also, try not to choose products that are fragile or can get damaged in transit.

• Make sure the products you list for sale are not patented. 

After choosing a product, the next thing you should do is source the products from suppliers. Look out for genuine suppliers to source high-quality products. You can also use ZonBase’s Hot products tool for supplier research. Here’s a faster way to find suppliers for your products.

• Open the ZonBase Hot Products tool and enter basic product information
• Set the filters based on your product preferences. You can filter products based on price, BSR Ranking, reviews, and the number of sales.
• The tool generates an extensive list of the best-selling products in any category in a matter of seconds. Click the ‘find a supplier’ option on each entry to find authentic suppliers.

Create Your Listings 

You’ll have to create a product listing if you want to sell through FBA. Here are a few things to keep in mind when creating your product listings:

• Use attractive product images: Ensure your product images are clear, attractive, and detailed. 
• Use clear titles and descriptions: Your titles and descriptions play a major role in your visibility, so you should include relevant keywords in your titles. Also, make your descriptions detailed, and use bullet points where necessary. 
• Add reviews to your listings: Customers want to see proof that others have purchased items from you and found them worth it. So, use reviews to persuade buyers to buy from you.

Choose a Reliable Freight Forwarder or Customs Broker

There are many processes involved in international shipping, especially for online vendors. So, if you want to sell internationally on Amazon without too many hassles, you should enlist the services of a freight forwarding company or customs broker. 

With a customs broker on your team, you won’t have to worry about too much paperwork and documentation. They’ll handle all the customs procedures, freight forwarding, and inventory storage for you. A freight forwarder, on the other hand, will ensure your products get to the fulfillment center safely. 

Here are a few of the services that custom brokers can render:

• Examining samples: Your customs broker can inspect your samples for you and tell you whether they are the exact products you requested from your supplier.

• Assurance of high quality: Your customs broker can inspect the quality of your goods in the same way that samples are examined. Before the products reach Amazon’s fulfillment hubs, third-party quality assurance organizations can evaluate and grade them.

• Fulfillment Preparation: Your products must be prepared before AMZN accepts them, and this includes having FNSKUs and other required labeling.

In addition, if your product requires some assembling that your supplier cannot provide, a third-party fulfillment prep center can help.

How Much Does it Cost to Sell on Amazon USA?

Selling on Amazon is a lucrative business venture, but it isn’t free, and you must understand the costs involved. Here’s a breakdown of the selling fees you’ll have to pay if you sell on AMZN.

Selling Plan Fees

To sell on AMZN, you’ll have to create a seller account and choose a selling plan. AMZN offers two selling plans: the individual selling plan and the professional seller account or selling plan. The individual plan costs $0.99 on every sale and is best for sellers who do not intend to sell up to 40 items per month. In contrast, the professional seller account requires a monthly subscription fee of about $39.99 and best suits sellers who want to sell more than 40 products in a month. 

Referral Fees

Referral fees are a fixed percentage of the total sales price and can range from 8% to 45%, depending on the product category. AMZN’s fees are calculated based on sales in dollars and the number of products sold in some categories. Electronics accessories, for example, are charged 15% of the total sales price for any component up to $100 and 8% for any portion larger than $100. Amz has a minimum referral charge that applies if the percentage-based payout is greater than the minimum referral fee, albeit this isn’t always the case.

Fulfillment Fees

This applies to FBA sellers and is the cost you’ll have to pay for AMZN’s services. This includes picking, packing, and order fulfillment. Fulfillment fees are calculated based on the item’s size and weight and are charged on a per-item basis. Your FBA fees and shipping costs may differ depending on your location and what kind of tax laws apply there.

“Starting on April 28, 2022, a 5% fuel and inflation surcharge will be applied to FBA fulfillment fees. The surcharge is subject to change.”

Inventory Storage Fees

This fee covers the cost of having your inventory stored in AMZN’s warehouses. The inventory storage fee is charged monthly and depends on the type and size of the item you’re selling. Note that the storage fee from January to September is different from October to December. Also, if your inventory stays in fulfillment centers for more than 365 days, you’ll incur extra costs in the form of long-term inventory storage fees. 

There are other fees that you may incur, but they are not fixed.

Check out the full list of Amazon FBA Fees

Tips for Selling on Amazon USA Successfully

Every day, more and more people are jumping on the opportunity to sell and make money on Amazon. In fact, currently, there are about 500,000 individual sellers. With this increasing number of sellers comes fierce competition. 

So, if you want to make your time on Amazon worth it, you have to come up with ways to beat the competition and ensure that your products are reaching your target audience. Here are a few tips to help you sell on Amazon USA successfully.

Monitor your inventory levels

Choosing the right products — products with high demand and low competition or market saturation is the first step to success. The next step is to ensure you never run out of stock. 

One way to avoid stockouts is to monitor your inventory level to ensure that your products are available. If customers notice that your products are mostly unavailable, you may end up losing sales because they’re likely to purchase from a competitor. 

You can use inventory management software to monitor your inventory levels and avoid stockouts. 

The ZonBase profits tool is an excellent tool for tracking your inventory, monitoring business expenses, and managing profits. The tool comes with an inventory forecasting feature that notifies you when your stock level is low. It also predicts an estimated restock date based on your sales history and sellout rate.

You can try out the ZonBase profits tool for free for 7 days when you sign up for a free trial of ZonBase.

Choose the right fulfillment option (FBA or FBM): 

Amazon offers two fulfillment options — FBA and FBM. Both options are great, but they offer different benefits, so it’s important to go for one that works best for you. 

Amazon FBA allows you to outsource major business processes like storage, order fulfillment, shipping, customer service, and returns processing to AMZN while you focus on other crucial aspects of your business; like product research, keyword research, and listing optimization.

FBM on the other hand will require you to handle your business processes by yourself from start to finish.  

Unlike FBA where Amazon is in control of your products, FBM puts you in control. However, you get to save more time and cut down shipping costs when you use FBA. If you opt for FBA though, you will have to pay Amazon FBA fees and this may add up eventually. 

Both fulfillment options are available to all sellers, but sellers who are on a tight schedule and have multiple commitments will find FBA more convenient. However, the ultimate decision is in your hands. 

Run Promotional ads 

Running promotional campaigns on Amazon can help to increase your brand awareness, thus increasing conversions and sales. 

AMZN offers a wide range of promotional tools and ad options. These tools have flexible formats with customizable features and customizable budgets that enable you to access these tools no matter your budget. 

Launching and managing promotional campaigns is a lot easier with PPC optimization tools because they also give you access to real-time insights which enable you to track the success of your ads. 

With ZonPPC, you can launch profitable campaigns and monitor the progress of your ads from start to finish. It is a data-driven and AI-based tool that allows you to monitor buds, change bids and adjust budgets on the go. 

The ZonPPC tool is available for free for 7 days when you sign up for a free trial of ZonBase.

Use social media to drive traffic to your store

Social media offers numerous benefits to you as a seller, you stand to reach a wider audience, build a connection with your customers, and showcase your product. 

It’s a great tool to build brand awareness. There are different social media platforms you could use, choose one that works best for you and start using it today. 

You don’t need to have a large budget or possess some kind of special skill, most of these platforms are easy to use and free. Create an account, showcase your product and services, join conversations, create content around your products, and include your links to drive people to your Amazon store.

Best Amazon Software for Product Research

Finding profitable products for your store is the first step to success on Amazon. But there are so many product categories, and product research may get overwhelming if you don’t have the right tools to help you sort through the several options at your fingertips. Thankfully, with Amazon software, you can now automate your product research process.

ZonBase is the best software for Amazon business automation, not just product research. The software not only offers high-tech product research tools, but also offers keyword research, listing optimization, sales estimation, and analytics tools. You will find this software useful if you want to sell on Amazon USA. You can also use the ZonBase Hot Products tool for supplier research. 

The software is quite affordable and can be accessed for free when you sign up for a free trial.

Conclusion

Selling online is always a great idea, and if you ever decide to sell online, you should consider selling on Amazon USA. If you’re located outside the United States, there may be a few challenges, but once you get past them, the rest of the journey will be a breeze. 

When it comes to choosing a niche, many factors come into play. Sometimes, it’s not enough that the product or niche that you choose is profitable. This is where beginners and newbie sellers often make mistakes.

In this article, we will discuss the different ways of choosing the right niche. We will take into consideration different factors such as fulfillment methods, product source, and difficulties in product acquisition. 

We’ll also discuss strategies and software tools to help you find the least competitive Amazon product categories. Hopefully, this article can guide you and make it easier for you to find profitable products to sell on AMZN.

Related: Best Amazon Product Finder Tool

What Is An Amazon Niche?

Before we delve deep into choosing products and categories, we should first define an Amazon niche. By definition, a “niche” is a smaller representation of a bigger segment or subdivision. It could focus on particular interests, demographics, location, beliefs, and other criteria. In layman’s terms, it can also be referred to as a “submarket”.

Let us have an example. If we have a market segment of “dog owners”, then an example of a niche would be “Siberian husky owners” or “German Shepherd owners”. The former is the whole representative of the target market segment. The latter are examples of niches that exist within the bigger market segment.

Similarly, if we have a bigger market segment called “phone owners”, then examples of niches would be “Blackberry owners” or “Nokia 3210 owners”.

Related: How to Sell on Amazon FBA For Beginners

Why Is Having A Niche Important For Sellers?

So why is a niche important for sellers anyway? Well, think about it this way. If you are a restaurant owner, would you rather sell anything you can cook, or focus on a specific cuisine such as Thai, Japanese, or Chinese? If you are a game developer, would you develop games on all consoles, or focus on either Playstation or X-Box? 

The answer is simple. Niches are much more targeted segments and sections of any general population. Because they are smaller and more concise, they are also much more refined and predictable regarding what they want. 

Niches Are More Profitable

If you try to sell basketball shoes to a large group of people with no specific niche, how many would be willing to buy them? The answer is probably not many. Not all people are into basketball, and not many will spend money to buy shoes that they won’t use. 

However, if you try to sell basketball shoes to a group of basketball players and basketball enthusiasts, you are more likely to make a large number of sales. Because your audience is already “niche” and targeted, they are much more likely to engage with something they can relate to. Hence, they can be more profitable to sell compared to the general population.

Niches Are Less Competitive

Another reason why targeting niches is important for sellers is that there is less competition. If you are selling a generic item, you’ll be more likely to be pushed away by big brands spending millions on their marketing efforts. You won’t have the machinery to compete against them.

But if you are selling a niche item and targeting a smaller group of people, you can fly under the radar. You can avoid competing with behemoth brands and start carving your piece of the pie. The competition you’ll face when selling a niche item isn’t as fierce as what you’d get if you sell an available product. 

Niches Have Engaged and Loyal Customers

Niches are just like small towns. Everybody knows each other. And because everyone knows each other, they are more likely to support the businesses that cater to them. 

Similarly, a niche is more likely to have engaged and loyal customers who keep returning for more. This is especially true if you are catering to a small niche that doesn’t have a lot of businesses providing them with the products they need.

Having a niche is like carving your little space in the heart of the AMZN community. This can be a great thing for new sellers who are too intimidated to start selling in large, competitive categories. 

Is Going For A Niche Product Better For AMZN Beginners?

First-time AMZN sellers usually don’t have enough experience yet to dive in the water with the big fishes confidently. And understandably so. According to eDesk, there are over 10 million sellers on AMZN worldwide as of 2021 (Source: eDesk). This means that you are competing in a cutthroat environment where the chance of survival is slim if you don’t make the right decisions.

Without experience, it could be very easy to make the wrong decision when choosing what products to sell. And selling the wrong ones can drain your capital and sink your business to the ground. If you sell an item with little demand and high competition, you won’t be able to recoup your investments.

For example, if you try to go for an item such as “Adidas basketball shoes”, it would be near impossible for you to rank high for it. Even with exact search engine optimization skills, you won’t be able to compete against Adidas itself. And if you can’t compete with Adidas, what chance do you have against the company’s authorized dealers? 

Yes, you can sell Adidas basketball shoes on Amazon, but it is doubtful that you will make a living out of it unless you can secure an exclusive distributor contract, which is also very unlikely to happen if you are just a newbie third-party seller on AMZN.

Instead of selling Adidas basketball shoes, why don’t you try selling something like a shoe cleaner instead? People who purchase basketball shoes will need something to clean their expensive shoes. It is a different demand that needs to be filled, and Adidas isn’t in the business of shoe cleaners. This is where you come in and fill the demand.

Going for niches is better for beginners because of the low competition. Aside from that, you can be sure that your product is well-targeted to the community of people you are selling to.

Related: Amazon Marketplaces Guide for Beginners.

8 Tips On How To Choose The Perfect Amazon Niche and Product

Ready to know the 8 tips for choosing the perfect niche and product for your business? We’ll discuss them below:

Tip #1 – Check out the market competition

This is probably one of the most important things to do before selling in any niche on Amazon. If you want to make sales, your goal should be selling in niches that have high market demand and low competition. This makes it easy for you to sell your products quickly and get more conversions from your ads.

Avoid going into a saturated marketplace especially if you do not intend to sell private-label products. Selling private-label products can help increase your chances of outranking your competitors, however, you should not completely rely on this.

Tip # 2 – Choose a product with good profit margins

The whole reason why you are selling on AMZN is to make money. So when choosing a niche item, you should always go for those with good profit margins. You must look at other sellers on the platform and check how much they sell their products. This will give you an idea of whether selling your niche product is worth it or not.

When it comes to finding products with good profit margins, Zonbase has one of the best Amazon niche-finder tools. This is called the Zonbase Chrome Extension tool, and it helps sellers discover Amazon FBA product ideas. It also helps sellers measure the profitability of a product with just a click of a button.

One of the best features of Zonbase is its profit estimator. All you have to do is fill in the blanks with your estimated selling price, target ROI (return on investment), and estimated selling fees, and watch it work its magic.

With the Zonbase Chrome Extension tool, finding a product with a good profit margin can be done during the initial research phase. This will allow you to have enough information to make data-driven decisions for your business.

If you are interested in seeing what Zonbase can do, click this link to sign up for a free trial.

Tip # 3 – Check Youtube if there are lots of videos on the niche product

One of the easiest ways to check if you are selling an already saturated item is to check Youtube. If you are selling something with lots of videos talking about it, that isn’t a niche product anymore. An item isn’t going to be in the least competitive Amazon product categories if it has lots of videos on Youtube promoting it.

Competition is one of the most important factors when choosing your product. And one of the best ways to check for the competition is not only by checking AMZN. You have got to check other huge content websites such as Youtube as well.

Tip # 4 – Dimension and Weight are important

When it comes to shipping, handling, and delivery of items, dimension and weight play a big role. Oddly shaped, heavy, bulky products will cost a lot more to ship and will take away some of your profits, When choosing the perfect product, pay attention to the product dimension and weight so you won’t have to pay extra for shipping and handling.

Tip # 5 – Choose an FBA-friendly niche product

When choosing the right Amazon niche product for you, there are many things to consider. More importantly, you should ask yourself if you are going to use FBA (Fulfillment by Amazon) or FBM (Fulfillment by Merchant).

FBA means that AMZN will be the one fulfilling your customers’ orders. When a customer makes an order, AMZN will be the one to pick, pack, wrap, handle, and ship the product to your customers. FBM means the sellers will be the ones doing their fulfillment, which is how it is normally done on e-commerce websites.

If you decide to use the services of AMZN through FBA, you will have an easier time fulfilling orders. However, there are also certain limitations and restrictions when it comes to products that are accepted in FBA. So if you are choosing a niche product, make sure that you take into consideration FBA Prohibited Products too. That is if you plan to use FBA in the future.

Related: Amazon FBA Calculator For Beginners

Tip # 6 – Visit Reddit and other niche communities

Reddit is a website where different “subcategories” of a population are allowed to create their little communities. And guess what? This is also the perfect place to hunt for niche communities where you can sell your products, too.

Many niche product ideas come directly from niche communities. They directly tell you what they want, and you can feel the demand just by lurking in these communities. Because Reddit is where these niche communities are encouraged, you can use this to your advantage. Visit Reddit to research products that have high demand in their niche communities.

Tip #7 – Check for sponsored products ads

If you’re toying with the idea of selling in a particular niche, one way to find out if there’s a good demand for your prospective product is to run an Amazon search using a relevant keyword. Check through the search results to see if there are sponsored product ads. If there are, it would be safe to assume that there is significant market demand and sellers are generating revenue from their ads.

Tip #8 – Avoid going seasonal

Now, this is mandatory. If you want to be in a seasonal niche and sell a seasonal product such as Christmas decorations or costumes, you are free to do so. However, please consider that a seasonal product can only make the bulk of its sales during a certain season. If you are selling Christmas costumes, for example, don’t expect to make the same number of sales in July or August.

When choosing the right items to sell, avoid going for seasonal products. Selling seasonal products can severely limit when and where you can sell. And your business might not make profits during the off-season.

How to Identify a Profitable Niche Product

Picking a great niche is only one part of the struggle, the next phase involves finding a profitable product that allows you to make sales easily. There are many product options to choose from, so you have to be very careful to avoid picking an unprofitable product option. Being in a good niche does not necessarily guarantee the profitability of a product. So, here are a few things to keep in mind when trying to identify a profitable product option.

Demand: It goes without saying that product demand is one of the most important things to look out for before selling any product on Amazon. Search for products with at least 300 monthly sales, or 10 sales per day which will result in a decent baseline.

Can be sold between $10 – $70: Avoid selling products that fall on either pricing extreme. Stay away from products that are too expensive, but also avoid selling products that are likely to come off as cheap. The $10-70 range is a safe price range. Also, try as much as possible to choose products that you can sell for at least four times more than the cost price.

Small and lightweight: If you want to save money on shipping or storage (if you use FBA), avoid selling large and heavy products. This is because Amazon typically charges shipping and storage fees based on product dimensions. So, the best thing to do is to sell products that are not bigger than 18” x 14” x 8” and weigh less than 5lbs.

Fewer Reviews: Another way to identify products that have good demand but low competition is to check out the number of reviews. If the products in a certain niche all have more than 300-400 reviews, try not to sell them. Choose products that have a low number of reviews, preferably between 50 – 200 reviews.

One of the best strategies for choosing profitable products is to use Amazon product research software. With software, you can uncover untapped product options and unsaturated markets to sell in. ZonBase offers an extensive suite of tools to help you with product research and niche analysis. Using ZonBase tools, you can find thousands of product options that align with the criteria outlined above.

Related: Sellers Guide to Choosing the Top Product Categories

Zonbase – The Best Software To Find The Perfect Amazon Niche Product

When it comes to finding the best Amazon product, Zonbase has the perfect set of tools. Its product research software, Zonresearch, is a dedicated Amazon niche finder for products with high demand but low competition.

To use Zonresearch, all you have to do is select the categories that you are interested in. You can also use filters to narrow down your results even further. 

For example, if you want a niche product that doesn’t have a lot of competition, you can use filters to display only those products with a low number of reviews. A low number of reviews could mean that there aren’t many sellers and products in that niche. This could be an indication of a product or category that isn’t saturated with competition yet.

You can filter results via revenue, price, sales per month, gross profits, and even product weight. All of these features make researching the perfect Amazon product so much easier. With just a few clicks of a button, you are all set!

You can try out ZonResearch and all other ZonBase tools for free when you sign up for a free trial of the software.

Conclusion

Choosing the right products to sell is difficult, especially if you start as a seller. There are many different factors to consider when it comes to making a decision. Hopefully, the points and tips shared in this article were able to help you in deciding how to choose and find a profitable Amazon niche product.

If you want a one-click solution to finding the best products to sell on Amazon, Zonbase is the perfect software tool for you. From product research to validation, Zonbase can help guide you so you won’t make mistakes in choosing what to sell.

Many listing optimization guides often focus on the importance of adding keywords, images, titles, and descriptions to listings. While all these elements are crucial, these guides leave out one more essential element — UPC codes.

Amazon requires sellers to purchase UPCs before creating listings for new products. The process of buying UPC codes may seem complicated, especially for beginners who are new to the marketplace. But in this post, we will untangle the complexities involved in buying UPCs for Amazon. We’ll tell you about different UPCs, then we’ll show you how to buy UPC codes for Amazon.

Let’s get right into it.

What is a UPC?

UPC means Universal Product Code. A Universal Product Code is a unique identification code assigned to every product. The code, usually in the form of a barcode, helps to identify individual retail items in a store. So, every product purchased from a physical or online store will have a scannable barcode on its packaging followed by a unique 12-digit number. The unique 12-digit number beneath the barcode is a UPC.

So, how does a UPC work? When the unique 12-digit number is entered into a search engine like Amazon or on a store’s system, the product connected to it comes up in search results.

In general, there are two types of UPC codes: UPC-E and UPC-A. There isn’t much difference between these codes, but the UPC-E does not include 0s. UPC barcodes are currently the most widely used in the United States and Canada. Although other countries can scan and read UPC codes, most countries outside of the United States and Canada use EAN codes. You’ll learn more about EAN codes in this post, so read to the end.

Do I Need A UPC Code to Sell on Amazon?

Yes, you do. UPCs are important if you intend to create listings for new products. AMZN requires sellers to link their products to UPCs before listing them for sale on the platform. This is because UPCs help AMZN to ensure that the brand name used to create the listing matches the one in the GS1 database.

GS1 is the company that issues UPCs, and there are over 100 GS1 organizations around the globe. Also, GS1 is the global standard for UPCs, and AMZN verifies your product code with the organization before approving your listing. If your UPC does not match the information provided by GS1, AMZN will reject your listing. However, in some cases, AMZN allows sellers to list new products without UPC codes.

There are different UPC codes like GTIN, EAN, SKU, FNSKU, etc, and you’ll learn all about them in this post. But, first, we’ll answer one question that most beginners have.

Must My UPC Code Be Printed On My Product Packaging?

AMZN requires every product in its catalog to have a UPC. But this code must not necessarily be printed on the product’s packaging before it can be sold on AMZN. However, if you’re selling through FBA, you must label all your products with an FNSKU barcode.

What is an FNSKU Barcode?

FNSKU means Fulfillment Network Stock Keeping Unit. So, an FNSKU code is Amazon-specific while UPC codes are more generalized. In other words, FNSKU codes are specific fulfillment numbers assigned by AMZN.

AMZN uses this code to identify products sent to its fulfillment centers. So, you will only need to make use of FNSKUs if you’re selling through FBA. If you aren’t, FNSKUs are not required.

How do FNSKUs Work?

When a fulfillment center employee gets your package, they will scan the FNSKU barcodes to determine which seller sent the items. This number must be added to every product that AMZN fulfills, and it must be easily scannable to speed up the process. The FNSKU is crucial since it informs AMZN of which seller to credit when a sale occurs. It also allows AMZN to trace each item back to its original seller in the event of a quality issue. Plus, it helps to prevent goods from being mixed.

If the things you’re selling come in a box or other form of packaging, you can write the FNSKU on the outside in an easily visible area. If your item isn’t packaged—for example, a single clothing item—the FNSKU can be applied to any tags on the item, including the size tag.

Where do I Get an FNSKU?

When you opt to print your shipping labels in Seller Central, FNSKU numbers will be created automatically for your products. And a distinct FNSKU will be issued for each product variation. Next, you’ll be asked to choose who will apply the codes to your shipment from a dropdown menu. FNSKU codes can be added to individual items or incorporated into your packaging. If you’re unable to apply the FNSKU codes yourself, AMZN can do it on your behalf for a fee.

As we mentioned, AMZN allows sellers to list products for sale without UPC codes. In this case, you may not need to learn how to buy UPCs for Amazon. Instead, you’ll have to learn to list products on AMZN without UPC codes.

To list products without UPC codes, you’ll need to apply for a GTIN exemption. You’ll learn about GTIN codes shortly.

Where to Buy UPC Codes for Amazon

There’s not much involved in learning how to buy UPCs you have to get your codes from GS1. GS1 is a non-profit organization that assigns barcodes to sellers. There are over 100 GS1 organizations worldwide, and these organizations assign and manage barcodes for over two million products. AMZN only recognizes UPCs that are purchased from GS1.

Sellers used to buy cheap UPCs from third-party websites and even eBay in the past. However, sellers who go through this route risk purchasing UPCs that have already been assigned to other products. But it’s better to be safe than sorry, so this isn’t something you should try.

Using inauthentic UPC codes puts you at risk of account suspension or listing rejection. So, always purchase your UPCs from GS1. You’re probably wondering how to buy UPCs for Amazon from GS1. We’ll show you this in the next section, but first, we’ll highlight some things you should do before buying UPC codes.

What to Do Before Buying UPC Codes

UPC codes cost money, so you do not want to purchase more than you need or less than you need. So, here are a few things to run through before you go ahead to buy UPC codes for Amazon.

• Confirm how many UPCs you need

How many products do you intend to sell? How many individual products will require UPCs? How many bundles do you want to list for sale? Answer these questions carefully to be sure of how many UPCs you’ll need to purchase.

• Pick a plan

Purchasing UPCs in bulk can get you some discount, however, you may not always need to buy in bulk. Small businesses can opt for single UPC or GS1 US GTIN codes which typically cost $30 each without any additional renewal costs. Large-scale businesses, on the other hand, may have to opt for the traditional GS1 Company Prefix model especially if they require more than nine UPCs. In this case, you’ll incur $250 with an annual renewal fee of $50.

• Decide on the right UPC to buy

UPCs typically vary for online businesses and physical stores. So, be sure to make findings first if you run both a physical and an online store.

How to Buy UPC Codes for Amazon From GS1

• To buy UPC codes for Amazon from GS1, all you have to do is go to the GS1 website. Then, click on “Apply for a Barcode” at the top right corner of your screen.

Before now, sellers could only purchase a minimum of 10 barcodes, at an initial cost of $250 or $50 annually. This price was relatively too high for most new sellers. Now, sellers can buy UPC codes from GS1 for $30 per UPC with no annual charge. It’s a great alternative for companies that are just starting and want to launch one product at a time.

• Next, scroll down to the “Start Small with a GS1 US GTIN” section and click “Get a GTIN”.

• Lastly, fill out the essential fields, and your UPC will be ready for AMZN!

What To Do After Buying a UPC Code from GS1

The next thing to do after you buy UPC codes for Amazon from GS1 is to create your listings. To create your listings:

• Go to Seller Central and navigate to the inventory tab. Then, click on “Add a product”.

Then, click “Adding a product not sold on Amazon”

After that, you’ll select your product’s category and proceed to enter the product’s details. This is where you’ll fill in the crucial details for your product, such as the Product ID.

Typically, it takes 24-48 hours for your listening to become active on GS1. So, if you try to list your products on AMZN before this time frame elapses, it may appear invalid. Also, when listing your products, make sure the brand name you put in matches the one in GS1’s database.

Related: How to create a seller central account

How to List a Product on Amazon Without a UPC

You’ll need a UPC or any unique identifier to successfully list a product on AMZN. However, if you do not have a UPC, you can apply for a GTIN exemption that will allow you to get approval to list your products without a UPC.

Related: How to apply for GTIN exemption

Other Product Codes to Take Note of

GTIN

GTIN means Global Trade Item Number, which also serves to identify individual products. Still, you should not confuse GTIN codes for UPCs. GTINs are a mix of GS1 US-issued corporate prefix numbers and a unique product number. They also contain a check digit to guarantee that the GTIN is successfully formed.

GTINs can be infused into different types of bar codes. For instance, UPCs and EANs. It’s important to ensure each product has a unique GTIN and you must ensure that each product variation has a globally unique code.

Sellers must provide a distinct UPC for multi-pack products in most categories. They must also include the “item package quantity” when offering multi-packs. Product bundles are made up of various products (not multiples of the same product), each with its own unique UPC (or EAN). Check out Amazon’s Product Bundling Policy for additional information.

A GTIN can be used anywhere in the world but GS1 is the only official provider of GTINs, EAN, and UPC barcodes in the world.

EANs

EANs (also known as International Article Numbers or IANs) are GS1-issued barcodes with corporate prefixes at the start of the numeric GTIN. EAN-13 and EAN-8, which encode a GTIN-13 and GTIN-8, respectively, are the two most common EANs used by Amazon merchants.

While EANs don’t necessarily identify the country where a product was made, they can still serve as useful identifiers. The type of EAN you use depends on a number of factors, like the product category and the distribution channel.

ASINs

The Amazon Standard Identification Number (ASIN) is a unique identifier for Amazon products. AMZN assigns you a 10-character alphanumeric unique catalog number, but it isn’t generated until you’ve already created your listings.

When you use a UPC to create a new product listing, AMZN will issue it an ASIN number. When many sellers list offers for the same goods, the system keeps track of them in this way.

How to Buy UPC Codes: FAQs

• How many UPC Codes do I need per product listing?

For each new Amazon product listing, you only need to acquire one UPC code. No matter the quantity of a particular product you have in stock, you’ll only need one UPC number.

• Are UPC codes the same for the same products?

UPCs for Amazon are the same if the product is the same. So, you can use the same UPC code for any quantity of a particular product. If the product has already been listed, adjust the number of items available for sale.

• Do I need to acquire a UPC code if my product is already listed on Amazon and I want to sell it again?

If the product is currently listed on Amazon and is the same, you should use that detail page rather than create a new one. If the item is already on the website, you won’t need to buy UPCs for Amazon. Just enter the active listing ASIN number in the product ID dropdown.

• Must the UPC Code appear on individual products? What if I’m listing multiple items?

You can list as many of the same items as you like with only one UPC. When generating a product listing for 100 school bags, you only need one UPC for all 100 school bags. If all the products are the same, you will not need to have multiple UPC codes.

When you create a product listing on AMZN, you’ll be given a unique identifier for each item, which you’ll need to put on each item. The UPC code is exclusively used to identify products.

Final Words

UPCs are essential to listing creation on AMZN, but you only need them when you’re listing a product for the first time. You also won’t need to buy UPC codes for Amazon if you’re selling through retail arbitrage.

If you read to this point, then you already know all you need to know about purchasing UPC codes for AMZN. Remember to always purchase your UPC codes from GS1.

Want a more efficient way to carry out product research, keyword listing, and listing optimization? The Zonbase software suite is made up of 20+ tools to assist you in running your Amazon business. Sign up for a free trial today.

If you plan to be an online seller, you can leverage the existing online platforms to start selling immediately. Instead of investing in your eCommerce site, you can set up a store on Amazon, the undisputed giant online selling platform. Tools such as the Amazon profitability calculator help you set the roadmap for business growth.

If you are not already aware of the reach that Amz has, let us walk you through it. In 2022, Amz accounted for 37.8% of all eCommerce Retail sales, and analysts expect its revenue to double by 2026 (Source: Spglobal). 55% of AMZN’s total sales come from third-party sellers (Source: Statista). As a solo internet entrepreneur, you must utilize the tremendous reach and influence of Amazon to your advantage.

Why use the Amazon profitability calculator? 

If you decide to become an FBA seller on Amazon, there are a few things about pricing an item you must know. For every sale you make, you pay Amazon seller fees. While the fees vary depending on the category and item, the four primary seller fees are seller account fees, sale-related fees, shipping costs, and Amazon FBA fees.

It can get tedious to calculate the final listing price of the item after accounting for all the fees involved. 

The solution? Use the Amazon profitability calculator. 

Why Should I Use the Amazon Profitability Calculator?

• It gives a price idea of how much profit a seller will make on each item and sale. Amazon FBA profit calculator calculates the fee you will pay for each sale depending on the product category. It includes all costs such as shipment charges based on size, weight, and volume, fulfillment fee, pick and pack fee, and storage charges if applicable. 
• It helps you understand the price break-up by showing selling fees, fulfillment costs, and the final net profit margin. 
• Sellers can fix a suitable sale price for items using the Amazon profitability calculator without any extended calculations or errors. 

As a seller, you can better plan your business strategy for profit and growth using the Amazon FBA profitability calculator. Still, you must know how profit margin calculations work.  

How To Calculate Amazon Profit: The Right Approach 

Undoubtedly, selling on Amazon can be immensely profitable. Yet, some people fail to turn a profit because they reduce the prices so much that no profit margin exists.

It is essential to understand the associated fees and get a clear picture of the costs you will incur on every order. You can use the Amazon Profitability Calculator to get the numbers, but we recommend learning to calculate your Amazon profit margin first.

Even the most organized sellers miss out on hidden costs that affect their bottom line. If you want to take hold of the market and become profitable, you must be able to figure out all costs in your financial model. These costs include:

Direct Costs: The acquisition cost per SKU, including the shipping charges.

Indirect or Overhead Costs: Every other cost involved in making the item available to the customer. It includes warehouse costs, utilities, business tax, payrolls and benefits, packaging costs, etc.

Fees: This is an important aspect you must pay attention to. Usually, the fees per order include sales commission, FBA fees, FBA inbound shipping fees, storage costs, commission on returned products, return shipping costs, and return disposal costs.

Handling Costs: This is the cost incurred in handling the items returned.

All these listed costs decide your end profit which is the profit margin.

Related: How to use the Amazon FBA calculator.

How To Calculate Your Profit Margin

Your profit margin is the difference between the revenues from sales and the cost of operating your business. The profit margin KPI is the first metric that every seller must master.

There is no easy way to calculate profit. You can get a rough idea of how profitable your business can be by calculating how valuable an item is. This is known as calculating Gross Profit Margin. You’ll also have to calculate your net profit margin and your ROI. We’ll show you how to calculate each of these criteria in this section.

Calculating Amazon Gross Profit Margin

Gross Profit Margin (%) = (Net sales – Cost of items sold) / Net sales x 100%

You can use this FBA profitability calculator equation to determine your business’s overall health.

While gross profit margin is helpful for sellers to determine the overall trajectory of their business profits, it is not as comprehensive as the Net Profit Margin equation.

Calculating Amazon Net Profit Margin

By including other costs in the equation, the net profit margin equation helps you understand how sustainable your business can be in the long run.

Net Profit Margin (%) = (Net sales – Cost of goods sold – All other costs) / Net sales x 100

Amazon FBA sellers must calculate the net profit margin as it incorporates costs like inbound/outbound shipping, Amazon seller fees, and product costs. The net profit margin is a much more accurate figure. It helps estimate the total business costs that the gross profit margin overlooks.

As an Amazon seller, use both gross profit margin and net profit margin to optimize your store’s profit forecast.

Calculating the Return on Investment (ROI)

Another KPI for FBA sellers to know is the Return on Investment. It is the simplified ratio between the return/profit and the cost of the investment you make.

Here is the ROI equation:

ROI (%) = (Net sales – Direct cost) / Direct cost x 100%

Here net sale is the revenue of your business. The direct costs include shipping costs (to you and Amazon), prices of goods, and order processing costs. Return on investment analysis helps determine what products offer high profit resell value. It further determines how short-term costs impact profitability.

Any calculator you might use will use these KPIs or Key Performance Indicators. But we intend to teach you how to calculate profit on a deeper level such that your basics are strong.

Let’s put these KPIs to work in an example. Suppose we are selling a product on Amazon for double its price, i.e., 2x the cost of the product.

We listed our product for $100 (implying the cost of the product is $50). Among other expenses are the Amz fee (we keep it at 15% of the Amazon selling price, so it’s $15) and the shipping and processing cost of $5.

First, we calculate the potential profit:

Profit ($) = (MSRP – COGS – $5 – $15)

MSRP = Manufacturer-suggested retail price

COGS = Cost of goods sold

Profit ($) = ($100 – $50 – $5 – $15) = $30

If we sell 50 units of the product, we will profit $150. Next, let’s calculate the profit margin:

Gross Profit Margin (%) = ($100 – $50) / $100 * 100% = 50%

Net Profit Margin (%) = ($100 – $50 – $5 – $15) / $100 * 100% = 30%

As an FBA seller, your focus must be on Net Profit Margin. Here, the gross profit margin yields 20% higher profits than the net profit margin. It is a substantial difference that can skew the business expense estimates badly.

Next is the Return on Investment.

In this example, our investment is the direct product cost ($50) and shipping and process fee ($10). The Amazon fees are not part of this investment as they incur after the sale. 

Let’s put the numbers in the ROI equation:

ROI (%) = ($100 – $50 – $5) / 50 * 100% = 90%

Remember that: Your business will thrive long-term when you keep tracking these KPIs and regularly make short-term and long-term adjustments. As per the Amazon Reseller guidelines, a product with a minimum of 30% ROI and a 15% profit margin is ideal. However, it might be hard to find a product that might perform well when getting started.

Everything You Should Know About the Amazon Profitability Calculator

Amazon has provided a handy Fulfilment by Amazon Revenue calculator in its Seller Central. This tool gives you a close estimate of what will be your ROI and net profit margin. The FBA profit calculator is beneficial for researching and analyzing potentially profitable products.

You can search for your product in the calculator directly by product name, UPC, EAN, ASIN, or ISBN. Once you locate your product, you can enter its price to compare it to the shipping, storage, and other variable costs to calculate your KPIs.

Since Amazon is a global eCommerce giant, the fees and costs vary depending on the seller’s location. It would be best if you use the region-specific calculator. Below are some of the region-specific Amazon calculator links.

Americas Amazon Profitability Calculator 

USA FBA Revenue Calculator

Canada FBA Revenue Calculator

Mexico FBA Revenue Calculator 

Europe Amazon Profitability Calculator 

UK FBA Revenue Calculator

France FBA Revenue Calculator

Italy FBA Revenue Calculator

Germany FBA Revenue Calculator

Spain FBA Revenue Calculator

Asia Amazon Profitability Calculator

India FBA Revenue Calculator

Japan FBA Revenue Calculator

Figuring out your Amazon store’s profitability is one of the critical business admin tasks. Determining whether a product is profitable or not is essential for your business’ success.

How to Use the Amazon Profitability Calculator

The Amazon FBA calculator is quite easy to use, all you have to do is follow the steps listed below.

• Open the Amazon FBA calculator for your marketplace. In the search box, type in the name of your product or the UPC, ASIN, EAN, or ISBN of a similar item and select the closest match from the search results on Amazon.

• In the right-hand column of the calculator, enter the price of the item, the cost of shipping the item to Amazon’s warehouse, and the total product costs. Once this information is entered, press the ‘Calculate’ button.

• In the right-hand column of the calculator, enter the product price, the shipping cost to Amazon’s warehouse, and the total product costs. Then press the ‘Calculate’ button.

The FBA profit calculator is a useful tool to help you evaluate your FBA fees. However, it should be noted that the results provided by the calculator are only approximate and should not be regarded as completely accurate. Amazon advises that you carry out your own independent assessment of the figures to ensure accuracy.

What Fees Does The Amazon Profit Calculator Cover?

The profitability calculator takes a number of factors into consideration before providing an estimate of your potential profit. A few of the costs are highlighted below.

• Selling plan fees: This depends on the type of seller account you use. If you opt for an individual account, you’ll have to pay $0.99 per sale and if you opt for a professional account, you’ll have to pay $39.99 monthly.
• Referral fees: This is a commission-based fee that Amazon deducts from every sale you make. Referral fees vary based on product category but typically range from 8% – 45%, often between the 8% – 15% mark.
• Variable closing fee: This fee only applies if you sell products in the media category, and it usually amounts to about $1.80 per item.
• FBA Fees: The calculator also factors in the regular FBA fees if you use the FBA fulfillment option. These fees include inventory storage fees, fulfillment fees, and any other fees you incur.
• Multi-channel fulfillment fees: This fee applies to only sellers who sell on other marketplaces but use the FBA fulfillment channel to store and ship their inventory.

Learn more about Amazon FBA fees.

Are There Other FBA Calculators Apart From the One Amazon Offers?

Yes, most Amazon software providers offer a profit calculator alongside other seller tools. Although the majority of these third-party profit calculators are not free, you can still check them out if you want. We have listed a few of them below.

Three unique Alternative FBA calculators 

AMZScout FBA Fees Calculator

AMZScout has an assortment of tools to help sellers earn that profit. Their FBA fee calculator is an excellent alternative to Amazon’s revenue calculator. AMZScout FBA Fees Calculator lets sellers do all the calculations while staying on the product page. It is also available as a Google Chrome extension which is free to use. 

Check it out here

SellerApp FBA Calculator

The second comprehensive calculator tool you can use for research and analysis. SellerApp FBA Calculator offers all the functionalities of AMZ’s revenue calculator. But, it also allows sellers to check the profit and compare potential costs between FBA and FBM. You can use this calculator for the net profit estimate report, product margins overview, and fulfillment modes comparison.

Check it out here

AMZSELLER.CLUB FBA Fee Calculator

Another one that has all the features for accurate calculations. This tool is very comprehensive, allowing you to input all fields necessary to calculate the per SKU profitability summary and total order profitability summary.

Check it out here

Becoming Profitable on Amazon with Zonbase 

Selling on Amazon can be a very profitable venture if you have a winning strategy. Your business’s success depends on finding the right products, researching the KPIs, and using the insights to make business decisions. It can be too extensive and laborious to do all the calculations. Tools like the profitability calculator and ZonResearch can help you put your store’s growth on top of the ladder.

Zonbase has 20+ tools and services to help you become a successful seller on Amazon. Our tools aid you at every step of the journey. Product research, listing keyword research, listing optimization, photo enhancer, and many more tools in Zonbase’s arsenal help you succeed on Amazon.

This is not only because of the vast customer base but the ease of entry that the platform provides for aspiring entrepreneurs. AMZ offers several business models for sellers who want to join the marketplace and the Amazon wholesale business model is one of them.

Amazon has a large customer base of about 300 million customers, and not all of these customers are interested in the same kinds of products. Some of them want to buy in bulk, while others just need a drop-shipper. This business model was designed to cater to shoppers who want to buy products in bulk without having to contact manufacturers directly. In this post, we will tell you all about selling wholesale on Amazon; how it works, and how you can get started selling wholesale on Amazon in 2024.

Let’s get right into it.

What Does It Mean To Sell Wholesale On Amazon?

Wholesale is a business model where sellers buy products in bulk from wholesale suppliers. After buying, wholesalers resell these products to AMZN shoppers. Some shoppers buy in relatively large quantities to resell (online arbitrage).

How Does Selling Wholesale on Amazon Work?

Setting up your wholesale business on Amazon is not difficult. With these steps, you can start and scale your wholesale business in no time.

• First, set up your seller account here.
• Next, research profitable products for your store.
• Once product research is done, source your products from genuine wholesale suppliers.
• Create and optimize your product listings.
• Launch and actively promote your products.
• Manage your business processes.

Like every other business method, AMZ has some requirements that you must provide before setting up your wholesale business. These requirements include getting a business license, a tax-exempt form, or other documents. Be sure to find out what documents you’ll need depending on your location and have them ready before setting up your Amazon seller account for wholesale selling.

Scaling your wholesale business will not be a walk in the park, especially if you’re new to the marketplace. However, most of the business processes can be automated using AMZ software. Choosing the best AMZ software for your business may, however, be difficult because there are several options. But there’s one that we recommend, and if you read to the end, you’ll learn all about it.

How Does The Amazon Wholesale Business Model Differ From Other Models?

There are so many AMZ business models available, and most of these models seem very alike. So you should study these business models properly before deciding to use them. Many sellers assume that selling wholesale is the same as retail arbitrage or drop shipping. Although these models have similarities, they operate differently. To clear up your confusion, we have compared these business models and highlighted the differences. Here you go:

Wholesale vs Arbitrage

People who sell wholesale on Amazon buy in bulk from manufacturers. In contrast, arbitrage sellers buy in smaller quantities from walk-in or online retail stores. So, wholesalers have direct contact with the suppliers; they can negotiate prices, while retailers have no contact with manufacturers.

In summary, wholesalers buy in bulk and resell to retailers while arbitrage sellers buy in smaller quantities and resell to individual customers.

Wholesale vs Drop-shipping

Drop-shipping and wholesale may sound alike but they have almost nothing in common. Drop shippers list products for sale on Amazon and have them shipped to the customer. In other words, drop shippers only serve as middlemen so they have no direct contact with the inventory.

In contrast, wholesalers are in charge of their inventory. Hence they are responsible for shipping orders to retailers who place them.

Wholesale vs Private Label

Wholesalers buy existing, already-branded products in bulk from manufacturers. In contrast, private label sellers brand their products themselves. Since wholesalers sell already branded products, they do not need to create new listings to sell on AMZ. Private label sellers, on the other hand, will have to set up new listings to sell their products on Amazon.

Pros and Cons of Selling Wholesale on Amazon

Like other business models, this model comes with its good and bad sides. So, if you’re considering setting up an AMZ wholesale business, you should take both sides into consideration. To make this easier, we have outlined the pros and cons.

Pros

• In-demand Products

If you decide to use this business model, you can leverage well-known brands. In other words, you can start by selling products that already have existing demand. Since these brands already have an audience, you will not have to spend too much on promotions.

• Restocking Inventory Is Quite Easy

Selling wholesale involves selling existing, in-demand products, so you can avoid running out of stock. You also won’t have to worry about manufacturing products back to back; the products have already been manufactured. All you have to do is make new bulk orders when necessary.

• You Can Get Your Brand Approved On AMZ

Getting Amazon’s brand approval is not easy. But if you sell wholesale, you can get this approval quite easily. This places a distinct mark on your own brand and can attract buyers to your store. As a result, you can be sure of sales even if you increase your price.

• Easy To Set Up

Not all AMZ business models are easy to set up. Private label, wholesale, and retail arbitrage are the most used models. 67% of AMZ sellers use the private label, 26% use wholesale and 19% use retail arbitrage, and the wholesale model is rated one of the easiest business models to set up on AMZ.

• Easy To Scale

Amazon businesses can be very stressful to scale, but a wholesale business is relatively easy to scale. You can also automate important business processes and focus on other aspects of your business. Also, you can maximize Amazon FBA for order fulfillment.

Cons

• Highly Competitive

Many new sellers decide to sell wholesale since the business model is easy to set up. As a result, the wholesale market on AMZ is highly competitive. Plus, you’ll have to dedicate a lot of time to product research if you want to discover profitable, in-demand products.

• Start-up Capital

As a result of the amount of inventory required, this business model requires huge capital investment and this can be risky for sellers who are unsure of the demand for their product. If you don’t make enough sales to recover your capital, you will have to bear the losses.

How to Scale a Wholesale Business on Amazon

Research The Best Products To Sell

Do not compete with Amazon directly; if AMZ already sells a product, it is in your best interest to avoid selling the same product. This is because AMZ is a big brand and can be a threat to your business especially if you’re just starting. 

Also, when choosing products for your store, try to avoid private-label products because private-label sellers also won’t let you list their products without permission. So, your best bet is to find new in-demand products with less competition. Consider selling wholesale products from well-respected brands. If you do this, you won’t have to worry about creating awareness about the products.

Choose products with the following criteria:

• Least price of $20
• At least 10 sellers and 10 product reviews
• At least 300 estimated monthly sales.

To save time on product research, you can use AMZ software like ZonBase. Keep reading to learn more about ZonBase.

Related: Sellers Guide To Bestselling Products on AMZ

Determine The Product’s Profitability

The goal of selling is to make a profit, but making a wild guess and choosing a random product doesn’t guarantee profitability. If you’re serious about making a profit on Amazon, you will have to dedicate time to estimating product profitability.

Here are a few ways to estimate a product’s profitability.

• Fix your product’s price within 2% of the buy box, this will help increase your chances of winning the buy box. If your product is priced at a relatively higher mark, you may not be able to win the buy box.

• Take account of the fees involved. Amazon’s fees are quite unpredictable especially if you opt for FBA. So, ensure you make a good estimate of the costs involved. It’s best to use an FBA calculator for this.

• Estimate the product’s sales potential. You can use a sales estimator tool for this. One way to do this is to divide the figures you get from the tool by the number of sellers on the listing. So, what if a product does 2000 in sales per month and there are 4 sellers on the listing?

Here’s how the math goes: 2000/(4+1) = 400 sales per month. We added an extra one to the number of sellers as this will be the new total if you list the product for sale too.

Having done all these, how do you determine profitability?

First, subtract AMZ’s fees and total product cost from your sales price. If your numbers look good, then the product is good to go.

Carry out supplier research

The next hurdle you will have to scale after picking a profitable product is to find a genuine supplier. This is a crucial step because if you do not source products from authentic wholesale suppliers, you may end up getting bad reviews or ratings. And bad customer reviews may lead to a decrease in sales and by extension, inevitable losses.

As opposed to looking for suppliers from the supplier database on Amazon for retail sellers, as a wholesaler, you have to search for brand owners or authorized distributors and reach out to them. One major advantage of this process is that some brand owners may help you ship your products directly to Amazon.  

Some other benefits include: 

• There’s no need to create a new brand for your business cause you’ll basically focus on being a wholesaler for an existing brand.
• Reduced cost of PPC advertising because you’ll be selling products that are already known and accepted in the market so you won’t need to worry about advertising.

In order to contact a brand owner, all you need to do is search for the brand on Google. An easy way to find suppliers is to check out wholesale directories. Just to be sure to only reach out to authentic suppliers through genuine wholesale websites. 

Here are a few wholesale directories you can check out:

• 4WholesaleUSA
• Top Ten Wholesale
• Wholesale Hub 
• WholesaleDeals.com
• ToyDirectory
• Greatrep.com

Put your products on Amazon:

Once you’ve received products from a brand, the next step is to create your product listings and optimize them. This can be done by simply going to your seller central account, clicking on inventory, and clicking add products. Then you can search for and add products by name.

Note: If your product isn’t listed on the search list, you will have to add it by creating a new listing. Ensure you use popular keywords when creating a product listing.

Once your product has been listed, you are ready to start making sales. Get proactive by ensuring that each customer gets the correct other and your inventory is always stocked.

Amazon Wholesale Requirements

While reaching out to brands, there are certain things you need to make available before you can set up a wholesale account.

Business registration document

Most brands are going to want to confirm that your business is registered legally in your state. So you need to ensure that your business has been registered and the registration information is available before reaching out to brands.

Resale certificate issued by your state

This certificate is what will enable you to buy products (tax-free) from other brands or suppliers and resell them. Most brands will ask for it before you can work for them as a wholesaler

Get a Federal Tax Identification Number

Federal Tax Identification Number or Employer Identification Number is simply a social security number for your business. Getting this EIN is usually free and can be gotten from the IRS.

Tips for Scaling an Amazon Wholesale Business

Let’s take a few steps forward, you’ve started your wholesale business on Amazon but how do you ensure that profits keep coming in? Here are some tips to help you.

Proper product research and analysis are a must

This should always be at the top of your list. Conduct a proper market analysis of any product you want to sell before putting it on the market. You do not want to sell products that nobody wants, so ensure you carry out in-depth product research. Check out product reviews, previous sales history, and estimated profit potential.

Utilize Amazon Ads

Although as a wholesaler you may not require an intensive advertising strategy, it’s always advisable you use ads. This will help you target the right customers and boost sales. 

Count the Costs

Setting up a wholesale business is not cheap, so before you decide to sell wholesale on Amazon, be sure to consider the costs. You’ll have to purchase products in bulk and may also incur high shipping fees. If you are on a budget but still want to sell on Amazon, explore other business models like retail arbitrage and dropshipping.

Amazon Fulfillment Options For Wholesalers

After sourcing products, the next thing is to put them up for sale and ship orders as they come in. As soon as you have created your listings and optimized them, you can expect the sales to roll in. However, one challenge that sellers face once orders start coming in, is order fulfillment.

AMZ has provided two fulfillment options to help sellers handle this aspect of their business, but it’s still up to you to decide which fulfillment option works best for you. You’ll have to choose between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

• Fulfillment by Amazon

Using this option allows you to outsource some fulfillment processes to AMZ. They will store, package and ship your orders. They will also provide 24/7 customer service and manage returns for you. This allows you to focus on managing your business and ensuring that your inventory doesn’t run out.

• Fulfillment by Merchant

Here, sellers are responsible for managing all business processes; storage, fulfillment, and customer service. So, if you choose this option, you will have to store, pack, and ship products yourself and the burden of customer service and return management will also be on your shoulders. You’ll also have to bear the cost of warehousing and shipping and this can drain your finances if you haven’t yet found your feet in the marketplace.

As a wholesaler, you will be dealing majorly with bulk orders. So, you will need a large warehouse to store your products. You will also need to ship orders promptly. This may be a bit costly because some retailers order relatively large quantities and shipping costs may be on the high side. So what’s the best option for you?

Since AMZ has a large warehouse and can afford to ship your orders quickly, using FBA is your best bet as a wholesaler especially if you manage other tasks. With FBA, you can leverage AMZ’s large storage space and fast shipping system. You also won’t have to worry about customer service and return management. You can also cut down on shipping costs, all you’ll have to do is add it to your product prices. The service is very helpful but it is not free, you will have to pay certain fees.

Learn all about Amazon FBA fees

How ZonBase Can Help With Scaling an Wholesale Business on Amazon

It is almost impossible to build a profitable wholesale business without adequate product research, keyword research, and listing optimization. All these business processes are essential but they can also be time-consuming. So, automating your business processes is important if you want to get outstanding results and free up time for other tasks. Using AMZ software is the best way to automate product research, keyword research, and listing optimization and still get great results.

There are several AMZ software available on the market right now, so it may be difficult to choose one. But you won’t have to struggle with this, here’s one that we can trust.

ZonBase is the best AMZ software for business automation. The software offers 14 tools for sellers who want to scale their businesses and these tools cover all business processes from product research to listing optimization. In addition to product research, keyword research, and listing tools, the software also offers a sales estimator, profits, and photo enhancer tool.

Apart from these mind-blowing tools, there is a mentorship package included. New and existing sellers who sign up for the mentorship package will have access to a team of AMZ experts who will provide expert guidance and assistance.

The software is available on a 7-day free trial, after which you will have to upgrade to a paid plan. There are two paid packages available, and the prices are very affordable. Sellers who are on a budget will get great value for money using ZonBase.

Ready to scale your wholesale business? Try out the software for FREE today.