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amazon basics

This guide provides beginners with essential information on how to sell on Amazon, including setting up a Seller Central account, choosing a business model, and understanding product listing and shipping. It outlines various selling strategies such as online arbitrage, wholesale, dropshipping, and private label, emphasizing the importance of product research and pricing for profitability. The document aims to help new sellers navigate the complexities of Amazon selling to avoid common pitfalls and build a successful business.
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© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
1 views

amazon basics

This guide provides beginners with essential information on how to sell on Amazon, including setting up a Seller Central account, choosing a business model, and understanding product listing and shipping. It outlines various selling strategies such as online arbitrage, wholesale, dropshipping, and private label, emphasizing the importance of product research and pricing for profitability. The document aims to help new sellers navigate the complexities of Amazon selling to avoid common pitfalls and build a successful business.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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How to Sell on Amazon for Beginners

Amazon is the world’s largest marketplace that provides incredible sales


opportunities.

However, if you're new to Amazon selling, it can be challenging to figure


out where to start and how to avoid silly mistakes and loss of money.

This guide will help you get started, understand the basics of Amazon
selling, and explain in simple words how it all works.

Contents

Introduction

How Does Selling on Amazon Work?

How to Create an Amazon Seller Central Account?

Business Models

Online Arbitrage

Wholesale

Dropshipping

Retail arbitrage

Private Label

What to Sell on Amazon?

How to List a Product on Amazon?

How to Ship Your Orders to Customers?

How to calculate costs, profitability, and price?


Introduction
Before you start selling, briefly glance at a few key things to remember
about Amazon sales. It is important for better understanding what to
expect from Amazon sales

Good to know before you start selling on


Amazon!

Get familiar with Amazon


Take some time to learn the basics about selling on Amazon, like how to
list products and get them shipped to customers. This will help you
avoid any bumps along the road.

Pick products that sell


Don't just sell anything! Look for items that people want to buy and that
don't have a tons of sellers offering them already.

Right pricing for making money


Before you offer anything to customers, figure out all the Amazon fees
involved (like a selling fee) so you can price your products high enough
to make a profit after all fees are paid.

Focus on profit, not volume


Focus on making money on each and every sale, not just selling a bunch
of stuff super cheap. Remember, you're running a business and your
target is to make money.
Build slow and steady
Growing a successful Amazon business takes time and effort. Don't get
discouraged if you don't see results overnight. Keep putting efforts into
your work, and it will be a really rewarding experience.

Related: Amazon Glossary for Sellers

How Does Selling on Amazon Work?


Understanding how Amazon sales work comes down to answering 10
key questions. Here you will find short answers, while below we will
discuss each of them in detail.

1. What do I need to start on Amazon?

To start selling, you must register as a seller. To do that, you must


choose a selling plan and create an Amazon seller account, called Seller
Central account.

Individual plans are for casual sellers who sell a limited number of
products, while Professional plans are creates sellers with many
products for a monthly subscription fee.

2. How will I sell?

On Amazon, sellers most frequently use 5 selling strategies called


business models: online arbitrage, retail arbitrage, wholesale,
dropshipping, and private label. All of them are reselling models, which
means you get a product for a lower price at any retailer and resell it for
profit. You can also sell products you created yourself, like handmade
items, custom designs for t-shirts or mugs, or books you wrote.

Most popular models and sellers’ ratios using them are:

Retail Online
Private label Wholesale Dropshipping
Arbitrage Arbitrage
3. What will I sell?

The next thing you need to do is to pick the products you are going to
sell. Amazon sellers call this process product research.

Typically, you will look for a product with good market demand (popular
with Amazon customers) and low competition (to be able to sell it for
the price you planned). Also, it should not have any problems (be
restricted or have other flags).

Most Popular Amazon Product Categories

Beauty & Home &


Automotive
Personal Care Kitchen

Clothing, Shoes
Electronics Appliances
& Jewelry

Most sellers use product sourcing tools to find products for Amazon.
One of the most popular product sourcing tools is Seller Assistant.
4. Where do I get a product?

After you have ensured that the product will sell, you must check it will
generate good profit. You must find a product supplier who offers a
price substantially lower than it sells on Amazon.

At the same time, a supplier must be reliable, offer good quality


products, and have dependable lead times. Depending on the business
model, you will use different types of suppliers.

Choosing Amazon Suppliers

Search for product Choose a supplier that


on Amazon meets requirements

Click Seller Assistant You’re redirected to


search icon the chosen platform

5. How many products should I buy?

In all business models except dropshipping you need to buy your


products before reselling them on Amazon. In this a case, you must
decide how many products you need. That is called inventory
management.

You can get guidance on how many units you can sell from the
estimated sales number in Seller Assistant. The general advice is not to
buy too many products (inventory) at the beginning of your journey.
6. How to add my product to Amazon?

When you have a product ready to sell, you must add your offer to
Amazon. The Amazon product page is called product listing, while the
process is to list a product. That is a place where all buyers get all the
details about item when they look for a product on Amazon.

You can either add your offer to an existing Amazon listing (if it already
exists) or create a new one (if a product doesn’t exist on Amazon).

Optimized Amazon Product Listing


Title Bullet points

Highly-ranked
keywords

High-quality
image

20+ reviews
4+ star

Don’t create a new listing if your product already exists on Amazon.


Amazon doesn’t allow multiple listings of the same product. Add all
offers of the same product to one listing.

7. How to ship the order to the customer?

When you list a product, Amazon will ask you how you are going to ship
it to the customer. That is called the fulfillment method.

You can fulfill orders yourself (with Fulfillment by Merchant, FBM) or use
Amazon's Fulfillment by Amazon (FBA) service, where they handle
storage, picking, packing, shipping, and customer service for a fee.

See the difference between fulfillment methods on the next page


FBA

Your store Amazon Customer

FBM

Your store Customer


FBA is a convenient service, but you must take into consideration for all
related fees so that they don’t absorb your profit margins. You should
also remember, that with FBA you must package the product in line with
Amazon’s requirements and send it to fulfillment center.

8. How to price a product?

Pricing competition is the key because Amazon chooses what offers it


shows based on the price (that is called a Featured Offer, or Buy Box).

Research what similar products are selling for and consider all your
costs (including Amazon fees) to ensure you make profit on each sale.
Use Seller Assistant’s FBM&FBA Profit Calculator.
9. How to know if my product was sold?

If you use Amazon FBA, they take care of shipping orders (buyer’s
purchases) to the customers. You don’t need to know exactly when you
receive each order because you don’t have to send it to the customer.

However, if you are an FBM seller and ship orders yourself, you will
immediately know how much time does it take to timely process and
ship it out. You can get this information in your Seller Central and the
Amazon Seller App.

10. How will I get money for the sold products?

Amazon takes money from the customers and then pays you what
you’ve earned. They will deposit your earnings from sales into your
seller account, minus any applicable fees. You can then transfer these
funds to your bank account.

Related: How to Sell on Amazon Without Inventory?

How to Create an Amazon


Seller Central Account?
Creating an account in Amazon Seller Central step-by-step
● Step 1. Prepare your business and personal details
What you need to register a Seller Central account:
● valid ID or passport;
● bank account or credit card statement;
● valid credit or debit card;
● mobile phone.

● Step 2. Choose an Individual or Professional selling plan


● Step 3. Open the ‘Start selling with Amazon’ sign-in page.
○ If you want to register for a Professional plan, click the
Sign-up button.

○ If you want to register for an Individual plan, scroll down the


page and click “Sign up to become an individual seller.”

● Step 4. Enter your e-mail address and password


When you enter your e-mail address and password. Amazon will send
the verification code (OTP) to your e-mail. Type it in the “Enter OTP”
field.
● Step 5. Add your business location and business type
○ Enter the country where your business is registered or
the country where you live.
○ Choose your business type from the drop-down; if you
are not a business owner, select “None, I am an
individual.”

● Step 6. Enter your personal and business details


Add your first, middle, and last name, and tick the box “I confirm my
business location and type is correct…”

● Step 7. Fill in and verify the primary contact person information


Add your country of residence and birth, the address where you live,
date of birth, and mobile number, Amazon will send an SMS with a
one-time verification pin to it. Click the “Send SMS” button, receive the
one-time verification pin, and enter it in the pop-up window.

See the screenshot on the next page


● Step 8. Enter your payment method
Add your credit card number, expiration date, and cardholder name.
● Step 9. Submit your Amazon store’s name
○ Choose any name for your Amazon store that doesn’t
exist on Amazon (you can change it later if necessary).
○ Confirm that you have the Universal Product Codes
(UPCs) for your products. If don’t know them, click “Yes”
because the majority of the products have these codes.

● Step 10. Verify your identity


○ Upload images of your passport or driving license, and a
bank statement or credit card statement

See the screenshot on the next page


○ Schedule a video call with an Amazon associate to complete the
verification and confirm the data you have provided.

● Step 11. Wait until Amazon approves your account.

Related: How to Create an Amazon Seller Central Account


How to Sell on Amazon as an Individual Seller - Complete Guide
What Are
Amazon Business Models?
Amazon business model is the way how you sell products. It defines the
kind of product you sell, how and where you get it (sourcing), and the
method you deliver the order to the customer (fulfillment).

Five popular Amazon business models include online arbitrage,


wholesale, dropshipping, retail arbitrage, and private label.

TOP MODELS PROCESS


Write business
models down
54% 25% 25%
Estimate your
Private Wholesale Retail resources
label Arbitrage
Consider pros
21% 19% 9% and cons

Online Drop- Handmade Determine


Arbitrage shipping profitability

Choose the
PARAMETER model
S
Start selling

Product type Sourcing Fulfillment


channels strategy

Selecting the right business model is the key to your success in the long
run. It helps launch, establish, and structure your Amazon sales
correctly.

However, there's no one-size-fits-all solution, and you have to choose


your own business model wisely.

Now we’ll explore the different Amazon business models and provide
insights to help you choose the one that aligns with all your goals and
strengths.
Online Arbitrage
Amazon online arbitrage (OA) is a business model of buying
cheaper-priced products from one online retailer and reselling them for
profit on another marketplace — Amazon.

How does online arbitrage work?


The main target of online arbitrage sellers is to find profitable deals.
That means, finding a product on any online retailer, discounter, or other
store to resell on Amazon with essential profit.

NUMBERS PROCESS
>50% makes
21% 5000$ monthly Conduct product
research
out of all sellers
Find product suppliers
MODEL
List products
on Amazon

Fulfill the orders


Buy low price Sell high price

CATEGORIES Calculate profit

Beauty Health
Clothing Cell Phones Repeat
Home Electronics
Games Automotive
Sports Grocery

Must know about online arbitrage

Winning product is the key


The most important step in online arbitrage is to find the right product
to sell. You have to choose a popular product that is not sold by many
sellers. It must not have issues like restrictions and other alerts.
This product should bring the profit you want.
Product research takes time
Choosing a product for Amazon is called product research. This task is
challenging and can take time and effort, but it's essential to do it right
in order to avoid costly mistakes. You can use Amazon seller tools such
as Seller Assistant to simplify your product research.

Check products for restrictions and flags


Before selling any products, you must always check them for
restrictions ( f you need Amazon’s approval to sell them), and other
flags (fragile, meltable, oversize products, etc.). It is important because
all the above may cause you either extra hassle or costs.
Seller Assistant detects these product issues.

How much does it cost to start online arbitrage?

Online arbitrage is low-cost to start, the main cost is buying products.


You can start this business model with approx. $500.

Related: Amazon Online Arbitrage: How to Make Money


Online Arbitrage for Beginners
10 Reasons Why People Fail With Amazon FBA Online Arbitrage

Check the wholesale model on the next page


Wholesale
Wholesale is a business model of purchasing products in bulk at a
discounted price from a manufacturer, supplier, or distributor and then
reselling them to Amazon customers for a profit. The profit comes from
selling the products at a higher retail price than the wholesale price.

How does wholesale work?


Wholesale differs from other business models by selling products in
large quantities. The main target of wholesale sellers is to obtain the
lowest possible prices for popular products and the best purchase
conditions.

MODEL PROCESS
Professional seller
account

Do product
Buy low price Sell high price
research

LOGISTICS Conduct product


analysis

FBA
Find suppliers

Your store Amazon Customer Source a product

FBM
List it on Amazon

Your store Customer

Must know about wholesale

High profits are generated by big investment


Wholesale sellers get low prices directly from brands and can get a
good profit on each product. Multiplied by a large number of purchased
products they generate thousands of dollars when sold.
Finding wholesale suppliers is a challenge
Popular brands often have an established sales distribution network.
That makes it challenging to convince them to sell to one more seller.
Persuading a brand to work with you requires building up a relationship
and demonstrating how your business can benefit theirs.

Product research helps avoid risks


Wholesale sellers buy products in bulk and have to invest significant
upfront amounts. Therefore, it's essential to ensure that the products
you buy are profitable and won't create issues while selling them, such
as intellectual property complaints, restrictions, or product flags, which
can lead to financial losses. Wholesale sellers avoid risks with
product-sourcing tools such as Seller Assistant.

How much does it cost to start wholesale?

Starting wholesale is costly. Initial investment can be over $2000.

Related: Amazon Wholesale: All You Need To Know


How To Negotiate Prices With Amazon FBA Wholesale Suppliers
Online Arbitrage vs Wholesale on Amazon. What is the difference?
How to Find Amazon FBA Wholesale Suppliers

Check the dropshipping model on the next page


Dropshipping
Amazon dropshipping is a business model where a seller lists products
on Amazon without physically holding the inventory. The dropshipper
lists the product on Amazon, receives an order from the buyer, and then
requests the supplier to ship it directly to the consumer.

How does dropshipping work?


With dropshipping, the seller selects a profitable Amazon product and
finds a supplier that agrees to ship it directly to the customer. The seller
then lists the product on Amazon and notifies the supplier when a
customer places an order. The supplier ships the product directly to the
customer, and the seller acts as a middleman between the supplier and
the customer.

The profit is generated by the difference between the supplier's lower


price and the seller's high price.

MODEL PROCESS

Client Your store Supplier Do product research

Find dropshipping
supplier
NUMBERS
List products on Amazon

~300$
you need to start Receive the order

Amazon Seller Plans


Forward the order
Individual Professional
to the supplier
20 categories 30 categories
Can’t do ads Can do ads
The supplier
$0.99 $39.99
ships the order
per item sold per month
Must know about dropshipping

Amazon dropshipping policy


Dropshippers must issue all product-related documents in their name.
Additionally, dropshippers must remove all third-party retailer signs
from the product and packaging.

IP complaints are a challenge


As a dropshipper, you often resell other brands’ products. However,
some brands have policies against reselling their products, and they
may file intellectual property complaints to Amazon. That may result in
listing or account suspension and money loss. To avoid this issue,
sellers can use Seller Assistant's IP Alert feature, which alerts them
about such products.

Choose a supplier with extra care


As dropshippers don’t deal with the inventory, they have little control
over the product quality and shipping time. To reduce these risks, you
must choose a reliable supplier that will ship your products on time and
in saleable condition.
How much does it cost to start dropshipping?

This model is the least expensive to start. You don’t need to invest in
inventory upfront. Your only costs are Amazon fees and
product-sourcing software.

Related: Online Arbitrage vs Dropshipping


New Dropshipping Strategy That Complies With Amazon’s Policy

Retail Arbitrage
Amazon retail arbitrage is a business model where sellers buy products
from brick-and-mortar stores retail stores at a discount and resell them
on Amazon for a profit.

How does retail arbitrage work?


Amazon retail arbitrage seller’s target is to find in offline retail stores the
products that are priced lower than on Amazon. To do so, they visit
stores that offer products at low prices. When they find such products
and make sure they are profitable, buy them and list them on Amazon

MODEL PROCESS
Install the barcode
scanner

Buy with List on Deliver


Visit a store, scan
discount Amazon to client
products

SOURCING Find the matching


listing on Amazon

Research the
Big box Discount Department product
stores stores stores

List your product


on Amazon
Liquidation Online Clearance
stores marketplaces sections Sell the product

Thrift Online deal


stores websites
Must know about retail arbitrage

You have to research products in-store


With retail arbitrage, you should use a barcode scanner to scan product
codes with a mobile app in-store to match them with Amazon products.
That is necessary for the app to show you which listing corresponds
with your product on Amazon. The app will show product profitability
and some other data, and you have to decide on the spot if you should
buy it in that retail store or not. You have to do it quickly and instantly
buy the products (the next day, the discount may be gone).

Time-consuming model
It takes much time to physically travel from one store to another in order
to find profitable deals and choose products. You have to scan their
barcodes and check all products one by one manually.

You have to replenish inventory physically


With retail arbitrage, you have to go to the physical store to get your
inventory restocked. That requires additional time, effort, and patience.

How much does it cost to start retail arbitrage?

To start retail arbitrage on Amazon, you don’t need much money. You
pay Amazon fees and buy cheaper-priced products to sell on Amazon.
The startup cost can be around $500.

Related: Online Arbitrage vs Retail Arbitrage on Amazon


Private Label
Private label (PL) is a business model where sellers create and sell
products under their own brand instead of reselling existing brands.
These products are typically manufactured by a third-party
manufacturer but customized, packaged, and marketed by the seller to
establish their brand identity on Amazon.

How does private label work?


With private label differs from other models by creating your own brand.
You can either manufacture the products yourself or hire a company to
make them for you. You must identify profitable product opportunities
through extensive market research, find reliable manufacturers, and
develop your brand including the name, logo, and packaging design.

Develop your Manufacture Deliver product


brand the product to customer

Must know about private label

Private label brand is an asset


One of the advantages of the private label model is that you own both
the brand and the product. This makes PL a valuable asset. If your
Amazon business is successful, you can sell it, and the purchase price
is often higher than with other business models.

Lower-competition model
A private label product is trademarked, and you have exclusive rights to
it. Therefore, other sellers cannot sell these products, and you can be
the only seller in the Buy Box.
Higher investment and risks
Compared to other models, starting a private label business takes more
time and effort. You need to select a product and arrange its
manufacturing. Typically, it takes 4-6 months to launch a PL product.
Because a private label brand is new to the market and has no sales
history, it is difficult to predict how well it will sell. Therefore, there is
some risks involved when investing money in a PL business.

How much it cost to start a private label?


Launching a private label product requires huge investments to produce
and promote it. On average, Amazon sellers spend $2,500 or more to
launch private label products.

Related: Amazon Business Models Guide 2024

How to choose a model for Amazon business?


Your choice of a business model has to be individual, and depend on
your resources, sales experience, and product type. Below you can find
some tips to help you select the one that fits you.

Tip 1. Start small and test


Start selling with one of the business models that are easy to set up
and don’t require a high upfront investment. That will help you learn to
sell on Amazon without much risk. Dropshipping or online arbitrage are
good options if you want to start selling on Amazon.

Tip 2. Consider your budget


Look at the startup costs associated with each model. Private label and
wholesale models require more upfront capital than online arbitrage,
retail arbitrage, and dropshipping models.
Tip 3. Consider your product knowledge
Assess your product research skills. While online arbitrage and
dropshipping require product research, product sourcing tool Seller
Assistant, can essentially simplify this task. Wholesale sellers can also
use it to validate wholesale products. On the other hand, with the
private label, you need to do extensive market analysis and understand
the product manufacturing process, branding, and marketing.

Tip 4. Don’t focus on one model


Choosing the right business model is an ongoing process. As you gain
experience and scale your business, you can adapt your business
model type to your new needs and goals. For example, many successful
Amazon sellers have grown their online arbitrage business to wholesale.

Related: Amazon Business Models: How to Choose the Right One?

What to Sell on Amazon?


Choosing what to sell is one of the most important tasks for any
Amazon seller. Ultimately, the right product makes money, while with a
problematic item, you can lose all you have invested. But how do I
select what to sell? What should I look at?

Choosing what to sell consists of 3 parts: choosing a product


category, product research (checking the product for the criteria we
will discuss below), and finding a product supplier.

Choose the Research Find supplier


product category
Note. In some business models, the process will look differently,
however, you will still need to conduct product research. For
example, wholesale sellers start by finding a supplier, then research
the list of products they get from that supplier, and choose the most
profitable of them to sell (direct sourcing, discussed below).

How to choose a product category to sell?


Amazon uses categories to group similar items together. This makes it
easier for shoppers to find what they're looking for and for sellers to list
their products in the right place. Amazon divides products into main
categories and subcategories.

Example: If you sell a smartphone, you must list it in the "Cell Phones &
Accessories" subcategory under the larger "Electronics" category.

Some product categories are more popular than others, and you have to
remember that while choosing a product. Below you can find the
categories rated by popularity among sellers.

Top Amazon product categories


Tips for choosing what Amazon category to sell
If you are not sure how to choose the category, you can use the tips
below.

Tip 1. Check if the category is restricted


Start by finding out if the category is restricted (gated). Gated
categories require Amazon's approval to sell.. In addition, as a new
seller, Amazon may not approve you to sell in a restricted category, so
it’s better to avoid such categories.

Tip 2. Look for a balance between popularity and competition


Some categories are more popular than others. However, selling in
popular categories often means higher competition because everyone
wants to sell popular products. Look for categories with a good balance
of demand and competition

Tip 3. Consider subcategories


Don't just focus on the main category, explore subcategories. A
subcategory might offer a more targeted audience – customers looking
for products of your kind.

Tip 4. Use your knowledge and experience


Start selling with what you are interested in and have knowledge about.
That will be easier for you to handle and get involved with.

Related: Top Amazon Product Categories


How to choose your first product?
When you’ve chosen the category for your products, it’s time to start
looking for your first product. In essence, that means you must ensure it
meets specific criteria for best-selling products. This is called product
sourcing.

To simplify this process, sellers use a product research checklist and


make sure the product meets that checklist. If it does, that’s a profitable
deal you can sell it without hesitation.

To research a product, we will use Seller Assistant, a popular and


effective product-sourcing platform. It allows you to choose items with
good profit potential and no issues. It also helps find reliable suppliers
with competitive prices.

13 steps to choosing your Amazon product


● Step 1. Remove the referral from the product link
Make sure the product link you use doesn’t contain a referral (part of
the link, starting with ref=). It can give you wrong information about the
product. For example, you may not see all seller offers or product
variations (different sizes and colors of the same product).

How to do it. Delete the part of the link, starting with ref= and refresh
the page.
● Step 2. Check a product for IP alerts
Before selling a product you must make sure it doesn’t have any
IP (intellectual property) complaints.

IP complaints happen when brands complain to Amazon that other


sellers resell its product without permission. Amazon will not allow you
to list such products because they are trademarked.

How to do it. You can detect products with IP complaints with Seller
Assistant's IP Alert tool. It shows the red triangle icon if a product has IP
complaints and the type of IP complaint. That means you have to stay
away from that product and brand.

● Step 3. Check competition by FBA seller count


The next step helps avoid products with high competition. If many
sellers compete, they drop the price and you can lose much of the
profit.

The «good» count of FBA seller offers must range from 2 to 15.
○ The minimum number of 2 sellers shows that a product
is not sold by a brand owner and it doesn’t file IP
complaints if someone else sells that brand’s products;
○ The maximum number of 15 sellers shows that the
competition is too high. If that is the case, the product
price can drop because the sellers engage in a price
war. That means price dumping and low profits.

How to do it. You can see the count of FBA sellers with Seller Assistant.
It shows the count of FBA and FBM sellers on the product and search
pages. The number on a blue background is the count of all FBA or FBM
sellers. The number on the white background next to it is the count of
FBA or FBM sellers offering the Buy Box price +5% (your potential
competitors).
Related: How to Avoid a Price War on Amazon

● Step 4. Check if Amazon is a seller


Amazon can sell some products as a seller in its own marketplace. If
Amazon sells a product, it is not suitable for selling. That is because it is
almost impossible to compete with it. As a huge retailer, it always get
the best offer. Therefore, it’s better to find another product to sell.

How to do it. You can see if Amazon is a Buy Box seller with Seller
Assistant. It shows the Red Amazon icon on the product and search
pages.

● Step 5. Check out the listing age


The product listing must be old enough so that you can see how the
product sales and price behaved over time. The «good» listing age is
half a year or more.

How to do it. You can see that on the chart integrated within Seller
Assistant (it’s called Keepa charts). If a product is new, the chart will not
show you any data before a certain period.
Related: How to Avoid a Price War on Amazon

● Step 6. Find out how well the product sells


Amazon doesn’t show how many products are sold per month.
However, you must know how much you can sell.

Amazon has a special indicator called Best Sellers Rank (BSR) to


estimate how good (or bad) the product sells, but it doesn’t give you the
number of sales. It shows the sales trend. The lower the rank, the better
the product sells. It constantly changes, so you must look at the
average BSR over 90 days.

How to do it. Seller Assistant calculates how many products you can
potentially sell per month in the Sales field. Drops (BSR drops) show
how many products were sold during 30, 90, and 180 days.

You can also see BSR figures with Seller Assistant. If the BSR number is
green and the arrow beside it points down, the product is a good option
for selling. If the BSR number is red and the arrow beside it points up,
the product is not a good option for selling.
Related: Amazon Best Sellers Rank – Everything You Need to Know

● Step 7. Estimate the selling price


Look at the maximum and minimum price and average Buy Box price
(the offers Amazon considers the best and shows on the listing).

How to do it. Seller Assistant shows the average Buy Box price (Avg
BB), and if it goes up or down compared to a 90-day price (green arrow
up or red arrow down). It also shows the lowest FBA (Min FBA) and
lowest FBM (Min FBM) prices. You can set your price somewhere in
between. You can use this price level to calculate if your product will
bring profit.

Related: What is Buy Box? How to Win Buy Box on Amazon

● Step 8. Research if the product has variations


Amazon variations are different attributes of the same products such as
size, color, style, etc. grouped on one listing.

If a product has variations, not all of them will sell equally well. If you
want to sell a product with variations, you must select one of the
best-selling variations. However, the BSR doesn’t show which sells the
best because it is calculated for the whole variation family.
How to do it. Seller Assistant’s Variation Viewer lets you quickly see all
variations' rating share, total ratings, and the rating percentage per
variation (Share). The highest percentage indicates the most
profitable variations. Variation Viewer also shows if a variation is out of
stock. (if your Amazon Seller Account is connected to Seller Assistant)

Related: How to Add a Variation to an Existing Amazon Listing

● Step 9. Look at product reviews


Reviews are buyer feedback about a product in the form of a star
rating or a text. The rating ranges from 1 to 5 stars. If a shopper rated
your product over three stars, it is a positive review. If the product has
less than three stars, it’s a bad review.

How to do it. Seller Assistant shows reviews on the separate Keepa


chart. A «good» product must have reviews. If it doesn’t, it has too
recent sales history or doesn’t sell. The average rating must be 4-5
stars, and it must not have many negative reviews.
● Step 10. Verify selling eligibility and restrictions
Certain products require Amazon's approval for sale. You may not be
eligible to sell some products on your account. You must check that
before buying products because Amazon may not allow you to add
them to the listing.

How to do it. Seller Assistant shows a green open lock icon if you can
sell a product and a red closed lock icon if you can’t.
(if your Amazon Seller Account is connected to Seller Assistant)

● Step 11. Check product for flags


Product flags are alerts notifying that a product can create problems
when you sell it on Amazon.

Examples are oversize, fragile, meltable, hazmat, adult, and other


products. Most of them are restricted categories. Even if not, they
require extra shipping costs like heavy and bulky, hazmat, and fragile, or
you can’t add your offer to the listing like with generic brands.

Also, some are not sold all year round like meltables. Some categories
are processed in special Amazon fulfillment centers, which delays
shipment (oversize, hazmat).

That means it’s better to avoid such products.

How to do it. Seller Assistant shows all product flags directly on the
Amazon product and search pages.
Seller Assistant flag icons legend

Closed Red Lock icon — you can’t sell the product on your account, or it
belongs to a restricted category;
Red Triangle icon — IP alert;
Red Box icon — the product is oversize;
Red Glass — the product is fragile;
Red Drop — the product is meltable;
Hazmat icon — the product belongs to the hazardous materials;
18+ — the product belongs to Adult goods;
Red Amazon icon — Amazon is a Buy Box seller;
GB — generic brand (you can’t add your offer to the listing).

● Step 12. Assess estimated sales


Estimated sales are how many product units you can sell per month.
Your target estimated sales depend on how much you plan to make to
cover expenses and make enough profit.

How to do it. Seller Assistant calculates estimated sales for each


product if you become one more seller on the listing. The figure
appears in the ‘Est’ line. This helps you understand if you can sell as
many units as you expect.
● Step 13. Calculate product profitability
ROI (Return on Investment) shows how profitable your Amazon business
is. Typically, anything above 10% is considered a “good” ROI for your
Amazon business. If your ROI is more than 10%, the product is OK to
sell. To calculate ROI, you must divide net profit by total investment.

How to do it. At this point, you will only need an estimated ROI to have
an idea if a product is profitable or not. To calculate ROI, you must know
the Cost of Goods Sold (COG, the product price at the supplier’s site).
You can look up the price at several suppliers and take the average.
Seller Assistant’s Quick Links allow you to quickly search products on
Google, Google Shopping, eBay, Walmart, Target, Katom, The Home
Depot, and Alibaba, and find the suppliers and prices. To do that, click
on the search icon, and in the drop-down, select a website you want to
search the product on. You will be redirected to search results.

Then, you can quickly calculate ROI with Seller Assistant’s FBA&FBM
profit calculator. It will be displayed on the Amazon product pages. Aim
for Return on Investment (ROI) above 10% to ensure profitability.
How to find your product supplier?
After you made sure the product you plan to sell meets all the above
criteria, you have to look for a reliable supplier who offers low prices for
your product. That will give you a good profit when you sell your
product on Amazon.

Finding a product and its supplier for your chosen product is called
product sourcing.

You can conduct product sourcing in several ways. The two most
popular are called – direct and reverse sourcing.

Direct Sourcing Reverse Sourcing

Find the product on the


supplier’s website Find the product on Amazon

Check it on Amazon Check it on the supplier’s website

How to find a supplier with direct sourcing?


The first way to find a supplier is direct sourcing. With this method, you
select a product from the supplier and find its match on Amazon. That
means you find a product at a low price at a supplier’s site that has a
much higher price on Amazon.

Direct sourcing is often used by wholesale sellers and those sellers


who have existing suppliers. This is suitable if a supplier gives you a
good discount and offers you a big price list of their products. You can
select the items from that list to resell on Amazon for profit.

Other reasons to use this method are if a supplier offers you large
discounts for bulk deals, or if you know that the supplier is reliable and
delivers orders to Amazon’s fulfillment centers fast.
Direct sourcing step-by-step

● Step 1. Open the supplier’s website.


● Step 2. Open Seller Assistant’s Side Panel View.
Side Panel View will appear on any website and show you a match on
Amazon for the product you selected on that website. On the supplier
website, select the text you want to search (product title, brand, or
model), then right-click, and choose “Search with Seller Assistant”.

● Step 3. Find your product on Amazon


Side Panel View will show you all available Amazon offers of similar
products. Find the one you want to sell.

● Step 4. Make sure the product matches the item on Amazon


Open the product and make sure it exactly matches the one on the
supplier’s website. Compare the brand name, model, size, color,
materials, and pictures to make sure they are identical.
● Step 5. Conduct product research
Because in this method we start by finding a supplier, we need to
conduct product research afterward. Go through all 13 steps of product
research we discussed above to make sure the product is suitable for
selling.
● Step 6. Calculate profit and ROI with Seller Assistant’s FBA&FBM
profit calculator
Enter the Cost of Goods, choose the fulfillment method, add prep
center or 3PL costs if you use these services, get the profit and ROI
figures, and see if they meet our criteria.

● Step 7. If everything looks fine, order the product from the


supplier.

How to find a supplier with reverse sourcing?

The second way to find a supplier is reverse sourcing. With this


method, you select a product on Amazon and find its match at the
supplier’s site. That means you find a suitable product on Amazon and
look for the same product at a much lower price at the supplier’s site.

Reverse sourcing is often used by online arbitrage sellers and


dropshippers because they source many products from different
suppliers, and the decisive factor for a supplier choice is the low price.

Reverse sourcing step-by-step

● Step 1. Open on Amazon a product you want to sell.


● Step 2. Explore supplier options
Open Seller Assistant and click the search icon on the top left corner.
Seller Assistant will display a drop-down list with the most popular
supplier websites
Seller Assistant supplier links
● Google Shopping;
● eBay;
● Walmart;
● Target;
● Webstaurant (Home and Kitchen supplies);
● Katom;
● The Home Depot;
● Alibaba (for international sourcing).

● Step 3. Redirect to search results


Select a supplier website from the list and Seller Assistant will then
redirect you to the search results page for that product on the chosen
supplier's platform.
● Step 4. Make sure your product on Amazon matches the one at
the supplier’s website.
Open the product with the best price. Activate the Seller Assistant’s
Side Panel View icon. It will automatically appear on the supplier's
website. Compare all product information on Amazon and at the
supplier’s website: brand name, model, size, color, materials, and
pictures to check if they are identical.
● Step 5. Calculate profit and ROI with Seller Assistant’s FBA&FBM
profit calculator
Enter the Cost of Goods (product price at the supplier’s website),
choose the fulfillment method, add prep center or 3PL costs if you use
these services, get the profit and ROI figures, and see if they meet your
criteria.

● Step 7. If everything looks fine, order the product from the


supplier.

How Many Products Should You Buy?


When you first sell a product, you don’t know how fast it will sell.
However, you must determine how many products you need to buy.
Here are several ways to do that.

Tips to calculate the number of product units to buy

Look at estimated sales and BSR drops


You can get guidance on how many units of a product you can sell from
the estimated sales number in Seller Assistant. It shows 3 figures
related to potential product sales: Est (your sales potential per month if
you become one more seller on the listing), Drops (BSR drops during
30, 90, and 180 days, showing how many products were actually sold),
and Sales (sales estimation based on BSR). Use them to understand
how many products to buy. The general advice is not to buy too many
products (inventory) at the start.
Check Minimum Order Quantities
Amazon wholesale sellers must often purchase the minimum number of
units a supplier requires to purchase to fulfill an order – Minimum Order
Quantities (MOQ). In that case, they must buy the number of units set
by a supplier. However, the numbers are often negotiable.

Consider Amazon storage fees


Amazon charges storage fees based on product size and time in
fulfillment centers. The aim is to balance between having enough stock
to meet demand and avoiding high storage costs.

Delivery time
Consider how long it takes for your supplier to deliver new inventory.
Take into account this lead time into your calculations to avoid
stockouts.
Research competition
Analyze how many units competitors have in stock. This can help you
determine a strategic amount to order without overstocking. Seller
Assistant’s Stock Checker shows how many product units are available
in stock.

How to List a Product on Amazon?


There are two types of products on Amazon — those that already exist
in the Amazon catalog and those that don’t. You must list these types of
products in different ways.

Listing existing Amazon products


Existing products are added to the listings already created on Amazon.
If you resell other brands with online arbitrage, retail arbitrage,
wholesale, or dropshipping, your products likely already exist on
Amazon. According to Amazon rules, you can’t create duplicate
listings of the same product. Your offer must be added to the same
listing alongside other sellers’ offers.

Listing existing products step-by-step


Step 1. Go to your Seller Central account. In the side navigation menu,
select Catalog > Add Products.’
● Step 2. In the search bar under ‘Find your products in Amazon’s
catalog,’ find your product by title, description, or keywords.

● Step 3. Find your product in the list, select condition, and click
‘Sell this product.’

● Step 4: Create your offer: add your selling price (Standard


Price), product condition (Offering Condition Type), and
fulfillment channel (Fulfillment by Merchant — FBM, where you
fulfill products yourself, or Fulfillment by Amazon — FBA, where
Amazon picks, packs, and ships your products for a fee).
● Step 5. Click ‘Save and finish.’

How to list new products on Amazon?


If you’re going to sell a product that doesn’t exist on Amazon, you have
to create a brand-new listing. Majorly, new products are private label.

Listing new products on Amazon step-by-step


Step 1. Go to your Seller Central account. In the side navigation menu,
select ‘Catalog’ > ‘Add Products’ > ‘List Your Products.’ Click the ‘Blank
form’ button above the search bar and the ‘Start’ button below.

● Step 2: Enter the product name and confirm the primary product
category specified by Amazon (or change it).

● Step 3. Add a brand and product ID, and click ‘Next.’


● Step 4. Amazon will ask you to get brand authorization. Click
‘Apply to Sell’ and provide the necessary information. Wait for
approval.

● Step 5. When you get the approval, fill in the description,


product, and offer details, and add safety and compliance
documents, if necessary.
● Step 6. Click ‘Save and finish.’

Related: How to List Products on Amazon in 2024 - Complete Guide


How to Ship Your Amazon Orders to
Customers?
When you add your products to Amazon, you must specify how you will
ship orders to the customers. Delivering your orders to customers is
called fulfillment.
On Amazon, there are two most popular fulfillment methods: FBM, or
Fulfillment by Merchant, and FBA, or Fulfillment by Amazon.

Fulfillment by Merchant

Amazon FBM, also called self-fulfillment, is when you, as a seller, handle


the packing and shipping of orders yourself. FBM puts you, the seller, in
control of all aspects of the fulfillment process.

This method works well for sellers who don’t have many orders and
can take care of packaging and sending them on their own. However,
you must remember to package (prepare) your orders securely and add
all necessary barcodes and labels. Another common reason to use FBM
is when you sell bulk or other non-standard products and Amazon
fees are high.

MODEL PROCESS

List your products

Choose the
Client Supplier
fulfillment option

FOR WHAT Store your inventory

Receive an order

Exclusive Small- Low-profit


products volume products Pack and ship
orders

Handle customer
service
Hand- Hard- Meltable
Made to-ship
How Amazon FBM Works
● Step 1. Choosing FBM
When adding a product offer in Seller Central, under "Inventory > Add a
Product," select "I will ship the item myself" in the Fulfillment Channel
section. This indicates you'll handle shipping instead of Amazon's FBA
service.
● Step 2. Inventory storage
With FBM, you're responsible for storing your products. This could be a
dedicated warehouse, a spare room, or even your garage.
● Step 3. Packing and shipping
Once a customer buys your product, you're responsible for securely
packaging and shipping it to them. Ensure you use appropriate
packaging materials and choose reliable shipping carriers.
● Step 4. Customer service
You'll have to handle all customer inquiries and issues, from answering
questions about the product to resolving any problems that might arise
after the sale.

Related: What is Amazon FBM and How Does it Work?

Fulfillment by Amazon

MODEL PROCESS
Add inventory to FBA

Prep & send


Store Amazon Customer inventory

BENEFITS Amazon stores products

A customer
makes an order

Storage Faster FBA fulfillment


shipping

Manage
inventory
Fulfillment Customer
service
FBA is when you send your inventory to Amazon's warehouses, and the
platform handles the picking, packing, order shipping, and customer
service on your behalf for a fee.

With FBA, Amazon handles your logistics, saving you time and hassle.
However, keeping track of your inventory levels and ensuring you're
sending enough stock to Amazon's warehouses to replenish your stock
is still important. Also, you must take care of shipping inventory to
Amazon’s fulfillment centers.

How Amazon FBM Works


● Step 1. Selecting FBA
When you list a product on Amazon, in Seller Central, under "Inventory >
Add a Product," choose "Fulfillment by Amazon" in the Fulfillment
Channel section. This puts Amazon in charge of fulfillment.
● Step 2. Sending inventory to Amazon
Once you have products ready, you'll create a shipment plan in Seller
Central and send your inventory to Amazon fulfillment centers. Make
sure to follow Amazon’s detailed instructions on packaging and labeling
requirements.
● Step 3. Storage, picking, packing, and shipping
Amazon stores your products in their warehouses until a customer
orders your FBA product. Then they pick, pack, and ship it directly to
the customer. They handle packaging materials, shipping costs, and
carrier selection, for a fee.
● Step 4. Customer service
Amazon manages most customer service inquiries related to FBA
orders, including questions about delivery or returns. You can set
preferences for how you want to handle specific issues.
● Step 5. Inventory management
You must track your FBA inventory levels and manage product
reordering. Remember that with FBA you'll have to pay Amazon storage
fees based on product size and storage duration.

Note. Amazon will ask you a question about your fulfillment method
when you list your products, and it’s necessary to select FBA or FBM.
You can change it at any time if you need.

Related: How Does Amazon FBA Work. Is Amazon FBA Worth it?
How to choose between FBA and FBM?
If you are not sure what is better for you: FBA or FBM, look at these
factors to pick the best fit for your business.

Choose FBA if Choose FBM if

Sell many No place for Slower-moving Have


products inventory inventory expertise

Don’t have Standard-size Have a Items are unique


experience tier products partner or non-standard

Go for FBA
● If you sell many products
FBA can help you handle large order quantities you can’t manage
yourself. Amazon's fulfillment centers ensure efficient picking, packing,
and shipping, freeing you to focus on growing your sales.
● If you do not have experience with fulfillment
Amazon has strict packaging requirements. If you fail to prep your
inventory in line with their rules, they will charge you extra for prep
services. That can also create unnecessary delays. If you are not sure
how to prepare your products, you can use Amazon’s services.
● If you don’t have a place to store inventory
If you don’t have a warehouse where you will keep your products until
they are purchased, Amazon will store them in their fulfillment centers.
However, you must remember about the storage fees.
● If your products have standard-size tiers
FBA works best with products that fit within their standard size tiers.
Amazon charges bulk and heavy products differently from standard
items, and the fees are much higher.

Go for FBM
● If you have slower-moving inventory
For products that don't sell quickly, FBM can be more cost-effective.
You avoid storage fees associated with slow-moving items in Amazon
warehouses.
● If you have logistics expertise
If you have experience in packaging, shipping, and customer service,
you can save money by handling fulfillment yourself with FBM.
● If you have an existing shipping partner
If you already have a reliable shipping and delivery partner, FBM allows
you to leverage their services and potentially negotiate better rates
than FBA fees.
● If your items are unique or non-standard
If you sell handcrafted or exclusive products, you may want to buy
custom packaging, while Amazon offers standard solutions. Then you
can fulfill these products yourself. Also, if your products have
non-standard sizes or require special handling, third-party solutions
may be cheaper than Amazon.

How to Package Amazon FBA Products?


Proper packaging ensures your product arrives safely and keeps your
customer happy. It is also important to stick to Amazon’s requirements
because Amazon can charge you for improper packaging because they
will repackage the product.

Steps to package your product


● Step 1. Select the right-sized box
Use a box that fits your product. Avoid excessive empty space that can
cause items to shift during transit. Amazon recommends using new,
sturdy boxes to ensure they can withstand the shipping process.
Repurposed boxes might not be strong enough.
● Step 2. Secure the product
Use void-fill materials like packing peanuts, bubble wrap, or air pillows
to prevent your product from moving around inside the box. Ensure the
product is well-cushioned, especially for fragile items.
● Step 3. Label orders clearly
Adhere to the Amazon shipping label provided with your order clearly
on the outside of the box. Ensure the barcode is easy to scan. Use a
special internal Amazon barcode, FNSKU, if Amazon requires it. Don't
include any other markings or labels on the box unless they're part of
Amazon's labeling requirements.
● Step 4. Include a packing slip
While not mandatory, including a packing slip with the customer's order
details inside the box can help ensure that everything you sent was
received. This can also help with order discrepancies or returns.
● Step 5. Remove the supplier's pricing
Don't leave any original pricing information on the product or packaging.
How to Ship Inventory to Amazon FBA?
While Amazon does the majority of fulfillment jobs if you use FBA, you
still need to send your inventory to Amazon’s fulfillment centers. To do
that, you must prepare (package) products as per Amazon requirments
and create a Shipping plan in your Seller Central to tell Amazon what
and how you will send.

Steps to send products to Amazon FBA


● Step 1. Create a Shipping Plan
In your Seller Central side menu, go to Shipments > Send to Amazon.

● Step 2. Select products and quantity


Select the products you want to send to Amazon and specify the
quantity for each item.
Ensure the product information (size, weight, etc.) matches your listings
to avoid processing delays.

● Step 3. Prepare your products


Package your products individually according to Amazon's guidelines
we discussed above. Then, confirm the shipment.
● Step 4. Print box labels
Each box must have a unique FBA box ID label printed from your
shipment workflow. If your product requires FNSKU labels, print them
and apply them to the package. Check that the barcodes are visible on
your box, and are not covered, also don’t fold over the edges. Make
sure the labels are in line with Amazon’s requirements.
● Step 5. Send your package to Amazon
When you have finished the steps above, send your package to the
carrier you’ve selected to be delivered to Amazon.

How to Price Your Amazon Products?


When pricing your products, you must always make sure your sales
generate profit. When you resell something on Amazon, the profit is the
selling price on Amazon minus all costs.

If you want to get profit from sales, you must price your product in such
a way that it includes the profit you want to get, the cost of the item
you resell (Cost of Goods Sold, COG), Amazon fees, shipping and
handling costs (fulfillment), and other expenses.

On the other hand, your price must be competitive. That means it must
be attractive to Amazon customers. It can be equal to 2-3% or higher
than the Buy Box price.

Therefore, to set the «good» price, you must maintain the balance
between your costs and profit on one hand, and the Amazon Buy Box
price, on the other hand.

What are Amazon sales costs?

When you calculate your selling price, you must include such costs as
COG, all Amazon fees, shipping and logistics, and sales tax and VAT if
applicable.

Cost of Goods Sold


COG (Cost of Goods Sold) is the price you paid for the item you resell.

Amazon fees
All Amazon sellers selling plan fees and referral fees. Also, there are
optional fees. You pay them if you use additional Amazon services.
● Selling plan fees
○ The Individual plan costs $0.99 per unit sold, and the
Professional plan costs $39.99 per month, no matter
how many units you sell;
○ The Professional plan will save you money if you sell
more than 40 units per month.

● Referral fees
The referral fee is paid for each item you’ve sold on Amazon.
The fee is a percentage and depends on the product category.
Most referral fees are between 8% and 15%. However, in some
categories, like Amazon Device Accessories, it hits 45%. In some
cases, a minimum referral fee is applicable.

● Fulfillment costs (FBA or FBM)


○ FBA fees
■ Fulfillment fees are charged per unit. They are
calculated based on the weights and dimensions
of the product. The fees differ for standard and
oversized products and depend on the size tier.
Also, some products that require special care
(hazmat, fragile, etc.) may be charged extra;
■ Storage fees are charged for storing inventory in
Amazon’s warehouses. These fees are calculated
based on the daily average volume of the space
inventory occupies. The rate is based on product
type, size tier, and time of year.
■ The inbound placement service fee is the cost
of spreading inventory across Amazon’s
fulfillment centers close to customers. The fee
was introduced on March 1, 2024.
○ FBM fees
Unlike FBA, FBM sellers pick, pack, and ship your products and handle
customer service by themselves. FBM sellers don’t pay for these to
Amazon. They pay to third-party service providers.

● Other fees
Amazon may charge you other fees in some categories (Closing fees for
selling media products), High-volume listing fees if you have more than
100,000 products listed, and Refund administration fees if the customer
asks for a refund.
● Logistics costs
Logistics costs are expenses for preparing orders (packaging and
labeling) and delivering them to the customer (FBM sellers) or Amazon’s
fulfillment center (FBA sellers).
○ Shipping to Amazon and prep center costs (FBA)
Shipping to Amazon includes the cost of shipping from
the supplier to the Amazon fulfillment center.
■ Prep center fees
If you sell many products, you can use a
specialized service - preparation (prep) center.
The prep center is a service provider preparing
your inventory for fulfillment according to
Amazon standards. Prep center fees vary
depending on which prep center you use.
○ 3PL costs (FBM)
3PL is a third-party logistics service provider preparing
your inventory and shipping it to the customer.
● Sales tax and VAT
○ Sales tax for Amazon sellers is typically collected by
Amazon on behalf of sellers. But in some cases,
depending on where your business is located, you will
need to collect it yourself;
○ VAT (Value Added Tax) is paid when you sell
internationally.

Related: Amazon FBA Fees 2024


Amazon FBA Storage Fees Explained
Amazon FBA and FBM Fees in 2024

Profitability and break-even point


When you set your price, you have to know how much money you will
get after all costs are being pais, and how profitable is your investment
in the product.

Profit
Profit is calculated the selling price minus COG, referral fees, FBA fees
(for FBA sellers), monthly storage fees sales (for FBA sellers), tax and
VAT (if applicable), and logistics (3PL) costs (for FBM sellers).

Selling Price Total Expenses

Profit
ROI
ROI (Return on Investment) is the profitability of investment expressed
as a percentage. ROI is calculated profit divided by COG, sales tax, and
3PL costs and multiplied by 100%. A «good» ROI is more than 10%.

money you make after


subtracting all the expenses

Net Profit
100
Total Investment
including cost of inventory,
equipment, and marketing
and advertising costs.
Margin
The profit margin shows the profit percentage generated by sales. It is
calculated profit divided by price and multiplied by 100%. A «good»
margin is 10-15%.

Net Profit
100
Price
Margin

Break-even price point


When you set your price, you have to calculate the break-even price
point (your minimum selling price). A break-even price is the price point
at which you earn zero profit, and will only cover the costs if you sell a
product.

It’s important to set the break-even in such a way that you won’t lose
money when you reprice the

How to calculate costs, profitability, and price?


The most convenient way to calculate costs and profitability is Seller
Assistant’s FBA&FBM calculator. It helps you calculate your expenses
and product profitability.

You have two options: products fulfilled by Amazon (FBA) and products
fulfilled by sellers (FBM). You can quickly calculate product profitability,
fees, and logistics expenses for FBA and FBM separately.
Steps to calculating product price
● Step 1. Set your desired price
Seller Assistant shows you the maximum FBA and average (over 90
days) Buy Box prices (the best price offer). Click the small arrow beside
the “Price” to set the Buy Box +2, 5, and 10%.

● Step 2. Calculate your Amazon fees


Enter the Cost of Goods Sold (product price at the supplier’s site) in the
COG field. Select your fulfillment method (FBA or FBM). For FBA, you
can choose the inbound placement fee option in the Plmt field (by
default it is set to Optimized shipment split, $0). The calculator shows
you all Amazon fees.

● Step 3. Enter logistics costs


For FBM, add 3PL (Ship + Prep + Frgl) and shipping costs, for FBA add
prep center fees (if you use that service), and shipping to Amazon
costs.
● Step 4. Choose the minimum and maximum prices
Estimate the product’s profitability. The calculator automatically shows
your profit, ROI, and margin. Hover your mouse over the ROI figure, and
the calculator shows you the selling price with 0, 10, and 20% profit and
ROI. Choose the minimum and maximum prices with the profit levels.

● Step 5. Go to the Amazon repricer


In your Seller Central menu, go to Pricing > Automate Pricing
● Step 6. Configure pricing rule
Select the pricing rule you want to use, and the number of SKUs, and
click edit SKU.

● Step 7. Set minimum and maximum prices


Enter your selling price, minimum and maximum price levels you have
calculated with Seller Assistant in step 4, and set the rule. Amazon
Automate Pricing will automatically adjust your product prices against
your competitors to increase your chances of winning the Buy Box. It
will automate your product price changes as they change on Amazon
within the set limits.

How to Know if My Product Was Sold?


When you use Amazon FBA, they take care of all order fulfillment
processes, and you don’t need to know exactly when you receive each
order. However, as an FBM seller, you must know it immediately to
timely process and ship it out.

You can get this information in your Seller Central Order and the
Amazon Seller Mobile App.
How to check product sales in Seller Central?
To check when a product sells in Seller Central, from the Menu, go to
Orders > Manage Orders.

In the Manage Orders, you will see the customer orders in ‘Pending.’
After Amazon confirms the purchase, the status will change to
‘Unshipped.’ That means it’s time to ship the order.

How to check if product sales in the Amazon Seller App?


In the Amazon Seller App, you will be automatically notified when it’s
time to ship out the order.

How will I get money for the products I sell?


Amazon pays sellers every two weeks, on the 1st and 16th day of each
month. The terms of Amazon payouts to sellers for their orders are
called Amazon Seller Payment Schedule.

To get paid for your sales, you must add your bank account and a valid
credit card to Seller Central. That is where Amazon will send your
payments. Your account must support Automated Clearing House
(ACH) transactions.

You can see how much and when Amazon pays you on the Payments
dashboard and Payments report.
3-5 business days

Bank account with Receive


positive balance your money

Amazon pays on the 1st and 16th day of the month

Orders must be delivered 7 days ago

Amazon fees and returned orders are deducted

Amazon seller payment process


● Positive account balance
You must have a positive or zero account balance to receive a payment.
Amazon Pay will automatically send your funds to your bank account on
the next scheduled settlement date. After Amazon sends it, it takes 3-5
business days for your money to arrive to your bank account.
7-day holding period
Orders must be delivered at least seven days ago. Amazon gives buyers
seven days to return or inspect their orders, so your payments will be
held until that period has passed.
Deductions
Payments are for orders that were successfully delivered. In case of
customer returns, chargebacks, and A-to-Z guarantee claims, Amazon
will deduct the cost from your payment. Amazon fees are deducted
from your payments as well.

Related: Amazon Seller Payment Schedule: Everything You Need to


Know

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