The well-known phrase “Practice makes perfect” can be confidently applied to selling on Amazon: the most nerve-wracking part is the creation and verification of a seller account on Amazon. Therefore, many entrepreneurs, influenced by daunting stories, delay or completely refrain from selling on Amazon. They often dismiss the idea of selling on Amazon due to the abundance of requirements and rules. That’s why it is crucial to familiarize yourself in advance with how to start selling on Amazon successfully and what unexpected challenges you may encounter.
“Checkmate” for dishonest businesses
Amazon is known for being particularly strict with sellers and often complicates the entire trading process. However, in reality, this is a significant advantage for honest businesses.
Every process of selling on the Amazon platform requires verification, and it may need to be repeated at various stages of business development. Honest businesses that diligently manage their documentation, sell their own manufactured products, or have official authorization to sell products from other manufacturers can have peace of mind. On the other hand, sellers engaged in unauthorized reselling or fraudulent practices can expect troubles sooner or later.
Complaints from official sellers, limited trading and advertising opportunities, or even the complete suspension of a seller’s account are some of the consequences that you may face if you belong to the latter group.
However, whether you operate honestly or not, Amazon determines based on the documents you provide and your actions if they comply with Amazon’s rules. Unfortunately, the biggest challenge is that you can be the most honest seller at Amazon but fail to prove it. That’s why many companies rely on the services of Amazon specialists or agencies who have excellent knowledge of the rules and requirements and help prepare for the “war”.
How to sell on Amazon?
Just like before any stage of business expansion, you should plan your strategy. Determine which markets you will start with and choose your selling model (whether you will ship products to customers yourself from your company’s warehouse or store products in Amazon’s warehouses and entrust shipping to Amazon).
Amazon offers two selling plans: you can pay per item sold or choose a fixed monthly fee regardless of the number of units sold. Currently (as of May 2023), the fee is 0.99 EUR per unit or 39 EUR per month. The choice of plan depends not only on the projected sales volume but also on other aspects. The Individual plan, where you pay per unit, does not allow you to advertise, sell in restricted categories, or provide other tools needed by sellers, such as reports, etc. Therefore, it is always recommended for businesses to choose a plan specifically for professionals, where you pay a monthly fee to Amazon.
The first and most important step is to create a seller account on Amazon. It’s important to note that if you have previously had an Amazon Seller Central account or have unsuccessfully attempted to create one and now want to start fresh, you must create it under a different company and personal name, use a different bank account, credit card, address, phone number, and email address. Additionally, you should not use the same IP address that was associated with the previously used information. Therefore, if your business information has not changed, it’s always better to revive your old seller account on Amazon.
The importance of a business representative
It is important to know that even though the Amazon Seller Central account is created on behalf of the company, it is still necessary to provide the information of an individual who stand behind the entire Amazon business wheel and act as the company’s representative. It is important to know this because it facilitates certain document submission requirements.
For example, during the registration process, it will be necessary to provide a credit card, which may not necessarily be in the name of the company but can be in the name of the representative. Later on, the card can be changed to a debit card, but the initial payment to Amazon must be made with a credit card.
Selling on the Amazon platform opens up new opportunities for sellers, but at the same time, it comes with additional strict requirements and rules. Often, companies are intimidated by these requirements and either delay or completely refrain from selling on Amazon. If you find yourself in this situation, the best solution for you is to seek assistance from specialists who are well-versed in the intricacies of Amazon and the requirements for seller account on Amazon registration. Therefore, we invite you to have a conversation with DIGITAL FREAKS about your expectations and starting your Amazon business.