The COVID-19 pandemic has brought many larger and smaller companies a significant drop or increase in sales, and more than ever in the last two years, the importance of web sales has been recognized. As expected, the pandemic affected the stronger development of e-commerce, and all companies that did not have an active presence on the web, in most cases were doomed. People who never bought online during this period must have done it at least once, or someone did it for them. Therefore, we can all agree on how much this “one click” that separated us from the desired product has actually made our lives easier.

Amazon history

Even before the pandemic, Amazon was considered one of the most successful companies, and today its popularity has risen even more, and we can undoubtedly say that it is one of
the most powerful technology companies in the world. It is one of the five largest in the us information technology industry, along with Apple, Google, Microsoft, and Facebook.

It was founded by Jeff Besos, who was proclaimed the richest man in the world for the fourth consecutive year, so we can safely say that Amazon is doing its job as it belongs.
It started off as an online book market, but it soon spread to various aspects of sales such as clothing, jewellery, furniture, electronics, software, video games, in short anyone could find something for themselves – and that is exactly his specificity.

Amazon CEO Jeff Bezos

Source: https://www.inc.com/marla-tabaka/jeff-bezos-says-these-4-principles-are-key-to-amazons-success-they-can-work-for-you-too.html

Is it profitable to sell on Amazon?

According to the latest statistics, there are currently 6.2 million resellers on Amazon, of which 1.5 million are active. We can say with certainty that the competition is big. Also, it should be noted that Amazon has not yet come to life in Croatia because many products cannot be delivered to Croatia and that is why it is not easy to launch something of your own on such a large and competitive market.

Before going on sale on Amazon, it is extremely important not to rush, but to prepare well, invest a lot of effort, but also money to place the product.

It is also important to have some knowledge of how Amazon works, and to have a good business plan. We need to do market research and see who our competition is and how much there is. Ask yourself what makes you stand out in a multitude of similar providers?

Once you have studied and elaborated the above items, it is the turn of the product itself. If you know what you are going to launch on the market, make sure that the product is of good quality. Without good quality, there are no good reviews, and reviews on Amazon are very important.

Customer satisfaction comes first

The focus is exclusively on customer satisfaction, and various parameters that affect this are monitored, and if you do not satisfy them, you could be thrown off the platform.

In addition to product quality, the quality of product photos is also important. Without good photos, you just won’t act professional. Translate product descriptions into multiple languages ​​so that anyone interested can clearly understand the functionality, purpose, and use value of what you offer.

Also, as in any successful business, good marketing can help you rank high on the search engine, so take care of the product presentation itself, the target group, keywords, advertising, etc. If you are not sure who could buy your product, or which is your target group, you can hire an Amazon pro advisor to help you optimize your trade.

It is important to note that Amazon has a great advantage when advertising products over Instagram and Facebook because users came targeted, solely for the sake of buying. Advertising thus further increases the possibility of sales.

1. Sales plan

Once you’ve made the decision to sell on Amazon, it’s time to create an account. Before registering, you must choose which sales plan you want (individual or professional, but you can consider them standard and premium).

• The individual plan is used by those who sell less than 40 items per month, if you do not need advanced sales tools or programs, and if you are still deciding what to sell.
• The professional plan is for those who sell more than 40 items per month, want access to the API (application programming interface) and multiple sales reports, and want to sell with programs like Launchpad or Handmade.

The big plus is that you can change your sales plans, so don’t worry if you think you made the wrong choice in the beginning.

How much does the subscription fee cost?

There are several different types of sales fees you can pay, depending on your sales plan and the types of products you sell.

For a professional sales plan, there is a fixed fee of $39.99 per month with no fee per item, and for an individual sales plan, a fee of $0.99 is charged for each item sold.

Selling fees

These fees are charged per item sold and include referral fees (which are a percentage of the selling price and vary depending on the product category) and variable closing fees (which apply only to media categories).

Shipping fee

When you fill orders yourself, Amazon shipping prices apply. These delivery prices are charged based on the product category and delivery service chosen by the customer.

2.  Fulfillment plan

After selecting the sales plan, the fulfillment plan is selected.

The first plan is called FBA (Amazon Filling), the goods are kept in Amazon’s warehouse, and the seller is assisted with warehousing, packaging, logistics and delivery. In fact, the salesperson only cares about selling the product and connecting with customers.

The second plan is FBM (Merchant Fulfillment) where the seller takes care of the packaging, delivery, logistics, returns, etc.

If you are interested in detailed steps and pricing plans, click here. We hope that we have managed to bring you closer to the whole concept of Amazon sales, and if you decide to take that step, we keep our fingers crossed.

Sources:

• https://sell.amazon.com/beginners-guide
• https://amzscout.net/blog/amazon-statistics/#NumberofAmazonUsers
• https://www.marketplacepulse.com/stats/amazon
• https://www.inc.com/jason-aten/this-statistic-must-drive-jeff-bezos-crazy-most-people-would-be-thrilled.html
• https://www.netokracija.com/hrvatski-brendovi-proizvodi-amazon-kracun-futura-ddb-169815
• https://worldscholarshipforum.com/hr/kako-mogu-postati-prodava%C4%8D-amazona/#is-it-profitable-to-sell-on-amazon
• https://fortune.com/2021/10/18/amazon-massive-growth-covid-pandemic-8-charts/
• https://eu.usatoday.com/story/money/2020/12/01/american-billionaires-that-got-richer-during-covid/43205617/