With most of the western world thoroughly shut down by COVID-19, from the beginning of 2020 to the time of this writing, ordinary individuals look towards the digital space to flourish and earn a living. It is said that, because of the pandemic, e-commerce revenue in 2020 boomed, bringing in a staggering $861.12 billion in sales, which is an additional $174.87 billion over the year-to-year sales typical of the e-commerce industry.
So, what does this increase mean for you? It means now is the perfect time to form an online business, such as an affiliate marketing website or by becoming an Amazon Seller through the Amazon Seller Central platform. You never know when another pandemic lockdown will occur, so why not begin today? As they say, just start!
Why Sell Through Amazon?
Why sell your products on Amazon? An excellent question, and one that many can answer in their unique way. But for the most part, if you want to earn a profit online, Amazon is the number one e-commerce marketplace by and large. In a year when most other businesses were filing for bankruptcy and hurting to bring in any income, Amazon reported a 70% increase in earnings for the first nine months in 2020. Their total was up $5.8 billion from 2019.
That puts their annual sales at a staggering $96.1 billion. But that isn’t the end of their growth period. In 2020, Amazon also reportedly increased its infrastructure by 50%, hiring over 250,000 new employees throughout the year. They now boast over one million employees worldwide.
It is vital to remain up-to-date with everything going on in your industry. You should certainly not consider this portion of your day to be work. Instead, dedicate 30-60 minutes each day – whether it be in the morning or the evening – to read your favorite blogs or a relatable book. You’ll quickly begin noticing the various trends and talking points of your industry, which will, in turn, bring about inspiration in your work.
How Much Can You Earn Selling on Amazon?
Everyone wants to know how much earning potential they have by selling on Amazon. After all, in this digital age, working online for yourself and from the comforts of home is priority number one for many.
You’ll be happy to know that, with an Amazon Seller Account, your earning potential is nearly limitless.
According to reports by Oberlo, over 25,000 sellers are earning over $1 million on Amazon. Plus, over 200,000 sellers are making over $100,000 on Amazon.
What could you do with an additional $100,000 per year? Buy a house? Pick out your dream car? Invest in the stock market and watch your profits increase? With $100,000 from a digital business, you have options that were once unavailable to you.
Why Sell on Amazon From Canada
You’re Canadian, but you want to take advantage of the more broad market in the United States through Amazon’s platform to earn that $100,000 annually. It makes total sense!
Did you know that, since 2017, e-commerce in Canada has steadily increased? Reports claim that nearly 80% of the entire Canadian population shops online these days. Now, that’s a staggering number on its own. But in America, that’s child’s play.
In the U.S., 70% of the population regularly shop online. Yes, seventy is less than eighty, but in the United States, 70% equates to over 263 million people. Half of those subscribe to Amazon Prime.
On top of the massive customer base, there are a few other crucial benefits of selling via Amazon.com, such as:
- Fast Approval — Amazon is in the business of making money, which means if you have the potential to make them more money, you’re in. They typically approve seller accounts within one week, meaning you can get a head start on your digital business sooner.
- Amazon FBA is Simple — FBA (Fulfilled by Amazon) is a godsend for digital business owners selling via Amazon. FBA ensures you can ship to both Canada and the USA easier, offers a better customer experience, and lightens your load overall.
- Unlimited Potential — The only limit to your digital business is your mindset. If you constantly tell yourself you cannot succeed or won’t earn a living, then you’re holding yourself back from a good thing. Instead, focus on putting back into yourself and your business. Invest! You can grow a digital business exponentially over the years.
How to Open an Amazon Seller Account
To open a Pro Account via Amazon Seller Central, you need a few things. But don’t worry because it’s not overly difficult to open an account.
- A bank account where Amazon can send you proceeds from each sale
- A business email address or Amazon customer account
- Chargeable credit card
- Government ID
- Tax information
- Phone number
- A utility bill
Regarding the need for a utility bill, Amazon requires proof of the business you intend to operate under. If you do not operate under a business name, a straightforward workaround is to register a cell phone plan using your company name, send Amazon that bill, then cancel the cell phone plan once your Pro Account is approved.
It’s important to note that, with an Amazon Seller Account, you must pay fees. If you choose the individual plan, which is fine for those just starting, expect to pay a fee of $0.99 for every item sold. If you opt for a professional plan, you’ll pay $39.99 per month no matter how many products you sell during that timeframe.
Of course, Amazon wants an additional cut, too. They’ll take a referral fee for every sale, which is a percentage of the transaction. You can learn more about their pricing plans and fees through the official pricing page.
Where to Find Products to Sell – Wholesalers Reign Supreme
While Amazon is undoubtedly the most prominent e-commerce website globally, it doesn’t make a ton of sense to buy in bulk from their store, then turn around and sell individual products back on the marketplace. In doing so, you likely won’t turn a profit.
Instead, most digital entrepreneurs who sell on Amazon tend to find their products elsewhere, such as Online Arbitrage or buying in bulk directly from the manufacturer.
Both methods work well, though most resellers tend to favor buying in bulk wholesale. Doing so, however, does cost more upfront. If you have the money to invest in your business, specifically for purchasing inventory, find a supplier for whatever product or niche you intend to fill. Most are happy to work with you should you buy enough products within their minimum requirements.
And that’s the critical thing with a wholesaler. Minimum purchases can eat into your bottom line if you don’t know what you’re doing beforehand.
That’s right, buying wholesale requires a little more research on your part. You don’t want to buy a product in bulk, then realize it won’t sell. You’re stuck with the supply, then. So, please do your research early, buy in increments of 20 or 50 to begin, then sell them fast on Amazon.
What is Online Arbitrage?
The other method to source products to sell is via online arbitrage. That’s a funny term with a significant meaning, especially in the world of digital e-commerce.
With online arbitrage, your source for any products is found online, usually through a website or other e-commerce app, like the Facebook shop. You can source deals online, paying a pittance for bulk products without any need to travel, then resell your goods on Amazon for a tidy sum.
The upside to online arbitrage is you can diversify easier. You don’t have to adhere to minimum requirements, which means buying as little or as much product as you want across a few different niches. For those digital entrepreneurs who intend to diversify their stock quickly, online arbitrage offers an opportunity to start-ups like yours.
A fantastic resource for online arbitrage is Source Mogul, which compiles over 20 million products every month to help you find low-cost items worth selling for higher prices.
Alternatively, you can use eBay to find the right products to propel your career.
How to Price Products on Amazon for Maximum Return
One of the big questions anyone entering the e-commerce world has concerns pricing products on Amazon for the best return. For the most part, the process involves trial and error, with a touch of research involved.
First and foremost, find your competition — someone who sells similar products to yours. What are they charging? Can you beat that price while still earning a living?
If you want to test the market, put up a product and adjust the price to see how many units sell and at what volume. If you do not receive your desired results, let’s say one hundred units sold, then consider lowering the price slightly.
People are more forgiving when they shop online than in stores regarding prices. Do not be afraid to experiment with your products!
A Checklist for Making Money on Amazon
Here’s a quick breakdown to earn your first dollar by selling on Amazon:
- Perform thorough research to find cheap products to purchase that sell quickly and for more money on Amazon.
- If an item is already sold on Amazon by another seller, research consumer interest and competition to find a viable niche to fill with your expertise.
- Identify from start to finish the process of buying and shipping an Amazon order to improve efficiency wherever possible.
- Discover unique software designed to simplify the buying, selling, and sourcing processes on Amazon.
- Whenever possible, find ways to streamline or outsource work for the lowest price without sacrificing reliability or quality.
- Document everything — expenses, sales, essential information, and more.
- Submit product data to Amazon via their Seller Central dashboard promptly to expedite your listing.
Wrapping Up Your eCommerce Journey
Did you know there is one last piece of the puzzle that can help you succeed on Amazon where other sellers falter? It’s product photography. Believe it or not, the pictures of your products on every listing matter — sometimes more than the price.
If you include low-quality photographs that don’t do your product justice, chances are high you’ll lose a sale. Those amateur photos will push your prospective buyer to your competition. Do not risk losing a deal because you skimped on product photography.
Here at Roarshack Studios, we offer Amazon product photography services to help start-up operations like yours succeed where others flop! We’ve taken high-quality photographs for hundreds of Amazon listings, and we can certainly help your e-commerce business shine!