Whether you’ve found a great reselling opportunity, you’re looking for a profitable side hustle, or you make an innovative product, becoming an Amazon seller can be a great business opportunity. We want your Amazon business and experience to be successful, but don’t go into it blindly. These are a few important things you should consider before selling on Amazon:
- Do extensive research on the items you want to sell
It is crucial to choose a suitable product that is within your buying power. Some products may not have a market on Amazon, while others will have a lot of competition. Once you find a product with good demand, make sure to do extensive product research on it. Take a close look at how your competitors are listing their products; read the reviews and Q&A’s on their page.
- Go in with a plan
If you jump in without a plan, you could wind up with a pile of inventory that you can’t sell. Be realistic and start small while you are still learning the ins and outs of Amazon’s marketplace. You will also need to choose a selling plan, either Professional or Individual, and decide whether you want to go the route of Fulfillment by Amazon (FBA) or fulfillment by seller.
- Provide accurate product descriptions and pictures
A captivating product description and quality professional-looking photos will make all the difference. This doesn’t mean throwing it all together in 5 minutes. Take time to make sure your product description accurately depicts what the customer will receive when they open their package.
- Understanding Amazon’s Buy Box
The Buy Box can be found at the top right section of a product details page and it is where customers can directly add items to their shopping cart. In order to win the Buy Box, you must meet several performance-based requirements. If multiple sellers meet these requirements, Amazon will compare other details like pricing and shipping time. Not every seller will be gifted with the Buy Box, so make sure to do your research on best practices to maintain the highest level of quality and satisfaction.
- Amazon can suspend your business account unexpectedly
Selling on Amazon also means that Amazon has the power to suspend your account and have your business offline overnight. This can happen from negative feedback on product quality, products that don’t match the listing, or poor seller performance. The best way to prevent this from happening is to closely monitor your listings and your feedback.
- Consider your insurance options early on
While Amazon doesn’t require you to have insurance when you first open your account, if you are selling more than $10,000/month for 3 consecutive months, you will need to hold insurance. Selling products on Amazon is not all that different than selling in a brick and mortar store. You face many of the same exposures that can leave your business at risk of losing hundreds of thousands of dollars. Insurance will protect you and prevent you from paying out of pocket for legal fees in the event your business is involved in a lawsuit.
If you are an Amazon seller based in Canada, contact one of the expert brokers at Fuse Insurance to obtain customized Amazon Seller Insurance for your business today. For more information visit our Amazon Seller Insurance page.
Fuse Insurance Ltd. is the evolution of the commercial insurance brokerage, and the first of its kind in Western Canada. Backed by policies from a selection of A-rated insurers, Fuse Insurance can provide coverage for businesses large and small from almost any industry. For further information or to get an online quote now, click here or call us at 1-866-387-FUSE (3873) for more details.