How to Sell on Amazon in 2022. Sell your own private label products on Amazon

How to Sell on Amazon in 2022. Sell your own private label products on Amazon

The best way to make money on Amazon in 2022 is still through private label sales using Amazon’s Fulfillment by Amazon (FBA) network. Around 67% of all Amazon sellers run their business using the private label method.

Private label is a process of manufacturing a pre-existing item (preferably, with product improvements), putting your branding and logos on it, and selling it to consumers. Sometimes it is referred to as white labeling or brand creation. (The process has been around for years and is common in countless retail stores; Target’s Mainstays brand and Walmart’s Great Value are two examples of private label brands.)

Thanks to FBA, Amazon is able to deliver your products (typically in two days or fewer — what you likely know as Amazon Prime ). This is how e-commerce business owners —l ike you and me — can list goods on Amazon and make money from the sales.

Amazon makes private labeling even easier thanks to a number of advantages:

1. First, you can use a tool like Jungle Scout — the all-in-one platform for selling on Amazon — to estimate the sales your product will make once it’s on Amazon.
2. Next, it’s easy to source and manufacture your products with the help of platforms like Alibaba or Jungle Scout’s Supplier Database .
3. Finally, after you’ve created your product, you can sell it on Amazon using FBA. You don’t even have to ship your own orders!

How much money can I make selling private label products on Amazon?

Approximately $625 to $1,875 per month per product.

Over half (56%) of private-label sellers earn $5,000 or more in monthly sales, and nearly two-thirds (59%) have profit margins over 16%. Among private-label sellers who have more than a year of selling experience, 20% have earned over $10,000 in lifetime profits.

Note: To learn more about how much Amazon private label sellers spent to get up and running, how long it took them to become profitable, and what categories they’re selling in, check out Jungle Scout’s The State of the Amazon Seller Report .

Where can I learn more about selling private label products on Amazon?

If you want to learn more about how to make money on Amazon with private label products, Jungle Scout offers a free course to help you get started: How to Sell on Amazon.

Buying products to Sell on Amazon. Options for sourcing products to Sell on Amazon

How will you get items to sell on Amazon if you don’t create a product of your own? If you want to sell items manufactured by another entity, you need to make sure you are doing so ethically. Amazon has no qualms about blocking Amazon Seller Accounts that violate their policies. That doesn’t mean you can’t sell the products of others, with some exceptions designed to protect Amazon’s own sales volume.

Here are the most common ways to source products for sale on Amazon:

Online and retail arbitrage vs wholesalers

Most people have heard of wholesalers, and upon reading a description of retail arbitrage may mistakenly believe that the two are the same. There is actually a very important difference between the two. Wholesale means that you are buying directly from the manufacturer, while retail arbitrage refers to buying the products from anotherbrick-and-mortaror online retailer.

brick-and-mortar.The cheaper you can buy the items, the bigger your profit margin, and the more competitive you can be in your pricing.

Both retail arbitrage and wholesale sources come with no worry about rights infringements, as the items are already labeled for resale. Going through a wholesaler gives you the biggest profit margins because you are getting the items at cost. Even if you sell them for a higher amount, you can undercut the competition and still make money.

On the other hand, the advantage of using retail arbitrage is that you don’t have to buy large quantities to resell items. Since you’re getting your products at a deeply discounted price from another retailer, you can buy whatever they have in stock, or whatever you can afford at the time. This makes it the perfect way to scale up an ecommerce business using Amazon.

Private label products with your branding

Private label products are items that are not sold by the manufacturer. These items are sold to individual brands who then remarket them as their own products. Some of the most common private label products are:

• Water bottles
• Party games
• Gadgets and electronics
• Phone accessories
• Clothing

Make your own personalized gifts to sell on Amazon

Making your own personalized gifts or novelties to sell on Amazon is similar to both retail arbitrage and private label. Most sellers who personalize items purchase plaint-shirts,ball caps, coffee mugs, and other items through typical retail stores and ecommerce, just as in retail arbitrage. But instead of just selling them as is, they take those items and personalize them.

The thing to remember here is that you cannot personalize items with trademarked or licensed artwork or branding. For example, Amazon will not allow you to sell a coffee mug with Taz from Looney Toons printed on it, even if you rearranged it and added your own logos or catchphrases. Make sure that you stay within Amazon’s policies for rebranded or personalized items.

How to find products to Sell on Amazon 2022. How to Sell digital content on Amazon

You may know exactly what you want to write, produce, or design… or you may simply know you want to use your knowledge and creativity to craft something, but you don’t know what might sell.

No matter what your method of content creation is, you will want to create content that people actually care about — and will pay for.

For some, this can turn into an endless quest for validation. Fortunately, there are a few hacks you can use to figure out what sort of content people want before you even create it.

1. Research opportunities or validate ideas

Pablo Picasso once said that “great artists don’t borrow. They steal.” While I won’t advocate for plagiarism, I will suggest that you look at what is already working and try to emulate — and improve upon — those concepts.

But how do you know what’s working currently, or how do you validate an idea you have? The easiest way to find that out is to check Amazon itself.

• Do a search on Amazon for the subject or type of content you want to create.
• Use a tool like Jungle Scout’s Chrome extension to see how well each of the topics on that page are performing.

• Check out the top performing listings. Read the reviews for that listing to learn how the product could be improved.
• Craft similar content with the requested improvements.

2. Create your content — and a feedback loop

Once you know where to start with content creation, start creating. Don’t worry about making it perfect just yet.

• Create the most perfect version of your product, but one that may not have all the bells-and-whistles that you want. This will be called your M.V.P. or minimum viable product.
• Make sure that you get as many people as you can to read/listen/view the M.V.P.
• Start collecting feedback from those who experience your M.V.P. Look for common threads in their insights.
• Make iterations to your next piece of content based on the feedback you received.
• Repeat the process.

The faster you perfect your feedback loop, the faster you will create an audience that’s willing to spend money on you every month.

3. List your products on Amazon

If this is your first foray into the world of Amazon selling, then before you can actually start selling on the platform you’ll need to choose which seller plan is right for you: individual or professional . Or, if you plan to sell digital books, sign up for a KDP account .

Once you’ve chosen your seller plan, these are the next steps you need to take to get up and running:

• Submit : Once your content is designed/written/produced, submit it to the corresponding program for approval.

Amazon account for sale. Is it possible to buy an Amazon seller account or business?

It is not a well-known fact but you can definitely find an Amazon FBA business for sale or sell yours if you wish. In recent years, Amazon has approved more and more sales of seller accounts. This statement is found in Amazon’s terms:

“Seller accounts generally are not transferable. Seller accounts provide access to the tools and resources that sellers use to list their products and manage their orders. Seller accounts also include account activity history and buyer feedback. Every seller on Amazon must have a seller account and an agreement with Amazon that establishes the terms under which the seller lists and sells their products.

If the ownership of a business changes for any reason, the new owner needs to establish a new seller account.”

Take note of the third word in the first sentence, “generally”, which implies that the transfer of accounts is possible although it is not usually promoted by Amazon. This trend of selling and buying whole Amazon accounts is still reasonably uncommon so expect to encounter a lot naysayers.

Amazon as a business typically approves the sale and transfer of Amazon seller accounts because it will help Amazon generate more income by allowing the Amazon store to continue doing business. Sure, it may be under a new owner but better a new owner than no owner at all.

The seller would need to contact seller support and get an approval letter from them. This will provide the seller with the necessary information they need to successfully change the account information of the account being sold.

Buying an Amazon seller account is usually as simple as updating the information on the seller central account. There is certain information that you would need to change on the seller account to complete the transfer of ownership.

Once the Amazon account has been sold, the buyer can just update this information accordingly. If the buyer requests the seller to enter the new data for them, then the seller can oblige and do it for them as well.

Just provide the buyer with the correct login information for them to successfully access the account and update the account information themselves.

Charge Method (Credit Card)

The charging method needs to be updated so that Amazon will have the correct credit information to continue charging its fees to.

Deposit Method (Bank account)

The bank account needs to be updated so that once the transfer of the seller account is complete, the sales generated moving forward would be deposited to the new owner’s bank account.

TAX information

The new owner’s tax information such as their SSN or EIN needs to be entered to complete the change of ownership. Updating the tax information is essential so that both the new and previous owner can avoid any tax headaches.

Account Name

The name of the new owner needs to be entered and saved for the system to update, which will then be reflected in Amazon databases.

The final piece of information that needs to be updated is the email address that is associated with the seller account. All future communications from Amazon about any activity on Amazon will be sent to the new email address on file.

How to Sell on Amazon From alibaba. Is It Safe to Buy From Alibaba?

With the proper due diligence, you can ensure a secure e-commerce experience with Alibaba. You can choose from a significant number of reputable manufacturers and suppliers who have been in the industry for years. Alibaba has established a positive reputation and credibility for itself as an established global marketplace.

When sourcing products from Alibaba, you can help maintain security by only trading with gold suppliers , the company’s premium suppliers. These suppliers pay Alibaba to appear higher up in the search results. Despite deals or factory certifications that non-gold suppliers may have, buying only from gold suppliers will help you avoid scams and bad suppliers. To find out if they are reliable, ask them how many products they have supplied, if they can customize the product to your specifications, if they have a minimum order quantity, and what their lead time for production is.

Next, with Alibaba’s trade assurance program, your orders are protected. It mitigates risk by guaranteeing money back if a supplier fails to meet the terms of your order contract, such as with delivery delays, quality and quantity discrepancies, or other processing issues. If you have a problem with a supplier, you can submit a claim to Alibaba. The company will then review it and if they agree that the factory has in fact made a mistake, you can get your money back. Keep in mind that any step in the process that can cause a potential roadblock (quality control, lead times, etc.) need to be documented in the sales agreement.

Additionally, when buying on Alibaba to sell on Amazon FBA , you should avoid branded products. Alibaba’s marketplace is not a legitimate source for branded products and is instead meant for generic goods. If something is on Alibaba as a branded item, it is likely that it belongs to a national brand. Selling it would be illegal, as you would not be an authorized seller.

Amazon fba 2022. How does Fulfillment by Amazon (FBA) work?

Amazon fulfillment services include picking, packing, delivering to clients, and handling customer inquiries and returns. As an Amazon FBA seller, you can concentrate on marketing and selling your products and providing excellent customer service on inquiries not related to returns.

Let's look at how you can become an Amazon FBA business below.

1. Sign up for FBA in your seller account

If you already have a seller account in Amazon, you simply need to activate the FBA service. If you're new to selling on Amazon, you need to first create your seller account.

Occasionally, you can find discounts and special offers when launching on FBA such as a $100 discount on your first inbound shipment in the Amazon FBA program called New Selection currently running.

In Amazon Seller Central, you can upgrade your account to FBA and start changing product listings to Amazon fulfillment. Image source: Author

2. Create FBA product listings (or change inventory to FBA)

With FBA activated, you can now upload your product listings. If they're already listed, switch them to FBA. This will generate labels with barcodes for each product under FBA.

3. Print labels and stick them on your goods

You need to print the labels and stick them on your individual packages before shipping the inventory to Amazon.

4. Create an inbound shipment

You can now package all your products at once, and send them via an inbound shipment to an Amazon fulfillment center. This process introduces an entirely new way of managing your inventory .

5. Upon stock entry, you are active as FBA

Once your goods are scanned upon arrival in the warehouse, they go live on the marketplace. When customers view your products on the platform, it will appear that Amazon ships for you.

Amazon arbitrage. What is Online Arbitrage?

To get a better understanding of what online arbitrage is, let’s look at its predecessor, which is retail arbitrage.

Retail arbitrage is a relatively simple concept that involves purchasing a product from a retail outlet at a relatively low price then “flipping” it or selling it to a new marketplace for a profit. This can be a viable business model for entrepreneurs because:

✅ There’s a lower cost of entry.

✅ It doesn’t require suppliers or manufacturers.

✅ There are no production lead time concerns.

With the rise of e-commerce, the practice of arbitrage has transitioned online. Retail arbitrage now entails finding relatively low-priced items from brick-and-mortar establishments and reselling them for a profit online.

In many cases, retail and online arbitrage share some similarities, particularly when it comes to basic business rules and processes. Their greatest difference lies in their scale and execution. In online arbitrage, you’ll:

Look for a product that you can purchase for a lower price than how much it’s offered for on Amazon or on other online marketplaces

Purchase it from a supplier and have it delivered to an FBA warehouse—you can sign up for the Amazon FBA program , which doesn’t require any special license

Add the product to your listing and mark up its price to get a healthy profit margin.

Amazon FBA and How It Can Help You Grow

When it comes to online arbitrage, Amazon FBA is an invaluable asset. Fulfillment by Amazon (FBA) saves you time while helping you grow your business. With it, you’d be free to focus on other aspects of your business, as Amazon would take care of storing, packing, and shipping your orders. Additionally, Amazon FBA also handles customer service, as well as returns and exchanges of your products.

Amazon FBA also enables first-time users to scale their business through free sponsored ads (up to $200), promotional clicks, and discounts on their shipments to Amazon’s fulfillment centers. New users are also eligible for free monthly storage (90 days) and removals (180 days).

Amazon seller account. How to Create an Amazon Seller Account in 2022

In 2022, started their shopping searches on Amazon, with low product prices, free or low-cost shipping, and convenience as the reasons they chose to shop online instead of in-store. More than half of consumers shopped on Amazon weekly or more , and towards the end of the year, 67% of consumers chose to shop on Amazon for holiday gifts.

These trends indicate that the year ahead holds immense potential for ecommerce entrepreneurs in 2022 and into 2023. However, if you want to take advantage of the enormous opportunity Amazon represents, you must first go through the Amazon seller registration process.

So, to make sure your account is verified (giving you the chance to build a successful Amazon business), we’ll walk you through the updated process.

This is what we’ll cover:

How to start an Amazon business

What’s great about Amazon is that there isn’t just one way to start an Amazon business. From the business model you choose to the products you decide to sell, there are many ways to succeed on the platform.

However, the steps required to get up and running on Amazon remain the same, regardless of the type of business model and the product you choose.

• Private Label : Private label is the process of a retailer rebranding/renaming a product that is already being manufactured on their own brand or label.
• Wholesale : Wholesaling is the practice of purchasing low-cost or discounted goods in bulk in order to sell as individual units in a retail marketplace.
• Online and/or Retail Arbitrage : Arbitrage is a method of finding low-cost or discount goods in brick-and-mortar retail stores (or on e-commerce sites) in order to resell them online.
• Dropshipping : Dropshipping is a business model where an Amazon seller does not keep their own product inventory, but instead transfers their customers’ orders directly to the manufacturer or supplier.

2. After you’ve landed on a business model, it’s time to decide which fulfillment method you’ll use

There are pros and cons for both methods, so make sure you to determine which one will work best for your business. You don’t have to choose one or the other, though. You can fulfill orders with both FBM and FBA.

3. Next, consider the product(s) you’re going to sell

If you have a product, you may be ready to go, but you should still follow this step to validate that your product will have sufficient demand on Amazon. To help you find products to sell that are , make sure you use a tool like .

4. Once you’ve found a product, apply to become an Amazon seller

More details on how to complete the Amazon seller registration process are in the next section.

5. Then, when Amazon has verified your information and your application has been approved, start sourcing your product(s)

6. Finally, create your product listing

And once you create your listing , you can grow your Amazon sales from there!

How to create a seller account on Amazon

Once you’ve figured out what you plan on selling on Amazon, you’ll need to go through the Amazon seller registration process, which is really quite simple.

2. Click on “Learn more”

Then go to the “Pricing” tab and click on “Compare selling plans.” This will bring you to a comparison page to see the differences between an seller account.

Note: If you click on the orange ‘Sign up’ button, you’ll immediately be taken to the registration page for a professional seller. The ‘See pricing’ link, on the other hand, shows you the difference between the individual and professional accounts, and allows you to choose which registration you want.

3. Choose between an individual or professional seller account

When it comes to Amazon’s seller plans, you have two options: professional and individual.

If you’re going to sell more than 40 products per month, then signing up as a ‘professional’ is your best bet. Even if you’re selling as a hobby and don’t consider yourself to be a professional, this plan will help you save money.

But, if you’re planning to sell on a smaller scale (ie. fewer than 40 units per month), select the individual plan.

Though keep in mind that if you choose the individual plan, your products will not be eligible for the and you won’t have the ability to your products on Amazon.

4. Enter your email and select ‘Create a New Account’

Once you’ve chosen the seller plan that is right for you, the following window will appear where you’ll be asked to enter your email address and a password (of your choosing) for your seller account.

When you’re done, click the ‘Next’ button.