Amazon is a name that doesn’t any introduction. Being the world’s largest online retailer, it is a huge platform for people to sell their products. With its huge customer base, it gives sellers a huge opportunity to attract new customers and widen their reach. There are a lot of great opportunities for small and large scale products manufacturers as well as e-commerce sellers. It is an exciting place for online sellers to broaden their customer bases and boost their sales. So, before you start your journey, we will discuss few necessary things which every Amazon seller should know before selling on Amazon. This way, you will be able to utilize the platform in the best possible manner and gear up for success.
1. What is Trademark?
A trademark is a sign that you can use to distinguish your business’ goods or services from those of other traders.
A trademark can be represented graphically in the form of your company’s brand name, logo or a slogan.
Through a registered trade mark, you can protect your brand (or “mark”) by restricting other people from using your brand name or logo.
Every country has their online Trade Marks Registry portals. For more details, you can check the website.
2. A Transaction Account
A transaction account is a deposit account which is held at a bank or any other financial institution. The account owner has the access to the account “on demand” and can be used for frequent and immediate access by the account owner or even to others when the account owner directs. People into business usually prefer to use this but it can be used for personal purpose as well. And not to forget even by people who are into e-commerce related business. Different countries have different names for this account.
In Britain, it is known as current account. If held by a bank it becomes chequing account or checking account, share draft account when it is held by a credit union in North America. Whereas in India, Hong Kong, and various other countries they are commonly called current or cheque accounts. Since the money is available on demand they are also sometimes referred to as a demand account or demand deposit account. Just like your savings account, this is also a deposit account. The only difference being that there is no limit on the number of times or the amount you can withdraw from or deposit into this account.
Another important factor is that there is no restriction on the amount withdrawn from this account, only thing obligatory being the required balance in the account.
These deposits are the most liquid deposits and are used to facilitate heavy transactions like bulk purchases and salary payments.
3. VAT or GST
Value added tax or VAT is actually an indirect tax, which is imposed on goods and services at every stage of production. It starts from raw materials till the stage of the creation of the final product. It is widely applied in the European countries but now a number of countries across the globe have adopted this tax system too.
There is a lot of confusion regarding Goods and Services Tax i.e. GST and VAT. Both are the same thing except for the fact that GST taxes both goods and services at the same rates. With GST coming to the scene, it would eliminate many disputes which arise due to taxing goods and services separately. It will also bring in uniformity in pricing.
4. Taxpayer Identification Number(TIN)
A tax or taxpayer identification number (TIN) is a number which is issued to individuals and organizations to track tax obligations and payments they make to the Internal Revenue Service (IRS). It can be assigned by the Social Security Administration for individuals, or by the IRS for businesses and other organizations. TIN is used for identification, reporting, and record keeping purposes. The IRS needs the TIN numbers for many tax-related documents, such as tax returns, reports and statements.
5. Product Listing Limitations
There are certain per week listing limitations set by Amazon for new sellers which are applicable in few countries such as India. For new sellers, it is 2000 product listings per week. Hence, one should first check that if there are any such criteria for new sellers related to listing. If yes, take your time and think about it before investing a huge amount of money on a big stock.
6. What is Buy Box Button?
As a seller at Amazon, there’s definitely nothing more important to you than the Amazon Buy Box. Buy box button is a box which you can find at the top right section on a product page which allows customers to directly add items to their shopping carts. This enables buyers to make a direct purchase. As many sellers on Amazon sell the same product, they have to compete to win the “Buy Box” for a certain product. It simply means that you were the chosen one for the Buy Box placement. When you win it, customers get the access to a button which directly adds your product to their carts. This is a huge advantage over competing sellers. It is an extra feature by Amazon for the reliable sellers where they get a chance to beat their competitors and add extra sale in their pocket.
7. What is Amazon FBA?
FBA or Fulfillment by Amazon is a program through which one sends the merchandise to one of the many Amazon fulfillment centers to be stocked. Later the customers buy products from you, and Amazon ships them. With this sort of arrangement, you can easily get rid of these aspects and completely focus on other areas of running your business successfully. It helps the sellers in handling many facets of shipping and customer service which lessens the burden. Other benefits of this program include making your products reach to the Amazon prime members along with getting an edge towards winning the Buy Box, even if your products are of higher range.
8. Are there any policies I should look over before I start selling on Amazon?
Given below are some policies you may want to review before selling on Amazon:
- Product detail page rules
- Shipping policies
- Policies and agreements
- Selling Policies
- Prohibited seller activities and actions
9. What is Amazon PPC Ads or Sponsored Product Ads?
It is a paid program by Amazon where you can run your ads on Amazon platform and attract people/audience who could be in your product. In other words, it is an attempt to reach the target group for your product.
Start with a small budget for Amazon sponsored ads. This will help you to make your products more visible to the customers and indirectly can also act as an aid improving your products rankings.
10. Why can’t I use certain shipping methods at first?
According to the policy by Amazon, it doesn’t allow certain shipping methods to the new sellers right away like the two-day shipping. One can get these benefits or earn it by their consistent efforts to establish a history of reliable shipping at slower shipping speeds.
11. How can I increase the number of feedback on seller account and reviews on a product?
There are numerous ways of through which one can get reviews and feedbacks. It’s is entirely up to you. It is always better to get verified reviews and genuine feedbacks. These are steps can follow after order confirmation from the customer:
- You can call the customer and suggest them its use.
- Share with them your return policies. In case of any doubt, they can return it back.
- You can also discuss regarding the shipping of the product. If they have received the product late then you can assure them that you are sorry for the inconvenience and your team is working on making the delivery process easier and quicker.
- If the customer understands your point and seems satisfied and happy, you can ask them to give you 5 star rating and a genuine feedback.
- Do cross check with the customer to confirm if they know the procedure to leave a feedback and review. Mostly, customers are unaware regarding feedbacks and ratings.
Lastly, the best advice from my side would be that you should have a clear idea regarding your business and what you are getting into. Amazon is a great opportunity for sellers which should be utilized in the best possible way rather than wasting it. Since you will be putting in so much of effort and money, you should definitely do a little homework before you start. I hope this article helps you understand the nitty gritty behind selling your product on Amazon.
Did the points in the article help you ease your confusion regarding how to sell on Amazon? Tell us your experience.
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