How to Become an Amazon Third-Party Seller – Beginner Guide

Are you ready to unlock the potential of becoming an Amazon third-party seller? The digital marketplace giant offers a golden opportunity for entrepreneurs and businesses to tap into its massive customer base and extensive product selection.

If you’re intrigued by the idea of boosting your income through Amazon, let’s dive into the exciting world of third-party selling and uncover the essential steps to embark on this profitable journey.

What is an Amazon Third-Party Seller?

Become an Amazon Third-Party Deller

A third-party seller on Amazon is essentially a business or individual that sells items on the Amazon marketplace. By creating an Amazon seller account and offering their own branded products on the Amazon e-commerce platform, individuals can become third-party sellers.

As a third-party seller, one has the flexibility to sell both new and used products, allowing for the potential to generate a substantial profit through Amazon. This is made possible by leveraging Amazon’s vast customer base and diverse range of products.

Commonly referred to as “3Ps,” Amazon third-party sellers are also known as third-party retailers, third-party resellers, or simply Amazon sellers.

For those seeking to earn money by selling products on Amazon, becoming a third-party seller presents an exceptional opportunity. With Amazon’s extensive customer base and wide selection of products, their third-party marketplace provides a favorable platform for lifestyle entrepreneurs to monetize their merchandise.

The Benefits of Becoming a Third-Party Seller on Amazon?

Become an Amazon Third-Party Deller

Becoming a Third Party Seller on Amazon can prove to be a wise choice if you aspire to achieve your entrepreneurial aspirations.

Offering your distinctive products on one of the world’s most renowned online marketplaces not only grants you access to millions of potential customers but also presents numerous advantages associated with joining the community of third-party sellers on Amazon.

One of the notable benefits is the relatively low start-up costs involved. Compared to establishing a website and an online store, commencing as a third-party seller on Amazon requires minimal upfront investments.

Moreover, by listing your products through Amazon, you can garner increased exposure for your business. With millions of individuals visiting Amazon each month, your products will receive greater visibility. Additionally, being affiliated with Amazon lends credibility to your business, as the site’s reputation speaks for itself.

Another advantage of becoming a third-party seller on Amazon is the access to customer reviews and feedback. This valuable information enables you to enhance the quality of your products and services over time.

Become an Amazon Third-Party Deller

Furthermore, as an Amazon seller, you can benefit from the peace of mind provided by Amazon’s Payment Protection Plan. This security policy ensures the safeguarding of your payments, instilling confidence in the protection of your business profits and customer data.

Setting up as a third-party seller has been made effortless with Amazon’s user-friendly tools. By simply creating a seller account, listing your product, and initiating sales, you can establish your presence on the platform.

How to Become a Third-Party Seller on Amazon

To become a successful 3P seller on Amazon, there are 8 recommended steps that you should follow. The process of becoming a seller on Amazon is relatively simple.

1. Choose a Product to Sell

To begin earning money by selling products on Amazon, it is crucial to determine the niche and items you wish to target. Opt for products that are in high demand, lightweight, easy to ship, and fall within the impulse buy range of $15 – $50. Additionally, avoid products that are dominated by popular brands.

Start your product research on Amazon by exploring specific keywords and looking for popular products at the top of the search results. Take into account the pricing, competition among 3rd party Amazon sellers, and the ease of branding and shipping the products.

Utilize Amazon’s chrome extension tool to identify opportunities and potential gaps in your niche and products. The tool also provides an opportunity score based on the difficulty level of selling the product you’re researching.

When selling on Amazon, it is crucial to focus on a specific niche and choose products that you find interesting and enjoyable. This will help you maintain your commitment and stay motivated throughout the venture.

Become an Amazon Third-Party Deller

2. Source Your Product

Once you have made a decision on the product(s) you wish to sell, it is essential to locate a reputable supplier. A recommended approach is to explore online marketplaces such as Alibaba, which offers a wide range of merchants providing various products at different prices. Additionally, customer reviews on these platforms can assist in determining the trustworthiness of the suppliers.

Another avenue to consider is attending trade shows and expos, where you can directly connect with manufacturers and discover new products. As experienced third-party Amazon sellers, we have frequently attended the Canton Fair in Guangzhou. This allows us to physically examine and interact with potential products, facilitating negotiations without the need to order samples beforehand.

To expedite the process of sourcing products, I suggest utilizing JungleScout’s supplier database. This invaluable resource offers comprehensive information about suppliers, including their contact details, product pricing, production times, and more. It simplifies the task of finding the ideal supplier for your business.

Moreover, JungleScout’s intuitive search capabilities enable you to swiftly and effortlessly locate the appropriate supplier for any product you intend to source.

By conducting thorough research and selecting the right suppliers, you can ensure that you acquire reliable and high-quality products that meet the demands of your customers.

3. Create an Amazon Seller Account

While you wait for your product to be manufactured and shipped, you can make the most of your time by creating your Amazon seller account and listing your product. It’s a simple process, but there are a few key steps to follow.

First, head over to Amazon’s seller signup page and fill in the necessary information, such as your name, address, and contact details. You’ll also have the opportunity to choose a unique store name and URL that will represent your brand.

Next, you’ll need to decide between Amazon’s Individual Plan or the Professional Plan. If you anticipate selling 40 items or less per month, the Individual Plan is the way to go. Each product sold will incur a fee of $0.99. However, if you’re serious about being a third-party retailer on Amazon, the Professional Plan is the better option. It allows for unlimited sales and offers additional features like multiple user accounts and advanced reporting. The Professional Plan costs $39.99 per month.

Once you’ve created your seller’s account, it’s important to link your bank account. This will ensure that you receive the proceeds from your sales. Additionally, you’ll need to complete the Tax Interview to provide Amazon with the necessary information for invoicing your customers.

With these steps completed, you’re now ready to start adding your products and begin selling! However, it’s crucial to familiarize yourself with the marketplace’s rules and regulations. Take the time to understand the policies, pricing models, and any product restrictions to ensure your success as a third-party seller on Amazon.

4. Create a Product Listing

After setting up your professional seller account and selecting the products you want to sell, the next step is to create a product listing.

To do this, simply log into your Amazon seller account and go to the “Catalog” tab. From there, you can create your product listing and use keywords to attract potential buyers.

When creating your product listing, be sure to include important details such as the item’s condition, size, price, and a thorough product description. This will help potential buyers make an informed decision.

You can also include acceptable payment terms and available delivery methods to provide additional convenience for shoppers.

Don’t forget to include high-quality images that showcase your product. This will give potential buyers a better idea of the product’s quality and ensure that it meets their needs.

5. Set Your Price

When determining the price for your product, it’s crucial to establish a competitive and cost-effective price point.

To begin, conduct thorough research on the overall market, both online and offline, to gain insight into the average price range. This will give you a better understanding of where your product stands in terms of pricing.

Next, take into account the expenses associated with materials, labor, and shipping when calculating the price of your goods. It’s important to factor in these costs to ensure that your pricing is realistic and covers all necessary expenses.

Become an Amazon Third-Party Deller

Additionally, it’s advisable to set a price that is reasonable enough to cover your costs and achieve your desired profit margins, without going overboard. Finding the right balance is key to attracting customers while still making a profit.

Utilizing an automated repricing tool can be highly beneficial as it allows you to monitor your competitors’ prices and adjust yours accordingly. This ensures that you always maintain an optimal price for your product, keeping you competitive in the market.

While determining your prices, it’s crucial to stay informed about Amazon’s pricing rules. Avoid price gouging and charging higher than the manufacturer’s suggested retail price (MSRP), as these practices are prohibited. Take the time to carefully analyze the numbers and ensure that you are offering fair and competitive prices.

6. Fulfil Your Orders

Starting your business as a third-party seller on Amazon? I highly recommend taking advantage of their FBA program. FBA, or fulfilled by Amazon, is a fantastic opportunity for your Amazon business. It takes a lot of the work off your plate and onto Amazon’s.

Related: Amazon FBA vs Dropshipping – Which Can Make More Profit?

Selling through FBA comes with a range of benefits. First, it increases the visibility of your products on Amazon, leading to more sales. Amazon takes care of shipping, fulfillment, customer service, and returns, allowing you to focus on growing your business.

Additionally, FBA reduces overhead costs. You don’t have to worry about warehousing or staffing a warehouse operations team. Amazon handles all the logistics, saving you time and money in the long run.

With FBA, your products can reach customers faster than ever before. By partnering with Amazon’s fulfillment centers worldwide, you can offer faster delivery times and improve customer satisfaction.

Scaling your business is also easier with FBA. Amazon has the infrastructure and resources in place to keep up with your product demand, allowing you to expand quickly and effortlessly.

Another advantage of FBA is access to Prime customers. Your products become eligible for Amazon Prime, giving customers free two-day shipping. This increases the likelihood of customers choosing your products over competitors who don’t offer Prime eligibility.

Furthermore, FBA-eligible products have the opportunity to compete for the Buy Box, especially when priced competitively. This gives you an edge over Seller-Fulfilled Merchants (SFMs) and helps boost sales and revenue.

If FBA doesn’t suit your needs, you can consider FBM, or fulfilled by merchant. This involves finding a fulfillment center to store and ship your products on your behalf. Regardless of the option you choose, it’s important to manage your stock levels and ensure you always have enough inventory.

7. Market Your Product

1. Research Your Market: Before launching your product on Amazon, it’s crucial to understand the market. Take a look at your competitors, study pricing, and identify any gaps in the marketplace that your product can fill.

2. Create Compelling Product Listings: Spend some time optimizing your product listings with accurate descriptions and high-quality visuals. This will ensure that customers have a positive experience when they come across your product.

3. Secure Early Reviews: Reviews play a vital role, especially for new products. Reach out to influencers and customers who have shown interest in similar items. Ask them for their feedback in exchange for a free item or a discount code.

4. Utilize Amazon Advertising: Consider using PPC advertising to create buzz and increase the visibility of your product listing. This will help expand your reach and attract more buyers over time.

5. Track Performance & Optimize Listing: Keep an eye on metrics like sales velocity and customer reviews to evaluate the progress of your launch. Make necessary changes to optimize performance as you go along.

6. Leverage Social Media: Take advantage of your existing social media following or contacts to spread the word about your new product. Encourage your followers to leave reviews and share their experiences with the product.

7. Monitor Competitors: Stay updated on your competitors’ strategies and activities in the marketplace. This will give you insights into what works and what doesn’t, allowing you to make adjustments and stay ahead of the competition.

8. Host Giveaways & Contests: Offering giveaways or contests is an excellent way to generate excitement for your product launch. It creates a buzz and gets people talking about your product.

9. Create Quality Content: It’s important to create high-quality content that engages your audience. This can include writing informative blogs, creating engaging videos, or designing eye-catching infographics. By doing so, you’ll not only raise awareness about your product but also educate potential customers on why they should choose it over other options available in the market.

10. Reach Out To Media & Influencers: Conduct thorough research to identify the most relevant ones and then contact them to gain additional exposure for your product launch. Their endorsement and coverage can significantly increase your product’s visibility and credibility.

8. Manage Your Business

Become an Amazon Third-Party Deller

To boost the visibility and sales of your new product, it’s important to create high-quality content that engages your audience. This can include writing informative blogs, creating engaging videos, or designing eye-catching infographics. By doing so, you’ll not only raise awareness about your product but also educate potential customers on why they should choose it over other options available in the market.

Another effective approach is to reach out to media outlets, bloggers, and influencers in your industry. Conduct thorough research to identify the most relevant ones and then contact them to gain additional exposure for your product launch. Their endorsement and coverage can significantly increase your product’s visibility and credibility.

Once your product is launched, it’s crucial to maintain a steady stream of sales to demonstrate its popularity to Amazon. One recommended strategy is to continue utilizing Amazon PPC (Pay-Per-Click) advertising. This not only increases your product’s exposure within Amazon’s ad network but also provides valuable insights about your target audience, which can be utilized for campaigns on other platforms.

Collaborating with influencers is another powerful tactic. By offering them free products in exchange for reviews, promotions, or mentions, you can leverage their influence to reach a wider audience. Additionally, you can create unique referral links for influencers and offer them a commission for every sale made through their link. This further motivates them to actively promote your product.

While there are numerous promotional methods available, consistently implementing these two strategies will give you a competitive edge and help you achieve increased exposure and sales.

How to Get Customer Reviews on Amazon

If you want to increase the number of reviews you receive, having a superior product compared to your competitors is key. It’s as simple as that.

One effective method is to pleasantly surprise your customers with the quality of your product. When they are impressed, they are more likely to leave positive reviews without any prompting.

We have actually written a comprehensive guide on how to obtain reviews on Amazon. It’s definitely worth checking out.

Now, let’s dive into two strategies that you can implement right away:

Firstly, you can make use of Helium 10 Follow-Up. This handy tool allows you to automate email campaigns that reach out to customers after they have made a purchase. By ensuring everything is satisfactory and kindly requesting a review, you will receive more positive feedback and minimize negative feedback. For more information on Helium 10 Follow-Up, click here.

Another effective approach is to utilize product inserts. By providing customers with helpful information about your product, you can subtly ask for reviews. However, it’s important to remain neutral and not explicitly encourage five-star reviews. Additionally, you can also suggest that customers join your newsletter or follow you on social media, which will benefit you in future product launches.

Conclusion

Becoming an Amazon third-party seller isn’t just a business move; it’s a gateway to entrepreneurial success. With low startup costs, exposure to millions of customers, and the backing of Amazon’s payment protection and fulfillment services, it’s a lucrative path worth exploring.

By following the steps outlined in this guide, you can set your business up for triumph and embark on a journey toward financial independence, all while providing top-notch service and products to your customers. 

Ivy Smith

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top