Selling on Amazon offers incredible opportunities for businesses looking to tap into a global marketplace. With millions of active users, Amazon has become undeniably one of the most popular platforms for e-commerce sellers. In this guide, we’ll explore the key aspects of selling on Amazon, how to start selling in the UK, and how Lesters Logistics can support your journey in optimising order fulfilment processes.
Is Selling on Amazon Worth It?
One of the main benefits of selling on Amazon is access to a vast audience. With over 200 million active users worldwide, the platform provides visibility for your products. Amazon also offers reliable shipping, payment processing, and customer service, which can ease the burden for sellers.
However, selling on Amazon isn’t without its costs. You’ll need to factor in Amazon’s seller fees, which include subscription fees, commission on sales, and shipping costs. Despite these expenses, many sellers find the potential for high sales volume justifies the costs.
So, is selling on Amazon worth it? For many, the answer is yes, especially if you are looking to expand your reach and streamline your operations with a trusted platform. Lesters Logistics can help you optimise your fulfilment strategy and ensure your products reach customers quickly and efficiently. We integrate with several marketplaces including Amazon, eBay, Walmart, Etsy, and Shopify, ensuring your orders from these platforms are automatically processed in our system. Check out our services here.
Is Selling on Amazon Free?
No, selling on Amazon is not free. While setting up an account on Amazon is free, there are several fees you need to consider before you start selling:
- Subscription Fees: Amazon charges a monthly subscription fee for professional sellers (around £25 + VAT in the UK). However, if you’re just starting out or selling fewer than 40 items a month, you can opt for an individual seller account with no monthly fee but a higher per-sale fee.
- Referral Fees: Amazon charges a percentage of each sale based on the product category. The referral fee can range from 6% to 45%, with most categories averaging around 15%.
- Fulfilment Fees: If you use Amazon’s Fulfilment by Amazon (FBA) service, there are additional fees for storage and shipping.
While there are costs associated with selling on Amazon, the platform’s tools and large customer base make it an attractive option for many businesses. Working with Lesters Logistics can further streamline your fulfilment process, save time, and reduce the costs of storage, shipping, and customer service.
How to Start Selling on Amazon in the UK
- Create an Amazon Seller account: First, sign up for an Amazon Seller account. You’ll need to provide business information, tax details, and a valid credit card.
- Choose your selling plan: Decide whether to go with an individual plan or a professional plan, depending on your sales volume and needs.
- List your products: Once your account is set up, start listing your products. You can either create a new product listing or add your products to existing listings if they are already on Amazon.
- Optimise your listings: To stand out on Amazon, you’ll need to optimise your listings. This includes writing compelling product descriptions, adding high-quality images, and using relevant keywords.
- Choose your fulfilment method: You can either ship products yourself (FBM – Fulfilment by Merchant) or use Amazon’s FBA service. FBA can help you reach Prime customers and leverage Amazon’s fulfilment network. If you choose to handle fulfilment in-house, Lesters Logistics offers platform integrations that can help streamline your fulfilment and shipping processes to meet customer expectations.
- Promote your products: Amazon offers a lot of marketing tools, such as Sponsored Products ads, to increase the visibility of your listings.
- Monitor performance and adjust: Once your products are live, monitor your sales performance and customer feedback. Be prepared to adjust pricing, keywords, and marketing strategies to improve your results.
Understanding the Importance of E-Commerce Fulfilment
As you begin selling on Amazon, it’s important to consider your e-commerce fulfilment strategy. Proper fulfilment is key to delivering excellent customer service, and partnering with a logistics provider like Lesters Logistics can help you streamline your shipping, inventory management, and customer satisfaction processes. Our solutions ensure that your products reach Amazon’s customers quickly and efficiently.
Additionally, understanding how warehouse management systems (WMS) can improve your operations is vital for staying organised and meeting customer demand efficiently. Our WMS solutions can optimise order picking, packing, and inventory control.
So, What Next?
Selling on Amazon can be a profitable venture if you’re ready to invest time and effort into understanding the platform’s requirements and optimising your listings. While it’s not free, Amazon offers great benefits. With Lesters Logistics handling your fulfilment, you can ensure smooth operations, fast shipping, and customer satisfaction every step of the way.