With Amazon, you’re likely to generate more leads and increase your profit margins from the platform. Most buyers trust Amazon. In fact, 89% of the customers shop from Amazon than other eCommerce platforms. 

Source: Amazon

If you’re not already familiar with the statistics, you now have more reasons to create Amazon account. The purpose of this guide is to take you through the various steps to create an Amazon account as a beginner.

Let’s get started.

How To Create Amazon Account

Once you settle on an online business idea, the next step is implementation. Out of the 6.2 million sellers on Amazon, only 1.5 million of the sellers are active. 

There are various reasons why shoppers buy from Amazon. These are – pricing, online buying, product recommendations, and reviews.

79.8% of buyers in the United States shop from Amazon as it offers fast and free shopping. Further, 68.9% of them feel that Amazon sells all the items the customers need. 

With Amazon, you can be an affiliate marketer or start dropshipping. To sell on the eCommerce platform, you need to create Amazon account. If you’re a beginner looking for assistance, here’s a step-by-step guide for you.

Here is how to create Amazon business account:

Step 1: Go to sellercentral.amazon.com or services.amazon.com

Source: Amazon

While on this page, you either create a new account or proceed with an existing one. For a new amazon account, you will have to click on sign-up. 

You need to make amazon account. Click the sign-up button to add your credentials. Add your name, email, and password. You will have to re-type your password to ensure that it’s correct.  

Step 2: Select a plan

Source: Amazon

Amazon offers sellers two pricing plans. These are individual and professional plans. If you’re a small trader selling less than 40 items in a month, you need to go for the individual seller plan.

On the other hand, if you are a large-scale trader, selling more than 40 items a month, you need a professional plan. The notable difference between the two is in the pricing. 

As for the individual plan, you need to pay $0.99 per item that you sell. As for the professional, you have to pay $39.99 per month. Besides, you have to pay additional selling charges for each plan. 

With Amazon, you’re free to upgrade from an individual plan to a professional plan. If you started by selling less than 40 items in a month and your business starts to scale, you can save yourself the $0.99 charge on each item to a monthly fee. 

Here’s the difference between the individual and professional Amazon account:

Step 3: Email verification

After creating your new account, Amazon has to verify your email. Amazon sends you a one time password, abbreviated as OTP, which you will have to enter in the OTP section. To finalize the process, click on the ‘create Amazon account’ button. 

Step 4: Enter business information

In this section, be careful with how you select and enter crucial details. The information in this section includes business and contact address, mobile and telephone number, chargeable credit card, and identity details. 

With the “business location”, you need to be specific on the location you run your business. If you do not have a business location yet, you can include your country of residence. 

As for the type of residence, you have several options to select from. These are state-owned, publicly owned, privately-owned, charity, and individual. 

Depending on your business type, make sure that you select a category that fits you best. Next, add your business name and click on the agree and continue button.

Step 5: Seller information page

Source: Amazon

With the seller’s information page, you need to include accurate details about your business. Add your company registration number and your business address. 

Make sure that you add accurate information as it appears on your bank statement and business license. Add your phone number for Amazon to verify. 

Amazon uses the phone number to verify your pin. Finally, add the names of your contact person. They should appear the same as on the passport or ID. Click Next to enter the details of your contact person.

Step 6: Marketplace information

With the marketplaces option, check the boxes for the locations you want to sell your products. For example, if you’re looking to expand to other marketplaces like Japan or Europe, make sure you check the appropriate boxes. Click on Next to proceed.

Step 7: Billing

For the billing section, you have to include an authorized credit card and banking details. Amazon uses your credit card information for verification. There will be a one-time $1 charge for the account verification. 

What you require is your credit card number and the expiration date. Make sure that you also include the name on your credit card. Click Next to continue to the next stage.

Step 8: Store information

Do you have a name for your eCommerce store? Here, you provide information regarding your online store and the products you plan on selling. A store name is a name that appears on a listing. 

You’re free to use your brand name as your store name. It improves your store’s credibility. In this section, make sure you select whether your products have a universal products code (UPC).

Additionally, select the appropriate option whether you’re the manufacturer or the brand owner of the products you’re selling. 

Also, select from the options whether you have branded products to sell on Amazon or a government-registered trademark that you own. Click on next to proceed.

Step 9: Verification

Amazon will verify whether the details you provided earlier are accurate. You will have to upload documents such as bank statements, passport or ID, and any other relevant documents that you have.

A pro tip is to ensure that the address on your documents is the same. If you’re comfortable with the information, click the submit button.

After Amazon verifies the contact details, you will have successfully created an Amazon account as a seller. The next step is to upload and list your products to sell. 

How To Create Amazon Prime Account

Source: Amazon

Have you thought about becoming an Amazon prime seller or buyer? Is it worth creating the account? What are the benefits? Well, if you’re looking to shift to amazon prime, we’ll help you create amazon account. Let’s dive right in.

For a buyer, signing in for Amazon prime opens up so many benefits. First, you enjoy free shipping on certain products, early delivery, fast notifications on offers and discounts. 

However, Amazon prime is not free. It has a monthly subscription for amazon services. You can consider using the free trial if you’re not using Amazon prime services.

Source: Amazon

Go to Amazon prime to sign up for the 30-days free trial. Click on the try prime button. Ensure that the details you provide are accurate. Some of the benefits of amazon prime are shipping, shopping, and entertainment. 

After the trial period is over, you’re free to upgrade to a paid plan. Subscription charges available on amazon prime are $14.99 per month, $139 per year, and $8.99 prime videos per month. 

However, for prime student, the subscription fee is $7.49 per month. The 6-month trial comes at half price. 

On the other hand, for a seller, the prime badge appears on your listings. However, for a third-party seller on Amazon prime, you can deliver products to customers through fulfillment by Amazon (FBA) or seller fulfilled prime (SFP).

Source: Amazon

A seller fulfilled prime (SFP) ships products to the prime customers with no additional charges. It means that you have to fulfill orders to the customers within the two-day agreement.

On the other hand, with fulfillment by Amazon, Amazon does the shipping for you. As a seller, you do not manage shipping like in seller fulfilled prime. Amazon picks, packs, and also ships orders on your behalf. 

Final Thoughts

If you’re looking to create Amazon account, there you have it. You can now start selling products and join millions of merchants on the eCommerce platform. 

With Amazon, you can choose to fulfill orders for your customers or have Amazon do it for you. The advantage of selling on Amazon prime is that you have the benefit of prime customers. 

Since the buyers have a subscription fee, they tend to shop more often, which helps you earn loyal customers. With Amazon, the cost of selling will depend on the fulfillment fees, referral fee, selling plan, among other factors. 

Besides Amazon, you can also run a dropshipping store on eBay. What you need to start is a computer, a website, and the products to sell. However, identifying the products is not always that easy.

So, if you’re in for a dropshipping business on Amazon, there’s a lot you need to know beforehand. Lucky for you, that’s why we have this guide. We’ll take through how to go about dropshipping and how to make a profit from it. It’s time to roll up your sleeves.

So, let’s get started!

What Is Dropshipping?

Source: Oberlo

Dropshipping is an online business that does not require an inventory or startup free to begin selling. Instead, the drop shipper identifies the products to sell and markets them online to attract buyers.

Dropshipping is easy to start and manage as compared to having a physical store. However, for a beginner, you may consider starting small before you finally get the hack of it. 

That is, start by selling a single product before you proceed to add more products to your online store. Amazon is the leading online eCommerce store, and it allows dropshipping. As of 2020, it had a net sale of 386 billion US dollars. 

With dropshipping, the drop shipper is the link between the supplier and the customer. Here’s an example. You list a vacuum cleaner at $400 on your online store, while the supplier sells it at a wholesale price of $350. The customer views the product and places an order for it.

As the drop shipper, you forward the product description and customer information to the supplier. On the other side, the supplier accepts the order and ships it to the buyer. 

How To Dropship On Amazon

As earlier mentioned, Amazon allows dropshipping. It is easier to identify the products to sell from the millions of products listed in the online store. 

However, before you get started, you need to go through Amazon’s policy, or otherwise, they may end up withholding your store. Below are the guidelines from the Amazon dropshipping policy for all drop shippers:

1. You have to be the record seller of your products.
2. Identify yourself as the product’s seller. That is on all packing slips and other information in connection with products.
3. Eliminate any information that recognizes a third-party drop shipper before you ship the order.
4. You are responsible for accepting and processing product returns. 
5. Observe the seller agreement terms and other policies applicable on Amazon.

Pros And Cons Of Amazon Dropshipping

With dropshipping, the client does not have to know that the product does not ship directly from your shop. It is a form of eCommerce selling that varies from a physical store. 

However, there are benefits and drawbacks of running this type of eCommerce store. As you plan on running a dropshipping store, here what you need to know:

Pros

1. You do not need a product inventory. Unlike other stores where you need a warehouse to store the products, dropshipping is the complete opposite. You list the products, but you do not have contact with them.
2. Dropshipping is profitable. On your eCommerce store, you list the products at a higher selling price different from the supplier/ Amazon. 
3. Amazon eCommerce store has millions of products to drop ship. With the right software, it is easy for you to identify profitable products to start selling.
4. Amazon drop shipping is scalable. With so many product categories, you can sell products from various niches. 
5. Increased visibility. Since Amazon is the largest eCommerce platform, you can easily attract potential buyers to your store. It is also easy to discover product suppliers to collaborate with.

Cons

However, despite the benefits that come with Amazon dropshipping, there are also a few drawbacks. These are:

1. For a beginner, it can be time-consuming to identify suppliers. Therefore, this may take you a long time to get started with the business.
2. Competition from other drop shippers. With the digital revolution, most sellers are using online platforms to market products.
3. The suppliers can take time to deliver a product and thereby affect the credibility of the business. In addition, the supplier may also ship the product to the wrong shipping address. 
4. Amazon can withhold your dropshipping store if you do not uphold the policies put in place. 

Is Amazon Dropshipping Profitable

If you’re reluctant to start a dropshipping business on Amazon, it is very profitable. First, you do not need a warehouse to store the products or a shipping plan to deliver the products. 

Amazon takes 15% of your dropshipping revenue. To make the best from your store, consider selling on-demand products. 

How To Start Selling With Amazon Dropshipping

1. Identify products to sell

The initial step for any drop shipper is to identify products to sell. You may need to start with a single product before you proceed to multiple items.

2. Select an Ecommerce platform

It is easier to set up an online store without the technical web design experience. The most popular eCommerce store builder is Shopify. 

3. Set up a seller account on Amazon

Source: Amazon Seller Central

Since you’re dropshipping on Amazon, you need to have an Amazon seller account. To begin selling, set up your account profile on Amazon Seller Central and add details about your business.

A professional account comes with a monthly subscription fee. As you list your products to sell, you need to have competitive prices to earn a profit.

4. Request the approval of your product listing

Amazon requires you to get product approval for various products. Examples of restricted products are beauty, fashion, food & beverage, gambling & lottery, and jewelry. 

5. Connect Amazon to your Shopify account

Once Amazon approves your account, you need to connect it to your Shopify account. Here’s how to go about it. On your Shopify profile, scroll down to the sales channel section. Click to select the add ‘+’ button.

From the pop-up, select Amazon and click add channel. Finally, click connect to Amazon to complete the process.

6. Create product listing on Amazon 

After connecting your Amazon account to Shopify, the products do not automatically appear on your listing. Import the products to your Shopify eCommerce store. 

Besides, if you do not have as many products, you can manually add each. Click on create listings from your Shopify store. Next, click on select product. From the available options, select this product is made by another brand. The reason being, you have a dropshipping account.

7. Keep track and promote your products

One of the reasons why drop shippers fail in the dropshipping business is the failure to keep track. That is, a client places an order for an item, but it is out of stock.

As the drop shipper, you need to keep track and check if the listed products are available from the suppliers. If they are not in stock, make sure you update the product details accordingly. 

In addition, promote your products to attract potential buyers. Remember, dropshipping is a competitive business. You have to be on top of your competition and attract as many buyers as you can.

Amazon Dropshipping Tips

With the information above, you can now start Amazon dropshipping. However, this is an initial step to setting up your dropshipping profile.

1. Optimize the product information for SEO

While running your dropshipping store on Amazon may be a bonus, you have to invest in SEO. Make sure that you research words or phrases that prospects use when looking for products.

2. Win the Amazon’s Buy Box

Amazon’s buy box contributes to over 80% of the sales on the platform. As a drop shipper, if you manage to win the buy box, it can increase profit to your business.

3. Have more product reviews

Source: Amazon

One of the reasons why you should have product reviews is to earn credibility. A review is one of the factors a buyer will consider before buying a product.

However, they need to be positive. To get a review, you can follow up on a customer and request them to leave feedback on the product. In case a client leaves a negative review, you can engage them to resolve the issue. 

4. Promote your Amazon Dropshipping Store

As earlier mentioned, promoting your dropshipping store is necessary to drive traffic and increase conversion. There are multiple techniques to use to advertise your products online. 

You can use paid promotions like Google ads and Facebook ads. Also, you may consider using an influencer who may have information about a product within your store. 

5. Improve Customer Experience

Customer experience is crucial to the retention and conversion of clients to a business. So, how do you improve customer experience?

First, make sure that your dropshipping store is accessible from all devices. That is, it should be mobile responsive. Most shoppers make online purchases using their mobile devices. 

Dropshipping on Amazon FBA

Source: Amazon

FBA is an abbreviation for Fulfillment by Amazon. It means that Amazon handles the packing, shipping, storing, exchange, and returns on your behalf.

The Fulfillment by Amazon improves your possibilities of winning the buy box. However, the FBA service is not free. The cost depends on the business, shipping, and the size of the operation. 

Is Amazon Dropshipping Worth It?

If you want to start an eCommerce store with limited resources, Amazon dropshipping is worth considering. It does not require startup costs and is easy to manage.

However, to run a dropshipping store, you need to work with reliable suppliers and profitable products. It is time-consuming, but using software can ease the burden for you.

Designing a Shopify store is easy. With Shopify, you can create your Amazon dropshipping store within minutes. With this guide, you can successfully run an Amazon dropshipping store and start selling.