How to Start an Amazon Business

Read this guide to learn how to start an Amazon business and begin selling on the platform. Doing so can help boost your income.

Are you wondering how to start an Amazon business? With hundreds of people using Amazon every day, this is a great opportunity for you to boost your income. Selling on Amazon is relatively straightforward, but you must closely follow a few steps to operate your business as soon as possible. 

What do you need to know about starting an Amazon business? Take a closer look at the steps below and learn how to open a business on Amazon successfully. You can also use the links below to navigate the post. 

1. Choose a Business Structure

If you are wondering how to start an Amazon business, the first step is to choose a business structure. The options include:

  • Sole proprietorship: If you are only one person, a sole proprietorship might be the best option for you. If there is no distinction between the business and the owner, this could be a suitable choice.
  • LLC: You may want to become a Limited Liability Corporation or LLC. This is a smart move if you want to protect your personal assets in the event the business is held liable for certain issues.
  • S Corporation: If your business has multiple owners, you may want to form an S Corporation. This is a special type of corporate structure that can provide certain tax advantages.
  • C Corporation: A C Corporation is the default corporate structure for many companies. This might be the right option for your company if you don’t qualify as an S Corporation.

Consider reaching out to a professional who can help you determine which type of business structure is right for you. Once you identify the right business structure, you can move on to complete other requirements, including:

  • Getting an Employer Identification Number, or EIN
  • Opening a business account at a bank to separate your business assets from your personal ones
  • Obtaining the proper selling permits and business licenses

If you have questions or concerns about this process, you should reach out to a professional who can help you. 

2. Open an Amazon Seller Account

Next, you need to open an Amazon seller account. Once you sign up for your account, you’ll have to select a plan to start selling and have a credit card on file. You can either choose to pay Amazon a flat fee on the products you sell or you can sign up for a monthly subscription. Take a look at your budget to determine what you can afford.

3. Pick the Right Products 

The next step in how to start a business on Amazon is to pick the products you want to sell. There are a few factors to consider when deciding what products to sell on your Amazon store. They include:

  • Think about your target market and what they might be interested in.
  • Consider gaps in the market that allow you to separate yourself from the competition.
  • Take a look at reviews and ratings to make sure you provide products people like and need.

After this, you will need to price your products. This is a critical step that can bring traffic to your business or prevent consumers from shopping. Prices that are too high may cause visitors to try another seller, while prices that are too low may indicate that your product is poorly made. 

Helium 10 has various product research tools that can help you identify trending products and conduct market research that allows you to ensure your store stands out from the crowd. You can learn more about the current market, look for products people like, and price them accordingly. Take a look at the Black Box tool to see how Helium 10 can help you determine the right products to sell on your Amazon business.

4. Find a Supplier 

Next, you need to find a supplier. You can’t sell products if you don’t have anything to sell. There are numerous suppliers out there, but you probably want to find a wholesale supplier that can provide you with your goods at a discount. That way, you have plenty of room to make a profit. Pay attention to the quality of the goods you receive since they will be a reflection of your store.

5. Determine Your Fulfillment Method

You also need to think about how you will fulfill the orders placed with your company. You have the option to fulfill the orders yourself. This means that when someone places an order with your store, you are responsible for shipping it out. Or, you can have Amazon do this for you. This requires an extra fee, but Amazon can ship orders to your customers on your behalf.

You may also want to look into dropshipping. Essentially, you will pay a third-party supplier to handle your shipping needs. You should think about the benefits and drawbacks of each option before you decide what is right for your company.

6. Scale Your Business

Finally, you need to grow and scale your business since there are approximately 6.3 million sellers on Amazon. Use digital marketing tools to help you drive more traffic to your company. For example, you may want to use social media to attract more people to your Amazon store. You should also optimize your product listings to get them to rank better on search results. Helium 10’s  Listing Analyzer can review look at your product listings and ensure they have been optimized for maximum online visibility. The easier it is for people to find your store, the more sales you can generate. 

Benefits of Starting an Amazon Business 

With Amazon having a much larger following than Amazon vs. eBay, this is probably the better opportunity for you to make money. Additional benefits of starting an Amazon business include:

  • You can generate passive income, which means making money without necessarily spending numerous hours working every day.
  • You can work from home and do not have to worry about commuting.
  • You decide what you sell and how you sell it.

When growing your Amazon business, be careful not to make your product listings too long, as you might scare some people away. Do not forget to list social proof to show how many people love your products.

Starting an Amazon Business: FAQs

How much does it cost to start an Amazon business?

It doesn’t cost anything to start a business on Amazon, but you have to choose between the individual and monthly plans before you can start selling on the platform. It is important to take this fee into account since it may impact your bottom line. 

Are Amazon businesses profitable? 

Amazon businesses can be profitable as long as you drive the right traffic to your store and people enjoy your products. Use Helium 10’s product suite to ensure your product listings are optimized and bring visitors to your store. 

What do I need to start an Amazon business?

You need a seller account, a business bank account, and a credit card on file to cover the Amazon fees. Then, you need to have products to sell. It is also important to look for a third-party supplier that can provide the products you need.

Wrapping Up 

Selling on Amazon can be challenging, but it may be worth the time and effort if done successfully. Make sure to use the right software tools when learning how to start an Amazon business. Helium 10 can help you find the best products and optimize your listings to stand out from the crowd and boost revenue. Use Helium 10 to help grow your Amazon business today! If you have questions, do not hesitate to contact us. A customer service representative will be happy to assist you. 

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