The Basics of Selling on Amazon – Special Edition for the Current eBay Non-Media Seller

Posted on September 19, 2008. Filed under: Amazon, BlogTalk Radio, eBay | Tags: , , , , , , |

If you are an eBay seller considering making the move to Amazon then this article and BlogTalk Radio episode is for you!

To learn about selling on Amazon, you can listen to our free one-hour blogtalk radio segment here:

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Click Here for More Information (Blogtalk Radio 1-hour Basics … no commercials!)

 

(1) Seller Accounts using Amazon Seller Central

Pro-Merchant Account
* Items appear for sale directly on Amazon
* Categories are “Open” or “Restricted”
* Selling in Restricted Categories Requires Prior Approval
* Fixed Cost is $39.95 a month
* Selling fees are category-based and range from 6% to 20%
* Fees charged by Amazon include payment processing
* Sellers are paid every two weeks

Webstore
* Items appear on website (specific URL) and also directly on Amazon for Pro Merchants
* Webstore sellers who do not have a Pro-Merchant account can sell items in resricted categories (note that the items will ONLY appear on the webstore and not on Amazon)
* Fixed price is $59.99 a month
* Selling Fees are based on where the buyer originated – from website, flat 7% fee is charged
* Fees charged by Amazon include payment processing
* Sellers are paid every two weeks

 

(2)  Items that can / cannot sold through an Amazon Pro-Merchant Account

Prohibited Items: Magazines & Newspapers, Tobacco & Alcohol, Adult Toys, Gift Cards & Gift Certificates, Prescription Medication, Guns & Ammunition, Photo Processing

Open Categories (Media): Books, Music, DVD, VHS

Open Categories (Non-Media)
Automotive
Baby
Camera & Phone
Electronics
Health & Personal Care
Home & Garden
Musical Instruments
Office Products
Software
Sports & Outdoors
Tools & Hardware
Video Games

Approval Required Categories:
Apparel
Beauty
Cell Phones & Accessories
Gourmet
Grocery
Jewelry & Watches
Personal Computers
Shoes & Accessories
Toys & Games

 

(3) The Amazon Selling (Referral) Fee Percentages – category based – for Pro Merchant Accounts

Product Type

Referral Fee Percentage

Apparel/Apparel Accessory

15%

Automotive Parts

12%

Baby

15%

Beauty

20%

Books, magazines
and other publications

15%

Camera and Photo

8%

Consumer Electronics

8%

Food/Gourmet

20%

Health and Personal Care

15%

Home

15%

Industrial Supply

12%

Jewelry

20%

Kitchen

15%

Music (and other
sound recordings)

15%

Musical Instruments

12%

Personal Computer

6%

Software

15%

Sporting Goods

15%

Tools

12%

Toy

15%

Video Game

15%

Watches

13%

Wireless Phone/Accessory

15%

Any Other Products

15%

Note that the selling (referral) fees include the fee for payment processing.

 

4. Amazon Pro-Merchant Account Holders can add new product (create new product detail pages) in the following categories:

  • Automotive
  • Baby Products
  • Camera & Photo
  • Computer & Video Games
  • Electronics
  • Health & Personal Care
  • Home, Kitchen & Garden
  • Musical Instruments
  • Office Products 
  • Pet Supplies
  • Software
  • Sporting Goods
  • Tools & Hardware
  • Toys & Games
  • Everything Else (excluding ineligible categories)

Note that merchants must adhere to very strict Amazon.com rules for creating new product detail pages (adding inventory items).

 

5. Pro-Merchant accounts establish shipping costs and return policies.  See blog post titled Amazon Does Allow Sellers To Set Shipping Charges (click on the link).

 

6. The Amazon Order Process: A customer places an order.  Amazon processes the order and verifies it then sends the order details to the seller.  The seller processes the order and ships it and then tells Amazon the order has been shipped.

 

7. Amazon Evaluates Sellers to Determine Continued Eligibility and “Featured Merchant” status
See blog post titled Amazon Seller Performance Requirements – Customer Metric (click on the link).

 

8. The Amazon Buy Box

When a seller places products in the Amazon.com catalog, anyone searching on Amazon can buy them.  There are three ways in which buyers can browse and buy an item:

(1) Using the Add to Shopping Cart button (in the Ready to Buy box / Buy box)
(2) Browsing all merchant choices in the “More Buying Choices” box and then clicking the Add to Car button next to the merchant from which the customer wants to purchase the product
(3) By clicking “used & new” link, browsing all merchants who are selling the item and then clicking the Add to Cart button next to the merchant from which the customer wants to purchase the product

Amazon puts all the merchants who sell the same product into the pool of eligible merchants.  One merchant “wins” the Buy Box; others who also sell the product as “new” are listed under More Buying Choices; finally, all merchants appear on the Used & New pages.

A merchant gets placed in the Buy Box based on a number of factors including price (total price including shipping), availability (how many in stock and how quickly shipped), volume of sales of this product, refund rate and other customer metrics such as feedback.

.

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One Response to “The Basics of Selling on Amazon – Special Edition for the Current eBay Non-Media Seller”

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I would like to sell my own product on Amazon and I want to know if I can post a video link to youtube that the customer can click and it will take them to a video demonstration of my product.


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