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Want Your Company To Sell Products On Amazon? Here’s 5 Things You Should Know

Want Your Company To Sell Products On Amazon? Here’s 5 Things You Should Know

It's a jungle out there - here's how to survive it

25th October 2018

Although Amazon started as a small online bookstore in 1995, within a few years Amazon had expanded into many other markets. Today, Amazon sells virtually everything from beauty products to home appliances and car parts. The great news is that 40% of the sellers on Amazon are third party sellers – and this means that you too can sell products on the world’s largest online marketplace. Getting your company to sell products on Amazon is a powerful way to attract new customers and broaden your reach.

So how do you get your company to sell products on amazon? And more specifically, what steps can you take to give your company the best chance of success?

Read on to find out.

Pick the right selling plan before getting your company to sell products on Amazon

Deciding to get your company to sell products on Amazon exposes your company to millions of customers worldwide. Whether you’ve just started your company, or just want to get your products into a global online marketplace after having a retail store, the exposure that Amazon offers is unparalleled.

Amazon have 2 selling plans, one as an individual seller and the other as a professional seller. Individual sellers have to pay $0.99 per sale, and a professional seller has to pay $39.99 per month and sell over 40 items. If you’re selling something as a one-off, you would opt for the individual plan. However, if you want to sell more frequently, $39.99 a month isn’t a huge price to pay – you just have to make sure you reach 40 sales per month to get your money’s worth.

Be weary of the competition

It’s a jungle out there, and nowhere more so than in the world’s largest online retailer. Depending on what you sell, it is likely that there are many more sellers who sell products in a similar space to yours. If you want your company to sell products on Amazon, have a think about your selling points. What makes your products different from the rest? How do your strongest competitor’s market themselves?

Selling products online itself requires a different marketing strategy from selling products in store, and this also has to be adapted for selling on Amazon.

Comply with all the rules

Amazon has strict rules when it comes to selling online. In addition to rules your company already has to comply with through the Australian Competition and Consumer Commission (ACCC), you also have to adhere to Amazon’s rules or they can ban your company from selling on their site. Using Amazon as your sole vehicle to sell products is not without risk, and it is worth maintaining some products on your own site to have a backup in case if anything happens.

Protect your Intellectual Property

Depending on the type of products you sell, it is important to ensure that any intellectual property is protected before proceeding to sell on Amazon. You can do this by registering trademarks for your company logos, slogans and any designs. There have been incidents of unethical sellers registering a product that is already listed under the same product code and then providing counterfeit products to customers. This has resulted in the original sellers getting bad reviews, and if you get a series of bad reviews, it is enough for Amazon to prohibit you from selling on their site. IP Australia have useful information on how to protect your products in the digital age and it is worth engaging an intellectual property lawyer to determine what protection you should register for.

Determine whether you want to be a ‘Fulfilment By Amazon’ (FBA) Seller

If your company already operates as an online business, it is likely that becoming an FBA seller isn’t necessary as having your orders shipped by Amazon does entail additional charges. Being an FBA seller means that Amazon take care of the shipping and general logistics of getting your product out to the customer. For an extra fee, you can make sure that your company’s shipping methods are reliable, and the same goes for customer returns. Deciding whether or not to be an FBA seller depends on whether your company has a large amount of stock, a significant profit margin, and whether it has the capabilities to fulfil orders on its own. However, registering your company to sell products on Amazon requires that you have an adequate shipping and delivery system in place.

Getting your company started on Amazon will provide enormous opportunities and the potential for your business to grow in a global market. However, it is important to choose the right plan and take measures to ensure your products are protected and more importantly, that your customers are satisfied.

Have more questions? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

Jackie Olling

Jackie is the Content Manager at Lawpath and manages the content team. She has a Law/Arts (Politics) degree from Macquarie University and is an admitted solicitor in the Supreme Court of NSW. She's interested in how technology can help shape the future legal landscape.