Amazon Business: What Does it Cost to Sell on Amazon?

Darrin Levine

Get this: there are over 200 million products sold on Amazon each year. As if that’s not enough, 175 million visitors do their shopping on Amazon each month.

So, what does it cost to sell on Amazon? We’re glad that you asked. If you’re interested in the requirements to sell on Amazon, follow along for more information.

Related: eCommerce customer Pain Points & How to Address Them 

Selling On Amazon: The Basics

You might be wondering: should I sell on Amazon? If you’re looking to boost your average income from selling on Amazon, you need to know the basics of selling on Amazon first.

First of all, does it cost money to sell on Amazon? While the short answer is yes, the amount of money that you’ll make from selling products on Amazon will far outweigh the small fee that you have to pay upfront. 

Incredibly enough, a lot of Amazon brands claim that they have made almost 70 percent of their initial investment every single month after their initial investment. For those with successful store launches, you can see your overall income increase dramatically over the first couple of years. 

Before you decide to sell products on Amazon, make sure that you know consider the FBA costs of your items as well. In case you didn’t know, that includes things like: 

        • Storage
        • Packaging
        • Shipping
        • Customer service
        • Customer returns

Another thing that you should consider is the size of your package. Most Amazon products will fit into the size of a standard shoebox. Just make sure that your package is light enough to ship via air.

Of course, you have to have hundreds of units to distribute in your store as well. In addition to that, having an extra 50 units is a great idea for giveaways. The goal is simple – to earn sales that outweigh your overhead and production costs.

 

Now, let’s figure out how to get started with your store!

Related: What is Amazon Premium Shipping

How to Get Started

Source Alt Text: amazon app loads on an iPhone

Want to learn how to get started? After you create an Amazon account for your brand, it’s time to look at how much it will cost to launch your products and start-up your store. To do this, there’re a few things that you have to think about first, including:

How about those promotional products? As we discussed, having an additional 50 products will give you a chance to give them away at a cheaper price. Also, you can use another platform to run promotional campaigns while adhering to Amazon’s strict Terms of Service.

This is a wonderful way to boost organic rankings and improve sales velocity. For those of you who have a new product launch, you’ll be able to gain some valuable reviews during this step as well. 

Related: How to Remove Negative Feedback on Amazon 

Basic Costs

 Related: 10 Strategies on How to Get Feedback on Amazon

Nice-to-Have Products

If you have any extra money to burn, then you might want to invest in a couple of extra perks. As your Amazon store becomes more successful, you can always spend some cash on sponsored ads.

Once your sales revenue goes up, you’ll naturally see a boost in keyword rankings. At that point, you should invest in Amazon pay-per-click ads. These are wonderful for getting your sales moving quickly, but they’re also great to run as long as your product is available. One of our best Amazon brand tools is our Amazon PPC management, which uses automatic data processing to help you streamline all your PPC operations. For more information regarding our PPC management tool, our keyword tracking/rankings tool, and many other Amazon operations tools, call us today

How much does this cost? If you’re running a cheap ad campaign with a low budget, then it may cost as little as $5 each day. This investment should definitely generate a few more sales for your store. In addition to this, you can sign up for a registered trademark as well. A trademark provides Amazon customers with peace of mind in buying products from a verified brand. 

How much does it cost for a registered trademark? Expect to pay at least $250 for this part of the process!

Related: What is Prime Pantry on Amazon?

Additional Expenditures to Consider

Take a look at some additional expenditures to consider. For instance, you may want to consider using ASDAL’s software, GRIT,  to promote your brand. We’re fantastic at helping out with things like:

        • Customer Feedback Management
        • PPC Management
        • Inventory Forecasting/Demand Planning
        • Amazon Sales Tracking
        • Amazon Accounting Automation
        • Amazon Workflow Management

For more information regarding the tools above and our many other Amazon operations tools, get in touch with us today. 

Related: Ultimate tips for Selling Brands on Amazon

How Can You Limit Your Costs?

Want to limit your cost? For starters, you can limit your initial production costs and track sales to determine how much you should really be producing. 

Finally, you’ll definitely save money if you take advantage of intuitive sales tracking and automation. From product research to inventory forecasting, you’ll save a ton of money if you optimize your brand by using innovative software solutions. If your brand is struggling with Amazon inventory forecasting and sales tracking, call us today and get control of your Amazon store. 

What Does It Cost to Sell on Amazon?

Question: What does it cost to sell on Amazon? To tell you the truth, it depends on what you’re selling, how much you’re selling,  how quickly you’re selling, and the competition of your products. 

Amazon is a jungle full of brands and resellers constantly competing to outsell one another. It is crucial for brands to understand this and have the proper tools to set them up for success. Get in touch with us today to see how your brand can thrive with the use of our Amazon management tools. May the best brand win. 

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

Take the next step!

A digital Infrastructure that allows retail brands to streamline operations on marketplaces like amazon.com.

More Posts

Subscribe To Us

Be the first to get the newest posts from our founder about the online retail marketplace.

© 2019 ASDALINC. All Rights Reserved.