How to Sell Your Retail Products on Amazon | Fora Financial Blog
How to Sell Your Retail Products on Amazon
June 28, 2018

How to Sell Your Retail Products on Amazon

Selling items on Amazon is a great way for you to reach tens of thousands of potential new customers, enabling you to significantly boost your revenue and profits. Still, you’ll have many competitors on Amazon, so before starting to sell products on the website, it’s very important to learn how to succeed on the gigantic e-commerce platform.

Points of Differentiation

If you’re a retailer who wants to start selling products on Amazon, differentiation is crucial.

Specifically, you should ensure that your products have at least one attribute which makes them superior to your competition. The best way to determine these attributes is to examine the customer reviews of products sold by your competitors. Within the reviews, you should look for one or more desire or need that’s frequently not being met by your competitors.

For example, let’s say you’re selling affordable, waterproof watches, and you find that many of the customer reviews of affordable watches on Amazon complain that the watches aren’t waterproof. In that situation, you should emphasize the fact that your watches are waterproof, or add more waterproof options.

Points of differentiation should be conveyed through the title and the description of the products you sell on Amazon. Continuing with our hypothetical watch example, the word “waterproof” should definitely be included in the title and in the description of the watches you’re selling on Amazon.

Pricing Strategies

When it comes to pricing on Amazon, you can adopt one of two strategies. You can start out by charging low prices relative to your competitors in order to gain market share on Amazon and eventually raise your prices as you gain more customers. Or, to establish your merchandise as high value products, you can charge prices that are high in comparison to those of your competitors.

Getting Started on Amazon

To get started on Amazon, you should visit this page. Then, using this tool, you can calculate the revenue and profits you’ll generate by selling products on Amazon.

Fulfillment by Amazon

Research shows that many retailers who’re successful on Amazon use Amazon’s storing, shipping and handling service, called Fulfillment by Amazon, or FBA, reported. In addition, it can be difficult for you to compete on the e-commerce website without using FBA. You can sign up for Amazon’s FBA service here.

With FBA, your products will be stored at one or more Amazon warehouses. Amazon will handle all the packing and shipping tasks, and it also deals with all returns requested by customers. Finally, only products sold through FBA are eligible for the free shipping that members of Amazon’s Prime program receive. More than 100 million consumers are Prime members, Amazon reported in April that more than 100 million consumers are Prime members, so it’s important that you target this demographic.

Rules and Restrictions

Although there are major benefits to selling your retail products on Amazon, there are rules that you’ll need to follow. For example, Amazon holds its vendors to customer service standards. If your company doesn’t provide accurate product descriptions, is unable to fulfill orders on-time, or ignores customer inquiries, your business can be suspended from selling on Amazon.

It’s also important to note that Amazon charges a 15 percent commission on most products. This is standard when selling through a third-party service, but if you can’t afford to lose 15 percent of the sale, you might be better off selling through your business’s independent website.

In terms of marketing, Amazon forbids sellers from marketing ways for customers to purchase products outside of the platform. Again, this could result in getting suspended from selling on Amazon.


To successfully take advantage of Amazon, you must effectively differentiate your products from competitors’ offerings. Selling on the e-commerce giant enables retailers to reach many potential new customers, and utilizing FBA increases the likelihood that you’ll make more sales through the platform.
Has your retail business utilized Amazon? Tell us about your experience in the comment section below.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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