Setting up your e-commerce website and developing a long term income in a market that is set for huge future growth is a part of a good business plan. There are many e-commerce platforms on which to list your products such as eBay, Shopify, eCrater Etsy and Amazon. This subject material takes you from the very basic information you need to do when getting started in any business and unfolds into sourcing, shipping branding to selling your products successfully on Amazon and so much more.
Wikipedia says E-commerce businesses may employ some or all of the following:
- Online shopping web sites for retail sales direct to consumers
- Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales
- Business-to-business buying and selling
- Gathering and using demographic data through web contacts and social media
- Business-to-business (B2B) electronic data interchange
- Marketing to prospective and established customers by e-mail or fax (for example, with newsletters)
- Engaging in retail for launching new products and services
- Online financial exchanges for currency exchanges or trading purposes
Amazon's As An E-Commerce Platform
A few years ago, (okay, fine, over two decades ago), if you wanted
to buy a book, you would have to go to the local bookstore and be forced to
choose from the limited number on the shelves. Or, how many places did you
often visit to get a pair of shoes, or a video game, or pretty much anything?
The Internet wave has expanded into a rolling tide of opportunities that has
made shopping, and selling, a whole lot easier. Say hello to Amazon, one of the
world’s largest online marketplaces for almost anything.
It was established on July 5th, 1994, and is the biggest
retail company in the world. Its main purpose today is providing retailers and
consumers with a virtual marketplace in which to buy and sell products and
services. At the end of 2015, an American multinational e-commerce company
announced Amazon had over 304 million active customer accounts. That’s 304
million people who shop and sell with their fingertips!
Of this total the site has in excess of 171.83 million unique monthly
visitors, over 300,000 employees. Amazon boasts a 20% year-over-year revenue
growth (which continues to grow), and a $45.73 billion brand value. Now who
wouldn’t want a slice of that pie? With so many credit card numbers floating
through cyberspace, and an extraordinary ease of convenience (all you need is
the internet), it’s not hard to fathom how a smart investor, (maybe some not so
smart ones too), can capitalize on this. It’s that easy!
The Amazon creators and owners have designed a platform that's
user friendly- guided to offering a very professional listing page to their
sellers and buyers. Along with the company's return policies and general
customer service (which is top of the line, by the way), they have made it easy
for people to gravitate towards bringing their business to them, and their
money too. What’s even better is that conducting business on Amazon isn’t just
you interacting with a single individual, like at a mom and pop store. There
are several other entities that use the same marketplace to sell their goods
and services, but they all fall under the Amazon umbrella. That’s Amazon
protecting its users from business owners who seek to exploit customers. C.E.O. and founder Jeff Bezos quoted "If you competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering."
Forbes reported that amazon was the fastest company to ever reach $100 billion in yearly sales.
Selling on Amazon isn’t just about conforming to what
already exists; individuals, and companies, can introduce either new or
existing products to the site. Amazon also facilitates daily exposure to buyers,
especially for those whose main priority is to shop-the majority of visitors to
the site do so with the intention to purchase. Customers who visit the site
often benefit from Amazon’s aggressive advertising campaigns, creating personal
pages of recommended items based on recent viewing history, making it easier to
identify those items that are of interest.
It’s not just business. It’s Amazon, and with so many
possibilities, but without the right knowledge or exposure, then opportunities
can be laid to waste. Your future as an investor, seller or buyer is only a few
clicks away. Let’s show you how!
Getting Started
Now, I know I just said it’s easy to do business on Amazon, but it
really isn’t as simple as going onto the website and tapping a button that says
‘start selling now’, or something like that. In business, it is of utmost
importance to know the ins and outs before engaging, so as not only to maximize
your returns and to benefit most from what the business has to offer, but also
to become knowledgeable about compliance and state laws, as well as site rules.
When considering doing a business, or having a business account on
Amazon each individual must have a business EIN number, this can be obtained by
registering with Sunbiz.org. After you have received your EIN number, a Tax ID
must be obtained, and that is accessible through any lawyer of your choosing.
Next, a business account must be opened, and a product or service niche
assigned.
Now, you can go right ahead after this to selling your products
and services, and you might make a dollar or two. But the best way to sell your
products and services is through branding and advertising. It is recommended
that you create a logo that will help brand your company and your products.
Then, you can start building your website.
Even if you have no images of your products, worded content (brief
product descriptions) is a great way to start. On average, it will take Google
three months to start recognizing your site, so the sooner you start, the
better. By the time you get to the images (which hopefully isn’t a long time),
you would have made a dent in the advertising world. Now, if you haven’t
already done so, you need to acquire inventory, so now comes another big step:
reaching out to suppliers.
Selecting Products
Sounds overwhelming, right? You thought it would be as easy as
pushing a button. Well, all startups require time and patience, and once you
get through this part, then the rest is smooth sailing. Or at least having a
knowledgeable captain will make it easier. Now, let’s get to selecting your
products and building your inventory, but in order to do so, there are some
things you have to take into consideration.
Will you be selling or buying products made in the U.S.A.? How
about a product you are passionate about-something for the hair or skin? You
could still use amazon's resources to determine if there is a high demand for
your product. If your product is new and unique it may take some time to catch
on, and the ride may begin a little bumpy. Or you may score big and amass
followers immediately. Whatever the case may be, it is imperative that you stay
focused and positive!
To find out what’s trending, simply start by typing,
"Amazon's top 100 sellers" into Google and watch as the list rolls
out like a scroll. Those are your competitors! But don’t be daunted by that;
remember they were once new too. But now you know this is no game-you have
entered a race that will force you to succeed or get stampeded by the other
runners. You must ensure your prices and quality are equal to or better than
theirs. The list is not simply to frighten you, though. It is actually a course
of action, especially if you don’t know what you want to sell just yet, or
where to get it.
Amazon is categorized into departments, and for each there is a
specific need. The best thing to do is search each department, or the one you
are interested in, for what products are in demand. You can just jump right in
and find your suppliers, but there is one crucial thing you must do: brand your
own products. You don’t want something generic or too much like everything else
so you don’t get noticed, especially by roaming eyes. Consumers like colorful
and attractive packaging, and noticeable brands. You can’t sell if you don’t
get noticed, and if you don’t sell, then your profits will be, well,
non-existent. So, this is an important step that affects your capacity to earn.
If, however, in your searching on Amazon, you come across items shipped and and sold by Amazon. It means they won the BUY BOX on that item. STAY AWAY! Don't forget, Amazon is also a seller with their own warehouse
stocked with inventory. It is futile to compete with their price point.
Buying Products from Other Countries
If you get to this point and decide to buy your stocks from a
country outside of the United States, it means you have already decided on a
niche product or market. While it is great to make money, doing so with those
things you love makes it a whole lot more worthwhile, considering you will also
be passionate about the business. It’s similar to having an ordinary problem
and coming up with a solution that works, so the one thing you have to be is
practical. Or look at it from this angle: if it’s a product or service that
you, or a family member or friend, would buy, or have recommended, then chances
are one thousand of the consumers on Amazon would buy it too. Remember, there
are 304 millions of accounts interacting on the site, 171 million of which are
buyers; you don’t have to hit them all. If you aim too widely you may wind up
striking air instead of goal. Find those products that have a high demand, make
them your own, and be practical.
Getting your stock from inside the United States would be much
easier, obviously. However, the world is a big place, and there are other
products available that may not be as accessible within the United States, or
are more practical obtaining overseas. But, aside from purchasing cost (which
has to be taken into account when spending in different currencies), you must
be aware of shipping and handling that varies depending on the country’s custom
laws. Also, you have to determine the most convenient way of delivering your
products, whether at home, at a business address, or to the Amazon warehouse.
Depending on the product (maybe something original) it usually
takes between 30-45 days to manufacture in China, then another 30-45 days to
travel on ship before it is cleared at customs. This waiting period, while it
allows you to take care of other pertinent business matter, it gives a good
estimation of your wait time, and will thus enable you to be more efficient in
your purchases. You will know the best time to reorder without running out of
stock, so knowing how long any product takes to ship from a particular country
is crucial to the process.
Are you considering housing products at the Amazon warehouse with
Amazon FBA? Note that you cannot just buy from China and send directly to one
of Amazon's storage facility addresses. You will need your own broker, as Amazon
will not clear goods for you. After goods have been cleared you can then make
arrangements for pick up and delivery to an Amazon warehouse. However, Amazon
has partnered with several carriers that offer better rates than the going
market rates for the same service. This is something you can take advantage of,
especially if, as a new business operator. After you have completed the
necessary steps, then your products will be listed and sold under Amazon’s
terms, and will appear with the inscription, ‘Fulfilled by Amazon.’ This can be
quite advantageous because with Amazon’s impeccable record for good customer
service, you might likely attract more customers. It’s an added security
feature you and your potential customers can benefit from. You can then advise
how deliveries are made hereafter, and to which Amazon address to mail your
products.
Bonds
It can prove costly (and it is unwise too) to enter into business
of an international nature, especially a commercial one, without a bond. A
customs surety bond is a contract that ensures specific obligations, such as the
payment of import duties, taxes, and fees will be met, and that all monies will
be paid over to the federal government.
There are different types of bonds available to choose from, such
as single entry and continuous, and you will need one to clear goods bought for
commercial use that are valued at over two thousand five hundred dollars (US$2500.00).
I highly recommend a Continuous Bond, especially if you are doing multiple
shipments within a year. It prevents you from going through the same process
every time you need to clear a shipment (single entry).
So, what is a continuous bond, you ask? According to U.S. Customs
and Border Protection, it is a bond that requires 10% of duties, taxes and fees
paid for in a 12-month period to a minimum of $50,000. They are paid by the
importer and are valid unless otherwise cancelled. Continuous bonds essentially
cover multiple transactions.
A single entry bond on the other hand is generally an amount not
less than the full shipment value, plus any duties, taxes, and fees. It is used
for a one-time importation, such as if you mostly purchase domestically, but
had to buy from another country at a particular time............
Continue Reading Learn:
What You
Need to Know: Pitfalls to Avoid
Why
Branding Is Important
Using Amazon
FBA to Your Advantage
Effective
Ways To List and Sell Your Products On Amazon
Brand
Recognition and Awareness
A Profitable Outlook
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