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Amazon as an ideal market and how to get started with


it

Table of Contents

Introduction .................................................................... 3
Why Amazon? ................................................................. 6
How to enter Amazon trading? ......................................... 10
Setting up an account..................................................... 13
Types of profiles ............................................................ 21
Putting products on the market ........................................ 23
Shipping options in trade over Amazon ............................. 27
Fulfilment by Amazon (FBA) ............................................ 29
Financial transactions on Amazon ..................................... 33
Creating your web store using the Amazon Webstore
application .................................................................... 37
Advertising on Amazon ................................................... 39
Conclusion .................................................................... 40

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Introduction

Many people would definitely like to try their luck on the


market since they do have some great ideas and some really
neat products, but the access to the regular market is pretty
much limited because of the big companies have taken almost
everything.

Even if you get a great opportunity to buy some really neat


products at a very low price, the big retailers will be all over
you and in the matter of days you will be put out of business
and probably forced to sell your goods at the price that is not
profitable at all.

This all raises the question of possibility of such endeavours


and most of the people are completely discouraged by the odds
they are facing at the very beginning. Naturally, this causes
many of the m to simply give up and try their fortunes in
regular jobs instead in retailer entrepreneurship.

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Still, there is something that can be done on the issue and
many people managed to success in their plans using some
unconventional methods. First of all, it is important to know
that there can be no or little success if you base your
operations on regular methods. Most of those regular methods
mean that you will have to make a huge investment in
marketing and advertising and most of the people simply can’t
afford that.

The second troubling thing is the competition. Modern market


is full of sharks who are not allowing others to come in to their
territory. Simply said, even if you manage to collect funds
necessary for the proper start of your operations, there will be
some problems with the competition as they will lower their
prices and invest even more in advertising campaigns just to
prevent you from getting on the market. Although that is a
pretty much of investment for them, they can afford it and it
costs them less than to allow you to get your share of the profit
on a regular basis.

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The only way to prevent this would be making a set of
regulations that force everybody to include in a fair
competition, but that is almost impossible to achieve. Instead
of that, you should focus on methods which are free for all and
pretty much impossible to put under control by big retailers.

The internet is just ideal environment for such operations since


it levels the odds for most of the people. Naturally, even here
the big business can allow huge and expensive marketing
campaigns and you can’t expect making a huge breakthrough
without some kind of help. The ideal solution would be to join

with a retailer who has a huge market already and who is


interested in sharing that market with you for a certain
percentage of your revenue.

Normally, no company would accept these terms if they are in


the same line of business and the only choice you have is to
use some of the websites made exclusively for the small
retailers and their operations. Luckily, some years ago Amazon
started operating and nowadays this web company has a huge

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share of internet market and they are more than willing to give
you the chance to succeed.

It is a web system exclusively designed to allow small retailers


to compete with big business. It reduces the costs to the
minimum and allows the trade with minimal or no investments
at all.

Of course, there are some rules that need to be followed and


the procedure is quite strict but it allows anybody to become
successful in trade even without having all of the features of
the regular business. Also, all those small retailers connected in
one huge system are more than capable of tackling the big
business and they can finally be very competitive.

Even better, since the expenses are completely reduced, the


products offered through the Amazon are usually cheaper than
when they are sold through conventional channels and that
made Amazon pretty popular. It makes a traffic measured in
billions nowadays and it is definitely the place you would like to
try your skills and fortunes.

Why Amazon?

As we have already said, it is almost impossible for a small


retailer to break in to the market and Amazon is offering that
opportunity. It doesn’t come for free, but besides initial
expenses for registering it doesn’t require you to put any more
money in to it.

This allows you to start even if you don’t have a lot of money
to invest in the whole endeavour. On the other side, their

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terms prevent big retailers to enter the market through their
channels since it is quite unprofitable for them. They have an
option of investing in their own campaigns and it shows much
better results in these terms.

This allows you to be pretty free of the big competition in the


certain branch you are interested in and this is exactly the
thing you were looking for in the beginning. The only
competition here is other small retailers and the Amazon itself.
They do use data acquired through the trade and use those
data to make their own stocks if certain product is well
established on the market. Naturally, this is a bit of a problem
if you look strictly to the direct effects but in fact it is not such
a big issue. Namely, if you managed to hit the golden vein on
the Amazon and if you have managed to make a lot of profit, it
will be possible that you simply pass on the next level and try
taking your own part of the market.

Since you are pretty much limited in interests and intentions, it


will be a lot easier to focus on that and compete with any
business in the world. Amazon on the other hand is pretty

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much focused only on trade and they are not too interested in
specializing in any direction except the pure trade.

Of course, some of the top items will be considered as


important and that will make even Amazon to focus on them,
but in that case the amount of money connected to the trade of
that item is so huge that there will be a share for anyone who
takes the business seriously.

So, basically this is not an issue that should trouble you. The
Amazon trade does have its limitations but it is ideal as a
starting point as it carries a lot less risks than the conventional
trade.

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One of the most important things is that they won’t charge you
some ridiculously high amounts of money in order to let you
take a part in their market. They are pretty much based on
interests made through your sales and the data they acquire
through
your trade.
Also, since
they are the
whole
system oiled
by a huge
amount of
money and
experience,
it is pretty
certain that
you won’t be
exposed to
the market
fluctuations
which
happen in the regular line of business.

Amazon also offers a complete service concerning shipments


across the globe and that is something that is really important
too. Numerous regulations exist when it comes to the
international trade and the procedure in normal circumstances
demands a whole team of experts in the field if you wish to do

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anything properly. Amazon has its own ways and within
Amazon FBA you can pretty much do all the things that need to
be done without actually getting involved in the whole process.

Furthermore, there is no need to register a retailer company


and pay all sorts of taxes that are connected with the
entrepreneurship. You have the Amazon fees, shipment fees
and other expenses connected to the very trade through
Amazon, but there is nothing more outside it. As you pay these
expenses only if you have sold an item, it is pretty clear that
there will be no need for upfront investments that can literally
destroy your business attempt before it started.

Finally, the categories of items sold on Amazon are expanding


almost daily and it becomes a starting point for search to many
people. This guarantees that your product will be seen and sold
if it is fresh and the price is good.

How to enter Amazon trading?

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As this is one of the largest e-commerce websites, it is pretty

natural that they will need certain information about people


who wish to use their marketplace for selling their items. Still,
the threshold for entering Amazon is not set too high and you
can easily organize the account setup. It takes only few hours
to start selling there but they will have to maintain a certain
level of control.

This is regulated by a pretty strict business policy and it can be


more than tricky if you choose to play outside the rules. There
are two reasons for this strict approach and both of them
pretty much justify the legal means they are ready to use.

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The first reason is the reputation Amazon has. Simply, any kind
of shady operation is strictly prohibited as they are protecting
both sellers and customers. It is very important to maintain
that level of confidence in them since this is one of key reasons
why they are so successful.

The second reason is a bit blunter and it concerns the


protection of their investment. To be more precise, they will
not allow you to get in to direct contact with the client found
over Amazon as it may result in skipping the whole process and
transferring on to direct trade. Naturally, this would benefit the
customer as the price would be lower but it automatically
means that the Amazon would be excluded from the whole deal
and that is not something any e-commerce website would allow
by their free will.

So, these two issues are the most important to remember as it


could lead to all sorts of trouble. Although this sounds a bit
bad, it is a good thing in fact. Amazon with its system and all
sorts of protection mechanisms makes both sellers and buyers
feel completely safe and this is a very important feature in the
modern world which is not the safest place imaginable.

All in all it is pretty clear that all of these precautions are


necessary and more than handy in setting up the right
environment for relaxed and safe trade and that is the most
important thing if you wish to be successful.

To enter this world is, as we already said, pretty easy and it


requires only few moments of your time, an idea what to sell

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and actual goods that could be sold. The following chapters will
explain to the detail how this is achieved and you will get to
see how to set up a profile, which options to take and how to
handle all the things connected to Amazon trade.

Setting up an account

First thing that needs to be done is to set up an account on


Amazon. This is the command post of your further operations
and it is very important to approach this issue with care and
caution as it pretty much defines how successful you will be.
The items you are offering are the basic thing but setting up
the account in right way will boost your trade and your
revenue.

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The first thing that you will face when you enter the Amazon
website is to find were to set up an account. It is easy to find
the „Start selling“ link on the left top part of the Amazon
homepage and after you press that link you will be given a
choice either to enter your password if you are already using it
or to create new account by adding your mail address.

Once you enter the mail address, the registration process will
lead you to the setup page where you will have to go through 4
steps in order to finish the account registration.

Creating the account - The first step is the most important one.
You have to enter your business name and the name of your
Amazon account. Giving valid information is very important
since the data will be available to IRS and other services
watching over the trade in the US. The situation is the same in
Canada, Great Britain and the states of Euro zone so it is very
important to give accurate information if you wish to be
allowed to trade at all. This first step also o requires re-
entering the mail address and picking the password for your
Amazon account. Take notice that as with all of the accounts
connected with your credit cards it is not a bad idea to show
some creativity and devise a password that won’t be easily
figured out. Finally, it requires entering a valid phone number
at which you can be reached for account verification.

Also, be pretty much prepared for entering your valid tax


identity number as this is the issue that will be checked and

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any abuse is strictly prohibited by terms of agreement Amazon
provides.

The last and also mandatory information you will require in this
step is a valid internationally chargeable credit card. For
countries outside the North America and European Union there
will be some additional information needed.

When you are finally done with these steps, you need to pass
to the next step. It helps you set up the account that will look
and act properly and this is one of the crucial things if you
thrive to succeed.

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Making an appealing account – This is mainly done to show to
potential buyers that you are a responsible person who actually
wishes the whole endeavour to succeed. After entering the
basic data for account creation you should choose the „screen
name“. This is the name that will appear to the potential
buyers and if you are operating on Amazon as a registered
retailer in your country, you can use the name of your
company. If not, you can simply make up a good name that
will be easy to remember. Some people don’t have the habit of
bookmarking the pages and adding the contacts in their own
lists and if your name is catchy, it will help them remember it
easier and that can result in repeated transaction if they are
happy with the product.

Also, this part should include adding a mail address for


customer support, an active phone number on which the
buyers can reach you if there are any issues and the short
disclaimer concerning ordinary issues that might occur. Always
remember that the Amazon is backing your operations and
their authority and reputation are precious to them and they
will do anything needed to maintain that reputation. Simply
said, any attempt of abuse or misuse will have its
repercussions and it is best to play fair.

People also like knowing where they are buying stuff from so
including the exact location is pretty much a good idea. It is
also very useful in terms of calculating the shipping costs since
the buyers will have the option to double check the fee
required for that.

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Phone verification – This step is pretty important since it allows
Amazon to identify you and to know that you could be reached.
Also, the phone verification is one additional great way for
protecting your account. It is easy to retain the control over it
if anything happens if you have the phone number used for the
verification.

Registration Review – This is the last step in creating an


account. You will get to see the information you have entered,
double check the facts and continue to submitting the account
request. Read everything carefully since many of the
information are pretty important and any error can put you

back to the beginning.

Setting up the profile in a right way will pay back pretty nicely
and you should not hesitate to make it look perfect if possible.

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Simply, do as much as possible to advertise using information
put in to it as it is free and many buyers will look carefully from
whom they are about to order the product they want.

Every good profile should contain several information are


essential for creating a good relationship with potential clients.

1- Privacy policy section – This is pretty important since it


adds to the seriousness of the whole endeavour and it
also clearly declares that you fully understand what you
are trying to do.

2- Logo – Every successful firm has a nice logo that is


catching the eye. It is not quite common that the retailers
on the Amazon have the appropriate skills for making
these but the services of making them are not too
expensive and the internet offers quite enough highly
skilled freelancers who will be more than ready to create
something interesting for you. The prices for these tasks
are pretty affordable and it shouldn’t be the factor that
prevents you from getting one. Remember that the visual
impression often sticks with people better than any name
so this logo will be kind of an alias. The best size for such
logo is some 120 pixels as this is small enough not to be
in the way yet large enough to draw the attention.

3- Return and refund section – this section is very important


since it shows that you are a serious individual or
company and that any sorts of foul play are not to be
expected from you. Also, the potential customers are

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always happy to see that there is an option of returning
the goods if they are not satisfied with them. Of course,
the terms in the refund and return policy should be well
thought and only the justified cases should be listed in
your profile.

4- Shipping information section – This section is more than


useful in several ways. First of all it is pretty easy to
notice that the people who are interested in serious
business will disclose all the information needed for a
successful transaction. Stating the prices and the time
needed for shipping your goods is more than obvious sign
that you have invested some serious effort in the whole
operation and that the chances for errors and unpredicted
situations are minimal. Also, it allows the potential client
to evaluate the whole operation with shipping costs
included and that is a decisive factor. No one likes hidden
expenses and showing all of that information will persuade
clients that you are an honest person who has nothing to
hide. This greatly improves client relations segment and

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you can expect only positive reactions from this.

5- About us section – This is a great place to advertise. You


can freely give any relevant information that will show
how serious and reliable you are as this will be pretty
appealing to the potential buyers looking at your profile.
Also, no serious company or individual stays hidden.
Giving them a short story which explains who you are and
what you are after is always a good thing that will relax
them and give a personal dimension to the retailer –
customer relationship.

After all of this is done, you can consider your profile all set up
and the trading may begin. There are two options concerning
profiles and both of them are pretty handy and useful. Still, it
is important to determine which type of the profile will serve
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your needs best since one can be inadequate and the other one
can be too expensive and with surplus features that you might
actually not need at all.

Types of profiles

There are only two different options for two different categories
of accounts. The first one is completely free and based upon
the number of sales you make during one month and the other
one costs money ($39.99 per month) but it offers unlimited
trade. The only thing needed to be done is to determine which
one will be ideal for your operations. If you are not aiming to
anything special and if you wish to sell very limited amount of
items, there is no need to pay extra money. Still, there are
some features that are not included in that free account and
you can sell goods only from limited categories.

Individual selling plan – This plan is meant for those who plan
to sell few than 40 items a month. It will cost you 99 cents per
order and all of the regular fees will be also charged. The
limitation to these 40 items is pretty nasty if you wish to sell
more, but on the other hand, you never know how good the
things will go before you start actually selling things. This plan
includes option for Amazon FBA if you decide to use it. It can
be pretty handy for the beginners and even the experienced
Amazon retailers are pretty often using it as well. Simply, it
saves you a lot of time and it is not a small thing. If you add
that it is seldom more expensive than the conventional mailing,
this comes just as a jackpot. Not all of the categories are

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available in this plan and you should take in to consideration
what kind of products you wish to sell and do they fit in one of
the available categories.

Professional selling plan – This is a plan that is much more


adapted to serious retailers as it includes all of the benefits
available on Amazon. It has a FBA option for easy and problem
free shipping and there are no limitations concerning
categories. Everything that can be done on Amazon is included
in this plan and there also are no limitations concerning the
amount of trade. You can sell as many items as you wish per
month but all of the standard fees are collected as with the first
plan. The only difference is that you are not charged those 99
cents per sale, but instead you pay a fixed Amazon
membership of $39.99 per month.

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All in all, these two plans offer everything you might need and
the only thing needed is to evaluate your trade potential and
pick the right plan according to your needs. Luckily, the errors
can be easily fixed since you can easily switch from one plan to
another in any time. So, basically it can’t be too costly mistake
even if you make it. In the worst case scenario, you will spend
40 dollars more than it is necessary, and that is far from
something that can ruin your operations.

After all of this is done you need to take care of putting your
products on the market and this is the most important step. It
is not anything complicated but if you wish to be successful you
have to take care of various issues. If done and evaluated
properly, this can bring you all the success you were hoping to
achieve.

Putting products on the market

Every product you wish to sell on Amazon ahs to be listed on


your profile. Doing this is a bit tricky but it is definitely not
something that can’t be done properly. You simply have to
follow few simple rules and to use several simple tools and
your goods will be offered to the millions of potential buyers.

UPC code – This is a code that needs to be entered in your


product description. Without it, the product can’t be listed and
there is nothing that could be done about it. Still, all of the
legally marketed products have them so this is not a problem.

SKU – This stands for a Stock Keeping Unit. It is logical that


you will have to declare how much goods for sale you have on

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the stock so there could be no situations when more goods
than you have had been ordered.

Product name – Naturally, whatever you are selling it has a


name under it was marketed. This is needed so the potential
customers can know what they are actually buying.

Product description – This is a place where you can let your


advertising skills do a bit of a trick. It is not to be written as an
advertisement but it should simply explain what is that you are
selling. Including main features, dimensions, weight and design
should do the trick. Naturally, as any other skilful merchant
you can always turn a blind eye to the bad aspects of the
product. This will do the trick on a short run and you might
actually sell something that wasn’t selling too well, but if you
plan to persist on Amazon trade, this can be a bit problematic
since customers who are not completely satisfied are not too
likely to come back.

Product specification – This is practically the same thing but it


has to be in a form of a list and without any fluff. Simply, you
should declare all of the specifications concerning dimensions,
weight, performance and other relevant things.

Product image – This is required and easily done. You can take
a picture of it or you can download an image from the internet
and that will certainly do the trick. In any case, it is always nice
to see what you are about to buy and from the customer’s
perspective it is a great thing to have that chance.

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Related keywords – In order to classify it and make it easy to
find, the Amazon needs certain key words related to the
product you are selling. If picked carefully they can increase
your visibility pretty much and that will result in more sales.
Most of the customers don’t list all the offers but focus on
several that are easiest to find and that is a chance to make
some real success.

Category – You need to specify a category on Amazon in which


the product will be sold. This needs to be accurate since there
is no point selling the product in the wrong category. It is not
too likely that anyone will buy a book when searching for a
shampoo so make sure to put the right category.

When all of this is done you can submit your product to sale
and wait for the customers. Depending on how good is your

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offer and how you have presented it, the success can be quite
huge. This means that these steps are very important and you
can’t just run through them. A proper tending to them will be
returning quite quickly and the time you invest in setting up a
profile and listing your products won’t be the wasted one.

To submit the product you can use several tools. There are
some pretty handy free desktop based tools for submitting the
offers and you can also find versions of them on the internet.
These internet based tools are easier to handle since there is
no need for installation or anything but you must be aware that
there is also an issue with the web connection that can make
some problems. It is always safer to do it from your desktop
since it ensures that the data won’t be lost. There is hardly a
more irritating thing than doing the same job several times and
take that in to consideration when picking the way to submit
your products.

If you are an advanced internet user you can also submit the
data in XML format but most of the people are not proficient in
using this way. There is also an option of sending the required
data in text format.

No matter which way you choose, you will have to wait several
hours until the Amazon staff review your offer and put it on the
market. This is not something that should cause you any
problems if you have done all the steps properly but it is
necessary because there are always people trying to profit in
illegal way. When all of this is done and your product is finally

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listed, there is nothing more for you to do except to trade.
Every new item has to be submitted in the same way and the
account one created can be used for indefinite number of
transactions.

Now, when all of this is clear and when you are finally done
with this part, there is still an issue of shipping the goods and
collecting the money after the transaction is finished. This is
also a pretty easy task but if you decide to do it all by yourself
it can be pretty troubling and time consuming. So, let us see
how the things are standing with this segment of the trade
over Amazon.

Shipping options in trade over Amazon

Shipping is always a tricky issue when it comes to overseas


trade. Even when there is no need to send goods abroad it
requires finding the best possible option for cheap mailing,
especially if the items you sold carry a certain weight. It can
often draw the expenses higher than the value of the goods
you are selling and that can be a bit of a problem.

Still, the options are numerous. You can always do a bit of a


research and determine which way is the best for your
business. Some countries have companies that are doing the
shipping at more than affordable prices and that is something
just perfect to boost your trade. If the shipping costs are low
that will pretty much lower the cost of the goods you are
selling and it will attract more customers.

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On the other hand, this approach requires a lot of thought and
you must carefully calculate the weight and the size of your
shipment since all the discrepancies causing increased
expenses will affect the profitability of your trade. In some
cases the costs are increased very much if the prescribed
measurements are calculated in a wrong way. This can not only
lower your profit, but in some cases it can cause you to lose
money on every sale you make. You will agree that this is
something that can’t be tolerated since it will simply kill off
your job.

This is why it is needed to calculate well and in order to achieve


the maximum efficiency you should share the data about
shipping costs with the clients. We have already explained
where this should be done and in what way and you should
follow the mentioned procedure when setting up a profile and
marketing the product you wish to sell as this will provide
potential customers with all the necessary data.

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There is also an option of joining forces with Amazon on this
matter and it will prove to be more than handy for most of the
users. Simply, the FBA service Amazon offers covers simply
everything concerning shipping and storing the items you wish
to sell. It is not a small thing to be relieved of all problems
connected to the shipping and storage issues as this can both
increase the expenses and be pretty much time consuming.
Also, it is not prone to mistakes you could make since the
Amazon experts are handling the issue and they are covering
everything connected to their operations.

In many aspects this can help any retailer, and the new ones
are pretty much relieved from all of the stress and fuss
connected to these troubling issues. We will here say a few
words on FBA services and what they include.

Fulfilment by Amazon (FBA)

FBA service is something the most retailers will find to be


incredibly handy and useful. Simply speaking it takes all of the
problems off from your shoulders and you can concentrate on
posting the articles and advertising. There is no need to spend
a lot of money and a lot of time on the operations concerning
shipping and keeping your items.

FBA allows you to store your goods in an Amazon warehouse


and they will handle it from there. Naturally, there are lots of
those storages across the globe and you would be more than
capable of picking one that is close to your residence. It will
cost you some money to transfer your goods there, but it won’t

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consume even a second more of your time once it is deposited.
All of the handling will be performed by Amazon employees
from that point of time and it will relieve you from a pretty
burdening situation.

This service includes simply everything. Once you have sold the
item the Amazon will identify its location in the storage and
issue it to the customer. Of course, you don’t need to look for
cheap options for shipping since this can hardly be done for
less money than the Amazon offers. They include even package
for your shipment and there can be no issues with it. Also, they
are responsible for the shipment and since some valuable items
can simply disappear when shipped in standard ways, this is
something that shouldn’t be ignored. Going through the whole
process of chasing the thieves and the company that lost your
goods is never a pleasant thing and it seldom provides any
results. So, this greatly adds to the safety and you should
know that this is the cheapest option if you calculate the risk.

Also, the FBA program allows certain other benefits that can’t
be achieved through any other channel. When you are using
these services, you are eligible for free super saver shipping
program and Amazon Prime. It is quite clear that this is
something really great. If you are selling a lot of products over
Amazon, it will allow you to get shipments virtually free in
certain cases and that is something that can’t be obtained in
any other way.

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Since the products eligible for free shipping is listed without the
shipping price, it often attracts a lot of additional clients and it
proves to be more than cost effective in most of the cases.
Naturally, everybody would like to get the product at the
lowest price possible and that is not to be ignored. People will
often decide to take the item that is basically more expensive if
they get the free shipment and that is a thing that should be
taken in to consideration when deciding to use FBA.

The customer support and returning issues are also regulated


by Amazon if you decide to use FBA services and that is also a
very important aspect of the whole deal. It allows you to feel
pretty relaxed and to focus only on the important things.
Getting someone else to handle all of these things can be
pretty costly and there is no better service of this kind for
lower price anywhere in the world. So, you should consider

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using FBA no matter if you are a newbie or an experienced
retailer.

Still, it is important to think of the expenses and this will prove


to be the right solution in cases when you are operating with a
lot of items. It can simply reduce all of the following expenses
but if you have only few items it can prove to be more costly.

The FBA service doesn’t come for free and there are some fees
you will have to pay upon submitting the goods to their
storage. These fees include everything from storing your goods
to manipulating with them and the customer support and
return policy issues are also included in the package.

It has been noted that FBA users experienced the average rise
in sales up to 64% and this is quite easy to explain. Namely,
the Amazon tries to keep their best customers and they will do
everything in their power to make their trade profitable.
Amongst many other things, there is also an issue of featuring
your products under FBA services in appropriate categories.

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It can be considered as the kind of free advertising and that is
not a small thing. Getting your products to be featured in
searches through Amazon usually cost a lot of money and this
comes with no additional expenses whatsoever. It is a pretty
unique feature that can be a true gold mine if you use it
correctly.

Many other advantages are included in FBA package and it is


no wonder that more and more retailers operating through
Amazon decide to apply for it.

The only limitation may be the fact that you don’t have that
option in your country, but in most of the western countries
this service is available and the centres are spread in several
cities so it is pretty easy to complete the whole operation.

This concludes the shipping issues and brings us to the final


step in any transaction. Namely, once the product has been
sold, there is an issue of charging it. We will here explain how
it works on Amazon and why this is a failsafe system that
guarantees that you will be getting your money.

Financial transactions on Amazon

As we have already mentioned in the account setup section,


you will be prompt for your valid bank account connected to
the credit card valid for international purchases. This is needed
for two reasons. The first one is so you could pay the Amazon
membership fees and it is pretty obvious why it is required in
this case. When you have a business selling plan, the Amazon

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deducts the monthly fee from your account every month and
that goes pretty much automatically.

On the other hand, you need the means to receive the money
made through the trade and that is even more important. The
whole system provided by Amazon is completely fail-safe and it
allows you to execute your financial transactions without any
kind of risk.

The process is rather simple and it is based on a well devised


system that doesn’t allow any kind of shady operations. Once
the customer decides to buy a product you have listed the
money is deducted from his account and deposited at Amazon.
This is when you sip the order and once it reaches the client
the transaction is finalized and the Amazon releases funds on
your account. This means that there will be no scammers who
are after the fraud through this system. Also it is pretty
impossible for anyone to steal through these channels since the
personal data connected to the credit card are not available to
anyone.

All in all, from this aspect you can be completely calm since no
one is foolish enough to order and pay the product they don’t
really want. Naturally, there are some exceptions and they are
all connected to the return policy you declare. Be careful as
these issues are also regulated by law in most of the countries
and selling faulty equipment and refusing the return will be
under the pain of law. Amazon marketplace is made for the

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decent people and any kind of irregularity will soon be forced
out if appears.

To avoid all of this, in case you are a big retailer you could
always use the FBA service as it will pretty much relieve you
from bothering with return policy and customer support issues.
It cost some extra money but in the end it provides pretty nice
results and you should not hesitate to use FBA if there are valid
grounds for it.

Also, take in consideration that all of the fees and expenses will
be deducted upon the release of the funds and you should
calculate them all pretty well before starting with your
operations.

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When all of the aspects of this way of trade are considered it is

clear that it is something that allows the maximum safety and


relieves you from a lot of trouble. Keep in mind that retailers
operating on their own are always prone to the scams since
avoiding frauds and any other kind of foul play requires a lot of
knowledge, manpower and money. This brings us back to the
very beginning of this book and the issues new retailers have
with the competition.

It is far from an ideal option since the Amazon won’t do all of


this for free, but it is the best possible solution available. In
case you have a good offer it will be worthwhile. At least you
will be hiring their men to do the job for you and make your
transactions safe and reliable. It is something most of the
retailers simply can’t afford so the share of your profit taken by
Amazon and the membership paid to them should be
considered as a rental of their staff.

This puts a pretty different perspective on the whole issue and


it is something that can’t be bought for such a small price
anywhere else.

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This would be about everything about the basics on the
Amazon trade. Still, it is far from all the services they offer.
There are also some very neat options they offer when it
comes to the advertising and they could boost your own online
retail business if you are operating in this way as well. Most of
the retailers do have their own web stores as well and
connecting them with Amazon can be pretty helpful. We will
explain here some of the options you have in this segment.

Creating your web store using the Amazon Webstore


application

If you wish to run a standalone e-commerce site together with


the trade you already make on the Amazon, there is a solution
that is very powerful and very useful. Instead of using services
from the IT experts or trying to make an e-commerce site on
your own you can use the Amazon Webstorte application for
that purpose. There are several benefits to this approach and
they are all pretty essential for anyone who wishes to be
successful in this line of business.

First of all, the interface for using this tool is very user friendly
and you will easily find your way around. There are also some
tutorials available and that will be the solution for any issue
you might have with this tool.

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The second benefit is that this Amazon hosted web server is a
part of the Amazon cloud and it further implies that all of the
security measures will be implemented on your website as well.
It is not an insignificant issue since the slightest breach of
security can mean a lot of trouble both for you and your
clients. Since these servers are maintained by the Amazon IT
team, the level of security will be the same as with the Amazon
itself.

The whole tool is organized very well and the modules


implemented in it allow you to control all of the processes from
one interface. So, there will be no need for a huge IT support
in order to make it operational and that is also something to be
considered. Expenses caused by the IT expert’s involvement
can be more than substantial.

It is possible to list the items from the Amazon on your website


to increase its attractiveness and finally, the whole tool comes
with a pretty well on page SEO optimization and that is also a
pretty expensive on a free market.

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All in all, this approach can be used as a way to make some
extra money and expand your business in off-Amazon
environment using all of the benefits they provide. You can also
use FBA and other premium services of Amazon for trade on
your website and that is ideal for all new retailers who wish to
try their fortunes as independent retailers.

As the last one, there is an option of advertising your e-


commerce website on Amazon. We will here explain how it
works and why it should be considered at all.

Advertising on Amazon

The paid advertisements are always a bit tricky. All of the big
internet companies offer this solution and it is pretty much a
crowded market. Simply, people who wish to make an impact
can’t rely only on a natural rank provided by the SEO
optimization of their websites and they need to pay to get the
attention of the potential customers.

Now, this comes pretty same in all of the options. You have to
make a campaign with the web company selling the
advertisement space and that will cost some money every time
you add finds the way to the potential customer. Still, there is
a problem that occurs pretty often. Namely, your add is always
sent to the people searching for a keywords listed in your
campaign plan and that often simply leads to the wrong people
who are not actually looking to buy the product you wish to
sell.

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All of the search engines operate in this way but the Amazon
market has one unique feature that makes the difference.
Namely, the people searching the keywords on a web dedicated
to trade are much more likely to be interested in actually
buying the products they are searching for. It can pretty much
cut the expenses in these campaigns and Amazon ads will
prove to be pretty cost effective. This is not a small thing and it
should be considered as an option if you have the funds and
the plan to advertise in this way.

This pretty much concludes the array of services provided by


Amazon and the conclusion could be only one if all of the listed
features are taken in to consideration.

Conclusion

If we look over all of the features and options Amazon provides


it is pretty clear that they are offering services that are capable
to cover every single aspect of your online trade. The security
issues are virtually none existing, the market is huge and the
advertising options are almost endless.

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If the fact that the support and premium services include
everything concerning storing and shipping your goods, it
seems that there is no better option available anywhere else.-

Still, Amazon has also some bad sides as they will get the
intelligence data on the global retailing trends using the trade
made by other people on their network, but this is to be
expected and is nothing to worry about too much. Simply,
there is no free lunch and something needs to be sacrificed in
order to succeed. The real issue is that most of the people
simply don’t have the money to start their own e-commerce
site and to be successful in trading online. Also, all the
regulations and security issues can be bad enough to
discourage anyone from even trying their luck. Finally, the
competition is so stiff that only few manage to break through
and the bulk of the independent web trade endeavours fail
pretty quickly.

This is why Amazon is so neat. They are pretty much willing to


share their resources with you and that will result in a fair
chance for any entrepreneur. Together with the resources
come the well known name and a reputation that is unmatched
in this line of business so the deal is not sour at all. Most of the
rookies will find it quite rewarding and only the endeavours
with a bad starting idea are doomed to fail in this environment.
It also provides the way to earn money and acquire the
experience needed for starting your independent business and
it would be wise to take it as a first step even if you are up to
something more.

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Finally, there are some people who simply don’t have many
items to sell. This group will find Amazon more than handy
since it is providing all the features they need and their goods
can be sold quickly and easily with no need to bother with
anything complicated. As it offers virtually free account setup it
is a good idea to try it out if you have an idea. This will allow
you to see how the market reacts and can prevent significant
money losses based on bad ideas and bad purchases that can’t
make any profit.

All in all, the Amazon market is there and it is free to join.


Anybody can make success there and all of the people stand
the same chances and that is what Amazon is all about.

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