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How to sell products on Amazon
Find out how you can profit from one of the world’s biggest online retailers.
The Amazon Marketplace gives you a way to get your products in front of everyone shopping on Amazon, but there’s a bit that goes into this platform. This guide will take you through how to sell products on the Marketplace and what else you need to know to decide if it’s right for your business.
Because Amazon does not have a specific New Zealand site we’ll be focusing on Amazon Australia in this guide.
What's in this guide?
- How does selling on Amazon Australia work?
- Who can sell products on Amazon Australia?
- What can I sell?
- How do I price my products?
- How much will Amazon Australia charge me to sell?
- How do I organise shipping?
- How do I market my products?
- Is selling on Amazon Australia worth it?
- How do I start selling?
- How do I get paid by international buyers
- Frequently asked questions
How does selling on Amazon Australia work?
The Amazon Marketplace is a platform that allows third-party sellers to sell their products through Amazon. Sales through Amazon’s Marketplace represent 50% of all items sold on Amazon’s websites globally.
Sellers are responsible for setting their own price points, writing product descriptions and their own branding. A lot of Amazon retailer sales depend on where your item appears in product searches, so getting this right is extremely important. In terms of costs, you’ll also need to pay a monthly subscription fee and commission to sell your products.
Who can sell products on Amazon Australia?
There are no specific criteria, but you will need to have the following information to be able to sign up to a seller account:
- Business name, address and contact information
- A credit card that can be charged internationally and that has a valid billing address
- Your phone number
- Your tax identity information
When you sign up, an Amazon representative will contact you on the phone number you provide to complete the process.
What can I sell?
Businesses in New Zealand and Australia can sell products more than 20 product categories, including:
- Home and home improvement
- Kitchen and dining
- Movies and TV
- Stationary and office products
- Toys and games
- Clothing and shoes
- Computers and electronics
How do I price my products?
There are message boards and blogs dedicated to the subtle art that is pricing Amazon products. Chatting with other sellers on these forums can be quite useful when setting your prices, as is reading about existing sellers’ experiences and successes using the Amazon platform.
Here are some factors to keep in mind when determining your price points:
- What are your costs and fees? It costs money to sell on Amazon (this is explained in more detail below) so take this into account when setting your prices. Also consider customer return fees and your own returns-related costs, such as product write-offs.
- Competition. What are your competitor’s price points? Check Amazon’s overseas sites as well.
- Flexibility. Selling on Amazon requires price flexibility. Your prices should change depending on where your product is ranking in Amazon’s search results and in response to other sellers changing their prices.
How much will Amazon Australia charge me to sell?
Amazon Australia has the following cost structure for its marketplace:
- A AUD$49.95 (approximately NZD$53) monthly subscription fee to list products on Amazon.com.au.
- A 6–15% commission fee off the top of any sales generated through the marketplace. This fee will be determined by the type of product you’re selling.
How do I organise shipping?
As a seller, you need to organise shipping yourself. If you’re handling your own shipping you should keep an eye on your inventory so you can provide accurate information about stock levels to buyers. It’s also important to check orders daily so you can have orders shipped out on time as per your shipping and fulfilment policies.
Amazon also offers an optional shipping service, Fulfillment by Amazon (FBA). This essentially allows sellers to store and dispatch their goods through Amazon’s warehouses. By using FBA your customers will get free shipping on eligible orders and Prime members will receive two-day shipping. FBA is also pay-as-you-go so you’re charged for the storage space and orders Amazon fills.
How do I market my products?
There are multiple ways to market your products on Amazon Australia. These include through marketing, social media, branding and optimising your products listings. Amazon uses a marketplace search engine to rank products and it considers various factors in product listings to do this. Do research to find out the best way to present your product features, price, features, availability and sales history to rank well in Amazon search.
Is selling on Amazon Australia worth it?
There are a number of online retail sites available for you to sell products on, TradeMe being one of the most popular platforms in New Zealand. The main things you should consider when deciding if Amazon is right for you are the product you’re selling, the audience you’re trying to target and how the cost structure will affect your profits.
However, keep in mind that there are many factors that will affect your success and there’s no guarantee you’ll make a profit. Try to lessen this risk by doing things like market research and analysing what strategies your competitors are using.
How do I start selling?
- Go to Amazon’s seller hub and click “Start selling”.
- Sign in to your Amazon account. You’ll need to make an acocunt if you don’t have one.
- Give information about your business including address and phone number. Amazon will text your number to verify you. Your business name needs to be unique and not one taken already.
- Set up your billing method. It has to be either an Amex, Visa or Mastercard.
- Add in details about what products you want to sell, like how many and what categories they fall under. You can skip this part if you’re unsure.
- Your account will be set up. Keep in mind that you’ll need to set up 2FA and wait for Amazon to verify your account before you can begin selling.
How do I get paid by international buyers
If you’re selling your products overseas and are accepting currencies other than New Zealand dollars, you’ll need to find a worthwhile way to convert your profits back into NZD. Your options boil down to two methods:
- Foreign bank account. This involves setting up a bank account in the country your items are listed in and then transferring your money back to New Zealand. Setting up a foreign bank account can be a complex procedure and you’ll need to be aware of the different regulations each country has. You’re also likely to get a poor exchange rate when you go to convert your profits and may face high fees at both the sending and receiving banks.
- Third-party money transfer service. Several money transfer services offer online seller accounts which are aimed at those selling overseas on marketplaces like Amazon. You can get an account that can hold multiple different currencies and bank details in the country you’re selling in. You’ll also get better exchange rates than through your bank when it’s time to transfer your money to NZD.
For more details on the exchange rates, fees and features of online sellers accounts, you can read more in our guide or check out the table below.
Frequently asked questions
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