Startup Idea – How You Can Become a Solopreneur by Selling Products on Amazon?

An Amazon seller is similar to a small-business owner, or a solopreneur, working to sell his/her products. Nowadays, even college students are opening their online stores to get their pockets filled.

Tue Nov 14, 2023

"Your time is limited, so don't waste it living someone else's life" — Steve Jobs

In this article, we will share an excellent startup idea with you and tell you all the ways how you can become a solopreneur, running an Amazon store.

Find the Niche of Your Store

It’s important to decide on a profitable niche as the first step to sell products on Amazon. But how can you set your finger at what’s good and what’s not? Well, a profitable niche is what’s:

In the trends
Mid competition
People look for

However, your niche lies where your interests and these 3 pointers align. For example, let’s say that minimal jewelry is something that’s trendy, has low-competition, and what people want. It’s good to sell, right? But what if you want to sell sports products instead? Here, your interests don’t align together and so, not letting you make a choice. So, the best is to choose what you like.

Figure Your USP

Once you’ve figured out what you want to sell, it’s time to choose your USP (Unique Selling Point). In simple words, why would people come to your store? Is there something special that you sell but others don’t?

For example, do you make handmade Rajasthani jewellery? Make it your USP. That’s how people will stick around your store.

THE 7-STEP STARTUP SUCCESS FORMULA

I am not the only Business Coach around. There are many distinguished business coaches and gurus out there. At the end of the day, our aim is not just to give you knowledge and jargon.In this book, I have mentioned 7 defined steps to reach your startup milestone, condensed with my 25 years of experience.

___ by Anu Khanchandani

Register Yourself as an Amazon Seller

The registration process as an Amazon sellers requires you to provide your details and documents such as:

Email ID
Active Mobile Number
GST Number
Active Bank Details

Note: Certain products such as books, handicrafts, and edible goods are categorized as GST exempted products on Amazon. Hence, please provide PAN details in such a case. Read more: How to manage your startup Funding?

8 Steps to Setup Your Amazon Store

Now that you’ve got all the requirements to set up your Amazon Seller account, let’s get it done!

Step 1: Sign Into Your Customer Account

Sign into your Amazon customer account. In case you don’t have one, choose the “Create Your Amazon Business Account” option and proceed with the required details.

Step 2: Enter The GST Number

Enter the GST number of your business and then verify it with OTP. But again, if you sell tax-exempted products then select the “I only sell tax-exempted products such as books” option.

Step 3: Choose Your Amazon Store’s Name

You can either choose an auto-generated suggestion or suggest one of your own. The Amazon store name will be shown to your visitors and customers.

Step 4: Enter Your Address

Please note that this address will be used by carriers to pick up products to ship to the customers. Also, ensure that the address must be in the same state that the GST is registered in.

Step 5: Choose Your Shipping Method

Amazon allows its sellers to choose from 3 different shipping methods: Amazon FBA, Easy Ship, or Self Ship. We’ll consider all of them later in this article.

Step 6: Enter the bank details of your business

Please ensure that you fill-in the details of an active bank account since it’ll be used to process payments by Amazon.

Step 7: List Your Products

List your products on Amazon with details such as images, descriptions, prices, etc. Note that one product listing is a must to launch your store.

Step 8: Launch Your Amazon Store

Lastly, click on the “Launch Store and Start Selling” button to make the Amazon store live.

The Startup Founder Mindset

Seller Central: What is it?

Once you’ve signed up as an Amazon seller, you get access to your Seller Central Dashboard. Here, you get access to all your business management tools such as to add new listings or customer metrics. Key Benefits:

Track your inventory and add new listings.
Get access to custom business reports.
Monitor your seller performance.
Track regular sales.

In addition, you can also contact Selling Partner Support from your dashboard.

How To List Products & Add Details?

First, you need to create a brand new listing. When you create this new listing, Amazon generates an ASIN (Amazon Standard Identification Number). Then, you’ll need to fill-in the following details:

The title of your product listing
Images of your product
Variations of the product (if available)
Key features and benefits
Description
Featured offers

That’s it. Finally, add it to your store.

The Fees: Sellers on Amazon

Amazon charges 4 different types of fee from its sellers that are associated with sales and delivery charges. These include:

1. Referral Fee

Amazon charges a percentage of the sales made by a certain product, which is known as Referral Fee.

2. Closing Fee

Amazon charges an addition to the Referral fee, which is based on the product price and known as Closing Fee.

3. Shipping Fee

As the name suggests, Amazon charges an amount to deliver your products. Note that a shipping fee is only applied when you choose ‘Easy Ship’ or ‘FBA’ as your shipping method.

4. Other Fee

Other fee is applied when you choose FBA as your shipping method since it includes picking, packing, and then shipping of the product.

How to Deliver Your Products?

Amazon offers 3 ways to ship orders — Fulfillment by Amazon (FBA), Easy Ship, or Self Ship.

1. Fulfillment By Amazon (FBA)

FBA is basically when Amazon takes care of the picking, packaging, shipping, and customer queries — all by itself. In addition, your store becomes eligible for Prime with FBA.

2. Easy Ship

In the Easy Ship method, you pack the product as your choice and then Amazon ships it to the customer. Since you pack the product, there are no storage charges on you.

3. Self Ship

As the name suggests, you pack, pick, and deliver the orders to the customers with the help of a third-party carrier. In addition, you have to pay only the Referral & Closing fees now.

Final Words

Amazon is a huge platform, not only for the customers but also for the sellers. There are hundreds of choices for one product, and of course, it’s much harder for sellers to sell.

However, good reviews and service is the key to boost your Amazon store and become a solopreneur.

Dr. Anu Khanchandani
With over two decades of experience in the software technology arena, having worked in multinational and SME companies in India, USA and Singapore in the capacity of programmer to CTO - I felt now was a good time to give back to the world what I have learnt in this journey. Even if it ends up benefitting a few of my readers by giving them insight or solving a technical issue, I think I will have achieved my mission!