SELL YOUR PRODUCTS ON AMAZON, HERE WE TELL YOU HOW.
- How much does it cost to sell on Amazon?
- How do I get my products to my customers?
- What do I do to make my products stand out on Amazon?
- Start your registration on Amazon
- Amazon opens the doors to the world for you
In just a few weeks we have witnessed accelerated growth in online commerce due to confinement to prevent the spread of COVID-19.
The measures we face worldwide make e-commerce one of the best alternatives to face the crisis and it is a trend that some users will adopt permanently.
There are numerous marketplaces that can boost your sales, two of the most relevant are Amazon and Alibaba; In this first part we tell you how Amazon works and how to catalog your products. If you want to reach new direct consumers, Amazon Mexico is an excellent tool to increase your sales.
How much does it cost to sell on Amazon?
Amazon charges suppliers a monthly subscription fee of $600.00MXN + a referral fee for each sale, this fee will depend on the product category. The monthly subscription fee will allow you to publish on three of their sites: Amazon Mexico, Amazon USA and Amazon Canada.
How do I get my products to my customers?
You have two options, send the products yourself or leave it in the hands of Amazon.
I make my own shipments
If you decide to do it yourself, you will only use the platform to sell. Consider that you will be responsible for the inventory and shipping of products to buyers, in addition to packaging and labeling, so you will need a logistics partner such as a courier (DHL, FEDEX, Estafeta , Three Wars, Beavers, etc.). Amazon recommends this scheme for those merchants who sell to the end consumer and who have logistics capabilities, as well as customer service.
Amazon makes shipments
If you decide to use the Fulfillment By Amazon service, you will have a logistical support scheme in which, for a fee proportional to the size and weight of your product, Amazon will take care of the storage and shipping. Additionally, they manage customer service activities, refunds and returns for you. You only have to send your products to their distribution center.
Rate based on weight
For example, if your shipping rate is $60.00 MXN and the rate per kilo is $10.00 MXN, a buyer who orders two products from you: a 25kg bag of dog food and a 1kg bag, Amazon would calculate the total charge by shipping to your buyer as follows:
$60.00 + $10.00 x (25kg + 1kg) = $320.00
Item based rate
If your shipping rate is $60.00 MXN and the rate per item is $10.00 MXN, a buyer who purchased two of your items would pay $80.00 MXN for shipping.
If it is convenient for you, you can also establish a price range, depending on the purchase amount, so that Amazon automatically does the calculation. You can set a range where all items with a value from $0.00 to $300 MXN have an automatic shipping rate of $150.00 MXN, while from $300.00 to $700.00 it will be $100.00 MXN.
These bands apply to all the products you sell, be careful when establishing the method to set the shipping rate that best suits your buyer so that your products do not lose profitability.
Additional charges
Charges for removing units from a distribution center (unit charge)
$7.55 MXN (for standard size units)
$9.00 MXN (for large size units)
If destruction of a unit is required within a distribution center, the charge will be $2.30 MXN for standard size units and $4.65 MXN for large units.
What do I do to make my products stand out on Amazon?
Regarding advertising, Amazon offers three schemes:
- Sponsored product It is an individual ad that will help you improve the visibility and positioning of your product in searches. This option has a cost per click, so you will only pay when a potential customer clicks on your ads. You can set daily or monthly budgets to set campaign caps.
- Sponsored Brand
These ads include your brand logo, a headline, and three products. Like the Sponsored Product, the cost for Sponsored Brand is per click. - Store
It is a mini store within the site where you can share information about your brand and your products in a more personalized way. This option is a free resource given to sellers enrolled in the Amazon Brand Registry program.
Additionally, you can apply promotions and coupons that are up to individual consideration. Amazon offers two types of schemes:
7 day offers
Lightning Offers
The seller can choose between both, although it is important to mention that only managed products participate.
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