Find out how a partnership with Amazon could be a lucrative move for your business.
Amazon launched in Australia in December 2017 and since then has been rolling out a number of features to support the small businesses selling on its marketplace. This includes Fulfilment by Amazon – its shipping and logistics service – and its Amazon Prime Day sale.
If you're looking to grow your online sales, here is a guide to how you might be able to do that by partnering with Amazon in Australia.
How can my business sign up for Amazon in Australia?
Signing up to sell on Amazon Australia is a simple process. Just head to amazon.com.au and at the bottom of the website click "Sell on Amazon". You will need the following information to register:
- Your business name (make sure you enter it as you want it to be displayed on Amazon.com.au)
- Your name or the entity's name that operates the business
- The business's physical address
- A business credit card number and expiration date
- If you receive your credit card statement at a different address, enter this address
How much does it cost to sell on Amazon Australia?
Any business selling on Amazon Australia pays subscription fees as well as a range of selling fees. Be expected to pay:
- Subscription fee: $49.95 per month. You need to make the first payment when you register and the second payment is due one month after registration.
- Referral fee: For each item you sell, you will pay a referral fee which is a percentage of the item's total sale price. The percentage depends on the category the item is in. For example, books have a referral fee of 12% while toys have a referral fee of 9%. Most items have referral fees between 8% and 12%.
- Selling fees: You are responsible for any taxes required for the sale of your goods.
- Closing fees: For any media item that is sold (books, DVDs, music, software, computer/video games, video and video game consoles) you will pay a $1 closing fee.
- Refund administration fee: In the case of a refund where you have already received the customer's payment, Amazon will charge you $5 or 20%, whichever is less.
- Fulfilment by Amazon (FBA). If you sign up to Amazon's FBA service, you will be charged the applicable fees.
What is Amazon Marketplace?
Amazon Marketplace allows businesses and sole traders to list their products for sale on Amazon. By paying a fee, your business can tap into Amazon’s existing infrastructure, giving you the potential to reach a much wider audience of buyers and also take advantage of Amazon’s shipping systems and customer service.
Why should my business sign up to Amazon?
There are several reasons you may want to sign up your business to sell on Amazon:
- Easy ecommerce. If you don’t know much about web development or about selling online, Amazon makes it simple and convenient to get started in the world of ecommerce. In other words, you can access a new sales channel without having to go through the process of creating your own website.
- Fulfilment by Amazon. The Fulfilment by Amazon system allows you to warehouse your products with Amazon, which then ships them out when an order is received. It’s fast and convenient, and it removes the need for you to worry about logistics and shipping.
- Various integrations. Large ecommerce platforms such as BigCommerce and Shopify offer simple integrations with Amazon so you can set up shop easily.
- Increase sales. By taking advantage of Amazon’s global reach, you could boost sales and increase business profits.
- Find new customers. Amazon has a huge online presence and can help you reach an astronomical number of customers. In the US alone, Amazon has more than 150 million unique monthly visitors.
- Available to businesses of all sizes. You don’t need to be a big business to sell on Amazon. Everyone from sole traders and small startups through to well-known household names can sell through Amazon Marketplace.
How to manage a business on Amazon
New to Amazon? The world of ecommerce can be confusing and intimidating at first, so keep the following tips in mind to help your business make the most of the advantages Amazon offers:
- Featured Merchant Status. Featured Merchants are the most visible sellers on Amazon, gaining premium listing locations in or below the Buy Box (box at the top of the page where customers can directly add products to their shopping carts). To attain this status you will need to sign up as a professional seller and then maintain a high customer satisfaction rating.
- Monitor your inventory. Remember to always keep an eye on the amount of inventory you have for your top-selling products, as Amazon takes the amount of inventory into account when determining which products are listed in the Buy Box.
- Remember your global audience. Speaking of inventory, remember that different products will experience varying levels of demand in different countries depending on the season. For example, if you’re selling swimwear online, while demand from Australian customers may be high from October through to February, you could also experience increased demand from northern-hemisphere customers during their summer.
- Learn about the fee structure. Check the fees that apply when selling on Amazon and remember to factor them into your calculations when working out the cost of doing business. If your business operates on very low margins, selling on Amazon may not be a viable option.
- Managing shipping. While you may be able to easily manage to pack and ship the number of orders your business currently receives, would you be able to cope with increased demand if your sales rise? It may be well worth considering whether you should sign up for Fulfilment by Amazon, which is Amazon’s process for warehousing and shipping your product and also taking care of customer service and returns.
What else can I do to prepare my business to sell on Amazon Australia?
- Do your research. Keep an eye out for Amazon Marketplace seller summits and other events designed to help retailers learn about selling on Amazon. There’s also plenty of useful information online about how Amazon works and how sellers can get more out of this online platform.
- Shop around yourself. The best way to become an expert on Amazon is to see what you like as a shopper. Find out how people shop on the platform by shopping there yourself! See what product descriptions grab you and what keywords you use to find the products you want.
- Fine-tune your brand. While Amazon provides global reach it also means increased competition, so think about how you will make your products stand out from the rest. Pricing is obviously a key factor, but working out exactly what you want your brand to represent – and how to communicate that message to consumers – is crucial.
- Research, research, research. There are multiple forums and support networks dedicated to Amazon sellers. These help you to learn from successful Amazon businesses, both their mistakes and their wins.