Find out how you can profit from one of the world’s biggest online retailers.
Amazon’s Australian launch is a huge opportunity for anyone who wants to make money online. The Amazon Marketplace, the home for small businesses selling their wares on the platform, is open and ready for signups. So, if you're wondering how you can take advantage of this opportunity, this guide will take you through everything you need to know about selling products on Amazon Australia to see if it’s right for you.
How does selling on Amazon Australia work?
Businesses can sign up to sell products through the Amazon Marketplace. 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 are dependent on where your item appears in product searches, so getting this right is extremely important.
Who can sell products on Amazon Australia?
There are no specific criteria, but you will need to have a business name and business email address when you sign up to sell. The sign-up process allows you to enter a business website address, but this is optional.
From what can be deduced from the sign-up process in other markets, you can sell as either an individual or a business. This is in line with the information given at the Amazon Seller Summit, which made it clear that the entry barrier is low for sellers. Once you’ve signed up, an Amazon representative will contact you to discuss the next steps for selling on its platform.
How does the Amazon Marketplace work?
The Amazon Marketplace is the platform that allows third-party sellers to sell their products through Amazon. Sellers are responsible for pricing their own products, but by paying a fee and a commission on sales to Amazon, sellers can access the customers that are purchasing through Amazon Marketplace. According to Amazon, this is currently over 300 million customers.
Other than accessing a large customer base, sellers can also use Fulfillment by Amazon (FBA), which essentially allows sellers to store and dispatch their goods through Amazon’s warehouses. While this option isn't currently available, it will allow more businesses to get set up more quickly when it is available, due to a large part of the logistics being taken care of.
What can I sell?
Currently, Amazon's categories are slightly limited to what is available on the site overseas. Businesses in Australia still do have a lot of choice, however, and can sell products in the following categories:
- 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 until it launches in Australia.
- 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 $49.95 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 decide if Amazon Australia is the right place for me to sell products?
There are a number of online retail giants available for you to sell products on, eBay being one of the most notable examples already available in Australia. The main things you should consider when deciding if Amazon is right for you is the product you’re selling, the audience you’re trying to target and how the cost structure will affect your profits.
Ready to start selling with Amazon Australia?
You can sign up as a seller on Amazon Marketplace here. You’ll need to provide the following information:
- Company name
- Business email
- Phone number
- Website (optional)
An Amazon Australia representative will contact you after you submit your details.