Selling on Amazon

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This topic contains 9 replies, has 4 voices, and was last updated by Profile photo of Jonathan Bechtel Jonathan Bechtel 2 years, 8 months ago.

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  • #216
    Profile photo of Jay Thomas
    Jay Thomas
    Participant

    Was wondering what you guys thought about this. I’m starting off small so i know i won’t have large distribution channels. Going on amazon seems like the easiest way to get your product out there but i worry that i’ll have to drive my price down or make myself visible to competitors. it doesn’t seem like the best way to go for a premium product but the other ways of finding customers seems pretty intimidating.

    Jonathan i know you sell on amazon, how has it worked for you and would you recommend it to others?

    #218
    Profile photo of Jonathan Bechtel
    Jonathan Bechtel
    Keymaster

    Good question @jthomas.

    I’d say selling on Amazon has the benefits and drawbacks that you described. It’s the easiest way to get quick distribution, but the ease of comparison and drive towards low price can make it a good place to start and bad place to stick around.

    I thought a lot about this when I first started and mostly did Amazon because I wasn’t sure I had any better options. It occurred to me that I might later regret it, but so far it’s worked out alright.

    I’d say I have the following issues with it right now:

    1). New competitors have sprouted up selling similar stuff @ kamikaze prices. This is probably inevitable on Amazon.

    2). Their metrics aren’t as good as something like Google Analytics, and so I can’t tell how many of my purchases originated on Amazon, or were from website customers who would’ve bought from me directly but instead went to Amazon and lowered my margins due to their consignment fee.

    3). In general I’d say attrition is a little lower on Amazon because so many people are going there all the time anyways. The shipping helps too.

    To be honest, I really don’t think there’s one answer that’s right with regards to it. It’s worked out well for me, but I still juggle some fears with it that make me nervous about what it might do to my business over the long run. Time will tell.

    Owner of Health Kismet . Open to answering any and all questions.
    #220
    Profile photo of FRANNY
    FRANNY
    Participant

    I am having a hard time getting a hold of anyone at Amazon. There’s no contact number that I’ve been able to find. I have a number of questions for them regarding the product I want to sell. I am old fashion & like speaking directly to a person on the phone. :)

    #226
    Profile photo of Jonathan Bechtel
    Jonathan Bechtel
    Keymaster

    I am having a hard time getting a hold of anyone at Amazon. There’s no contact number that I’ve been able to find. I have a number of questions for them regarding the product I want to sell. I am old fashion & like speaking directly to a person on the phone. :)

    I think this right here: http://services.amazon.com/content/sellers-contact-amazon.htm/ref=as_us_cu_navt1?ld=AZFSSOAAS is the closest you’re going to get.

    You can request that they get back to you via phone and go from there.

    As a seller that currently uses Amazon I can file a support ticket and have someone call me back instantaneously, but I think you have to be actively using the service in order to do that.

    Owner of Health Kismet . Open to answering any and all questions.
    #296
    Profile photo of Jay Thomas
    Jay Thomas
    Participant

    I was just looking at Amazon’s pricing and to be honest I find it very confusing, both the fulfillment and the selling fees.

    Jonathan could you provide a breakdown of how it works for you?

    #300
    Profile photo of Jonathan Bechtel
    Jonathan Bechtel
    Keymaster

    I was just looking at Amazon’s pricing and to be honest I find it very confusing, both the fulfillment and the selling fees.

    Jonathan could you provide a breakdown of how it works for you?

    For off-amazon orders it’s $5.95 for everything included for the first bottle, and about $1.25 for each additional bottle. For on Amazon orders it’s more like $3 + consignment fee, which comes out to about $7.86 total. The biggest variable in this is the weight of your product, since everyone here would have the same product category (presumably).

    There’s also a $40 subscription fee, and a storage fee, which doesn’t come out to much.

    Owner of Health Kismet . Open to answering any and all questions.
    #301
    Profile photo of Jay Thomas
    Jay Thomas
    Participant

    <div class=”d4p-bbt-quote-title”>Jay Thomas wrote:</div>
    I was just looking at Amazon’s pricing and to be honest I find it very confusing, both the fulfillment and the selling fees.

    Jonathan could you provide a breakdown of how it works for you?

    For off-amazon orders it’s $5.95 for everything included for the first bottle, and about $1.25 for each additional bottle. For on Amazon orders it’s more like $3 + consignment fee, which comes out to about $7.86 total. The biggest variable in this is the weight of your product, since everyone here would have the same product category (presumably).

    There’s also a $40 subscription fee, and a storage fee, which doesn’t come out to much.

    Thanks @jonathanbechtelgmail-com,

    I’ve tried contacting a few other fulfillment houses, and they seem promising, but it’s hard to compare prices.

    Has anyone looked into Shipwire, Planet Fulfillment or E-fulfillment service?

    E-fulfillment service sounds nice but they also seem small and I wonder if they can handle a wide variety of orders, i’ve heard bad stories about fly-by-night fulfillment companies being more trouble than they’re worth. They seem very flexible but I don’t want someone that doesn’t have a good operation. The last thing I want is orders getting lost and having to deal with angry customer emails and refunds.

    #306
    Profile photo of Jonathan Bechtel
    Jonathan Bechtel
    Keymaster

    <div class=”d4p-bbt-quote-title”>Jay Thomas wrote:</div>
    I was just looking at Amazon’s pricing and to be honest I find it very confusing, both the fulfillment and the selling fees.

    Jonathan could you provide a breakdown of how it works for you?

    For off-amazon orders it’s $5.95 for everything included for the first bottle, and about $1.25 for each additional bottle. For on Amazon orders it’s more like $3 + consignment fee, which comes out to about $7.86 total. The biggest variable in this is the weight of your product, since everyone here would have the same product category (presumably).

    There’s also a $40 subscription fee, and a storage fee, which doesn’t come out to much.

    Thanks @jonathanbechtelgmail-com,

    I’ve tried contacting a few other fulfillment houses, and they seem promising, but it’s hard to compare prices.

    Has anyone looked into Shipwire, Planet Fulfillment or E-fulfillment service?

    E-fulfillment service sounds nice but they also seem small and I wonder if they can handle a wide variety of orders, i’ve heard bad stories about fly-by-night fulfillment companies being more trouble than they’re worth. They seem very flexible but I don’t want someone that doesn’t have a good operation. The last thing I want is orders getting lost and having to deal with angry customer emails and refunds.

    I use Shipwire for international shipments, and to be honest I find them to be a little bit of a pain in the ass. Their software is very good, but it’s a thicket of rules and regulations that always seem to get in the way, and the cognitive overhead of using them is taxing.

    I’d switch if I had the time and mental bandwidth to go through with finding a new fulfillment center.

    They’re also expensive. They’re actually a software company and not a fulfillment company…..they outsource that to different warehouses, so their prices are pretty high.

    Owner of Health Kismet . Open to answering any and all questions.
    #379
    Profile photo of Nick M.
    Nick M.
    Participant

    Anybody run into this speed bump?!?!

    Health & Personal Care

    Amazon limits the addition of new sellers in the Health & Personal Care category to ensure that customers are able to buy with confidence from all sellers on Amazon. The requirements for selling in the Health & Personal Care category reflect customer concerns about product quality, product branding, and consumer safety.

    Sellers must meet the requirements listed below in order to sell products in the Health & Personal Care category. Please take the time to read this list of requirements and consult our Help pages if you have questions about specific policies. Once you have reviewed the category requirements, you can apply for approval by clicking the Request Approval button at the bottom of the page.

    Seller Requirements

    You must be registered as a seller on the Professional Selling plan.
    You must meet the following seller performance targets:
    Order defect rate: < 1%
    Pre-fulfillment cancel rate: < 2.5%
    Late shipment rate: < 4%
    You must provide us with acceptable documentation and other information we request about the products you intend to sell. After you request approval to sell in the Health & Personal Care category, we will contact you with additional information.
    You are not required to have your own company website, but if you have one it will be helpful to us to review it during the application process.
    Product Requirements

    All Health & Personal Care products must be listed using the manufacturer’s UPC code. For more information on UPC requirements, see Product UPCs and GTINs. If you do not have UPCs, review the Amazon Brand Registry information for how to list products without UPCs.
    All Health & Personal Care products must be sold in New condition. Used listings are not permitted. For more information, see the Condition Guidelines.
    Next Step

    If you are able to meet all of the requirements listed above, please click the Request Approval button below. By clicking the button you are confirming that you have reviewed the requirements above and that you want to apply to sell in the Health & Personal Care category. We will contact you to request additional required information, after you submit your request to sell.

    #380
    Profile photo of Jonathan Bechtel
    Jonathan Bechtel
    Keymaster

    I’m listed in Health & Personal Care and I believe I had to do these same things. It’s been 4 years, but I’m pretty sure this means you have to make sure you buy your barcodes from a reputable reseller and do the $40/month plan.

    Owner of Health Kismet . Open to answering any and all questions.
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