I want to sell on Amazon
You want to sell your products through the Amazon platform, to have access to millions of buyers. See the most important conditions you will have to fulfil (and which are similar on other platforms).
Like you, more and more businesses are choosing to sell their products through Amazon – or other similar platforms – with the intention of accessing as many buyers as possible.
Well, see what steps you need to take to do so and what are the most important conditions that the platform will require from you in order to offer your products for sale…
How do I start selling on Amazon?
Step 1: Create your Amazon account
The first thing you will need to do is register on the platform as a seller.
Please note:
- To complete the registration process you will need to provide, among others, your company details, a telephone number, a credit card for the payment of the service and bank details for the collection of the sales you make.
In the case of Amazon, you can decide to sell your products in the five European markets (United Kingdom, Germany, France, Italy and Spain) or only in the Spanish market.
Selling on amazon as an individual
- If you think you will sell less than 40 products on Amazon per month, it is preferable to register as an individual seller, in which case Amazon will charge you a fee for each sale made.
- On the other hand, if you think you will sell more (or want to take advantage of all the possibilities offered by the platform) it will be more economical to register as a professional seller on Amazon (paying a flat fee of 39 euros per month).
Step 2: Upload your inventory to Amazon
Once you have registered, you will be able to publish your products on the platform so that they are accessible to potential customers.
If you choose the professional seller mode, you will be able to use automated tools provided by Amazon, which are very useful if you have to upload a lot of information.
Main conditions for selling on Amazon
Logistics at Amazon
In case you have your own logistics, you can use it to ship the orders you receive through the platform.
However, if you do not have your own logistics, you can use Amazon’s logistics service (other platforms have similar services), which allows you to store your products, ship them and even provide customer service and manage returns.
The cost depends on the services contracted (for example, the shipping cost is around 2-3 euros per unit for products weighing up to 1 kg).
Fees and charges on Amazon
On the selling price of the product that you have published (and that Amazon will charge the customer), the platform will deduct a fixed fee of 0.99 euros (if you are a professional seller this deduction does not apply) plus another fee that varies according to the type of product sold and that, in general, ranges from 7% of the selling price (e.g. for computer products) to 15% (e.g. for toys and games):
- Once you have collected the sales from your customers, Amazon will pay them to you (minus the fees indicated).
- Transfers from Amazon are made every 14 days, and in order to receive them, your seller payment account must have a positive balance of at least 1 euro.
- Do not rely on this, as your account may become negative if, for example, Amazon accepts a complaint from a customer who claims not to have received an order or to have received a product other than the one ordered.
Using platforms such as Amazon can increase your sales by giving you access to many potential customers. But be aware of the requirements and fees that these platforms demand.
What happens if the customer does not want the product?
Withdrawal
In distance sales, if you do not perform the contract, you may be obliged to compensate the consumer.
Therefore, if the product is returned to you, you should know the reason for the return so that you are not later claimed for non-performance of the contract.
Make sure you know the reason for the return
For this purpose, always confirm the reason for the return. The law stipulates that the withdrawal must be express and in writing, so that the mere return does not imply withdrawal.
Proceed as follows:
Expressly regulate on your website how withdrawal should be made and provide a specific form for this purpose.
Include a section for exchanges and returns so that customers can indicate the problem (error in the model and request for an exchange) or if they are not satisfied and want to return it (i.e. they withdraw).
Reply to
Always acknowledge receipt of the customer’s statements, taking note of the withdrawal and returning what has been paid, or processing the requested change of model.
If the model is not available in stock, inform the customer immediately and return the amount paid.
In case of unjustified delay in returning the amounts received, you may have to return double the amount paid by the consumer, plus compensation for damages in excess of that amount.
The withdrawal must be express: if they return the product, find out the reason so that they cannot claim non-performance.
Exceptions to withdrawal
For contracts concluded at a distance (e.g. Internet sales), the consumer may withdraw without giving a reason.
But this right is not unlimited, and this has been recognised by the courts:
- A couple contracted with an event management company to organise their wedding, but then withdrew and asked for a refund (around 6,000 euros).
- They have been granted because the wedding coincided with the Covid pandemic and the contract was terminated due to force majeure.
- Otherwise, they would have been denied the right to withdraw: if the contract provides for a specific date of performance (as is the case with the organisation of a wedding), the law excludes the possibility of withdrawal for food services, accommodation services for purposes other than housing or those related to leisure activities.
- No withdrawal is possible for food and leisure services with a specific date of performance.
Digital kit
Don’t forget the business strategy
Since the pandemic, many companies are going digital with support such as the “Digital Kit” and opening their e-commerce. However, they are simply setting up a sophisticated website, without going any further.
A good platform is of little use if it is not visible: digital marketing is just as important.
Advice
Acelera Pyme offices, distributed throughout Spain, also offer advice to companies in this area.
Use part of the aid obtained to develop a digital business model and to strengthen your company’s presence on the Internet and social networks in order to make it more visible in this field.
If you need help do not hesitate to contact Asesoria Orihuela Costa.
