What is Amazon and how does it work?

What is Amazon?

Amazon (Amazon.com) is the world’s largest online retail platform. They facilitate 43% of all online sales in the U.S. and deliver around 1.6 million packages daily. Not to mention they hire 7.5% of all working-age people in Seattle and have 45,000 robots running their warehouses. In Germany and France, around 30% of all online sales happen on Amazon. In the UK, Amazon “only” controls 25% of the e-commerce market. In total, Amazon has 340 million customers across all European markets.

What do I need to do, to sell on Amazon?

To sell on Amazon, you need to create a sales account. You can choose to register as an individual or a professional. What you choose depends on your expected future earnings. T o create your sales account, you need the following:

  • Your company’s name, address and contact information.
  • A payment card with international transfer.
  • A phone number to use during the registration process.
  • Tax information.

How do you sell to 340 million customers?

Amazon offers three different ways to sell products on its platform; Fulfilment by Amazon (FBA), Fulfilment by Merchant (FBM) or Fulfilment by Vendor (FBV).

FBA: Products are stored in one of Amazon’s warehouses where they will be shipped off to customers. The seller avoids daily inventory checks and trips to the post office.

FBM: The seller is responsible for shipping orders and checking inventory.

FBV: Amazon buys products wholesale from the seller which are then sold to customers under the Amazon brand. Amazon therefore buys your goods up-front.

How do you advertise?

You can create a number of different ads on Amazon, but one universal feature is the charge required to access ad placements on the site. The highest bidder – with the most relevant products and positive reviews – gets the best ad placement. Today, you have the option to use video ads, retargeting ads, banners etc. The opportunities available to reach target audiences are constantly expanding.

Brand registration and brand store

If you own the rights to your brand, you can register it on Amazon. This will grant you control over texts and images associated with your product, even if you are not the only seller of that product on Amazon. In addition, you can create a brand store on Amazon which acts as a personalized website tailored to your preferences. We will help you through the whole process from registration to finished product.

Try our calculator to estimate the cost of selling your product on Amazon – View more