Ecommerce is the best way to gain an income in this economy of the 21st century, and what better place to start than Amazon? Here is a detailed guide on how to start selling on Amazon in India.
The Indian e-commerce industry is soaring as a result of improving e-commerce adoption and the accessibility to a wide range of products. The Amazon India platform is a good way to start an e-commerce business. Here, we will explain why you should sell on Amazon India, how to get started, and a few helpful tidbits to boost your income.
Why Sell on Amazon India?
It is imperative to know the whys and whats before venturing into an industry, and the general contention towards the internet in society makes it even more necessary. The good news is that there are not one but many reasons you should start selling on Amazon in India.
1. High Demand
E-commerce trading is the newest wrinkle of the industry and you might want to get your hands wet. As per the IBEF, India’s e-commerce business is estimated to hit US$ 99 billion by 2024, expanding at a 27% compound annual growth rate between 2019 and 2024. Grocery and clothing are anticipated to enjoy additional increases.
Increased internet coverage, combined with the expansion of organised sectors inside retail marketplaces, bolsters India’s e-commerce requirements. Additionally, the government’s FDI policies will hasten the expansion of India’s e-commerce industry.
Amazon encourages trade on its platform by helping you. Other than Flipkart, Amazon is India’s largest and most reputable user-friendly e-commerce platform. Amazon Prime members receive express shipping. Amazon’s competitive advantage stems from its lightning-fast logistics skills. As a result, sellers should absolutely take benefit of it.
3. Product Sourcing
Several worldwide merchants source their goods from Indian producers. It is one of the world’s major production centres, second only to China. Thus, sourcing commodities from India will undoubtedly increase your revenues. Additionally, if you are an Indian vendor, establishing business relationships and contacts becomes effortless.
How to Start Selling on Amazon in India?
There is no such thing as a one-fit-for-all business model. So, if you have a business idea that suits you, then you should execute the processes outlined below to get started with your business.
1. Find an Outstanding Product to Sell
Before anything, search for the product that you would be happy to sell on Amazon. Whenever you begin your hunt for the perfect product, we would want to remind you that a big seller on the Amazon US market doesn’t necessarily mean a hot ticket on the Amazon Indian market. Every marketplace can have a special need for a certain commodity, whereas the others may not.
If you are just starting out, you could only be selling one thing. However, if you want to earn tonnes of money on Amazon, you will have to diversify your line of products and offer a wide variety of items. In order to find out which products are successful, you need to analyze the market carefully. Then, with thorough product research, hop in!
How to Choose a Product for Selling on Amazon India?
Making an appropriate product selection is extremely important. You cannot simply pick any product on a whim and hope to produce a substantial amount of profit. There are numerous factors to take into account before finalising your product for the Amazon sale.
To begin, you must determine whether there is sufficient market demand for the product. More crucially, it must generate revenue throughout the year, not only during specific seasons. We would advise pursuing a product that generates at least ten daily sales.
In India, the median yearly income is 382,800 rupees. This brings the monthly salary to Rs 31,900. If you are launching a business, you would like your earnings to at least exceed your full-time salary, right? This means that if you sell ten items each day (or 300 units every month), your minimum gain per sale should be Rs 120.
You must identify a product niche in which you can thrive. You do not want to be standing around observing your rival steal all the orders. Check the number of ratings your competitors have while analysing competitors in your industry. If you see that the bulk of merchants on the first page have much more than 500 reviews, just switch to a different product.
Identifying a market gap is critical. It is what enables you to break into your niche and establish an excellent reputation. Take a look at what people are talking about other niche listings. Are they dissatisfied with anything? Do they have special functionality in mind for the product? If the answer is yes, you may grab this opportunity by launching a better product that addresses this deficiency.
Dimensions and Weight
While this is not as critical as the other points on this checklist, it is something we absolutely take into consideration when choosing products to sell on Amazon. The concept here is to seek a compact and lightweight product. Why? Because it will help you save money on transportation, packaging, and delivery. All of this may add up to huge savings, that you can spend on your business.
2. Prerequisites to Sell on Amazon India
To begin, you must have a membership for Amazon seller central in order to sell on Amazon.in. To register:
- You must have a functional bank account.
- Have your business’s GST/PAN number ready.
As a new seller, these are the steps you will take to get started on the amazon seller central platform.
- Select ‘Start Selling’ on sell.amazon.in.
- In order to sign in, you may use your buyer profile details, or you can choose the option to “Create your Amazon account.”
- During the account setup phase, you will be asked to provide the needed details.
- Provide the name of your business or the name under which it is registered on your GST. Read the terms and conditions.
- Finish the verification process by entering your mobile phone number.
- Your ‘Store name,’ Amazon Product Category and address should now be entered.
- Provide the necessary information to activate or deactivate the Whatsapp alert service.
Amazon will verify your information. After that, you must activate the two-step verification system, which provides additional protection for your seller account. Then you must provide your tax information.
GST registration is not necessary for some items that are not liable for GST. Therefore, ensure that you verify all needed information before registering your seller account on Amazon.in.
After creating an account, you must add your commodities to the marketplace. You have the option of adding an existing item from Amazon’s catalogue or creating a new list for your product.
How to Increase Profits on Amazon India?
Once you start to sell on Amazon.in, it is necessary to maintain a remunerative business. So here are some points to bear in mind in order to maximise your profits on Amazon.
Product Bundles and Promotions
From the perspective of generating profits, product bundles and promotions involve less risk and provide greater advantages. Consumers enjoy deals and buying high-priced things at a discount. This approach is advantageous for you due to the increased sales volume generated by the discounts. Additionally, there would be less competition for bundling your goods.
Remember that many a time, when you Amazon bundle things, you will need to make a fresh listing.
Take Advantage of the Competition
If you are battling the corporate battle against some renowned names in your industry, it might be difficult to gain a rate higher than their goods. According to surveys conducted, a product listed on the first search results page attracts 70-80% of orders, but a product positioned on the fourth page captures just 0-10% of sales. That is quite a lot!
To expand your customer base on Amazon, you must appear on the top page. To help you outmatch your competitors, here are a few guidelines to follow.
- Pinpoint who your competitors are
- Check the keywords used by them
- Target them with PPC campaigns
- Use the reviews and ratings of your products to your advantage
Efficient Inventory Management
Without a solid understanding of Amazon inventory management, it is really difficult to maintain a successful Amazon business. Watching a product getting sold out is irritating for a trader. Amazon does not want that either.
Take Things Slow if you Feel the Need
A strong marketing tactic will not only boost sales but will ensure that none are lost. If your marketing efforts or pricing techniques are exceptional, your sales might soar to historic heights, perhaps resulting in an inventory deficit. If this occurs and you are failing to manage the demand-supply dynamic, it might result in a product being out of stock or delivery being delayed. Additionally, your BSR and product rankings are harmed, which has a domino effect on potential sales.
If you predict an out-of-stock issue, there are several options to delay your sales, like hiking prices or shipment times. These approaches, nevertheless, are not completely desirable. Thus, the most efficient method of managing your inventory successfully is to estimate sales and maintain inventory records in advance.
If you intend to maximise your earnings on Amazon, you need continually monitor your products’ pricing. Prices of goods fluctuate regularly on any online platform, including Amazon, due to unstable demands and market conditions. You must constantly remain updated with them. Using a repricing tool or setting a price alert on your competitors drastically simplifies this task.
Amazon Pay-Per-Click advertisements are an excellent complement to your marketing channel. An effective PPC plan may boost your sales and let your website appear higher in search engine results. With the appeal of sponsored advertisements spreading and the range of sellers increasing, PPC strategies are a requirement if you plan to build your Amazon business.
Exploit special events and seasonal sales to their full potential. Cyber Monday, Prime Day, the Great Indian Festival, and other big holidays are significant to Amazon retailers. Determine that you are adequately equipped to manage a surge in demand. Additionally, begin running your PPC advertisements beforehand so that you stay ahead of the market and earn the most sales.
Amazon India is a developing market that offers enormous growth possibilities for businesses and e-commerce startups. Therefore, make the most of it to enjoy the greatest rewards.
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Frequently asked questions (FAQs)
What Types of Business Models Exist on Amazon India?
There are three primary business models available to Amazon sellers:
Retail Arbitrage: This business entails purchasing things from a local retailer and reselling them on Amazon.
Wholesale: You purchase items from well-known labels at wholesale costs and sell them on Amazon.in.
Private Label: As implied by the name, it entails establishing your unique private label on Amazon India.
Approximately How Many Sellers Have Registered on Amazon India?
Amazon India now has approximately 300,000 sellers, the majority of whom are small and medium-sized businesses (SMBs). These businesses ship from more than 14,200 different zip codes around the country. Delhi is the primary location for the bulk of Amazon vendors in India.
Is It Profitable to Register and Become a Seller on Amazon India?
Over 4000 sellers sold well over ten million products on Amazon India last year. Additionally, 7,036 merchants got orders totalling over one million rupees during the 2020 Great Indian Festival. Selling on Amazon India may be incredibly lucrative if done correctly.
How Much Investment do you Need to Make Before Selling on Amazon India?
This is entirely dependent on the product you intend to offer. Generally, you must have enough finances to cover 90 days of inventory, giveaways, and listing charges, as well as some additional revenue to host sponsored advertisements during the first month. As sales begin to roll in, you will have enough revenues to pay these expenditures while still earning a decent profit.
What Things Can I sell on Amazon India?
Amazon offers more than 30 categories to sell products in. These can be Mobiles, Televisions, Laptops, Cameras, Clothes & Apparel, Watches, Jewelry, Shoes, Books, Movies & TV Shows, Music, Video Games, Home & Kitchen, Gourmet, Pet Supplies, Car & Motorbike, Toys & Games, Baby Products, Diapers & Wipes, Sports, Beauty, Health, Personal Care Appliances, Household Supplies, Home Entertainment, Musical Instruments, Office Supplies, Accessories, Luggage, Handbags, Travel Accessories, and Sunglasses.
Do I need Amazon’s Approval Before Selling Products on Amazon India?
There are certain items that necessitate Amazon’s special permission as the corporation makes sure that they are fit for consumption or application.
These categories can be:
– Grocery & Gourmet
– Outdoor and Sports Toys
– Kids and Baby Furniture
– Car Seats
– Personal Safety & Household
– Baby Food
– Silver Jewelry
– Pet Care
Can I Sell on Amazon India Without Registering for GST?
You certainly can. If you want to sell GST-exempt items on Amazon India, you do not require a GST number. Books, plastic bangles, maps, and some handicraft goods are all examples of GST-exempt products.