How to Start Selling on Amazon

Amazon is a global e-commerce giant, offering sellers access to an extensive customer base and a robust infrastructure that simplifies online retail. With millions of potential customers visiting the platform daily, Amazon provides entrepreneurs with an opportunity to reach a vast audience. However, success on Amazon requires more than just listing products. It involves understanding the platform’s policies, creating effective listings, managing inventory, and strategically marketing your products.

Types of Seller Accounts

Before diving into the setup process, it’s crucial to understand the different types of seller accounts Amazon offers. Selecting the right account type for your business needs can impact your selling strategy and costs.

1. Individual Seller Account

• Best For: Sellers who plan to sell fewer than 40 items per month.
• Fee Structure: There is no monthly subscription fee, but Amazon charges $0.99 per item sold. In addition to this per-item fee, sellers must also pay a referral fee, which is a percentage of the total sale price.
• Limitations: Individual sellers do not have access to advanced selling tools, such as bulk listings or in-depth sales analytics. Additionally, they cannot qualify for the Buy Box, which is a critical feature for driving sales on Amazon.

2. Professional Seller Account

• Best For: Sellers who plan to sell more than 40 items per month and want to utilize Amazon’s advanced selling features.
• Fee Structure: The Professional account has a monthly subscription fee of $39.99, but it eliminates the $0.99 per-item fee. Like the Individual account, sellers still pay referral fees on each sale.
• Advantages: Professional sellers gain access to a wide range of tools, including bulk product uploads, advanced sales reports, and eligibility for the Buy Box. They can also offer promotions and create product bundles.

Which Account Should You Choose?

• If you’re just starting out and want to test the waters, the Individual account might be sufficient. However, if you anticipate selling more than 40 items per month or need access to Amazon’s advanced features, the Professional account is the better option. Keep in mind that you can switch between account types as your business grows.

Step-by-Step Instructions on How to Create a Seller Account

Setting up a seller account on Amazon is a straightforward process, but it requires careful attention to detail. Here’s a step-by-step guide to help you navigate the setup process:

Step 1: Visit Amazon Seller Central

• Go to the Amazon Seller Central website, which is the hub for all seller activities. Here, you can manage your listings, track sales, and access various tools and reports.
• If you already have a regular Amazon account, you can use those credentials to sign in. If not, you’ll need to create a new account.

Step 2: Choose Your Seller Plan

• You’ll be prompted to select between the Individual or Professional seller account. Review the features and fees associated with each plan before making your choice.
• Remember, you can always upgrade or downgrade your plan later if your needs change.

Step 3: Provide Business Information

• Enter your legal business name, address, and contact information. This information will be used on your seller profile and for tax purposes.
• If you’re registering as a business entity, ensure that your business is registered with the appropriate government authority and that you have all necessary documentation.

Step 4: Verify Identity and Bank Information

• Amazon requires sellers to provide personal identification documents, such as a passport, driver’s license, or national ID, to verify your identity.
• You’ll also need to provide your bank account details. This account will be used to deposit your earnings from sales, so ensure it is accurate and can receive payments from Amazon.

Step 5: Set Up Billing Information

• Enter a valid credit card that Amazon will use to charge any fees associated with your account, such as subscription fees or advertising costs.
• Ensure that your card information is up to date to avoid disruptions in your selling activities.

Step 6: Complete the Tax Information Interview

• Amazon requires all sellers to submit tax information. You’ll need to complete a tax interview, which helps determine your tax obligations and reporting requirements.
• This information is crucial for compliance with local and international tax laws, so be accurate and thorough.

Step 7: Wait for Account Approval

• After submitting all the necessary information, Amazon will review your application. The approval process typically takes between 24 hours to a few days, depending on the accuracy of the documents provided and the complexity of your application.
• During this period, ensure that your contact information is accessible in case Amazon needs to reach you for additional verification.

Information on Documents Needed and Approval Time

To ensure a smooth registration process, prepare the following documents and information:

• Government-issued ID: This can be a passport, driver’s license, or national ID. Amazon uses this to verify your identity.
• Business Registration Documents: If you’re registering as a business, you’ll need to provide proof of your business entity, such as a certificate of incorporation or a business license.
• Bank Account Information: Ensure you have your bank account number and routing number ready. This is where Amazon will deposit your sales earnings.
• Credit Card Information: A valid credit card is required for fee payments. Ensure the card is up-to-date and has sufficient credit.
• Tax Identification Number (TIN): This is necessary for tax reporting purposes. The exact requirement may vary depending on your location and business structure.

The approval time varies, but it generally takes between 1 to 3 business days. If Amazon requires additional verification, the process might take longer. To avoid delays, double-check that all your documents are clear and that your information is accurate.

Tips on How to Research and Select Profitable Products

Choosing the right products to sell on Amazon is crucial for success. The following strategies can help you identify and select products that are likely to be profitable:

Step 1: Identify Market Demand

• Use Research Tools: Tools like Jungle Scout, Helium 10, and Viral Launch are invaluable for identifying products with high demand and low competition. These tools provide insights into sales volumes, market trends, and competitor performance.
• Amazon’s Best Sellers Page: Browse Amazon’s Best Sellers page to see which products are trending. This can give you a sense of what customers are currently buying and where there might be opportunities.
• Seasonal Trends: Consider seasonal products or items that see spikes in demand during certain times of the year, such as holiday decorations or summer outdoor gear.

Step 2: Analyze Competitors

• Review Top Sellers: Look at the top-selling products in your chosen category. Examine their pricing, customer reviews, and the number of sellers offering similar products.
• Assess Competitor Listings: Study how competitors structure their listings, including their use of keywords, images, and product descriptions. Identify areas where you can improve or differentiate your product.
• Pricing Strategy: Analyze how competitors price their products. Ensure your pricing is competitive while still allowing for a healthy profit margin.

Step 3: Evaluate Profit Margins

• Calculate COGS: Determine the cost of goods sold (COGS), which includes manufacturing, shipping, Amazon fees, and any other expenses. Your profit margin is the difference between your selling price and COGS.
• Aim for High Margins: Ideally, aim for a profit margin of at least 30% after all expenses. This margin allows you to cover unexpected costs, run promotions, and still make a profit.

Step 4: Consider Product Size and Weight

• Shipping Costs: Smaller and lighter products generally have lower shipping costs, making them more profitable. Consider this when choosing products to sell, especially if you’re using Fulfillment by Amazon (FBA), where fees are based on size and weight.
• Storage Considerations: If you’re managing your own inventory, remember that larger products require more storage space, which can increase your costs.

Information on Where and How to Source Products

Finding reliable suppliers and sourcing high-quality products are essential steps in building a successful Amazon business. Here are some of the most common methods for sourcing products:

Wholesale

• What It Is: Purchasing products in bulk directly from manufacturers or distributors at a discounted rate. You then sell these products individually at a markup.
• Pros: Lower per-unit cost, access to established brands, and the ability to purchase products that are already in demand.
• Cons: Higher upfront investment required, need for storage space, and the risk of holding unsold inventory.
• How to Find Suppliers: Attend trade shows, browse online marketplaces like Alibaba or ThomasNet, or contact manufacturers directly. Build relationships with suppliers to negotiate better terms and ensure a steady supply of products.

Dropshipping

• What It Is: Selling products without holding inventory. When a customer places an order, you purchase the item from a third-party supplier who ships it directly to the customer.
• Pros: Low upfront cost, no need for inventory management or warehousing, and the ability to offer a wide range of products.
• Cons: Lower profit margins, reliance on supplier reliability, and potential for longer shipping times.
• How to Get Started: Research reliable dropshipping suppliers through directories like Oberlo, SaleHoo, or Spocket. Test your suppliers’ reliability before fully committing to ensure they can consistently meet your customers’ expectations.

Private Labeling

• What It Is: Sourcing generic products from manufacturers and branding them under your own label. This approach allows you to create a unique product line with your brand identity.
• Pros: Higher profit margins, full control over branding, and the ability to create a differentiated product that stands out in the market.
• Cons: Higher initial investment, longer time to market, and the need to manage product development and quality control.
• How to Source Products: Use platforms like Alibaba or Global Sources to find manufacturers willing to produce private label products. Ensure you conduct thorough quality checks and negotiate minimum order quantities that align with your budget.

Finding Suppliers

• Online Marketplaces: Websites like Alibaba, Global Sources, and ThomasNet allow you to connect with manufacturers and suppliers worldwide. These platforms offer a wide range of products and allow you to compare suppliers based on price, quality, and reliability.
• Trade Shows: Attending trade shows in your industry can help you meet suppliers in person, see products firsthand, and negotiate better deals. Trade shows are also great for networking and staying updated on industry trends.
• Local Manufacturers: Consider sourcing from local manufacturers, especially for products where quality and fast shipping are crucial. Local suppliers can reduce shipping times and provide more control over production processes.

How to Create Effective and SEO-Optimized Product Listings

Creating a compelling product listing is essential for attracting customers and driving sales on Amazon. A well-optimized listing not only improves visibility but also converts browsers into buyers. Here’s how to create an effective and SEO-optimized product listing:

Step 1: Conduct Keyword Research

• Use SEO Tools: Tools like Helium 10, MerchantWords, and Jungle Scout can help you identify high-traffic keywords relevant to your product. These keywords should be strategically placed throughout your listing to improve search rankings.
• Analyze Competitors: Review competitor listings to see which keywords they are targeting. Look for opportunities to rank for less competitive keywords that are still relevant to your product.
• Amazon Autocomplete: Use Amazon’s search bar to see what keywords automatically populate when you start typing. These suggestions are often the most popular search terms used by customers.

Step 2: Craft a Compelling Product Title

• Include Primary Keywords: The product title is one of the most critical elements for SEO. Include your primary keyword near the beginning of the title.
• Make it Clear and Informative: Your title should clearly describe what the product is, its key features, and any relevant specifications (e.g., size, color, quantity). For example, “Stainless Steel Insulated Water Bottle, 24 oz, BPA-Free, Double-Walled, Keeps Drinks Cold for 24 Hours.”
• Avoid Keyword Stuffing: While it’s important to include keywords, avoid overloading the title with them. The title should be readable and appealing to customers.

Step 3: Write Detailed Bullet Points

• Highlight Key Features: Use the bullet points to highlight the most important features of your product. Focus on the benefits that matter most to customers, such as durability, ease of use, or specific functions.
• Use Descriptive Language: Be clear and concise, but also use descriptive language that appeals to customer emotions and needs. For example, “Keeps drinks cold for 24 hours – perfect for long hikes and hot summer days.”
• Address Customer Pain Points: Think about common concerns customers might have and address them in your bullet points. For example, “Leak-proof design ensures no spills in your bag.”

Step 4: Create an Engaging Product Description

• Expand on the Bullet Points: The product description allows you to go into more detail about your product. Explain how it works, its benefits, and any unique selling points that set it apart from competitors.
• Use Storytelling: Create a narrative that helps customers visualize how your product will improve their lives. For example, “Imagine staying hydrated all day with ice-cold water that never warms up, even after hours in the sun.”
• Incorporate Secondary Keywords: Naturally incorporate secondary keywords into your description to improve search visibility. Ensure the language flows smoothly and doesn’t feel forced.

Step 5: Optimize Backend Keywords

• Use All Available Space: Amazon provides a backend keyword section where you can include additional relevant keywords that didn’t fit in the title or description. Use this space wisely to maximize your product’s visibility in search results.
• Avoid Duplicates: Ensure that the keywords in your backend section are not duplicates of what you’ve already included in the front-end content. This will help you cover more ground without wasting space.
• Focus on Relevance: Only include keywords that are highly relevant to your product. Irrelevant keywords can lead to poor search rankings and may violate Amazon’s policies.

Best Practices for Images and Writing Compelling Descriptions

Images

• High Resolution: All product images should have a minimum resolution of 1000×1000 pixels to allow customers to zoom in and examine the details. High-quality images increase customer trust and reduce returns due to unmet expectations.
• Multiple Angles: Provide images from various angles, highlighting key features, product dimensions, and details that may not be immediately visible. Include close-up shots of important aspects like texture, material, or unique design elements.
• Lifestyle Images: Show the product in use within a real-world context. Lifestyle images help customers visualize how the product fits into their daily lives. For example, a water bottle might be shown in a gym, at a hiking trail, or on an office desk.
• White Background: The primary product image should have a pure white background. This is not only a requirement by Amazon but also ensures that your product stands out clearly without distractions. Additional images can include context or branding elements.

Descriptions

• Storytelling: Go beyond simple descriptions and tell a story about your product. Describe how it solves a problem, enhances an experience, or improves the customer’s life. A narrative approach can create an emotional connection with potential buyers.
• Feature-Benefit Structure: Link each feature of your product to a specific benefit. For example, “Made from BPA-free stainless steel” could be followed by “ensures safe, long-lasting hydration without harmful chemicals.”
• Call to Action: Encourage customers to take the next step with a clear call to action. Phrases like “Add to Cart now and experience the difference” or “Order today and enjoy free shipping” can prompt immediate action.

Fulfillment Options

Amazon offers several fulfillment options, each with its own advantages and considerations. Choosing the right fulfillment method depends on your business model, product type, and operational capabilities.

Fulfillment by Amazon (FBA)

• Overview: FBA allows you to store your products in Amazon’s fulfillment centers. Amazon then picks, packs, and ships your orders, as well as handles customer service and returns.
• Pros: FBA offers several significant advantages, including eligibility for Amazon Prime, which can dramatically increase your product’s visibility and sales. FBA also provides access to Amazon’s vast logistics network, ensuring fast and reliable shipping.
• Cons: The service comes with higher fees, including storage and fulfillment costs. You also relinquish some control over the fulfillment process and are dependent on Amazon’s handling of your products.
• Is FBA Right for You? FBA is ideal if you want to scale your business quickly and don’t have the resources to manage logistics. It’s also a good choice if your products are light and compact, as this reduces storage fees.

Fulfillment by Merchant (FBM)

• Overview: With FBM, you handle all aspects of fulfillment, including storage, packaging, shipping, and customer service. You list your products on Amazon but manage the logistics independently.
• Pros: FBM offers lower fees since you’re not paying Amazon for storage or fulfillment. It also gives you complete control over the fulfillment process, allowing you to maintain direct contact with your customers.
• Cons: FBM requires more time and effort to manage. You need to have efficient systems in place for inventory management, order processing, and shipping. Additionally, products fulfilled by FBM are not eligible for Amazon Prime, which can impact your sales.
• Is FBM Right for You? FBM is suitable for sellers with the capability to manage their own logistics or those selling large, heavy, or custom products where FBA fees would be prohibitive.

Seller Fulfilled Prime (SFP)

• Overview: SFP allows you to fulfill orders directly while offering Prime benefits to customers. This hybrid model combines the control of FBM with the sales boost of Prime eligibility.
• Pros: SFP gives you the best of both worlds: the ability to control your fulfillment process while still offering Prime shipping. This can increase your sales and customer satisfaction.
• Cons: SFP comes with strict shipping requirements. You must meet Amazon’s high standards for delivery speed and reliability, which can be challenging for smaller sellers.
• Is SFP Right for You? SFP is ideal for sellers who have robust logistics capabilities and want to offer Prime benefits without using FBA. It’s also a good option if you want to maintain control over your customer experience while still benefiting from Amazon’s Prime program.

Pricing Strategy

Setting the right price is crucial for attracting customers while maintaining profitability. Here are some pricing strategies to consider:

Competitive Pricing

• Monitor Competitors: Regularly check your competitors’ prices and adjust your pricing to remain competitive. Tools like Keepa and CamelCamelCamel can help track price changes and trends.
• Price Matching: Consider matching or slightly undercutting competitors’ prices to attract price-sensitive customers. However, ensure that this strategy doesn’t erode your profit margins.
• Offer Discounts: Temporary discounts or promotional pricing can boost sales and help clear out slow-moving inventory. Use these strategically to attract new customers or during peak shopping periods.

Dynamic Pricing

• Automated Repricing Tools: Tools like RepricerExpress or Seller Snap automatically adjust your prices based on competitor activity, market demand, and inventory levels. This helps you stay competitive without constantly monitoring prices.
• Real-time Adjustments: Dynamic pricing allows you to respond quickly to market changes, such as increased demand or a competitor’s price drop. This can maximize your revenue while keeping your products competitively priced.

Bundling

• Create Product Bundles: Offer complementary products together at a discounted price. Bundling can increase the perceived value of your offer and encourage customers to buy more.
• Increase Average Order Value: Bundling related products can increase your average order value, boosting your revenue without significantly increasing marketing or shipping costs.

Psychological Pricing

• Use Charm Pricing: Prices ending in .99 or .95 can make products appear cheaper and more attractive to customers. For example, $19.99 is often perceived as more affordable than $20.00, even though the difference is minimal.
• Anchor Pricing: Display the original price next to a discounted price to create a sense of value. For example, “Was $29.99, Now $19.99” highlights the savings and encourages purchases.

Amazon Advertising

Amazon’s advertising platform offers various options to promote your products and increase visibility. Understanding how to effectively use these tools can significantly impact your sales.

Sponsored Products

• What It Is: Sponsored Products are pay-per-click (PPC) ads that appear in Amazon search results and on product pages. These ads are targeted based on keywords that you select, allowing you to reach customers actively searching for related products.
• Best Practices: To maximize the effectiveness of Sponsored Products, focus on selecting relevant keywords and monitoring your campaigns regularly. Adjust your bids based on performance, and use negative keywords to avoid irrelevant traffic.
• How to Get Started: Start by creating a keyword list based on your product’s features and customer searches. Set a daily budget and bid amounts for your keywords. Monitor the performance of your ads and optimize them by adjusting keywords, bids, and targeting.

Sponsored Brands

• What It Is: Sponsored Brands are banner ads that feature your brand logo, a custom headline, and up to three products. These ads appear at the top of search results, giving your brand prime visibility.
• Best Practices: Sponsored Brands are ideal for brand-building and promoting a range of products. Use a compelling headline that captures your brand’s value proposition, and feature your best-selling or most profitable products in the ad.
• How to Get Started: Design your ad with your brand logo and a headline that highlights your unique selling points. Choose products that are likely to appeal to your target audience and that have strong customer reviews.

Sponsored Display

• What It Is: Sponsored Display ads are display ads that appear both on and off Amazon, targeting customers based on their browsing and purchase behavior. These ads are great for retargeting customers who have viewed your products or similar items.
• Best Practices: Use Sponsored Display ads to reach customers who have shown interest in your product or category but haven’t made a purchase. Test different ad formats and messaging to see what resonates best with your audience.
• How to Get Started: Set up your campaign by selecting the products you want to promote and choosing your audience targeting options. Monitor the performance and adjust your targeting and creatives to optimize results.

Dealing with Competition

Competition on Amazon is fierce, but with the right strategies, you can stand out and build a successful business. Here are some tips for dealing with competition:

Differentiate Your Product

• Unique Selling Proposition (USP): Identify what makes your product unique compared to others on the market. This could be a special feature, superior quality, or an innovative design.
• Enhanced Branding: Use your brand to differentiate your product. This includes professional packaging, custom labels, and brand storytelling that resonates with your target audience.
• Exclusive Offers: Consider offering something unique, like a free gift with purchase or a special warranty, that competitors do not provide.

Optimize Customer Service

• Responsive Communication: Ensure that you respond promptly to customer inquiries and concerns. Excellent customer service can lead to positive reviews and repeat business.
• Resolve Issues Quickly: If a customer has a problem with your product, resolve it as quickly as possible. This can help prevent negative reviews and maintain your seller rating.
• Follow-Up Emails: Use follow-up emails to thank customers for their purchase, ask for feedback, and provide support. This can enhance the customer experience and encourage positive reviews.

Monitor Competitor Activity

• Regularly Check Listings: Keep an eye on competitor listings to see how they’re positioning their products. Look for changes in pricing, descriptions, and images, and adjust your strategy accordingly.
• Use Competitor Analysis Tools: Tools like Jungle Scout or Helium 10 offer insights into competitor sales, pricing, and marketing strategies. Use this data to inform your own strategy and stay ahead of the competition.
• Stay Agile: The e-commerce landscape is constantly changing. Be prepared to adjust your strategies quickly in response to new competitors, market trends, or changes in Amazon’s algorithms.

Brand Registry and Intellectual Property

Protecting your brand and intellectual property is crucial on Amazon, where counterfeit products and unauthorized sellers can erode your brand’s value. Amazon’s Brand Registry and intellectual property protection tools can help safeguard your business.

Amazon Brand Registry

• What It Is: The Amazon Brand Registry program allows brand owners to protect their intellectual property and create an accurate brand experience on Amazon. By enrolling in Brand Registry, you gain access to tools that help you manage your brand and fight against counterfeiters.
• Benefits: Brand Registry provides several benefits, including access to Enhanced Brand Content (EBC), which allows you to create visually rich product descriptions. You also gain greater control over your product listings and the ability to report and remove counterfeit or infringing products.
• How to Enroll: To enroll in Amazon Brand Registry, you need to have a registered trademark for your brand. The trademark must be in the form of text or an image, and it must be registered in the country where you plan to sell. Once you have your trademark, you can sign in to Amazon Brand Registry and submit your application along with the required documentation.

Intellectual Property Protection

• Trademark Registration: Ensure your brand name and logo are trademarked in all regions where you plan to sell. This not only helps you protect your brand but is also a requirement for Amazon Brand Registry.
• Copyrights and Patents: Protect your product designs, packaging, and unique content through copyrights and patents. This can prevent competitors from copying your products or infringing on your intellectual property.
• Monitoring and Enforcement: Regularly monitor Amazon and other platforms for potential IP violations. Use Amazon’s tools to report and remove infringing listings, and take legal action if necessary to protect your rights.

Handling Account Suspensions

Amazon has strict policies to ensure a positive customer experience, and violating these policies can result in account suspension. Knowing how to handle suspensions is crucial for maintaining your business on Amazon.

Common Reasons for Suspension

• Policy Violations: Selling counterfeit products, manipulating reviews, or violating Amazon’s listing policies can lead to account suspension.
• High Order Defect Rate (ODR): If your order defect rate exceeds Amazon’s acceptable threshold (typically 1%), your account could be suspended. ODR includes metrics like negative feedback, A-to-Z Guarantee claims, and chargebacks.
• Late Shipment Rate: Consistently late shipments can also trigger suspensions, as they negatively impact customer experience.

Steps to Reinstating Your Account

• Step 1: Identify the Issue: Review Amazon’s notification to understand the reason for your suspension. Amazon will typically provide details on the policy violation or metric that led to the suspension.
• Step 2: Create a Plan of Action (POA): A POA is a detailed document that outlines how you plan to address the issue that led to your suspension and what steps you will take to prevent it from happening again. Be specific and focus on actionable steps.
• Step 3: Submit the POA: Submit your POA through Seller Central. Be sure to follow Amazon’s instructions carefully and include all requested information.
• Step 4: Follow Up: After submitting your POA, monitor your email for a response from Amazon. If your plan is accepted, your account will be reinstated. If not, revise your POA based on the feedback provided and resubmit it.

Tips to Avoid Suspension

• Stay Informed: Regularly review Amazon’s policies and updates to ensure you’re always in compliance. Join Amazon seller forums and groups to stay updated on changes that could affect your business.
• Monitor Performance Metrics: Keep a close eye on your account health, including metrics like ODR, late shipment rate, and customer feedback. Address any issues promptly to avoid falling below Amazon’s standards.
• Provide Excellent Customer Service: Good customer service can prevent negative feedback and disputes, which are key factors in maintaining a healthy account.

Inventory Management

Effective inventory management is essential for ensuring you have enough stock to meet demand without overstocking, which can tie up capital and increase storage costs. Here’s how to manage your inventory effectively:

Importance of Inventory Management

• Avoid Stockouts: Running out of stock can lead to lost sales and negatively impact your product’s search ranking. Customers may turn to competitors if your products are consistently out of stock.
• Minimize Storage Costs: Overstocking ties up your capital and increases storage costs, especially if you’re using FBA. Efficient inventory management helps you strike the right balance between having enough stock and minimizing unnecessary storage fees.
• Improve Cash Flow: By managing inventory effectively, you can improve your cash flow, allowing you to reinvest in your business and take advantage of new opportunities.

Tools and Techniques

• Inventory Management Software: Tools like InventoryLab, Sellerboard, or RestockPro can help you track inventory levels, forecast demand, and automate reordering processes. These tools provide insights into your inventory performance and help you make informed decisions.
• Regular Audits: Conduct regular physical inventory audits to ensure your stock levels match your records. This helps prevent discrepancies and ensures accurate inventory reporting.
• Reorder Alerts: Set up reorder alerts based on lead times and sales velocity to avoid stockouts. These alerts can help you maintain optimal inventory levels and reduce the risk of running out of stock.

Managing FBA Inventory

• Monitor Inventory Health: Use Amazon’s inventory performance dashboard to track your FBA inventory. The dashboard provides insights into inventory age, excess stock, and restock recommendations.
• Restocking: Plan your restocking based on sales trends, lead times, and upcoming promotions. Ensure that you’re sending inventory to Amazon’s fulfillment centers in a timely manner to avoid stockouts.
• Avoid Long-term Storage Fees: Amazon charges long-term storage fees for inventory that remains in their fulfillment centers for more than 365 days. Regularly review your inventory to identify slow-moving items and consider running promotions or discounts to clear out old stock.

Handling Seasonal Demand

• Plan Ahead: Analyze past sales data to anticipate seasonal demand fluctuations. Increase your inventory levels for peak seasons like holidays, back-to-school, or summer, and reduce them during off-seasons to minimize storage costs.
• Flexible Supply Chain: Work with suppliers who can accommodate changes in order volumes, allowing you to scale up or down based on demand. This flexibility is crucial for managing seasonal spikes without overcommitting to inventory.
• Promotions and Discounts: Use seasonal promotions and discounts to boost sales during slow periods. This can help you move excess inventory and maintain a steady cash flow.