We at Tax121 Accountants have a lot of experience dealing with Amazon Sellers and below is a short blog of things we've learnt based on the successful growth of our clients which hopefully should be helpful to others
How can I sell successfully on Amazon?
Essentially, Win the 'Buy Box'
The Buy Box is the familiar box with the yellow button on Amazon that most customers will click. If you want clients to buy from you rather than your competition, you need to 'win' this.
The one single winner for any product is selected by Amazon from all the multiple sellers and this is your holy grail.
Ok, so how do I 'win' the Buy Box?
There is no simple answer, but some things are obvious and essential which we have listed below. Some of these will cost you money, but you should see it as an invesment. You've got to spend money to earn money afterall:
Pay for a Professional Seller account (required)
Ensure total price incl shipping is competive - Ideally you're the cheapest
Get Reviews - Lots of them and with 5 stars so spend time and effort on this
Use Fulfillment by Amazon (FBA)
Ensure you have items in stock - you will lose your Buy Box if you run out not to mention valuable sales
Thats all well and good but with so many competitors how can I achieve all this?
Yes, you are right that with Global competition from sellers, it is very hard to be the one chosen seller. Below are a few tips on what to do and they show the type of businesses that are most successful on Amazon
Sell products that are unique to you so you avoid costly competition
Sell second hand or refurbished products
Sell products where there are few reviews currently. Then work on selling the most and being the seller with the most number of reviews. This can't be stressed enough
Sell cheaper than everyone else
Ensure your products don't require a refund or returns
Ensure your products are always in stock
Thanks, that is so useful. What do i need to worry about from an accounting perspective?
Tax121 Accountants will guide you on what you need so you avoid costly mistakes and make a success of your business. Some things you will need to consider are:
Brexit and it's implications for importing and exporting goods to Europe
VAT in UK, EU and rest of the world
Directors obligations in terms of producing annual Accounts, Tax Returns, Confirmation Statements etc
Management Accounts so you get valuable insights on where your business is profitable and where it's costing too much in money and time
Tax guidance for the company and for shareholders so you pay the least amount of tax necessary
Want to know more?