November 14th, 2024

New Amazon Sellers guide for the US and Canada

Starting your journey to sell on Amazon in the US and Canada is an exciting possibility for e-commerce success.

This guide for new Amazon sellers is crafted to assist you through each key phase of establishing a thriving online business, addressing different aspects for both markets.

Read on to learn more.

Create an Amazon seller account

To start selling on Amazon, you’ll need to either log in with your existing customer account or create a new Amazon seller account using your business email. Before you sign up, make sure you’re ready with the following:

Business email address or Amazon customer account
Chargeable credit card
Government ID (identity verification protects sellers and customers)
Tax information
Phone number
A bank account where Amazon can send you proceeds from your sales

Afterwards, you will need to select a selling plan. With the Individual plan, you’ll pay CAD 1.49 / USD 0.99 every time you sell an item. The Professional plan costs CAD 29.99 / USD 39.99 per month, no matter how many items you sell. For both plans, Amazon also collects a referral fee on each sale, which is a percentage of the total transaction and varies by product category.

Protect your brand

Consider enrolling in Amazon Brand Registry to safeguard your intellectual property and unlock valuable tools such as A+ Content and Amazon Stores.

To access Amazon Brand Registry in both the U.S. and Canada, sellers must meet certain key requirements:

Registered Trademark:
- The trademark must consist of text-based words or images (design/logo).
- In the U.S.: A registered trademark with the United States Patent and Trademark Office (USPTO).
- In Canada: A registered trademark with the Canadian Intellectual Property Office (CIPO).
- The trademark must appear on your products or packaging, and it can be a word mark or a design mark (logo).
- A trademark (either pending or active) in any country allows access to A+ Content and Amazon Stores globally. For instance, if you have a pending CIPO trademark, you can create A+ Content across all Amazon marketplaces.
- However, to enforce intellectual property rights and file complaints against counterfeiters, you need an active trademark in the country where the infringement occurs. For example, if your trademark is active in Canada but not in the U.S., you cannot file a complaint in the U.S. market against a logo infringement.
Amazon Seller or Vendor Account: You need to have an active Amazon Seller or Vendor Central account to enroll.
Eligibility for Global Brands: You can enroll in Amazon Brand Registry for any marketplaces where Amazon operates, as long as your brand has a trademark in those markets.
Legal Authorization: You must be the trademark owner or an authorized agent to enroll the brand into Amazon Brand Registry.

Helpful Links:

By enrolling, brands gain access to additional tools like brand protection, A+ content, and marketing features to better control their listings and improve customer trust.

A+ Content can also help you enhance product listings with high-quality images, videos, and detailed descriptions, which can significantly improve product visibility and conversion rates.

Craft your product selection strategy

Choosing which products to offer on Amazon is a key aspect of your business strategy, especially if you already have an existing portfolio. Begin by conducting thorough market research to determine which products from your current lineup align with Amazon’s policies and fees.

Consider critical factors such as product size, weight, and sales turnover, as these will impact Amazon’s fees and influence your profitability. Use resources like Amazon’s Best Sellers lists and product reviews to understand market trends and consumer preferences in both the US and Canadian markets. Analyzing customer reviews and product ratings can provide insights into what consumers value and help refine your selection process.

Avoid overly competitive niches to ensure better chances of success. While high-demand categories may seem appealing, they often come with fierce competition. Instead, focus on finding profitable products that align with your existing portfolio but are not oversaturated in the marketplace.

For example, you can compare whether offering a larger size or a two-pack of a smaller size provides better profit margins. In making this decision, other factors may also play a role, such as convenience, avoiding waste, and flexibility (e.g., using one and keeping the other as a backup).

Integrating these considerations with your product search strategy will help you optimize your Amazon business strategy effectively.

Amazon’s Product Opportunity Explorer is a tool that helps sellers and brands identify emerging product opportunities on the platform. It provides insights into customer demand, search behavior, and unmet needs across specific categories. By using this tool, brands can discover high-potential niches, understand market trends, and make data-driven decisions for product development and expansion. The insights offered by this tool help brands identify new opportunities to introduce products that are more likely to succeed.

You can access the Product Opportunity Explorer via this link: Amazon Product Opportunity Explorer.

It gives brands:

Demand Insights: Data on search volumes and customer demand in different categories.
Sales Performance: Information on sales trends, growth rates, and competition levels.
Opportunity Identification: Highlights potential gaps in the market for unmet customer needs.
Keyword Trends: Insights into popular and rising search terms relevant to specific product categories.

What can you sell on Amazon?

It depends on the product, the category, and the brand. Some categories are open to all sellers, some require a Professional selling account, some require approval to sell, and some include products that cannot be sold by third-party sellers. Listing your products into your Seller Central account will show any restrictions and requirements.

List your products

To create product listing details, you will need:

A product identifier, such as GTIN, UPC, ISBN, or EAN to specify the exact item you’re selling. You can get a UPC code directly from GS1, or request an exemption.
An SKU, which is a product ID you create to track your own inventory
Offer details, including price, product condition, available quantity, and shipping options
Product details like name, brand, category, description, and images. Titles, images, bullet points and variations have certain rules you need to follow. We recommend going through each one with time before trying to complete them.
Keywords and search terms to help customers find your product

In your Amazon account, go to Catalog > Add Product, select the appropriate category, and enter your product details. Set up your inventory and shipping options, and once everything is ready, simply publish the product. For more guidance, refer to the detailed instructions available on Amazon Seller Central’s guide.

Optimize listings

Utilizing effective SEO techniques determines how well your products rank in search results. By strategically incorporating relevant keywords into your product titles, bullet points, and descriptions, you increase the chances of your listings appearing at the top of search results. Use keyword research tools to identify the most relevant and high-traffic keywords for your product category.

Utilize high-quality product images that showcase your product from various angles and in different usage scenarios. Amazon recommends using images with a minimum size of 1000 x 1000 pixels to ensure they are clear and visually appealing. Quality images are essential for attracting potential buyers, as they not only showcase the product but also convey essential information through images with text.

Well-crafted images not only help customers understand what they are buying but also improve your product’s chances of ranking higher in search results.

Understand the fee structure

The cost of selling in the Amazon store depends on which selling plan you choose, which category of products you sell, and how you plan to fulfill orders.

Referral fees: Amazon charges a referral fee for each item sold. The amount depends on the product category. Most referral fees are between 8% and 15%.
Fulfilment fees: The cost to ship your orders depends on whether you fulfill your own orders or use Fulfilment by Amazon (FBA).
1. FBA (Fulfilment by Amazon): Fee per unit includes picking and packing your orders, shipping and handling, customer service, and product returns. Fees are based on the weight and dimensions of your product.
2. Fulfilment by Seller: When you fulfill orders yourself, Amazon charges shipping rates based on the product category and shipping service selected by the customer, and then passes the amount on to you in the form of a shipping credit.
Other costs: Some sellers may incur additional fees (such as long-term storage fees) or pay for optional programs like advertising or premium account services. There are several fees to consider; ultimately, sellers should be aware that the total cost of selling on Amazon typically ranges from 25% to 55% of the product’s retail price.

Familiarize yourself with these fees to shape your business strategy effectively, from listing products to managing earnings.

Correct prep and packing ultimately help maintain a smooth supply chain, minimize costs, and improve your seller performance on the platform. For more details on product preparation requirements and how to prepare common product types, we recommend you to check Packaging and prep requirements in Seller Central.

Set competitive prices

In today’s marketplace, many customers actively seek out the best price for the products they wish to purchase.

Amazon uses automated web scans to confirm price competitiveness, checking if the product’s price matches or is lower than those found on other websites. If Amazon detects a lower price elsewhere, it will notify the seller, requiring an adjustment to maintain the Prime badge eligibility. This practice helps Amazon provide competitive pricing for Prime members while ensuring sellers meet the platform’s pricing standards.

Understand Amazon’s policies and compliance

Amazon’s policies and compliance guidelines ensure a fair and trustworthy marketplace. Sellers must adhere to regulations on product safety, authenticity, and intellectual property.

Violations such as selling counterfeit goods, misleading listings, or restricted products can result in account suspension.

Additionally, Amazon enforces rules around customer service, including timely order fulfillment and accurate product descriptions.

It’s important to note that compliance issues can sometimes arise from Amazon’s side, leading to situations where you may need to repeatedly reinstate a listing or demonstrate your brand registration. This may be due to an Amazon policy update or a routine listing review in which they identify certain information that needs verification.

These unintended errors can be frustrating but addressing them promptly and effectively is essential to safeguarding your brand’s reputation and ensuring smooth operations on the platform.

We recommend you to be prepared to invest time in demonstrating compliance for your products, particularly in categories such as cosmetics, health products, baby products, and others. Ensuring adherence to regulations and standards is essential for building trust with customers and maintaining your listings on the platform.

Prep and pack your products

Customers often prefer products with the Amazon Prime badge, which you can obtain by using Fulfillment by Amazon (FBA) to ship products from one of Amazon’s fulfillment centers.

Prepping and packing shipments correctly for Amazon is crucial for several reasons:

Inventory Protection: Proper packaging ensures that products arrive safely at Amazon’s fulfillment centers without damage, reducing the risk of returns, lost sales, and dissatisfied customers.
Compliance with Amazon Guidelines: Amazon has strict requirements for shipment preparation. Failure to follow these guidelines can result in delays, additional fees, or refusal of your shipment.
Efficiency in Fulfillment: Well-prepared shipments allow Amazon’s fulfillment centers to process, store, and ship your products efficiently. This leads to faster delivery times and a better customer experience.
Avoiding Penalties: Incorrect labeling, poor packaging, or failure to meet Amazon’s standards can lead to penalties such as extra charges, suspension of shipments, or even account suspension.
Customer Satisfaction: By ensuring products are properly prepped, packed, and delivered on time, sellers can maintain a high level of customer satisfaction, leading to positive reviews and repeat purchases.

Failing to properly prep and pack Amazon shipments can lead to delays in processing, penalty fees for corrective handling, and increased risk of product damage, all of which may result in customer dissatisfaction and negative reviews. Consistent non-compliance could also trigger account warnings or even suspension, impacting your ability to sell on Amazon. Proper prep ensures smooth processing, customer satisfaction, and helps avoid these costly issues.

Advertise your offers

Improve the visibility of individual products and boost brand awareness by advertising in search results and on product pages.

Pay-Per-Click (PPC) advertising on Amazon offers a powerful tool for sellers looking to boost visibility, drive sales, and grow their brand in the competitive marketplaces of the US and Canada.

For beginners navigating the complexities of Amazon PPC, understanding the basics and employing effective strategies are key to leveraging this advertising platform for maximum return on investment (ROI).

If you want to learn more about this subject, feel free to continue reading this article.

Amazon Vine and promotions

Amazon Vine is a program that invites the most trusted reviewers, known as Vine Voices, to share their opinions on new products, helping customers make informed purchasing decisions.

Selected based on the quality of their previous reviews, these reviewers can receive free units of your products in exchange for their feedback. Sellers need to contemplate reviews are not guaranteed.

Participating in Vine can boost sales and guide customers in their choices regarding your offerings.

To participate, sellers must meet certain prerequisites, including being the brand owner of the products they intend to list. Additionally, products should meet other criteria, such as having fewer than 30 reviews on their detail pages to qualify. Other requirements apply, ensuring that items meet Amazon’s eligibility standards.

Once the enrollment is complete, consider you will be charged up to USD 200 / CAD 240 enrolment fee once per parent ASIN after the first Vine review is published. You will not be charged a fee if the enrolled product does not receive any reviews within 90 days of enrolment.

For more information, you can visit Seller Central.

Promotions

You have several options for creating a promotion, including:

Percentage-off
Buy one, get one free
Deals
Coupons

You can check more detailed suggestions and restrictions in Seller central.

Launch!

Launching an Amazon seller account is just the beginning of your e-commerce journey. Once your account is active, it’s essential to monitor sales, optimize your listings, and engage with customers to build a solid reputation.

Regularly analyzing performance metrics, managing inventory effectively, and running targeted marketing campaigns will help you stay competitive.

Additionally, staying informed about Amazon policies and market trends will allow you to adapt your strategy and foster long-term growth.

Key Post-Launch Tasks:

Monitor Sales and Performance: Track daily sales and analyze data for insights. After the first month, you can switch to weekly analysis.
Optimize Product Listings: Continuously update titles, descriptions, and images based on performance. You can also try A/B testing to compare different versions and finally choose the best performing one.
Engage with Customers: Respond promptly to inquiries and monitor reviews to enhance customer satisfaction.
Run Marketing Campaigns: Set up and manage Amazon PPC ads and consider promotions to attract buyers.
Refine Fulfillment Strategy: Evaluate and adjust your fulfillment methods to ensure efficiency and customer satisfaction.

Conclusion

Embarking on the journey of selling on Amazon in the U.S. and Canadian markets presents both exciting opportunities and challenges. To succeed, new sellers need a strong foundation – from creating a correctly set-up seller account to selecting the right products and managing fulfillment options.

However, successful selling goes beyond setup. Regularly refining strategies—such as monitoring performance metrics, optimizing listings, and analyzing customer feedback—helps new sellers stay competitive.

Amazon’s tools, like Brand Registry and the Product Opportunity Explorer, provide valuable insights and protection, enabling you to innovate and grow strategically. By leveraging these resources and staying adaptable to trends and customer needs, sellers can build a long-term, profitable business on Amazon in both the U.S. and Canada.