Kevin David Shows You How to Sell on Amazon
First let’s dive into a summary of who Kevin David is, for those who haven’t seen his face online yet. He is a few things, an investor, an entrepreneur, and an author, and all are very successful ventures that he started from scratch when he was still in his early 20s. Nowadays he is known for his eCommerce online business, YouTube channels, and digital online courses. All in all, he has done well for himself and made millions because of it.
As a result, we thought we would take a page out of his book on one avenue that he has gained financial freedom with, and tap into what he says ‘selling on Amazon’ involves.
Which One to Go For?
When selling on Amazon you typically have two options, either you sell as an individual or a professional. This is the Amazon FBA (fulfilment by amazon) that everyone’s talking about. But before you jump in you need to at least learn the basics. This link, directly from the Amazon website will help take you through this, from what it is to sign up, doing product research, and improving sales and other helpful information.
Coming back to those two seller accounts, if you choose to go with the Individual seller account, it is summed up by Amazon as a type of “pay-as-you-go” plan. This plan enables sellers to create listings individually by matching to existing ones or creating new pages. So, for instance, he has an individual page dedicated to selling his Amazon FBA online course – he teaches people how to do it and you can join the course. There are just over 500,000 ‘Ninjas’ (people who bought the course) who have purchased the course some of which have quit their day jobs.
The other characteristic of this plan is that it doe not cost much, in fact, the only time you pay fees is when one of your product sells on Amazon, then you pay $0.99 per product sold.
If any other fees are associated with it, they will be the fee of being an Amazon seller such as a referral fee, and fulfilment fee for FBA sellers. Amazon usually decides what the shipping rates and providers will be. To work it out yourself, there are online calculators that can help you such as this one https://salecalc.com/amazon
The Advantages of Being an Individual Seller
As mentioned earlier there is no monthly fee for you as a seller, and the only fee will come out when a product gets sold.
Secondly, you can learn how to do it properly at your own pace, but point to note is not to stick with this plan for too long and upgrade to a professional account within a few months to a year, if you are looking to make any money out of it.
A Few Down-Sides
Of course, it can’t be all roses with this type of a business, and when you start making money and you start getting charged that $0.99, it adds up and there is a tendency of losing more money than you are making.
Because this is a basic account, it is highly unlikely that you will get approval to sell particular high-niche or restricted categories of products such as fine art or collectibles, and that’s where the real money is. You can’t upload multiple products and you are not allowed to gain any winnings from items such as Buy Box, which makes up more than 80% of all sales on the platform.
The second option to choose from is to go straight to becoming a professional seller on Amazon.
The difference here is that with this account you will be paying a monthly subscription fee of $39.99, whether you sell or list anything and this is non-refundable. Most mid-sized to large businesses use this option to sell their products because you are given a wide choice of advanced seller tools and options that are beneficial to you. It is very likely that Kevin David may have thought this to be too much initially, but now he earns millions, so the investment was worth his while.
The other types of fees you pay would be the fee of being an FBA seller, referral fees, and closing fees. If you want to build a profitable business and are serious about this root, then this would be the better option of the two.
The benefits include being able to upload multiple products at a time, winning a Buy Box, advanced tools such as SellerZen or Repricers, you can sell those high-prices restricted products such as fine art, plus you can draw your report using tools available to you.
Looks like there are lots more advantages to choosing a professional account, however, this is not recommended for individuals who are not serious about making profits or who don’t intend to sell more than 40 products a month, and is probably best to practice first using the individual seller account for a year to get the hang of it. you can upgrade or even downgrade your account at any time.