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Selling internationally through Amazon is what forward-thinking people and businesses in Singapore have been doing for a long time. It’s a cheap and effective way of entering a foreign market and getting started might be easier than you think.
Here at WorldFirst, we deal with thousands of people selling online and we’ve compiled a list of the most common questions our Singapore eCommerce team get asked every day – which will hopefully help you learn how to sell on Amazon.
Who are Amazon?
Amazon is a global marketplace that boasts over 300 million active customers, in 189 countries. Selling everything from electronics and sporting goods, to clothing and beauty products, it’s the go-to for shoppers in many countries. The search term ‘Amazon’ receives between 80-120 million hits a month in the USA alone and it is estimated that over 50% of buyers in the US start their search on Amazon.
In recent years Amazon has also launched in Singapore and Australia.
Which product categories work the best?
Amazon have over 30 categories listed on their marketplace. The great thing about this platform is that the sheer volume of active buyers means there is always demand for the right product. WorldFirst have seen recent trends of growth in some product categories such as pet products, toddler clothing, watches and jewellery.
What are the costs associated with selling on Amazon?
- Selling fee: US$39.99 per month (approximately SGD $54.05) for professional plan; US$0.99 per item sold for individual plan
- Amazon Referral fee: 8%-15% for most product categories
- Fulfillment by Amazon (FBA) fee. This cost varies per item and can be calculated online.
How does fulfilment work?
Fulfillment by Amazon (FBA) is a warehousing and customer fulfillment option which makes running your business from the other side of the world easy. You send your stock to Amazon’s warehousing facilities and they take care of fulfilling orders on your behalf. Amazon Prime is a subscription service which offers same-day delivery and is a key part of many sellers’ strategy.
Source: Amazon Global Selling
What are the costs associated with selling on Amazon?
- Monthly selling fee: US$39.99 (approximately SGD $54.05)
- Referral fee: 8%-15% for most product categories
- Fulfillment by Amazon (FBA) fee. This cost varies per item and can be calculated online.
How does WorldFirst help Amazon sellers?
WorldFirst opens up international virtual receiving accounts for the countries you’re selling in. If you’re located in Singapore and selling on Amazon US, we will open up a US virtual account, which plugs into Seller Central. This means you can repatriate your USD earnings from your Amazon seller account to your local bank account or use your foreign earnings to pay your suppliers. This helps you manage the risk of currency fluctuations and save costs to achieve better exchange rates on your transfers.
How do people find my product?
Once your stock is with FBA and your listings are ready to go, you’ll need to drive traffic to your page to make sales and obtain customer reviews. One of the best ways to promote your products is through Amazon Sponsored Products.
Amazon Sponsored Products is a pay-per-click scheme that makes your product more visible in your category. The more orders and reviews you achieve, the higher you’ll rank in your category which should, in theory, mean less reliance on pay-per-click.
What are the steps to getting started on Amazon?
If you’re an existing business, or an individual thinking of selling through Amazon, the first step is to research the potential demand in that foreign market. A great place to start is browsing Amazon.com in the country of choice to get a feel for what’s doing well. Google key word search volumes, and tools like Jungle Scout, can also be used in the research and planning phase.
If you’re an individual looking to sell something new, sourcing your products and finding reliable suppliers is the second step once you’ve completed your research. Alibaba is a popular destination for sourcing products for Amazon.
Next, you’ll need to launch your Amazon listing:
- Create an Amazon seller account
- List your product
- Promote your products – Advertisements on Amazon
- Customer fulfillment – FBA or other shipping options
- Register for an Online Sellers account with WorldFirst online
Looking for more resources?
Visit our online seller content hub
WorldFirst works with thousands of people selling on Amazon globally. Contact us for any questions relating to Amazon, foreign exchange or other marketplace selling.
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