Best Advice for New Amazon Sellers in 2020

Last Updated:

January 6, 2020

Among the plethora of business opportunities available online, selling on Amazon is one of the most stable as well as legit business opportunities which you can pursue. That does not mean that it is easy to sell on Amazon.

When you start selling on Amazon, you would realize that in each and every product category, the competition is immense. Therefore, instead of just plunging into the pool of Amazon sellers, it is important to follow a few tips to create your Amazon Marketplace business.

1. Using the analytics to your advantage: 

 The sheer number of products which are being sold on Amazon is overwhelming. Each and every product category has multiple sellers. This, however, does not mean that opportunities do not exist among these products. You have to just look at the market which is under-served.


If the market is having negative reviews, that is icing on the cake. In order to find such niches, you have to use big data to your advantage. Instead of manually going through the product reviews and finding negative reviews, it is a much better idea to use a tool like Jungle Scout to use the analytics up to your advantage.

2. Creating a scalable business: 

When selling on Amazon or in any other kind of business, it is only 20% of the total tasks which would be bringing in 80% of your revenue. Rather than trying to accomplish these 20% tasks by yourself, it is a much better idea to hire competent employees in order to make them work on your behalf day in and day out. This would ensure that you are able to quickly scale up your business.


The things which you should focus on most when it comes to Amazon selling include:


  • Choosing the right product with the help of analytics
  • Gathering honest product reviews for your product
  • Creating a proper listing
  • Using Amazon pay per click to drive traffic

When you are able to repeat this procedure for each and every product, it would be comparatively easier for you to kickstart each and every listing on a positive note.

3. Getting the product at the right cost:  

You need to understand that essentially you are competing with hundreds of other sellers on amazon. Therefore, getting the product at the right cost is pretty important. Moreover, you have to keep limited margins in order to get those initial reviews. Once you are able to do that, it would become easier for you to kick-start your product selling business on Amazon.

4. Using the rewards program: 

While purchasing the inventory, you have to be smart in order to gain additional discounts. When you’re buying in bulk, by choosing the right gift cards or credit cards, you would be able to stack up reward points. You can use these additional reward points in order to buy even more inventory. This would help you in reducing the cost of the overall inventory.

5. Using precise titles: 


Many of the sellers make the mistake of adding a part of the description of the product to the title. This would only confuse the buyers. You need to understand that when the buyer is on Amazon, he’s already in the buying mood. Therefore, it is important for you to use precise and brief titles which would lure them to the listing rather than using confusing and vague titles for the product.

5. Using Fulfillment by Amazon:

Many sellers try to handle the logistics part by themselves. The problem is that they simply do not have the economy of scale in order to reduce the logistics cost. Moreover, they are not able to dispatch the products quickly in many cases.


If you want to scale up your business quickly, it is important to use fulfillment by Amazon. This would ensure that you are able to directly hold your inventory in Amazon warehouses. This would automatically enable you to dispatch the products quickly as fulfillment would be done by Amazon.

6. Taking reviews seriously: 


You need to understand that even a single negative you can hurt your sales significantly. Therefore, when the customers are unsatisfied, it is a good idea to contact those customers and solve their doubts. Only once you are doing so, you would be able to take care of the reviews which would help you in getting consistent sales.

7. Opt for white label products: 


If you really want to scale up your Amazon business quickly, rather than focusing on inventing the product, it is a better idea to opt for the white label products. This would ensure that the manufacturing part would be handled by the experts. You would be able to directly get the ready product in your hand which you can sell on Amazon. This would help you in Scaling up your business quickly.

8. Reduce costs:

Many of the sellers think that it is actually a cakewalk to get sales on Amazon. The truth is that you have to be the most affordable seller in the category in order to get consistent sales. In order to do so, you have to manage your costs well. Some of the areas where you can reduce your costs include:


  • Procurement
  • Better inventory management
  • Better employee utilization
  • Packaging costs

If you focus on these aspects of your business carefully, you would be able to reduce your product cost by at least 4% to 5% which is more than enough to become the most affordable seller in the category.

9. Staying away from the seasonal products:

Most of the seasonal products would increase your sales only for a month or two. The problem is that if you’re left with the inventory, you only have a chance to sell those in the next year. This can significantly increase your working capital which would increase the overall cost of your business rendering you uncompetitive. Therefore, as far as possible you have to avoid seasonal products.

10. Creating the right product descriptions:

When you’re selling on Amazon, the customers would not be able to feel or see the product. Therefore, the only way in which they would be able to know more about the product is through the description. You have to include a detailed description of the product which answers most of the questions and queries of the customers. This would significantly help you in increasing the conversion rate of your listing.