Entering the world of e-commerce can be both exciting and daunting. One popular platform that has recently expanded its reach is Amazon Australia. This article will explore the opportunities and challenges of selling in this rapidly growing marketplace in the Australian market.
Whether you’re a seasoned seller or a newcomer to online retail, Amazon Australia offers a wealth of potential. We’ll cover the basics of getting started, from setting up your account to choosing the right products and strategies to optimize your sales.
Need to Know Before Start Selling on Amazon Australia
Market Research
Before diving into the Amazon Australia marketplace, conducting market research is crucial. Analyzing product demand, competition, and the target audience is essential for success. Utilize tools such as keyword research, customer reviews, and competitor analysis to make informed decisions. You should also learn the monthly subscription fees on the Amazon marketplace.
Registering for an Amazon Seller account is the first step towards selling on the platform. Choose between Individual and Professional account types, based on the estimated sales volume. Both account types have benefits and fees, so analyze your business needs before signing up.
Understanding Amazon’s Fees and Pricing Structure
Amazon charges fees for selling, which include referral and subscription fees, as well as fulfillment costs. Comprehend these fees, calculate profitability, and price products appropriately. Use Amazon’s Revenue Calculator to estimate fees and revenues associated with your products.
Understanding the seller verification process is vital. Amazon requires sellers to complete verification during account registration. The process includes submitting personal and business information and tax and identity documents. Familiarize yourself with the guide to ensure a smooth verification process.
Consider Your Growth Strategy
Develop a growth strategy before starting to sell on Amazon Australia. Consider expanding your product range, optimizing your listings, enhancing your customer service, and learning from feedback. Monitor your performance metrics on the Seller Central dashboard to improve and grow your Amazon Australia business continually.
Effective inventory management is vital for maintaining consistent sales and ensuring customer satisfaction. Implement an inventory tracking system and utilize Amazon’s fulfillment services like Fulfillment by Amazon (FBA) for seamless logistics and delivery.
Fulfillment by Amazon (FBA) and its benefits for sellers
With Amazon FBA, sellers can store their products in Amazon’s warehouses, where Amazon manages the storage, packaging, and shipping logistics. FBA offers several benefits:
Prime Shipping: FBA products are eligible for Amazon Prime, increasing visibility and driving more sales.
Customer Service: Amazon takes care of customer service, managing inquiries, returns, and refunds.
Alternatively, sellers can opt for Fulfilled by Merchant (FBM), wherein they handle the storage, shipping, and customer service themselves. Comparing the two models:
Expansion Opportunities: Using FBA, sellers can easily enter international markets.
Overall, Amazon FBA can be a worthwhile investment for those looking to sell on Amazon Australia, but individual sellers must assess their specific circumstances and preferences.
How Much Does It Cost to Sell on Amazon Australia?
Professional Seller: AUD $49.95 per month (plus GST) and no per-item fee
Individual Seller: No monthly fee; instead, a fee of AUD $0.99 per item sold applies
In addition to subscription and per-item fees, there are referral fees based on the product category, and these fees typically range from 6% to 45% of the item’s sale price.
Additional Costs, Such as Shipping, Storage, and Advertising
As an Amazon Australia seller, you need to also consider the costs of shipping, storage, and advertising. Shipping costs will depend on the method you choose, for example:
Fulfillment by Amazon (FBA): Fees are based on the size and weight of your products, with additional long-term storage fees if inventory remains unsold for more than 365 days
Self-Fulfillment: You’re responsible for handling and shipping your products, and the costs will vary based on your chosen carriers and the weight and dimensions of your packages
Advertising costs depend on the type of campaign you run, such as Sponsored Products or Sponsored Brands, and your advertising budget.
Tips for Minimizing Costs and Maximizing Profits
To keep expenses in check while selling on Amazon Australia follow these tips:
Choose your seller type wisely: Evaluate your sales volume and choose between Professional and Individual seller plans based on your needs
Optimize shipping and storage: Consider FBA, or negotiate more favorable rates with carriers if self-fulfilling orders
Be strategic with advertising: Focus on high-performing products, set an appropriate budget, and continuously monitor the performance of your campaigns
How Do I Get Products to Sell on Amazon Australia?
Sourcing products from local and international suppliers
Begin by researching potential local and international suppliers to source products. Consider attending trade shows, browsing online marketplaces such as Alibaba, and seeking recommendations from fellow sellers. When evaluating suppliers, take note of their reliability, product quality, and shipping capabilities.
Understanding product sourcing regulations and restrictions
Familiarize yourself with import regulations and restrictions for bringing products into Australia. This includes checking any licensing requirements, adhering to product safety standards, and understanding customs duties and taxes. Additionally, ensure your products comply with Amazon Australia’s specific selling guidelines.
Tips for negotiating with suppliers and finding high-quality products
When negotiating with suppliers, be transparent about your needs and expectations. Discuss competitive pricing, order quantities, and product specifications. Establish long-term relationships with reputable suppliers by maintaining clear communication and building trust over time. Lastly, consider ordering samples to evaluate product quality before committing to larger orders.
Research: Attend trade shows, search online marketplaces, and gather recommendations.
Negotiation: Be transparent, build trust, and evaluate product quality through samples.
Shipping Products to Amazon FBA Australia
In this section, we will discuss the intricacies of shipping products to Amazon’s Fulfillment by Amazon (FBA) program in Australia. We will cover Amazon’s shipping and labeling requirements, choosing the right shipping method and carrier, and tips for reducing shipping costs and avoiding delays.
Explanation of Amazon’s Shipping and Labeling Requirements
It’s essential to compare the costs, features, and track record of each carrier to identify the best option for your business.
Tips for Reducing Shipping Costs and Avoiding Delays
Effective planning and organization can help minimize shipping costs and prevent delays. Here are some suggestions:
Consolidate shipments to send fewer, larger shipments instead of multiple smaller ones
Choose the right packaging materials and size to avoid dimensional weight surcharges
Monitor carrier performance and switch carriers if needed to ensure timely deliveries
Conclusion
Expanding the business to Amazon Australia offers a promising opportunity for sellers to tap into a growing market. With relatively low competition and an increasing customer base, it’s an excellent time to enter the Australian marketplace.
It’s crucial to adhere to Australian regulations, tax laws, and product compliance standards to avoid any legal issues. In addition, leveraging Amazon Advertising and optimizing product listings can make a considerable difference in reaching the target audience and boosting sales. By considering these aspects, sellers can confidently make their mark in the Amazon Australia market.
Frequently Asked Questions
In this section, we’ll address some frequently asked questions regarding selling on Amazon Australia.
What is the best way to research products to sell on Amazon Australia?
The most effective way to research products is to use Amazon’s Best Seller Rank (BSR), explore market trends, and utilize product research tools like Jungle Scout or Helium 10. These tools provide valuable insights into product demand, competition, and sales projections.
How long does it take to start selling on Amazon Australia?
Setting up an Amazon Australia account can take a few days, while product listings may take an additional 1-2 weeks, depending on the complexity of the products and the need for approvals from Amazon. Aim for a 2-4 week timeframe to start selling on the platform.
Can I sell on Amazon Australia if I live outside of Australia?
Yes, you can sell on Amazon Australia even if you reside outside of the country. To do so, open an Amazon Australia Seller account, and ensure you have a valid tax ID and bank account to receive payments. Amazon offers an international shipping option called AmazonGlobal to facilitate cross-border selling.
What is the difference between FBA and FBM on Amazon Australia?
Fulfillment by Amazon (FBA) allows sellers to store their products in Amazon’s fulfillment centers, where Amazon handles storage, shipping, and customer service. On the other hand, Fulfillment by Merchant (FBM) requires sellers to manage their inventory, shipping, and customer service issues themselves.
What is the most cost-effective way to ship products to Amazon FBA Australia?
Consider shipping through a reliable and cost-effective freight forwarder or consolidator, especially for larger shipments. For smaller, lighter shipments, courier services like DHL, UPS, or FedEx may be more suitable. Comparing multiple shipping options is key to optimizing costs.
How much money can I make selling on Amazon Australia?
The earning potential of Amazon Australia depends on various factors, including product demand, competition, profit margins, and the seller’s marketing efforts. While some sellers achieve significant success, others may need to continuously adapt their strategy and products to improve sales and profitability.
8-figure Amazon seller and serial online entrepreneur since 2015. Research and practice various online business models, and apply his in-depth learnings to further expand and grow his businesses as well as help others to achieve greater successes. Ex-VP of a high tech VC in Vancouver and a Management Consultant with over a decade of experience in the industry. Master's Degree from HEC Paris.
