How To Sell On Amazon

How To Sell on Amazon

Getting Started: Amazon’s Requirements

Amazon demands that sellers meet certain requirements before they are selected to sell clothing on their platform. For example, your products are only allowed to be new, no used items can be sold on Amazon. These requirements are set in place to assure that you are a company that can be trusted to follow their guidelines and keep Amazon customers happy.

The following is language taken from the Amazon Seller Central page for the requirements to sell on clothing on Amazon:

• Sellers must provide a website or image hosting site with product images that can be reviewed to be considered for approval to sell on Amazon.
• Clothing & Accessories products from major brands must be listed using the manufacturer’s UPC code.
• All Clothing & Accessories products must be new. We do not allow any used products.
• All products must be authentic. We do not allow any counterfeit, replica, or knock-off products.
• Product images must adhere to Clothing Store Image Standards:

Required:

• All color variations must include a “child SKU main image” representative of that specific color.
• Images uploaded must be at least 1001px on the longest size. Images can be up to 3000px on the longest side and must be 2560px on the longest side to take full advantage of our zoom capability.
• Each image should be tightly cropped to optimize the customer’s ability to evaluate the item.
• Images should not be visibly marked with watermarks, color palettes, or text.
• Background must be white, with image being of high quality and truly representative of the product being sold.
• Main image must be of a single product, not stacks or images containing multiple products.
• Main parent and child images must be on model or flat.
• Alternate images can be different angles or views, swatches, etc., but must adhere to the same image quality and size guidelines.
• Sellers are responsible for the quality of all images they upload, even if the seller has obtained the images from an outside source.

Prohibited:

• Brand tags or packaging in any of the images
• Images of second hand or slightly used products
• Borders, watermarks, text, or other decorations
• Sketches or digitally created images of the product; use real images only
• Images on mannequin
• Colored backgrounds or lifestyle pictures
• Other products, items, or accessories that are not part of the product listing; only include exactly what the customer is buying
• Image place holders (such as, “temporary image” or “no image available”)
• Images containing graphs of product ratings
• Promotional text such as “sale” or “free ship” (use the Manage Promotions tool instead)
• Size charts, delivery zone maps, or any graphic not related to the product

• All listing data and images must be suitable for all ages and appropriate to our global community. Listing data and images may not depict or contain nudity or pornographic, obscene, or offensive items.

In order to sell clothing on Amazon, you will need to properly abide by all of Amazon’s requirements. Make sure that if you are not creating the product yourself, that you are purchasing your products from an authorized manufacturer. This is because Amazon will need to be positive that your product is 100% authentic and you are at zero risk of selling a counterfeit item. Be aware that there may be a waiting period in order to be approved to sell clothing on Amazon. You will additionally need to have a barcode for all of your products. Luckily, you can purchase this bar code at an affordable price.

Creating an Account; FBA vs. Independent

When choosing which account to make, you will have to look at your business. If you take pride in individually packaging your products, FBA is not the choice for you. For instance, some designers wish to personally package each item with their specific design stamp. However, be aware that you must follow Amazon’s strict policies when it comes to packaging. Yes, you may still keep your unique touch on your item’s packaging, but your package must also be secure so that the item is protected from damage during transit.

It is important to note that you must follow the Amazon policies for packaging. This includes making sure to use two inches of cushioning between units on the inside of the box. It also will be in your best interest to properly train your staff on how to prevent all damage in transit. This involves conducting random inventory checks in order to reduce item defect complaints. You should also be aware that you can only source items from suppliers with proven track records with Amazon. This will protect your business in the long run; you do not want to risk obtaining items from an untrustworthy source. It is also imperative that you provide to your suppliers all of the information that Product Quality desires regarding the sourcing of all your items.

Many designers do not wish to personally package each item. As your business grows, it becomes increasingly more difficult to maintain Amazon’s high standards when it comes to packaging. Fulfillment by Amazon, or FBA, relieves some of that stress. The fees for FBA are as follows:

While packaging independently allows you to style your packaging as you see fit, it is important to be aware that as more orders come in, you will need to have the proper resources to accommodate the increasing number of customers. It is apparent that you stay up to date on all packaging procedures and policies provided to you by Amazon. This can become a headache for many companies. Therefore, it may be in your best interest to choose FBA. You will not have the fear of becoming liable for any packaging issues that should arise. Similarly, you will be able to save money by using the FBA option. However, do be aware that Amazon collects 15% for each sale you make.

Shipping Needs

It is important to be aware that Amazon has many shipping requirements. If you choose to not go by FBA, you will need to maintain Amazons shipping standards. You should make sure you would have two inches of cushioning between units inside any packaging. There also additional packaging options such as vacuum sealing items to ensure their safety.

Seller-fulfilled Prime

Amazon has recently expanded how they make it available for sellers to sell on Prime without having an FBA account. This process allows people who manufacture their own products to buy a shipping label from Amazon. They do this by first obtaining the MWS Buy Shipping API. This allows sellers to ship directly from their warehouse. This is an incredible option for designers because you typically do have your own way of manufacturing. As we explained in the previous chapter, you want to be able to package your products in a way that makes your packaging unique. Now, you have the opportunity to sell to the Amazon Prime subscribers. That is opening the doors to over 40 million subscribers.

Why should you be interested in joining seller-fulfilled prime? First, it markets your product even more customers on Amazon. Also, your article of clothing would be preferred over another similar article of clothing that is not on Prime. Why is this? Remember earlier how we discuss the Internet age and the high demand for immediate satisfaction? This is a similar situation. Shoppers are more likely to purchase a product that is available on Prime as opposed to normal shipping. Other perks of seller-fulfilled prime have the prime option without the FBA fees.

While this program is an excellent option for sellers, it is an invite-only program. If you do get an invitation, another advantage you will have over other competitors selling clothing is that you will get buy box privileges, which we will discuss further, in the next chapter.

Obtaining the Buy Box

The buy box is the box located to the right of a product page on Amazon. A seller is selected by Amazon to have their details in this particular box. If a customer chooses to purchase the product, and selects, “Add to Cart” the sale goes to the seller who has obtained the buy box. Sometimes, Amazon chooses multiple sellers to have the buy box, and they alternate who has the box based on percentages. This means one seller will have the box for a certain percent of the day, and others with have the box for the remaining portions of the day.

The requirements for being selected for the buy box are as follows:

• Must have a Professional Seller account;
• Must be eligible (this can be checked by logging into your account and checking the buy box eligibility selection).
• Must be a new product; nothing used; those have their own box.
• Must have the available stock to sell.
• Need Perfect Order Percentage (POP) Score. Keep it over 95% Note that because you are in the business of selling clothing, your POP score may be impacted due to returns. Returns are more common in clothing sales because people do not get to try on the clothes first, they do not know if it will fit or if they will like it once they have it on.

You can also improve your chances of being selected for the buy box by lowering your prices. FBA sellers are preferred over non-FBA, and Seller-Fulfilled Prime members are preferred over FBA sellers. On media specific categories such as books or media, Amazon themselves will be given the buy box. This is great news for designers like you because it leaves room for you to be able to win the buy box.

Hijackers, Who Are They? How To Avoid Them

Hijackers are not just those criminals you envision in action movies, they can also be found on online platforms. These sellers do not create success on Amazon; they steal success from hard working sellers, sellers who earned their spot in the buy box. These unethical sellers will research Amazon listings that are doing very well. Once they discover a listing for a private label product that is successful, they will actually take over the listing, change the product title, images, and content to their own material. This means that the customers who are buying off of one listing will notice it is suddenly a different product. You will receive the negative reviews on your listing and you will lose the buy box.

These situations are common and sellers are outraged. The best option to protect your listing is to register though brand registry. With brand registry, it will be a lot more difficult for these dirty sellers to hijack your listings.

Brand Registry

Brand registry is a tool created by Amazon.com to protect sellers as they sell on their platform. Many sellers developed problems with maintaining their own listings. Before this option was created, many private label sellers did not have an option to truly establish a brand on the Amazon platform. The listings were the generic listings Amazon provided and there was no availability to personalize any listings. Additionally, without brand registry, sellers are at risk for hijackers taking over their listings. However once you are registered with brand registry, you obtain the rights to content for your private label products and listings within that registered brand.

If you manufacture your own products or are a Brand Owner, you may place your brand on the brand registry. Manufacturers, Private Label Brand Owners, and Distributors are all eligible to register for brand registry.

This option will allow you to manage your own products listing. For example, you can format your listing accordingly, with an option to bold any sections that you choose on your description. This also means that you will have control over your product’s ID. You will be able to use GCID (Global Catalog Identifier) that can be used instead of UPCs.

This is your product, your brand, and you will want to register so that you can maintain your unique edge while running a business through the Amazon website. In order to get started, you will need to first set up your company’s website and email. Your email must be for your company website, not a personal email. On your website, you should have your brand, and products with your brand on them on display. You will need this information in order to properly fill out the registration form. Once you have all of your company’s information you will be able to proceed.

In order to go about registering your brand, you will need to file an application on your Seller Central account called, “Amazon Brand Registry Enrollment Request”. You will need to fill out your company’s information. Because you are selling your clothing, you will check no when the registration form asks you if you sell BMVDs (books, movies, videos, DVDs) or collectables. Note: if you wish to sell these products in the future, you will not be able to sell these products on brand registry for they are excluded by Amazon. Other items that are not eligible for brand registry include entertainment or sports memorabilia and collectibles.

Amazon has a strict policy against the sale of used clothing items. As you discovered when you first registered to sell on Amazon, you must not sell any clothing that is used. When you apply for brand registry, it is imperative that you also state your products will be sold as new.

The registration form will ask you if you have a registered Trademark. If you do not have one at this time, or are unaware of what a trademark exactly is, that is okay. We will discuss trademarks and how to obtain one in detail later on in this book.

When it comes to branded packaging, be aware that if you place a sticker or label with your brand on it onto the packaging, then you have branded packaging, and should select this option.

When you upload images of your product, be sure to upload quality images. This will help you in the long run while running your business on Amazon. Many Amazon sellers receive complaints for inauthentic items or not as described items because the images of the product are not clearly demonstrating the product received. Further, you should not upload any computer-generated images; Amazon does not accept these.  Make sure you attach an image with your brand visible on your packaging and the image of your product with the brand visible.

Once you have submitted your registration, be aware that it may take a few days for Amazon to review your application. If Amazon feels there is something missing from your registration, you will be notified via email so that you may revise your account.

If you are already selling on Amazon and have your own listing, you will still need to register in order to obtain brand registry. This requires a re-submission of your listings under your brand.

It is important to be specific with your listing details. Make sure you provide to your customers exactly what your product is, how it looks, its functionality. When selling on Amazon, if your descriptions are ambiguous or do not perfectly match the product described, you will receive a complaint from your customers. These complaints can lead to account suspension and that is not a path you will want to walk down. Be proactive now, and the hard work will pay off later. Having you listings be specific is also beneficial because it prevents someone from submitting details for you that could be incorrect. This also poses a risk for problems in the future.

Amazon does not provide any guarantees that by signing up with brand registry your account will be safe from hijackers. However, it is an excellent opportunity for designers because it establishes your brand, you can personalize your listings, and it sets up an extra layer of protection for your brand.

Linking Amazon to Your Website

Your website now should be fully fleshed with all of your listings available online. You can have your customers purchase their products directly on your website, or you can have them be directed to your Amazon account. Most new customers would prefer to purchase your product through Amazon because it is a trusted website. While they may not know your company, yet, they know Amazon. Customers know Amazon is reliable. That is why you or your business should consider linking products on your webpage directly to Amazon.  

This is actually easier than you would think. If you paid someone to create your website, ask them to add these links for you. If you created your website on your own, here are a few ways to obtain the link. One method to do this is to log onto your Amazon account. On your seller central account there is a section titled “Build Links”. There will be a template made available to you so that you may choose between font size and colors. You will be able to do this for specific items. You will then need to select “Get HTML” then “Customize Link” and finally “Basic Display”.

However, be aware that each website is unique. If your website is generated through WordPress for example, you will need to add the text link, [amazon asin=<ASIN Number>&text=<link text>] and place your ASIN number into the link, and for link text place what you would want to be displayed for the link. You may also add the HTLM link onto your account. WordPress also has the option to have text and image, just image, or just text to display on your link.

The way you add the specific coding for your website will be specific towards your website generator. If you are having trouble with creating your website, know that there are many affordable services available to you where website creators will assist you, or even create your website for you. If you choose to create the links yourself, remember it is important to make sure your links are correctly uploaded before publishing your updated page onto your website. Your customers want to see an organized page that is easy, not messy or malfunctioning. You do not want to discourage your customers from purchasing the product; presentation is important.

Retail Arbitrage

Retail Arbitrage is where Amazon Sellers purchase products from major retailers and then resells them on Amazon. Many sellers are now sourcing inventory from stores. They purchase highly discounted items on clearance and reselling them for their own businesses profit. Typically, when a business wishes to delve into retail arbitrage, they purchase popular items, in bulk, at a highly discounted price rather than purchasing individual items. Purchasing in multiples means multiple profits.

While this may be frustrating to big businesses and designers, this is legal. To a business on Amazon, this is an excellent opportunity to generate revenue. On top of their own designs, Amazon sellers are selling other clothing items. They compile several products that are favorable to their customers. If you are still getting your business started, it may be in your interest to kick-start your business with retail arbitrage. With the extra income you can dedicate back into your company.

Retail Arbitrage is not for everyone. Many designers wish to only sell their authentic products on their account and that is perfectly fine. If you wish to expand your business from your products, plus the sale of additional products, retail arbitrage may be an option for your Amazon Sellers account.

The choice to delve into retail arbitrage is entirely yours, but know that with this process comes risk. Amazon will not monitor these products but they will suspend the account seller if someone alleges that these products are inauthentic, counterfeit, or used sold as new. Once a complaint is filed, it is you as a seller’s responsibility to prove that the products are authentic.

Inauthentic means any item that is not the genuine, true, product in its exact form, as it was manufactured. Counterfeit items are often knock-offs, where a seller is selling something that has the same copied logo, but it’s not the same authentic, quality product. Used sold as new complaints are especially tricky on Amazon. You may believe that so long as a product is unused, it is okay to sell the product as new. This is not the case. Anything returned, in a different or altered packaging than the original packaging, or with damaged packaging must be considered used. As you learned earlier, once a clothing item is considered used, it may not be sold on Amazon. This rule is strictly enforced and it is imperative to make sure that you never sell used clothing items on your account.

What does this mean for you as a designer? If you do not have any of your designs being sold at retailers, then you need not concern yourself with retail arbitrage. However, if you do, it is important to know that this is not illegal. If you notice that these products are being sold on Amazon, and you notice that these are not authentic or counterfeit, you have the ability to file an inauthentic complaint.

Once a complaint is filed, Amazon will likely suspend that user from selling that product. The burden will then be on the seller to prove the authenticity of the product. They will need to supply invoices that show the Uniform Product Code (UPC). If they only have the retail code, which is typically found in invoices from stores such as T.J.Maxx or Marshalls, Amazon will not reinstate the account. That is because Amazon requires the UPC to prove the authenticity of an item. If you choose to partake in retail arbitrage, make sure wherever you purchase your products, your invoices supply a UPC.

Remember, if you are mistaken in your allegation, filing a complaint against a seller is detrimental to their business. Just like you, they need to make a living. If you receive notice from the seller proving that the products are 100% authentic, then you should remove your complaint. Their business, while you may not agree with it, is legal. It should be your interest to make sure that there are no counterfeit products, but also to recognize if your complaint is meritless. The Fashion business is a complicated world; you do not want to become a bully. Further, if your complaints are fraudulent, the seller may be able to bring suit against you for lost profits. This complaint will place them out of business, and it will become your responsibility to compensate for those profits if your complaint is not valid.

Your business can still flourish even with the existence of retail arbitrage. Creating constructive relationships with your competitors, while this may seem far-fetched is generally a good idea. Interact with one another, learn about each other’s businesses, and know most disputes can be easily resolved through communication, not lengthily litigation. If you are still expanding your business and are new to the Amazon website, you do not need to worry about retail arbitrage.

Private Label

Many Amazon sellers begin with retail arbitrage, and then move forward to private labels. These sellers purchase the products directly from the manufacturer and place their logo on the product. As a designer, you may be making your products from scratch, or you may be purchasing your product from the manufacturer. Designers who wish to hand-make each product will not be inclined to switch to private label. However, if you are interested, know that this is a cost-effective method for businesses that do not have the time to make their products. As your business grows, it may be in your interest to switch to Private Labeling. The designs will still have your logo or mark, but will not be created by you personally.

When you private label, you are contracting with a manufacturer to create your product. Once the product is made, you will be able to have your logo placed onto the designs. More and more sellers and designers are using private label simply because it is good business. They no longer need to manage the creation process of their product. They are free to add the label and continue onward with their business.

It is important to keep in mind that if you do turn to a manufacturer, you will need to make sure they are a reliable source. You still have to maintain Amazon’s high-standards for products. Do your research before contracting with a party. Make sure that they can produce the quantity and quality you expect. It is also important to make sure they are informed of Amazon’s policies so that you do not get suspended in the future as a result of manufacturing errors.

From a business standpoint, you will want to select a manufacture that will able to produce your product at an affordable price for your company. That number will vary depending on your company’s budget and the price you wish to sell your products for on Amazon. Take into account Amazon’s fees; your business costs, shipping costs, and all variable factors that will impact the price of your product. Take your time when choosing a manufacturer, you want to make sure you are selecting a trustworthy manufacturer who suits your company’s specific needs. Try to contact many manufacturers and figure out of that selection, which is the best fit for you.