Amazon is the one-stop shop for every product and product category. The company prides itself on finding innovative solutions to meet customers’ needs in the digital age by providing an easy-to-use, exciting, and rewarding environment.
The company’s market capitalization has reached dizzying heights of $117 billion.
Amazon India is still an emerging market, but its growth potential is no secret. Amazon India is expected to contribute up to 20% to Amazon’s total growth in the next five years, according to CNBC. The marketplace will continue to grow over the next few years, so businesses should get on Amazon India now to take advantage of such a lucrative opportunity. So, where do you start?
This definitive guide by NimbusPost will explain the complete process of how to sell on Amazon India. We will also give you insider tips and tricks to help you succeed and make a profit.
Types of Business Models on Amazon India
Before selling on Amazon India, you must decide which business model will work for you. Here are three main types of business models :
Retail arbitrage is one of the easiest methods to start selling on Amazon. The idea is simple: find products at a price that has high demand but low supply. The retail arbitrage model is an excellent way to start making some easy money, but it comes with risks, like suspension from Amazon. So this business model works best if you are careful about what you sell and have a low-risk tolerance.
Wholesale is the most popular category on Amazon India. Here you source products from brands and sell them directly to customers on amazon.in at a market price.
Almost every Amazon seller wants to go private label at some point in their journey on Amazon. It involves analyzing a market, studying consumer trends, and investing in a winning product. It is the ultimate way of making money as you set your prices & margins and get to keep all the profits. Private label protects you from vendor risk and gives you complete control over branding and pricing.
Also Read: How to Sell Private Label Products Online?
Want to get started selling on Amazon? Let’s discuss how you can get started with your Amazon Seller Account and start selling on Amazon India.
How to Become Amazon India Seller?
To become a seller on Amazon India, you must follow these four steps:
Step 1: Create a seller central account on Amazon India
Step 2: Decide what you’re going to sell
Step 3: Create a product listing on Your Amazon India seller central account
Step 4: Choose a fulfillment method
Why Sell on Amazon India
When making business decisions, it is crucial to consider all available facts and decide on a course of action. You should sell on Amazon India because of the following reasons:
1. Reach a large audience of potential customers
By selling on Amazon India, you can increase your reach and pitch your product to hundreds and thousands of new customers. With over 100 million registered users in India, this website receives more than 300 million visits monthly.
2. Low-competition market conditions
Amazon India is still nascent and has much more room to grow. So it’s an ideal time to get in before the competition increases.
3. Top-notch customer service
Amazon’s FBA program offers an excellent shopping experience to customers. It guarantees fast delivery and hassle-free returns, as well as keeping things more manageable for sellers by handling the complete fulfillment process on their behalf.
Is It Profitable to Sell on Amazon India?
The short answer is- yes, selling on Amazon India can be extremely profitable if you do it correctly. Choosing the right platform to sell your products can be daunting. But when you decide to sell on Amazon, you have a massive advantage over competing platforms. As of this writing, Amazon has a 90% market share in the eCommerce market and is also highly ranked as one of the best places for businesses to start their online business.
Also Read: Best Industries for Online Startups
It’s hard to ignore the power of Amazon Prime. More than 150 million customers are prime members, showing they are ready to buy anytime! That’s amazing! But it’s even more amazing for you as a seller because you get access to millions of people who are ready to buy anything.
Also, Amazon’s market share is projected to account for 50 percent of the entire e-commerce retail market’s GMV in 2021. The company’s market share growth has been phenomenally exponential, and it is only likely to rise.
How Much Money Do You Need to Start Selling on Amazon India?
The amount of money you will need depends on what you plan to sell. It is typically wise to have enough funds for a 90-day inventory, giveaways, listing expenses, and some cash for running sponsored ads for the first month. Over time, sales should generate enough income for you to cover these costs and still make a healthy profit.
Also Read: Amazon Marketing Strategies for Sellers
Things You Can Sell on Amazon India
Amazon is the largest marketplace in India, offering a wide range of products. The eCommerce site provides over 30+ categories customers can buy from and sell freely. These categories include Mobiles, Televisions, Laptops, Cameras, Clothes & Apparel, Watches, Jewelry, Shoes, Books, Movies & TV Shows, Music, Video Games, Home & Kitchen, Gourmet, Pet Supplies, Car & Motorbike, Toys & Games, Baby Products, Diapers & Wipes, Sports, Beauty, Health, Personal Care Appliances, Household Supplies, Home Entertainment, Musical Instruments, Office Supplies, Accessories, Luggage, Handbags, Travel Accessories, and Sunglasses.
Certain product types may require Amazon’s approval before you can list them. Examples include:
- Grocery & Gourmet
- Outdoor and Sports Toys
- Kids and Baby Furniture
- Car Seats
- Personal Safety & Household
- Baby Food
- Silver Jewelry
- Pet Care
- Topical, etc.
Grocery and gourmet items are sold via Amazon Fresh and Amazon Pantry India, two free delivery services from Amazon. Prime members can access these services.
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Amazon Fresh India
The store stocks fresh groceries and perishable items, such as onions, apples, oranges, and bread.
Amazon Pantry India
It sells various household products and pantry staples such as noodles, anti-bacterial handwash, multigrain cereal, cockroach killer kit, and baby diapers.
Which Product Sells Most on Amazon India?
Amazon India maintains a best-selling list for each category. As of writing this guide, here are some of the items trending on Amazon.in.
- Medical Equipment
We understand how excited you are to begin selling on Amazon India. The following section will discuss a step-by-step process for becoming an Amazon India seller.
Step 1: To sell on Amazon India, you must first register
The first step is to create an Amazon India seller account. We’ll walk you through that process.
- Go to sellercentral.amazon.in and click “Start Selling.”
- On the login page, select “Create your Amazon account” to create an account.
- Enter your name, mobile number, sign-up email, and password, and then hit “Continue.”
- After you connect your mobile number to your seller account on Amazon India, you will receive an OTP verification code. When you enter this code into the designated field, Amazon will verify your ownership of the selected store. Once successful, you will be asked to provide additional details and documents before processing your application.
Documents Required to Sell on Amazon India
You will need to submit the following documents when signing up as a seller on Amazon.in:
- Goods and Services Tax Identification Number (GSTIN)
- Permanent Account Number (PAN)
- Bank account number
- Copy of Certificate of Incorporation (if you’re a private limited company owner)
- Copy of Memorandum of Association (if you’re a private limited company owner)
Do I Need a Registered Business to Sell on Amazon India?
To sell on Amazon India, you must have a registered business. It can be a sole proprietorship, partnership firm, or limited liability company. Sole proprietorships are the easiest types of businesses to set up; all you need is a Registration Certificate under the Shops and Establishment Act and GST documents from your respective state to start.
Can I Sell on Amazon India without GST?
Yes, you can list GST-exempted products on Amazon India without a GST identification number. Examples include textbooks and plastic bangles, maps, and certain handicraft items.
Do I need GST number to sell on Amazon?
Yes. If you are listing taxable goods, GST details are required to sell online. You need to provide GST number to Amazon at the time of registration.
Who pays GST buyer or seller?
GST is paid by the buyers or consumers at the time of purchasing the product or availing of the service.
Step 2: Select the products you want to sell on Amazon India
Before you select your product to sell on Amazon, you must go through some essential factors to give it a satisfying response from the customers. Below are some points to consider:
The first step to focus on is determining whether there is enough demand for the product in the market. It’s important to note that the best opportunities are products sold all year long, not just during certain months. Therefore, targeting profitable products is the best way to increase your sales.
Financial health is the key to freedom, security, and happiness – and a source of inspiration for many entrepreneurs. If you are starting a business, you would want your business income to replace your full-time income. At a minimum, you want to achieve a 10:1 ratio between your monthly profit and monthly expenses.
The best way to start a successful product sales business is to find a niche already doing well. You don’t have time to sit out there watching your competition sell all the products, so you need to analyze their success. For example, if your competitors have 300-500 reviews on their products, it may be worth trying something different in your category.
Finding an opportunity for your business is essential for success. Spotting a market gap is extremely important, as this will help you get into your niche and build a successful brand. Reading what customers say about other listings in your niche can help you identify opportunities for improvement. If your customers are unhappy about something, then you can offer them an improved product that fills this gap.
Size and Weight
The best products to sell on Amazon are small and lightweight. These factors will help you save money and reduce shipping cost, storage, and fulfillment costs, contributing to significant savings.
Also Read: How to Reduce Product Weight Discrepancies
How to Find Products to Sell on Amazon India
There are different ways to find products to sell on Amazon India.
Best Sellers Method
You can visit Amazon’s Best Sellers page for some great product ideas. These products are already selling well on Amazon, and you only need to find a viable opportunity to promote them.
You can further build on your list of ideas by using the autocomplete feature on Amazon India. First, type the name of any product in the Amazon search bar that you think of and would be interested in selling, and then extend your search using different combinations of letters.
Google Trends Method
You can also use Google Trends to do product research for Amazon. For example, to find trending searches in India, change your country’s settings to India (if not already configured). Then, select “Trending Searches” and find the hottest topics at the moment.
How to Source Products to Sell on Amazon India
India offers some of the most competitive manufacturing services around. You can find a plethora of manufacturers in India from which to choose. For those who want more control over their production process, we recommend contacting a few different companies and planning the design and production of your product together.
Step 3: How to Add Products to Amazon India
There are many steps to creating an Amazon listing for your product, but the process is straightforward. You’ll add your product to your Amazon Seller Central account by creating a listing. All you need to do is follow these steps:
- Go to Seller Central on Amazon India
- Navigate to the Inventory tab, select “Add a Product, ” and move on to the next page.
- Click “I’m adding a product not sold on Amazon” and select your product category and type.
- Enter your product identifier code, product title, and brand name. Fill in all the relevant fields.
- Click “Save and Finish” to submit your product listing.
- Your listing is now under review, and if everything goes well, Amazon.in should make it live within 24 hours.
Step 4: Choose a Fulfilment Option
You can choose among three options for fulfilling your orders:
i) Fulfilment by Amazon (FBA)
You send your inventory to the Amazon India Fulfillment Center, which handles any queries and returns. The on-field staff picks, packs, and ships your products to customers. FBA has a fee.
Here, you handle the storage and packaging while Amazon manages delivery logistics. All pickups are scheduled in advance. This can be a perfect option for those who own a place that can serve as a warehouse for your inventory.
iii) Self-Ship or Fulfillment by Merchant (FBM)
Sellers who want to ship their products directly to the customer can select the “self-ship” option in Seller Central. In this case, the seller handles such orders’ packaging, shipping, delivery, and returns completely.
If you choose to go with this option, NimbusPost can help you lower your shipping costs by eliminating the need for expensive freight. By using our shipping software and technology, you’ll be able to ship your products with ease!
How much does it cost to sell on Amazon India?
Depending on your selected fulfillment method, Amazon charges referral fees, closing fees, weight handling fees, and other fees. However, there are currently no fees associated with selling on Amazon.
Are Amazon Seller Fees Income Tax Deductible?
Yes, tax-deductible expenses are deductible from your gross income; be sure to consult with your accountant for more details.
Is it better to Sell on Amazon or Flipkart?
Flipkart is one of the largest and most popular online marketplaces in India. It has a 31.9% market share and receives more than 200 million monthly visits; however, it remains behind Amazon in several key areas, including features and pricing.
Amazon India is undoubtedly a force to be reckoned with. It only took the company five years to emerge as the most recognized eCommerce brand in India after launching its operations in 2013. Moreover, since Amazon is close to Flipkart in market share, they have 31.2%. With such information, it should become clear why there is no reason not to side with Amazon in this direct battle between two large internet brands in India.
Tips for Success on Amazon India
Sellers on Amazon India are competing for sales. As the Amazon India marketplace grows, it has a tremendous reach and influence. However, due to the tremendous competition among sellers under every category, success on this platform is easier said than done. You have to follow certain steps & guidelines to gain an edge over your competitors on Amazon India. So, in this section, we have compiled some tips that we hope will be useful in your journey.
1. Create a good product catalog
Use only wonderful photographs: Many customers today prefer to look at images rather than read descriptions or reviews. Therefore, it is vital to have high-quality product pictures that accurately represent your product.
Infographics: A product brochure is one way to advertise a product online. One of the best ways to do that is by creating an infographic highlighting your product’s key features and benefits.
Product descriptions: Write a very detailed product description and avoid making a false claim.
Titles: Your product title needs to be relevant and concise with keywords that will help customers find them easily.
2. Use Pay-Per-Click (PPC) techniques
Running sponsored advertising is a great way to boost your rankings in the Amazon search and drive more clicks and sales.
3. Be aware of your competitors’ activities
Always keep an eye on your competition. Monitor any new listings or pricing changes they make. If you see any new SKUs similar to yours, don’t ignore them.
4. Make the most of Amazon’s Deals and Promotions
Amazon Lightning deals and Prime Day discounts will help you drive more traffic your way, sell more products, and enjoy higher conversions.