How to Sell on Amazon India | A Guide to Selling on Amazon India
Amazon India backed by Amazon.com is one of the top online selling platforms in India. Amazon.com is the largest Internet retailer in the United States and the company has committed over $2 billion to develop Amazon India. Amazon India was launched in June 2013 and currently, there are thousands of businesses selling millions of goods on the Amazon India Marketplace. In this article, we look at how to sell on Amazon India and the process to become an Amazon India partner.
What is Amazon India?
Amazon India commenced operations in June 2013. The company launched its website Amazon.in, which offers customers a wide variety of options in books, movies and television shows. On its first day of operation, Amazon India had received over 10,000 orders.
Amazon India, US-based e-commerce giant Amazon, Inc. is a wholly owned subsidiary of. The parent company Amazon was founded in 1994 by Jeff Bezos. With sales and growth in the United States nearing saturation limits, Amazon was looking to explore other countries for its future growth. The company saw great potential in India and started operations in 2013.
Amazon India currently offers lakhs of products on its platform and has lakhs of registered users. Amazon India currently has products across various categories like mobile phones, computers & accessories, men & women fashion, books, sports & fitness, electrical & electronic items, movies, music, cars, motorbikes, baby products, toys, grocery items etc. provides.
Amazon India also operates a Global Store, where customers can buy directly from sellers in the United States. Recently, Amazon Prime was launched in India, which gives users access to various services like streaming videos, music, e-books, latest offers, etc. Amazon India currently provides most of the serviceable pin codes in India. It has over 20,000 Indian vendors and 41 fulfillment centers in 13 states.
Why Sell on Amazon India?
Types of Business Models on Amazon India:-
Before you start selling on Amazon India, you must decide the type business model you want to run with. There are three main types of business models Amazon sellers can work on it:
Retail Arbitrage:-
In this model, you buy products from a local store and resell them on Amazon. The basic idea is to find such products at a low price whose demand is high but the supply is low. This is one of the fastest ways to start selling on A with a smile and make some easy money. However, this is not the best business model if you plan on a large scale. Your growth is greatly limited by the prices set by the retailers. Plus, there’s the risk of your account getting suspended if you’re not careful what you’re selling. Not every product can be re-listed on Amazon.
Wholesale
Here, you get products from already established brands (like Micromax, Funskool, Elle18, etc.) at wholesale prices and get them listed for sale on Amazon.in. Of course, you have to contact the brands first and get their approval before making a list. This isn’t always easy, especially if you’re a new seller, as brands may be reluctant to work with you.
Private Label
This is our absolute favorite. As the name implies, it involves launching your private label on Amazon India. You analyze the market, study your target audience, and then design a winning product. The best part is that you get to set the price on your own terms and keep all profits. It’s certainly an ambitious, but also the most rewarding business model on Amazon.
How to Sell on Amazon India:-
Find a Best Product:-
The first step to selling on Amazon is finding a killer product you’d love to sell. Before you start your product research, let me remind you one thing – a top seller on Amazon US Marketplace does not necessarily have to be a top seller on Amazon India. The demand for different products on one market is unique compared to another. That’s why I suggest you find the best selling products in India.
You can start selling just one product in the beginning. However, if you really want to make some decent profits, you need to expand your portfolio and sell a full range of products on Amazon. Watch the market closely to see what works and what doesn’t. Then, jump on the bandwagon with solid product research.
Requirements to Sell on Amazon India | Sell on Amazon India
First, you need access to Amazon seller central to sell on Amazon India
For Registration
You must have an active bank account.
Keep your business’s GST/PAN information handy.
Here are the some steps you encounter when you register on Amazon seller central platform.
1 Go to sell.amazon.in and click on ‘Start Selling’.
2 If you have a Buyer account, you can use the same credentials to login, or you can also click ‘Create your Amazon account’.
3 You will need to fill in the required information during the account creation process
4 Give your company name or registered name on your GST. Accept the Terms and Conditions
5 Enter your mobile number and complete the verification process
6 Now you need to input your ‘Store Name,’ ‘Amazon Product Category,’ and Address.
7 Activate or deactivate WhatsApp notification service and submit details
It will take some time for Amazon to validate your details. Once that is done, you will need to enable the two-step verification process which gives you better security to protect your seller account. Then, you need to enter your tax details.
Note- For some products which are not covered under GST, GST registration is not required. So make sure you check the required details before registering your seller account on Amazon.in. To clarify the queries of sellers on GST registration, Amazon has given a list(Link) of frequently asked questions.
Once you have created an account, you need to list your products in the marketplace. You can either add a product from Amazon’s catalog or create a new listing for your product.
How to Add Products to Amazon India:-
Once you have decided what you want to sell and have finalized a supplier for your product, you need to create a listing on Amazon India. By creating a listing, you add your product to your Amazon Seller Central account. The process is simple. All you have to do is follow these steps:-
- First Sign in to Amazon Seller Central India
- Navigate to the Inventory tab and select “Add a Product”
- On the next page, click “I’m adding a product that is not sold on Amazon.”
- Select your product category and type
- Enter your product identifier code, product title and brand name. Fill in all other relevant fields
- Click “Save & Finish” to submit your product listing for review. If all goes well, Amazon should make it live within 24 hours
Choose a Fulfilment Option:-
There are three types of fulfilment options you can choose from: i) Fulfilment by Amazon (FBA), ii) Easy-Ship, and iii) Self-Ship or Fulfilment by Merchant (FBM).
FBA provides the highest level of convenience to sellers. You send your inventory to the Amazon India Fulfillment Center, and the rest is done by on-field staff. It selects, packs and dispatches your product to your customers to handle any queries in the process. Even the returns are handled by Amazon. However, the FBA has a fee.
Next, we have Easy-Ship. Here, you handle the storage and packaging while Amazon helps you with the delivery. All pickups are pre-scheduled. This can be a perfect choice for those who have a space that can be used as a warehouse.
Self-ship is best for large scale sellers who have no logistical constraints. They can store, package and deliver the products without any problem. If you are planning to sell a bulk product on Amazon India, you can also go for self-ship. That way, you won’t have to pay FBA collection fees.
How much does it cost to sell on Amazon India?
Amazon sales charges for India include referral fees, closing fees, weight management fees, and other charges depending on your selected fulfillment method. There is currently no monthly subscription fee for sell on Amazon India.
Why Sell on Amazon India?
Any business decision should be based on sound reasoning and objective assessment of facts. Here are some reasons why you should consider Sell on Amazon India:-
1. Reach Hundreds and Thousands of New Customers:-
Amazon.in has over 100 million registered users in India. The website receives over 300 million visits every month. By selling on Amazon India, you can significantly increase your reach and take your product to hundreds and thousands of new customers.
2. Boost Your Sales:-
Amazon India receives at least 150,000 orders per day. This is an order for every other seller in the market. not bad at all. And if you offer your customers a high quality product, you can eliminate the sale altogether.
3. Low Barrier of Entry:-
Almost anyone can become a seller on Amazon India. There is no special requirement to join the market. Just an active bank account and some ID documents, and you’re ready to go. We will elaborate more on this when we discuss how to sign up for Amazon India.
4. Low Competition:-
Despite the impressive numbers, Amazon India is still at a very early stage and has a lot of room to grow. This is the ideal time to enter before the competition escalates.
5. Best Customer Service:-
Amazon’s FBA program provides customers with the best shopping experience, promising fast delivery and hassle-free returns. Even better, it simplifies the job for vendors by handling the entire fulfillment process on their behalf, allowing you to focus on the more important areas of your business.
Is It Profitable to Sell on Amazon India?
Over 4000 sellers crossed ₹10 million in sales on Amazon India last year. Another 7,036 sellers received orders worth over ₹1 million during the 2020 Great Indian Festival alone. Sell on Amazon India can be extremely profitable if you do it the right way.
Do You Need to Start Selling on Amazon India?
It totally depends on what you plan to sell. Generally, you should have enough money for 90-day inventory, giveaways, and listing expenses, plus some extra cash to run sponsored ads for the first month, at a minimum. As soon as you start generating sales, you will have enough money flowing in to cover these costs and still make a decent profit.
Which categories can you sell on Amazon India?
As a seller, you can list items in most of these categories. However, some product types and categories may require Amazon’s approval before you can list in them. Examples include:-
Appliances
Apps & Games
Arts, Crafts, & Sewing
Automotive Parts & Accessories
Baby
Beauty & Personal Care
Books
CDs & Vinyl
Cell Phones & Accessories
Clothing, Shoes and Jewelry
Collectibles & Fine Art
Computers
Electronics
Garden & Outdoor
Grocery & Gourmet Food
Handmade
Health, Household & Baby Care
Home & Kitchen
Industrial & Scientific
Kindle
Luggage & Travel Gear
Movies & TV
Musical Instruments
Office Products
Pet Supplies
Sports & Outdoors
Tools & Home Improvement
Toys & Games
Video Games
Grocery and gourmet items are sold through Amazon Fresh and Amazon Pantry India. These are free delivery services from Amazon, available only to Prime members.
Amazon Fresh India:-
It stocks fresh groceries and perishable foods. Some examples include onions, apples, oranges, breads and organic whole wheat flours.
Amazon Pantry India:-
It deals with the sale of regular household products and pantry staples. Some examples include noodles, anti-bacterial handwash, multigrain cereals, cockroach killer kits and baby diapers.
Amazon’s most popular categories:-
When selling on Amazon, or any other platform, it’s important to know where and what consumers are buying. You wouldn’t want to set up shop at a flea market and realize you’re in the wrong parking lot, right?
The same goes for Amazon and e-commerce. If you create a product in a niche or category that very few people buy, you’re going to have some trouble. In this article, we will look at the most popular categories for selling as a third party seller.
Top 10 categories:-
Home & Kitchen – 40%
Sports & Outdoors – 21%
Toys & Games – 19%
Beauty & Personal Care – 19%
Health, Household & Baby Care – 18%
Kitchen & Dining – 16%
Office Products – 15%
Garden & Outdoor – 14%
Tools & Home Improvement – 14%
Pet Supplies – 13%
Remaining categories in order of popularity
Clothing, Shoes & Jewelry – 13%
Books – 12%
Grocery & Gourmet Food – 12%
Arts, Crafts & Sewing – 12%
Electronics – 12%
Baby – 12%
Industrial & Scientific – 8%
Automotive Parts & Accessories – 7%
Appliances – 5%
Cell Phone & Accessories – 5%
Handmade – 4%
Video Games – 4%
Apps & Games – 4%
Luggage & Travel Gear – 3%
Computers – 3%
Musical Instruments – 2%
CDs & Vinyl – 2%
Collectibles & Fine Art – 1%
Sellers could select multiple categories.
Note:- Given those categories, it’s important to ask yourself: Are these categories too competitive? The last thing you want to do is jump into an oversaturated market with no chance of landing on a page in Amazon’s search results.
But, although these broad categories can be very popular and over-saturated, I’ll explain how you can dig deeper into the different subcategories to find better product opportunities later.
Benefits of Selling on Amazon India:-
As an Amazon.in seller, your products are available 24×7 to millions of customers & businesses on India’s most visited shopping destination. More than 6 lakh Plus businesses, big and small, sell on Amazon.in today. Selling on Amazon.in brings a host of benefits for you.
Secure Payment, Regularly:-
Funds are safely deposited directly to your bank account, even for Pay on Delivery orders, every 7 days.
Ship Your Orders, Stress-Free:-
Whether you choose Fulfillment by Amazon (FBA) or Easy Ship, let us take care of delivering your products. and managing their return, if needed.
Services for Every Need:-
Get paid support from Amazon empaneled third party professionals for product photography, account management and much more.
Keep Your Brand Protected:-
You get control of Amazon product pages that feature your brand name and logo with Brand Registry.
Get noticed with advertising:-
Find new customers with targeted ads and pay only when customers click.
Sell to customers worldwide:-
Sign up for Amazon Global Selling & reach customers in upto 200+ countries.
Just click to get help:-
With Seller Support, Seller University, Help guides & Forums, help is a click away.
Manage business on the go:-
Download the Seller App to manage your business, solve issues, and respond to customers – anywhere, anytime.
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