Selling on Amazon in South Africa is the best for you to start if you want to get into the multichannel field of eCommerce, or if you are just getting started with your eCommerce business and want to get started by selling on a marketplace. Both of these scenarios are good reasons to get started on Amazon ZA. After reading this article, you will gain an understanding of the primary benefits and drawbacks of selling through Amazon, as well as the fees that Amazon sellers are subject to and other pertinent information that may play a role in your decision.
What is the Amazon marketplace, And How Do I Start Selling on Amazon in South Africa?
Amazon functions much like a traditional market but is entirely online (and considerably larger). You can only imagine the level of competitiveness that exists in a worldwide market like Amazon if there is competition even in a local farmer’s market.
Amazon is an online marketplace that allows third-party vendors, such as other businesses, as well as Amazon itself to sell their wares directly to consumers or other corporations. Amazon takes a cut of each transaction and, in exchange, it offers a tool that is ready to be utilised and manages some of the most challenging elements of selling online. These features include payments, returns, customer assistance, marketing, pricing, and more.
Anyone may start selling products without the complexities of having a website by learning how to sell on Amazon ZA, which speeds up the preparation of the online settings because it reduces the amount of time needed. After entering some fundamental information about your business, you can immediately begin processing incoming orders.
What is The six-step guide to Selling on Amazon in South Africa?
We look at 6 simple steps to start selling on Amazon in South Africa. Simply following the procedures below will get you started selling on Amazon ZA. Within a matter of minutes, you will be ready to publish your very first products.
From your Amazon South Africa account, you’ll have the ability to sell in other European nations.
How do I create a seller account on Amazon.com?
a. To sign up as an Amazon seller and start selling on Amazon in South Africa, visit https://sell.amazon.co.za/ and select the “Sign up” button.
b. Either click on “Create your Amazon account” and enter your Amazon customer information (email or phone number and password), or establish an Amazon account by clicking on the link.
c. Enter the following information in the appropriate fields:
- A commercial email address
- A payment instrument in the form of a bank card
- A bank account into which payments can be deposited (this can be the same card that was used to make payments)
- A legitimate identity document
- Information from your company’s registry, including its tax identification number
- A phone number
Since you already have a seller account on Amazon, the next step is to figure out what kind of sales strategy you want to implement. If you haven’t made up your mind about what you’ll be selling, you can choose between being a reseller, the owner of a brand, or all of these roles.
How can I determine what you will be selling?
When it comes to picking what to sell, you have a couple of different options available to you. You can choose things that are in high demand on Amazon, or you can take a different tack and sell products that you currently create or that you have experience with.
Both of these require some form of market research, but in general, things that are in great demand are characterised by increased levels of competition and are bought based on price.
When you are marketing products that you are already familiar with, it is much simpler to identify their strengths and limitations and compare them with other products that are in a comparable category. Because of this method, you will have an easier time distinguishing them from the other candidates.
In the first scenario, you’ll need to choose new products on an ongoing basis (based on the most recent industry developments and Amazon’s best-selling products). In the second scenario, the source of your competitive advantage may be your in-depth knowledge of the subject matter, which is a characteristic that is more sustainable than high-volume sellers.
How can I list my products on Amazon?
If you want to list a product on Amazon, you may either choose to associate it with an already existing product listing or you can make your listing if there isn’t one that matches it.
After that, you will be able to list a product by entering a global trade item number (GTIN) such as a UPC, ISBN, or EAN. Be sure to include the product’s SKU in addition to additional details such as the title, photos, product variations, keywords, and featured offer (including Buy Box and other specials).
How do I begin placing advertisements on Amazon.co.za?
Amazon offers a variety of different advertising opportunities:
- Sponsored Products: Products that have been paid for by a sponsor will appear on both the result pages and the product pages
- Sponsored Brands: You have the option of including your company’s logo in these adverts, in addition to a customised headline and up to three featured products
- Amazon Stores: These are the locations where your brand story and the items you’ve reduced will be displayed
- Sponsored Display: This is a programme that allows businesses to reach potential customers both within and outside of the Amazon platform. On Amazon, you will only be charged for the clicks that are generated by your advertisements
- Amazon Global Selling: This is a programme that assists you in marketing and selling your products in international markets
How do I register my brand with the official registry for brands when selling on Amazon in South Africa?
When you register your brand on Amazon, you gain access to a wide variety of benefits and features. The process in question is known as “brand registry.”
Having a brand registration allows businesses to take advantage of specialised features that are associated with the invention, development, and protection of products (intellectual property). This is beneficial for enterprises.
Having your brand comes with several benefits, including the following:
- You will have a greater degree of control and impact on your product listings
- Content production that gets an A+ for increased visibility, which boosts sales and conversion rates
- There are opportunities for you to promote yourself through Sponsored Brands and Store sites
- Obtaining a greater number of metrics
- Guarding your trademark against imitators and knockoffs
Am I able to decide my order fulfilment on Amazon?
As soon as you begin selling on Amazon, you will be required to decide how you will handle the processing of orders and the shipment of packages. You have the choice between Amazon FBM and Amazon FBA when working with Amazon.
Amazon FBM ZA
When you opt to conduct the fulfilment yourself (also known as FBM, which stands for fulfilment by merchant), you are responsible for receiving the order, preparing it for shipping, giving it to the courier, and completing any other steps that are required in the process of fulfilment.
If you choose Amazon FBM, it does not mean that you will be doing the fulfilment on your own.
Amazon FBA ZA
When you select to have Amazon ZA (FBA) fulfil your orders, they will be responsible for packing, labelling, and sending the products once they have been purchased by the customer.
If you are a seller with little expertise, it can be tempting to delegate these tasks to Amazon. However, you need to take into consideration the additional fees that come along with this option and how this will influence your profit margins. Profit margins can be significantly lowered when fulfilment is outsourced, whether it is done by Amazon or any other company.
If the volume of orders unexpectedly exceeds your capacity, outsourcing this component may end up being a wise financial decision. When you are a smaller seller, you undoubtedly have the means to satisfy all orders that you handle daily or weekly. When your business expands, however, it is sufficient to only adopt the relevant tools, expand your personnel, and have the appropriate facilities.
Please read our post on Amazon FBA and Amazon FBM if you require additional information regarding the fulfilment alternatives provided by Amazon.
How much does it cost to list a product for sale on Amazon South Africa?
After you have decided to sell on Amazon ZA, you will be subject to the following fees:
Payment for subscription
If you want to sell on Amazon ZA, the first thing you need to do is choose between these two different selling plans: the Individual plan (which is designed for smaller sellers) or the Professional plan.
Under the Individual plan, sellers are required to pay a fee of R5 for each item that is sold. The Professional plan has a fee of R500 per month, but it does away with the sales commission and contains additional instruments for the growth and development of sellers who have a significant amount of sales volume.
When compared to the Professional plan, the Individual plan does not provide users with nearly as many tools or functions. Switching to the Professional plan is already the more profitable option if you have a monthly volume of 40 orders or more than that.
Amazon ZA selling fees
Every time an item is sold, a sales commission or sales fee is accrued, which may or may not include a referral fee and may also contain additional fees that are specific to the selling of multimedia.
As was already discussed, sellers that sign up for the Professional plan will not be responsible for paying these costs.
Amazon ZA FBA fees
Additional fees, including those for funding the fulfilment duties, storage expenses, and additional services, are applied to purchases that are managed by Amazon (FBA).
Amazon ZA referral fees
The amount of the referral fee is calculated as a percentage of the overall transaction. They are different for each different kind of product.
Shipping costs
You will be responsible for paying delivery fees if you handle your Amazon orders through the marketplace. These range widely based on the type of product being purchased as well as the mode of transport that the customer prefers.
Fees for the handling of refunds
Amazon will give the seller back the referral money without the administration fees when a consumer returns a product and asks for a reimbursement. The administration fees are either twenty per cent of the referral fees or five pounds, whichever is smaller.
FAQ
What exactly is Amazon’s ASIN number?
Amazon Standard Identification Number is the abbreviation for “ASIN.” This is a one-of-a-kind identifier for the product that consists of ten letters and/or numbers.
When it comes to books, the ASIN code is identical to the ISBN; however, for all other products, the ASIN is generated automatically whenever an item is offered for sale on Amazon. Because ASINs are unique to each market, the same product can have many ASINs if it is sold through multiple Amazon marketplaces. This is because ASINs are not standardised throughout Amazon’s various sales channels. For example, if an item is sold on Amazon.co.za, Amazon.de, and Amazon.es, then that item will have three separate ASINs on Amazon.com.
What is the unique identifier for this product on Amazon?
When creating a product listing, sellers are required to input certain obligatory information, and one such field is the product ID field. Codes such as UPC, EAN, JAN, or ISBN can be used to insert a product’s identification number.
On Amazon, what exactly is an SKU?
A product identification system is referred to as an SKU on Amazon and also exists outside of this platform. When an inventory file is sent to Amazon, it includes this code, which is used to associate a product with the appropriate product information page in Amazon’s catalogue.
What exactly is “Seller Central” on Amazon?
You will be granted access to Seller Central once you have successfully registered as a seller on Amazon. This location serves as the nerve centre for all of your Amazon-related activities.
You may also read and download professional reports, assess your performance as an Amazon seller, ask for assistance, respond to customers’ questions, modify product photos, and even make product listings from your smartphone. All of these features are available to you.
What kind of performance indicators does Amazon have?
Amazon will utilise several different performance metrics to evaluate the state of your company. They are located in the section of Seller Central that you have access to.
It is crucial to measure them since satisfying Amazon’s requirements entitles one to particular benefits, and meeting those requirements means one can enjoy those benefits.
Some of the most important indications include the Order Defect Rate, which must be less than 1%, the Cancellation Rate, which must be less than two and a half %, and the Late Dispatch Rate, which must be less than 4%. Having positive feedback from customers is also essential.
Is there a market for it on Amazon ZA?
Thank you for reading “Selling on Amazon in South Africa“, we sincerely hope that this post cleared up any confusion you may have had and provided you with the answers to any queries you had regarding selling on Amazon. It’s possible that you’re not sure if selling on Amazon is the best choice for your company at this point. On the other hand, it’s also possible that you don’t want to put all of your eggs in one basket and would rather sell through other channels as well, selling on Amazon in South Africa.
If this is the case, you will need to offer your products through a different marketplace, develop your own online store or offline store, or a combination of the two to improve the number of sales you make and possibly sell to other consumers’ personas.
Contact Storehub.io today in order to integrate your Accounting Software like Sage 200, 300, 50c or Business Cloud and others to sync stock and price as well as raise orders to your Accounting Software.