Sunday, February 10, 2008

Why do you sell on Amazon? Can you be successful?

We started selling on Amazon about 2 years ago. We had already sold on Ebay so we had our merchandise already. The great thing about Amazon is the ease of listing. Five minutes or less and you are done with an item. They also have a bulk up-loader tool that uses an excel form. I have not used this form, but I have heard once you know what information goes into each column, it is fairly easy and much quicker than one item at a time.

One negative, we find price to be a bigger issue on Amazon. Your item is listed in order of price. So if you are way down on the list or on another page, then you will probably not sell that item. But if you are in the top 5-10 and have similar or better feedback, then you have a pretty good chance. The good part of Amazon, no fees until you sell your item. That is the big difference between Ebay and the reason Amazon has been growing and Ebay has not.

If you are comparing Amazon selling fees, they are higher than Ebay. You are charged 15% fee of the sales price plus $.99 plus another small fee depending on what category you sell in. If you find yourself selling more than 40 items a month, you can pay $39.99 a month and the $.99 fee is waived. On an average month I pay Amazon 21% fees. On an average month I pay Ebay 18% fees. So you can see for me Amazon is a little more expensive. I would advise people to get all the fees and then determine if the product they want to sell will make a profit before selling. I have an excel sheet that has formulas that I can plug in my sales price and cost of goods and it tells me how much profit. I can then adjust the sales price up or down to see how that affects my bottom line.

Amazon for me costs a little more then some of the other auction places, but overall it is less hassle and quicker to list and sell. My experience on Amazon has been very positive. I will be posting more about Amazon on future additions.

Gary
www.familychristianmedia.com

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