There are two different things that the term “Amazon store” can refer to. One is a physical retail location that represents the massive online retailer. And in this regard, Amazon now operates seven different kinds of stores that people can visit in their everyday lives. The more significant form of “Amazon store,” however, refers to a business that any individual can set up to operate within the company’s existing online ecosystem.
This kind of Amazon store can fall into a number of different models: re-selling physically purchased items for a profit, selling individual items from bulk purchases for a profit, establishing and selling from a private label or independent brand, and more. But they all amount to the same idea: using Amazon as an existing digital storefront through which to generate sales.
This is a model that works quite well for a lot of industrious business owners (even netting tens of millions in extreme cases!). And because it’s an idea that appeals to so many, we want to say a few words about how you can go about starting your own Amazon store from scratch.
Choose Your Model
We just went over some of the different types of Amazon stores you can run, and naturally the first step in setting up such a store from scratch is choosing a model. This should be a straightforward decision based on how you think you can best generate regular profits through the online retail titan. If you’re adept at finding deals and confident you can re-sell items, you may want to consider an arbitrage model. If you’re looking to expand an existing line of products or start creating your own items to sell, you’ll want to go the private label route. Whatever suits you, just be sure you have a clear idea of what kind of store model you’re aiming for before you get started.
Treat It Like A Business
Because you’ll be setting up a way to sell products through an existing platform, this sort of venture can feel like a side project, or even as if you’re a sort of subsidiary of Amazon’s. But the truth is that the benefits of an Amazon store include that it can be a legitimate business of your own. That means making a business plan, choosing a structure (such as an LLC or sole proprietorship), registering with your state, and enjoying the tax benefits, legal protections, and legitimacy that come from this kind of official setup. Treating your Amazon store as a true business from the point of launch sets you up for growth and stability you may not otherwise enjoy.
Build Up Adequate Inventory
It’s not a blanket rule in product-oriented businesses to establish surplus inventory in the early going. In some cases, it can actually be an inefficient use of funds and a poor means of generating demand. When you’re starting a new Amazon store though, there’s something to be said for building up enough inventory to meet and exceed early demand. This is simply because even though your business will be new, you’ll be operating within a platform that has a reputation for reliable inventory and speedy delivery. To gain consumer trust and build up a customer base, it’s essential that you have enough inventory to handle early sales and early growth.
Make Your Listings Effective
Finally, from the very outset, it’s important to focus on making your Amazon listings effective. In much the same way independent online businesses focus on strategic web content and SEO, Amazon stores rely on optimizing product listings for conversions. It’s a tricky process, but it ultimately involves learning about Amazon’s A9 algorithm and what it looks for, and then adjusting and designing your product listings accordingly.
More will go into your efforts than these steps, but a lot of the work will depend on what you’re selling and what you want for your business specifically. For anyone starting an Amazon store though, the tips above are vital to pay attention to at the beginning.