Amazon: What New Sellers Need to Know About the World’s Largest E-commerce Marketplace
I. Introduction to the Amazon Marketplace
Amazon (Amazon.com) is an e-commerce platform founded by Jeff Bezos in 1994 in Seattle, Washington, United States. Starting as a small online bookstore, Amazon quickly grew into a global retail giant, offering tens of millions of products across a wide range of categories, including electronics, fashion, home goods, cosmetics, food, toys, books, and many other items.
Today, Amazon is no longer just a shopping website. It has evolved into a multi-layered e-commerce ecosystem that includes a retail platform for third-party sellers, cloud computing services, digital streaming, consumer technology devices, and many other strategic business segments.
II. Why Amazon Is an Opportunity You Cannot Miss
When it comes to global e-commerce, Amazon consistently tops the list for professional sellers. Here are the key reasons why considering building business on this platform:
1. Massive Customer Base
Amazon attracts over 2 billion visits per month and has more than 300 million active customer accounts worldwide. Selling on Amazon means gaining direct access to this enormous pool of potential buyers without needing to invest heavily in marketing from day one.
2. Inherited Brand Trust
Amazon is one of the most trusted brands in the world. When listing your products on the Amazon marketplace, customers immediately extend a higher level of confidence and goodwill compared to purchasing from an unfamiliar website.
3. World-Class Logistics Infrastructure - FBA
Fulfillment by Amazon (FBA) is one of the key factors that has helped Amazon become the world’s leading e-commerce platform. With FBA, sellers only need to send their products to Amazon’s fulfillment centers. From there, Amazon handles the entire logistics process on behalf of the seller, including storage, packing, shipping to customers, and managing post-sale services such as returns and customer support.
4. Multi-Country Marketplace
Amazon currently operates more than 20 marketplaces worldwide, including the United States, Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, India, Australia, and many other countries. Each marketplace functions as an independent market with a large customer base and distinct consumer behavior.
This creates opportunities for sellers to reach hundreds of millions of customers globally, rather than being limited to their domestic market. Through programs such as Amazon Global Selling, businesses can sell their products across multiple countries and leverage Amazon’s logistics and payment infrastructure to expand their international operations more efficiently.
5. A Golden Opportunity for Vietnamese Businesses
According to Amazon Global Selling Vietnam, thousands of Vietnamese businesses have joined the Amazon marketplace and achieved notable success. With advantages such as competitive manufacturing costs, skilled craftsmanship, and continuously improving product quality, many Made-in-Vietnam products, including home goods, handicrafts, furniture, textiles, and personal care products, are gradually establishing a strong presence on the platform.
Many Vietnamese businesses have grown from small shops into online export brands, reaching customers in the United States, Europe, and other major markets through Amazon. This demonstrates that cross-border e-commerce is becoming an important export channel, helping Vietnamese businesses expand their markets, increase revenue, and gradually build their brands on a global scale.
III. Business Models Available on Amazon
Amazon offers a variety of business models to suit different types of sellers:
1. FBA (Fulfillment by Amazon)
Sellers ship their inventory to Amazon's fulfillment centers. Amazon manages the entire order fulfillment process: warehousing, packing, shipping, and post-sale customer service. This is the ideal option for those looking to scale without the complexity of managing logistics.
2. FBM (Fulfillment by Merchant)
Sellers manage their own inventory and handle order fulfillment and shipping directly to customers. This model suits businesses with their own logistics capabilities or those who prefer to maintain full control of their supply chain.
3. Dropshipping
Sellers list products on Amazon without holding any inventory. When an order is placed, the product is shipped directly from the supplier to the customer. This model minimizes upfront investment and inventory risk.
4. Private Label
Sellers manufacture or source products under their own brand and list them on Amazon. This long-term approach helps build a sustainable brand with higher profit margins.
5. Amazon Affiliate (Associate Program)
Ideal for those with large social media followings or high-traffic websites. You share Amazon product links and earn a commission on every successful transaction made through your link.
IV. Step-by-Step Guide to Start Selling on Amazon
To begin your e-commerce journey on Amazon, follow these essential steps:
- Market Research & Product Selection: Identify market demand, analyze competitors, and find high-potential products.
- Register Your Seller Account: Visit sellercentral.amazon.com. Prepare government-issued ID, business address, international payment card, and a receiving bank account.
- Build Your Brand & Product Design: Register for a GTIN. Design a professional logo and packaging. Enroll in Amazon Brand Registry to protect your intellectual property.
- Create an Optimized Product Listing: Write a clear title containing primary keywords. Use high-resolution images (minimum 1000x1000px).
- Manage Operations & Logistics: Decide between FBA and FBM fulfillment. Ship inventory to an Amazon fulfillment center (for FBA). Monitor stock levels regularly to prevent stockouts.
- Deploy Your Marketing Strategy: Run Amazon PPC (Pay-Per-Click) campaigns to boost product visibility. Leverage promotions and Lightning Deals.
V. Understanding Amazon Seller Fees
Understanding the fee structure is critical to running a profitable business on Amazon:
- Account Fee: Individual plan at $0.99 per item sold, or Professional plan at $39.99/month
- Referral Fee: Ranges from 6% to 45% depending on category (typically around 15%)
- FBA Fees (if applicable): Includes fulfillment fees per unit and monthly inventory storage fees
- PPC Advertising Budget: Varies based on budget and keyword competitiveness
- Product sourcing, international shipping, and customs/import duties
VI. Tips for new Amazon sellers
To sustain a healthy and thriving business on Amazon, sellers must strictly follow the platform's policies:
- Comply fully with Amazon's selling policies to avoid account suspension
- Maintain a healthy Account Health score at all times
- Keep order defect rates and cancellation rates as low as possible
- Respond to customer complaints promptly and professionally
- Never use misleading product images or information
- Maintain a solid command of English to communicate effectively with international customers
VII. Conclusion
Amazon Marketplace is the gateway to a global e-commerce market with unlimited revenue potential. However, achieving sustained success on this platform requires thorough preparation, deep expertise, and a well-crafted strategy. Contact Sliner today to stay updated with the latest e-commerce insights
