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How does selling on Amazon Australia work?

  • October 11 2019
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How does selling on Amazon Australia work?

By Louise Chan
October 11 2019

Amazon is one of the biggest names in the e-commerce industry, and the business has been expanding its reach all over the world.

How does selling on Amazon Australia work?

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  • October 11 2019
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You may be able to profit from Amazon’s wide reach by becoming a seller through its platform. Here’s what you need to know in order to get started.

Who can sell products on Amazon?

Amazon Australia doesn’t have a strict set of eligibility criteria for its sellers.

To become an Amazon seller, you simply need to provide certain personal and financial information that they can verify.

Information needed for Amazon seller account
If you’re sure about opening a seller account, provide the following information during the registration process:

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  • Business name
  • Business address and contact details
  • Your phone number*
  • Your tax identity information
  • An internationally chargeable credit card with a valid billing address

*The phone number you provide is for the registration process – it’s the number that Amazon representatives will use to contact you in order to verify your account.

What products can you sell?

Amazon has over 20 product categories in its marketplace, and you may sell any eligible product using your seller account. Eligible categories include but are not limited to:

  • Automotive
  • Books
  • Beauty
  • Consumer Electronics (devices)
  • Clothing & Accessories
  • Electronics Accessories
  • Health & Personal Care (including Personal Care Appliances)
  • Jewellery
  • Kitchen (including Kitchen Appliances)
  • Lawn and Garden
  • Large Appliances
  • Musical Instruments
  • Mobile Phone Handsets
  • Music
  • Sports
  • Tools & Home Improvement
  • Toys & Games
  • Video Game Consoles

There’s also an “Everything Else” category for products that don’t fit in Amazon’s default categories.

The only restrictions for product listings are illegal and illegally marketed products or those that are explicitly disallowed under Amazon’s policy. Examples of prohibited products are:

  • Ammunition
  • Prescription medication
  • Illegal drugs
  • Firearms
  • Tobacco

The Seller Central page provides a comprehensive list of restricted products.

How to price products

Your price can directly affect the demand for your product as well as your profits. It’s important to remember that offering the lowest price to increase your sales may not always be the best way to increase profits.

Consider checking out sellers that have similar listings and compare their prices. You may also discuss pricing with other sellers through message boards. Other sellers may be competition, but you may also pick up some tips on pricing from them.

Likewise, consider costs and fees that you may incur from successful transactions, such as shipping and referral fees. Selling on Amazon isn’t the same as selling in your own physical or online shop. Amazon charges a referral fee for each item sold through their platform, and the effective rates depend on the product’s category.

For instance, if you sell sports equipment, Amazon will charge 15 per cent each time you make a sale. But if you offer computer accessories, the referral fee slides down to 6 per cent.

Finally, you need to be flexible with pricing to get better rankings and more referrals. Consider setting a price range you can accept so that it may be easier for you to adjust your prices to lift your ranking.

How much will Amazon Australia charge?

Amazon Australia charges sellers a monthly subscription fee amounting to $49.95. This amount may be subject to change depending on Amazon’s promotions.

There’s also the referral fees – as discussed in the previous section – which ranges from 6 to 15 per cent of the total sales price. The referral fee serves as the platform’s commission for successful transactions.

How to ship products?

Shipping is also an important factor to consider. There are two ways you can ship products to your buyers: direct or through the Amazon Fulfilment Centre.

Self-arranged shipping
A direct approach would require you to organise and manage shipping for all successful sales you generate. This means you manage the storage, wrapping and shipment of each item that was purchased.

Fulfilment by Amazon
Fulfilment by Amazon (FBA) means that the items would be stored in Amazon Fulfilment Centres and they will take care of tagging, bagging and shipping the items that were purchased from your listings. FBA is the convenient option, but it also incurs fees for storage and handling of your products. Fees for FBA are computed against the item’s size, weight and duration of storage.

How can I start selling?

To start selling on Amazon Australia, you simply need to go on Amazon’s seller hub and click “Start Selling”.

Provide all the requested information and verify them when a representative contacts you.

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How does selling on Amazon Australia work?
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About the author

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Louise is a content producer for Momentum Media’s nestegg who likes keeping up-to-date with all the ways people can work towards financial stability in 2019. She also enjoys turning complex information into easy-to-digest, practical tips to help those who want to achieve financial independence.

About the author

Louise is a content producer for Momentum Media’s nestegg who likes keeping up-to-date with all the ways people can work towards financial stability in 2019. She also enjoys turning complex information into easy-to-digest, practical tips to help those who want to achieve financial independence.

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