Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work. Customer reviews, 1-Click shopping, personalised recommendations, Prime, Fulfilment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon.
Amazon’s mission is to make customers' lives better and easier every day by relentlessly inventing on their behalf. They work to provide a broad selection, value, and convenience across a range of customer experiences, including online shopping, cloud computing, streaming entertainment, consumer electronic devices, advertising, healthcare, AI services, and more.
1️⃣ Why should I sell my products on Amazon?
✅ Massive Customer Reach
- Access to crores of customers across India
- Opportunity to sell beyond your local market
✅ Built-in Trust
- Customers trust Amazon’s payment system and delivery reliability
- Easier for new sellers to gain the confidence of buyers
✅ Low Setup Cost
- No need for a physical shop
- No need to build your own website
- No need to arrange a payment gateway
✅ Logistics Support
- Storage, packing, delivery, and returns (if using FBA)
- Pan-India shipping network
✅ Business Growth Tools
- Seller dashboard & analytics
- Sponsored ads
- Brand-building features
2️⃣ Pros and Cons of Using Amazon for Marketing
✔ Pros
| Advantage | Explanation |
|---|---|
| Large marketplace | Huge daily traffic |
| Fast business launch | Can start in days |
| Secure payments | Direct bank settlement |
| Marketing tools | Sponsored ads, deals |
| Logistics support | Amazon handles delivery (FBA) |
❌ Cons
| Disadvantage | Explanation |
|---|---|
| Competition | Many sellers sell similar products |
| Fees | Referral & shipping fees |
| Less brand control | Amazon controls platform rules |
| Price wars | Some sellers undercut pricing |
👉 Tip: Unique/local/quality products reduce competition pressure.
3️⃣ What type of products can be sold?
Almost everything except restricted items.
📦 Popular Categories
- Grocery & food items (with proper compliance)
- Clothing & textiles
- Handicrafts & handmade items
- Electronics & accessories
- Beauty & personal care
- Home & kitchen products
- Agricultural products (processed items)
🚫 Restricted Items (Examples)
- Illegal products
- Certain chemicals
- Prescription medicines
- Weapons
Always check Amazon’s restricted product policy before listing.
4️⃣ Registration Steps & Documents Needed
📝 Documents Required (India)
- PAN Card
- GST Registration (required for most categories)
- Bank Account
- Mobile Number
- Email ID
- Pickup Address
🪜 Steps to Register
- Visit Amazon Seller Central India
- Create an account using email & mobile
- Submit PAN & GST details
- Add bank account information
- Provide pickup address
- Complete identity verification
- Start listing products
Registration can be completed within 1–3 days if documents are ready.
5️⃣ What Happens When an Order Is Placed?
The delivery process depends on the fulfilment method chosen.
🔹 Option 1: Easy Ship (Recommended for beginners)
- Customer places order
- You receive a notification
- Pack the product
- Amazon delivery partner picks it up
- Delivered to the customer
- Payment is credited to your bank after the settlement cycle
🔹 Option 2: Fulfilment by Amazon (FBA)
- You send bulk inventory to Amazon warehouse
- Customer places order
- Amazon packs & ships the product
- Amazon handles returns
- Payment credited after fees
Best for scaling businesses.
🔹 Option 3: Self-Ship
- Customer places order
- You pack the product
- You arrange a courier
- Upload tracking details
- Delivery completed
- Payment settled
💰 How Payment Works
- Customer pays Amazon
- Amazon deducts fees
- The remaining amount was transferred to your bank account
- Usually settled every 7–14 days
⚠ Important to Remember
- Good packaging = fewer returns
- Competitive pricing = more sales
- Clear product images = higher conversion
- Quick dispatch = better ratings
Here is a clear, practical breakdown of profit calculation, Amazon's fee structure, and Amazon vs Flipkart comparison (India-focused).
1️⃣ Profit Calculation Example (Amazon India)
Let’s assume you sell:
📌 Typical Cost Structure Example
| Item | Amount (₹) |
|---|---|
| Selling Price | 500 |
| Amazon Referral Fee (8–20% category-based, assume 12%) | 60 |
| Closing Fee | 20 |
| Shipping Fee (Easy Ship example) | 60 |
| GST on fees (18%) | 25 |
| Packaging Cost | 20 |
| Product Cost (raw material + labour) | 200 |
| Total Cost | 385 |
💰 Net Profit
₹500 – ₹385 = ₹115 profit per unit
👉 Profit Margin = 23%
📌 If You Use FBA
Storage + FBA fees may slightly increase cost but:
- Higher conversion
- Prime eligibility
- Faster scaling
2️⃣ Amazon India Fee Structure Breakdown
Selling on Amazon involves the following fees:
🔹 1. Referral Fee
- % of selling price
- Varies by category
- Usually 5% – 20%
Examples:
- Grocery: 5–12%
- Fashion: 15–17%
- Electronics: 5–8%
🔹 2. Closing Fee
- Fixed charge per item
- Based on the price slab
- Usually ₹10–₹50
🔹 3. Shipping Fee
Depends on:
- Weight
- Distance (local/zonal/national)
Approx:
- ₹40–₹120 per unit (Easy Ship)
- Included in FBA fee (bundled)
🔹 4. FBA Fees (If using Fulfilment by Amazon)
Includes:
- Pick & pack
- Storage
- Delivery
- Returns handling
🔹 5. Advertising Cost (Optional)
- Pay-per-click (PPC)
- You decide the budget
- ₹500–₹5000 per month for beginners
3️⃣ Amazon vs Flipkart Comparison (India)
| Feature | Amazon | Flipkart |
|---|---|---|
| Customer Base | Very large, premium buyers | Very large, price-sensitive buyers |
| Trust Level | Very high | High |
| Logistics | Strong nationwide FBA network | Strong Ekart network |
| Fees | Slightly higher in some categories | Slightly lower in some categories |
| Competition | Very high | High |
| Ads Platform | Advanced & effective | Good but simpler |
| Best For | Brands, quality products | Competitive pricing, fast-moving goods |
📌 Which Should You Choose?
Choose Amazon if:
- You want brand building
- You sell premium or unique products
- You want Prime exposure
Choose Flipkart if:
- You want volume selling
- You compete on price
- You sell mass-market products
💡 Smart Strategy (Recommended)
Many sellers start with:
- Amazon first (learn system)
- Expand to Flipkart after 3–6 months
- Later add Meesho for the price-sensitive market
Selling on Amazon offers strong growth potential due to its massive customer base, trusted platform, and nationwide logistics support. While there are fees such as referral, closing, and shipping charges, sellers can still achieve healthy profit margins with proper pricing and cost control.
Compared to Flipkart, Amazon is generally better for brand building and premium or unique products, whereas Flipkart may suit high-volume, price-competitive selling.
Overall, success depends on:
- Choosing the right product
- Understanding the fee structure
- Calculating profit carefully
- Providing good packaging and fast delivery
With the right strategy, online marketplaces can significantly expand your business beyond local limits.
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