What Do Business Owners Need to Know Before Selling on Amazon? | FBC, Canada's Farm & Small Business Tax Specialist

What Do Business Owners Need to Know Before Selling on Amazon?

What Do Business Owners Need to Know Before Selling on Amazon?

What Do Business Owners Need to Know Before Selling on Amazon?

Putting up a business has never been easier now that we have e-commerce. Platforms like eBay and Amazon have paved the way for small- and medium-enterprises to reach more customers globally.

Online marketplaces can promote your products and services to a targeted audience with a few clicks.

Before you create a seller’s profile on the e-commerce site, there’s plenty of vital information to consider. It’s essential for you to know about Amazon brand registry requirements.

Also, you should be able to determine if Amazon’s cloud storage solutions are enough for your business or you need more.

Other crucial knowledge you must have is regarding online payment options on the website.

What Are Online Payment Options?

Since you’ll be using an e-commerce platform like Amazon, it makes more sense that payment for your product or service will be digital. The system aids in receiving electronic payments for online transactions.

The most common type of payment mode is through credit or debit cards. Over the years, however, several other methods have been developed; offering more convenience and security for both the seller and buyer.

Payment Options Accepted By Amazon

  1. Credit/Debit Cards

For customers, one significant advantage of using credit or debit cards is that they no longer need to lug around large amounts of cash.

It also offers additional protection against lost, damaged, or stolen goods especially when they lose the original receipt. Plus, there’s credit card companies that provide insurance for purchases with a larger price tag.

For sellers, accepting credit or debit cards leads to increased sales because of its convenience. Buyers are more likely to avail your products if all they need to do is provide their credit card information at checkout.

One disadvantage, though, is the hefty processing fees charged by banks and credit companies. They collect a percentage of the sale amount.

  1. Checking Account

The majority of customers who are 40 years old and above are more comfortable with paying a seller through checks than through cash or credit cards.

Clients who order in bulk also prefer to pay using checks. These can be processed electronically at the point of purchase, similar to how credit cards work. But, they cost less to process.

Take note that the following items can’t be purchased on Amazon using a checking account:

  • Gift Cards
  • Amazon Prime Memberships
  • Digital Items (Music, E-books, Games, Software)
  • Subscribe & Save Orders
  • Purchases that exceed a specified amount (This depends on the account's history with Amazon)
  1. Gift Card

Amazon Gift Cards can come in a physical form or as an online code. They can be redeemed for any product on Amazon.

What’s great about this payment option is that the customer can use it or they can give it as a gift to others. Plus, they don’t have an expiration date.

PayPal users can’t use the payment system for Amazon purchases except for buying gift cards.

  1. Amazon Pay

Amazon Pay is the e-commerce website’s competitor to PayPal and other online payment platforms.

Customers can add money to their digital wallet from multiple payment methods and use the electronic cash when they need it.

One significant advantage of using Amazon Pay is quicker and easier checkout.

The platform also doesn’t charge any fees for transactions with third-party sites and organizations that accept Amazon Pay.

  1. Amazon PayCode

Amazon collaborated with Western Union for this method. PayCode enables customers to buy goods from the e-store and pay for them in-person using their local currency at any Western Union location.

This is intended for shoppers who want to purchase items that aren’t available in their own region.

  1. Shop with Points

The online marketplace has a membership rewards system for its customers where purchases are converted to points that buyers can use to buy goods.

It’s flexible in that the customer has the option to use as many or as few points as they want for part of their order and pay using the other options with the remaining balance.

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Because Amazon has established itself as a leader in the e-commerce industry, selling your products on their site increases your sales.

Additionally, you wouldn’t need to exert much effort in getting customers to trust you and your brand because you’re already on a reliable platform.

“Whether socks or stocks, I like buying quality merchandise when it is marked down.” — Warren Buffett