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By Wholesale Makeup on August 25, 2022

How to make a profit selling makeup on Amazon (The right way)




         


It Is not a secret that Amazon is one of the most successful companies worldwide, in fact, since its creation it has been growing exponentially every year and now we all know it as one of the most profitable companies in the world, but what is the point in highlighting this? Simply because today's Amazon's success would be real if it wasn't for us, the merchants. Learn here how to properly resell makeup and cosmetics on Amazon and start your own business.


Today we want to give you the best insight possible from our perspective so you can have the tools, platform, resources and more importantly, the knowledge, to actually start your business selling makeup on Amazon.

So, how to sell on Amazon? It is much more than uploading products and seeing what happens. If you plan to use this strategy as an additional or complementary sales channel, you have to do a preliminary study to make sure of certain aspects such as:

 

- Margins

- Competitors

- Demand and supply

- Economic viability

- Logistic conditions

- Etc

 


  • You have to study the right strategy for your product and its possible demand on the market so you can at least have a relatively balanced or low competition on tha particular niche, in this case, you need to go to Amazon and other listings platforms to study the different makeup products other people is selling and take notes, this way you can have a better idea of how much is listed, which products and cosmetics are getting the right attention and have a notion of how much you could sell it for.

    Fortunately, here at Wholesale Makeup we simplify things for you. You can always check the wholesale price and profit estimation of the top selling cosmetics and make up at our website.

    Follow these instructions:

    1.Go to: https://wholesalemakeup.com
    2.Click on products, catalog, category or sales to check our available stock products.     



      3.Search the products you are interested in reselling and check the      description.
     4.Check the wholesale price, individual cost and average retail price. 


        5. Click on add to the cart and finish your buying process. 



Now we are going to analyze the several ways to sell on Amazon and which is the most appropriate in each case.

 

Amazon Retail 


Characteristics: We became part of the Amazon supplier network. When we opt for this method, what happens is that we sell directly to Amazon as the only customer and that is the end of the process with your company and your end customers.

 

This implies that you have to negotiate with them. And this is not easy, because they have the upper hand.

 

If you don't want to get unpleasant surprises, you should be clear about some key aspects:

 

  1. Price: the most critical of all and what you can never overlook is that you are giving them the power to set the price they want. If you don't only sell on Amazon, this matters to you very much because the competition they can do to other of your channels (such as your online store) is potentially very tough.
  • Payment timing: This is very important because, by default, they always pay in 90 days. Can't or won't take it? In that case you can reach an agreement to collect in a month... with a 3% penalty.
  • Returns: Who assumes them? Because they assume that it will be you in all cases. Regardless of the state of the products. If you do not want to do it, you have to negotiate with the corresponding penalty of 2% of the billing.
  • What happens if there is an over-stock? Are they going to make you go through the box for storage? Who bears the costs of shipping back to your warehouses if it occurs?

    So, does Amazon Retail fit your goals? Check the summary:


    - Dealing with clients over whom you also have little control.
    - Quitting control over the product.
    - Forget the headaches of logistics.

 



And what do you get in return? You have a huge and international critical mass of potential buyers.



                                Amazon Marketplace

 

Characteristics: Amazon will see your product as its own, which results in prioritization in terms of sales.

 

They represent the platform as a ' traditional marketplace' where its third parties provide the business and manage that space that is granted to them in a way that complies with the company guidelines.

 

Unlike selling on Amazon Retail, doing so through this way means keeping the last word on the main aspects of the business (price, logistics, inventory...).

 

IMPORTANT: Amazon will be on top of you to make sure you meet its minimum performance requirements.



                                                        Amazon FBA

 

What does the FBA system consist of? (Fulfilled By Amazon)

 

When a merchant chooses this option, what he is actually doing is forgetting about the entire management by hiring Amazon to do it for him.

 

The prices of its comprehensive management service (handling, inventory, shipping, customer service...) do not differ too much from what it would mean to hire them from a third party.

 

This has some advantages and they all stem from the same premise:



-Thousands of merchants have jumped into FBA because basically the general investment that users have to make is much less. This is because there is no need to rent warehouses or pay for facilities that are not profitable.

 

-Amazon sees us with good eyes. We have already said that he will always look first for his own products and those of retail suppliers, but among those outside these categories, his favorites to promote are the FBAs. 


This is good since they have greater control over the processes and the customer experience, which is what obsesses them above all things to maintain a high level of recurrence in their buyers.



Pro Tip: When selling on Amazon FBA, the most important factors you need to take special care of are:


- Good previous niche investigation and product research.
- Calculated investment depending on your niche and product. 

- Being Ok with Amazon managing


Note: In the marketplaces of Spain and LATAM dropshipping is not directly allowed.



You see that there is no 100% ideal model to sell on Amazon and that in every case you have to assess how far you want to go and how much control to give up.

 

This happens when you do business with a giant customer centric company, they need the control since their name is the one on risk here. Leaving the whole control to the other part could result in a lot of mistakes and not so satisfied customers since a decent portion of businesses do not have the best logistics and structure to compete with Amazon's distribution plan and infrastructure.

Nevertheless, this could be a good thing for you, since you can focus all attention on finding the best products for your niche to stay relevant and keep profits coming in while Amazon does the rest.  Doesn't sound that bad, right?

We encourage you to start your own business now! It can start as an extra income, side hustle or you can take as far as a multi thousand dollar company. In any case, it would be powerful and encouraging for you! Who doesn't want an easy extra income every month? 

 

And the best part is that we provide literally everything you might need when starting and managing your business online. We have available for you:

- The top makeup and cosmetics brands worldwide.

- Amazing discounts and free courses for new and recurrent customers.

- Specialized support from our makeup professionals.


IMPORTANT: Please, do not forget to check this official Amazon guide to sell and the terms and conditions between the platform and Wholesale Makeup so you can have the complete information for your business.

AmazonsOfficial guide: https://sell.amazon.com/sell
Guide about operating with https://wholesale makeup.com/pages/amazon


Contact us if you want to know more. Get started now!



Published by Wholesale Makeup August 25, 2022
Wholesale Makeup