Amazon Marketplace: how does it work?

What is Amazon Marketplace?

The Marketplace is a direct exchange between sellers and customers on Amazon. It operates like an open market. In practical terms, any company can sign up.

The site makes its ecosystem available:

• Logistical assistance

• Marketing

• Technological

• Etc.

Sellers can thus focus on their core business .

The difference between Amazon Retail and Amazon Marketplace

Retail" means retail sales and refers to the model where Amazon acts as a direct seller . Amazon buys items directly from suppliers before reselling them at a mark-up.

No commission is charged on sales, as Amazon sells the products.

On the other hand, on Amazon Marketplace third-party sellers offer their products directly via the platform.

These sellers control their prices and conditions of sale.

In exchange Amazon earns commissions on every sale.

Why sell on Amazon Marketplace?

Selling on Amazon Marketplace offers a number of advantages:

Advantages for sellers (visibility, logistics)

Selling on Amazon gives you access to considerable visibility . With over 150 million of monthly visitors, sellers can reach a wide audience.

What's more, you can delegate the whole logistics side of your business to them. This includes storage, delivery and even customer service. The subcontracting offered by the giant allows sellers to concentrate on their core business.

Access to a global market with millions of buyers

At the same time, the platform is a gateway to the global market .

As mentioned above, its scope extends far beyond the American continent.

In practice, companies can tap the potential of millions of buyers all over the world (USA, Europe, Asia, etc.).

Inventory management and delivery options with Amazon FBA (Fulfillment by Amazon)

This service has been set up to help sellers logistics .

It's also handy for delivering items quickly. In short, this tool is ideal for boosting competitiveness and streamlining organization by taking over stock management.

How does Amazon Marketplace work for sellers?

Sellers must follow Amazon's process to start selling:

Create a seller account on Amazon

Register to become an Amazon seller is simple. You just need to provide a few essential documents:

• Official identification

• Banking information

• In some cases, tax documents depending on your country of origin

Amazon offers two types of accounts:

• The special account : ideal for occasional sellers who make fewer than 40 sales a month. There are no monthly fees, but a €0.99 commission is charged on each sale.

• Professional account : Designed for businesses, this account costs around €39 per month (excluding VAT), and provides access to advanced features such as detailed reporting and volume inventory management.

Publish and optimize your products on the platform

To maximize the visibility of your products, start by creating a detailed product sheet with quality photos and an accurate description.

Optimizing listings with relevant keywords helps improve SEO and attract more customers.

Visit customer reviews also play an important role .

Amazon highlights top-rated products . What's more, promotions such as lightning deals and coupons are effective tools for boosting visibility and increasing sales.

Manage orders and payments via Amazon Seller Central

Seller Central interface simplifies order and payment management .

Sellers can track their performance in real time thanks to sales statistics and shipment tracking.

They can ship their products themselves or delegate to Amazon, which can optimize logistics and reduce storage costs.

Amazon also offers marketing and reporting tools to maximize sales. The centralized interface enables efficient management of payments and commissions.

What are the fees and commissions on Amazon Marketplace?

On Amazon Marketplace, sellers are subject to several types of fees:

• Subscription fees For professional sellers, a monthly subscription of around €39 (excl. VAT) is required. Individual sellers, on the other hand, pay no monthly fee, but are charged €0.99 per sale.

• Sales commissions Commission: Amazon takes a commission on each sale, which varies according to product category. This percentage generally ranges from 6% to 45%. For example, commissions are around 8% for electronics and up to 17% for clothing.

• Logistics costs (FBA) If you use the "Shipped by Amazon" (FBA) service, additional charges apply for the storage and shipment of products. These charges are calculated according to the size, weight and volume of your items.

• Advertising costs If you choose to promote your products via Amazon ads (e.g. Sponsored Products), a cost-per-click (CPC) fee is applied each time a customer clicks on your ad.

The disadvantages of selling on Amazon Marketplace

Although Amazon Marketplace is an advantageous platform for sellers, it presents some disadvantages related to competition, costs, Amazon policies and returns management.

• Strong competition and pressure on prices The platform is extremely competitive, with many sellers offering similar products. This competition often leads to lower prices, which reduces profit margins and can affect long-term profitability.

• Dependence on Amazon's policies Sellers must comply with Amazon's rules, which are subject to change without notice. Decisions such as suspending accounts or adding new rules can destabilize sellers' businesses.

• FBA commission and fee costs FBA: Although FBA makes logistics easier, it can add up quickly.

• Managing customer reviews and feedback Customer reviews play an essential role in product visibility, but they can also represent a risk. Frequent or negative feedback can damage a seller's reputation and lead to financial loss.

Hero helps you optimize your cash flow as an Amazon Marketplace seller

Hero is a complete solution for payment and cash flow management specially designed to support online sellers, especially those present on Amazon Marketplace.

Hero offers payment management tools for sellers active on Amazon.

For example:

• Short-term financing Hero helps to manage cash flow needs by offering invoice advance solutions and rapid financing, facilitating continued growth.

• Multi-channel payments Sales: Sellers can accept card payments at reduced fees, or via payment links sent directly to customers by email or SMS, enhancing sales management flexibility.

• Optimizing cash flow By combining short-term financing services with payment management, Hero enables vendors to regulate cash flow, pay suppliers on time and reinvest in inventory quickly.

These services enable us to maintain continuous growth, while ensuring simplified management and greater predictability of financial flows.

Ainsin, Amazon Marketplace offers real opportunities, but cost management and competition call for good organization.

Solutions like Hero help you better manage cash flow and support vendor growth, by simplifying the management of payments and financial flows. This enables you to remain competitive while optimizing your business on Amazon Marketplace .