How to sell on Amazon US from Hong Kong

Amazon is the largest eCommerce marketplace in the United States, generating net sales of 574.8 billion in 2023, and attracting nearly triple the monthly traffic of its closest competitor, eBay. Whether you are a small-scale seller or a large corporation, leveraging Amazon’s platform can significantly boost your sales and grow your business. Discover how your business can successfully sell on Amazon US, and learn how Airwallex’s solutions can streamline the process, making it more accessible and hassle-free.

Start selling on Amazon: Guide to open an Amazon store

Becoming an Amazon seller is a great way to start your own business and tap into the vast potential of e-commerce. With access to millions of customers worldwide, selling on Amazon can provide you with a reliable stream of income and the opportunity to scale your business. Here is a step-by-step guide on how to open your own Amazon store.

How to become an Amazon seller and open an Amazon store?

Becoming an Amazon seller is straightforward, and almost anyone can sell on Amazon. 

1. Fill out the application and register for a seller account

You begin by registering a Seller Central account and uploading the following information. 

• Business documents: Company Registration Certificates and Business Registration Regulations

• Valid government issued ID or passport of the legal representative

• Internationally chargeable credit card (VISA or Mastercard)

• Contact information: Email address and phone number of the company

• A bank account to receive payments

• Optional: Taxation information (only applicable if selling on Amazon US site) or Know Your Customer review (only for Amazon EU)

2. Identity verification

Once the information above is verified, you will be prompted to complete an identity verification. This involves taking a picture of your ID, and either take a selfie or opting for a video call with Amazon Associates. In general, selfie verification can be completed within 72 hours.

After completing identity verification, you can set up your Amazon store with your Seller Central account and start selling to over 310 millions Amazon customers across the globe.

What is Seller Central account?

Seller Central account is like your hub for selling in the Amazon store. You can either create your account with your customer account or under a separate business email address. In the Seller Central, you list and price your products, manage your inventory, and fulfill customer orders. You can also create promotions and coupons, track payments and expenses and more. 

Amazon seller account and plans

There are a major decision you will make that will impact the fees involved, and ultimately whether your Amazon US venture will be profitable. 

Individual or Professional Selling Plan

The selling fee for Individual plans are charged on a per item sold basis of US$0.99 per item sold, perfect if you’re selling less than 40 units a month and want to minimise your upfront investment.

Professional plans are charged on a monthly basis of US$39.99 per month. Most sellers choose this plan as it also provides advanced features such as multiple users, advertising, reporting, payment in local currencies, custom shipping fees and more.

With both plans, there is an additional category referral fee charged on each item sold. This ranges between 8% to 20% for major categories such as clothing, accessories, beauty and electronic accessories.

Still hesitate to choose your plan? No worries, Amazon allows you to switch or cancel your selling plan at any time.

What is Fulfillment by Amazon (FBA)?

What is Amazon FBA?

Fulfillment by Amazon (FBA) is a program that allows businesses to outsource their order fulfillment to Amazon, so businesses can focus solely on sales while Amazon handles the rest of the storage, fulfillment, shipping, customer service and returns process. This makes it simple for a seller of any size to start selling to Amazon US today. FBA is included in both Individual and Professional Amazon US plans, with no additional charge.

How can FBA help you to ship and sell products?

By enrolling in FBA, you can send your products to Amazon’s global network of fulfillment centers. Amazon will pick, pack, ship orders, and handle storage, inventory management, customer services and returns. Businesses can then save time and effort by focusing on other aspects of your business such as marketing and product development.

Additionally, Your products will become eligible for Amazon Prime’s free shipping or free Two-Day shipping, which taps into the sisable 180 million Amazon Prime members. Amazon’s global fulfillment also allows businesses to reach customers in different countries with the hassle of managing international shipping. On top of that, customers tend to trust products fulfilled by Amazon more than those shipped by individual sellers. This can lead to higher conversion rates and customer satisfaction.

Taking advantage of FBA’s bulk shipping rates, businesses can save on shipping costs and ultimately increase the profit margins.

There are three major types of fees with Amazon FBA and each of these fees plays a crucial role in determining the overall cost of using Amazon FBA for your business. FBA’s fees work as a scalable ‘pay as you go’ model, where you only pay for the inventory storage space, orders and returns that Amazon fulfills. Please note that all fees mentioned below are accurate as at 4 Jul 2024, and are provided for reference only. For the most up-to-date fees, please visit the official Amazon FBA website.

Fulfillment fee

The fulfillment fee per unit is the fee for picking and packing your orders, shipping and handling, customer service, and product returns. Based on the dimension, weight and category of your product, standard size products can range from US$2.29 to US$6.92 per unit. Large oversize and heavier products could cost up to around US$195 per unit in fulfillment fees.

Monthly inventory storage fee

The monthly fee is based on your weekly average volume of your inventory and the space it occupies in Amazon fulfillment center. This can range from US$0.78 to US$2.40 per cubic foot, depending on the time of year (October - December is 3 - 4x more expensive), size of item and whether it is a dangerous good. 

Returns processing fee

With the recent changes to the return processing fees (dated 1 June 2024), this fee will apply to customer returns in product categories where Amazon offers free returns shipping. Amazon will evaluate the total number of returns of your product and compare it to the category benchmark. If your product’s return rate exceeds this benchmark, a return processing fee will be charged for the excess units based on the product’s size tier and weight. The calculation occurs at the end of each three-month period. For example, for products shipped in June, returns will be tracked through June, July and August. This can range from US$1.78 per unit for small standard products to US$157.35 and up for extra large and heavy products. Products with fewer than 25 units shipped will be exempt from the fee. 

Fulfilled by Merchant (FBM) or Fulfillment by Amazon (FBA)

Unlike FBA, Fulfilled by Merchant (FBM) is the option where the merchant takes full responsibility in handling and fulfilling customer orders. The merchant will be storing, picking and packing orders, shipping the items directly to customers, and handles any customer relations. This option allows merchants more flexibility in directly managing inventory and delivery with precision and efficiency as they can adjust their processes based on specific business needs. Returns and refunds are also done more directly, allowing merchants a more personal touch on the post-order experiences. FBM can be especially beneficial during peak season or businesses with fluctuating demands like seasonal items.

FMB is also a more cost-effective option for small businesses or those with limited budgets. Compared to FBA, it is more time-consuming for sure, but since there are no additional costs associated with fulfillment, the only fees associated with the sales are storage and shipping fees. Merchants are still welcomed to use Amazon Buy Shipping to get pre-negotiated rates that are over 31% lower on average compared to retail ground rates for UPS, FedEx, and USPS.

In short, Fulfilled by Merchant (FBM) gives merchants more control over the fulfillment process while Fulfillment by Amazon (FBA) offers convenience and scalability. It is important to carefully consider your business needs and goals before deciding on a fulfillment strategy. Ultimately, the key is to provide efficient and timely order fulfillment to ensure a positive customer experience and drive success in your e-commerce business.

How to sell on Amazon US from Hong Kong?

Now that you understand your potential operation costs, and with all the registration completed, here are the steps to set up your Amazon US store and get your product up and running.

1. Product Research in US

Before setting up your Amazon US store, it is essential to conduct thorough product research in order to identify profitable opportunities. Explore the Best Sellers and Hot New Releases sections, utilise tools like Amazon Product Opportunity Explorer to analyse sales volume, and analyse customer reviews. Follow up with researching competitors in your niche and optimising listings with specific keywords. Always stay informed about industry trends as adaptation is key for success in the eCommerce market.

2. Setting up your Amazon US account and managing your Amazon shipment from Hong Kong to the US 

With the Seller Central account created, here we move on to the actual operations of your Amazon US store.

Create your own brand

Differentiating your products with a unique brand can enhance your success on Amazon. Develop a brand name, logo, and packaging that aligns with your target market. Businesses should also consider enroll in the Brand Registry for free. Amazon provides additional brand protection by detecting and reporting suspected intellectual property infringement. You are also allowed extra control over your listings with brand-building tools. From that, you can start to grow awareness for your brand, improve your consideration, increase your conversion rate, and build your brand loyalty.

Choose a customs broker

A licensed customs broker enables you to import your product to America and will be instrumental in guiding you through the process of getting your product through customs. They take care of all your product’s entry paperwork, taxes, and documentation, to ensure your product actually makes it into the country. 

If you prefer, you can choose to ship your products by air, through companies like FedEx, DHL, or UPS. These companies include customs brokerage as part of their service.

Importing your products

From here it’s a matter of importing and storing your products. This requires you to find a freight forwarding partner who you can trust and rely on. They handle customs, they organise your freight forwarding, and they even store your inventory. So it pays to do some research, and find one with a strong reputation. Again, a simple Google search will be able to give you an idea of where to start. 

Fulfillment preparation 

Fulfillment preparation centres ensure that your products are packed and prepared for shipment in accordance with Amazon’s standards. If your products don’t meet their standards, you can face fines, or even have your product rejected. This is a necessary step to giving your product the best opportunity to be delivered within the US. 

Storage

As part of the FBA service, Amazon offers storage for suppliers in their fulfillment centres, but only up to a certain size limit. If you’re selling large or oversized items, you may want to look into a third party storage supplier.

3. Develop product listings and product detail pages

Product listing is the detailed information on a product offering. On the other hand, a product detail page is what buyers see when they search listed products on Amazon. To create a product details page, the seller must have a Professional Seller account. On this page, businesses should include high-quality images, relevant keywords, clear product descriptions, condition details, and shipping information, all while setting a competitive price. It is recommended to create compelling product listings with key details in bullet points to optimize readability and search rankings. 

4. Maintain your inventory levels and avoid excess inventory

Inventory management is the art of efficiently tracking and storing products to promptly meet customer needs. Businesses must assess their scale, product types, and target audience as your stock level is a critical factor impacting profitability. Regularly monitoring stock levels is essential for meeting demand. Analyzing sales patterns, adapting to market shifts, and adjusting inventory prevent excess stock and minimize storage costs. While low stock can harm sales and brand reputation, Amazon's tools aid in tracking inventory effectively, including alerts for excess inventory defined as over 90 days' supply or one unit aged 90 days. 

By following these steps, you can successfully sell on Amazon US from Hong Kong. Remember to stay informed about Amazon's policies and guidelines, adapt your strategies based on market trends, and provide excellent customer service to maximize your success on the platform.

Sell on Amazon US with an Airwallex account for your eCommerce business

By now you should have a good idea of how to sell on Amazon US from Hong Kong. Here we would like to offer Airwallex’s all-in-one solution to make your venture to Amazon US ever smoother.

What is Airwallex?

Airwallex offers a comprehensive suite of solutions for businesses of all sizes to manage their international payments, including receiving funds from marketplaces such as Amazon. Airwallex allows businesses to accept payments in 160+ payment methods and 180+ countries. 

What are the advantages of using Airwallex?

One of the most overlooked fees is also the international transaction and currency conversion fees when converting your USD profits back to HKD. Major Hong Kong banks can deduct an additional 3 - 5% from your profit before they reach your Hong Kong bank account. Airwallex is the Business Account for you - with a competitive FX rate at 0.2% above the interbank exchange rate, businesses can maximise your Amazon US profits with Airwallex’s global multi-currency Business Account. 

Open an Amazon-compatible US Global Account with no hidden fees or minimum balance. Receive payments in your customer’s preferred currency, and streamline payments to suppliers in local currency to avoid unnecessary conversion costs. Save up to 90% less in FX fees when converting USD into HKD, and access your HKD funds instantly to free up cash flow and reinvest.

Also check out our Airwallex Borderless Card with zero international transaction fees, perfect for paying Amazon US listing fees. 

If you’re looking to expand your business into the US, get in touch with Airwallex today.

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