How to Determine if your Business is a Good Fit for Amazon?

Are you wondering if Amazon is the right place to start your business?

This article will answer all of the questions. This article will explain the differences between business types and provide advice on how to maximize your Amazon business.

Understand your business type

Do you want to be an Amazon seller?

Do you know your business type? You can choose a business type …!

This is something you may have heard of. It is vital to be aware of this. There are several ways by which businesses/individuals sell on amazon.

Private label:

You might be interested in buying a product directly from the manufacturer and then selling it under your own name on Amazon. You are now a private label seller. Then, you have to ask yourself “Is it profitable?”
Yes, it can be lucrative, but you need to make sure that the following are checked:

  • Are my products bestselling

Make sure to invest in products that are already well-received. Do not take chances selling unique products.

  • Is my product a patent?

For selling, choose generic and high-ranking products. Avoid patent products. They are highly protected and could lead to trouble.

  • What about my competitors?

To determine the level of competition, compare other private label product pricing, listings, content, customer reviews, and pricing.

  • Are there any good suppliers?

Now that you have selected the products, you will be looking for a supplier. Before you choose a supplier, there are several things to keep in mind:

  • Products
  • Minimum Order Quantity (MOQ).
  • Private label policy
  • Prices for goods


  • Do I need a Brand Identity and a Logo?

It is best to hire a designer before you start selling products. It takes approximately 6-8 months to register a logo.

Retail/Online arbitrage

You can sell on Amazon a product that you bought at a bargain price from a local supplier or store. This is called retail arbitrage. The same applies to online arbitrage if the product was purchased from an online store.Which one is the best? Both have their advantages and disadvantages.

To get better returns, you can combine online and retail arbitrage.To determine if Amazon is a retailer/online arbitrage, you will need to consider the following.

  • Is my pricing competitive?

Keep a scanner app handy if you’re buying products from local stores. This will allow you to compare the price with Amazon. Keep comparing pricing and analyzing the prices of suppliers if you’re buying.

  • Are there restrictions on my products?

When you go to buy bulk products at a discount rate, but you attempt to add them, you get the message “This product is restricted”. What do you do? You should also check amazon restricted products before you invest in any product.

  • What is the level of competition?

You might be selling the same product as someone else. Check out the Amazon search results for product competition. You should look for these factors:

  • Price: Do they offer a lower price? Or their price matches yours
  • Customer feedback: Do they rank highly on customer feedback?
  • Shipping: Do they offer free shipping?
  • How does the product perform on Amazon?

You can learn from customer reviews how the product performs and what you can expect in the future.

Understanding Amazon’s fees

Once you have determined your business type, it is important to understand Amazon fees and determine if you can make a profit. Below are the two most important fees you should consider.

  • Amazon commission fees

Amazon offers two plans

  • For professionals
  • Individual

You can choose any Selling Plan you like and then switch them if necessary.

Individual selling plans

These plans can be described as “pay per sale.” This plan allows you to only pay when the product sells .

Professional Selling Plan

The professional selling plan is best for you if you are able to sell more than 40 products each month. The professional seller plan requires a $39.99 monthly subscription fee. This plan does not require you to pay any monthly fees, regardless of how many products are sold.

Fulfillment by Amazon

FBA Amazon’s program that takes care of packaging, shipping, handling and delivery. FBA fees are dependent on the item’s weight and dimension. Sellers are not required to pay it. FBA offers many benefits that we will be discussing in the next blogs.

However, you should first check the amazon fba fees to make sure that FBA is a viable fulfillment option.


Amazon has finally become a place where businesses can flourish. It doesn’t matter what product you sell. Keep these points in mind and keep checking back for more information about selling on Amazon.

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