Want to know how to become Amazon Distributor ? Well you have landed on the right article.
Amazon Suppliers from Amazon are of two types,
the first referred to as distributors, and the second is manufacturers. The simplest definition of a distributor is a third party that works directly with a brand.
Distributors, as a rule, do not manufacture their own products, but rather, they are almost always a part of the manufacturing process of the brands that they represent.
It's a great thing that distributors offer small Amazon sellers and e-commerce businesses because it allows them to have access to high-quality products that are brand-name and of high quality, without having to buy a large quantity of them.
A distributor will sell you any quantity of products you need as long as you want to keep your inventory small. The only disadvantage is that you have to keep a large amount in stock.
Generally, distributors act as buyers for a particular brand, then resell the products to Amazon sellers, wholesalers, and other retailers at a higher price since they hope to turn a profit on their purchase.
In other words, if you are working directly with the manufacturer, you will have to pay more for those products.
Also Read : How to make make money on Amazon in India , Amazon Franchise Cost in India
Advantages of becoming an Amazon Distributor
- Delivery within one or two business days
Being an Amazon Prime member obviously has a lot of advantages, but there is no doubt that the best one is getting unlimited access to 1-hour and 2-hour delivery options.
It is the new norm to have everything delivered within an hour or two. Therefore, a service that allows customers to receive immediate assistance might be able to increase customer loyalty and repeated purchases of your products. - A better understanding of customers' needs
As Amazon Prime's number of customers continues to rise every day, it seems that more and more people are looking for Prime products on the web and filtering and searching for them.
Being able to access prime membership will enable you to get more visibility for your products, increase the chances of getting more sales, and increase the visibility of your brand.
It is a great way to get more attention and sustain your brand's profitability by being discovered by Prime members. - Access to early sales promotions.
Amazon allows Prime members to access special early access offers during any sale periods, such as the Great Indian Sale and other festive sales.
On such events, it's possible for Prime sellers to get a head start on the sale by being given an extra day or a few hours head start. If you are given this benefit, then you will be able to approach the customers before others do.
If you get in touch with them at these early hours of the morning, you are more likely to receive amazon bulk order and more customers because of the rush of the sales season and you are more likely to be able to boost your revenue.
amazon seller requirements
You will need to register on Amazondistribution.in or login with your existing Amazon account to become a member and then complete the process in order to be amazon seller :
- Please provide details about your business.
- Let us know where we can deliver the product to you.
- We need your business licence and authorization letter as well as a photocopy of your id card.
Documents required for this application
To validate your business account, we request a copy of all of the following documents, attested by you, accompanied by a copy of your business licence. We have provided you with a list of documents that are acceptable to validate your business account.
Using your mobile device, take a picture of the scanned image and upload it to your computer or upload the picture from your computer.
- Business licence that is valid.
- Documents proving your identity.
- A letter authorising your transaction.
Business Licence
As part of our customer registration process, we are providing you with a list of documents that are considered valid business licences when you register with AmazonDistribution.in.
There is a requirement for the self-attestation and uploading of these documents to AmazonDistribution.in. It is important that you upload at least one of the following documents when you register.
- GST certificate
- Excise duty registration certificate
- Service Tax registration certificate
- Certificate of Registration under the relevant shops and establishments enactment
- Certificate of Registration under the Indian Trusts Act, 1882
- Professional Tax Certificate
- Certificate of Registration under Societies Registration Act, 186
Documents accepted as proof of authorization
In order to register for Amazondistribution.in, you will have to upload the following documents which will be accepted as valid authority proofs. These documents need to be self-attested and uploaded.
The following documents must be uploaded as part of the registration process.
- Power of attorney for general or special purposes
- A sample self declaration form has been provided on the registration page for download that you can use as a guide
- It is mandatory that a letter of request be submitted with the registration form, signed by a director or authorised representative of the company, and on company letterhead (a sample format is available on the registration page for download)
- An organisation's governing body may pass resolutions that will govern its activities
- An organisation's charter document may state that such authority has been granted
Steps on How to become Amazon distributor
In order to become an Amazon distributor, you first have to sign up at Amazon's Distributor Registration page. After clicking the Register Now button, the next step in the process will be to click on the next screen and begin the process of creating your account.
This distributor registration process will require you to provide details about your business, such as your registered company name, your official address, and your contact information.
- Name of the Business Entity
It is recommended that companies form an LLP, OPC, or Private Limited Company for applications to Amazon since such companies offer protection from liability and are easy to form.
The business promoter, while selling products through online e-commerce portals like Amazon, could theoretically face lawsuits or become legally liable for actions taken by vendors or customers; therefore, limited liability protection is very important when it comes to doing business online.
There are two types of business entities that sell products: Limited Liability Partnership (LLP) and Private Limited Company (PLC), so you will be asked to enter the name of your company if you are selling via those entities. Otherwise, just enter the proprietor's name. - Address and telephone number
An address for the registered office or the place of business of the company should be listed in the appropriate column.
During the registration process you will be required to provide a phone number, which can be a mobile phone, as verification will be done via voice call or SMS. - Information about GST Registration
In general, you don't need a GST registration in order to sell certain products that don't fall under the GST program.
A GSTN number must be provided by all other sellers who wish to sell any good or service to Amazon India, where the Goods and Service Tax is applicable.
You can make your products available on Amazon India by providing the GSTN number first. - Information about your bank account
According to Amazon India, in order to complete the registration of sellers with Amazon, potential sellers will have to provide Amazon with the following information regarding the business account that will be used to receive payments from the businesses to Amazon. - Name of the person who holds the bank account.
- Number of the bank account.
- IFSC code of the bank.
- The type of account you have.
It is possible to begin selling on Amazon India as soon as you have supplied the information above and have completed the mandatory Amazon Partner Quiz.
There are a number of details about listing products on Amazon India, including management of listings as well as complete information about the process.
How to download the Amazon Distribution app?
- Search for the Amazon Distribution app on Google play store or use this link for download.
- The app provides all the functionality of a website, but with the ease of use of an app.
- There is no need to worry about installing the app on your phone as it is light and downloads within a few minutes.
- You will not need to enter your username and password in the app since it automatically remembers them.
- This functionality allows you to add multiple products in a single listing, including all variations.
- The AmazonDistribution app allows you to know at all times what the value of your order is, with a small black stripe at the very bottom of all pages.
- To confirm your order, you need to click the Quick Buy button and pay for the order with a credit card or by cash on delivery (COD).
- It is up to you which payment option you prefer - Credit Card, Cash on Delivery, Credit/Debit Card, Net Banking, NEFT/RTGS.
- This is a service that enables you to request your regular requirements from the past order list, an exclusive service for business customers.
How to list product catalogues?
- A simple title for the page
In order for the page title to be meaningful, it should be concise. In other words, you might lose your customer if you give too much or too little information to them, potentially making them lose interest or not understanding what you're trying to say to them.
There should be a clear title for a product page which includes the name of the product, variations such as colour or size, and if available quantity.
Adding these details to the product title will make it more meaningful to the customer and will make them more likely to click on the product's title. - Product descriptions that are informative
When you are selecting products for display, using product descriptions is a fantastic way of highlighting all of their features.
As opposed to titles, product descriptions can be as descriptive as you wish. Providing information such as measurements, units, material, care instructions, warranties, and any other information relevant to the product's use to the customer will help them understand the product better.
You can learn more about writing catchy product descriptions on our site. - Images of products that are sharp and clear
There is no such liberty for online customers when it comes to the ability to touch and feel the product before making a buying decision.
Customers are only able to view images before making a buying decision. It is therefore essential to have high quality images that are sharp and clear.
To show the product in all its glory, take pictures from different angles. As long as the focus is always on the product, which means that minute details will not be missed out. Moreover, avoid distracting props that are not related to the product.
How to get good quality images for a good product catalogue?
- Images in high resolution
Ensure that all of your products are shot with a high-resolution lens on a professional camera. It is important that the photos are not blurry and are as clear as possible.
You should be able to clearly understand what the product is when you view the photos. During the shooting of your product, you need to make sure that the lighting is not too dim or too bright.
It is important to produce high-quality product images so that your customers are able to make an informed decision when buying your product and earn their trust. - Angle of the image
There is a term used to describe the first image of the search and product pages, which is called a 'main image.' You should always keep the main image of the product as close to the front as possible.
It is not appropriate to have the back of the product as the main image for a product display.
As a result, the rest of the images should demonstrate every other angle that the product can be viewed from in order to clearly portray what the customer is purchasing. - The background of the screen is white
If you upload an image, make sure that the background is white for all your products. This will help in highlighting the product's most prominent features.
To distinguish between a white background and a white product, if the product is white in colour, you can slightly tweak the tone of the white background. - Margin rates on Amazon
The most common method for selling on Amazon is through the Fulfilment-by-Amazon (FBA) program. Unfortunately, there are a number of additional methods available.
The thing that makes Amazon FBA so appealing for sellers is that is simplifies the process of selling on Amazon, as with any business, there will be some expenses and fees on the seller's side.
You select a product, arrange for the warehouse to receive it, then set up an Amazon listing, and then it is Amazon's responsibility to deal with everything else.
At this point you will see sales and profits in your account. Profit margins should be as high as possible.
The success of small companies, especially those in their first few years, is often a struggle, but Amazon Small Business sellers enjoy healthy profit margins. - According to the majority of sellers (65%) who experience profit margins higher than 10%, 65% report higher profit margins than 10%.
- The majority of sellers even see profit margins greater than 20%.
- On the other hand, 8 percent of respondents said their companies weren't yet profitable, and 8 percent weren't sure.
Tips to improve your sales on Amazon
- Be a source of information
You can increase the sales of your products on Amazon by differentiating your brand from your competitors, raising awareness of your product, and attracting the right customers to your product.
It is important to leverage yourself and your brand in order to accomplish this as much as possible. - Seek the help of influential people
Most consumers, when researching a product, will seek out reviews from sources they trust.
In addition to social media influencers, industry leaders, and even celebrities who may be willing to talk about your product and share their opinions, there are many other sources of information.
49% of consumers in one study of a large group of consumers agreed that they, when they decide which products to buy, take the recommendations and advice of influencers into consideration.
- Make use of a Sponsored Products Campaign
The same as many other channels, if you are willing to spend money to play, you will find greater success on Amazon.
Sponsored Products are an effective way to get your brand noticed by more people online than your competitors can. - Increase the number of reviews
In order to build trust in your brand and by extension increase sales on Amazon, it is very important for you to receive many good reviews from your customers and make those reviews visible to potential buyers.
The first thing you will need to do is devise a strategy that will encourage customers to leave helpful and authentic reviews on your product listing pages.The tone of the review will come across as disingenuous if you try to take over too much control over it.
If possible, you should try to get as many reviews as possible so that potential customers can get a full picture of what your business has to offer. - Search engine optimization
It is a relatively straightforward process to get your products to show up higher in a customer's search results, thereby offering a significant advantage over your competition.
In order to increase the amount of sales on Amazon, you must figure out how you can optimise the product listings for Amazon's search engine. - Deliver a buying experience that is unmatched in the industry
Creating an excellent buying experience for your customers is a way to create a memorable experience on Amazon, similar to what you do with other selling channels.
In order to make sure that your buying experience is a success, there is no single magic formula that you can implement, however, there are a number of approaches you can take to help establish your reputation and encourage buyers to consider you as an alternative to your competitors.
Can you also sell products on Amazon without GST?
Generally, e-commerce companies (such as Amazon Seller Services Private Limited (ASSPL), a company that operates the Amazon marketplace) must collect 1% of the net value of the taxable sales made by sellers on Amazon marketplaces when the seller performs taxable online sales.
This includes e-commerce companies (such as Amazon Seller Services Private Limited) that collect consideration for taxable online sales made by sellers.
Amazon is responsible for remitting this sum known as "Tax Collection at Source" (TCS), which is collected on a monthly basis by the Government and remitted to it by Amazon.
The Sellers will be able to make use of the TCS credit in order to reduce their output taxes due to the Goods and Services Tax (“GST”).
The seller of taxable products or services will therefore have to submit a GST registration to Amazon Marketplace if the seller is contributing those products or services through the marketplace, regardless of their sales threshold.
For sellers to sell taxable products through Amazon's marketplace, they need to submit an account number to the site with a GST number and assign applicable GST rates to their goods (Product Tax Code or PTC).
There are a number of products which have been exempted from GST by the Government and not subject to GST, for example goods described as exempted supplies, which are not subject to GST.
Books, maps, plastic bangles, and certain notified handicrafts are examples of some of the goods that are exempted from GST.
In order to sell GST exempt products exclusively, you should choose a PTC which is suitable for enabling GST exempt products to be sold.If you are searching for products which are exempt from GST, you will be directed to the GST portal.
In the event that you need further clarifications, you can also ask your Tax Consultant or GST service provider for further information. The government may update this list in the future.
How to contact Amazon Distribution support?
Amazon Seller Support is here to help you regardless of whether you are a beginner or an experienced seller.
Whether you need help or want to resolve your issue, you can contact us via Seller Central. In addition to getting support online, Amazon sellers are also able to get support over the phone.
If you have any questions, doubts, issues, or problems, please feel free to contact our trained seller support team any time of day. The customer support we provide is available in the following languages: English, Hindi, Kannada, Tamil, and Telugu.
The Seller University program is available to all Amazon sellers at no charge. It is your one-stop shop for self-learning as an Amazon Seller, with access to videos, tutorials, and step-by-step instructions on how to succeed as a seller.
There are a number of learning options you can opt for for example:
- Watch videos and read instruction materials to learn more.
- There are also online seminars with live chats where doubts can be addressed.
- Join us for one of our live classroom sessions taking place in over 17 cities around the world.
You can contact customer support on toll free number: 1800-30009024 (10 am to 7 pm)
Frequently Asked Questions (FAQs)
Q. What is Amazon's distribution method?
Ans. Amazon Service Provider (Amazon FBA) - This service enables Amazon to fulfil orders on behalf of sellers on Amazon's marketplace.
Selling through the Amazon Marketplace is a great way to get products into the hands of customers who are interested in your products.
Q. How are Amazon goods distributed?
Ans. It is common practice in e-commerce supply chains to engage third-party logistics providers for parcel delivery, while e-fulfillment centres are generally owned by online retailers and parcels are assigned to the third parties.
Across multiple markets, they provide a variety of parcel delivery services that are operated by a network of parcel hubs, sortation centres, and parcel delivery centres
Q. How many Amazon distributions are there?
Ans. According to logistics consulting firm MWPVL International Inc. Amazon operates 1,137 fulfilment centres of various sizes in the United States, and has announced plans to open 331 more centres before the end of 2016.
Q. What are Amazon distribution Centres called?
Ans. Amazon Distribution centres are referred to as e-fulfilment centres.