How to sell in Amazon Mexico: top advices to start selling

As an entrepreneur or owner of a micro business, either with an established business in Mexico or if you are about to start one, you might ask yourself “How to sell on Amazon Mexico?”

We know that marketplaces have been an excellent way of selling products and services for different brands, so in this article we are going to explore how you can benefit from this online marketplace and grow your business under the name of an established and reliable company.

Selling in Amazon Mexico: how much does it cost?

There are three different categories of costs: Membership, fees and commissions

Those three concepts can be calculated based on the number of sales on Amazon, the costs of the products, as well as their size and weight. Now, let’s go over each one of them:

Membership

Create your seller account, choose your catalogue and create the description of each item. Fill out a form with your basic information, company name and billing address, and you will have to pay the cost of the membership, which is $600 MXN per month. The first payment of your membership as an Amazon seller will be made from your bank card data and the subsequent ones from your sales.

Rates

Every time you sell an item on the marketplace, Amazon will take a part of these sales, for the most part it is a percentage that can vary depending on the category of product and the price.

Amazon Logistics Management

Amazon offers its sellers storage and shipment of products, plus it could also take care of:

• Delivery
• Pack and label items
• Distribution through Amazon warehouses in Mexico
• Returns management
• Scan and publishment of stock

The cost to sellers is a fee charged monthly based on the average daily volume (measured in cubic feet) times the space your inventory occupies in fulfillment centers. Amazon Fulfillment Fees is divided by the weight and size of the products.

Other fees

For each sale you make on Amazon, a commission will be taken between 8% and 15% of the total cost of the product, depending on the category, in addition to a flat rate per product managed by Amazon Fulfillment. As well, there are charges such as return fees, long-term storage fees, and optional service for removal or destruction of inventory.

Top advices to start selling on Amazon Mexico

We share with you 5 top advices to guide you on how to sell on Amazon as a professional.

Analyze your product and market

This marketplace’s catalogue has thousands of categories and millions of products, consider if your product offers a good profit margin and if it has low competition. Investigate if there are more sellers that offer your same product.

Select your sales regime

Seller Marketplace and Seller Retail have its own advantages and disadvantages.

• Retail Seller. You will only sell to Amazon, not to the end customer. The negotiation will be direct with Amazon, so you must be very clear with the return policies, stock and also that the payment method is 90 days. Amazon will decide the price at which it sells your products, but it will prioritize the sale on its platform.
• Marketplace Seller. You sell to the end customer, and Amazon will be an intermediary, you choose the selling prices. You must decide if you sell as FBM (Fulfilled By Merchant) which is when you as a seller manage everything from the order to logistics, delivery… The alternative is called FBA (Fulfilled By Amazon), in this case they take care of absolutely everything: we send them the product and they market it.

Upload catalogues or products

Enter Amazon Seller Central and locate each product by searching for its ASIN, name or EAN13 to add the price and the stock for sale. If the product is not listed, fill in the fields. Do not forget to upload good quality photos of the product.

Get the Buy Box

If you product is sold by many other sellers, the Buy Box button can make the difference between selling or not selling.

To learn how to sell on Amazon and win the Buy Box, you must provide the following information:

• 3 months of good sales history
• An FBA service
• Excellent delivery times; be aware not to drop below 97%
• The best price, including taxes and shipping costs
• Good reviews and rating
• Efficient and fast response times to customers

Work on your reach

To start driving traffic to your products, you have at your disposal the Amazon PPC platform, an alternative that is not as expensive as Google or Facebook Ads and allows you to create campaigns based on keywords, bids in real time and obtain a prominent space in SEO.