If you’re in the food industry, expanding your business to online platforms like Amazon can open up a world of opportunities. With millions of hungry customers browsing Amazon’s virtual aisles, selling your mouthwatering treats on this e-commerce giant can lead to delectable profits. But where should you start? How do you navigate the unique challenges of selling food products in the online marketplace? In this article, we’ll guide you through the process, providing you with actionable steps, valuable insights, and expert tips on how to sell food on Amazon and drive a tantalizing profit. Let’s dive in!
Is Food Sales Still Booming Post-Pandemic?
Even though the Covid-19 pandemic is no longer raging and social distancing protocols are lifted, food sales on Amazon are still going strong. That’s because Amazon has become an essential part of many households, particularly for purchasing groceries and other food items. Amazon offers a vast array of food products from both large-scale and small CPG companies, providing convenience for customers who want to save time and effort by avoiding a trip to the grocery store. Moreover, Amazon Prime members enjoy the added perk of free two-day shipping on most food items, making it even more attractive. So, even though the pandemic is over, Amazon’s food sales show no signs of slowing down.
Shelf-Stable vs. Refrigerated: What to Sell?
Amazon is a vast and ever-expanding marketplace, making it the perfect platform to sell everything, including food. However, before venturing into selling food, you need to decide whether you want to sell shelf-stable or refrigerated products. Shelf-stable items like dry pasta and canned goods have a longer shelf life, don’t require special handling during fulfillment, and can help you save on storage and shipping fees. On the other hand, selling perishable goods like refrigerated foods can yield a higher profit margin. Fresh food always has a demand, regardless of the time of year. So, whether you choose to sell shelf-stable or refrigerated food, Amazon provides the ideal platform for both.
The Advantages and Disadvantages of Selling Food on Amazon
Amazon: A Trusted Platform
When it comes to selling food online, safety is a major concern. Customers trust Amazon due to its long-standing reputation for customer satisfaction. Selling on Amazon ensures that you’re in good hands.
Selling food on Amazon allows you to tap into a much wider audience compared to selling on your own website or a physical store. With Amazon being the world’s most popular online shop, you have the opportunity to sell to people from all over the globe.
Quick and Easy Setup
One of the best aspects of selling food on Amazon is the speed and simplicity of getting started. Unlike launching your own website or physical store, which can take months or even years, you can be up and running on Amazon within a matter of days.
Competition with Major Brands
Selling food on Amazon means competing with some of the biggest brands. Without careful attention, it’s easy to get lost in the crowd. However, by offering unique products or outstanding customer service, you can stand out from the competition and carve your own niche.
Amazon imposes certain restrictions on the types of food you can sell. For instance, alcohol and tobacco products are not permitted, and there are guidelines for selling perishable items. However, there are still plenty of opportunities for sellers who abide by these guidelines.
Getting Amazon Approval to Sell Food: A Step-by-Step Guide
If you’re a new seller, the answer is most likely no. Food is a restricted category on Amazon, which means you must obtain approval before selling, also known as ungating. This is done to ensure trustworthiness and the safety of the products. The ungating process is relatively simple and low-cost. Follow the steps below to find yourself selling in the grocery category in no time:
Step 1: Purchase from an Online Wholesaler
The first requirement for Amazon to approve a food listing is an invoice from a distributor. Choose from the various distributors available. Be sure to order at least 100 items, meeting Amazon’s minimum order quantity for category or brand approval.
Step 2: Capture High-Quality Product Photos
When your products arrive, take clear and appealing photos. Imagine you’re photographing a potential customer, using a white background to showcase the product. Capture multiple angles, ensuring legible branding, and highlight important details like ingredients and expiration dates.
Step 3: Upload Documents and Apply
Visit the “Add a Product” page on Amazon Seller Central and search for the product in the appropriate category or brand you want to become ungated in. Select the closest matching listing, even if the size or flavor is slightly different. Click on the permission button and submit your invoice and product photos.
And there you have it! Amazon claims that getting approval in restricted categories can take up to a week, but the process typically takes only a few hours to a few days based on experiences.
Finding Reliable Sources for Selling Food on Amazon
Selling private label food on Amazon requires finding a reliable source. This can be challenging due to numerous options available. To select the perfect private label source, consider the following tips:
Read Online Reviews
Invest time in reading reviews to identify reputable companies and avoid the ones with negative feedback.
Seek Recommendations from Other Amazon Sellers
Ask other Amazon sellers for their recommendations. They can provide insights into sources they’ve had good experiences with.
Find an affordable source without compromising on quality. By comparing prices, you can strike the right balance for your food business on Amazon.
Looking for wholesale sources for food items to resell on Amazon? Here are a few tips for finding a good wholesale source:
Research the wholesaler’s reputation by checking online reviews and feedback from other resellers. Steer clear of sketchy businesses and opt for reputable options.
Compare prices among different wholesalers to ensure you’re getting the best deal. Avoid working with wholesalers with exorbitant prices that eat into your profit margin.
Represent the wholesaler well by ensuring the products you sell on Amazon are of top-notch quality. This helps avoid negative feedback from buyers and builds a positive reputation.
To kickstart your journey with online arbitrage on Amazon, you need to find affordably priced products to sell. One simple way is to search for clearance items on online retailers. Once you’ve identified potential products, research their selling prices on Amazon. If the prices on Amazon are significantly higher, it’s a promising opportunity for online arbitrage. Purchase the products, list them on Amazon with clear and enticing photos and descriptions, and wait for the sales to roll in!
How Can Eva Benefit Your Amazon Food Brand?
If you want to streamline your operations on Amazon and maximize your sales and profit margins without ever facing stockouts or overstocking, Eva is your answer. Eva combines cutting-edge AI technology with expert eCommerce knowledge to provide a comprehensive software solution for food brands. From competitive pricing and advertising to 3PL logistics and returns management, Eva covers all your needs. Give Eva a try with a 15-day Free Trial and witness the results for yourself!
Even after the pandemic, Amazon remains a top destination for food shopping. With a wide selection of food items and the added convenience of free two-day shipping for Prime members, leveraging these advantages can boost your sales on Amazon. Offer sought-after products that people want to buy and make the most of this thriving e-commerce platform.