An emerging opportunity in eCommerce you can't ignore revolves around selling food products on Amazon. Recent statistics show that Amazon's online grocery could rise from $35.46 billion in 2023 to $41.17 billion in 2024. Amazon's Fresh storefront is constantly growing with new products, which is indicative of how eCommerce as a whole continues to change.
You may have been curious about pouncing on the opportunity to enter the food and beverage (F&B) market but are still unsure how to do so. Entering the market requires a thorough understanding of Amazon's guidelines, the approval process, and strategies that lead to successful sales.
This article serves as a guide on how to sell food on Amazon to help you get started as soon as possible.
6 Steps to Get Approved to Sell Food on Amazon
Amazon is among the top brands in the world for a reason. Their strict adherence to quality on their platform means that learning how to get approved to sell food on Amazon is an integral first step for any aspiring food entrepreneur.
1. Research Amazon's requirements
Amazon's basic requirements will depend on the type of food you're selling. For instance, learning how to sell frozen food on Amazon is entirely different from learning how to sell packed groceries on the platform.
However, there are a few criteria you must meet to qualify for the Grocery & Gourmet Food Category:
- An order defect rate of less than 1%
- A pre-fulfillment cancel rate of less than 2.5%
- A late shipment rate of less than 4%
Their official Amazon Grocery & Gourmet Food page outlines several other requirements you must meet, including the following:
- You must have a license and approval from the government agency relevant to the product you're selling.
- You must have an expiration date marked on every unit.
- Your packaging must protect the food from contamination, spoiling, and melting.
Source: Amazon
It will also help to study the following government guidelines to ensure the food you plan to sell is safe and meets Amazon's standards:
- Amazon Item Package Quantity guidelines
- Amazon Bulk and Commodity Food Listing Policies
- FDA's Food Labeling Guide
- FDA's Pet Food regulations
- U.S. Department of Agriculture Labeling and Label Approval guidelines
2. Prepare your business information
You can only begin to sell on Amazon using a Seller Central account. According to Amazon, you'll need to provide the following:
- Bank account and routing number
- A credit card you can charge internationally
- A government-issued I.D.
- Your business tax information
- Phone number
The details you provide should be updated and accurate; it helps expedite the approval process and prevents situations where you'll have to resubmit your application, which can add hassle and prolong your timeline unnecessarily. You can also follow Amazon's grocery style guide to help you when you're listing products on the site.
3. Source reliable suppliers
Sourcing turns the idea of what you could sell on Amazon into something closer to reality. The suppliers you find can often determine the quality of the food products you'll sell, whether they arrive prepackaged or as ingredients you receive to prepare the meals yourself.
4. Choose your fulfillment option
Your fulfillment process is integral to your success as an Amazon seller. It's an especially important factor when you consider that food is a perishable commodity; the fulfillment method you decide on should ensure your products remain fresh once they arrive at your customer's doorstep.
You have the choice between two fulfillment options: fulfillment by Amazon (FBA) and fulfillment by Merchant (FBM). There are pros and cons to each, and countless business owners have debated the FBA vs. FBM issue in the past. Ultimately, it depends on your product's characteristics, sales volume, and target audience, to name a few.
An element related to order fulfillment that you can't overlook is storage and inventory. Food products are perishable, meaning you'll need to find a place to store them that maintains their freshness by the time they reach a customer's doorstep.
An excellent way to ensure products don't remain in storage for long is to employ excellent Amazon marketing strategies. For instance, utilizing targeted advertising campaigns to reach potential customers who are actively searching for similar products can significantly boost visibility and sales.
Optimizing product listings with high-quality images, compelling descriptions, and relevant keywords can enhance search rankings and attract more traffic to your listings. Additionally, leveraging features like Amazon Prime and customer reviews can instill trust and confidence in potential buyers, increasing the likelihood of purchases and reducing storage time for products.
These effective marketing tactics can enable your business to move inventory and maximize profitability on the Amazon platform efficiently.
Selling Food on Amazon: 5 FAQs Answered
Because selling on Amazon can become a profitable venture, it's worth understanding as much as you can about how to do it. You can start by knowing the answers to some of the most common questions people have when they're first learning how to sell food on Amazon.
1. How profitable is selling food on Amazon?
It depends on many factors, such as the products you sell, your marketing strategy, and the competitors in your category. Selling food products on Amazon is on the rise, meaning there is great potential for profits and growth with the right mixture of product and planning.
2. Are there specific requirements to sell frozen food on Amazon?
Yes. Amazon requires that you enclose the frozen or refrigerated food product in packaging that can maintain its temperature during shipping. You must show that you're capable of controlling the temperature of food products during shipping to ensure they remain fresh once customers receive them. The same goes for raw agricultural commodities.
3. What is the best food to sell on Amazon?
Generally, products that have high demand, low competition, and allow for wide profit margins are ideal. Knowing which specific product matches these qualities will rely on your ability to keep up with market trends and spot opportunities before your competitors.
4. What are the fees for selling on Amazon?
Amazon has two selling plans. The Individual plan will cost you $0.99 per item sold and is ideal if you plan to sell less than forty units per month. Otherwise, they offer the Professional plan at $39.99 per month if you intend to sell more than 40 units monthly. Professional sellers have access to the Grocery and Gourmet product categories.
5. Does Amazon ship food?
Yes. Prime Members can receive their grocery orders from Amazon Fresh and other specialty stores on the platform in roughly 2-hours. As a business, you must choose your method of fulfillment and ensure food products remain fresh in their packaging during transport, or else you violate Amazon's Gourmet and Grocery product policies.
Start Serving Hungry Customers Online
As a business owner, it's always important to watch out for opportunities to grow and increase your revenue. Amazon's food market continues to rise, making it one to watch out for and consider getting into. It's best to stay informed about industry trends and adapt to their changes to remain competitive.
If you're interested in getting your food business off the ground at Amazon, consider working with a skilled and experienced Amazon SEO consultant such as beBOLD Digital. We provide full-service Amazon account management, from registering your account to brand analysis and reporting.
Contact us to learn how we can help you grow your Amazon food business today!
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