Amazon Grocery Selling Guide

One of the fastest growing e-commerce categories right now is groceries. Several major platforms are competing for market share. Amazon, Walmart, and Target are expected to grow over the next five years, when annual spending in the market is expected to exceed $100 billion.

Grocery is different from other categories. To sell groceries on Amazon, you must overcome major problems such as logistics and consumer confidence (or consumer sentiment). Amazon has a guidebook to solve these difficulties, which means that sellers only need to strictly follow Amazon's sales guidelines.

Today’s article is to help sellers learn how to sell grocery products on Amazon.

Main content:

• Obtaining Amazon Selling Permission

• Requirements for selling groceries on Amazon

• Grocery Category Commission

• Tips for Selling Grocery Products

At a minimum, you must have a professional seller account to sell groceries. Amazon will require you to submit product invoices or a quality management system (QMS) to ensure that your products are safe to sell to consumers. In addition, Amazon account health is also an important factor, and you need to at least meet Amazon's standards. For example:

• Order Defect Rate (ODR): <1%

• Pre-delivery cancellation rate or Cancellation Rate (CR): <2.5%

• Late Shipment Rate (LSR): <4%

Food packaging should be able to prevent food from spoiling or being damaged, ensuring the quality and safety of the food. All products must be packaged intact during transportation. Product packaging must also indicate the net weight, expiration date and any dietary requirements, such as potential food allergens. Finally, product packaging must include the name and address of the packaging company.

• The shelf life of perishable food shipped through FBA is greater than 90 days;

• Perishable foods that have expired should be removed within 50 days, and products that are less than 50 days old will be automatically removed and disposed of.

• Each product must display product information in the product image;
• The minimum size of product images should be 300dpi (output resolution);
• Images may only show the product being sold and not any other products used in conjunction with the product.

• Name and address of shipper or owner

• Recipient Name

• Name of country, state or region

• Declaration of cargo contents

The above are Amazon’s most basic requirements. Sellers should also note that local governments may have additional policies.

For grocery products below $15, Amazon only charges 8% commission per item. However, the fee for products above $15 is still 15%. Amazon adopts this charging method to encourage sellers to stay on their platform. Other platforms (such as Walmart) charge a fixed 15% commission in the grocery category.

• Adding some tips to your product listings can help you sell grocery products better on Amazon. First, use variations of products in the same product line. Setting up variations allows customers to know that your product comes in different sizes and flavors.

• In addition, consider adopting a tiered pricing strategy to encourage more customers to buy. Groceries are consumables. Instead of hoping for repeat customers, it is better to find ways to get customers to buy multiple items at a time. It is recommended to provide discounts to customers who place more orders. Increasing the average shopping cart value is an important way to increase sales in the grocery category.

• Using appropriate product images in your product listings can help convert more consumers into customers. It is recommended to use high-quality pictures or graphics to show the features and benefits of your product. Clearly stating the nutritional content or special ingredients in the product image can help consumers better understand your product, which saves them time than reading the description.

• Finally, use Amazon Advertising to drive more traffic to your product listings. Compared to other categories on Amazon, advertising costs for the grocery category are still relatively low. Using advertising effectively can help increase product sales and search result rankings.

Amazon's requirements for selling grocery products may seem too rigid and strict, discouraging many sellers who want to start. However, judging by Amazon's reduction of commissions for grocery products, Amazon is increasingly focusing on grocery brands on the platform, and this category is expected to dominate the platform in a few years. Are you ready to start selling groceries? Refer to this guide to help you sell groceries.