Skip McGrath Discusses Winning Tips for Selling on Amazon

Skip McGrath is an author and newsletter publisher who has been selling online since 1999, and he joined Ecommerce Industry SoundBytes to talk about his experience using Amazon's FBA fulfillment service.

eBay is a high-touch marketplace where the buyer requires a lot of service from the seller, which is not a factor when using Amazon FBA. While Amazon fees are much higher, McGrath said, he makes more money than on eBay because of the high rate of sales.

"Winning the Buy Box" is a challenge for all sellers on Amazon, and he explains how selling through FBA can help merchants get exposure through the Buy Box - FBA listings get more exposure than merchant-fulfilled items.

There are pitfalls that merchants must watch for when using Fulfillment by Amazon, McGrath warned. Sellers should not think of the Amazon warehouses as cheap storage space. "One of the secrets to making money in any retail business is inventory turn," he said in the podcast interview.

Skip also recommends using a technique called bundling - by creating unique product bundles and purchasing UPC codes, online merchants can win the Buy Box. Listen to his explanation of bundling in the full podcast interview available on the Ecommerce Industry SoundBytes website.