{"id":6702,"date":"2021-07-16T18:47:19","date_gmt":"2021-07-16T18:47:19","guid":{"rendered":"https:\/\/tacticalarbitrage.spacecolts.com\/selling-groceries-on-amazon\/"},"modified":"2024-03-26T19:59:40","modified_gmt":"2024-03-26T19:59:40","slug":"selling-groceries-on-amazon","status":"publish","type":"post","link":"https:\/\/tacticalarbitrage.com\/blog\/selling-groceries-on-amazon\/","title":{"rendered":"Selling Groceries On Amazon [Beginner’s Guide]"},"content":{"rendered":"

Selling groceries on Amazon is one of the hottest growth sectors for e-commerce businesses. The online grocery market will reach over $100 billion in annual sales by 2025, with Amazon leading the market.\u00a0<\/span><\/p>\n

Getting in on the online grocery game can be a fantastic way to grow your online business, increase profitability, and boost your Amazon sales in the process.<\/span><\/p>\n

However, there are some specific requirements you have to meet before you can sell in this category and some best practices to be aware of.<\/span><\/p>\n

Follow our beginner\u2019s guide to selling groceries on Amazon to make the most of this opportunity.\u00a0\u00a0<\/span><\/p>\n

How Profitable Is Selling Groceries On Amazon?<\/span><\/h2>\n

Realistically, groceries tend to be one of the<\/span> lower ROI categories<\/span><\/a> for online sellers because the profit margins on food on Amazon for each individual item are slim.\u00a0<\/span><\/p>\n

For example, while a thrift store book I buy for a dollar could sell for a hundred dollars or more, or a toy I buy on clearance could sell for double, a good profit margin in grocery is around $4 per item.\u00a0\u00a0<\/span><\/p>\n

Despite the low profit margins, selling groceries on Amazon can be very profitable and well worth your time for one main reason: People consume groceries and will need to buy them again next week.\u00a0<\/span><\/p>\n

Online Groceries Are A Fast-Moving Product Category<\/span><\/h3>\n

What groceries lack in profit margin they more than make up for in sales velocity. For every book or toy that I sell, I can expect to sell four or five grocery items. Why?<\/span><\/p>\n

Because groceries and gourmet food products are consumables\u2014products that customers have to buy over and over again\u2014while most books, toys, clothing, or electronics are a one-time purchase.<\/span><\/p>\n

As a bonus, the high turnover rate for grocery products can boost your sales, protecting you from the potentially account-damaging effects of selling slower-moving, higher-profit products.\u00a0<\/span><\/p>\n

Groceries are ranked near the bottom of Amazon\u2019s product categories in terms of popularity, but they are also <\/span>\u00a0<\/span>Amazon\u2019s fastest growing category<\/span><\/a>, increasing sales by 78.4% from 2020 to 2021.\u00a0<\/span><\/p>\n

The low market penetration and exponential growth potential combine to make now a great time to get in on this under-saturated market.\u00a0<\/span><\/p>\n

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Online Groceries Are Often Replenishable\u00a0<\/span><\/h3>\n

Groceries are also an ideal item for a beginner to sell because of the low cost of entry and the high sustainability of sales for months to come.<\/span><\/p>\n

Unlike books, toys, or electronics that tend to have a limited stock of the profitable items you source, once you find a profitable grocery item, you can often replenish that item from the same store as needed.\u00a0<\/span><\/p>\n

Sourcing replenishable items further automates your online business, cuts down on your sourcing time, and creates more time for you to grow your sales in other ecommerce categories.\u00a0<\/span><\/p>\n

Are You Approved To Sell Groceries On Amazon?<\/span><\/h2>\n

If you\u2019re a new seller, the answer to this question is probably <\/span>no<\/span><\/i>. Groceries are one of<\/span> Amazon\u2019s restricted product categories<\/span><\/a>, which means you will have to get account approval to sell, also known as ungating.\u00a0<\/span><\/p>\n

If you think about it, the restrictions on selling groceries makes a lot of sense. Amazon has to be sure that its sellers are reliable and trustworthy, and that products sold on its platform are safe and high-quality, especially when it comes to consumables like food and beverage.<\/span><\/p>\n

But don\u2019t worry.<\/span><\/p>\n

Ungating is a fairly simple and inexpensive process. If you follow the steps below, you\u2019ll be on your way to selling in the grocery category in no time.\u00a0\u00a0<\/span><\/p>\n

How To Get Approval To Sell in Groceries On Amazon<\/span><\/h3>\n

Getting approval is the first step to sell in the grocery & gourmet food category. To get approval, you\u2019ll first need to sign up for a professional seller account if you haven\u2019t already.<\/span><\/p>\n

Next, you\u2019ll need an invoice for a restricted grocery item from a wholesale distributor and clear, high-quality photos of your product:\u00a0<\/span><\/p>\n

Step 1 Order At Least 10 Items from An Online Wholesale Company<\/span><\/h4>\n

The first thing Amazon requires in order to grant approval in a product category is an invoice from a distributor. There are many different distributors you can choose to go with.\u00a0<\/span><\/p>\n

A good option is<\/span> Weiner\u2019s Wholesale<\/span><\/a> because of its variety of products and low minimum order requirement.\u00a0<\/span><\/p>\n

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Side note here<\/b>: Most wholesale companies have minimum order requirements. While you\u2019re getting ungated in groceries, you may want to order products that will get you approved in other categories and brands, such as topicals, household and safety, and OTC medication to get the most for your money.<\/span><\/p>\n

Whichever products you choose, be sure to order 10 of each item. This is the minimum order quantity Amazon requires to grant approval for a category or brand.\u00a0<\/span><\/p>\n

Step 2: Take Photos Of The Products Once They Arrive<\/span><\/h4>\n

When your products arrive, take good, clear photos of your items. I like to treat this as though I\u2019m taking photos for a potential customer using a white background and getting the best photos possible.\u00a0<\/span><\/p>\n

First, take a photo of one item from every side, making sure that the brand is easily readable. For grocery items in particular, be sure that the ingredients list and expiration date (if there is one) are visible.\u00a0<\/span><\/p>\n

Next, take a photo of all 10 products together. Now you\u2019re ready to submit to Amazon.\u00a0<\/span><\/p>\n

Step 3: Upload Documents To Amazon Seller Central<\/span><\/h4>\n

For each category or brand that you are getting ungated in, go to the Add a Product page and search for the product. Choose the listing that most closely matches your product. It\u2019s OK if Amazon doesn\u2019t have your exact size, flavor, or version listed.\u00a0<\/span><\/p>\n

As long as the brand matches, you should be fine.\u00a0<\/span><\/p>\n

You should see a button saying that you need approval to sell the product. Click on the button, upload your invoice and your photos, and then click submit.\u00a0<\/span><\/p>\n

And that\u2019s it! Amazon says that getting approval in restricted categories can take up to a week, but in my experience the process is much faster than that, taking anywhere from a couple hours to a few days.\u00a0<\/span><\/p>\n

Requirements To Sell Grocery & Gourmet Foods<\/span><\/h2>\n

After getting category approval, there are additional account and product requirements that online sellers have to meet in order to maintain their approval.\u00a0<\/span><\/p>\n

These requirements are meant to ensure the safety and health of Amazon customers, and they\u2019re more important than ever now that Amazon can be<\/span> held liable for third-party sellers<\/span><\/a>. Violating one of these requirements can jeopardize your seller account, so when in doubt, don\u2019t send the product in!\u00a0<\/span><\/p>\n

Seller Requirements<\/span><\/h3>\n

To maintain eligibility to sell groceries on Amazon, your account will have to hit certain performance targets, These include:\u00a0<\/span><\/p>\n