Selling toys on Amazon: the complete guide! [2024]

Amazon is the most significant marketplace in the world for online toy sales. Therefore, if you too are a seller looking to enhance your profit opportunities in this sector, you should consider selling toys on Amazon.

We’ve drafted a handy user guide that will take you through the steps to make your first sales in your country or worldwide.

Selling toys on Amazon: the requirements to get started

To sell toys on Amazon, you need a seller account.

We won’t go into detail here on how to do this, as we’ve discussed it many times before on this site. So, if you like, you can read one of the many guides we’ve already published on the topic, such as this article on how to start selling on Amazon.

However, we would like to answer some questions that are often asked about the topic. Namely, can individuals sell toys on Amazon? And is a tax identification number (VAT number) always necessary?

Subscribe to Newsletter

Articles, mini-guides and updates on Amazon world from leading insiders.

I accept the privacy policy

Let’s immediately clarify that, to sell toys on Amazon, you need to have a tax identification number: your storefront on the marketplace is set up as a real store open continuously. Therefore, you will need to obtain a tax identification and use an ATECO code consistent with your business, which in most cases will be the code 47.91.10, related to the retail trade of any product via the Internet.

In summary, little does it matters whether you sell your products through your own e-commerce or through Amazon. In the eyes of the tax authorities, you are still conducting e-commerce…

Setting up the seller account

Once you’ve registered as a seller on Amazon choosing between the individual or the professional plan, you’ll need to add your products from the SellerCentral account. The procedure to follow depends on whether the toy you want to sell is already present on Amazon or not. In the first case, you can add a new offer by associating the product with the existing one or scanning the product’s barcode with the seller app. In the second case, if you have a new toy brand that is currently not listed on Amazon, you’ll need to create a new listing and complete the required details.

When your products are listed on Amazon, you’ll need to wait for the first order and deliver it to the customer. You can do this in various ways. You can either choose Amazon to handle storing, packaging, and shipping your products through their warehouses (FBA) or you can personally take care of all activities (FBM).

Once the sale is complete, you’ll receive periodic earnings, minus Amazon’s fees. Easy, isn’t it?

Selling toys on Amazon during holiday seasons: what changes and how to qualify

Even before starting to sell toys on Amazon, you’ll easily notice that a significant portion of sales in this product category is concentrated during the Christmas holiday season.

Because sales soar at the end of the year, Amazon imposes stricter requirements that sellers must meet if they wish to sell toys on the platform.

The reason for this is simple. Christmas is a particularly crucial peak sales period, and Amazon wants to ensure you can deliver the products requested by their consumers in the expected times and manners. But what are these requirements?

Although the toy category isn’t subject to restrictions, new sellers must meet certain criteria to process orders via FBM (Fulfilled by Merchant) during the fourth quarter. In 2023, this requirement applied only to sellers who preferred to handle logistic activities by themselves, from November 2, 2023 to January 3, 2024, while it didn’t apply to FBA. Therefore, sellers who exclusively used Fulfillment by Amazon didn’t have to worry about meeting the criteria summarized here below.

To sell toys during the holiday season, FBM sellers needed to:

• Have made the first sale on Amazon before September 1, 2023. However, since Amazon didn’t necessarily require the sale to specifically be toys, any sale on the marketplace was sufficient.
• Have processed and shipped at least 25 orders fulfilled by the seller between August 15, 2023, and October 14, 2023.

The other qualitative requirements

The initial two criteria are quite straightforward to meet. If you’re a new seller and are interested in selling toys on Amazon during the festive season, you must:

• Use FBA, or
• Use FBM but demonstrate to have made a sale before September 1, regardless of the category. Additionally, you must fulfill at least 25 orders between August 15 and October 14.

Amazon has added three other criteria that might be qualitatively more challenging but understandable and justifiable. These are:

• The pre-shipment cancellation rate must not exceed 1.75% between September 15, 2023, and October 14, 2023.
• The shipment delay rate must not exceed 4% between September 15, 2023, and October 14, 2023.
• Lastly, the order defect rate must not exceed 1% on October 14, 2023.

Remember, these criteria are not exceptional, as these parameters are always valid when processing orders via FBM, except for the pre-shipment cancellation percentage, which is stricter than usual.

How to sell toys on Amazon quickly from home

Now, let’s imagine you’re a new seller and you’re increasingly concerned about the approaching holiday season. Let’s also imagine you want to reach the mentioned requirements as soon as possible. You wouldn’t want to be caught unprepared during the busiest sales season, would you?

Well, selling toys on Amazon from home and quickly isn’t very difficult, but you may have to make some compromises.

If you want to meet the requirement of 25 FBM orders, but haven’t processed that many yet, try:

• Selling products below cost. Selling below cost isn’t a practice we recommend for sustainable and profitable online toy sales on Amazon. However, sometimes it may be worth sacrificing profitability in order to quickly accumulate sales volumes.
• Suspending FBA offers and selling only FBM. If you’re selling products through FBA, suspend this type of offer and stick exclusively to FBM. These are the only orders that count towards meeting the minimum requirements. However, remember that this tactic is also temporary. The conversion rate could decrease if the listing no longer offers Prime shipping!

Tips for selling toys on Amazon

Now that we have a bit more information on how to sell toys on Amazon, we can certainly take a step forward and understand the best tips to follow.

Firstly, consider that we’re dealing with a constantly evolving segment, with products catering to different interests, age groups, and price ranges.

Among the characteristics of the category, heterogeneity is one of the most interesting. In this class of products, we find a wide variety of offerings targeting different demographic customer groups. Toys range from puzzles to dolls to the most innovative robotics products, and so forth. Each of these products includes different offerings that can further enrich the product catalog and require a different strategy.

Follow Amazon’s guidelines for selling toys

Secondly, as we said earlier, it’s crucial to scrupulously adhere to Amazon’s guidelines to ensure product safety and compliance. To avoid account suspension, pay special attention to the following factors:

• Safety standards. Toys on Amazon must comply with relevant safety standards, such as the EU’s EN71. Depending on the target market, for example, if you wish to sell toys on Amazon in the US, it’s crucial to know and adhere to these requirements.
• Product compliance. Each toy must comply with Amazon’s guidelines on product compliance. For example, you’ll need to indicate the recommended age range for toys, especially when they include small parts that may pose a choking hazard to younger children.
• Product authenticity. Amazon has strict policies against counterfeit products. Violating these policies can lead to account suspension.

Creating product listings

For the creation of product listings, there are some general guidelines to follow:

• Title. The product title should be concise but descriptive and include.
  • the brand name.
  • the type of product.
  • any important element of differentiation.
• Product Descriptions: Detailed product descriptions help potential buyers understand what they are purchasing. Highlight the key features and benefits of the item and provide detailed information about dimensions, materials, age suitability, and safety features.
• Images: High-quality images are essential for showcasing the product. Provide images from various angles and include close-ups to highlight details. The images should accurately represent the product, including colors and dimensions.
• Keywords: In addition to the title, include relevant keywords throughout the listing.
• Bullet Point Lists: Use bullet point lists to highlight the key features and benefits of the product. The format is highly appreciated by Amazon and makes it easier for customers to evaluate your listing.

Choosing the selling price of toys on Amazon

A fundamental aspect of selling toys on Amazon is to correctly establish your pricing strategy.

To determine the price of your toys on the marketplace, you can consider elements such as:

1. Competition: Regularly monitor the prices of similar products to stay competitive.
2. Price Range: Identify the price range of similar toys to ensure your product falls within an acceptable range.
3. Flexibility: Be prepared to adjust prices according to demand, availability of similar products, or seasonal trends, as only a flexible pricing strategy will help maximize profits.
4. Profit Margin: Ensure your price covers the cost of the product, Amazon’s fees, and any additional expenses (such as advertising), while still yielding a profit.
5. Promotions: Occasionally, you may want to offer promotions or discounts to increase sales and improve the positioning of your products. Be sure these promotions are sustainable and do not significantly impact your profits.

6 tips for managing toy inventory on Amazon

Furthermore, among other strategic elements to consider when selling toys on Amazon, inventory management is key. Balancing the supply and demand of toys can be complex, but by considering these elements, you’ll have the necessary information to make more informed decisions.

1. Demand forecasting

Use sales data and market trends to forecast future demand for products. Consider factors such as seasonality, market trends, and planned or ongoing marketing campaigns.

2. Procurement strategy

Establish the frequency and quantity of toy procurement. Calculate supplier lead times, storage duration, storage costs, and sales velocity.

3. Safety stock inventory

Maintain an adequate level of safety stock inventory to protect against unexpected increases in demand or supplier delivery delays.

4. Inventory turnover

Calculate and monitor inventory turnover, which indicates how often your inventory is sold and replenished each year.

5. Returns management

Ensure efficient management of returns so that returned stock is processed quickly and put back on sale.

6. Multichannel selling

Ensure your inventory management system can handle different sales channels, synchronising inventory levels across all channels to avoid overselling.

In ZonWizard, you’ll find the Inventory tab designed for all Amazon sellers who want to streamline inventory management and optimize replenishments and orders. With the help of this tool, you’ll receive intelligent estimates on when to restock as well as low stock notifications so you never run out of inventory and miss out on sales on Amazon. You can see it in action here.

What toys to sell on Amazon

Now that we have a fairly comprehensive knowledge on how to go about selling toys on Amazon, it’s just a matter of choosing what to sell!

Choosing the right toys to sell is a complex process. There are many factors that influence the popularity and sales performance of a product.

Let’s look at some of these factors:

• Brand popularity: Well-known toy brands often have a significant consumer base and an established market presence. However, it’s always important to be aware of the licensing terms of these brands and any surrounding developments.
• Sales ranking: Products with high sales rankings in their category tend to sell more frequently. Examining the sales rankings of various toys can help you understand which items are currently in high demand.
• Competition: While the most popular toys may generate higher sales, they also come with increased competition. Therefore, it’s essential to assess the competition of a toy before deciding to sell it on your account.
• Profit margins: Profitability should be a key factor in your decision-making process. Use ZonWizard “Profit” tool to assist you and also consider Amazon’s FBA fees.
• Current trends: Keep an eye on current trends in the toy industry as they always offer profitable opportunities. To quickly identify trending products, use market research tools and keep an eye on consumer preferences and emerging toy categories.
  • • Trend Analysis
    • Industry News
    • Social Media.

Where to Find Toys to Sell on Amazon

Once you’ve understood what toys to sell on Amazon, you need to begin the sourcing process. That is, where to find toys to sell on Amazon.

There are several ways to ensure a steady supply of products:

Manufacturers

You can buy toys directly from manufacturers, potentially securing a lower cost. However, this method often requires a significant investment and the ability to purchase in bulk, something not all sellers may have.

Wholesale Distributors

These purchase products in large quantities directly from manufacturers and sell them to retailers at discounted prices. Not all distributors offer the same convenience and expected qualities, so this should be carefully analysed.

Retail Arbitrage

Retail arbitrage involves buying toys from retailers and reselling them at more advantageous prices on Amazon. This approach can be particularly profitable during clearance events. However, it’s not always easy to find high-quality toys at significantly reduced prices that guarantee a profit margin.

Other Online Marketplaces

Other online marketplaces such as eBay or Alibaba can be excellent places to buy toys. However, you should be cautious about the authenticity and quality of the products when sourcing from these channels.

Toy Fairs and Exhibitions

Toy fairs and exhibitions provide excellent opportunities to discover new products, meet manufacturers and distributors, and negotiate deals. These events also offer a wealth of information about current and future trends in the toy industry. Therefore, it’s always worth attending them periodically.

Liquidation Sales

Companies that are closing often sell their inventory at considerably reduced prices. These sales can be an excellent opportunity to obtain toys at a fraction of their retail cost.

We hope these tips have been helpful. You can check out our guides on how to sell household products on Amazon and how to sell beauty products on Amazon.

If you want to streamline your Amazon sales and profit management through advanced tools, you can try ZonWizard for free for 14 days by clicking the button below.