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Why You Need to Start Running Multiple Amazon Seller Accounts

If you are able to get permission from Amazon, being able to operate more than one Amazon store can be great for business. In this post I'll give you a motivation why you need to open multiple Amazon Seller Central accounts. But keep in mind, Amazon is strict in letting a business open a second seller accounts so let’s first look at how to get approval for it.

Open your 2nd Amazon shop

In order for your application for a second store to approved by Amazon you must adhere to the following rules (and these are taken directly from Amazon’s own wording):

  1. You must provide an explanation of the legitimate business need for a second account.
  2. You must have an account in good standing with excellent Customer Metrics.
  3. You must have a separate email address, credit card and bank account for the new Amazon store.
  4. You must not intend to sell the same products in both accounts.

Amazon will respond to your request within 2-3 business days.

These steps are must do. The risk of opening multiple Amazon seller accounts without approval is obvious—you’ll get one or all of your accounts shut down by Amazon if you’re caught.

Once you have received your approval, you will be formally allowed to set your second Amazon store.

Now you have 2 stores, what are the benefits?

So now you have gone through all the administration of gaining the approval from Amazon, you need to be able to experience the rewards of getting your second store on the marketplace.

Let’s now take a look at the benefits for running multiple stores on Amazon.

Starting a new sector of business

By having a successful first store up and running, you will have gained not only good profits but also will have got a good reputation. Customers wouldn’t have been buying from you otherwise.

This presents a great opportunity for your business to explore a whole new area of business that maybe didn’t quite fit in with your current store’s plans or model.

Perhaps there is a new market that you would like to tackle that your original store isn’t able to cater for without potentially sacrificing budgets or quality in your current market. You wouldn’t want to let any standards slip in your successful business so by setting up a new store altogether can enable you to overcome this challenge.

Another reason you may want to target a new sector of business is by selling products that do not have a direct correlation with your current store.

This will open a whole new avenue as a business to go and succeed in.

An example of this would be with the UK retailer Next. They started out as a fashion retailer, selling women’s, men’s and children clothes, shoes and accessories. However, they decided to open a new line dedicated to providing home furnishings, which has no correlation to their clothing market. They branded as Next: Home.

Although Next aren’t an online Amazon store, the principal is the same; they wanted to sell new products that wasn’t in the clothing industry and so set up a new sector of business to accommodate it.

It reduces risks

If your sole account gets suspended — or worse, banned—it could destroy your online business.

This is another big reason why setting up multiple Amazon stores is a good idea. Having a business separate to your original means that if something goes wrong with either of them, then the damage it does to cashflow or branding is limited.

Since the rules that Amazon set for setting up multiple businesses prohibit you from selling the same products, you must be offering either a different product or a different service.

If you were going to start selling that product or service in your original store, you are going to either need to hire more staff or decrease the amount of time on your first business.

However, by setting up another on Amazon, you can decrease the risk associated with not spending enough time focussing on one store or the other.

One way you can do this is by hiring a team that can concentrate solely on the new business. You could even look for people that have experience in how that market works, the best way to get that product to market and the how to minimise costs as they could potentially have relationships with manufacturers.

You can dominate other niches

As an entrepreneur, you are full of great ideas that can make money. However, you also want that idea to be a dominant force in that specific niche.

An example that shows this off is by having one business selling physical goods with having the new second store selling digital goods.

The first business may not be able to accomodate the selling of online products or services as you would prefer it to be fully dedicated towards physical sales.

However, you may want to open a store that can offer subscriptions or licences to a software package. You can spend a lot of time researching how to do this and dedicate you whole other business to it.

From a product ranking point of view, being able to have a second store selling a product is a lot easier to generate traffic for on search engines or on Amazon themselves.

You can have different keywords that will be used to search for that product and the better this ranks, the more likely that your product, and therefore your store will be higher in the listings.

There will be less confusion in their internal systems as they won’t be wondering why on Earth your business is now selling something completely different to your original market.

This can help dominate that niche because your business will also become associated with that keyword, meaning a greater chance of attracting more customers.

Sell as a new business model

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Another benefit of opening multiple Amazon stores is that you could start to target selling as a whole new business model.

Your original store may only be catered to selling as a business to consumer model but there could be potential for you also to start selling to businesses.

This comes with a whole set of different challenges, such as how you acquire what you sell to a business as opposed to a consumer.

Selling to businesses usually means that you will be required to ship a product in a much higher quantity. If you are not buying your inventory in wholesale then you may have to start looking at different logistics to solve the problem.

However, with all these challenges, selling to another consumer can be very beneficial. You may be to seller a much higher volume of product which leads to greater revenue. Another advantage includes establishing new relationships and access to a whole new network of people that can help your business or even those that can aid your original store.

By dedicating a brand new business to selling to a completely different business model, you can keep your core products and customers on your original store while getting your brand out there.

If you will be shipping to another business or retailer, they will be selling your product to another consumer. This in turn can then build reputation for your brand, leading to higher searches for your store on search engines, leading to more conversions and ultimately more sales.

Another bonus to selling to another business is that they will tend to buy your inventory on a much more frequent basis. You will need a lot less fewer clients to be profitable as you can generate a lot of money by regular and recurring sales.

In conclusion

Setting up a completely new store on Amazon is hugely beneficial to you as brand. It opens up a lot more doors as you will be able to sell a variety of different products to a much wider audience, you don’t have to waste valuable time and financial resources on your new product while your original product takes a backseat and suffers.

If you want to diversify and protect yourself against erratic suspensions, you have to be careful to maintain those multiple accounts. Monitoring seller metrics and listings are must do activities, which could be easily automated.

Running your second business through Amazon is a hugely beneficial way to start boosting sales, increasing traffic and overall just getting your brand noticed.

Why You Need to Start Running Multiple Amazon Seller Accounts
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