How To Sell Ghee Online On Amazon In 2024 (Step By Step Method)
India is a land of varied cuisine and food habit. But perhaps, nothing is more universal than ghee which is a staple in almost every household. Vegetarian or non-vegetarian- ghee is used in every type of recipe that originates in India.
So much so, ghee manufacturers and brands have taken to the internet to expand their sales. As a result, major e-commerce platforms like Amazon have an enviable stock of ghee.
For ghee manufacturers of every stature, this is a great opportunity to scale their productions. You can easily list your products and expand your sales with the help of platforms like Amazon. You can even start independent websites with the Fynd platform.
The Indian ghee market had a value of INR 2624 billion in 2021 and is expected to reach upto 4787 billion in 2027. The CAGR is expected to be 10.5% between 2024-2027. So, you can fathom the expanse of the market and how much profitable it can be if you start growing the business now.
Read on to find out all about scaling the ghee business with the help of Amazon.
Advantages Of Selling Food And Gourmet On Amazon
Amazon is now being used as a synonym for online shopping due to its popularity among its users. It is tagged as one of the top online marketplaces in India and globally. If one wants to sell food and Gourmet products through Amazon, it can be an enormous advantage to the seller.
Offers multiple distribution Channels
Multiple distribution models running under amazon ensure the product reaches the right customer at the right time. Amazon Fulfilled Network, abbreviated as AFN, is a mechanism by which the seller has to focus only on the manufacturing part, and Amazon will undertake the remaining activities. This allows the seller to focus exclusively on the product.
The Fulfilled by merchant model is a concept under which the sellers are expected to take care of all the logistics and after-care activities, and Amazon takes care of the transaction. Amazon has a Vendor Program where Amazon itself acts as a customer and purchases stock at wholesales. This way, the seller can decide which model to be adopted based on the product and the budget.
Least Investment
Setting up a physical store and selling the products through a shop or a store requires a lot of investments in terms of space, human resources and money. Amazon is a platform where the product can be launched with minimum investment.
A small investment can allow the seller to present the product to a larger audience. The sellers can decide on the action points based on their businesses' inventory levels and speed. A professional seller account may allow one to sell products under the label of "Grocery and Gourmet Food" with additional benefits of gaining access to reports and product placement details.
The items can also be sold under the individual account and are suited for those planning to sell a few products weekly. In both these scenarios, the investment is not huge, and this option can be a feasible choice for any seller. An additional investment might be required for product packaging in the case of the Food category to cater better.
High Buyer Conversion Ratio
People come to Amazon to buy, and the buyer's intent can be observed from the beginning. The site also offers the buyer a detailed description and reviews of the product. Testing a product on the Amazon platform is a wise decision if one plans to launch a separate website for the product at a later stage. It is the right window to collect feedback from customers about the product.
Through a platform like Amazon, where customers have tremendous trust, the purchasing intent also goes high. Instead of a traditional brick-and-mortar store, people nowadays prefer online shopping to avail of the desired product in the comfort of the home.
Amazon can provide the data and analysis report of the customer base and their spending behaviour for a product. The data report can help the seller make an evidence-based decision regarding launching a particular product to the market. The feedback mechanism attained through reviews can help the seller modify the product as per the target audience.
Low Marketing Cost
A product hosted on a website or a stand-alone e-commerce platform requires an investment to advertise the product, but Amazon has an in-built-in customer base that no other site can offer. The chances of getting repeated customers through Amazon are very high. In addition, Amazon has a provision for paid advertising to attract customers. It provides multiple ways to get the product listings seen.
Wide Customer Base
Amazon has a solid customer base of a strong hundred million loyal Prime members, and projecting a food product on this platform will expose it to a larger audience. The seller can put up a discount and offers that can be used as a medium to attract customers. The site is visited by over 300 million visitors every month. Amazon is not only famous in India but also visited by a global audience giving international exposure to the product.
Reputed Brand
Amazon is a reputed and most trustworthy brand in the international market. It hosts a lot of sellers and is visited by thousands of customers every day, establishing it as one of the most well-known sites for shopping. Amazon wins the ride when it comes to online traffic in the retail sector.
Strong Back-end Support
Amazon has a robust back end that supports the seller in other activities like inventory tracking, credit card processing and sales tax collection, making the process hassle-free for the seller.
Referrals
Offering referrals is one of the exclusive features of e-commerce sites like Amazon that displays "similar products" when one searches for any product. The customers can access a list of recommended products and lets the product catch their eye of the customer.
Different Types Of Ghee To Buy In India
Ghee has been an essential ingredient in Indian cuisine for ages. Everybody prefers a preservative-free, chemical-free, traditionally prepared nutritious ghee in their kitchen. However, the least known part is that multiple types of ghee are manufactured with different ingredients and different methods, offering various benefits.
Major Classification Of Ghee:
Ghee is classified into two categories:
1. Grass-fed Ghee
It is made from cow’s milk fed with grass and is found to be more nutritious. Grass-fed ghee is generated from organic dairy farms under strict conditions. In this type, the cows are allowed to freely roam on green fields and feed themselves with green grass and grass-based food.
Hormonal or antibiotic supplements are not offered as fodders to the animals. It is also ensured that the grass or grass-based fodder purchased from outside is not cultivated with the help of pesticides or fertilizers. This way, the ghee generated will be devoid of poison and other harmful residues. Pure grass-fed ghee looks yellow, which is also an indicator of checking its purity.
2. Grain-fed Ghee
It is made from cow's milk that has been fed grains and other non–grass food. The animals are fed on grains such as corn, cottonseed etc. The grain-fed ghee may contain steroids and antibiotics as a residue due to different drugs offered to the cow as food.
Usually, the quality of Grain-fed ghee is found to be poor. Few studies have shown that feeding the cattle with grains may affect their digestive system, and they fall prey to bacterial contamination.
The Grass-fed Ghee is further subdivided into different types:
1. Grass-Fed Cultured Ghee
This is one of the premium products and the most preferred type of ghee in the market. It is prepared from grass-fed cream, and the ghee consists of lactic acid that is risk-free for lactose intolerant people. It is a highly stable ghee that can be stored and is suitable for high-temperature cooking. The product can even be stored for 12-18 months without refrigerating.
2. Grass-fed organic ghee
This is a unique type of ghee made from organic grass-fed butter and is well known for its purity and excellence. This ghee is made at farms where cows are treated with utmost care under strict conditions to maintain authenticity. The cows can roam free and are fed with green grass or grass-based fodders. It is identified as one of the superior types of ghee.
3. Grass-fed Sheep Ghee:
This ghee is manufactured from sheep’s milk cream fed on grass. It is a highly aromatic product used to cook at high temperatures. It is a highly nutritious product with vitamins like Vitamin A, D, E and K. It contains omega fatty acids.
It is well known for the signature ingredient called choline which is famous for improving memory, mood regulation and enhancing the strength of muscle strength. It also consists of essential minerals that add to the nutritional value.
4. Garlic grass-fed ghee
This ghee is famous for its unique taste, and the best part is that it also offers the therapeutic benefits of garlic. It is a lactose-free substitute for regular butter and cooking oils.
Garlic is famous for its antibacterial and anti-inflammatory properties, and ghee infused with garlic will prove as a dual benefit to the user. It is Keto and Paleo-friendly supplement and enhances the body’s immunity.
5. Lime grass-fed ghee
A unique product where lime is proportionately fussed with grass-fed ghee. This ghee gives the feel of lime and the creamy texture of ghee. The lime grass-fed ghee is preferred for cooking sandwiches and snacks as they provide a palatable flavour to the food.
The lemon extract is mixed with the ghee in this type of ghee. This is a deadly combination as one can get the benefits of the grass-fed ghee and, at the same time, enjoy the flavour of lime.
It can be stored easily and acts as a perfect substitute for cheese or butter. Alongside cooking, this ghee is preferred for seasoning purposes in salads. The ghee is devoid of gluten, preservatives and colour.
6. Himalayan Salt Infused Ghee
Any ghee is usually prepared with the help of unsalted butter and cannot replace salted butter due to its dull taste. However, Himalayan salt infused is a type of preparation that can be an innovation in this area.
This product has the potency to replace salted butter in cooking or garnishing. The Himalayan pink salt is used in this preparation, infused with ghee. The benefits of the ghee remain intact, and the salty taste of Himalayan pink salt makes it one of the products worth trying.
It is a highly stable and safe product used for cooking at high temperatures. Apart from cooking purposes, it is also used as a spread. It carries a lot of health benefits, provides dietary support for digestion, and blood sugar level regulation and encloses a large number of minerals than regular salt. It is a fusion tablet to simultaneously imbibe good taste, good health and satisfaction.
7. A2 Organic Ghee
The protein found in the dairy milk of healthy cows is A2. The quantity of this protein varies among breeds, but it is observed that the best grass-fed cows from New Zealand have the highest amount of A2 protein.
This ghee is generated from grass-fed cows’ milk that consists of A2 protein and is highly nutritious. A2 Organic ghee is one of the top-quality products with the highest demand in the market. It is storage-friendly and consists of high smoking points.
What Are The Markers Of Good Ghee?
India is a nation that has a vast consumer base for ghee and ghee products. Due to such high demand, many suppliers are available in the market. The biggest challenge is identifying the right unadulterated product among the thousands of suppliers available in the open market.
Why Is It Tough To Find Out The Good Ghee?
Desi Ghee, commonly called good ghee, is made of desi cow’s milk. It is also known as pure or shuddha ghee. The ghee manufactured from the milk of buffalo or goat is considered second grade and is less favoured by most people.
Unfortunately, in the market, it is difficult to identify good ghee due to the following issues:
1. Every type of clarified butter is tagged as ghee; actual pure ghee is different from clarified butter.
2. The butter used to make ghee by various companies is derived from animals like buffalo, camel, goats and cows and mixed. This indicates that if the packet or bottle mentions “desi ghee”, it could be made from the milk of any of these animals.
3. If any brand claims to use cow’s milk only to manufacture the ghee, still there is a hanging question of the breed of the cow. If the breed of the cow is a hybrid instead of a desi cow, then the quality of the ghee will also fall.
4. The traditional process of making desi ghee is very different from how various companies make ghee at their factories. The modern method adopted is heating the butter to a certain temperature until milk solids separate.
5. This method is not how Indian traditional ghee is manufactured. According to the conventional way, it is recommended that the cows should be left to graze freely during the daytime, and their diet should also include hay.
6. The food given to the cow must be prepared traditionally, i.e. the cow's fodder should not be affected by fertilizer or pesticides.
7. The milk is first converted to curd and then churned to butter manually. After this, the buttermilk is extracted, and the butter is cooked at low heat to get the pure ghee.
8. Ghees are adulterated with tallow, where the ghee is added to hydrogenated fat derived from plants. Ghee is also added with refined oil to enhance the quantity. Certain brands also add essence to dupe the customers.
9. At times ghee is adulterated with animal fat, and all such adulterations threaten consumption. They hurt the human body and may lead to several health issues.
What Is The Difference Between Desi Cow Ghee And Hybrid Cow Ghee?
Hybrid cows like Brown Swiss and Red Dane produce more milk than desi cows. Unfortunately, the milk from desi cows is scientifically proven to be more nutritious and healthy than a hybrid cow’s milk. In terms of quality and taste, desi cow’s milk has the upper hand over hybrid cow’s milk.
A pure desi ghee might make your pocket a little emptier, but it will save a lot of money by keeping you healthy. And as demand increases, supply must go high, as it will encourage the dairy farms to manufacture pure products.
Identification of pure ghee in the market
- Check for the A2 mark: If the bottle or the ghee packet has an A2 label mark on it, it means the ghee is made up of pure desi cow milk. A2 signifies the fact that the Indian indigenous cow milk is being used.
- Check for the A1 mark: The ghee with an A1 mark indicates that the milk is used by a cow that belongs to a hybrid or exotic breed.
- Buffalo Ghee: The buffalo ghee is comparatively less nutritious than cow ghee and looks whiter than the cow’s ghee. It is also recommended that pure buffalo ghee is better than the A1 ghee.
- Check for the colour, Consistency and packaging of the ghee: Cow’s ghee is slightly yellow or golden due to the presence of carotene. There is a granular layer that settles down at the bottom and is white, and the liquid yellow colour ghee floats over the top. In the case of packaging, the best option to look for is ghee packed in a glass or metal container.
- Look for ingredients mentioned on the label: Spiced ghee is trending these days, and to give a yellowish tinge, turmeric is usually added to the ghee. Hence it is recommended to cross-check the ingredient list before buying the product.
- Methods to check purity: The best way to check for adulterations is by melting the ghee in a pan; if it melts immediately and becomes dark brown, then it is pure. If a spoon of ghee is kept on the palm and melts quickly, it is a pure product.
Health Benefits Of Pure Ghee
Pure Ghee possesses a massive demand in the market due to its potential health benefits quoted by various studies and research. It is prepared from indigenous cow’s milk through a traditional method.
Ghee is a famous medication used in the field of Ayurveda; in fact, the science has quoted snehana, i.e. process of instilling Ghee into the body, as one of its Panchakarmas which forms the base of the whole science. Due to its medicinal and spiritual benefits, it has replaced the standard butter.
Constituents Of Pure Ghee
Pure Ghee is highly nutritious and is a reservoir for many minerals and nutrients. A teaspoon of Ghee offers 130 grams of calories and 15 grams of fat, primarily saturated as per USDA.
Studies quote that Ghee may contain a traceable amount of leftover protein if the milk solids are not obliterated. Ghee is usually a pure fat product and hence doesn’t contain carbohydrates. Ghee is a rich source of Vitamins K, C, D, A and E. Ghee also contains butyric acid.
Potential Health Benefits
1. Improves heart health
Ghee consists of Vitamin E which possesses antioxidant properties. It can reduce the risk of heart disease. Vitamin E has also been linked with reducing the risk of cancer, arthritis and cataracts. Ghee is rich in fat, but it has a high concentration of monosaturated Omega-3s, a healthy fatty acid that supports a healthy cardiovascular system.
Including Ghee as part of a balanced diet can reduce unhealthy cholesterol. Ghee is a potential source to increase good cholesterol in the body. It also helps to reduce the glycemic index if applied to rotis and chapatis.
2. Soothes and Heals skin
The topical application of Ghee over burns, wounds, or rashes has a soothing effect. Studies prove that Ghee has antimicrobial and antioxidant properties that help in the healing process. Healing.
System of medicine like Ayurveda claims pure Ghee as the most recommended (sreshta) product to be applied in case of burns. It consists of a substance called butyrate that soothes inflammation in the body.
Ghee contains a natural emollient that helps in maintaining healthy skin. It locks the moisture and improves skin repair by reducing and repairing the cracks. Ghee is also tagged as a product to increase hair thickness due to vitamin E. It is applied to the itchy and dry scalp due to its moisturizing effect.
3. Absorption of more minerals and vitamins
Ghees can enable the body to absorb essential minerals and vitamins. Hence cooking healthy food and vegetables with Ghee may allow the absorption of more minerals and vitamins.
4. Reduces Obesity
Ghee is a rich source of conjugated linoleic acid, known as CLA. Research shows that CLA has the potential capacity to fight against obesity. Hence Ghee may help in decreasing excessive weight gain and help in the reduction of body fat in a few people.
5. A Healthy substitute for Lactose Products
Lactose intolerance or allergy to dairy products is a commonly observed allergic reaction among people where an immune response is observed in the form of a rash, hive, vomiting etc. Ghee is prepared by removing milk solids and carries only a traceable or minimum amount of lactose and casein. Hence it becomes an ideal choice for people who are lactose intolerant.
6. Limits the exposure to Acrylamide
When fats are cooked at a high temperature, it gives rise to a harmful and toxic product called Acrylamide. Vegetable oils produce a large number of Acrylamide compared to Ghee which generates a limited amount of this product.
Ghee doesn’t break into free radicals if exposed to a high temperature while cooking. Free radicals cause cancer in the body, which are present in other substances like vegetable oils.
7. Protects Digestive System
Ghee consumption is linked to a healthy gut. Ghee protects the alimentary tract from ulcers and cancers. Ancient people used to consume a teaspoon of Ghee before the start of every meal so that the digestive tract is lined by the Ghee and is not affected by any harmful product from the meal.
Ghee consumption also enhances appetite in individuals and also elevates the taste of the food. Ghee also keeps the food warm from within, making it one of the reasons to be poured in preparations like carrot halwa, moong dal halwa etc.
8. Fights Diseases
Ghee contains butyric acid, which stimulates the production of T cells. T cells have a significant role in fighting against infections, thus boosting immunity.
9. Makes the bones Strong
The abundance of Vitamin K in Ghee promotes calcium absorption, which strengthens the bones. It also prevents tooth decay and prevents atherosclerosis.
10. Balances Hormones
Ghee has the property to balance hormones in the body if used systematically and plays a detrimental role in thyroid dysfunction. Since it has a role in hormonal regulation, it relieves females from menstrual issues like premenstrual syndrome and irregular menstruation.
11. Satvik Bhojana
Ghee has the potential power to attract toxic elements into the body, thus cleaning the body. It is treated as a sativik bhajan by many sciences. Regular consumption can reduce stress and anxiety.
12. Aids in Vision
Pure Ghee is consumed with black pepper daily to improve poor vision.
Tips To Sell Ghee On Amazon
Ghee is such a staple in India that every household needs it. Hence, the demand is everywhere- online or offline. Especially with the help of Amazon, selling ghee gets much easier.
But to qualify as a seller, there are a few essential things you must note. Here we have provided some tips and vital information that will help you register as a seller on amazon and scale your ghee business to new heights.
Important procedures to sell ghee or any food item online:
First and foremost, you must be ready with the following documents and reports to get a clean cheat to register as a seller on Amazon on your first attempt.
Licenses and approvals
- You must have GST registration to sell any type of food or gourmet on Amazon.
- FSSAI registration is mandatory for any food item which you are selling offline or online. There are three types of FSSAI licenses- basic, state and central. To sell online, the basic FSSAI license is enough.
- Your product must qualify for all relevant lab tests to get listed on Amazon.
- For products like ghee, you must get category approval in the gourmet food category of Amazon. To get this, you will need a food declaration letter, FSSAI certificate, invoice in case of re-sellers, and clear product images.
- If your product is organic, you will need an additional organic food product certificate. This will also help to enlist under the organic food category.
- The label of the product must be clear and have all elemental information like the name of the brand, product name, vegetarian or non-vegetarian logo, manufacturer details, FSSAI license number and shelf life of the product.
Factors affecting listing on Amazon for your Ghee
Once you have all the above-mentioned data in place, it's time to register on Amazon and start selling the products. Here are some tips to do so:
Get approval to sell on Amazon
To get approval to start selling ghee on amazon, you must qualify several steps. But first and foremost, you must register as a seller. For this, you need a valid email ID, phone number, PAN card details and active bank account.
Once all your credentials are verified, you can proceed to seek approval in the food and gourmet category as a seller or re-seller. You must have a professional selling plan set up in sync with your account. You must also produce documents like product invoices, various lab tests and certificates and any relevant information requested by the brand regarding the product.
Seller performance target
Once you have registered as a seller, you must have consistency in several criteria to become an “ungated” seller in the Amazon food and gourmet category. For this, you must meet the following criteria:
- The order defect rate must be less than <1%.
- The pre-fulfilment cancel rate must be <2.5%.
- The late shipment rate must be <4%.
If you fail to meet any of these criteria, your seller status can get revoked by the brand.
Packaging and special considerations
Amazon is very specific about the packaging requirement for different types of a food products. Especially for ghee, the seller must have quality packaging that is spill-proof and sealed well. There should not be leaking or melting or any such issues.
The product packaging must be food-grade in quality and should add to the protection of the food item. Furthermore, the packaging should have all information about expiry, weight, dietary claims and so on.
Expiry and shelf life
Items with an expirable shelf life can be sold through Amazon. However, when it arrives at the amazon warehouses, it must have a shelf life of more than 105 days from the time of arrival. Amazon will be removing items which are within 50 days from the expiration date.
Moreover, temperature-sensitive items like ghee should be able to withstand a minimum of 50 degrees Celcius and a maximum of 100 degrees Celsius without any adverse effect on the quality. To add your product to amazon’s list, it must be between October 1 to April 30 of a calendar year.
Listing and product page requirements
For food and gourmet items like ghee, amazon has specific listing and product page requirements which are slightly different from the regular segments. The format of the listing is very specific and must be followed for all such items.
All food and gourmet items must have one image or page where the nutritional details and ingredient list are mentioned. Furthermore, images must be at least 300 dpi. Ideally, 1000dpi images are preferred for better zoom-in functionality. The images must also include only the product for sale through the listing. There should not be additional accessory products.
Tips To Get Better Sales For Ghee Through Amazon
Once you have met all the criteria specifications for the ghee, there are additional promotions and steps to consider. Here are a few tips which will help you sell ghee easily on amazon amidst the competition:
Branding
India has many brands of ghee available and the competition is tough. Hence, it is essential to establish a brand for your product. In amazon specifically, include the name of the brand right at the beginning of the title.
This is because leading brands' names which are searched more can bury the lesser-known brand when potential clients search for them. But by listing every product with titles that begin with your brand name, you can improve the chances of organically appearing in search results.
Unique, catchy yet simple names are the best. These are easy to remember and hence potential buyers will be able to search you up easily. Chances of spelling mistakes are lesser too when the brand name is simple enough. It is important to have a trademark brand. This help to gain the trust of potential buyers.
Quality maintenance
It is very important to pay special attention to storage, packaging and overall quality maintenance for perishable products like ghee. Any kind of damage, leak, spill or melting of a food package can affect the quality and performance of the seller on amazon.
Another important part is maintaining temperature while shipping so that the product does not get damaged on the way. The figures for “sell by”, “use by”, “best by” or “best if used by” dates are all considered as the end date for the product by amazon.
Take variations into consideration
If your product come in varied flavours or types, it is best to consolidate the listing on one product page. This way, your customers can easily browse through other products in your catalogue. It will encourage the purchase of several products too.
Moreover, the product reviews get centralized this way for several products on one page. As a result, the e-commerce SEO of your product gets improved manifolds and it is easily discoverable for buyers.
Sponsored posts and promotions
To scale the business through amazon listing, you must make the most of sponsored posts and ads within the platform. This way you can quickly gain more customers in less time.
You can also promote your amazon listing through independent websites and social media pages. With the help of the Fynd platform, you can build a website for your business. It takes merely a few minutes to create the website. Simply select your business goals and choose the plan to implement.
Even beginners can easily design their website with the help of the Fynd platform. You can cross-promote your listing on amazon the website to scale the sales. Moreover, you can make the most of social media platforms as well by sharing links to your product with potential clients among your followers.
Be consistent with delivery
Your clients are likely to come back and even refer to your brand only when their initial experience of purchase is smooth. Hence, pay attention to the shipping and packaging of the products. Also, ensure your customers get the product intact and on time.
When you are consistent about sending out shipments without any problems, the customers are likely to trust your brand and come back for more. Of course, the quality of the product must be at par with the price and their expectations too.
Conclusion
Selling ghee on amazon is tricky initially because you have to go through several stages of verification and quality tests to get listed. But once you do so, it is easy and can help your business scale and grow to new heights.
Moreover, you can easily start an independent website for your product with the help of Fynd Platform to scale the sales there through your branding on Amazon. Moreover, Fynd has a clientele which is expansive and hence getting enough sales for your brand of ghee would be much easier.
Now that you know about the many ways to make your ghee business grow through amazon, you can easily register as a seller. The key to making your venture a success is maintaining high quality and meeting all the set standards of Amazon.
