Article

 How to Sell on Amazon: Complete Guide 

Key Takeaways

How Do You Start Selling On Amazon?

You start by creating an Amazon seller account, choosing a selling plan, selecting a product and sourcing method, choosing FBA or FBM, and building a complete product listing. Then you price the product around your full costs and use Amazon advertising to attract early shoppers.

This blog walks through each stage in order. You will see the current selling plan costs, sourcing options, fulfillment choices, listing requirements, Brand Registry, advertising, account health, and category expansion. The goal is simple: know the economics and requirements before you put money into inventory.

Step 1: How Do You Create Your Amazon Seller Account?

Creating an Amazon seller account starts with registration and identity verification. In many cases, you can complete registration within a few hours, while identity verification usually takes three business days or less. 

Amazon’s current registration requirements include:

You also provide your store name, product information, product codes, certifications, and manufacturer or brand details during registration. Amazon then asks you to verify your identity by uploading documents and either taking a photo of your face and ID or completing a video call with an Amazon associate.  

The timeline varies when Amazon needs additional information. Missing documents, mismatched business details, or unclear document scans often lead to further review. Use the exact legal information shown on your documents and submit clear, complete documents to reduce avoidable delays. 

Step 2: Which Amazon Selling Plan Should You Choose?

Amazon offers two main selling plans. Your expected monthly sales volume provides the simplest way to choose between them.

Selling Plan CostBest For 
Individual $0.99 per item sold Low-volume sellers and testing 
Professional$39.99 per month Sellers expecting higher volume 

The Individual plan charges $0.99 for every item sold. The Professional plan charges $39.99 per month instead. At roughly 40 items per month, the Individual plan charges reach the Professional plan’s monthly fee. Referral fees and other costs apply separately. 

If you expect fewer than 40 sales per month, the Individual plan often makes sense for testing. If you expect more volume or need Professional selling tools, start with the Professional plan.

Step 3: What Should You Sell and How Should You Source It?

Product selection determines much of your Amazon business economics. High demand does not automatically mean a profitable product. You need enough demand, manageable competition, and a margin that survives Amazon’s fees.

Four common sourcing models include:

Sourcing Model How It Works Main Consideration 
Private Label You sell products under your own brand Inventory, differentiation, and branding
Wholesale You buy established branded products in bulk Supplier authorization and margins 
Retail Arbitrage You buy discounted retail products for resale Product availability and resale restrictions 
Dropshipping A supplier ships orders directly to customers Strict seller of record requirements 

Private label sellers often work with overseas manufacturers or domestic suppliers. Wholesale sellers typically work with authorized distributors or manufacturers.

Before placing a large order, request samples, verify product quality, check supplier documentation, and calculate your expected margin after Amazon fees. Minimum order quantities also matter because a low unit cost means little if you have to buy more inventory than you can sell.

Dropshipping needs extra attention. Amazon requires you to remain the seller of record. Your supplier must not appear as the seller on packing slips, invoices, external packaging, or other customer-facing information. You also remain responsible for customer returns. 

Step 4: Should You Use FBA or FBM?

FBA and FBM give you two different ways to fulfill Amazon orders. Your product size, sales volume, margins, and operational capacity should guide the decision.

Factor FBAFBM
Storage Amazon handles storage You handle storage 
Packing Amazon handles packing You handle packing 
Shipping Amazon ships orders You arrange shipping 
Returns Amazon handles eligible returns You manage returns 
Customer Service Amazon handles FBA customer serviceYou handle customer service 
PrimeEligible products receive Prime fulfillment benefits No automatic Prime benefit 

With Fulfillment by Amazon, you send inventory to Amazon fulfillment centers. Amazon stores, picks, packs, ships, and handles customer service and returns. FBA also supports Prime fulfillment. 

With FBM, you keep control of fulfillment. This approach gives you more operational responsibility but works well for products where your own fulfillment setup makes economic sense.

You do not need to treat FBA or FBM as a permanent decision. Sellers often adjust fulfillment as product volume, margins, and inventory needs change.

Step 5: What Fees Does Amazon Charge Sellers?

Amazon’s selling costs extend beyond your selling plan. Your actual product margin depends on the complete fee structure.

The main costs include:

For example, Amazon’s current standard referral fee is 15% for many common categories, but rates differ across categories and price ranges. Amazon’s official fee table lists category-specific rates, so never use one percentage for every product. 

FBA also adds fulfillment and storage costs. Amazon’s Revenue Calculator lets you compare estimated FBA costs with your own fulfillment method. 

Your selling price is not your profit. Calculate product cost, inbound shipping, Amazon fees, fulfillment, storage, advertising, returns, and other operating expenses before committing to inventory.

Step 6: How Do You Build an Amazon Product Listing?

A strong listing gives shoppers the information they need to make a buying decision. It also gives Amazon relevant information about your product.

Your core listing elements include:

Most new products need a product ID such as a UPC, EAN, or ISBN. Amazon also offers a GTIN exemption process for eligible products without a product ID. 

Keyword research should guide your listing language. Use relevant search terms naturally in your title, bullets, description, and backend fields. Avoid stuffing unrelated keywords into the listing.

Images also matter. Show the product clearly, explain important features, and use supporting images where they answer common buyer questions.

For sellers who need help with Amazon listing optimization and SEO, Amzolute’s service covers keyword research, SEO titles and bullets, backend search terms, image strategy, and conversion-focused copywriting. 

A+ Content adds another layer for eligible sellers. Amazon describes A+ Content as enhanced product-page content using images, videos, comparison charts, and other modules. Basic A+ Content is available to eligible sellers through Brand Registry or other qualifying programs. 

Step 7: How Do You Get Brand Registry and Build a Brand Store?

Amazon Brand Registry helps brand owners protect their intellectual property and access additional brand-building tools.

To enroll, Amazon requires a brand name and logo on the product or packaging, plus a pending or registered trademark issued by an eligible government trademark office. You must also own the trademark. 

Brand Registry provides access to tools such as:

A Brand Store gives shoppers another place to browse your products and learn about your brand. Amazon describes Stores as a free branded shopping destination for eligible brands. 

If you are planning a long-term brand, consider trademark work early. The USPTO explains the trademark registration process, ownership rights, and federal trademark protection. 

For brands that need help with storefronts, A+ content, listings, and Amazon marketing,Amazon marketing services provide support across these areas. 

Step 8: How Do You Launch and Grow With Amazon Advertising?

A new listing needs shoppers before sales data starts building. Amazon advertising gives sellers a direct way to put products in front of relevant shoppers.

Amazon’s main advertising options include:

Sponsored Products use a pay-per-click model. You choose products, targeting, bids, and budgets, then pay when shoppers click your ads.

Sponsored Brands help enrolled brands promote products, brand messaging, and Brand Stores. Display advertising reaches audiences across Amazon properties and third-party destinations, while Amazon DSP supports programmatic display advertising. 

The practical approach is to start with products that have competitive pricing, healthy inventory, solid listings, and enough margin to support advertising.

For sellers looking at Amazon PPC and advertising management, Amzolute provides campaign creation, management, keyword research, targeting, and bid optimization. 

Step 9: How Do You Protect Your Amazon Account Health?

Account health reflects how well your business follows Amazon’s policies and meets customer and fulfillment expectations.

Important areas include:

Amazon states that sellers should generally keep Order Defect Rate below 1% and Late Shipment Rate below 4%. 

Policy violations also matter. Listing claims, intellectual property problems, authenticity complaints, documentation gaps, and fulfillment policy violations often create avoidable account problems.

Dropshipping deserves special attention because shipping another seller’s products directly to customers without meeting Amazon’s seller of record requirements violates policy. 

Check Account Health regularly. If Amazon raises a policy issue, address the root cause and provide the documentation Amazon requests.

Step 10: How Do You Expand Into Gated Categories and New Markets?

Amazon restricts some products and categories. You might need approval before listing products in areas such as grocery, beauty, health, or certain electronics.

The approval process depends on the product and category. Amazon might request:

For example, Amazon states that some grocery products require approval and supporting documentation before sellers list them.

Some beauty products also require additional documentation or compliance steps.

Check eligibility before buying inventory. Do not purchase restricted inventory first and investigate approval afterward.

International marketplaces offer another expansion route once your domestic operation works. Amazon’s global selling and FBA programs support expansion into other marketplaces, but each market brings its own taxes, regulations, listings, and fulfillment considerations. 

What Are the Most Common Beginner Mistakes?

New sellers often focus on getting a product live and overlook the economics and compliance work behind the listing.

Avoid these mistakes:

Frequently Asked Questions

  1. Is it free to sell on Amazon?

Selling on Amazon is not free. The Individual plan costs $0.99 per item sold, while the Professional plan costs $39.99 per month. Sellers also pay applicable referral fees, plus optional costs such as FBA fulfillment, storage, and advertising. Your total cost depends on the product and fulfillment model. 

  1. How much does Amazon take from a sale?

Amazon’s referral fee depends on the product category and other pricing factors. Many common categories use a percentage of the sale, while some categories have different rates or price-based structures. FBA, storage, advertising, and other costs sit outside the referral fee, so calculate your complete product margin. 

  1. What’s the difference between FBA and FBM?

FBA means Amazon stores, packs, ships, and provides customer service for eligible orders. FBM means you manage fulfillment yourself. FBA adds fulfillment and storage costs but reduces daily logistics work. FBM gives you more operational control and works well when your own fulfillment setup fits the product and margin. 

  1. Is dropshipping on Amazon allowed?

Dropshipping is allowed when you follow Amazon’s policy. You must remain the seller of record, and any information identifying another seller or supplier must be removed from packing slips, invoices, and external packaging. You also remain responsible for returns. Shipping products directly from another retailer while presenting the retailer as the seller violates Amazon’s policy. 

  1. Do you need a trademark to sell on Amazon?

You do not need a trademark to open a basic Amazon seller account. A trademark becomes important if you want to enroll your brand in Amazon Brand Registry. Brand Registry requires a pending or registered trademark for the brand name or logo, along with other enrollment requirements. 

  1. How long does it take to get approved as an Amazon seller?

Amazon seller registration often takes a few hours to complete, while identity verification usually takes three business days or less when your documents meet the requirements. Additional review might take longer if Amazon needs clarification or finds issues with your business information or submitted documents. 

Final Thoughts

Selling on Amazon works best when you treat each decision as part of the same financial and operational model. Choose a product based on demand and margin, understand your fees, select the right fulfillment method, build a useful listing, and plan advertising before launch.

Then protect the account as you grow. Check compliance, maintain inventory, monitor performance, and research approval requirements before entering restricted categories.

For brands managing multiple listings, advertising campaigns, storefront content, and account performance, specialized Amazon support often becomes useful as operations grow. The right time to get help depends on your product complexity, sales volume, margins, and internal resources.