How to Become an Amazon Seller: A Detailed Guide

Starting your journey as an Amazon seller is more accessible than you might think. The key is to make smart decisions upfront about your business model, how you’ll source products, and how you plan to get them to customers. Getting these foundational steps right will prevent major issues later on.

The real work starts before you list your first product. It begins with a clear strategy and understanding Amazon’s requirements. As of 2024, the platform hosts over 9.7 million sellers globally, with thousands more joining daily. The competition is significant, but so is the opportunity.

Your first major decision is choosing a selling plan. Amazon offers two options, and your choice depends on a simple question: How much do you plan to sell?

The Individual plan is a good fit if you’re testing the waters or selling fewer than 40 items per month. For higher volume, the Professional plan is the clear choice.

Your Starting Point for Selling on Amazon

1. The Two Seller Plans

So, what’s the real difference between these two plans? Let’s break it down to help you figure out which one fits your business best.

Choosing the right Amazon selling plan directly impacts your monthly costs and your access to essential selling tools.

Individual vs. Professional Selling Plan Comparison

If you expect to sell more than 40 units a month, the math is simple: the Professional plan saves you money on the per-item fee. Beyond cost, it gives you access to advertising, reporting, and the ability to sell in restricted product categories.

2. Your Documents Checklist

Before you head to the sign-up page, gather your documents. Having everything ready will make the seller account registration much smoother. You don’t want to be searching for paperwork mid-application.

Here’s what you’ll need:

• Business Information: Your legal business name, address, and contact details.
• Government-Issued ID: A valid passport or driver’s license for identity verification.
• Tax Information: Your Social Security Number (for sole proprietors) or your business’s Federal Tax ID Number (EIN).
• Bank Account Details: The account where Amazon will send your payments.
• Valid Credit Card: This is for Amazon’s credit card requirements to charge any selling fees.

Once you have this information, you’re ready for the sign up process. It’s also a good time to think about your fulfillment method. Understanding options like FBA early on is important because it shapes your entire business plan. A great place to start is learning What is FBA and how does it work.

Getting Your Amazon Seller Account Set Up

After picking your selling plan, it’s time to register your seller account. This part is detail-oriented and requires accurate information.

Getting every detail right the first time will save you from frustrating delays with Seller Support. A simple mistake during the seller registration guide can put your launch on hold for weeks.

Think of this as the foundation of your business. Every piece of information, from your business email address to your payment information, must be perfectly accurate and match across all documents. Amazon’s seller verification process is strict for everyone’s protection.

1. Round Up Your Paperwork First

Before clicking “Sign Up,” get your documents organized. Amazon’s verification is largely automated, and any mismatch between your entries and your documents can trigger a rejection.

Here’s what to have ready:

• Government-Issued ID: A clear, color copy of your passport or driver’s license. Check the expiration date. The name and address must exactly match what you enter in your primary contact profile.
• Bank Account Statement: A recent statement (from the last 90 days) that clearly shows your name and address. This verifies your bank account details. A credit card statement often works too.
• A Valid Credit Card: You’ll need a chargeable credit card on file for billing any seller fees.
• Tax Info: Have your Social Security Number (SSN) ready if you’re a sole proprietor. If you have an LLC or another business entity, you’ll need your Employer Identification Number (EIN).
• Phone Number: A working phone number is needed for phone number verification, usually via text or an automated call.

Pro Tip: Scan your documents or take high-quality photos beforehand. Ensure there’s no glare, all four corners are visible, and every word is readable. Blurry or cropped images are a top reason for rejection.

2. The Registration and Verification Process

To create a seller account, you’ll start with an email and password. You can use your existing Amazon customer account, but many sellers prefer a separate business email to keep things organized.

Next, you’ll enter your business information and personal details, uploading the documents you gathered. The name on your ID must be an identical match to the name on your bank statement. No nicknames or initials.

The digital tax interview is a straightforward form where you’ll submit your tax ID. Once submitted, the registration timeline can vary from a few hours to several weeks, depending on document clarity and Amazon’s review queue.

After approval, you’ll gain access to your account credentials and dashboard. This is your command center, also known as Amazon Seller Central. For a full tour of the platform, check out our deep dive on what is Amazon Seller Central.

3. Final Account Configuration

You’re in! But before listing products, check a few final settings.

Review your account configuration. This includes setting up user permissions if you have a partner or virtual assistant. Your public-facing seller profile setup should also look professional.

Most importantly, double-check that your payment information (for fees) and deposit method are linked correctly. A typo here can cause significant payment delays. Spending a few extra minutes on these details will ensure a smoother start for your ecommerce business.

Choosing Your Business Model and Sourcing Products

With your account active, you face the most important decision for your entrepreneur journey: what to sell and how to sell it. This is about choosing a business model that fits your budget, risk tolerance, and long-term goals.

Your choice here dictates your startup costs, daily tasks, and potential profit margins. The right scalable business model can become a valuable asset. The wrong one can lead to cash flow problems and inventory issues.

1. The Most Common Amazon Business Models

Every selling strategy on this online marketplace has its pros and cons. There’s no single “best” path, only what’s best for you as an independent seller or small business owner.

• Private Label Selling: This involves finding a high-demand product, working with a manufacturer to improve and brand it, and selling it under your own brand. You control everything. It requires more upfront capital but offers the highest revenue potential and the opportunity to build a sellable brand. To learn more, digging into how to start a private label business on Amazon FBA is a great next step.
• Wholesale Business Model: Here, you buy products in bulk from established brands and resell them on Amazon as a reseller business. The product demand is already established. The main challenge is securing profitable manufacturer partnerships and supplier relationships.
• Retail and Online Arbitrage: This is the classic “buy low, sell high” method. With retail arbitrage, you find deals in clearance aisles of physical stores. Online arbitrage is the same concept, but you source from other websites. It’s a low-cost way to learn the Amazon ecosystem but is time-consuming and difficult to scale.
• Dropshipping on Amazon: In this model, you list products for sale without holding inventory. When an order is placed, you buy the item from a third-party supplier who ships it directly to the customer. While startup costs are low, profit margins are thin, and you must adhere strictly to Amazon’s dropshipping policies.

2. Finding Profitable Products

Regardless of your chosen business plan, your success depends on product selection. This is where you use data, not guesswork.

Your goal is to find a product with high demand and low-to-medium competition. Doing this manually is nearly impossible. That’s why successful sellers use product research tools like Jungle Scout or Helium 10.

These platforms provide a massive product database you can filter based on specific criteria. For a detailed guide on using these tools for niche selection, this complete product research guide is a must-read.

This screenshot shows how you can filter millions of products to find opportunities that meet your criteria for price, sales volume, and reviews. This type of market analysis helps you avoid saturated markets and find low competition niches.

New sellers often pick a product based on passion. While loving what you sell is a plus, the market doesn’t care about your hobbies. The numbers are all that matter. Always validate your ideas with hard sales estimates and market trends before investing in inventory.

3. Key Criteria for a Winning Product

As you do your niche research, look for these traits in winning products:

• Consistent Demand: Look for products people buy year-round. Avoid highly seasonal demand unless you have a plan to manage cash flow.
• Low Competition: If the first page is full of sellers with 5,000+ reviews, move on. Find niches where a new seller can realistically compete for the bestseller rank.
• Healthy Profit Margins: Use a profit calculator to map out all costs: product, shipping, and Amazon’s fees. If you don’t have a 25-30% net margin, the risk may not be worth it.
• Not Dominated by Big Brands: Don’t compete directly with household names like Nike or KitchenAid. It’s a battle you won’t win.
• Simple and Durable: Avoid easily breakable items, complex electronics, or products requiring extensive customer support. The fewer issues, the fewer returns and negative reviews.

Effective product sourcing combines data analysis with good judgment. Use tools to find opportunities, then use your intuition to confirm it’s a business you want to build.

4. Where to Source Your Products

Once you have identified a profitable niche, you need to find a reliable supplier. Your sourcing strategy depends entirely on the business model you selected earlier. Here is where to look for each method:

• Private Label Sourcing:
  Since you are manufacturing a custom brand, you need to connect directly with factories. The most popular platforms are Alibaba and Made in China, which connect you with manufacturers primarily in China and India. Always order a sample to verify quality before placing a bulk order.
• Wholesale Sourcing:
  For Amazon wholesale, you need authorized distributors or the brand owners themselves. You won’t find these on Alibaba. Instead, attend trade shows (like ASD Market Week), use directories like ThomasNet, or contact the brand’s sales department directly to open a wholesale account.
• Arbitrage Sourcing:
  Your “suppliers” are everyday retail stores. For Retail Arbitrage, you are hunting through clearance aisles at physical stores like Walmart, Target, or Home Depot. For Online Arbitrage, you are sourcing from major retailer websites, looking for price drops or liquidation sales to flip.
• Dropshipping Sourcing:
  You need a supplier willing to ship single units directly to customers. While some sellers use AliExpress, it often leads to long shipping times. It is safer to use US-based dropship suppliers or Print-on-Demand (POD) services to ensure you meet Amazon’s strict delivery requirements.

Creating Product Listings That Actually Convert

A great product with a poor product listing is just expensive inventory. Your product detail page is your digital storefront and your best salesperson. Getting it right drives sales and convinces Amazon’s algorithm you deserve visibility.

It starts with solid keyword research to understand what customers are searching for. These keywords are the foundation of your entire listing, from the product title to the backend search terms.

Before writing, your product needs unique product identifiers. Every item on Amazon needs a GTIN (Global Trade Item Number), typically a UPC code. Don’t buy cheap, recycled codes. Get them from GS1, the official source.

1. Building Your Listing Foundation

With your keywords and UPC, it’s time for product listing creation in Seller Central. This involves strategically placing your research into key components to improve search visibility and sales.

Your product title optimization is the most important part. It’s the first thing shoppers see and carries the most weight with Amazon’s search algorithm.

• Front-Load Your Main Keyword: Place your most important, high-volume keyword phrase within the first 80 characters. Mobile shoppers often don’t see past that.
• Include Key Details: Add other keywords and info like size, color, quantity, or key product features.
• Add Your Brand Name: Always include your brand name, usually at the beginning or end of the title.

Next are your bullet points. This is your chance to sell benefits, not just list product specifications. Each bullet point should address a customer pain point or desire, explaining how your product improves their life.

2. Visuals: Product Images and A+ Content

People buy with their eyes. Your product images must be high-quality. Amazon requires your main image to have a pure white background, but your other images are where you can get creative.

Show your product in use, highlight features with text, and use lifestyle shots to help shoppers visualize it. Poor photography will kill your conversion rate.

For sellers in the Amazon Brand Registry program, A+ Content (formerly Enhanced Brand Content) is a major advantage. It allows you to replace the plain text product description with visually rich modules, using professional images and layouts to tell your brand story.

A+ Content has been shown to boost conversion rates by an average of 5-10%. It’s a great tool for building trust and making your listing look more professional.

3. Catalog Management and SEO

As you create listings, assign a unique SKU (Stock Keeping Unit) to each product variation. This is your internal code for tracking inventory, so create a logical system (e.g., “YOGA-MAT-BLUE-LARGE”). The ASIN is Amazon’s unique identifier, which is generated automatically.

Finally, use the backend search terms. These are hidden keywords that customers don’t see but Amazon’s algorithm does. This is the place for synonyms, long-tail keywords, and common misspellings that didn’t fit in your title or bullet points.

For a deeper dive, our guide to Amazon listing optimization provides actionable steps for every section. A well-optimized listing is your best tool for turning browsers into buyers.

Figuring Out Your Fulfillment, Pricing, and Fees

How you get products to customers is a fundamental decision. It affects your costs, daily tasks, and eligibility for the Amazon Prime badge.

You have two main fulfillment method options: Fulfillment by Amazon (FBA) and Fulfilled by Merchant (FBM).

With FBA, you outsource logistics to Amazon. You ship products to their Amazon fulfillment centers, and they handle inventory storage, picking, packing, shipping options, customer service, and returns processing. This model makes your products Prime-eligible, offering customers perks like two-day delivery.

The other option is FBM, where you manage everything yourself: warehouse storage, packing orders, arranging shipping, and handling customer inquiries. It provides more control but requires more hands-on work.

1. FBA vs. FBM

Choosing between FBA and FBM is a trade-off between convenience and control.

There’s no single “best” answer. Your decision will depend on your products, budget, and time commitment to order processing.

2. Amazon Fee Structure

Whether you choose FBA or FBM, you must understand Amazon’s fee structure. These costs come directly from your revenue.

Every seller pays a referral fee, which is Amazon’s commission. It’s a percentage of the total sale price (usually 8% to 15%) depending on the product category.

Then there are your selling plan costs: either the $0.99 per-item fee for the Individual plan or the $39.99 monthly subscription fee for the Professional plan.

If you choose FBA, you’ll also have FBA fees:

• Fulfillment Costs: A per-unit fee based on your product’s size and weight, covering pick and pack services and product delivery.
• Storage Costs: Amazon charges for the space your inventory takes up in their warehouses, calculated monthly per cubic foot. These inventory fees increase during Q4.
• Long-Term Storage Fees: If an item stays in a warehouse for more than 365 days, you’ll be charged a significant fee. This encourages effective inventory management.

Despite the selling fees, third-party sellers now account for over 60% of all Amazon sales. The average U.S. seller generated $290,000 in annual sales in 2024, with an average profit margin around 21%. You can explore these 2025 Amazon marketplace statistics for more details.

3. Price and Featured Offer

Your pricing strategy on Amazon is a balancing act. You need to be competitive enough to win the Featured Offer (the Buy Box) without destroying your profit margin.

The Featured Offer is the box on a product page where shoppers click “Add to Cart” or “Buy Now.” Over 80% of Amazon sales happen here.

Amazon’s algorithm awards the Featured Offer based on price, fulfillment method (FBA has an advantage), shipping speed, and seller health metrics. The lowest Amazon price doesn’t guarantee the spot.

To stay competitive, use Amazon’s Automate Pricing tool. It lets you set rules to adjust prices automatically.

To ensure profitability, you must account for every fee. For a complete guide, review our breakdown of how much it costs to sell on Amazon. Mastering these numbers is key to protecting your profits.

Amazon Product Launch

Your product is live, listings are optimized, and fulfillment is set. Now it’s time to get your first sales.

The launch phase is about building momentum. On Amazon, this is called sales velocity, which signals to the A9 algorithm that your product is popular. A smart initial marketing push is essential.

The fastest way to get your product in front of shoppers is with Amazon Ads. Think of it as the fuel to start your sales engine.

1. Amazon Advertising Campaigns

Start with Sponsored Products. These are pay-per-click (PPC) ads that appear in search results. The easiest way to begin is with an “Automatic” campaign.

Set a daily advertising budget, and Amazon’s algorithm will show your ad to relevant shoppers based on your listing. This is a great way to gather data on which search terms drive sales.

After a week or two, review the search term report. Identify the best-performing keywords and use them to build a more targeted “Manual” campaign. This two-step approach helps you avoid wasting your marketing budget.

While running sponsored ads, consider creating coupons or promotional deals. A simple 10% off coupon can encourage a hesitant shopper. These promotions add an orange tag to your listing, improving product visibility and click-through rates during deal events like Prime Day.

2. Maintaining Account Health

From your first sale, Amazon monitors your performance. Your Account Health dashboard is your business’s report card.

Pay close attention to these key performance metrics:

• Order Defect Rate (ODR): A combination of negative feedback, A-to-z Guarantee claims, and chargebacks. It must stay below 1%.
• Late Shipment Rate (for FBM sellers): Tracks orders shipped after the promised date. It must remain under 4%.
• Valid Tracking Rate: The percentage of your orders with a valid tracking number. For FBM sellers, this needs to be above 95%.

Your Account Health is your seller rating. A poor rating hurts your chances of winning the Featured Offer and can lead to listing suppression or account suspension. Check this dashboard weekly.

Still Have a Few Questions?

Here are answers to some common questions new sellers ask.

1. How Much Money Do I Need to Start Selling on Amazon?

There’s no single answer, as startup costs depend on your business model.

If you’re starting with retail arbitrage, you can begin with a few hundred dollars for inventory. For a wholesale business, you’ll likely need $2,000 to $5,000 to meet minimum order quantities.

Creating a private label brand is the most capital-intensive. Including sourcing, shipping, photography, and an advertising budget, you should plan for $5,000 to $15,000.

2. Can I Sell on Amazon Without a Registered Business?

Yes. You can start as a sole proprietor, using your personal name and Social Security Number for tax information. You don’t need an LLC or another formal business entity type to open your Seller Central account.

However, many serious sellers form an LLC early on. It creates a legal separation between your personal and business assets, which is a smart move as your business grows.

A Quick Tip: If your goal is to build a scalable business, consulting with a legal or financial professional about forming an entity is a wise early investment.

3. Do I Need to Ship Products Myself?

No, you don’t have to manage your own shipping. Most successful sellers use Fulfillment by Amazon (FBA). You ship your products to Amazon’s fulfillment centers, and they handle the rest. This is the key to getting Prime eligibility and scaling your business without managing logistics yourself.

Alternatively, you can handle everything with Fulfilled by Merchant (FBM). Just be aware that you will be responsible for all aspects of storage, packing, and shipping.