To become a seller on Amazon, choose an individual or professional selling plan, create an Amazon seller account, and list your products. Upload tax information and product identifiers, manage inventory, and set shipping options. Use Amazon ads and tools to attract customers and start selling online.
Introduction
Amazon seller accounts give individuals and small businesses access to millions of customers online. Whether you plan to sell one item or build a full store, Amazon provides tools, services, and a ready sales channel to help you get started. You can choose between two basic options to fit your goals and volume: the individual selling plan and the professional selling plan.
Choosing the Right Selling Plan
Amazon offers two plans:
- Individual Selling Plan – Free monthly fee, $0.99 per item sold
- Professional Selling Plan – $39.99/month with added features
Professional accounts provide access to amazon ads, bulk listing tools, and optional services that help you scale. The individual plan suits hobby sellers or first-time users. Use this plan if you sell fewer than 40 items each month.
Creating Your Amazon Seller Account
To begin, go to the Amazon Seller Central website and click “Start Selling.” You’ll need to enter:
- Your legal name and contact info
- Valid credit card statement
- Bank account details
- Government-issued ID
- Tax information
You can open a professional account or start with the individual version. Both options give you access to the Amazon seller account dashboard, where you’ll manage your store, listings, inventory, and sales.
Setting Up Product Listings
You need a product identifier like a UPC or EAN to list items. Then:
- Write a clear product title with search terms
- Add five bullet points with product features
- Upload images
- Set a competitive pricing level
- Define shipping options
Tools like Product Opportunity Explorer and market research platforms help identify top-performing niches. Use these tools before you begin selling a particular product.
Understanding Inventory and Fulfillment
You can ship products yourself or let Amazon ship them using FBA. With Fulfillment by Amazon:
- Amazon handles delivery, returns, and customers
- Your items show the “Prime” badge
If you fulfill orders yourself, you must manage inventory, handle customer support, and process returns. Choose based on your product volume, location, and expected costs.
Pricing Your Products
Amazon charges a referral fee per sale, usually 8%–15% based on category. Other costs include shipping, storage, and packaging.
Smart pricing includes:
- Reviewing search results for similar listings
- Using Amazon’s automated pricing tools
- Applying coupons to attract customers
- Bundling items with free shipping
Pricing impacts your visibility in search results and click-through rate. Track your margins carefully.
Optimizing Listings for Search Visibility
Use search terms that match what buyers type. Best practices:
- Add keywords to your title and bullet points
- Include brand, material, and product size
- Keep titles under 200 characters
- Use white background for main images
Search ranking depends on performance, pricing, and listing content. Include high-ranking keywords like “sell products,” “best shipping options,” or “Amazon seller account” to boost traffic.
Running Amazon Ads
Amazon ads help new sellers gain visibility in a crowded sales channel. There are three main ad types:
- Sponsored Products (most common)
- Sponsored Brands
- Sponsored Display
Independent sellers with a professional selling plan can promote listings to appear in search results and product pages. Use ads to launch a new product, run promotions, or increase sales in competitive categories.
Managing Inventory and Orders
You must manage inventory using tools in Seller Central. Key tasks include:
- Syncing stock across multiple SKUs
- Avoiding stockouts and late shipments
- Using restock alerts and performance metrics
- Checking fulfillment and return rates
Failure to maintain accurate inventory or meet performance standards can result in penalties. Many sellers use external tools for forecasting and automation.
Understanding Fees and Cost Breakdown
Selling on Amazon includes multiple costs. Here’s a comparison:
Amazon Selling Plan Comparison Table
| Feature | Individual Selling Plan | Professional Selling Plan |
|---|---|---|
| Monthly Fee | $0 | $39.99 |
| Per-Sale Fee | $0.99 | $0 |
| Access to Amazon Ads | ❌ | ✅ |
| Use of Inventory Tools | ❌ | ✅ |
| Promotions & Coupons | ❌ | ✅ |
| Recommended For | < 40 sales/month | > 40 sales/month |
Data from Amazon Seller Central (2024)
You’ll also pay referral fees, FBA storage, and shipping charges. Use Amazon’s Fee Calculator to project monthly sales and profitability.
Legal and Tax Considerations
Before you start selling, make sure your tax information is up to date. Most U.S.-based sellers need to complete a W-9 form.
Other requirements:
- Business license (for some locations)
- Approval for restricted items (like medical devices or controversial materials)
- Brand registry for custom products
Always read the category guidelines and check if your particular product needs pre-approval.
Scaling and Long-Term Growth
Once you learn to sell, focus on growth. Many sellers expand their store by:
- Launching new products
- Creating bundles
- Registering a trademark
- Joining Amazon Brand Registry
- Selling in other countries using Global Selling
Track your performance using Seller Central’s analytics. With consistent performance and good search results, you can grow from one item to a full online business.
Questions We Get Asked the Most
These are the questions we get asked most often about how to become a seller on Amazon:
Do I need a business license to sell on Amazon?
You don’t need a business license to start selling as an individual, but businesses should register. Amazon may require one if you’re listing in gated or regulated categories.
What is the referral fee for selling on Amazon?
The referral fee is usually 8–15% of the product’s price. It varies by category and is deducted automatically from each sale.
Can I sell handmade or used items?
Yes. Amazon allows used items in certain categories and has a Handmade section for custom products. You’ll still need a valid seller account.
What tools help manage inventory?
Seller Central includes free tools, and other options like InventoryLab or Jungle Scout help independent sellers track and optimize inventory and sales.
Is FBA better than shipping yourself?
FBA is ideal if you want Amazon to ship and handle returns. It’s often faster and preferred by Prime customers, but comes with storage costs.
