How to Open an Amazon Store: A Comprehensive Guide
Step 1: Understand the Basics of Selling on Amazon
Choose Your Selling Plan
Before you even think about creating an account, you need to decide which selling plan suits your business. Amazon offers two primary plans: Individual and Professional. The Individual plan costs $0.99 per item sold, making it suitable for sellers who anticipate selling fewer than 40 items per month. It offers basic selling tools. The Professional plan costs $39.99 per month, regardless of how many items you sell. This plan is ideal for businesses expecting to sell more than 40 items monthly, as it provides access to advanced selling tools, bulk listing options, API integrations, and eligibility for top placement on product detail pages (the Buy Box). Carefully calculate your projected sales volume and budget to make an informed decision. You can always switch plans later if your business needs change.
Understand Amazon Seller Fees
Beyond the monthly subscription or per-item fee, you’ll encounter several other fees. Referral fees are a percentage of the product’s total sales price (including shipping and gift-wrap charges) and vary by product category, typically ranging from 8% to 15%. For example, electronics accessories often have a 15% referral fee, while personal computers might be 6%. Closing fees apply to media products (books, DVDs, music, video games) and are a flat $1.80 per item. If you opt for Fulfillment by Amazon (FBA), you’ll incur FBA fulfillment fees (per-unit fees for picking, packing, shipping, and customer service) and monthly storage fees (based on cubic footage). It’s crucial to factor all these potential costs into your pricing strategy to ensure profitability. Utilize Amazon’s fee calculators available in Seller Central for specific product examples.
Step 2: Register Your Amazon Seller Account
Gather Required Information
Before you begin the registration process, ensure you have all necessary documentation and information readily available. This will streamline the setup and prevent delays. You will need: a valid, internationally chargeable credit card (Visa, MasterCard, American Express, Discover); a phone number where you can be reached during the registration process; your tax identification information (Social Security Number for individuals, Employer Identification Number for businesses); and your bank account number and routing number for Amazon to disburse your earnings. For businesses, you might also need your business name, address, and legal entity type (e.g., LLC, corporation).
Complete the Registration Process
Navigate to services.amazon.com and click on “Sign up” or “Sell on Amazon.” You will be prompted to create a new Amazon account or log in with an existing one. If creating a new account, follow the steps to set up your login credentials. Then, you’ll be guided through a series of screens to input the information you gathered: your business location, business type, full name, address, phone number, and credit card details. You’ll also need to provide your tax information for IRS purposes. Amazon will verify your identity, which may involve a one-time password sent to your phone or a video call verification. Be prepared to provide clear, legible scans or photos of your identification documents if requested. Once all information is submitted and verified, your seller account will be activated, and you’ll gain access to Seller Central.
Step 3: List Your Products on Amazon
Create Product Listings
Once your seller account is active, log into Seller Central. To add a product, go to “Inventory” and then “Add a Product.” You have two main options: “Search for your product in Amazon’s catalog” if you’re selling an existing product (e.g., a popular book or electronic device already sold on Amazon), or “I’m adding a product not sold on Amazon” if you’re selling a unique or private-label item. If you’re matching an existing product, simply enter the ASIN, ISBN, UPC, or EAN. If creating a new listing, you’ll select the product category, then fill in critical details such as product name, brand, manufacturer, unique product identifier (UPC/EAN/GTIN), price, quantity, condition, and fulfillment method (FBA or FBM). Provide as much detail as possible to help customers find and understand your product.
Optimize Product Descriptions and Images
High-quality product descriptions and compelling images are crucial for converting browsers into buyers. For descriptions, focus on key features and benefits. Use bullet points for readability and incorporate relevant keywords that customers might use when searching. Keep sentences concise and engaging. For images, Amazon requires a white background for the main image, which should fill at least 85% of the frame. The shortest side of the image must be at least 500 pixels, but 1,000 pixels or larger is recommended for zoom functionality. Include multiple images from various angles, showcasing product details, scale, and lifestyle shots if applicable. Ensure images are high-resolution and accurately represent the product. Poor images and vague descriptions are common reasons for low sales and returns.
Step 4: Manage Your Amazon Store and Orders
Fulfill Customer Orders
How you fulfill orders depends on your chosen method: Fulfillment by Merchant (FBM) or Fulfillment by Amazon (FBA). If using FBM, you are responsible for storing, packing, and shipping products directly to customers. When an order comes in, you’ll receive a notification in Seller Central. Go to “Orders” > “Manage Orders,” select the order, print the packing slip, carefully package the item, purchase shipping labels (either through Amazon’s Buy Shipping service or a third-party carrier), and ship the product within the promised timeframe. Then, confirm shipment in Seller Central, providing the tracking number. If using FBA, Amazon handles all storage, packing, shipping, customer service, and returns. Your primary responsibility is to prepare and ship your inventory to Amazon’s fulfillment centers according to their strict guidelines (e.g., proper labeling, packaging, and shipping plans).
Monitor Performance and Customer Feedback
Regularly check your performance metrics in Seller Central under “Performance” > “Account Health.” Amazon tracks key metrics like Order Defect Rate (ODR), Late Shipment Rate, and Pre-fulfillment Cancel Rate. Maintaining good account health is vital to avoid penalties or even account suspension. Actively monitor customer feedback and reviews under “Performance” > “Customer Feedback” and “Reports” > “Fulfillment by Amazon Customer Returns.” Respond promptly and professionally to customer inquiries, complaints, and negative reviews. Addressing issues quickly and courteously can turn a negative experience into a positive one and build customer trust. Use the “Business Reports” section to analyze sales trends, traffic, and conversion rates to identify opportunities for improvement and optimize your listings and inventory.
FAQs
Q: Can I sell handmade products on Amazon?
A: Yes, Amazon has a specific program called Amazon Handmade for artisans to sell unique, handcrafted goods. You’ll need to apply and be approved for this category, which has different fee structures and listing requirements than standard Amazon selling.
Q: What is the difference between FBA and FBM?
A: FBA (Fulfillment by Amazon) means Amazon stores your products, picks, packs, ships them, and handles customer service and returns. FBM (Fulfillment by Merchant) means you, the seller, are responsible for all aspects of storage, shipping, and customer service.
Q: How long does it take to get paid by Amazon?
A: Amazon typically disburses funds to your bank account every two weeks, provided you have a positive balance after all fees have been deducted. The first disbursement might take longer as Amazon establishes your account.
Q: Do I need a business license to sell on Amazon?
A: While Amazon itself doesn’t explicitly require a business license to open a seller account, your local, state, and federal governments may require specific licenses or permits depending on your business structure and the products you sell. It’s best to consult with a legal or business advisor to ensure compliance.