Sell on Amazon: A Beginner’s 10-Step Guide
Step 1: Set Up Your Amazon Seller Account
Choose Your Selling Plan (Individual vs. Professional)
Amazon offers two primary selling plans: Individual and Professional. The Individual plan is suitable for sellers who expect to sell fewer than 40 units per month, as it charges a $0.99 fee per item sold. The Professional plan, on the other hand, costs $39.99 per month but waives the per-item fee, making it more cost-effective for higher sales volumes. The Professional plan also grants access to advanced selling tools, bulk listing options, and API integrations. To choose, navigate to sellercentral.amazon.com and click “Sign up.” You’ll be prompted to select your plan during the registration process.
Gather Necessary Information (Bank Account, Tax ID, Credit Card)
Before you begin the registration process, ensure you have the following information readily available: a valid bank account number and routing number where Amazon can deposit your sales proceeds; a scannable government-issued national ID (e.g., driver’s license or passport); your tax identification information (e.g., Social Security Number for individuals or Employer Identification Number for businesses in the US); and a chargeable credit card (not a debit card) for Amazon to charge selling fees or other expenses. Amazon uses this information for verification and payout purposes. Inaccurate or incomplete information can delay your account setup.
Step 2: List Your Product on Amazon
Identify Your Product (New vs. Used)
When creating a listing, you must accurately declare the condition of your product as either “New” or “Used.” If your item is brand new, unopened, and in its original packaging with all accessories, select “New.” If it has been opened, used, or is missing any original components, it must be listed as “Used.” For “Used” items, Amazon requires more specific condition notes (e.g., “Used – Like New,” “Used – Very Good,” “Used – Good,” “Used – Acceptable”). Be honest about the condition to avoid customer dissatisfaction and potential account penalties. To add a product, go to Seller Central, hover over “Inventory,” and click “Add a Product.” Search for your product by name or UPC/EAN/ISBN. If it exists, click “Sell yours.” If not, click “Create a new product listing.”
Create a Product Listing (Title, Description, Images)
A compelling product listing is crucial for sales. Your product title should be concise, descriptive, and keyword-rich, including brand, product name, key features, and quantity (e.g., “Brand X Wireless Bluetooth Earbuds with Noise Cancellation, 24-Hour Battery Life, Black”). The product description should elaborate on features, benefits, and usage, formatted with bullet points for readability. Use high-quality images (minimum 1000 pixels on the longest side for zoom functionality) that showcase the product from multiple angles, including lifestyle shots and infographics. Amazon allows up to 9 images. Ensure your images comply with Amazon’s guidelines (pure white background for the main image, no watermarks or text overlays). Fill out all relevant fields like brand, manufacturer, model number, and dimensions to provide comprehensive information to potential buyers.
Step 3: Manage Inventory and Fulfillment
Choose Your Fulfillment Method (FBA vs. FBM)
Amazon offers two primary fulfillment options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). With FBA, you send your products to Amazon’s fulfillment centers, and Amazon handles storage, picking, packing, shipping, customer service, and returns. This is often preferred for scalability and eligibility for Prime shipping. With FBM, you are responsible for storing, packing, and shipping products directly to customers, as well as handling customer service and returns. FBM gives you more control but requires significant logistical effort. When creating or editing a listing, you’ll be prompted to select your fulfillment method. For FBA, you’ll create a shipping plan within Seller Central to send your inventory to Amazon.
Prepare Your Products for Shipping (Packaging, Labeling)
Regardless of your chosen fulfillment method, proper packaging and labeling are essential. For FBA, each individual unit must be prepped according to Amazon’s specific guidelines. This might include polybagging items, bubble wrapping fragile products, or bundling multiple items together. Each scannable unit (e.g., a single shirt, a pack of 5 pens) must have a unique FNSKU (Fulfillment Network Stock Keeping Unit) label, which Amazon generates for you to print from Seller Central. This FNSKU identifies your specific product as belonging to your inventory. For FBM, ensure your products are securely packaged to withstand transit and prevent damage. Use appropriate-sized boxes and sufficient cushioning. Clearly label packages with the customer’s shipping address and a return address. Always use reliable shipping carriers and consider tracking for all shipments.
Step 4: Promote and Optimize Your Listings
Utilize Amazon Advertising (Sponsored Products, Brands)
Amazon Advertising offers powerful tools to increase your product’s visibility. Sponsored Products are keyword-targeted ads that appear in search results and on product pages, driving traffic to individual product listings. Sponsored Brands allow registered brand owners to showcase a collection of products and a custom headline with their brand logo, appearing prominently at the top of search results. To set up campaigns, navigate to “Advertising” > “Campaign Manager” in Seller Central. You can choose automatic targeting (Amazon matches your product to relevant searches) or manual targeting (you select specific keywords). Start with a modest budget and monitor performance closely.
Monitor Performance and Adjust Strategies (Pricing, Keywords)
Regularly review your sales data, advertising campaign performance, and customer feedback. In Seller Central, under “Reports,” you can access detailed business reports showing sales trends, traffic, and conversion rates. Under “Advertising,” you can see how your campaigns are performing (impressions, clicks, sales, ACOS – Advertising Cost of Sale).
If sales are low, consider adjusting your pricing (competitive pricing is key on Amazon), optimizing your product title and bullet points with more relevant keywords (use Amazon’s search bar suggestions or keyword research tools), or improving your product images. Experiment with different ad bids and keyword targets. For products with low conversion, assess if your product description clearly addresses customer needs or if there are negative reviews indicating issues. Continuous monitoring and iterative adjustments are vital for long-term success.
FAQs
Q1: How long does it take to get paid by Amazon?
A1: Amazon typically disburses funds to your bank account every 14 days. There’s a 7-day holding period after a sale to account for potential returns or chargebacks. You can view your payment schedule and transaction details in Seller Central under “Reports” > “Payments.”
Q2: Can I sell internationally on Amazon?
A2: Yes, Amazon allows you to sell internationally. You can expand your reach by registering for Amazon’s North America Unified Account (selling in the US, Canada, and Mexico) or by registering on individual Amazon marketplaces in Europe, Asia, or Australia. Each region has its own specific requirements and regulations.
Q3: What are the main costs associated with selling on Amazon?
A3: The primary costs include your selling plan fee ($0.99 per item for Individual, $39.99 per month for Professional), referral fees (a percentage of the product’s sale price, varying by category, typically 8-15%), and fulfillment fees (FBA fees for storage, picking, packing, shipping, or your own shipping costs for FBM). Advertising costs are additional if you choose to run campaigns.
Q4: What should I do if a customer leaves a negative review?
A4: Respond promptly and professionally to negative reviews. Acknowledge the customer’s concern, apologize for any inconvenience, and offer a solution (e.g., refund, replacement, or troubleshooting steps). Do not get defensive or argumentative. Your response is visible to other potential buyers and can demonstrate your commitment to customer satisfaction. If the review violates Amazon’s guidelines (e.g., contains profanity or personal information), you can report it to Amazon.
