Sell on Amazon: A Beginner's Guide - Learn about selling online

Sell on Amazon: A Beginner’s 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 costs $0.99 per item sold, making it suitable for sellers who anticipate selling fewer than 40 units per month. There are category restrictions, and you don’t have access to advanced selling tools, bulk listing options, or API integrations. The Professional plan, on the other hand, costs a flat fee of $39.99 per month, regardless of the number of items sold. This plan is recommended if you plan to sell more than 40 units monthly, as it provides access to advanced features like inventory management tools, bulk upload capabilities, order reports, and eligibility for the Buy Box. To choose, navigate to Amazon’s selling plans page and select “Sign up” under your preferred plan.

Provide Required Business and Personal Information

Once you’ve selected your plan, Amazon will prompt you to enter various pieces of information to verify your identity and business. This typically includes:

Business Name and Address: Ensure this matches your legal business registration documents.
Credit Card Information: A valid credit card is required for billing your monthly subscription (Professional plan) and for Amazon to charge any fees.
Phone Number: For verification purposes; Amazon will send a PIN to confirm.
Bank Account Information: This is where Amazon will deposit your sales proceeds. You’ll need your bank’s routing number and your account number.
Tax Information: You’ll be guided through a tax interview process to provide your Tax Identification Number (TIN) or Social Security Number (SSN), depending on your business structure and location. This is crucial for tax reporting.

Have all these details readily available before you begin the registration process to ensure a smooth setup. Amazon may take a few days to verify all your information.

Step 2: List Your Product on Amazon

Create a New Product Listing (or Match an Existing One)

After your account is set up, log into Seller Central. Navigate to “Inventory” and then “Add a Product.” You’ll have two main options:

Search for your product in the Amazon catalog: If you’re selling a product that already exists on Amazon (e.g., a popular brand of headphones), you’ll search by name, UPC, EAN, ISBN, or ASIN. If found, you’ll simply list your condition (new, used, etc.) and your selling price. This is common for resellers.
Create a new product listing: If your product is unique, private label, or not yet on Amazon, you’ll select “I’m adding a product not sold on Amazon.” You’ll then be guided through a wizard where you select the product category, provide product identifiers (like a UPC or GTIN exemption), and fill in all product details. Ensure you have high-quality product images (minimum 1000px on the longest side, white background preferred) ready to upload.

For new listings, accurately categorize your product, as this affects search visibility and fees. Obtain a UPC or GTIN for your product if you don’t already have one; these can be purchased from GS1 directly.

Optimize Your Product Title and Bullet Points

Optimizing your product listing is crucial for discoverability and conversions.

Product Title: Your title should be descriptive and include relevant keywords. Follow Amazon’s guidelines, typically including brand, product line, material or key feature, product type, and color/size. For example: “BrandName XYZ Bluetooth 5.0 Wireless Earbuds with Noise Cancellation, 30-Hour Battery Life, Black.” Keep it concise yet informative, aiming for around 80-150 characters.
Bullet Points (Key Product Features): Use the five bullet points provided to highlight your product’s most important features and benefits. Each bullet should start with a capitalized keyword and concisely explain a benefit. For instance, instead of “Long battery,” write “EXTENDED PLAYTIME: Enjoy up to 30 hours of continuous audio with our high-capacity battery, perfect for long commutes.” Focus on what the product does for the customer, not just what it is. Include relevant keywords that customers might use when searching.

Continuously review and refine your title and bullet points based on search term reports and competitor analysis to improve your product’s organic ranking.

Step 3: Manage Your Inventory and Fulfillment

Decide on Fulfillment by Amazon (FBA) vs. Fulfillment by Merchant (FBM)

This is a critical decision impacting your operational workload and customer experience.

Fulfillment by Amazon (FBA): You ship your products to Amazon’s fulfillment centers. Amazon then stores your inventory, picks, packs, ships orders, handles customer service, and manages returns for these products. FBA products are eligible for Prime shipping, which can significantly boost sales. While there are FBA fees (storage, fulfillment), it frees up your time and often leads to higher sales due to Prime eligibility and Amazon’s trusted fulfillment.
Fulfillment by Merchant (FBM): You are responsible for storing your inventory, picking, packing, and shipping orders directly to customers. You also handle all customer service and returns. This option gives you more control over your inventory and packaging but requires more time and resources. It’s suitable for large, bulky items, low-volume sellers, or those with existing robust fulfillment operations.

To set your fulfillment method, go to “Inventory” > “Manage Inventory,” select your product, and choose “Change to Fulfilled by Amazon” or “Change to Fulfilled by Merchant” from the dropdown menu.

Prepare Your Products for Shipping (if using FBA)

If you choose FBA, proper preparation is essential to avoid delays and fees.

Packaging: Products must be securely packaged to withstand shipping and handling. Use appropriate dunnage (bubble wrap, packing peanuts) for fragile items.
Labeling: Each individual product unit needs an Amazon FNSKU (Fulfillment Network Stock Keeping Unit) label, which is unique to your product and Amazon. You can print these labels from Seller Central during the “Send/replenish inventory” workflow. These labels cover the manufacturer’s UPC/EAN barcode.
Shipping Plan: In Seller Central, navigate to “Inventory” > “Manage FBA Shipments” and create a shipping plan. This involves specifying the products you’re sending, quantities, and choosing your preferred shipping carrier. Amazon will often split your shipment to different fulfillment centers based on demand and location.
Box Labels: Each shipping box must have an Amazon-generated shipping label (which includes the FBA ID and box contents) on the outside.

Carefully review Amazon’s packaging and prep requirements to ensure compliance and prevent issues at the fulfillment center.

Step 4: Promote and Grow Your Amazon Business

Utilize Amazon Advertising Options (Sponsored Products, Brands, Display)

Amazon offers powerful advertising tools within Seller Central to increase your product’s visibility.

Sponsored Products: These are keyword-targeted ads that appear in search results and on product detail pages. They are highly effective for driving immediate sales for specific products. You bid on keywords, and when a customer searches for that keyword, your ad may appear. Start with automatic campaigns to gather data, then transition to manual campaigns with high-performing keywords.
Sponsored Brands: (Requires Brand Registry) These ads feature your brand logo, a custom headline, and multiple products. They appear prominently at the top of search results and are excellent for brand awareness and driving traffic to your Brand Store (if you have one).
Sponsored Display: (Requires Brand Registry) These are audience-targeted ads that appear on Amazon and on third-party websites and apps, reaching shoppers who have viewed your products or similar ones. Great for remarketing and reaching new audiences.

Access these options via “Advertising” > “Campaign Manager” in Seller Central. Start with a small budget, monitor your ACoS (Advertising Cost of Sale), and continuously optimize your campaigns by adjusting bids, keywords, and ad creatives.

Monitor Performance and Gather Customer Reviews

Consistent monitoring and active engagement are key to long-term success.

Monitor Performance: Regularly check your “Reports” section in Seller Central. Key metrics include sales, orders, conversion rate, return rate, and inventory levels. Pay attention to your “Business Reports” for detailed insights into traffic and sales performance by ASIN. Use the “Voice of the Customer” dashboard to identify product quality issues or common customer complaints.
Gather Customer Reviews: Positive reviews are vital for building trust and improving conversion rates. Amazon strictly prohibits incentivized reviews. The best way to get reviews is to provide an excellent product and customer experience. You can use Amazon’s “Request a Review” button within the order details in Seller Central, which sends a compliant email to the customer. Alternatively, third-party tools can automate this process within Amazon’s terms of service. Respond professionally to all reviews, both positive and negative, to show you value customer feedback.

Aim for a 4.5-star rating or higher. A consistent flow of new, positive reviews helps your product rank higher in search results and instills confidence in potential buyers.

FAQs

Q1: How much does it cost to sell on Amazon?

A1: The costs vary based on your selling plan and fulfillment method. The Professional selling plan costs $39.99/month. The Individual plan charges $0.99 per item sold. On top of this, there are referral fees (a percentage of the sale price, typically 8-15% depending on the category), FBA fulfillment fees (if using FBA, based on product size and weight), and FBA storage fees. Advertising costs are additional and optional.

Q2: Do I need a UPC or GTIN to sell on Amazon?

A2: Generally, yes. Most products require a standard product identifier like a UPC (Universal Product Code) or EAN (European Article Number) to be listed on Amazon. These are typically purchased from GS1. However, if you are selling private label products, handmade items, or products for which you are the brand owner and have registered your brand with Amazon Brand Registry, you may be eligible for a GTIN exemption, allowing you to list without a UPC.

Q3: What is Amazon Brand Registry and why is it important?

A3: Amazon Brand Registry is a program for brand owners that provides powerful tools to protect your intellectual property, manage your listings, and access enhanced marketing features. To enroll, you need a registered trademark for your brand. Its importance lies in preventing unauthorized sellers from listing your products, giving you more control over your product content, and unlocking features like A+ Content (enhanced product descriptions), Sponsored Brands ads, and Amazon Stores.

Q4: How long does it take to start selling and make sales on Amazon?

A4: Setting up your seller account can take a few days to a week for verification. Listing your first product can be done in minutes if it already exists, or a few hours if you’re creating a new listing. Once your product is live and in stock (especially if using FBA), sales can begin immediately, but consistent sales and significant volume depend on factors like product demand, pricing, listing optimization, advertising efforts, and competition. It can take weeks or even months to gain traction and establish a steady revenue stream.