Set Up an Amazon Seller Account: Beginner’s Guide

Set Up an Amazon Seller Account: Beginner’s Guide

Step 1: Prepare Your Business Information

Gather Essential Documents and Details

Before you begin the Amazon seller registration process, ensure you have all necessary documents and information readily accessible. This will streamline the setup and prevent delays. You will need:

• Business Email Address: A professional email address that you will use for all Amazon communications.
• Chargeable Credit Card: A valid credit card (Visa, MasterCard, American Express, Discover) with a valid billing address. Amazon will charge a monthly subscription fee (for Professional plans) and other selling fees to this card.
• Government ID: A valid, unexpired government-issued identification (e.g., driver’s license or passport). The name on the ID must match the name on your bank account and business registration.
• Tax Information: Your U.S. Taxpayer Identification Number (TIN) for U.S. residents (SSN for individuals, EIN for businesses). For non-U.S. residents, you’ll need relevant tax identification from your country.
• Bank Account Information: A bank account where Amazon can deposit your sales proceeds. You’ll need the bank account number and routing number.
• Business Name and Address: Your official business name and physical address. If you’re selling as an individual, use your legal name and residential address.
• Phone Number: A working phone number where Amazon can reach you for verification purposes.

Understand Amazon’s Seller Requirements

Familiarize yourself with Amazon’s eligibility criteria and policies before committing to selling. Amazon requires sellers to:

• Be at least 18 years old.
• Have the legal right to sell products in the regions they intend to operate.
• Adhere to all Amazon policies, including product quality, safety, intellectual property, and customer service standards.
• Ensure all products comply with federal, state, and local laws, as well as Amazon’s product guidelines.
• Understand and accept Amazon’s fee structure, which includes referral fees, monthly subscription fees (for Professional plans), fulfillment fees (if using FBA), and other potential charges.

Step 2: Start the Registration Process on Amazon

Navigate to the Amazon Seller Central Website

Open your web browser and go to the official Amazon Seller Central website. For sellers in the U.S., this is typically sellercentral.amazon.com. Look for a prominent button or link that says “Sign Up” or “Register now” to begin the account creation process. Do not attempt to register through the regular Amazon consumer website.

Choose Your Selling Plan

Amazon offers two primary selling plans:

• Individual Plan: This plan is suitable for sellers who expect to sell fewer than 40 units per month. There is no monthly subscription fee, but Amazon charges a $0.99 per-item fee in addition to other selling fees. This plan has fewer features and is generally recommended for those just starting out or selling casually.
• Professional Plan: This plan is designed for sellers who anticipate selling more than 40 units per month. It costs a flat monthly subscription fee (currently $39.99 in the U.S.) but waives the per-item fee. The Professional plan offers access to advanced selling tools, bulk listing options, reporting features, and eligibility for the Buy Box (which is crucial for sales).

Carefully consider your expected sales volume and business goals when making this choice. You can upgrade from an Individual to a Professional plan at any time.

Step 3: Provide Business and Personal Details

Enter Your Business Information Accurately

During the registration flow, you will be prompted to enter your business details. Ensure that every piece of information you provide exactly matches your official documents to avoid verification issues. This includes:

• Legal Name: Your full legal name or the registered legal name of your business.
• Business Address: The complete physical address of your business.
• Business Type: Select the appropriate business entity (e.g., Privately-owned business, Publicly-owned business, Individual, etc.). If you are operating as a sole proprietor, select “Individual.”
• Contact Information: Provide a valid phone number and the business email address you prepared earlier. Amazon will use these for verification and ongoing communication.

Verify Your Identity and Banking Information

This is a critical step for security and compliance. Amazon will require you to:

• Upload Government ID: You will be asked to upload clear, high-resolution scans or photos of your government-issued identification (e.g., passport or driver’s license). Ensure the entire document is visible, and there’s no glare or blur. The name on the ID must match the name you provided.
• Provide Bank Statement: In some cases, Amazon may request a bank statement to verify your bank account details. This statement should ideally be from the last 90 days and clearly show your name/business name and bank account number. Redact any sensitive transaction details.
• Credit Card Verification: Enter the details of your chargeable credit card. Amazon will typically make a small, temporary authorization charge to verify its validity.
• Phone Verification: You will receive a one-time password (OTP) via SMS or a phone call to the number you provided. Enter this code to verify your phone number.
• Video Call Verification (Optional but Common): Amazon sometimes requires a video call verification. Be prepared to show your government ID during this call. They will schedule this with you if needed.

Be patient during the verification process, as it can sometimes take a few days for Amazon to review all your submitted documents.

Step 4: Configure Your Seller Account Settings

Set Up Your Product Listing and Shipping Preferences

Once your account is verified, you’ll gain access to Seller Central. Before you list your first product, configure essential settings:

• Deposit Method: Navigate to “Settings” > “Account Info” > “Payment Information” > “Deposit Method.” Enter your bank account and routing number where Amazon will disburse your sales revenue.
• Charge Method: Ensure your credit card information is correctly entered under “Charge Method” in the same section. This is where Amazon will charge its fees.
• Shipping Settings: Go to “Settings” > “Shipping Settings.” Here, you can configure your shipping rates, transit times, and regions you ship to if you plan to fulfill orders yourself (FBM – Fulfillment by Merchant). If you plan to use FBA (Fulfillment by Amazon), these settings are less critical as Amazon handles shipping.
• Tax Settings: Under “Settings” > “Tax Settings,” provide your tax interview information. This is crucial for Amazon to correctly handle tax reporting for your sales.
• Return Settings: Configure your return policy under “Settings” > “Return Settings.” While Amazon has a default return policy, you can set specific preferences for certain products or situations.

Understand and Comply with Amazon Policies

Continuous compliance with Amazon’s policies is paramount to maintaining a healthy seller account. Regularly review these:

• Seller Code of Conduct: Familiarize yourself with the overarching principles Amazon expects from its sellers, including fair dealing, accuracy in listings, and prompt customer service.
• Product Guidelines: Understand category-specific requirements, restricted products, and prohibited content. Selling unauthorized or restricted products can lead to account suspension.
• Listing Policies: Learn how to create accurate, compelling, and compliant product listings, including proper use of titles, bullet points, descriptions, and images.
• Performance Targets: Amazon monitors key performance metrics like Order Defect Rate (ODR), Late Shipment Rate (LSR), and Pre-fulfillment Cancel Rate (PCR). Strive to keep these metrics within Amazon’s acceptable thresholds to avoid warnings or suspension. You can monitor your performance under “Performance” > “Account Health” in Seller Central.
• Intellectual Property: Respect intellectual property rights. Do not sell counterfeit products or use copyrighted or trademarked material without permission.

Regularly check your “Performance Notifications” and “Account Health Dashboard” in Seller Central for any updates or issues that require your attention.

FAQs

Q1: How long does it take for Amazon to approve a new seller account?

A1: The approval process can vary. Typically, if all your documents are clear and match the information provided, it can take anywhere from a few hours to a few business days. However, if Amazon requires additional verification (like a video call or more documents), it could extend to a week or more. Ensure all submitted documents are legible and accurate to expedite the process.

Q2: Can I sell on Amazon without registering a formal business entity?

A2: Yes, you can sell on Amazon as an individual (sole proprietor) without a formal business registration like an LLC or corporation. When choosing your business type during registration, select “Individual.” In this case, you will use your personal Social Security Number (SSN) for tax purposes and your legal name and residential address for business information. However, for serious or growing businesses, registering a formal entity is often recommended for liability protection and tax benefits.

Q3: What are the main differences between FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant)?

A3: FBA means you send your products to Amazon’s fulfillment centers, and Amazon handles storage, picking, packing, shipping, customer service, and returns for those orders. It’s generally more expensive in terms of fees but offers convenience and makes your products eligible for Prime shipping. FBM means you store your products and are responsible for all aspects of shipping, customer service, and returns yourself. FBM offers more control and potentially lower costs for low-volume or oversized items but requires more hands-on management.

Q4: What should I do if my Amazon seller account application is rejected?

A4: If your application is rejected, Amazon will usually send you a performance notification or email explaining the reason. Common reasons include mismatched information, unclear documents, or issues with identity verification. Carefully read the rejection notice, identify the specific issue, and gather the correct or clearer documentation. You will typically be given an opportunity to appeal the decision by submitting the requested information. If you’re unsure, contact Amazon Seller Support for clarification on the specific requirements for re-submission.