Set Up an Amazon Store: 10 Key Things to Know

Step 1: Set Up Your Amazon Seller Account

Choose Your Selling Plan (Individual vs. Professional)

When you first register, Amazon offers two primary selling plans: Individual and Professional. The Individual plan is suitable if you expect to sell fewer than 40 items 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 if you plan to sell 40 or more items monthly. The Professional plan also unlocks advanced selling tools, bulk listing options, and access to Amazon’s advertising platform. To choose, navigate to sellercentral.amazon.com and click “Sign up.” You’ll be prompted to select your plan during the registration process. You can upgrade or downgrade your plan at any time from your Seller Central account settings under “Your Services.”

Gather Required Information (Business Name, Bank Account, Tax Info)

Before you begin the registration process, ensure you have the following critical information readily available to avoid delays:

Business Email Address: This will be your primary login and communication channel.
Credit Card: Amazon requires a valid credit card on file for charges (monthly fees, advertising, etc.).
Phone Number: For verification purposes.
Business Name and Address: Your legal business name and physical address. If you’re operating as a sole proprietor, this will be your personal name and address.
Bank Account Information: Your routing number and account number for a checking account where Amazon can deposit your earnings. Ensure this account is in the name of your business or yourself if a sole proprietor.
Tax Information: For U.S. sellers, this typically means your Social Security Number (SSN) or Employer Identification Number (EIN). Amazon will guide you through a tax interview to determine your tax identity.

Having these details prepared will streamline the account setup process significantly.

Step 2: List Your Products on Amazon

Create New Product Listings or Match Existing Ones

Once your seller account is active, you can start adding products. In Seller Central, go to “Inventory” and select “Add a Product.” You’ll have two main options:

Find a product in the Amazon catalog: If you’re selling a product that already exists on Amazon (e.g., a popular brand-name item), you can search for its ASIN (Amazon Standard Identification Number), UPC, EAN, or ISBN. Once found, you can ‘Sell Yours’ and specify your condition, price, and quantity. This is common for resellers.
Create a new product listing: If you’re selling a unique product, your own brand, or a product not yet on Amazon, you’ll need to create a new listing. This involves providing details such as the product name, brand, category, images, bullet points, and a detailed description. You’ll also need a GTIN (Global Trade Item Number) like a UPC, EAN, or ISBN for most new products. If you don’t have one, you might need to apply for a GTIN exemption or purchase UPC codes.

Be meticulous when creating new listings; accuracy is key to avoiding customer complaints and returns.

Optimize Product Titles and Descriptions for Search

Effective product optimization is crucial for visibility on Amazon.

Product Titles: Your title should be concise, informative, and keyword-rich, following Amazon’s guidelines (e.g., Brand + Model Name + Product Type + Key Feature). Aim for 80-150 characters. For example, “Bose QuietComfort 35 II Noise-Cancelling Bluetooth Headphones with Alexa Voice Control – Black.” Include primary keywords that customers would use to search for your product.
Bullet Points (Key Product Features): Use the five bullet points to highlight the most important features and benefits of your product. Each bullet point should start with a capital letter and be concise. Focus on customer benefits rather than just features. For instance, instead of “2000 mAh battery,” write “Long-lasting 2000 mAh battery provides up to 10 hours of continuous use.”
Product Description: This is where you can elaborate further on your product, its uses, and unique selling propositions. Use compelling language, include secondary keywords, and consider using HTML tags (like <b> for bolding) for readability. For brand-registered sellers, A+ Content (Enhanced Brand Content) offers a powerful way to create visually rich descriptions with images and comparison charts.

Regularly review search terms reports in Seller Central to identify new keyword opportunities.

Step 3: Manage Your Inventory and Orders

Understand Fulfillment by Amazon (FBA) vs. Fulfillment by Merchant (FBM)

Amazon offers two primary fulfillment methods:

Fulfillment by Amazon (FBA): With FBA, you send your products to Amazon’s fulfillment centers. Amazon stores your inventory, picks, packs, and ships orders to customers, and handles customer service and returns for those orders. This allows your products to be eligible for Prime shipping, which is a significant advantage. While there are FBA fees (storage, fulfillment), it frees up your time and scales easily. To use FBA, convert your listings to “Fulfilled by Amazon” in Seller Central and follow the shipping plan creation process.
Fulfillment by Merchant (FBM): With FBM, you are responsible for storing your inventory, packaging orders, shipping them directly to customers, and handling all customer service and returns yourself. This gives you more control and can be more cost-effective for low-volume sellers or oversized/fragile items. However, you must meet Amazon’s strict shipping performance metrics (e.g., on-time delivery, valid tracking rate) to maintain good standing.

Many sellers use a hybrid approach, using FBA for best-sellers and FBM for slower-moving or specialized items.

Process Customer Orders and Handle Returns

Efficient order and return management is vital for customer satisfaction and seller performance.

Processing Orders (FBM): If you’re fulfilling orders yourself (FBM), regularly check your Seller Central dashboard for new orders under “Orders” > “Manage Orders.” For each order, click “Confirm Shipment” after you’ve packaged the item and purchased a shipping label. You’ll need to enter the carrier and tracking number. Ship promptly to meet Amazon’s expected ship date.
Returns (FBM): For FBM returns, Amazon has a return policy that sellers must adhere to. When a customer initiates a return, you’ll receive a notification. You’ll need to authorize the return, provide a return address, and then process the refund once the item is received back and inspected. Clearly communicate your return policy on your seller profile.
Monitoring Performance: Regularly check your “Performance” dashboard in Seller Central. Key metrics include Order Defect Rate (ODR), Cancellation Rate, and Late Shipment Rate. Consistently failing to meet these targets can lead to account suspension.

For FBA orders, Amazon handles most of these processes, but you should still monitor your FBA inventory levels and replenishment needs.

Step 4: Market and Grow Your Amazon Store

Utilize Amazon Advertising Options (Sponsored Products, Brands)

Amazon offers powerful advertising tools to increase your product’s visibility:

Sponsored Products: These are cost-per-click (CPC) ads that appear in search results and on product detail pages. They are highly effective for driving immediate sales for individual products. You can target specific keywords or products. Start with automatic campaigns to gather keyword data, then transition to manual campaigns for more control.
Sponsored Brands: (Requires Brand Registry) These ads feature your brand logo, a custom headline, and multiple products. They appear prominently in search results and are excellent for brand awareness and driving traffic to your Brand Store or a custom landing page.
Sponsored Display: (Requires Brand Registry) These ads appear on and off Amazon, targeting shoppers based on their shopping behaviors or specific product views. They are useful for remarketing and reaching new audiences.

Start with a small budget, monitor your ACoS (Advertising Cost of Sale), and refine your campaigns based on performance data. Advertising is an investment in growth.

Monitor Performance Metrics and Customer Feedback

Continuous monitoring and adaptation are crucial for long-term success.

Performance Dashboard: Regularly review your “Performance” section in Seller Central. Pay close attention to your Order Defect Rate (ODR), which includes negative feedback, A-to-Z Guarantee claims, and chargebacks. Keep your ODR below 1% to avoid account health issues.
Business Reports: Under “Reports” > “Business Reports,” you can access detailed data on sales, traffic (page views, sessions), conversion rates, and more. Analyze this data to identify trends, popular products, and areas for improvement. For example, if a product has high views but low conversions, its price, images, or description might need optimization.
Customer Feedback: Actively solicit and manage customer reviews. Positive reviews build trust and improve search ranking. Respond professionally to all reviews, especially negative ones, to demonstrate good customer service. You can also monitor seller feedback (separate from product reviews) to gauge overall satisfaction with your service.

Use this data to make informed decisions about inventory, pricing, marketing, and product development.

FAQs

Q1: How long does it take to set up an Amazon seller account?

A1: The initial registration process for an Amazon seller account can be completed in about 15-30 minutes if you have all the required information (business details, bank account, tax info) ready. However, Amazon may take up to 24-72 hours to verify your information. In some cases, identity verification might require a video call, which can extend the setup time by a few days.

Q2: Do I need a business license to sell on Amazon?

A2: Amazon itself does not explicitly require you to have a formal business license to open a seller account, especially if you start as an Individual seller. However, your local, state, and federal governments may require specific business licenses or permits depending on your business structure, location, and the types of products you sell. It’s crucial to research and comply with all applicable legal requirements for your specific business.

Q3: What are the main costs associated with selling on Amazon?

A3: The main costs include:

Selling Plan Fees: $0.99 per item (Individual) or $39.99/month (Professional).
Referral Fees: A percentage of the sale price (typically 8-15%, depending on the product category).
FBA Fees (if applicable): Storage fees (monthly, per cubic foot) and fulfillment fees (per unit, based on size/weight).
Shipping Costs: If you’re fulfilling yourself (FBM).
Advertising Costs: If you choose to run Sponsored Products, Brands, or Display ads.
Other Potential Costs: Return processing fees, long-term storage fees (for FBA), subscription fees for third-party tools, etc.

Q4: Can I sell internationally from my Amazon store?

A4: Yes, Amazon allows you to sell internationally. Once you have a Seller Central account in one region (e.g., North America), you can expand to other regions (Europe, Asia-Pacific) through a linked account. Amazon offers programs like “Build International Listings” to help you synchronize listings and manage inventory across marketplaces. However, international selling involves understanding different tax regulations (like VAT in Europe), shipping logistics, customs duties, and local consumer laws, so it requires careful planning.