How to Become an Amazon Seller – A Complete Guide
Amazon is the largest e-commerce platform in the world, with over 300 million active customers. If you're looking to start an online business, becoming an Amazon seller is one of the most powerful and scalable ways to generate income. Whether you want to sell handmade crafts, wholesale products, or private label goods, Amazon provides the tools and customer base to help you succeed.
In this guide, you'll learn step-by-step how to become an Amazon seller, including how to set up your account, choose products, manage listings, fulfill orders, and scale your business.
1. Why Sell on Amazon?
Before diving into the steps, let’s look at why Amazon is a great platform for sellers:
Advantages:
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Massive customer base – Millions shop on Amazon every day.
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Global reach – Sell products worldwide with FBA (Fulfilled by Amazon).
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Built-in trust – Customers trust Amazon’s buying process.
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Scalability – Start small and grow big.
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Automated systems – Inventory, shipping, payments – all can be managed easily.
2. Types of Amazon Seller Accounts
Individual Seller Account
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Best for beginners or those planning to sell < 40 items/month.
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No monthly fee, but Amazon charges $0.99 per item sold.
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Limited access to advanced tools.
Professional Seller Account
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Monthly fee: $39.99 (no per-item fee).
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Access to bulk listing tools, ads, reports, and eligibility for Buy Box.
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Best for serious or full-time sellers.
3. What Can You Sell on Amazon?
Product Types:
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Retail Arbitrage: Buy low from retail stores, sell high on Amazon.
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Online Arbitrage: Same as above, but buying from online stores.
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Wholesale: Buy in bulk from distributors and resell.
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Private Label: Create your own brand, often using Alibaba.
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Handmade Products: Sell your unique creations through Amazon Handmade.
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Dropshipping: Sell without holding inventory (less recommended due to policy risks).
Make sure your product doesn’t fall under restricted categories, which require approval (e.g., supplements, beauty, jewelry).
4. Step-by-Step: How to Become an Amazon Seller
Step 1: Create an Amazon Seller Account
Go to https://sellercentral.amazon.com
Required information:
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Business name and address
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Email address
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Mobile number
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Credit card and bank account
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Tax information (SSN/EIN)
Choose between Individual or Professional account types based on your selling goals.
Step 2: Choose Your Selling Strategy
Decide whether you want to use:
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FBM (Fulfilled by Merchant): You handle shipping, packaging, and customer service.
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FBA (Fulfilled by Amazon): You send products to Amazon's warehouse; they handle the rest. Ideal for scaling.
FBA Pros:
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Prime eligibility
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Fast delivery
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Customer service managed by Amazon
FBM Pros:
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Lower fees
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More control over packaging and branding
Step 3: Product Research
Use tools like:
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Jungle Scout
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Helium 10
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Keepa
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Amazon Best Seller Rank (BSR)
Look for:
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High demand, low competition
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Good profit margins
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Lightweight and easy to ship
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Products with potential for bundling or branding
Step 4: Source Your Product
Options:
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Local wholesale suppliers
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Alibaba.com (for private label)
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Local manufacturers
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Handmade creation
When sourcing:
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Compare prices
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Order samples
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Check Minimum Order Quantity (MOQ)
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Verify product quality
Step 5: Create Product Listings
A compelling product listing is crucial for conversions.
What to include:
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Title: Include main keywords.
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Bullet points: Highlight features and benefits.
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Product description: Use storytelling and SEO.
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Images: High-quality, white background, lifestyle photos.
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Backend keywords: Helps Amazon index your listing for search.
Use SEO tools to find keywords buyers use when searching for your product.
Step 6: Set Your Pricing
Consider:
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Product cost
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Shipping/FBA fees
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Amazon referral fees
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Your desired profit margin
Use Amazon’s FBA calculator to estimate profitability.
Pricing strategy options:
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Competitive pricing
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Psychological pricing (e.g., $19.99)
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Dynamic pricing tools (automatically adjust based on competitors)
Step 7: Ship Products to Amazon (FBA)
If using FBA:
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Label each unit (Amazon provides barcodes)
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Pack according to Amazon’s guidelines
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Create a shipment in Seller Central
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Send to the designated Amazon fulfillment center
If using FBM:
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Store inventory yourself
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Package and ship when orders come in
Step 8: Launch Your Product
Use these strategies to drive sales:
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Amazon PPC (Pay-Per-Click) ads
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Discounts or coupons to encourage reviews
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Social media promotions
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Email marketing
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Influencer outreach
Encourage early buyers to leave honest reviews (but don’t pay for reviews – it’s against Amazon policy).
5. Understanding Amazon Fees
Common fees:
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Referral Fee: % of each sale (usually 8%–15%)
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FBA Fees: Handling, storage, and fulfillment
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Monthly Subscription Fee: $39.99 for Pro Sellers
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Closing Fee: For media items like books or DVDs
Always calculate your net profit after all fees.
6. Manage Your Seller Account
Use the Seller Central dashboard to:
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Track orders and returns
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Monitor performance (shipping speed, ratings)
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Respond to customer messages
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Run advertising campaigns
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View sales reports
Amazon has strict policies – maintain:
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Low cancellation and late shipment rate
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High feedback score
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Prompt customer service
7. Tips for Success on Amazon
Focus on Reviews
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Provide excellent customer service
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Include product inserts requesting feedback
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Use Amazon’s "Request a Review" button
Inventory Management
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Avoid stockouts (hurts ranking)
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Use tools like RestockPro, SoStocked
Branding & Packaging
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Custom packaging improves customer perception
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Register your brand with Amazon Brand Registry to protect against counterfeiters
Expand to Other Markets
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Use Amazon Global Selling to reach Canada, UK, EU, etc.
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Understand local laws and tax rules
8. Scaling Your Amazon Business
Once you've found success with one product, consider:
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Adding new related products (product line expansion)
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Creating product bundles
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Launching your own brand (private label)
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Building a Shopify store for omnichannel presence
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Outsourcing tasks like customer service, PPC, and sourcing
9. Common Mistakes to Avoid
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Selling restricted or gated products without approval
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Ignoring Amazon’s policies (risk of suspension)
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Running out of stock
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Poor customer communication
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Overpricing or underpricing
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Not optimizing listings with SEO
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Relying too heavily on a single product
10. Final Thoughts
Becoming an Amazon seller is one of the best opportunities in today’s digital economy. With low startup costs and high scalability, thousands of people have turned Amazon selling into full-time income. However, it takes research, strategy, and consistent effort to succeed.
Start small, learn the ropes, and reinvest profits to grow. Use the tools and resources available, and focus on long-term success rather than quick wins. With the right approach, you can build a profitable and sustainable Amazon business.
