Want to Sell on Amazon?
Here’s What You Need to Know Before You Start
Amazon is one of the largest e-commerce platforms in the world, offering incredible opportunities for sellers to reach millions of customers. Whether you’re starting a side hustle or building a full-time business, selling on Amazon can be highly profitable—but it’s not as simple as just listing a product.
Before you dive in, here’s everything you need to know to start your Amazon business the right way.
1. Choose the Right Selling Model
Amazon offers multiple ways to sell, and choosing the right model is crucial.
✅ Amazon FBA (Fulfilled by Amazon)
- Amazon stores, packs, and ships your products.
- Prime eligibility means faster shipping & better rankings.
- Amazon handles customer service & returns.
- Higher fees but less work for the seller.
- Best for scalable and passive income.
✅ Amazon MFN (Merchant Fulfilled Network) / FBM
- You store, pack, and ship products yourself.
- No Amazon storage fees, but more responsibility.
- Best for low-margin, oversized, or customized products.
✅ Amazon Dropshipping
- You list products on Amazon, but a supplier ships directly to customers.
- No inventory required, but strict policies & competition.
- Best for beginners with low capital.
✅ Amazon Private Label
- You create your own branded products and sell them on Amazon.
- Higher profit potential, but requires upfront investment.
- Best for long-term, brand-building sellers.
✅ Amazon Wholesale
- You buy bulk products from brands & resell them.
- Requires wholesale supplier relationships.
- Best for established sellers with capital.
2. Set Up an Amazon Seller Account
Step 1: Choose Your Seller Plan
Amazon offers two selling plans:
- Individual Plan – $0.99 per item sold (for small-scale sellers).
- Professional Plan – $39.99/month (for serious sellers).
✅ Sign up at sell.amazon.com.
Step 2: Provide Business & Tax Information
- Business Name & Address
- Government ID (Passport/Driver’s License)
- Bank Account & Credit Card
- Tax ID (or Social Security Number for individuals)
3. Find the Right Product to Sell
Choosing the right product is key to success on Amazon.
✅ What Makes a Good Amazon Product?
✔ High demand & low competition.
✔ Lightweight & easy to ship.
✔ Price range: $15 – $50 (for best profit margins).
✔ Not seasonal (to ensure year-round sales).
✅ How to Find Profitable Products?
Use tools like:
- Helium 10 – Product research & keyword analysis.
- Jungle Scout – Sales estimates & competition tracking.
- AMZScout – Profit calculations & trends.
✅ Check Amazon Best Sellers: Amazon Best Sellers
4. Source Your Products
Once you choose a product, find a reliable supplier.
✅ Where to Source Products?
- Alibaba – Best for private label sellers.
- SaleHoo – Verified wholesale suppliers.
- Local Manufacturers – Faster shipping & better quality control.
Tip: Order samples first before making a bulk purchase.
5. Create an Optimized Product Listing
A well-optimized listing increases your chances of ranking higher in Amazon search results.
✅ Key Elements of a Winning Listing
- Title – Use relevant keywords (e.g., “Stainless Steel Water Bottle – 32oz, Leakproof”).
- Bullet Points – Highlight key benefits (e.g., “Keeps drinks cold for 24 hours”).
- Product Description – Tell a story and include keywords naturally.
- High-Quality Images – Use at least 6-7 images showing different angles.
- Backend Keywords – Hidden keywords to boost search rankings.
Tip: Use Helium 10 or MerchantWords for keyword research.
6. Set Competitive Pricing
Pricing can make or break your sales.
✅ How to Price Your Product?
✔ Check competitors’ prices.
✔ Factor in Amazon fees, shipping, and production costs.
✔ Use Amazon Repricer or Bqool to stay competitive.
Tip: Start with a slightly lower price to get initial sales and reviews.
7. Choose Your Fulfillment Method
You can either:
- Use FBA (Amazon handles shipping, but you pay fees).
- Use MFN/FBM (You handle shipping, saving on fees but requiring more effort).
✅ Best for beginners? FBA for convenience, FBM for cost control.
8. Get Your First Sales & Reviews
Amazon ranks products with higher reviews and conversions.
✅ How to Get First Sales?
✔ Launch Amazon PPC Ads – Paid advertising to get visibility.
✔ Offer Discounts – Attract early customers with limited-time deals.
✔ Ask for Reviews – Use Amazon’s Request a Review button.
Tip: More reviews = higher rankings & trust.
9. Manage Inventory & Avoid Stockouts
Amazon penalizes sellers who run out of stock frequently.
✅ How to Manage Inventory?
- Use RestockPro or InventoryLab.
- Keep at least 4-6 weeks’ worth of stock.
- Track demand and reorder before running out.
Tip: Amazon delays FBA restocks, so always plan ahead.
10. Scale Your Amazon Business
Once you start getting sales, focus on growth & expansion.
✅ Ways to Scale Your Business
✔ Expand to Amazon UK, Canada, or Europe.
✔ Launch more products in the same niche.
✔ Build a Shopify store and sell outside Amazon.
✔ Invest in brand registry for protection & marketing tools.
Tip: Successful sellers reinvest profits into launching new products.
Amazon Seller Costs Breakdown
| Expense | Estimated Cost |
|---|---|
| Amazon Seller Plan | $39.99/month (Pro) or $0.99 per sale (Individual) |
| FBA Fees | 15% Referral Fee + Fulfillment Fee |
| Product Cost | Varies (e.g., $5-$10 per unit) |
| Amazon PPC (Ads) | $100 – $500/month (optional) |
| Branding (Logo, Packaging) | $50 – $200 (optional) |
Final Thoughts
Selling on Amazon is a profitable opportunity, but success requires research, strategy, and patience. By choosing the right products, optimizing listings, and managing inventory efficiently, you can build a successful Amazon business.
🚀 Ready to start selling? Follow this guide, and you’ll be on your way to Amazon success!
