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How to Sell on Amazon 2026: Account Setup to First Sale

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Who this is for

First-time Amazon sellers who want a clear roadmap from account setup to first sale. Whether you're launching a private label brand, doing retail arbitrage, or selling wholesale products, this guide covers the fundamentals every Amazon seller needs to know.

The goal

By the end of this guide, you'll understand Amazon's fee structure, know whether FBA or FBM is right for you, have a seller account set up, and be ready to create your first listing. No fluff—just the practical steps to start selling.

What you need to start selling on Amazon

Before creating your seller account, gather these essentials:

  • Email address — Dedicated to your Amazon business (not an existing buyer account email)
  • Phone number — For verification and two-factor authentication
  • Credit card — International card that can be charged (for monthly fees and verification)
  • Bank account — Where Amazon deposits your earnings
  • Government ID — Passport or driver's license for identity verification
  • Tax information — SSN (individual) or EIN (business) for US sellers
  • Business address — Where Amazon can send correspondence

Amazon's verification process is thorough. Having all documents ready prevents delays in getting your account approved.

Individual vs Professional seller accounts

Amazon offers two account types:

Feature Individual Professional
Monthly fee $0 $39.99/month
Per-item fee $0.99 per sale $0
Best for <40 sales/month 40+ sales/month
Buy Box eligible Limited Yes
Bulk listing tools No Yes
Advertising access No Yes
Reports & analytics Basic Advanced
Category restrictions More restricted Fewer restrictions

The math: If you sell more than 40 items per month, Professional saves money ($39.99 vs $0.99 × 40+ = $39.60+). More importantly, Professional gives you access to the Buy Box, advertising, and tools you need to scale.

Start with Individual if you're testing the waters. Upgrade to Professional when you're ready to grow—you can switch anytime.

Optimize your Amazon product title

Generate compliant, keyword-rich titles within Amazon's character limits.

How much does it cost to sell on Amazon?

Amazon's fee structure is more complex than other marketplaces. Here's the complete breakdown:

Referral fees (all sellers)

Amazon charges a percentage of each sale, varying by category:

Category Referral Fee
Most categories 15%
Electronics 8%
Computers 8%
Video games 15%
Clothing & accessories 17%
Jewelry 20% (5% for items over $250)
Amazon device accessories 45%

Referral fees are calculated on the total sale price including shipping (but not tax).

FBA fees (if using Fulfillment by Amazon)

If Amazon stores and ships your products, you pay:

Fulfillment fees (per unit shipped):

  • Small standard (up to 1 lb): $3.22
  • Large standard (up to 1 lb): $4.75
  • Large standard (1-2 lb): $5.14
  • Large standard (2-3 lb): $5.79
  • Oversize items: $9.73+ depending on weight

Storage fees (per cubic foot):

  • Standard-size (Jan-Sep): $0.87/month
  • Standard-size (Oct-Dec): $2.40/month
  • Oversize (Jan-Sep): $0.56/month
  • Oversize (Oct-Dec): $1.40/month

Other FBA fees:

  • Long-term storage (365+ days): $6.90/cubic foot or $0.15/unit (whichever is greater)
  • Removal/disposal: $0.97-$13.05 per unit
  • Returns processing: Equal to fulfillment fee (for some categories)

FBM fees (Fulfillment by Merchant)

If you ship products yourself, you avoid FBA fees but still pay:

  • Referral fee (8-20% by category)
  • Per-item fee ($0.99 if Individual account)
  • Your actual shipping costs

Calculate your fees

Use our Amazon FBA Calculator to see your exact costs for any product.

For a detailed breakdown of every Amazon fee, see our Amazon FBA fees explained guide.

Example: Selling a $25 product with FBA

  • Sale price: $25.00
  • Referral fee (15%): $3.75
  • FBA fulfillment fee (small standard): $3.22
  • Total Amazon fees: $6.97
  • Your payout: $18.03 (before product cost)

That's approximately 28% in fees. Factor this into your pricing strategy.

How to set up your Amazon seller account

Step 1: Go to Seller Central

Visit sellercentral.amazon.com and click "Sign up."

Step 2: Choose your account type

Select Individual or Professional. You can change this later.

Step 3: Enter your business information

Provide:

  • Legal business name (or your name for sole proprietors)
  • Business address
  • Phone number

Step 4: Complete identity verification

Amazon will ask for:

  • Government-issued photo ID
  • Bank account statement or credit card statement
  • Video call verification (sometimes required)

This process takes 24-72 hours. Some sellers report longer waits during peak periods.

Step 5: Add your payment information

  • Deposit method: Bank account where Amazon sends your earnings
  • Charge method: Credit card for monthly fees and any balance owed

Step 6: Configure your tax information

Complete the tax interview to provide your SSN or EIN. Amazon reports sales to the IRS and issues 1099-K forms.

Step 7: Set up your storefront

  • Add your logo
  • Write an About section
  • Configure return and shipping settings

FBA vs FBM: Which fulfillment method should you choose?

This decision significantly impacts your business. Here's how to choose:

Choose FBA (Fulfillment by Amazon) if:

  • You want Prime eligibility (major competitive advantage)
  • You don't have space to store inventory
  • You sell lightweight, fast-moving products
  • You want Amazon to handle customer service and returns
  • You're willing to pay higher fees for convenience

FBA pros:

  • Prime badge increases conversion rates 20-30%
  • Amazon handles shipping, returns, and customer service
  • Products stored in Amazon warehouses
  • Multi-channel fulfillment available

FBA cons:

  • Higher fees eat into margins
  • Less control over packaging and inserts
  • Storage fees add up for slow-moving inventory
  • Long-term storage fees punish stale products

Choose FBM (Fulfillment by Merchant) if:

  • You have low margins and need to control costs
  • You sell oversized or heavy items (FBA fees are steep)
  • You want control over the customer experience
  • You have reliable shipping infrastructure
  • You sell custom or made-to-order products

FBM pros:

  • Lower fees
  • Control over packaging and inserts
  • No storage fees
  • Better for oversized items

FBM cons:

  • No Prime badge (usually)
  • You handle all shipping and returns
  • Harder to win the Buy Box
  • Must maintain fast shipping metrics

The hybrid approach

Many successful sellers use both:

  • FBA for best-selling, lightweight products
  • FBM for slow-moving, heavy, or custom items

You can fulfill the same ASIN both ways—Amazon automatically routes orders to the best fulfillment option.

How to create your first Amazon listing

Creating a listing that sells requires understanding Amazon's structure.

Option 1: List against an existing product

If your product already exists in Amazon's catalog (same brand, same UPC):

  1. Search for the product in Seller Central
  2. Click "Sell this product"
  3. Set your price, condition, and quantity
  4. Choose fulfillment method (FBA or FBM)
  5. Submit

You'll share the listing with other sellers. The Buy Box determines who gets sales.

Option 2: Create a new product listing

If your product doesn't exist (private label, unique items):

  1. Go to Catalog → Add Products
  2. Click "I'm adding a product not sold on Amazon"
  3. Select the appropriate category
  4. Enter product details:
    • Product name (title)
    • Brand name
    • Manufacturer
    • UPC/EAN/ISBN (or apply for GTIN exemption)
    • Price
    • Quantity
  5. Add product description and bullet points
  6. Upload images (main image + up to 8 additional)
  7. Add backend keywords
  8. Submit for approval

Title requirements

Amazon has strict title guidelines:

  • Maximum: 200 characters (but 80 is ideal for mobile)
  • Format: Brand + Model + Product Type + Key Features
  • No: ALL CAPS, promotional phrases ("Best Seller"), special characters
  • Include: Size, color, quantity, material where relevant

Good example: "Yeti Rambler 20 oz Tumbler, Stainless Steel, Vacuum Insulated with MagSlider Lid, Navy"

Bad example: "BEST COFFEE MUG EVER!!! Amazing Tumbler FREE SHIPPING Travel Cup"

Use our Amazon Title Optimizer to check your titles.

Bullet points

You get 5 bullet points (1,000 characters each for most categories):

  • Lead with the benefit, then explain the feature
  • Include keywords naturally
  • Cover: materials, dimensions, compatibility, use cases
  • Address common questions and objections
  • Use all 5—they're indexed for search

For bullet point optimization strategies, see our Amazon bullet points guide, or use our Amazon Bullet Generator.

Product images

Amazon image requirements:

  • Main image: Pure white background (RGB 255,255,255), product fills 85%+ of frame
  • Minimum size: 1000 × 1000 pixels (for zoom)
  • Recommended: 2000 × 2000 pixels
  • Additional images: Up to 8 (lifestyle, infographics, size charts)
  • No: Watermarks, text overlays, logos (except on product)

Your main image is your search result thumbnail—it's the most important factor in click-through rate. For detailed image requirements, see our Amazon main image requirements guide.

Backend keywords

You get 250 bytes (not characters) for backend search terms. Use them for:

  • Alternate spellings
  • Synonyms
  • Spanish translations (for US market)
  • Common misspellings
  • Related terms not in your visible content

Don't repeat words already in your title or bullets—Amazon already indexes those.

For backend keyword strategies, see our Amazon backend keywords guide.

Amazon SEO and the Buy Box

How Amazon search works

Amazon's A9 algorithm ranks products based on:

  1. Relevance: Does your listing match the search query?
  2. Performance: Sales velocity, conversion rate, reviews
  3. Price: Competitive pricing within the category
  4. Availability: In-stock products rank higher
  5. Fulfillment: FBA products often rank above FBM

Winning the Buy Box

The Buy Box is the "Add to Cart" button. When multiple sellers offer the same product, only one gets the Buy Box at a time.

Buy Box factors:

  • Price (including shipping)
  • Fulfillment method (FBA preferred)
  • Seller metrics (Order Defect Rate, shipping performance)
  • Time as a seller
  • Inventory availability

To win the Buy Box:

  • Price competitively (not always the lowest, but close)
  • Use FBA when possible
  • Maintain excellent seller metrics
  • Keep products in stock
  • Respond quickly to customer messages

For private label sellers, you own the listing and always have the Buy Box (unless hijackers appear).

How to price your products

Amazon pricing is more competitive than other marketplaces. Here's how to approach it:

Cost-plus pricing

Start with your costs:

Cost type Example
Product cost $8.00
Shipping to Amazon $1.50
Amazon referral fee (15%) $3.75
FBA fee $3.22
Total costs $16.47
+ Target profit (25%) $4.12
Minimum price $20.59

Competitive pricing

Research your competition:

  1. Search for similar products
  2. Note the price range
  3. Check the Buy Box price
  4. Look at review counts and ratings

If competitors with thousands of reviews sell at $19.99, you'll struggle to sell at $24.99 without a clear differentiator.

Repricing strategies

Many sellers use automated repricing tools to:

  • Match or beat the Buy Box price
  • Set minimum and maximum price guardrails
  • Adjust prices by time of day or competition

Start with manual pricing until you understand your margins and market.

Use our Amazon FBA Calculator to model different price points. Compare with other marketplaces using our Platform Comparison Calculator.

How to ship products to Amazon (FBA prep)

If using FBA, you need to send inventory to Amazon's warehouses.

FBA prep requirements

All products must be:

  • Labeled: FNSKU barcode on each unit (or use Amazon's labeling service)
  • Packaged: Poly bagged, bubble wrapped, or boxed as needed
  • Prepped: According to category requirements (suffocation warnings, glass handling, etc.)

FBA Prep Supplies That Save Time

Prepping inventory yourself saves Amazon's labeling fees. These tools make the process fast:

DYMO 4XL Thermal Label Printer — Prints FNSKU labels directly from Seller Central. No ink, no trimming—just peel and stick. View on Amazon →

Poly Bags with Suffocation Warning — Required for many product types. These come pre-printed with the required warning. Check price on Amazon →

PackingSupply Bubble Wrap Roll — Protects fragile items during warehouse handling. 12" wide roll fits most products. View on Amazon →

As an Amazon Associate, I earn from qualifying purchases.


Creating a shipment

  1. Go to Inventory → Manage FBA Inventory
  2. Select products and click "Send/Replenish Inventory"
  3. Choose pack type (individual products or case-packed)
  4. Enter quantities
  5. Print box labels and FNSKU labels
  6. Pack boxes according to Amazon's requirements
  7. Ship via Amazon's partnered carriers or your own

FBA prep services

If you don't want to prep yourself:

  • Amazon's FBA Prep Service ($0.50-$2.00+ per unit)
  • Third-party prep centers
  • Your supplier (for private label)

FBM shipping

If fulfilling yourself:

  • Purchase shipping through Amazon's Buy Shipping for discounts
  • Meet your stated handling time
  • Provide tracking on every order
  • Use standard carriers (USPS, UPS, FedEx)

Shipping Tools for FBM Sellers

Fast, accurate shipping keeps your metrics healthy. These tools pay for themselves quickly:

Accuteck ShipPro Digital Scale — Accurate to 0.1 oz for calculating exact postage. Prevents overpaying and undercharging. Check price on Amazon →

Rollo Thermal Label Printer — Works with Amazon Buy Shipping to print 4x6 labels instantly. Compatible with all major carriers. View on Amazon →

ULINE Shipping Boxes (Multi-Pack) — Professional corrugated boxes in various sizes. Protect products and look professional. Check availability →

As an Amazon Associate, I earn from qualifying purchases.


How to get your first sale

Your first sale on Amazon is harder than subsequent ones. Here's how to get momentum:

Optimize your listing first

Before driving traffic, make sure your listing converts:

  • Professional photos (main + 6-7 additional)
  • Keyword-rich title under 80 characters
  • All 5 bullet points filled with benefits
  • Detailed product description
  • Backend keywords filled (250 bytes)
  • Competitive price
  • A+ Content (if Brand Registered)

Use our Listing Grader to check your optimization. For handling customer feedback, see our Review Response Generator.

Launch strategies

1. Amazon PPC (Pay-Per-Click)

  • Start with Automatic campaigns to discover keywords
  • Budget $10-20/day initially
  • Let it run 2 weeks before optimizing
  • Move winning keywords to Manual campaigns

2. External traffic

  • Drive traffic from social media
  • Influencer partnerships
  • Your own website or email list
  • Amazon Attribution tracks external conversions

3. Promotions and coupons

  • Lightning Deals (Professional sellers only)
  • Coupons (appear on search results)
  • Subscribe & Save
  • Social media promo codes

4. Vine (for new products)

  • Enroll new ASINs in Amazon Vine
  • Amazon sends products to trusted reviewers
  • Costs $200 per parent ASIN
  • Get early reviews legitimately

The review flywheel

Reviews drive sales. Sales drive reviews. Breaking into this cycle is the hardest part.

Legitimate ways to get reviews:

  • Request reviews through Seller Central (automated)
  • Amazon Vine program
  • Excellent products and customer service
  • Product inserts asking for feedback (not reviews—this violates ToS)

Never:

  • Pay for reviews
  • Offer free products for reviews
  • Ask friends/family to review
  • Use review manipulation services

Amazon actively detects and penalizes review manipulation.

Amazon seller policies to know

Amazon is strict. Violating policies can get your listing suppressed or account suspended.

Prohibited activities

  • Review manipulation: Fake reviews, incentivized reviews, review trading
  • Listing manipulation: Keyword stuffing, incorrect categorization, hijacking
  • Inventory violations: Counterfeit products, expired goods, restricted items
  • Communication violations: Marketing in buyer-seller messages, directing to external sites
  • Multiple accounts: Without Amazon's permission

Key metrics to maintain

Amazon tracks your performance. Stay within these thresholds:

Metric Target
Order Defect Rate < 1%
Late Shipment Rate < 4%
Pre-fulfillment Cancel Rate < 2.5%
Valid Tracking Rate > 95%

Poor metrics = lost Buy Box → account warnings → suspension.

Brand Registry

If you own a trademark, register for Amazon Brand Registry:

  • Protects against hijackers and counterfeiters
  • Access to A+ Content (enhanced descriptions)
  • Brand analytics and reporting
  • Sponsored Brands advertising
  • Amazon Stores (your own branded storefront)

Register at brandservices.amazon.com.

FAQ

How much does it cost to start selling on Amazon?

Minimum costs: $0 (Individual account) + your product inventory. Professional accounts cost $39.99/month. Most sellers spend $500-2,000 to get started with inventory, photos, and initial advertising.

How long does it take to make your first sale?

Varies dramatically. Private label products may take weeks to months of setup before launch. Arbitrage or wholesale sellers can make sales within days of listing. Most new sellers make their first sale within 1-4 weeks.

Is Amazon FBA worth it for beginners?

Yes, for most sellers. The Prime badge significantly increases conversion rates, and letting Amazon handle fulfillment lets you focus on sourcing and marketing. The fees are worth it until you have volume to justify your own fulfillment operation.

Can I sell on Amazon without a business license?

Yes, you can start as an individual (sole proprietor). However, as you grow, forming an LLC or corporation provides liability protection and potential tax benefits. Requirements vary by state.

How much do Amazon sellers make?

Income ranges from a few hundred dollars monthly (side hustle) to millions annually (established brands). According to JungleScout's data, about half of Amazon sellers make $1,000-25,000/month in sales, with profit margins typically 10-30%.

What products sell best on Amazon?

Best-selling categories include Home & Kitchen, Toys & Games, Electronics accessories, Beauty, and Books. Look for products with consistent demand, reasonable competition, and healthy margins after Amazon fees.

Do I need a UPC code to sell on Amazon?

Usually, yes. You need a valid UPC, EAN, or ISBN for most categories. You can apply for a GTIN exemption in some cases, particularly for handmade or private label products where you own the brand.

How do I handle returns on Amazon?

FBA: Amazon handles returns automatically and charges you a returns processing fee. FBM: You must accept returns that meet Amazon's policy and process refunds within 2 business days.

Amazon's return policy is buyer-friendly. Factor return rates (typically 5-15% depending on category) into your pricing.

Next steps

You now have the foundation to start selling on Amazon. Here's your action plan:

  1. Calculate your fees — Use our Amazon FBA Calculator to understand your true costs
  2. Set up your account — Create your Seller Central account and complete verification
  3. Source your first product — Start with products you understand and can source reliably
  4. Optimize your listing — Use the Amazon Bullet Generator and Amazon Title Optimizer
  5. Launch and iterate — Start with PPC, gather data, optimize based on results

For a complete breakdown of every fee, see our Amazon FBA fees explained guide. Learn more about optimizing your listing content in our Amazon listing SEO checklist.

Comparing Amazon to other platforms? Check out our Amazon vs Etsy comparison to see which marketplace fits your products best. If you're selling on multiple platforms, our Platform Comparison Calculator helps you compare fees across Amazon, Etsy, and eBay.

Optimize your Amazon product title

Generate compliant, keyword-rich titles within Amazon's character limits.