Amazon is the biggest online marketplace in many countries, with hundreds of millions of shoppers ready to buy. Selling there lets you tap into that traffic without building your own audience from scratch. But Amazon also has fees, rules and fierce competition. This beginner’s guide explains how to sell on Amazon step by step, which business model to choose, how fees work and how to make your first sales without costly mistakes.
Step 1: Choose your seller plan
| Plan | Cost | Best for |
|---|---|---|
| Individual | Per-item fee on each sale, no monthly fee | Selling fewer than about 40 items a month, testing |
| Professional | Monthly subscription, no per-item fee | Selling more than about 40 items a month, using ads and advanced tools |
Check Amazon’s current fee pages for exact amounts in your country. You can start with Individual and upgrade later.
Step 2: Choose a business model
| Model | How it works | Startup cost | Difficulty |
|---|---|---|---|
| Retail arbitrage | Buy discounted products in stores and resell on Amazon | Low | Low to medium |
| Online arbitrage | Buy discounted products online and resell | Low | Medium |
| Wholesale | Buy branded products in bulk from distributors | Medium to high | Medium |
| Private label | Create your own brand, often manufactured overseas | High | High |
| Handmade | Sell your own handmade items through Amazon Handmade | Low | Medium |
| Books and used items | Sell used books, media and items you own | Very low | Low |
| Print on demand | Sell custom designs printed when ordered | Low | Low to medium |
Many beginners start with used books, retail arbitrage or online arbitrage to learn the system with little risk, then move to wholesale or private label.
Step 3: Create your seller account
You will need:
- A business email and phone number
- A government ID or passport
- A credit card for fees
- A bank account for payouts
- Tax information
- Business details if you have a company
Amazon verifies your identity, sometimes with a video call. Make sure all information matches exactly across documents to avoid delays.
Step 4: Find products to sell
Good products usually have:
- Steady demand all year, not just a short trend
- Reasonable competition, not dominated by Amazon itself or huge brands
- A selling price that leaves profit after fees, often $20 to $70 for beginners
- Small, light size to reduce shipping and storage fees
- No restrictions, patents or safety risks
Use Amazon’s best seller lists, the Amazon Seller app to scan items and check profitability, and product research tools to estimate sales.
Avoid as a beginner: fragile items, electronics with high return rates, restricted categories, topicals and supplements with heavy regulation, and anything using another brand’s trademark without permission.
Step 5: Choose FBA or FBM
| Option | What it means | Pros | Cons |
|---|---|---|---|
| FBA (Fulfilled by Amazon) | You send inventory to Amazon warehouses, Amazon ships and handles returns | Prime badge, more sales, less work | Fulfillment and storage fees |
| FBM (Fulfilled by Merchant) | You store and ship orders yourself | Lower fees, more control | More work, harder to compete on speed |
Most sellers use FBA because Prime eligibility boosts conversion.
Frequently asked questions
How much money do I need to start selling on Amazon?
Retail arbitrage can start with a few hundred dollars. Private label usually needs a few thousand.
Is selling on Amazon still profitable?
Yes for sellers who choose products carefully and control costs, but margins can be thin.
Step 6: Create a listing that sells
If you sell an existing product, you add an offer to its existing listing. For a new product or private label brand, you create a new listing. A strong listing includes:
| Listing element | Tips |
|---|---|
| Title | Include brand, product type, key features, size or quantity, using natural keywords |
| Images | Seven or more high quality images on a white main background, plus lifestyle and infographic images |
| Bullet points | Five clear benefits, not just features |
| Description or A+ Content | Tell the story and answer common questions, A+ Content requires brand registry |
| Backend keywords | Add relevant search terms not already used |
| Price | Competitive, but with healthy margins |
| Reviews | Earned through great products and Amazon’s official review programs |
Never offer incentives for positive reviews or ask friends to post fake reviews, because Amazon can suspend your account.
Step 7: Understand Amazon fees
| Fee | What it covers |
|---|---|
| Referral fee | A percentage of each sale, commonly around 8 to 15 percent depending on category |
| Subscription or per-item fee | Your seller plan cost |
| FBA fulfillment fee | Picking, packing, shipping and customer service per unit |
| Monthly storage fee | Space your inventory uses in Amazon warehouses, higher in peak season |
| Aged inventory surcharges | Extra fees for products stored too long |
| Advertising | Sponsored Products and other ads, optional but common |
| Returns processing | Fees for some returned items |
Use Amazon’s revenue calculator before buying inventory. A product that sells for $25 might leave only a few dollars of profit after all fees and product costs.
Step 8: Get your first sales
- Price competitively at launch to gain momentum.
- Use Sponsored Products ads with a small daily budget and track your advertising cost of sales.
- Enroll in Amazon Vine if you have brand registry, which can provide early reviews from trusted reviewers.
- Drive outside traffic from social media, email lists or a blog.
- Keep stock available, because running out of stock hurts your ranking.
Brand registry and protecting your brand
If you build your own brand, register a trademark and enroll in Amazon Brand Registry. It gives you more control over listings, access to A+ Content, brand stores, Vine and analytics, and helps you report counterfeiters.
Common beginner mistakes
- Ignoring fees. Many beginners only compare product cost with selling price.
- Buying too much inventory first. Start with small orders to test demand.
- Selling restricted or counterfeit items. This can lead to suspension.
- Poor photos and listings. Shoppers judge products by images.
- Not tracking account health. Late shipments, cancellations and complaints can hurt your account.
- Overspending on ads. Set budgets and review results weekly.
Example profit calculation
| Item | Amount |
|---|---|
| Selling price | $29.99 |
| Product cost including shipping to Amazon | $8.00 |
| Referral fee (about 15 percent) | $4.50 |
| FBA fulfillment fee (small standard item) | about $4.00 |
| Storage and other fees per unit | about $0.50 |
| Advertising cost per unit | about $3.00 |
| Estimated profit per unit | about $9.99 |
Actual fees depend on size, weight, category and season, so always run your own numbers.
Taxes and legal basics
Amazon reports seller income to tax authorities in many countries, so keep good records. You may need to register a business, collect sales tax or VAT and get product liability insurance once you reach certain sales levels. Forming an LLC can separate business and personal finances; see how to start an LLC for free. For income tax basics, read how to file taxes as a freelancer.
Real examples
The book flipper. Maria started by selling used textbooks from her own shelves and library sales. She learned the FBA process with almost no risk before moving to online arbitrage.
The arbitrage seller. James scanned clearance items at big box stores with the Amazon Seller app. He only bought products with at least $5 profit and fast sales, growing to a steady side income in six months.
The private label lesson. Noor ordered 1,000 units of a yoga product without testing. Sales were slow and storage fees piled up. On her next product she ordered 200 units first and only reordered after strong sales.
Your 60-day Amazon starter plan
| Timeframe | Goal | Actions |
|---|---|---|
| Week 1 | Setup | Choose plan, gather documents, create and verify seller account |
| Week 2 | Learn | Study fees, policies, category restrictions and Seller University videos |
| Weeks 3 to 4 | Source | Find 10 to 20 test products through books, arbitrage or small wholesale orders |
| Weeks 5 to 6 | List | Create offers or listings, ship to FBA or prepare FBM fulfillment |
| Weeks 7 to 8 | Sell and review | Run small ads, track profit per product, reorder winners and drop losers |
Is Amazon right for you?
Amazon suits people who enjoy numbers, research and systems. It rewards careful product selection, tight cost control and excellent customer experience. If you prefer creative branding and direct customer relationships, combine Amazon with your own store or social media. Many successful sellers use Amazon for volume while building a brand elsewhere for long-term stability, so a policy change or account issue on one platform does not wipe out the whole business.
Keep your account healthy
Check the Account Health dashboard weekly. Ship FBM orders on time, respond to buyer messages within 24 hours, keep cancellation rates low and fix any policy warnings quickly. A healthy account keeps your listings visible and protects the business you are building from sudden suspensions.
The bottom line
To sell on Amazon as a beginner, choose a seller plan, pick a business model, research profitable products, create clear listings and decide between FBA and FBM. Start small, learn the fees and scale what works. For lower-cost options, see how to start a dropshipping business with no money and best side hustles for 2027.