How to Become a Successful Amazon Seller

In short: To become an Amazon seller, you create an account in Amazon Seller Central and choose the Individual or Professional plan. Then you list your products and pick a fulfillment method: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). The Professional plan costs $39.99 a month.

Do you want to start your own business and tap into ecommerce? Becoming an Amazon seller could be your ticket to success. Amazon has millions of customers worldwide, so it gives you a huge platform to reach buyers. This guide takes you step by step through becoming an Amazon seller, so you can start selling online today. You can also read 7 Keys to a Successful Multichannel Business.

What is an Amazon Seller Central account?

An Amazon seller account lets you list and sell products on Amazon's vast marketplace. There are two types of seller account: an individual account and a professional account. An individual seller account is ideal for beginners and people who plan to sell just a few items. A professional seller account suits people who want to sell in bulk and use extra tools and features.

How do you create an Amazon seller account?

You create an Amazon seller account in several steps. Here's a general outline of the process:

• Preparation: Before you start, get the information and documents you need ready. This includes your business information, tax identification number, bank account details, and product details.
• Sign up: Visit the Amazon Seller Central website and click the 'Register now' button. You'll need to give your email address and create a password.
• Choose account type: Amazon offers two main account types: Individual and Professional. Choose the one that suits your needs.
• Individual account: This suits people who plan to sell a limited number of items. There's a per-item fee on top of referral fees.
• Professional account: This is built for high-volume sellers. You pay a monthly subscription fee but no per-item fees.
• Business information: Give your business name, address, and contact details. You might need a valid credit card to verify your identity.
• Product category selection: Select the product categories you plan to sell in. Categories can have different rules and fees, so choose the most relevant ones.
• Product details: Give information about the products you plan to sell. This includes product names, descriptions, and relevant images.
• Shipping settings: Set up your shipping options. You can use Amazon's fulfillment service (Fulfillment by Amazon) or handle shipping yourself (Merchant Fulfillment).
• Bank account setup: Give your bank account details so Amazon can pay you.
• Tax information: Depending on where you are and Amazon's rules, you might need to give tax details. This could include your VAT identification number and other relevant details.
• Verify identity: Amazon might ask for extra identity checks. For example, you may need to confirm your phone number by SMS or send more documents.
• Agree to terms: Read and agree to Amazon's terms of service and seller agreement.
• Confirmation and access: When you've finished all the steps, Amazon reviews your information. This can take a little time. Once approved, you can use your Amazon Seller Central dashboard.

Which Amazon selling plan should you choose?

The right Amazon selling plan depends on your business goals, how many products you plan to sell, and your budget. Amazon offers two main selling plans for individuals and businesses: the Individual Selling Plan and the Professional Selling Plan. Here's how to choose the right one for you:

Individual seller account

Suitable for: You plan to sell only a few items per month.

Monthly fee: There's no monthly subscription fee for this plan.

Per-item fee: You pay a fee for each item you sell on Amazon. You also pay referral fees and other applicable fees.

Features: This plan suits casual or occasional sellers. You won't get the advanced selling tools, reports, and features that Professional plan sellers get.

Professional seller account

Suitable for: You plan to sell more than 40 items per month, or you want advanced selling features and tools.

Monthly fee: There's a monthly subscription fee of $39.99.

Per-item fee: You don't pay per-item fees on single sales. But you still pay referral fees and other applicable fees.

Features: This plan gives you more tools to manage and grow your business. These include bulk listing and inventory tools, custom shipping rates, promotional tools, and more.

What selling strategy do you need on Amazon?

A good Amazon selling strategy covers what you sell and how you source it. Amazon has a massive customer base and an efficient logistics network, so you can reach a global audience with relative ease. But success on Amazon doesn't come just from listing your products. You need a well-thought-out selling strategy to make sales. So, before you start, decide what that strategy will be:

Decide what to sell

Choosing the right products is the foundation of your Amazon business. To make good decisions, consider these factors:

Market research: Research carefully to find trending, in-demand products. Tools like Amazon's Best Sellers Rank, Google Trends, and industry reports can give you useful insights.

Niche selection: It often pays to focus on a niche market. A specific product category lets you serve a loyal audience and become an authority in that space.

Competition analysis: Look at your likely competitors. Are there established sellers with high ratings? Is the market saturated? Checking the competition helps you find gaps to fill or unique selling points to offer.

Profit margin: Work out the likely profit margins for your chosen products. Include manufacturing costs, shipping, Amazon fees, and other costs so you can stay profitable.

Product differentiation: Think about how your products can stand out. You can use better quality, unique features, branding, or bundling. Standing out attracts customers and reduces price-based competition.

Source your products

Once you've chosen your products, the next key step is to source them reliably. Here's what to keep in mind:

Supplier research: Whether you make your own products or buy from suppliers, research is key. Check the reputation, reliability, and quality of possible suppliers. Use platforms like Alibaba, Thomasnet, or trade shows to find good partners.

Quality control: Make sure the products you source are high quality. A few bad reviews from a poor product can seriously hurt your credibility and sales.

Order fulfillment: Decide whether you'll use Amazon's fulfillment service (Fulfillment by Amazon, or FBA) or ship orders yourself (Fulfillment by Merchant, or FBM). Each option has pros and cons, so consider your business's size and logistics.

Shipping and logistics: Plan how your products get to Amazon's fulfillment centers (with FBA) or to customers (with FBM). This means choosing the right shipping methods, handling customs for international shipments, and cutting transit times.

Inventory management: You need enough stock to meet demand without holding too much. Running out of stock means missed sales, while extra stock ties up cash.

Which Amazon fulfillment method should you use?

Amazon offers two main fulfillment methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Your choice is a key decision. It can affect how efficiently you run, how happy your customers are, and your overall success.

Fulfillment by Amazon (FBA)

With Fulfillment by Amazon (FBA), you send your products to Amazon's fulfillment centers. Amazon then stores, packs, and ships the items to customers for you.

Pros:

• Prime eligibility: FBA products are eligible for Amazon Prime. The fast, free shipping can attract more customers.
• Customer trust: Amazon's well-known customer service and efficient shipping can build trust with customers.
• Scalability: Amazon handles storage, packing, and shipping, so you can focus on growing your business.
• Multi-channel fulfillment: You can use FBA to fulfill orders from other sales channels, like your website.
• Global reach: FBA offers international shipping options, which widens your customer base.

Cons:

• Fees: FBA charges fees for storage, order fulfillment, and other services.
• Less control: You have little control over packing and shipping. This could affect your branding and customer experience.
• Long-term storage fees: If your products don't sell quickly, you might pay extra fees.

Fulfillment by Merchant (FBM)

With Fulfillment by Merchant (FBM), you fulfill orders from your own stock using the shipping methods you prefer. You keep control of the whole fulfillment process.

Pros:

• Cost control: FBM often has lower fulfillment fees than FBA. This makes it cost-effective for low-volume or large items.
• Shipping control: You have more control over packaging, branding, and shipping methods.
• Inventory control: You manage your own stock and avoid storage fees.

Cons:

• Lack of Prime eligibility: FBM products aren't automatically Prime eligible. This could affect visibility and customer trust.
• Shipping responsibility: You're responsible for fast, accurate shipping, which can be hard in peak seasons.
• Limited reach: FBM might not offer the same international shipping options as FBA.

How can the Amazon Seller App help you?

The Amazon Seller App lets you manage your Amazon business on the go. Download it to stay connected with your business 24/7.

With the Amazon Seller App, you can track your sales in real time. It shows clear analytics and sales data. This helps you spot trends in your business and make good decisions, wherever you are. We cover this in more detail in The 11 Best Amazon Seller Tools for Marketplace Success.

The app also makes it easy to talk with customers. You can answer questions and feedback quickly. This raises customer satisfaction and loyalty, which builds brand credibility and repeat business.

Another benefit of the Amazon Seller App is instant updates to your product listings. You can adjust prices, update product descriptions, or manage stock levels. This keeps your information accurate and up to date with ease.

How do you add products on Amazon?

To add products on Amazon successfully, create appealing listings for products customers actually want. Here are a few things to consider when you choose your products and build your listings:

How to find products to sell on Amazon

Niche research

Look for niches with strong demand but less competition. Start with your interests, passions, and areas of expertise. Research possible niches using Amazon's search bar. Read customer reviews to understand their pain points and preferences.

Trending products

Search for products that are popular right now or seeing a surge in demand. Watch seasonal trends, upcoming holidays, and new technologies. Follow social media, online forums, and news sources to spot products gaining traction. Check Amazon's 'Best Sellers' and 'Movers & Shakers' sections to see what's popular now.

Product listing details

High-quality photos

Your product photos can strongly affect a buyer's decision. Include clear images of your items from several angles that show their features and details. Clear, well-lit images build trust and help customers picture the product before they buy.

Detailed descriptions

Write accurate, compelling product descriptions. Highlight the product's key features, size, materials, and any unique selling points. Be brief but thorough, so customers have all the facts they need to choose. Answer likely customer questions and stress the benefits of your product.

Pricing

Set competitive prices based on market research. Keep in mind production costs, shipping fees, and Amazon's referral fees. Prices that are too high can put buyers off, while prices that are too low can make them doubt your product's quality.

Keywords

Good keywords help buyers find your product on Amazon's vast marketplace. Research relevant, high-traffic terms for your product. Add them to your titles and descriptions to show up more in search results. Related reading: Maximizing Amazon Prime Day Sales: Tips for Sellers.

Attracting customers

Once your products are listed, focus on bringing customers to your store:

Provide fast shipping

Customers value quick delivery. If you use FBA, Amazon handles this for you. If you use FBM, make sure your shipping process is efficient.

Advertise your offers

Use Amazon's advertising options to make your products more visible. 'Sponsored Products' and 'Sponsored Brands' can help you reach new customers.

Set competitive prices

Research your competitors' prices and adjust yours to match. Competitive prices can attract more buyers.

Get customer reviews

Positive reviews build trust and credibility. Give excellent customer service and ask buyers to leave reviews.

How do you build a strong brand on Amazon?

You build a strong brand on Amazon with a clear identity, great service, and brand protection. Once everything else is in place, focus on your brand to stand out from other Amazon sellers. Create a strong brand identity with a compelling logo, professional packaging, and the same messaging across all your listings.

Encourage positive customer reviews and give excellent customer service to build trust and loyalty. Consider registering your brand with Amazon's Brand Registry to get extra benefits and protection.

Conclusion

Becoming an Amazon seller is an exciting journey with big opportunities. Follow this guide and you'll be ready to handle the process, make good decisions, and build a successful online business.

Remember, patience and persistence are key as you build a strong presence among Amazon's many competing sellers.

Do you need help with your VAT compliance? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers.

How Taxually handles this

Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.

Related guides

• Amazon VAT - Everything Amazon Sellers Need to Know
• ViDA Single VAT Registration 2028: What Changes for Amazon FBA
• What Is Amazon FBA and How Does It Work?