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Selling on Amazon Guide: How to Start an Amazon Business and Other Important Considerations You Need to Know


Online selling is one of the popular methods used by entrepreneurs to make money online. In today’s current eCommerce landscape, online entrepreneurs have various options in terms of which platform to use for their online selling business.

Most online sellers who wish to break into a larger market prefer to sell products on prominent marketplaces like Amazon. Online sellers find a lucrative avenue for their online business. 

If you want to participate in the growing Amazon marketplace, here is a beginner’s guide and some helpful insights on starting an Amazon business.

Why Should You Be Selling on Amazon?



Before we delve deeper into how you can start a business today, it is best to refresh your understanding of why Amazon remains a popular destination for both sellers and shoppers alike. Here are some of the reasons why online sellers should sell on and its international marketplaces. 

Newbie Friendly

Amazon is a newbie-friendly platform for online sellers. Starting an Amazon business will require low investment. Plus, creating an Amazon selling account is relatively easy. 

You can either start as an Amazon FBA or FBM seller. Depending on your business goal and preference, you can let Amazon handle product fulfillment or hire a third-party service to do it for you. 

Far-Reaching Influence

Needless to say that online sellers tend to start an Amazon business because of the eCommerce site’s established customer base and global dominance. As of the current writing, Amazon has over 300 million customers worldwide, making it an ideal selling platform for online sellers. 

Multiple Business Models

Choosing Amazon as your business platform gives you the freedom to choose a business model to follow. With Amazon, you can choose from private label, retail arbitrage, online arbitrage, wholesale, or handmade as your business model. These business models can easily fit with your business goals, budget, and expertise. 

Guide to Creating an Amazon Selling Account

When starting an Amazon business, the first step is creating an Amazon selling account. Every Amazon seller uses a seller account for product listing, order fulfillment, and receiving payments for purchased items. 

To help you begin your Amazon selling journey and start making money online, here’s an overview of the steps you need to take when creating an Amazon seller account. 

STEP 1: Go to the Amazon seller account sign-up page


Image Source: Amazon


STEP 2: To choose between the two selling plans on Amazon, go to the “Pricing” tab and click “Compare Selling Plans.” You can choose from two options: Professional and Individual selling plans. You may refer to the image below for guidance. 

Image Source: Amazon


Worth noting that the professional selling plan is the ideal choice for sellers intending to sell more than 40 products per month. However, the individual plan will do if you plan to sell on a smaller scale. Here’s an overview of the main difference between the two Amazon selling plans.


Image Source: Amazon


STEP 4: Once you have chosen a selling plan, you will then proceed with the sign-up process to create your Amazon account. Regardless of the selling plan option you will choose, once you click “Sign up for Individual” or “Sign up for Professional,” you will be redirected to a login page as seen below. 


Image Source: Amazon


Once redirected to the login page, click the “Create your Amazon account” button to create your Amazon seller account. 

STEP 5: Once clicked, you will be redirected to another page where you will be asked to input the following information, as seen in the image below.


Image Source: Amazon


After adding the necessary information, you may click “Next” to proceed with the Amazon account creation process. 

Just a pro tip, when assigning passwords for your Amazon seller account, you can use a password generator and freemium password manager to be more digitally secure while simplifying the process of using strong passwords for your Amazon account. 


Image Source: Amazon


In most cases, Amazon will send a One Time Password or OTP to your dedicated email address. Simply input the OTP sent by Amazon and proceed with the Amazon account creation process by clicking the “Create your Amazon account” button. 

STEP 6: After submitting the OTP, you will be redirected to another page wherein Amazon will provide you with the overview of the steps you will have to take and the things required from you to complete the Amazon selling account creation process. 


Image Source: Amazon


STEP 7: Once the “Begin” button is clicked, you will be redirected to another page where you will provide amazon with your business information. Once you have filled in all the information needed, you may proceed to the next step by clicking the “Agree and continue” button. 


Image Source: Amazon


STEP 8: After providing your business information from the previous page, you will then proceed to the next steps. In the succeeding steps, you will need to provide information relevant to the following sections, including the following:

To give you a more detailed guide on how to proceed with Amazon account creation, here is a step-by-step video presentation you can follow:



Important Considerations When Starting an Amazon Business

Starting an Amazon business can be quite demanding, especially for people new to online selling. To be aware of the things that matter most when selling on Amazon, here are some of the essential considerations you should take into account when starting an Amazon business. 


Consumers are drawn to online selling platforms like Amazon because of the various products listed on the website. Hence, you should always take into consideration the products you will be listing on Amazon.

Amazon intends to be all things to all people, which is why more than 350 million products are sold on Amazon. With such a catalog of products, it is a challenge for those who want to start an Amazon business to find a product that will fit Amazon standards and suit the needs & wants of consumers. 

Product research is crucial when it comes to choosing inventory items for your Amazon business. Hence, it would help to familiarize yourself with Amazon product research and the necessary tools to perform such a task. 


Currently, there are two popular options when it comes to Amazon fulfillment. When starting an Amazon business, online sellers may choose between Amazon FBA and Amazon FBM.  

Accordingly, 66% of sellers prefer Fulfillment by Amazon (FBA), around 6% of sellers use Fulfillment by Merchant (FBM), and around 29% of sellers use both for their fulfillment options. 

As an overview, the FBA method means that sellers or the sellers’ suppliers send the products directly to the Amazon Warehouse. Amazon will be the one to store the inventory and ship it directly to the customers. Under the FBA program, customer service will likewise be handled by Amazon. 

In contrast to the FBA method, FBM means that the sellers will list their products on Amazon, and they will take care of the storing, shipping, and customer support. 

The two fulfillment methods have their own pros and cons. However, you can utilize both fulfillment methods depending on the situation.


Another consideration you should look into when starting an Amazon business is the marketplace you will be operating in. Amazon offers more than just the US market for online sellers. You also have the option to expand your business to other Amazon global marketplaces, including but not limited to the following:

Amazon International – America

Amazon International – Europe

Amazon International – Asia-Pacific

Amazon International – Middle East

If you are willing to explore other Amazon marketplaces, you should prepare yourself with the various requirements for you to operate on a particular Amazon marketplace. You should look into the legal, tax, and other relevant requirements when starting an Amazon business on a global scale. 


Starting an Amazon business will require sellers to shell out some cash. The expenses of your Amazon business will largely depend on the following Amazon fees you will need to pay: 

Selling Plan: If you choose the Individual plan, you will pay $0.99 per unit sold, while you will pay $39.99 per month no matter how many units you sell with the Professional program.

Referral Fees: This refers to the fees that Amazon charges sellers for each item sold. The referral fee amount depends on the product category, but most referral fees are between 8% and 15%.

Fulfillment Fees: A fulfillment fee varies depending on whether you are an FBA or FBM seller. For FBA sellers, Amazon has a standard fee depending on the size tier of your product. With FBM, it will likely depend on the rate and your arrangement with your logistic partner.

Other Costs: Other costs may include but are not limited to manufacturing costs, overseas shipping costs (for inventory items outsourced abroad), insurance, and storage fees. 


Another consideration when starting an Amazon business is the pricing. You need to have a reliable pricing strategy to be more competitive in the marketplace. You should create an effective pricing strategy to help you win more Amazon Buy Box and attract more potential buyers to check your listings. 

The majority of high-volume and experienced Amazon sellers utilize Amazon repricing software to help them with price adjustments. An AI repricer, for example, can help automatically adjust listing prices to a competitive level. 

Amazon Buy Box

The Amazon Buy Box is one of the most important considerations when selling on Amazon. Most Amazon sellers aim for their products to appear in the Buy Box, where more than 80% of the sales take place. 

The Amazon Buy Box is not simply awarded to any seller. For your products to be featured on the Buy Box, you should ensure that you are eligible to win the Buy Box. Apart from eligibility, you should also consider these other factors checked by Amazon when awarding the Buy Box, such as the following:

Amazon Seller Tools for Your Amazon Business

Starting an Amazon business also entails looking into the available resources you can use to grow your business. Amazon business-related tasks continue after creating an Amazon seller account; constant optimization and updates are required to succeed in the industry. 

In order to help you grow or expand your business, you need to maximize all the resources available to you. One good example would be utilizing software tools that can help elevate your overall business performance. Here are some of the must-check Amazon seller tools for your business. 

Start Your Amazon Business The Right Way

Amazon is loved by consumers worldwide because of its commitment to operational excellence and customer obsession. If you will be starting an Amazon business, it is expected that you should likewise adhere to such business principles. 

Furthermore, the tips and insights mentioned above can help you with a holistic approach to your Amazon business. By identifying the crucial aspects of the business and utilizing the essential seller tools, starting an Amazon business would be on the path to success.

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