How To Sell On Amazon for Beginners: 2025 Ultimate Guide
- we1677
- Jan 13
- 27 min read
Ready to Start Selling on Amazon?
If you're wondering how to get started as an Amazon seller, you're in the right place!
In this comprehensive guide, we’ll walk you through every step of the process and share expert tips and proven strategies based on over 15 years of experience in e-commerce.
Selling on Amazon remains one of the most effective ways to make money online. With Fulfillment by Amazon (FBA), you can tap into millions of potential customers and let Amazon handle the logistics for you.
But how exactly do you get started, and what does FBA involve?
🕵️♂️ In this 10-part Beginner’s Guide to Selling on Amazon, we’ll cover:
Whether selling on Amazon is still a profitable venture.
An introduction to Amazon FBA and how it works.
Selecting the best business model for your Amazon journey.
Deciding what products to sell on Amazon FBA.
Strategies for finding profitable products.
Setting up your Amazon seller account.
Understanding the costs associated with selling on Amazon.
Listing, selling, and shipping your products efficiently.
How to achieve your first 100 sales.
Let’s dive in and help you start your Amazon selling journey with confidence! 🚀
Part 1: Is Selling on Amazon Still Profitable?
Is Amazon FBA a smart choice in 2025? Without a doubt! Amazon continues to dominate as the world’s largest online retailer and shows no signs of slowing down. In 2023, Amazon reported an impressive revenue of 574 billion USD, far outpacing competitors like eBay and Shopify, which only reached 10 billion USD each. With an annual growth rate of approximately 11%, Amazon’s market presence is unparalleled.
To put it into perspective, Amazon is 57 times larger than either eBay or Shopify! 😮
Moreover, third-party sellers account for over 65% of Amazon’s massive sales, meaning that even a small slice of the market can translate into significant earnings.
“Selling on Amazon offers unparalleled opportunities for online entrepreneurs.”
Why Choose Amazon FBA?
Amazon’s FBA program provides a range of benefits for sellers:
✅ Access to a massive customer base: Amazon’s loyal shoppers are ready to buy.
✅ Straightforward costs: No need to invest heavily in marketing or building your own website.
✅ Hands-off logistics: Amazon handles the picking, packing, and storage of your products.
✅ Lower overheads: Say goodbye to warehouse storage and courier management.
✅ Flexibility: A semi-passive income stream gives you time for vacations, family, and side hustles.
Comparing Amazon to eBay
Having sold on both platforms, Amazon and eBay cater to different seller needs:
Amazon:
Stricter seller guidelines but significantly higher rewards.
Products listed on Amazon often sell 5-10x more than on eBay at the same price.
Perfect for scaling a full-time business with a focus on new, branded, or private-label items.
eBay:
More relaxed selling environment.
Ideal for selling used or niche products.
Lower risk of account suspension compared to Amazon.
While eBay offers a good starting point for casual sellers, Amazon remains the best platform for building a sustainable, full-time online business.
Part 1 Takeaway
For most online sellers, Amazon is still a better option than eBay or Shopify in 2025. Its massive reach, infrastructure, and FBA program make it the most accessible and profitable platform for serious entrepreneurs.
Part 2: Understanding Amazon FBA
What is Amazon FBA, and how does it work?
FBA stands for Fulfillment by Amazon. This program allows you to send your products to Amazon's Fulfillment Centers, where Amazon takes over the heavy lifting.
Amazon handles:
Storage: Your products are stored securely in their warehouses.
Shipping: Orders are picked, packed, and shipped to customers.
Customer Service: They manage inquiries, returns, and refunds.
Alternatively, you can choose FBM (Fulfillment by Merchant), where you manage storage, packing, shipping, and customer service.
Amazon FBA vs. FBM: Which Should You Choose?
For most sellers, especially beginners, Amazon FBA is the superior option. It simplifies operations, reduces workload, and can increase profitability.
Why Choose FBA?
Time-Saving: Focus on growing your business instead of handling logistics.
Cost-Effective: Often cheaper than managing your own fulfillment.
Higher Sales Potential: FBA orders are eligible for Prime benefits, attracting more customers.
Once your inventory is sent to Amazon, your business can operate almost autonomously, freeing up time to source new products and scale your operations.
Key Advantages of Amazon FBA
Prime Benefits for Customers
FBA orders are eligible for Amazon Prime perks, including fast shipping and free returns.
Customers often prefer buying from FBA sellers, leading to higher sales.
Increased Trust and Convenience
For buyers, purchasing from an FBA seller feels the same as buying directly from Amazon.
This reliability translates into more repeat customers.
Multi-Channel Fulfillment (MCF)
You can use your FBA inventory to fulfill orders from other platforms like eBay or your own website, streamlining your operations.
According to Jungle Scout’s 2023 State of the Amazon Seller Report, 82% of sellers used FBA, and revenue from third-party sellers increased by 18%. 😎
Understanding Fulfillment by Merchant (FBM)
With FBM, sellers handle all aspects of order fulfillment themselves, including storage, packing, shipping, and customer service.
Pros of FBM:
🟢 Lower fees compared to FBA.🟢 Greater control over fulfillment processes.
Cons of FBM:
🔴 More time-intensive and requires hands-on management.🔴 Customers may perceive FBM sellers as less reliable than FBA.
Part 2 Takeaway
For most sellers, Amazon FBA is the better choice. It simplifies logistics, increases customer trust, and typically leads to higher sales and profits. While FBM can work for certain niches or smaller sellers, FBA remains the go-to option for building a scalable and efficient Amazon business.
Part 3: Exploring Amazon's Business Models
Which Amazon business model should you choose?
Your choice of business model will determine how and where you source products for sale on Amazon. Carefully weighing the pros and cons of each model is crucial before starting.
Here’s a breakdown of the six primary Amazon FBA business models:
1. Retail Arbitrage (RA)
Retail Arbitrage involves purchasing products from physical retail stores like Walmart and reselling them on Amazon. By using the Amazon Seller App, you can scan items in-store to determine if they’re profitable and eligible for sale.
How It Works: Find products priced lower in-store than their current selling price on Amazon.
Why Beginners Should Start Here: RA requires low upfront costs and is an excellent way to learn Amazon’s systems with minimal risk.
✅ Pros:
Low startup costs.
Easy to get started.
❌ Cons:
Time-consuming to source products.
Difficult to scale as it relies on finding local deals.
🛠 Recommended Tools:Amazon Seller App, BuyBotPro, Keepa, SellerAmp
🎓 Recommended Courses:
Proven Amazon Course
FREE 30-Lesson Amazon FBA Beginners Course
2. Online Arbitrage (OA)
Online Arbitrage is similar to RA but focuses on sourcing products from online retailers instead of physical stores. This method is more scalable and convenient, as it eliminates the need for in-person shopping.
How It Works: Buy discounted items online, have them delivered to your home or a prep center, and then forward them to Amazon.
✅ Pros:
Operate entirely from home.
More scalable than RA.
❌ Cons:
Intense competition.
Requires constant sourcing of new stock.
🛠 Recommended Tools:Tactical Arbitrage, SourceMogul, BuyBotPro, Keepa
🎓 Recommended Courses:
Proven Amazon Course
FREE 30-Lesson Amazon FBA Beginners Course
3. Private Label
Private Label involves creating your own branded products, often sourced from manufacturers on Alibaba or developed uniquely. While this model requires more upfront investment, it offers higher margins and long-term scalability.
How It Works: Import generic products, brand them as your own, and sell them exclusively on Amazon.
✅ Pros:
Higher profit margins.
Brand ownership.
❌ Cons:
High upfront costs.
Time-intensive product development and marketing.
🛠 Recommended Tools:
Helium 10: A robust suite of tools for product research, PPC optimization, and listing management.
Jungle Scout: Ideal for Private Label product research.
🎓 Recommended Courses:
Freedom Ticket
Jungle Scout Academy
Amazing Selling Machine
4. Wholesale
Wholesale involves buying bulk products directly from distributors or manufacturers. This model is ideal for building a scalable business with proven products and established brands.
How It Works: Open accounts with authorized wholesalers, purchase inventory in bulk, and sell it on Amazon.
✅ Pros:
Reliable supply and scalability.
Less competition compared to Private Label.
❌ Cons:
Requires moderate startup capital.
Strict application processes for wholesale accounts.
🛠 Recommended Tools:
Tactical Arbitrage: Analyze wholesale price lists to identify profitable products.
SourceMogul: Similar to Tactical Arbitrage for deal sourcing.
🎓 Recommended Course:
Accelerate Wholesale
5. Dropshipping
Dropshipping is a hands-off model where your supplier ships products directly to your customers. While it requires minimal investment, it is high-risk and often discouraged on Amazon.
✅ Pros:
No need to hold inventory.
❌ Cons:
High risk of account suspension.
Less control over shipping and customer service.
6. Amazon Handmade
Amazon Handmade is a niche platform for artisans selling unique, handcrafted products. While this model has lower competition, it’s limited in scalability due to the time required for crafting.
✅ Pros:
Access to Amazon’s customer base with less competition.
❌ Cons:
Labor-intensive and challenging to scale.
Where Should You Start?
If you’re new to Amazon, begin with Retail or Online Arbitrage to familiarize yourself with the platform. Once comfortable, consider advancing to Private Label or Wholesale to build a more scalable business.
📑 Get More Insights: Download our guide: “24 Proven Selling & Sourcing Strategies to Boost Your Amazon Sales.”
💡 Part 3 Takeaway: Start small with Arbitrage to understand the Amazon FBA process, then expand into Private Label or Wholesale for greater profitability and sustainability.
Part 4: Choosing the Right Products for Amazon FBA
What Should You Sell on Amazon FBA?After deciding between Arbitrage, Private Label, or Dropshipping, the next step is finding the right products to sell as a beginner on Amazon FBA. Selecting suitable items is key to building a successful Amazon business.
What Can New Sellers List on Amazon?Amazon has strict policies regarding the items sold on its FBA platform. Before investing in inventory, ensure you are authorized to sell the products in question.
Amazon requires sellers to offer only authentic goods, so always keep official invoices on hand. These may be requested to verify the authenticity of your inventory.
Categories Open to New SellersHere are some Amazon categories with items that are typically unrestricted for new sellers:
Category | Example Products | Allowed Conditions |
Amazon Device Accessories | Accessories for Amazon devices | New, Used |
Amazon Kindle | Kindle accessories | Used |
Beauty | Skincare, makeup, hair care (some require approval) | New |
Books | Books, calendars, journals | New, Used |
Business Products (B2B) | Products targeting business customers | New, Used |
Beauty Tools & Accessories | Brushes, hair styling tools | New |
Camera & Photo | Cameras, telescopes | New, Used |
Cell Phones | Phones and accessories (UPC required) | New, Used, Unlocked |
Clothing & Accessories | Outerwear, belts, wallets | New |
Electronics Accessories | Audio, video, and computer accessories | New, Used |
Fashion Jewelry | Non-precious jewelry | New |
Grocery & Gourmet Food | Perishable and non-perishable food items | New |
Home & Garden | Kitchenware, decor, furniture | New, Used, Collectible |
Luggage & Travel Accessories | Backpacks, umbrellas | New |
Musical Instruments | Guitars, recording equipment | New, Used, Collectible |
Office Products | Supplies, furniture | New, Used, Collectible |
Outdoors | Sports and outdoor gear | New, Used |
Shoes, Handbags & Sunglasses | Footwear, handbags, sunglasses | New |
Software & Computer Games | Utility software, PC games | New, Used |
Sports | Fitness equipment, team sports gear | New, Used, Collectible |
Tools & Home Improvement | Power tools, plumbing supplies | New, Used |
Toys & Games | Dolls, board games (holiday rules may apply) | New, Collectible |
Video Games & Consoles | Game consoles, accessories | New, Used, Collectible |
Understanding Amazon's Category RestrictionsSome categories or subcategories might appear on both restricted and unrestricted lists due to varying rules. Restrictions depend on factors like your seller account age and performance.
Before selling in any category, check its specific requirements on Amazon Seller Central to avoid compliance issues.
How to Gain Approval for Selling in Restricted Categories on Amazon
If the category you wish to sell in is restricted, you can request approval from Amazon. To do this, you'll need a professional seller account and must provide invoices from authorized suppliers for your products.
Getting Approved – The Process ExplainedGetting approved, also known as "ungating," is the process of obtaining permission to sell in Amazon's restricted categories.
Some brands are also gated, requiring you to contact the brand owners for written approval before listing their products.
Restricted Categories on Amazon USA 🔒Here’s a comprehensive list of the current restricted categories on Amazon USA for 2025:
Category | Example Products | Allowed Conditions |
Alcohol | See detailed restrictions on Seller Central | New |
Animal-Related Products | See detailed restrictions on Seller Central | New |
Automotive & Powersports | See detailed restrictions on Seller Central | New, Used, Collectible |
Baby Products | Topicals, food, diapers, strollers, toys | New |
Beauty Products | Skincare, makeup, hair care, fragrance, tools | New |
Certified Refurbished | Electronics, kitchen appliances, office equipment | See Certified Refurb Guidelines |
Collectible Coins | Government-issued coins, commemorative sets | Collectible |
Cosmetics & Skin/Hair Care | See detailed restrictions on Seller Central | New |
Dietary Supplements | See detailed restrictions on Seller Central | New |
Drugs & Drug Paraphernalia | See detailed restrictions on Seller Central | New |
Electronics | See detailed restrictions on Seller Central | New |
Entertainment Collectibles | Signed photos, limited edition items, original movie posters | Collectible |
Explosives & Weapons | See detailed restrictions on Seller Central | New |
Fine Art | See detailed restrictions on Seller Central | Collectible |
Gambling & Lottery | See detailed restrictions on Seller Central | New |
Grocery & Gourmet Food | See detailed restrictions on Seller Central | New |
Handmade | Handmade or hand-altered products | See Handmade Guidelines |
Hazardous & Dangerous Items | See detailed restrictions on Seller Central | New |
Health & Personal Care | Nutrition, feminine hygiene, dietary supplements | New |
Historical Collectibles | Vintage items tied to historical events or promotional materials | Collectible |
Human Parts & Burial Artifacts | See detailed restrictions on Seller Central | New |
Industrial & Scientific | Lab equipment, industrial materials, electronic components | New |
Jewelry & Precious Gems | See detailed restrictions on Seller Central | New |
Laser Products | See detailed restrictions on Seller Central | New |
Lighting | See detailed restrictions on Seller Central | New |
Lock Picking & Theft Devices | See detailed restrictions on Seller Central | New |
Medical Devices & Accessories | See detailed restrictions on Seller Central | New |
Medication | FDA-approved over-the-counter drugs | New |
Music | CDs, vinyl records, and other sound recordings | New, Used, Collectible |
Offensive Materials | See detailed restrictions on Seller Central | New |
Organic Products | See detailed restrictions on Seller Central | New |
Pesticides | See detailed restrictions on Seller Central | New |
Pet Food | See detailed restrictions on Seller Central | New |
Plants & Seeds | See detailed restrictions on Seller Central | New |
Postage Meters & Stamps | See detailed restrictions on Seller Central | New |
Sex & Sensuality | Products within this category | New |
Sports Collectibles | Trading cards, autographed memorabilia | Collectible |
Subscriptions & Periodicals | Periodicals and subscription products | New |
Surveillance Equipment | See detailed restrictions on Seller Central | New |
Tobacco Products | See detailed restrictions on Seller Central | New |
Topicals | See detailed restrictions on Seller Central | New |
Video, DVD, & Blu-ray | Movies, shows, and media products | New, Used, Collectible |
Watches | All types of watches | New |
Warranties & Service Contracts | See detailed restrictions on Seller Central | New |
Amazon Restricted Categories List for 2025Keep in mind that restrictions and requirements may vary by category and product. Always check Amazon Seller Central for up-to-date details before listing items.
Restricted Products on Amazon USA 🚫Amazon enforces strict limitations on certain products to ensure health, safety, and legal compliance. Below is a list of product types currently restricted from being listed on Amazon:
Alcohol
Animals & Animal Products
Fine Art
Home Decor Art
Automotive & Powersports
Composite Wood Products
Cosmetics & Skincare
CPAP Cleaning Devices
Currency, Coins, and Gift Cards
Dietary Supplements
Drugs & Paraphernalia
Electronics
Explosives, Weapons & Related Items
Export-Controlled Products
Food & Beverages
Gambling & Lottery Items
Hazardous Materials
Human Parts & Burial Artifacts
Jewelry & Precious Gems
Laser Products
Lighting Products
Lock Picking Tools
Medical Devices
Offensive or Controversial Materials
Other Restricted Items
Pest Control & Pesticides
Plants & Seeds
Postage Meters & Stamps
Prohibited Product Claims
Recalled Products
Electronics Recycling
Refrigerants & Ozone-Depleting Substances
Strike-Anywhere Matches
Surveillance Devices
Tobacco & Related Products
Warranties & Service Plans
Upholstered Furniture & Bedding
EPA-Certified Products
Children’s Footwear & Apparel
Automotive Tires & Rims
Top Categories for Amazon SellersIf you’re starting your Amazon FBA journey, these six categories are among the most popular and profitable:
Home & Kitchen
Toys & Games
Pet Supplies
Sports & Outdoors
Cosmetics & Personal Care
Grocery & Food Items
Helpful Resources for Amazon Restricted CategoriesFor more guidance on navigating restricted products and categories, check out these resources:
📝 Comprehensive List of Amazon Gated & Restricted Brands
📝 Step-by-Step Guide to Getting Approved in Restricted Categories
Part 4 SummaryBefore purchasing inventory, confirm that you are authorized to sell the brand or within the specific category. This ensures compliance with Amazon’s policies and avoids potential setbacks.
Part 5: How to Identify Products to Sell on Amazon
How Can You Find the Best Products to Sell on Amazon?The approach to sourcing products for Amazon depends on the business model you’ve chosen. However, there are essential product criteria you should follow to maximize your chances of success.
Key Criteria for Choosing Products to Sell on Amazon
✅ Best Sellers Rank (BSR) under 50,000: Use Amazon’s BSR charts for the US, UK, Canada, and Europe to identify high-performing products.
✅ Profit Margin of at Least 30%: Aim for a margin above 30%, though certain categories like collectibles can yield over 100%.
✅ Profit Per Order Above $10: Products with profits below $5 are risky due to potential price wars.
✅ Small Size Preferred: Focus on compact items to save on shipping and storage costs. Avoid oversized products.
✅ Steer Clear of Gated Brands/Categories: Until you have more experience, avoid restricted brands or categories requiring approval.
✅ Avoid High-Risk Brands: If selling a brand might result in issues like restricted listings or private label disputes, it’s not worth the risk.
✅ Target Product Value of $10–$40: Products under $10 may not yield enough profit after fees, while higher-priced items could limit demand.
✅ Focus on Low Return Rates: Choose products with a high average rating (4 stars or higher) to minimize customer complaints and returns.
✅ Start with Popular Categories: Explore categories like Toys, Home & Kitchen, and Office Supplies.
✅ Competitive Purchase Price: Ensure that even in a worst-case scenario, you can at least break even.
✅ Market Versatility: Products with appeal on other platforms (e.g., eBay) can be an added advantage.
✅ Avoid Seasonal Items: Opt for products with consistent demand throughout the year.
✅ Select Simple Items: Stay away from fragile, complex, or hazardous products like glass or electronics with lithium batteries.
How to Source Products Based on Business Model
🔍 Retail Arbitrage
Open an individual Amazon seller account and download the Amazon Seller app.
Visit stores like Walmart, Target, and Home Depot. Use tools like BuyBotPro or ScoutIQ to scan product barcodes and evaluate profitability.
🔍 Online Arbitrage
Use software like SourceMogul or Tactical Arbitrage to identify profitable items.
Search manually through deal websites, clearance sections, and promotional codes for potential products.
🔍 Private Label
Utilize tools like Helium 10, Jungle Scout, or ZonGuru to research high-demand, low-competition products.
Contact suppliers via platforms like Alibaba or AliExpress to request quotes and samples.
🔍 Wholesale
Set up a business email and company name before reaching out to wholesalers.
Request a price list with barcodes, and use tools like Tactical Arbitrage to scan for profitable items.
Sourcing Private Label Products
Launching a private label product requires more planning, as you’ll be creating a unique product. Key considerations include:
Profitability: Account for all costs, including manufacturing, shipping, Amazon fees, and marketing.
Demand: Evaluate monthly sales of similar products to estimate potential demand.
Competition: Check if the product is too competitive or dominated by sellers with high reviews and low prices.
Amazon’s Involvement: Avoid competing directly with Amazon-branded products.
📝 Additional Resources:
Learn more about sourcing private label products with this guide: "Finding the Best Private Label Products to Sell on Amazon"
Part 5 Summary:As a beginner on Amazon, always evaluate products against these criteria to minimize risks and avoid costly mistakes. By doing so, you’ll set yourself up for long-term success.
Part 6: Setting Up an Amazon Seller Account
Amazon’s top marketplaces by order volume include amazon.com, amazon.co.uk, amazon.ca, and amazon.de. As a new seller, you can choose between two types of accounts: Individual Selling Plan or Professional Selling Plan.
Steps to Open an Amazon Seller Account
Individual Selling Plan
Cost: Free to create, but there’s a $0.99 fee per item sold.
Key Features: Suitable for beginners or those selling fewer than 40 items per month.
Limitations: Less likely to win the Buy Box and lacks access to advanced tools.
Professional Selling Plan
Cost: $39.99 per month, regardless of the number of sales.
Key Features: Lower fees for high-volume sellers and access to additional tools and services.
Recommendation:Start with an Individual Selling Plan to test the waters. If your sales exceed 40 items per month or you’re operating as a registered business, consider upgrading to the Professional plan. Remember, you can upgrade or downgrade your account anytime.
Benefits of a Professional Seller Account
Apply to sell in gated categories.
Access to Amazon advertising tools.
Compete for the Amazon Buy Box.
Utilize bulk data feeds and API integration.
Comparison: Individual vs. Professional Accounts
Feature | Individual ($0.99/item sold) | Professional ($39.99/month) |
Access Seller University and Help Pages | ✔️ | ✔️ |
List products and manage inventory one at a time | ✔️ | ✔️ |
Use tools like the Revenue Calculator and Seller App | ✔️ | ✔️ |
Add multiple users to your account | ✔️ | |
Apply to sell restricted products | ✔️ | |
Create promotions, coupons, and enhanced product pages | ✔️ | |
Bulk listing and inventory management | ✔️ | |
Access programs like Global Selling and Amazon Ads | ✔️ | |
Track sales and use advanced business reports | ✔️ |
Optional Programs for All Sellers
Both account types allow you to use Fulfillment by Amazon (FBA), which helps with inventory storage, shipping, and customer service. However, features like Amazon Ads, Lightning Deals, and enhanced brand protection are exclusive to Professional accounts.
What You’ll Need to Open an Amazon Seller Account
To create your account, you’ll need the following:
A business name, address, and contact details.
A bank account and routing number.
A chargeable credit card (Visa or Mastercard).
A phone number for verification.
Tax identification details (SSN or EIN for U.S.-based sellers).
Pro Tip: When setting up your Seller Central account, consider using a separate email address instead of linking it to your existing Amazon buying account.
Part 6 Summary
If you’re new to Amazon, it’s best to start with an Individual Seller account. Once you’re confident in your sales volume and processes, upgrade to a Professional Seller account to access more features and grow your business effectively.
Part 7: Costs of Selling on Amazon
Startup Costs for Amazon FBAThe initial cost of selling on Amazon varies depending on the business model you choose: Arbitrage, Wholesale, or Private Label. Here’s a breakdown of costs:
💰 Amazon Arbitrage Startup Costs
Amazon Individual Seller Account: $0
Inventory: $150
Optional Costs for Arbitrage:
Arbitrage Course (e.g., Proven Amazon Course): $39/month
Sourcing Software (e.g., Sourcemogul): $57/month
Total Startup Costs for Arbitrage: $150–$700
💰 Amazon Private Label Startup Costs
Amazon Professional Seller Account: $39.99/month
Inventory: $1,000–$3,000
Official UPC Codes: $250+
Shipping: $500
Product Samples: $100–$150
Optional Costs for Private Label:
Product Photography: up to $300
Private Label Course (e.g., Freedom Ticket): $1,000+
Software (e.g., Helium 10 or Jungle Scout): $30/month
Inspection Services: $100–$300
PPC Advertising: $250
Total Startup Costs for Private Label: $1,850–$5,500
💰 Amazon Wholesale Startup Costs
Amazon Professional Seller Account: $39.99/month
Inventory: $1,000
Optional Costs for Wholesale:
Wholesale Course (e.g., Accelerate Wholesale): $1,000+
Sourcing Software (e.g., Sourcemogul): $57/month
Total Startup Costs for Wholesale: $1,200–$2,500
Understanding Amazon Selling Fees
Amazon sellers must account for various fees, which can impact overall profits. Here’s a breakdown:
📦 Referral Fees
A percentage of the final selling price, varying by category. Fees range from 8% to 20%, with a minimum fee in some categories.
Examples of Referral Fees:
Beauty Products: 15% (8% for items priced $10 or less)
Electronics: 8%
Home & Kitchen: 15%
Jewelry: 20% for the first $250, 5% for amounts over $250
Check the “Fee Preview” column in your Seller Central Inventory Management to estimate fees for specific products.
📦 FBA Fulfillment Fees
Fees for picking, packing, and shipping FBA products. These typically range from $1–$4 per order, depending on size and weight.
📦 Amazon Storage Fees
Monthly storage fees depend on the volume of inventory stored.
Standard rate: $0.78 per cubic foot
Holiday season (October–December): Higher rates apply
Example Costs:
A small toy: ~$0.05/month
A larger item like a printer: ~$0.20/month
Additional FBA Services:
Labeling: $0.30/item
Bagging: $0.50–$1.00/item
Bubble Wrap: $0.80/item
Removal or Disposal: $0.25–$1.90/item
Helpful Tools for Cost Calculation
Use these resources to estimate profits:
Amazon Revenue Calculator (US)
Amazon Revenue Calculator (UK)
Part 7 Summary:Amazon Arbitrage has the lowest entry costs, starting at $150, while Private Label can exceed $1,500. Always factor in Amazon fees when determining profitability. Start small, refine your process, and scale as you grow.
Part 8: Listing Products on Amazon
How to Launch Your First Product on AmazonThe best way to understand how Amazon FBA works is to dive in and start selling. Taking action eliminates the overwhelm of overthinking and helps you learn by doing. 🤯
Getting your first product live on Amazon removes much of the mystery and gives you confidence as a seller. Start with a low-cost, popular product to minimize risks. If it sells at a profit, great—but the main goal is learning valuable lessons and overcoming the initial barrier to starting. 💪
Pro Tip: If your items don’t sell or you change your mind, Amazon can return them to you for a small fee. 💡
Key Elements of an Amazon Product Page
Your product page is where customers find essential information about your item. A well-optimized page improves the shopping experience and increases your chances of making a sale.
Key components of a product detail page:
Title: Use under 200 characters and capitalize the first letter of each word.
Images: Upload high-quality images (500×500 or 1,000×1,000 pixels) for better clarity.
Variations: Offer options like colors, sizes, or scents.
Bullet Points: Highlight features and benefits in concise sentences.
Featured Offer (Buy Box): This is where customers click “Buy Now” or add the item to their cart.
Description: Include relevant keywords to enhance search visibility.
How to List Existing Products on Amazon
If using FBA, send your inventory to Amazon’s Fulfillment Centers before listing. Follow these steps to add a product:
Steps to Add a Product to Your Inventory
Add a Product:
Go to the Inventory tab in Seller Central and select “Add a Product.”
Enter the product’s barcode, ASIN, ISBN, or title to find an existing listing.
Enter Product Details:
Input the price, condition, and an internal SKU (any code you create for tracking).
Select “Fulfilled by Amazon” (FBA) or “Fulfilled by Merchant” (FBM).
Choose Fulfillment Method:
If FBA is selected, your product won’t go live until Amazon receives your inventory.
For used items, be honest about the condition to ensure good customer feedback.
When matching an existing listing, you don’t need to create new images or descriptions as these are already provided. 🥳
How to List a New Product
If your product isn’t in Amazon’s catalog or it’s a private label item, you’ll need to create a new listing.
Steps to Create a New Listing:
Choose the Category:Browse Amazon’s categories to find the most suitable one for your product.
Input Product Details:
Title: Use descriptive keywords and highlight benefits.
Brand and Manufacturer: Enter your private label brand name (ensure you own the trademark or have permissions).
Product ID: Purchase a UPC, EAN, or GTIN from GS1 if needed.
Description and Bullet Points: Write detailed descriptions and short, engaging bullet points.
Price: Set a competitive price based on market research.
Add Images:Upload multiple high-quality images (1,000×1,000 pixels) to allow zoom functionality. Include lifestyle images to showcase product use.
Optimize Search Terms:Add relevant backend keywords to improve search visibility without overstuffing.
Select Fulfillment Method:
FBA: Amazon handles storage, shipping, and customer service.
FBM: You manage these processes independently.
Pro Tip: Avoid “stickerless commingled inventory,” where Amazon mixes your stock with others. Poor-quality items from other sellers can lead to bad reviews.
Inventory Management on Amazon
Effective inventory management prevents stockouts and reduces storage costs. Use Amazon’s FBA Inventory Planning tools to monitor:
Sell-through rates
Available stock
Inbound quantity
Unfulfillable units
Inventory age
If you’re facing long-term storage fees, consider these strategies:
Reduce prices to sell excess inventory.
Experiment with marketing tactics.
Have Amazon destroy unsold stock or return it to you.
Part 8 Summary:For beginners, the best way to learn is by doing. Start with a few products, list them, and gain hands-on experience with the process.
Part 9: Shipping to Amazon FBA
How to Send Your Products to Amazon Fulfillment Centers
When you choose Fulfillment by Amazon (FBA) instead of Fulfillment by Merchant (FBM), you must send your products to an Amazon Fulfillment Center. Amazon will handle storing, packing, and shipping your orders once customers purchase them.
What’s the Most Cost-Effective Way to Ship to Amazon FBA?
🟢 Step 1: Create a Shipping Plan
After adding your product to your inventory, create a shipping plan. Specify the quantity of each product you’re sending to Amazon.
🟢 Step 2: Prepare Your Products
Some products require special preparation (e.g., bubble wrapping). You can prepare them yourself or let Amazon handle it for a small fee. For beginners, it’s often easier to let Amazon do the prep work.
🟢 Step 3: Label Your Products
Print FNSKU labels and attach them over the product’s barcode. Alternatively, Amazon can label them for you for a fee, which is recommended for your first shipment.
Amazon FNSKU Barcode
FNSKU (Fulfillment Network Stock Keeping Unit) is a unique identifier that Amazon uses to track your inventory.
📝 Learn more in this guide: Ultimate Guide to Amazon Barcodes: UPC, GTIN, EAN, ASIN, FNSKU
🟢 Step 4: Enter Box Details
Provide Amazon with the total weight and dimensions of your shipment. Amazon charges a minimum shipping fee of about $8, so it’s best to send larger boxes to maximize cost efficiency.
For example:
A box approximately 50cm x 50cm x 40cm weighing under 15kg should cost around $8 to ship.
🟢 Step 5: Pack the Box
Protect your products during transit using sturdy boxes. Seal the box and attach the UPS shipping labels provided by Amazon.
🟢 Step 6: Arrange Shipping
Schedule a UPS pickup or drop off your parcel at a UPS location. Amazon pays UPS directly for shipping and deducts the amount from your seller account balance.
Delivery to Amazon Fulfillment Centers
It typically takes 2–5 days for your inventory to arrive at Amazon’s centers. Once processed, your products will go live on Amazon. This is a good time to double-check your pricing.
Amazon transfers your earnings (minus fees) to your bank account every two weeks.
Pro Tip: Amazon calculates shipping fees based on dimensional weight rather than actual weight. To minimize costs, use fewer, larger boxes that are well-filled. 💡
Preparing Products for Amazon FBA
To maintain customer satisfaction and protect your seller account, ensure all items are in excellent condition.
Check for Damage:
Don’t send damaged items as "new." Return them to the supplier or sell them as "used" on Amazon or another platform like eBay.
Remove Pricing Stickers:
Use a hairdryer or heat gun to soften stickers and carefully peel them off.
Protect Your Items:
Use sturdy boxes and cover any visible barcodes or labels.
Add bubble wrap, cardboard, or paper around your products to protect them from damage during shipping.
Pro Tip: Before sealing the box, take a photo of the contents. This serves as evidence of the condition and quantity of your shipment in case of disputes with Amazon. 💡
Tools for Preparing Amazon Shipments
Essential Tools for US Sellers:
FBA Labels
DYMO LabelWriter 450 Thermal Label Printer
Laser Printer
Heat Gun for removing stickers
Scotty Peelers Sticker Remover
Shipping Scales
Box Resizer
Essential Tools for UK Sellers:
FBA Labels
Laser Printer
Heat Gun
Sticker Remover Kit
Shipping Scales
Bubble Wrap
Part 9 Summary:
Using Fulfillment by Amazon (FBA) is highly recommended, as it simplifies storage and shipping. To save costs, take advantage of Amazon’s partnership with UPS for efficient parcel collection and delivery.
Part 10: Achieving Your First 100 Sales on Amazon
How Can a New Seller Compete on Amazon?
While competitive pricing is a key factor for gaining sales, there are several other strategies you can employ to succeed:
6 Proven Strategies to Boost Your Amazon Sales
Source Products Strategically: Find products at the lowest possible cost to give yourself room to lower prices if competitors do.
Leverage FBA: Fulfillment by Amazon (FBA) provides a significant advantage. FBA sellers often win sales, even with slightly higher prices compared to non-FBA sellers.
Avoid Competing Directly with Amazon: Amazon doesn’t sell every product on its platform, so focus on items they don’t offer to reduce competition.
Win the Buy Box: Even if Amazon sells a product, they often share the Buy Box. By offering a competitive price and maintaining strong seller metrics, you can claim sales.
Target Low-Competition Products: Look for items with fewer than five sellers to reduce direct competition.
Provide Exceptional Service: Focus on excellent service to improve your seller metrics. Over time, this increases your chances of winning the Buy Box.
📝 For more insights, explore our guide: How to Find the Best Products to Sell on Amazon. 👈
Pricing Your Products on Amazon
Understanding Key Pricing Concepts:
Competitive External Price: This is the lowest price offered by major retailers outside Amazon. Your price (including shipping) should match or beat it to remain competitive.
Featured Offer (Buy Box): The main offer on a product page with “Buy Now” and “Add to Cart” buttons. Professional seller accounts with competitive prices are eligible.
Lowest Amazon Price: The lowest price for a product on Amazon. Match or beat this to increase your chances of sales.
Tools for Pricing:Use Amazon’s Automate Pricing tool or third-party repricing software to dynamically adjust your prices based on market conditions.
How to Set Competitive Prices
To win the Featured Offer (Buy Box), price your products competitively. Research similar products and consider all associated costs (e.g., Amazon fees, shipping, and taxes) to maintain profitability.
Helpful Tool: Amazon’s Revenue Calculator can help determine profitable price points.
Profitability, ROI, and Margins
Key Metrics for Pricing:
ROI (Return on Investment): Measures profit as a percentage of costs. A good ROI is over 10%.
Profit Margin: Shows profit as a percentage of revenue. Healthy margins typically range between 10-15%.
After setting your price range, use Amazon’s Automate Pricing tool to adjust prices within your limits, increasing the likelihood of winning the Buy Box.
Why the Amazon Buy Box Matters
The Buy Box (now called the Featured Offer) is crucial for maximizing sales. Studies show the seller with the Buy Box secures approximately 80% of total orders for that product.
How Amazon Decides Who Wins the Buy Box
Amazon uses complex algorithms to determine the Featured Offer, considering factors such as:
Price: Competitive pricing increases your chances.
Fulfillment Method: FBA sellers are prioritized over non-FBA sellers, even with slightly higher prices.
Seller Performance: Good metrics, strong sales history, and adequate stock levels improve your chances.
Experience: Long-term sellers often have an edge.
Example:A seller with six months of successful sales priced their product at $140, while Amazon listed it for $120, and another FBA seller offered it for $130. Despite this, the original seller retained the Buy Box due to their excellent metrics and history.
Buy Box, Featured Sellers, and Other Sellers
Featured Sellers meet the criteria to compete for the Buy Box, but they are not the current winner. Amazon often rotates Featured Sellers, giving each seller a share of the Buy Box throughout the day. This means all Featured Sellers get turns being the main seller and receiving orders during their allocated time.
If your offer does not meet Buy Box requirements, you’ll be categorized as one of the “Other Sellers.” Customers must click on a separate page to view your offer, which significantly reduces the chances of making a sale.
If no sellers meet the Buy Box criteria due to high pricing or poor seller performance, Amazon will move all offers to the "Other Sellers" page.
📝 Learn more in our guide: How to Win the Amazon Buy Box: Ultimate Guide.
Optimizing and Promoting Your Products on Amazon
To increase sales and grow your Amazon business, focus on optimizing your product listings. Here are three essential strategies to help:
1. Optimize Keywords
Keyword optimization is critical for improving product visibility. Use tools like Helium 10 Magnet or Jungle Scout Keyword Scout to find high-volume, relevant keywords.
Best Practices for Keyword Placement:
Product Title:
Follow this format: Brand + Product Name + Model/Size + Style/Color + Pack Count.
Keep it under 200 characters, and include 1-2 primary keywords.
Bullet Points and Descriptions:
Highlight key features and benefits while incorporating secondary keywords.
Provide clear, concise information (e.g., size, material, quantity).
Limit bullet points to 200 characters each and descriptions to 2,000 characters total.
Backend Keywords:
Use Amazon’s auto-suggest tool to find hidden keywords.
Avoid repeating keywords and fill all available space with relevant terms.
Pro Tip: For brand-registered sellers, consider using A+ Content to enhance your product page with additional visuals and details.
2. Optimize Images
High-quality images play a crucial role in attracting customers and driving conversions.
Amazon Image Requirements:
The main image must feature the product on a plain white background.
Images should accurately represent the product for sale.
Minimum resolution for the main image is 1,000 x 1,000 pixels to enable zoom.
A listing can include up to 9 images.
Avoid including Amazon logos, trademarks, or promotional badges.
Tips for Better Images:
Use clear, well-lit, high-resolution images.
Show the product from multiple angles and include close-ups of unique features.
Add lifestyle shots showing the product in use.
Ensure images follow Amazon’s size and format guidelines (JPEG recommended).
Pro Tip: Rename image files with keywords to boost SEO visibility.
3. Optimize Ads
Amazon Ads are an effective way to stand out in a competitive marketplace.
Types of Amazon Ads:
Sponsored Products: Ads for individual products displayed on search results and product detail pages.
Sponsored Brands: Showcase your logo and up to three products.
Amazon Stores: Custom multi-page shopping destinations for your brand.
Custom Amazon Ads: Tailored campaigns developed by Amazon Ads account managers.
Keys to Successful Amazon Ads:
Keyword Research: Understand how customers search for your products.
Ad Grouping: Group similar products for better algorithm performance.
Budget and Bidding: Start with small, competitive budgets and adjust based on performance.
Optimization: Continuously monitor and improve ad campaigns.
Getting Started:For beginners, start with Sponsored Products:
Set a small daily budget (e.g., $5–$10).
Use pay-per-click (PPC) to control costs.
Target relevant keywords.
Analyze performance data and refine your strategy over time.
Avoid These Common Mistakes:
Poor keyword selection.
Constantly changing budgets.
Failing to categorize campaigns properly.
Part 10 Summary
Winning the Buy Box is critical for success on Amazon, and using FBA significantly improves your chances. For private label sellers, optimizing product listings with strong keywords, high-quality images, and effective advertising can make a big difference in achieving higher sales.
Where to Begin: A Quick Start Guide for Selling on Amazon FBA
If you’re ready to turn your Amazon FBA dreams into reality, the key is to start now. Success on Amazon requires action, dedication, and effort, and thousands of sellers have built full-time incomes by doing just that.
Step 1: Take Action Today
Start by researching your first products and exploring the best tools to help streamline your business:
📝 The 28 Best Amazon Seller Tools for FBA📝 How to Find the Best Products to Sell on Amazon
Step 2: Consider an Amazon Course
Many successful sellers jump-started their FBA journey with comprehensive Amazon courses. These top-rated options are popular among beginners:
Freedom Ticket 🏆
Amazing Selling Machine
Accelerate Wholesale
Jungle Scout Academy
Proven Amazon Course
📝 Check out the 12 Best Amazon FBA Courses for 2025
Courses like these have helped thousands of sellers launch and grow profitable businesses on Amazon.
Step 3: Join the Community
Need guidance or motivation? Join an Amazon seller community or group, like our Facebook group, where you can ask questions and share experiences with other sellers.
FAQs: Common Questions About Selling on Amazon
Q: Is selling on Amazon profitable?A: Yes, despite growing competition. A recent study shows 30% of sellers report lifetime profits exceeding $50,000, and 58% of sellers were profitable within a year of starting.
Q: How much does it cost to sell on Amazon?A: Setting up an Individual Seller Plan is free but comes with fees for each sale. A Professional Seller Plan costs $39.99/month and offers benefits like advertising tools and category ungating. Additional costs may include inventory, shipping, and optional tools.
Q: How long does it take to start earning money?A: According to Jungle Scout’s 2024 study, 74% of sellers launched their business within six months, and 52% reported monthly sales exceeding $1,000.
Q: What products can I sell?A: Amazon allows the sale of various new and used products, but some items—like alcohol, currency, weapons, and human body parts—are prohibited.
Q: Can I resell items on Amazon?A: Yes, retail and online arbitrage are allowed, provided the products comply with Amazon’s Marketplace policies and are not counterfeit or restricted.
Q: Can I sell without buying inventory?A: Yes, with models like dropshipping, Amazon Merch on Demand, or Handmade. However, dropshipping is generally discouraged due to potential risks.
Q: Which selling plan should I choose?A: Beginners selling fewer than 40 items/month can start with the Individual Plan. Upgrade to the Professional Plan ($39.99/month) as soon as possible to access the Buy Box and other tools that significantly boost sales.
Q: What are common mistakes to avoid?A: Mistakes include:
Poor product selection
Miscalculating profits by ignoring fees
Neglecting customer service
Listing unauthorized products
Q: Do I need to register a business to sell on Amazon?A: No, but it’s recommended. While you can start as a sole proprietor, forming an LLC provides personal liability protection and tax benefits.
Q: Can I sell on Amazon.com if I’m not in the U.S.?A: Yes. To sell on Amazon.com from abroad, you’ll need an international credit card, a U.S.-based bank account (or a third-party payment service), and compliance with U.S. tax regulations (e.g., obtaining an EIN or ITIN if required).
Q: What is Amazon’s A9 algorithm?A: A9 is Amazon’s search algorithm that ranks products based on factors like relevance, sales history, pricing, and customer reviews.
Final Thoughts: Take the First Step
Getting started is the most important step. With the right tools, guidance, and support, you can build a successful Amazon FBA business.
Good luck, stay motivated, and happy selling! 🚀– James 🙂
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