Opportunities to establish an online store by selling on Amazon expand as the business expands.
Low product prices, free or low delivery, and convenience were the main reasons that 63% of consumers chose Amazon over physical stores for their shopping searches in 2022. At the end of the year, 67% of consumers chose to buy holiday gifts on Amazon, and more than half of consumers shop on Amazon once a week or more.
These patterns suggest that 2022 and 2023 will be very prosperous years for ecommerce business owners. However, you must first complete the Amazon seller registration procedure if you want to benefit from the tremendous potential that Amazon brings.
We'll guide you through the new procedure to make sure your account is verified so you can build a profitable Amazon business.
How to start an Amazon business
The nice thing about Amazon is that there are several ways to start an Amazon business. There are several ways to succeed on the platform, ranging from the business model you choose to the products you offer.
Regardless of the kind of business model and the product you choose, there are still some steps that must be taken to launch on Amazon.
1. First, start by deciding which business model you want to use
- Private Label: Private labeling is the process by which a retailer renames or rebrands an item that is already produced under its own brand or label.
- Wholesale: The activity of buying low-cost or discounted goods in bulk to resell as individual items in a retail setting is known as wholesaling.
- Online and/or Retail Arbitrage: Arbitrage is a strategy for locating cheap or discounted goods at retail stores or on ecommerce websites to resell them online.
- Dropshipping: When an Amazon seller switches to the dropshipping business model, they send their customers' purchases straight to the supplier or manufacturer rather than maintaining their own product inventory.
- Handmade: People who make their own products (“by hand”) and sell them on Amazon are known as “handmade vendors.” Examples include jewelry, clothing, house furnishings, and many more.
2. After you’ve settled on a business model, it’s time to decide which fulfillment method you’ll use.
Both approaches have advantages and disadvantages, so carefully consider both to decide which would be most beneficial for your company. However, you are not required to choose one over the other. Both FBM and FBA allow you to fulfill orders.
3. Next, consider the product(s) you’re going to sell
If you already have a product, you could be sufficient to go, but you should still complete this step to validate that there will be enough demand for your product on Amazon. Use a tool like Jungle Scout to help you locate products to sell that are in great demand yet have little competition.
4. Once you’ve found a product, apply to become an Amazon seller
The next section contains further information on how to finish the Amazon seller registration process.
5. Then, when Amazon has verified your information and your application has been approved, start sourcing your product(s)
If you've decided to sell private labels, you may use Alibaba's or Jungle Scout's Supplier Database to locate a manufacturer to make your product.
6. Finally, create your product listing
And once you create your listing, you can grow your Amazon sales from there!
How to create a seller account on Amazon
Once you've decided what you want to sell on Amazon, you'll need to complete the straightforward Amazon seller registration process.
1. Go to https://services.amazon.com
2. Click on “Learn more”
Then click “Compare selling plans” under the “Pricing” tab. This will take you to a comparison page where you can view the differences between a professional seller account and an individual account.
Note: You will be sent right away to the professional seller registration page if you click the orange “Sign up” button. The “See price” option, on the other hand, enables you to choose which registration you want by outlining the distinctions between individual and professional accounts.
3. Choose between an individual or professional seller account
You have two choices when it comes to Amazon's seller plans: professional and individual.
It is preferable to sign up as a “professional” if you plan to sell more than 40 items each month. This strategy will enable you to save money even if you just sell as a hobby and don't consider yourself to be a professional.
Choose the individual plan, however, if you want to sell on a smaller scale (i.e., fewer than 40 units per month).
However, bear in mind that if you choose the individual plan, your products won't be eligible for the Buy Box, and you won't be able to market your products on Amazon.
4. Enter your email and select “Create a New Account”
You will be prompted to enter your email address and a password for your seller account in the following window after selecting the seller plan that is right for you.
When you’re done, click the “Next” button.
You will then be sent to a different screen that requests your approval for the notification that was sent to the email address you supplied on the first screen. This is how Amazon is confirming the email you provided.
Keep an eye out for emails from Amazon, and make sure you click the link in the email to approve the notification. Once you approve your approval, you'll be brought to the following screen:
5. Choose your “Business location” and “Business type”
Sharing the following data is the next step in the Amazon seller registration process:
- Your business location: This is the nation where your business is situated. Considering that Amazon will be verifying information, everything must be precise (see step 10).
- Your business type: The following choices are available for your business entity (the majority are classified as “privately owned”):
- State-owned business
- Publicly-owned business
- Privately-owned business
- None, I am an individual
Select “None; I am an individual” if you haven't yet formed a business. By choosing this, Amazon will request your full name in the following step.
- Your full name: Make sure you enter your first, middle, and last name.
Then, click the “Agree and continue” button.
6. Enter your personal information
You will next be prompted to provide Amazon with several personal details. This includes a form of identities, such as a license or passport number.
Amazon will send you a postcard with a verification number on it that you must enter before you can use your account, so make sure the address you provided is accurate.
They will also need your phone number, which you must provide. Once again, this is for verification only.
When you’ve entered everything, click on “Next” at the bottom of the screen.
7. Enter your billing information
The next step you need to do is to provide Amazon with your billing information. This includes a valid credit card number as well as a valid bank account number.
Before proceeding, click on “I Understand.”
On the next page, you will be prompted to verify your bank account.
You must enter your credit card information after verifying your banking information.
8. Add the information for your product(s) and Amazon store
After you supply your credit card details and they have been verified, you will be questioned briefly about your Amazon store and the products you plan to sell.
You must respond to the following questions to proceed to the next step of the Amazon seller registration process:
- The name of your Amazon store
- Whether or not you have UPC codes for your product(s)
- If you have any diversity certifications
- If you are the manufacturer and/or brand owner of the product(s) you’re selling
- You will be prompted with the question: Do you have a government-registered trademark for the branded products you wish to sell on Amazon? if you click “Yes” or “Some of them.”
Click the “Next” button after you’ve provided the answers to those questions.
9. Identity verification
You will next be required to submit images of your ID (license or passport) and a bank statement to confirm your identity.
After you upload your documents, click “Submit“.
After completing the preceding steps of the verification process, you will be asked to confirm the business address you previously supplied.
The “Confirm” button will show a new screen after being clicked (if the address displayed is correct, that is). It states that a postcard with a verification code will be sent to that address.
After that, to complete the verification process after receiving the card, enter the supplied code in the “Enter code below” area and click “Next.”
Once you’re verified, you’re in!
To be on the safe side, we recommend enabling 2-step verification on your account. However, all you need to do to get started is sign in to https://sellercentral.amazon.com after your identity and business details have been verified.
And this is what the home screen of your seller account will look like (without any sales yet, of course).
NOTE: To help with the verification of new sellers' information, Amazon has updated the seller registration process.
Because of this, some of the screens and requirements you'll see throughout the setup of your account may not be exactly like those described above.
We also strongly advise you to read our post titled “Amazon Seller Verification in 2023” to make sure you have all the necessary paperwork for verification.
How much does it cost to sell on Amazon?
The beautiful thing about selling on Amazon is that you can get started for free.
However, there are expenses associated with buying your inventory before you sell it if you want to employ the private label business model (at a higher price). However, it may not cost as much as you would anticipate.
In reality, while the average reported cost is $3,836, according to a Jungle Scout survey of 3500 Amazon sellers, 16% started their businesses with less than $500.
There will also be costs for your seller account, irrespective of the fulfillment option you choose.
What are Amazon’s fees?
Here are a few of the Amazon fees that you may be required to pay:
- Amazon referral fees: This is the commission that Amazon charges for allowing sellers to use its platform. It varies depending on the category but is often between 12 and 40%. A 15% referral fee is common for products.
- Individual seller fee: In addition to the referral fee, you will also be charged a flat fee of $0.99 for each transaction you make. Only those sellers who choose an individual seller account over a professional plan are required to pay this per-item fee.
- FBA fees: You'll be responsible for paying Amazon's shipping and handling expenses if you participate in the FBA program. For tiny items weighing no more than one pound, this often works out to be about $3.00. As the items get heavier or bigger, the fees increase.
- Other Amazon fees: If you use Amazon FBA, you can also be charged for long-term inventory storage, media costs (if you sell books, DVDs, etc.), and advertising expenses.
What else should you know before selling on Amazon?
Here are a few more Amazon-selling basics that you should know.
Amazon’s Best Sellers Rank (BSR)
Amazon organizes all of its products by giving each a Best Sellers Rank (BSR); the more popular an item (and the more sales it makes), the higher the BSR.
In addition, departments (also called parent categories) on Amazon have their own taxonomy of BSRs, as do their sub-categories.
Selling on Amazon Prime
Your product will be eligible for Amazon Prime if you're using Amazon's FBA program and you have enough inventory to distribute across its fulfillment network.
Selling Prime, which means that your products will be shipped to consumers within two to three days, is essential for success on Amazon.
Additionally, your listing will include the “Amazon Prime” logo, which increases the likelihood that your product will sell. Customers appreciate quick shipments.
However, you may still sell Prime as a Merchant Fulfilled Network seller if you're selling FBM. But to accomplish so, you must enroll in Amazon's Seller Fulfilled Prime program.
Training for new Amazon sellers
At Jungle Scout, we know how intimidating it may be to learn everything there is to know about selling on Amazon. As a result, we offer a vast collection of free materials to aid in your speedy ramp-up.
Furthermore, if you already subscribe to Jungle Scout, you get access to our members-only academy. It offers video tutorials for both new and experienced sellers.