Selling on Amazon: A Comprehensive Beginner’s Guide

Amazon is a globally recognized platform that provides sellers with unparalleled access to millions of customers, making it an excellent opportunity for business growth. With powerful tools and services like Fulfillment by Amazon (FBA), Prime eligibility, and advanced advertising solutions, sellers can optimize operations, enhance customer satisfaction, and boost sales performance. While becoming a successful Amazon seller isn’t without its challenges, the right approach and guidance can set you on the path to success.

How to Start Selling on Amazon

Getting started is easier when you follow a clear process. Below are essential steps to help launch your Amazon selling journey. With persistence and strategic planning, you can establish a profitable presence on the world’s largest e-commerce platform.

1. Select Your Business Model

Amazon offers various business models, each with unique advantages and considerations. Choosing the right one depends on your goals, budget, and level of involvement.

• Retail Arbitrage
  This model involves purchasing discounted products from retail stores and reselling them on Amazon for a profit. While it requires minimal upfront investment and offers flexibility, it demands consistent effort in finding profitable inventory.
• Online Arbitrage
  Similar to retail arbitrage, online arbitrage focuses on sourcing products from online marketplaces at lower prices. It allows for greater scalability and a broader product range but requires close monitoring of pricing and competition.
• Dropshipping
  With dropshipping, you sell products without maintaining inventory. When a customer places an order, the supplier ships the product directly. Although this model reduces overhead and inventory costs, it can come with lower profit margins and less control over shipping and product quality.
• Wholesale and Manufacturer Partnerships
  This approach involves buying products in bulk directly from manufacturers or wholesalers. It typically offers better profit margins and control but requires more significant upfront investment and inventory management.
• Private Label
  Private labeling means developing your own brand and selling custom products under that brand. It offers long-term scalability, brand recognition, and higher profits but requires more resources for product development, branding, and marketing.

Pro Tip: Evaluate your resources and business goals carefully before choosing a model. Each path requires a different level of commitment and risk tolerance.

2. Source the Right Products

Once you’ve chosen your model, the next step is selecting products to sell. Start by analyzing market trends, customer demand, and competitor offerings. Choose products with healthy profit margins, reliable suppliers, and a strong potential for success.

You can opt to resell popular items or develop a unique product line through private label or custom manufacturing.

High-Performing Categories on Amazon

While these categories generally perform well, be aware that some may require approval to sell.

• Health & Personal Care
• Home & Kitchen
• Electronics & Accessories
• Apparel & Accessories
• Toys & Games
• Pet Supplies

3. Set Up Your Seller Account

After choosing a product to sell, the next step is to create your Amazon seller account. Visit Amazon Seller Central to register. You’ll need to decide between an Individual or Professional account based on how many products you plan to sell and your business goals. During registration, you’ll provide essential information such as business details, contact information, and bank account information for payments.

Once your account is active, you can begin listing products and managing your store through the Seller Central dashboard.

Amazon Selling Plans: A Comparison

• Individual Selling Plan
  • Cost: £0.75 per item sold, plus applicable referral and closing fees
  • Best for: Sellers with fewer than 40 sales per month
  • Benefits: No monthly subscription fee; ideal for low-volume or casual sellers
• Professional Selling Plan
  • Cost: £25/month (excluding VAT)
  • Best for: Sellers with more than 40 monthly sales or a high-volume business model
  • Benefits: Unlimited listings, advanced selling tools, bulk listing, inventory management, and access to Fulfilled by Amazon (FBA)

4. Select a Fulfilment Method

Amazon provides two main fulfilment options: Fulfilment by Amazon (FBA) and Merchant Fulfilled Network (MFN). Your choice depends on how hands-on you want to be with logistics and shipping.

• Fulfilment by Amazon (FBA)
  With FBA, you send your products to Amazon’s fulfilment centers. Amazon then stores, picks, packs, ships, and handles customer service for you. This hands-off approach allows you to focus on growing your business while Amazon manages order fulfilment.
• Merchant Fulfilled Network (MFN)
  Previously known as FBM, this method puts you in charge of storage, packing, and shipping. MFN gives you full control and allows for custom packaging and branding to personalize the customer experience.

Why Do Many Sellers Choose FBA?
FBA is often preferred because it offers fast delivery, Prime eligibility, and Amazon-handled customer service, increasing trust and conversion rates. Its scalability and operational ease make it attractive for businesses aiming to grow quickly.

5. List Your Products

Product listing methods vary based on whether your item already exists in Amazon’s catalogue:

• If your product already exists:
  Search for it in Seller Central’s catalogue and add your offer.
• If it’s a new product:
  You’ll need to create a new listing. Write an engaging title, bullet points that highlight key features, and a clear product description. Use high-quality images from multiple angles and include relevant keywords to improve discoverability.

What Are the Costs of Selling on Amazon?

Understanding the costs involved is vital for maintaining profitability. Key expenses include:

• Referral fees (vary by category)
• Fulfilment fees (mainly for FBA users)
• Monthly subscription (Professional Plan)
• Advertising and marketing costs
• Additional operational expenses (product sourcing, shipping, packaging)

To learn how to manage these expenses effectively, check out our detailed blog post that explores Amazon selling fees and strategies to optimize your margins.

Amazon Seller Tips for Beginners

Here are some essential tips to help you launch your Amazon selling journey with confidence and success.

Use a Genuine UPC Code
Obtaining a UPC (Universal Product Code) is a fundamental requirement for listing products on Amazon. This unique identifier ensures proper tracking and compliance across platforms. Always purchase UPCs directly from GS1, the official source, to ensure authenticity and alignment with Amazon’s guidelines. Avoid using low-cost or unofficial codes from third-party sellers, as these can lead to listing issues or even account suspension.

Collect Customer Reviews
Reviews play a vital role in influencing purchase decisions on Amazon. Gaining early feedback helps build credibility and boosts product visibility. Encourage customers to leave reviews by sending personalized follow-up emails after purchase. Prioritize quality products and outstanding service to naturally earn positive reviews. Be sure to follow Amazon’s strict policies regarding review solicitation to maintain trust and compliance.

Set Strategic Pricing
Competitive pricing is key to standing out in the marketplace. Research your competitors and set prices based on product cost, Amazon fees, shipping, and desired profit margins. Monitor pricing trends regularly and make data-informed adjustments to remain competitive and profitable.

Promote Your Listings
Increase your product visibility using Amazon’s advertising tools such as Sponsored Products, Sponsored Brands, and Sponsored Display. These tools help you reach targeted audiences through keyword and product-based ads. Continuously test and refine your campaigns—adjust targeting, creative, and bids—to improve performance and maximize ROI.

Track Performance and Evolve
Keep a close eye on your store’s performance using analytics in Amazon Seller Central. Monitor sales, customer feedback, and key performance indicators (KPIs) to identify what’s working and where you can improve. Act on customer reviews to resolve issues and enhance satisfaction. Use insights to refine your approach and scale your business over time.

Starting on Amazon can be both exciting and rewarding when equipped with the right tools and strategies. With continuous learning and adaptability, sellers can thrive in Amazon’s dynamic e-commerce environment.

Need tailored advice for your Amazon business? The team at eStoreScout —real Amazon sellers and seasoned experts—is here to help. Contact us or book a free consultation today.

Want to know how to choose the best Amazon marketing agency for your needs? Check out our blog post for expert tips and recommendations.