How Do I Start Selling in Amazon: The Ultimate Guide for Beginners

by KEN

The Amazon Marketplace rose to fame around 2018 when $10 billion worth of investment was granted to this commercial giant. It was not a surprise as, over the years, Amazon is the go-to site for online sellers.

This year, Amazon is quickly pacing up its business strategy. It is pumping up improvement in all areas, such as content, advertising, display, search capability, videos, inventory, documentation, and reporting. Being a beginner in online selling can be quite overwhelming. You need to know how the process goes about and what your options are as you progress.

Here is a step-by-step guide to help beginners build up their career and lives on Amazon.

Setting Up Your Account

Step 1: What kind of Amazon Seller Plan will you be getting?

There are two basic Amazon Seller plans – the Individual Plan and the Professional Plan. First, you should check the products you will or wish to sell in this marketplace. Here is a correlation on these two kinds of Amazon Seller Plans.

  • Individual Plan

It is the best plan if your target as a beginner is less than forty items each month. Monthly subscription fees are free of charge, but there is a selling fee of $0.99 for each product in addition to the amazon referral fee and variable closing charge.

  • Professional Plan

This plan is the preference of most established business owners. There is a charge for a monthly subscription of $39.99. Other fees may also apply for referrals and closing, but the selling fee for every product is free.

Step 2: Open your Amazon Seller Account.

You need to complete several requirements to open an Amazon Seller Account. The basic needs include:

  • A credit card that you can use for international transactions
  • Bank information
  • Tax Identification Data

Once you have the necessary information, you can proceed to open the Sell on Amazon page and start opening your account.

Bonus Tips!

  • Create a separate email for personal and business transactions. Use the business email to open your Seller Account, while your personal email can continue to be linked to your Amazon Prime Account as a buyer.
  • Each Seller Account needs a different email address, so make sure to create unique yet sensible email addresses if you plan to open multiple accounts.

Step 3: Notice and take action when you receive Amazon notifications.

When you successfully open an Amazon Seller Account, expect to receive several notifications that will guide you to complete some steps to move on with the process. Some of these notifications include:

  • Seller Information: It includes your business name and address, contact details, and bank information. Bank information consists of your credit card and bank account details.
  • Billing Information: It will ask you which Seller Plan you are choosing and that you agree to pay specific fees that apply.
  • Tax Information: It will let you determine if your business is on a sole proprietorship or under a particular company. If you are a sole proprietor, you will need to input your SSN (Social Security Number), but if you are under a company, you need to key-in your EIN (Employer Identification Number). Keep in mind that there is a huge difference with how tax is computed with these two types of tax numbers. Therefore, you need to choose what really applies to your business.
  • Product Information: You need to declare several pertinent information to help Amazon identify your products correctly. Amazon will require information such as UPC codes, manufacture details, and the number of products you will sell in the marketplace. Remember that Amazon can double-check UPC codes based on the GS1 database. It means that a seller without a legitimate UPC code might have their listings removed from the marketplace.

When you complete the creation of your account, Amazon will welcome you through your Seller dashboard. The dashboard has several tabs to help you manage your account, including your pricing, inventory, advertisement, and reports. It will also keep track of all your orders and transactions.

Amazon Fees: Get to Know Them

Other than creating your Seller Account, another essential information that you need to understand with Amazon selling are the fees that go along with an online business.

The fees to start selling on the Amazon Marketplace are dependent on the plan you pick. There are two seller plans, Individual Selling Plan and Professional Selling Plan. As described earlier, the Individual Selling Plan applies best to sole proprietors. The fee for each item you sell in Amazon is $0.99 plus the variable closing fee of about $0.9 depending on the percentage followed. On the other hand, the Professional Selling Plan works best with companies. They do not need to pay the $0.99 fee per item sold, but they do have a monthly cost of $39.99. Other expenses, such as referral fee and variable closing fee, play between 6% to 25%.

Amazon Referral Fee

Now, we have been mentioning the Amazon referral fee above. But what is it exactly? It is a percentage of the entire item price with its CPA model as its basis. For example, you have furniture accessories listed on Amazon for $100. Amazon will obtain 12% ($12) as the payment for the referral.

Amazon Variable Closing Fee

The Amazon Closing fees are permanent charges for media and some non-media items, which apply to the shipment of a product successfully sold.

Begin Today!

The Amazon Marketplace is your place to be when you want to start your online retailing business. It is highly competitive and fulfilling as it is packed with customers all around the globe. Understanding how it works and completing all the necessary steps you need to complete your account will be your first step towards a successful online business.

However, keep in mind that these are just some of the basics. There are still various learnings that you need to study in e-Commerce. Be eager to know all other information, including Amazon’s shipping and fulfilment options. After all, online selling is all about shipment to customers. Happy selling Amazon sellers!


Patrick Panuncillon has been helping improve the leads and conversions of Amazon sellers since 2010 and loves to dabble on the latest trends and innovations particularly on e-commerce tools and platforms. He also specializes in Digital Marketing and Search Engine Optimization.

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