Amazon Merchant Guide: Steps to Start Selling
Amazon stands as one of the most powerful e-commerce platforms in the world, connecting millions of buyers with sellers every single day. The people who run these online businesses are known as Amazon merchant or Amazon sellers. Simply put, they are individuals or companies who list and sell their products through Amazon. With a smooth setup process and global visibility, selling on Amazon has become one of the simplest ways to launch an online business. Its popularity continues to rise, with more sellers joining the marketplace every day.
If you already run a product-based business, becoming an Amazon merchant can be an excellent opportunity to scale your brand. Below is a step-by-step guide to help you start your selling journey on Amazon.
Benefits for Amazon Merchants
There are many reasons why Amazon FBA and overall Amazon selling are so popular—it’s incredibly convenient. Here are some of the key advantages sellers enjoy:
- You save valuable time by outsourcing key operations.
- Your products benefit from Amazon’s trusted branding, improving sales potential.
- Listings gain the Amazon Prime badge, which attracts Prime members and boosts visibility.
- Amazon manages customer service and handles returns for you.
- You don’t have to worry about packaging or shipping—Amazon takes care of logistics.
Now, let’s explore the steps involved in becoming a successful Amazon merchant.
Step 1: Decide What Products You Will Sell
Every successful business starts with choosing the right products. Ideally, you should look for items that have steady demand, are affordable to source, and can be shipped easily without high delivery costs.
Product research on Amazon can take time, but it’s worth the investment. You’ll need to evaluate competition, monthly search volume, ease of packaging, shipping costs, reviews, demand patterns, and more before selecting your niche.
A simple trick is to browse Amazon’s best-selling categories to see what’s performing well. However, remember that these rankings change frequently, so avoid making decisions too quickly.
If you already have an established product line and want to sell those items on Amazon, analyze your competitors closely and study pricing and shipping strategies.
Step 2: Create Your Amazon Seller Central Account & Merchant ID
Seller Central is the command center for Amazon merchants. This is where you’ll track sales, review performance metrics, manage your storefront, and handle customer communication. You will also use Seller Central to create and optimize product listings with SEO keywords, clear descriptions, and quality images. Listing optimization is a full process on its own and plays a major role in how well your products rank.
Step 3: Choose a Shipping Method
Amazon sellers have two main fulfillment options—manage shipping yourself or let Amazon handle it.
If you choose to ship on your own, you’ll need a reliable delivery partner offering competitive rates and safe handling. You’ll also be responsible for packaging, dispatching, and managing customer expectations. While this gives you control, it requires time and effort.
Alternatively, Amazon’s Fulfillment by Amazon (FBA) service lets you outsource logistics entirely. You simply send your inventory to Amazon’s warehouses, and Amazon manages picking, packing, shipping, customer service, and returns. This is why many sellers prefer FBA—it’s efficient and scalable.
Although FBA includes specific fees, these are often more cost-effective than third-party shipping rates.
Step 4: Understand Amazon Selling Costs
Before selling, you must understand Amazon’s fee structure. Since you earn profit by selling on the platform, Amazon charges fees for using its services.
If you expect to sell more than 40 items per month, you’ll need the Professional Seller Plan which costs $39.99 per month. If you plan to sell fewer than 40 items, you can use the Individual Seller Plan, which charges $0.99 per item sold along with additional fees.
Referral fees (Amazon’s commission) vary by category—for example, 15% for baby items, 8% for consumer electronics, and 15% for musical instruments. Media categories also include variable closing fees.
If you choose FBA, you’ll pay FBA fees instead of handling shipping yourself. These fees depend on product size and weight.
Be sure to calculate all these costs in your pricing strategy to protect your profit margins.
Step 5: Recognize the Importance of Marketing Campaigns
As an Amazon merchant, you’re competing with thousands of sellers. Even with great prices and high-quality products, you still need strong advertising to stand out.
Amazon’s advertising tools allow sellers to run targeted campaigns that can reach millions of potential customers. Even a small percentage of conversions from these ads can significantly increase your revenue.
To make your ads effective, your product listings must be fully optimized for search and conversion.
Step 6: Track and Review Your Business Performance
Becoming a successful Amazon seller requires ongoing monitoring and improvement. You should regularly check your Seller Central analytics to identify issues and opportunities.
For example, if your listing has high traffic but low conversion rates, your product page may need better images, clearer descriptions, or more competitive pricing. If a product receives negative reviews, inspect and improve the product immediately.
Mistakes and obstacles are part of the journey, but reviewing your performance helps you correct them quickly and keep your business growing.
Final Thoughts
Selling on Amazon is a straightforward way to reach millions of customers worldwide while keeping startup costs low. Although beginners may face challenges in the early stages, Amazon provides extensive educational resources including webinars, help guides, tutorials, and videos that explain every part of the selling process. With the right approach, strategy, and commitment to learning, you can grow a profitable business as an Amazon merchant.
