The Ultimate Guide to Selling Groceries on Amazon in 2025

Have you ever considered selling groceries on Amazon?

Many sellers often flock to the most popular categories, such as home & kitchen, clothing, beauty, or toys & games. While these categories can be lucrative, the grocery sector offers a unique advantage: customers frequently reorder products. Unlike many other categories where a customer may buy once and not return for months or years, groceries—like health & personal care items—are essentials that people regularly replenish.

The online grocery industry is expanding rapidly, with Amazon making significant moves to capture a larger share of this market. As consumers become increasingly comfortable purchasing perishable and non-perishable goods online, the demand for grocery products continues to rise. The opportunity to enter this space was excellent five years ago, and it remains just as promising today.

But where do you begin? How do you navigate the competitive landscape and set yourself up for success?

Don’t worry—we’ve got you covered! This definitive guide will walk you through everything you need to know about selling groceries on Amazon in 2025, including ungating the grocery category, sourcing strategies, and essential best practices to build a profitable grocery business.

Let’s dive into the details of launching your online grocery business on Amazon.

Understanding the Grocery Category on Amazon

The Grocery & Gourmet Food category on Amazon includes all types of food products, bringing unique considerations for sellers. A quick glance at Amazon’s Movers & Shakers page for groceries will show you which products are currently trending.

One of the key advantages of selling groceries is that many products are “replenishables”—items customers buy repeatedly. This can create a steady stream of repeat sales, a feature that makes the grocery category highly attractive.

However, one of the biggest hurdles in this category is getting ungated. While this process may seem like a barrier, it actually works in your favor by discouraging less-dedicated sellers from entering the market, leaving more room for you!

Now, let’s explore how you can get excited to sell groceries on Amazon.

How to Get Ungated in the Grocery Category?

Before you can sell groceries on Amazon, you must complete the ungating process. This requires approval to sell food-related products, a process that has historically been more complex compared to other categories.

However, once you’re approved, you’ll gain access to a massive, rapidly growing customer base. Online grocery shopping is booming, with nearly 43% of consumers purchasing groceries on Amazon. The industry is growing at an annual rate of almost 12% and is projected to exceed $250 billion in sales by 2026.

To get ungated, you need to provide Amazon with documentation, typically invoices from a grocery supplier. A simple way to achieve this is by setting up a wholesale account with suppliers like 3 and using their invoices to complete the process.

Additionally, you must have a professional seller account and adhere to Amazon’s strict food safety regulations to ensure compliance with its guidelines.

Requirements for Grocery Category Approval

To gain approval for selling groceries on Amazon, you must meet several key requirements:

A professional seller account.
Invoices from authorized wholesale suppliers.
If creating a new grocery listing, you must provide clear images showing the ingredient list and nutritional information (not required if reselling existing listings).
Clarification of your role—whether you’re a reseller, distributor, manufacturer, or a combination of these.
Compliance with Amazon’s shelf-life requirements, which state that grocery items must have at least 90 days before expiration when sold. To account for processing and storage time, it’s best to ensure at least 128 days of shelf life from the time you purchase inventory.

Why selling groceries on Amazon is profitable?

Selling groceries on Amazon has several benefits for both new and experienced sellers:

High Demand: Customers frequently purchase groceries for convenience.
Wide Customer Base: Access millions of potential buyers.
Recurring Sales: Many grocery items need regular replenishment.
Low Barrier to Entry: With the right supplier, getting started is straightforward.
Multi-Pack and Bundle Opportunities: Maximize profits by selling items in sets.

By focusing on quality products with consistent demand, you can take advantage of the growing trend of online grocery shopping.

Key Guidelines for Selling Groceries on Amazon

Success in the grocery category requires careful attention to Amazon’s guidelines. Here’s what you need to keep in mind:

Maintaining Seller Performance

A strong seller account is crucial. Amazon monitors several performance metrics:

Order defect rate below 1%.
On-time fulfillment of at least 98% of orders.
Low pre-fulfillment cancellation rate.
Prompt customer responses and issue resolution.

Monitoring your account health and ensuring quality control will help maintain a positive standing on the platform.

Packaging and Labeling

Proper packaging and labeling are essential. Your product packaging must display:

Product name.
Manufacturer and packager details.
Expiration date.
Net weight and content quantity.

Ensuring secure and compliant packaging improves customer experience and reduces the risk of complaints or returns.

Adhering to Shelf-Life Policies

Amazon enforces strict shelf-life policies to ensure customers receive fresh products. Groceries sold via Fulfillment by Amazon (FBA) must have a minimum shelf life of 90 days. Regularly reviewing inventory to remove near-expired items will help avoid account penalties.

Effective Sourcing Strategies for Grocery Products

There are three primary methods for sourcing grocery products on Amazon:

1. Wholesale Sourcing

Wholesale sourcing involves purchasing products in bulk from distributors. While this method requires an upfront investment, it offers stable supply and competitive pricing.

2. Retail Arbitrage

Retail arbitrage involves buying discounted grocery items from physical stores and reselling them on Amazon. While it requires time to find profitable deals, it can be a great entry point for new sellers.

3. Online Arbitrage

Online arbitrage follows the same concept as retail arbitrage but involves purchasing products from online retailers. Using software tools to compare prices and identify profitable items can make this strategy more efficient.

Each sourcing method has advantages, and the best approach depends on your budget and business model.

Best Practices for a Thriving Grocery Business on Amazon

To maximize your success in the grocery category, focus on these key practices:

1. Prioritizing Product Quality

High-quality products ensure positive reviews and repeat business. Proper preparation, sealing, and labeling are essential for maintaining customer trust.

2. Efficient Packaging Solutions

Using protective packaging—such as polybags for liquids and powders—prevents damage during shipping and enhances customer satisfaction.

3. Selling Replenishable Products

Focus on grocery staples that customers repurchase regularly, such as snacks, beverages, and pantry essentials. This strategy leads to consistent sales and customer loyalty.

4. Exploring Bundling Opportunities

Creating product bundles can increase perceived value and save on FBA fees. Grouping complementary products encourages customers to buy in larger quantities.

Final Thoughts

Selling groceries on Amazon in 2025 offers incredible potential for those willing to navigate the platform’s requirements and best practices.

By getting ungated, sourcing products wisely, and following best practices in quality control, packaging, and inventory management, you can build a sustainable and profitable grocery business.

Now that you have the knowledge, it’s time to take action and carve out your place in the growing online grocery market.

The opportunity is there—grab your share of the Amazon grocery business today! Happy selling!