March 1, 2024

How to create an Amazon Seller Central account in 2024

How to create an Amazon Seller Central account in 2024
How to create an Amazon Seller Central account in 2024

Amazon is one of the most successful ecommerce platforms connecting sellers and buyers worldwide. According to a survey, 87% of buyers say they are willing to buy products from Amazon more than any other ecommerce site. With this, it is clear that the Amazon marketplace can help your business reach millions of customers who are willing to buy your product. 

But first, to start selling on Amazon, you will need to set up an Amazon seller account as part of your registration process. 

In this article, we will consider a few things you need to have ticked on your list before you create your Amazon seller account. We will then dive into a simple step-by-step guide to help you set up your Amazon Seller Central account. 

What to consider before setting up your Amazon Seller Account

Here are a few things you need to consider before creating your Amazon seller account: 

  1. Type of business model 
  2. Order fulfillment method
  3. Type of products to sell 
  4. Amazon fees and pricing strategy 
  5. Legal compliance 

Type of business model

The first thing you need to consider before setting up your business on Amazon is the type of business model you want to operate on. Picking a business model will depend on several factors including the availability of products. 

Here are five business models you can choose from (as noted above, there are variations or others that may be more attractive to you): 

  • Private Label 

The private label business model involves rebranding an already manufactured product. In other words, these products are manufactured elsewhere but rebranded with a retailer's logo and brand name and sold directly to customers. This type of business model eliminates the need for a supply chain, making it easy to operate. 

  • Retail Arbitrage 

The retail arbitrage business model involves a retailer selling discounted products sourced from a physical or online store and reselling them on Amazon for a profit. With this business model, you can easily increase profit and grow revenue with Amazon. However, discounted products might only sometimes be readily available. 

  • Dropshipping 

With the dropshipping model, you don't need to store or manage product inventory. You only need to get customer orders and send them to your suppliers, who then deliver the products to your customers in your brand name. 

  • Wholesale 

The wholesale business model involves buying low-cost discounted products in bulk and selling them individually. With this type of business model, you can easily make a steady profit if you understand the market. 

  • Handmade 

This type of business model involves hand-making and selling your products. The handmade business model is beneficial especially if you have a niche product. Some examples of the handmade business model include home decor, jewelry, and so on. If you choose to sell handmade products, you can join a community of artists and creators on Amazon Handmade

Order fulfillment method 

There are two major fulfillment methods we will look at briefly:

  • Fulfillment by Amazon (FBA) 
  • Fulfillment by Merchant (FBM)

Fulfillment by Amazon (FBA) 

If you choose to sell with fulfillment by Amazon, it means that Amazon will handle the storing of inventory, packaging, shipping, customer care, and even returns. All you need to do is send your products to Amazon fulfillment centers. Also, if you run an FBA business, your products become available to over 200 million Amazon Prime Members. 

You can consider selling with FBA if:

  • You have no logistics in place to distribute items 
  • It costs more to set up a warehouse and ship your products 
  • You would prefer Amazon to handle the shipping and customer service 
  • Your products are medium or lightweight 

Fulfillment by Merchant (FBM)

If you choose to sell with fulfillment by merchant, you or another third party will handle the storage, shipping, and customer service of your products. 

You can consider selling with FBM if:

  • You have your own logistics in place
  • You prefer to handle your customer service 
  • You can more efficiently handle the costs of fulfillment 
  • Your products are heavy or large.

According to research from Jungle Scout, 86% of sellers use Amazon FBA with 22% using both Amazon FBA and FBM. While 15% use FBM only. It is important to examine the pros and cons of selling using both methods and decide which is best for your business. You can also decide to use both methods to minimize your expenses and maximize profit. For example, if you sell large items that turn over slowly and small items that can turn over quickly, you might want to use FBM and FBA for each of these categories, respectively. 

Choose your products 

After choosing the best business model and order fulfillment method for your business, the next step would be to choose your product. It is important to carry out product research to see what Amazon products are low in competition but high in demand. You can go through Amazon’s bestseller pages to see top-selling items on Amazon in 2024. You can also go through product reviews, and carry out keyword research to gain deeper insights into what products have a healthy market in place. 

Amazon fees and pricing strategy 

Next, you want to familiarize yourself with Amazon’s referral fees, fulfillment fees, and any other applicable charges. Be aware of the standard selling fees and compare different selling plans to find one that suits your business model. Calculate these fees to determine your product pricing and profitability. Also, research competitor pricing to create a competitive pricing strategy that attracts customers while maintaining profitability. 

Legal compliance

Ensure your business is legally registered, and you have all necessary permits and licenses to operate. Stay up to date with sales tax obligations in the regions where you plan to sell. Familiarize yourself with Amazon's tax collection services or explore third-party tax solutions. 

Lastly, ensure that you stay updated with Amazon’s seller policies, terms of service, and guidelines and that your products comply with Amazon's policies. If you violate these policies, it can result in penalties, including account suspension. 

A step-by-step guide to creating an Amazon Seller account

Now that you have your business model, order fulfillment, and product figured out, the next step is to go through the Amazon seller registration. 

Here's a step-by-step guide to help you create your Amazon seller account: 

Step 1: Go to the Amazon Seller Central page to sign up

Go to the Amazon Seller Central login page and click on the “Sign Up” button. This will direct you to a page to log into your existing account or create a new one. 

Step 2: Choose between the Individual Seller account or the Professional Seller account 

Once you log in to your Amazon account, you will be asked to choose between two seller accounts - the individual account and the professional account. Both accounts differ based on the number of products you would be selling per month. 

Consider your selling volume and business goals to determine which account type is best for you. 

If you're just starting and testing the waters, an Individual Seller Account might be sufficient initially. However, if you're serious about scaling your business and maximizing your selling potential, a Professional Seller Account is the way to go. With the Individual account, you can sell fewer than 40 products a month and have to pay a fee of $0.99 for every sale you make. 

On the other hand, with the Professional Seller account, you can sell more than 40 products a month, and gain access to Amazon’s listing tools and advertising services for a monthly subscription of $39.99 a month. 

Step 3: Choose your ‘business location’ and ‘business type’ 

The next step is to select the country your business is located in and select your business type. 

You will need to select your business type from the following categories: 

  • Privately owned business
  • Publicly-owned business
  • State-owned business
  • Charity
  • None, I am an individual 

Next, you will need to fill in your full name and then click on “Agree and Continue”.

Step 4: Fill in your personal information

Next, you will be required to fill in some personal information which includes a form of identification, business address, and phone number for verification. After putting in your information, click next to continue. 

Step 5: Select your marketplace(s)

Next, you will be directed to select an Amazon marketplace you would like to sell in. Amazon operates multiple marketplaces worldwide, each serving a specific region or country. Choose the marketplace(s) where you want to sell your products based on your target audience and shipping capabilities. Some of the popular marketplaces include (United States), (United Kingdom), and (Germany). Once done, click next to continue. 


Step 6: Enter your credit card details 

For the next step, you will be required to enter your credit card details for verification and future billing. Amazon offers several payment options, including direct deposit to your bank account or Amazon Pay account.

Step 7: Fill in product and Amazon store information 

The next step of the registration process will require that you fill in information about your product or Amazon store. After providing answers, you can click next to move on to the next phase.

Step 8: Confirm your business address

Once the above steps are complete, you will be asked to confirm your business address. You will then be sent a postcard and verification code to the address provided. Once received, enter the verification code and click next to finish the registration process. 

Once done, you can easily go to your seller central login page, list your products on Amazon, and start selling. Ensure you provide accurate and detailed descriptions, high-quality images, and competitive pricing to attract potential buyers.

Step 9: Manage your Amazon Seller account 

Regularly monitor your seller account performance, including sales metrics, inventory levels, and customer feedback. Address any issues promptly, such as negative reviews or order fulfillment issues, to maintain a positive seller reputation. Optimize your product listings, pricing strategy, and advertising efforts to stay competitive in the ever-evolving marketplace.

What does it cost to sell on the Amazon marketplace?

It's crucial to understand Amazon's fee structure to ensure you price your items competitively while still making a profit. Here are some Amazon fees you might need to pay: 

  • Amazon referral fees: This refers to a percentage of your selling price that Amazon takes for selling on its platform. This usually ranges from 6% to 45% depending on the product category and price of the product. However, most sellers pay a referral fee of 15%. 
  • Seller account fees: If you choose the individual seller account, you will need to pay a $0.99 fee for every item you sell. On the other hand, if you choose a professional account, you will need to pay $39.99 every month. 
  • Fulfillment by Amazon (FBA) fees: If you choose to sell with Fulfillment by Amazon, you will need to cover the costs for storing, shipping, and other services. Your FBA fees vary depending on the weight and size of your product. The FBA fees cover monthly storage of your products in Amazon warehouses as well as the handling, packaging, and shipping of your products. 
  • Additional Amazon fees: Keep in mind that if your products are stored in fulfillment centers for too long, you may incur long-storage fees. If you sell media like DVDs, Amazon also adds a closing fee of $1.80 for products under the media category. This includes products like books, video games, music, computer software, etc. Also, you will need to consider Amazon advertising costs. 

Final thoughts 

Once you set up your Amazon Seller Central account, you can get your suppliers to provide inventory and start creating your product listings. To become successful selling on Amazon, it is important to develop a strategy and action plan to increase sales in retail

If you want to know more about setting up your Amazon seller account and starting your Amazon business, you can contact ecommerce experts at ePlaybooks.

Key Takeaways: 

  • Amazon is a successful e-commerce platform that can help businesses reach millions of customers 
  • Consider the business model, order fulfillment method, and products to sell before creating an Amazon seller account 
  • Amazon fees include referral fees, seller account fees, and FBA fees 
  • Develop a strategy and action plan to increase sales in retail


Can I create an Amazon seller account for free? 

Yes, you can create an Amazon seller account for free. There are no charges or fees for signing up and creating an account. 

To create a free Amazon seller account, go to the Amazon Seller Central website, sign in with an existing Amazon account or create a new one, provide business information and details about the products you plan to sell, verify your identity and payment information, and agree to the Amazon Services Business Solutions Agreement. 

Once you complete the registration process, you can start creating product listings and selling on Amazon. 

How long does it take to get approved for Amazon Seller Central?

The approval process for Amazon Seller Central typically takes a few days, and sometimes it takes longer up to a couple of weeks, especially if Amazon requires additional information or verification of your identity. 

You can speed up your approval process by providing accurate and complete information during the registration process and promptly responding to any requests for additional information or verification from Amazon.

What documents do you need for an Amazon seller account? 

When registering on Amazon seller account, you may need to provide documents like a government-issued ID, business license, or proof of address, depending on your location and the type of products you plan to sell. 

Additionally, there are basic information you will need to provide, such as name, address, legal entity type, tax ID, credit card, bank account details, phone number, email address, and product information.

What can you sell as an Amazon seller? 

As an Amazon seller, you can sell a variety of products across multiple categories, such as books, music, movies, electronics, beauty and personal care items, clothing, sports equipment, toys, pet supplies, and more. 

However, Amazon has restrictions on some product categories, such as hazardous materials, weapons, and alcohol, among others. Therefore it's important to review their policies and guidelines before selling.

Can I sell on Amazon without registering the company?

Yes! You can sell on Amazon without registering a company. It however depends on the type of account you choose. You can sell as an individual without registering a company, but there are limitations on the number of items you can sell, and you will be charged a per-item fee. 

To sell more than 40 items per month, you'll need to sign up for a Professional Seller Account, which requires you to provide information about your business, such as your business name, address, and tax identification number.

Do I need a bank account for Amazon sellers? 

Yes! As an Amazon seller, you will need a bank account to receive payments for the products you sell. Amazon requires sellers to provide a valid bank account in the country where they are registered. When you make a sale, Amazon will deposit the payment into your bank account after deducting their fees.

How much do full-time Amazon sellers make? 

The amount of money full-time Amazon sellers make can vary widely and depends on various factors, such as the type of products they sell, their pricing strategy, marketing efforts, and operational costs. 

Do you actually make money selling on Amazon? 

Yes, you can make money selling on Amazon. A significant number of individuals and businesses who sell tangible goods on this platform report achieving a sales revenue of at least $1,000 on a monthly basis. Some larger stores, however, may generate $100,000 or more each month. 

Should I create an LLC for an Amazon seller account? 

Creating a Limited Liability Company (LLC) for your Amazon seller account depends on various factors, such as your business goals, personal circumstances, and legal requirements, and it comes with its benefit. 

An LLC can help protect your personal assets in case of legal claims or disputes against your business. It can also provide certain tax benefits and flexibility in managing your business. 

However, creating an LLC involves certain costs and responsibilities, such as filing fees, ongoing maintenance requirements, and potential legal and tax implications. 

How much does it cost to sell on Amazon? 

There is no fixed amount to the cost of selling on Amazon. It depends on your business model, product category, and sales volume. That being said, some fees are associated with the services you use on Amazon, such as Amazon Seller account fees, referral fees, fulfillment fees, advertising fees, and other costs like subscription fees and penalties for policy violations. 

When put together, these fees may range from a few dollars to thousands of dollars or even more, depending on how big your business is on Amazon.

Differences between an Individual Seller and a Professional Seller 

Both individual and professional seller accounts allow you to sell on Amazon, but there are  some differences between them. Individual seller accounts on Amazon have no monthly fee but charge a fee of $0.99 per item sold, while professional seller accounts cost $39.99 per month but offer access to additional tools and services, including the ability to customize shipping rates, and are eligible for the Buy Box program. 

Professional accounts are suitable for high-volume sellers, while individual accounts are better for selling fewer than 40 items monthly.

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