Amazon is one of the most successful ecommerce platforms connecting sellers and buyers all over the world. According to a survey, 89% of buyers say they are willing to buy products from Amazon more than any other ecommerce site. With this, it is clear that the platform can help your business reach millions of customers who are actually willing to buy your product.
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.
Here are a few things you need to consider before creating your Amazon seller account:
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 a number of 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):
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.
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 not always be readily available.
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.
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.
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.
There are two major fulfillment methods we will look at briefly:
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:
If you choose to sell with fulfillment by merchant, it means you or another third party will handle the storage, shipping, and customer service of your products.
You can consider selling with FBM if:
According to research from Jungle Scout, 92% of sellers use Amazon FBA with 34% using both Amazon FBA and FBM. While 9% 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.
After choosing the best business model and order fulfillment method for your business, the next step would be to choose your product. In choosing a product, it is important to carry out product research to see what 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 2021. 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.
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:
Go to the Amazon Seller central login page and click on the “Sign Up” button. This will direct you to a page to login into your existing account or create a new one.
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. If you will be selling on a small scale, meaning below 40 products a month, then the individual plan would be ideal. Individual account sellers have to pay a fee of $0.99 with every sale made.
However, if you will be selling more than 40 products a month, the professional account which costs $39.99 a month may be worth it.
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:
Next, you will need to fill in your full name and then click on “Agree and Continue”.
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.
Next, you will be directed to select an Amazon marketplace you would like to sell in. Once done, click next to continue.
For the next step, you will be required to enter your credit card details for verification and future billing.
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.
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 to start selling.
There are some fees associated with your Amazon seller account. Here are some Amazon fees you might need to pay:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.