How To Sell Products on Amazon
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Selling on Amazon has become a powerful route for independent sellers to reach an enormous engaged customer base. Over 60% of Amazon sales come from independent, small and medium-sized business sellers, with U.S.-based sellers averaging over $250,000 in annual sales in 2023.
The platform’s massive marketplace means that with the right setup, tools and strategies, building a profitable business is possible.
Here’s how to get started selling products on Amazon.
Choose the Right Selling Plan
The first step is choosing the right selling plan from Amazon’s two options: individual and professional.
The Individual Plan doesn’t have a monthly fee and instead is pay-as-you-go, charging $0.99 per sale, making it best for smaller sellers.
The Professional Plan includes more features and tools and comes with a monthly fee of $39.99, so more suitable for businesses with higher sales volume or looking to scale and grow.
Set Up a Seller Central Account
The next step is to create a Seller Central account for managing product listings, orders, payments and customer interactions.
This is where key details are needed, such as a bank account, credit card, government ID, and tax information. Once the account is set up, the seller can configure settings for payments, shipping and notifications.
Start Listing Products
Creating product listings is where the real work begins. Each listing needs:
- A product title
- A detailed description
- High-quality images
- Bullet points highlighting key features
A Global Trade Item Number (GTIN) — typically a UPC or ISBN–is also required for each listing. If a product already exists on Amazon, it can be matched to an existing page. If not, a new listing must be created.
There are two primary fulfillment options:
- Fulfilled by Amazon (FBA): Amazon handles storage, packing and shipping. This option is ideal for businesses that want to focus on sales rather than logistics. FBA also offers the advantage of getting products in front of Amazon Prime members, who enjoy fast shipping.
- Fulfilled by Merchant (FBM): This option provides more control over the fulfillment process. However, it means managing all logistics independently.
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For businesses looking to scale quickly, FBA is the best choice. FBM offers more control but requires more hands-on effort.
When it comes to setting competitive pricing for products, Amazon’s Automated Pricing tool can help adjust prices to stay in line with similar products in real time.
Drive Traffic and Track Performance
Once products are listed, it’s time to drive traffic and build credibility, using Amazon tools like Sponsored Products ads that are designed to boost visibility. As with any business, getting positive reviews is a great way to increase both credibility and sales, so make sure products are listed correctly and dispatched promptly, and that any customer issues are resolved to their satisfaction whenever possible.
The Account Health Dashboard shows how well a seller’s account is meeting policies and key performance targets. Order Defect Rate (ODR) is the big one to watch: keep it under 1% to avoid bad feedback and chargebacks.
For shipping, keep the Late Shipment Rate (LSR) under 4%, the Pre-fulfillment Cancel Rate (CR) below 2.5%, and the Valid Tracking Rate (VTR) over 95%. Stay on top of these, and there’s less risk of penalties and more room to scale.
