Who doesn’t need a little extra money these days? Many of us are on the lookout for the perfect side hustle or dream of escaping the nine-to-five grind. Selling on Amazon can tick these two boxes, like it’s currently doing for the platform’s over 2.5 million third-party sellers.
Selling on Amazon lets you work from home in your spare time, launch that new product you’ve been working on to an audience of millions, and keep things easy by using Amazon’s existing infrastructure.
At Remitly, we know that taking on a new project can feel daunting. That’s why we’ve put together a comprehensive guide to starting your Amazon business in 2025. We’ll explain the account options available, how to set up and launch your account, and how to keep your sales thriving for years to come.
Understanding Amazon’s selling platform
Amazon can be a great way to make money online. When you become an Amazon seller, you automatically get some great benefits. The Amazon Marketplace has a huge customer base that you can tap into immediately, and Amazon handles all the payments. Certain sellers also benefit from Amazon’s well-developed systems for customer service, shipping, and warehousing.
So, you have two choices to make up front. Either become an Individual or a Professional seller, and choose between fulfilling the orders yourself or having Amazon do it.
Individual accounts
This is a great option to use when starting out simply because it’s free. In this model, you’ll pay $0.99 for every item you sell on Amazon in addition to the Amazon referral fees for using the platform.
If you plan to sell fewer than 40 units per month, this would be an economical option.
Professional accounts
For sellers who want to go all in from the beginning, the Professional option may suit. It costs $39.99 a month, but you don’t pay the $0.99 selling fee per item. In this model, you still have to pay the referral fees.
Professional sellers also get access to useful features, like automated pricing, bulk updates, and Business to Business (B2B) selling, which can increase your reach and make things more efficient. When you’re aiming to sell more than 40 items every month, this plan offers better value than the Individual one.
Amazon FBA vs FBM
Fulfilled by Amazon (FBA) accounts
If you’re new to online sales, this is the Amazon selling style for you. Amazon will take care of everything, from customer service to returns to shipping. All you have to do is source the inventory and send it to one of the Amazon warehouses.
FBA is the easiest way to qualify for Amazon Prime shipping and scale your business quickly, but there are still referral fees to pay, plus fulfillment fees to cover these additional services.
Fulfilled by Merchant (FBM) accounts
This is more of a hybrid model. FBM sellers still get to take advantage of Amazon’s customer base and payment options, but packing, shipping, and customer service are done entirely by you. Luckily, Amazon has discounted shipping with the Amazon Buy Shipping program, which is up to 31% lower than what you’d normally pay with companies like UPS and FedEx.
FBM requires you to store all your items yourself, so it’s important to have access to enough space.
Getting started: Setting up your seller account
The business account setup process is generally the same for all accounts. We’ll take you through setting up a Professional FBA account as an example.
- Use your existing Amazon login or create one.
- Choose the Professional plan—you can change this later.
- Enter the business info, country, the business name, your Employer Identification Number (EIN) if you have one, the address, and phone number.
- Enter your personal details using the same ID document you’ll use for verification, including:
- Your full name
- Country of citizenship
- Country of birth
- Date of birth
- Residential address
- Add your banking details (credit card and bank account info). Note that the accounts don’t need to be in the US. This is the card that will be used for your monthly fee.
- Answer questions about your products. Add any business certifications and brand/manufacturer status, and whether or not your products will have Universal Product Code (UPCs).
- Get verified. Upload a photo of your government-issued ID and your most recent bank statement (no older than 180 days) to confirm your address. Then, you have the option to take a live photo of yourself with the ID document or schedule a call with an Amazon rep.
Once everything is submitted, expect to wait up to three business days. After that, you can start selling on Amazon right away.
Choosing what to sell on Amazon
Once you’re verified, it’s worth doing some research. The goal is to capitalize on what’s already selling and emerging trends.
Amazon publishes lists, like Best-sellers, Hot New Releases, and Movers & Shakers. Review these over a week or two and see what’s constantly popping up. Or, as an entrepreneur, identify market gaps and develop products that will fill them.
It’s also worth exploring underserved niches, where the sales volumes may not be as big, but you can capture more of the market.
Download the Seller Central app and explore. You can scan items in your home to get a feel for the app and get used to the fee structure. It may seem like the profit margin is huge, but once Amazon’s fees for referral and fulfillment (if using FBA) are applied, that may not be the case.
Amazon seller fees explained
Amazon fees don’t have a one-size-fits-all structure. Depending on your chosen seller model, you can deal with the following:
- Selling fees: These apply to the Individual plan, where every item has an additional $0.99 fee.
- Referral fees: Think of this as the cost to access Amazon’s wide audience. These typically range from 8% to 15% of the product selling price, but can go as high as 45%.
- FBA fees: This is the cost to have Amazon do all the work, and it is calculated based on weight.
- Shipping fees: This applies to FBA sellers, as there is a charge to ship bulk items to Amazon (although discounted), and FBM Amazon sellers who need to ship to customers directly.
- Storage fees: FBA sellers have to pay storage fees to use space in the Amazon warehouses. The cost is charged monthly and depends on the product size and how long it’s been there.
All of this information is available for each existing product in the Amazon Seller Central app. You can enter the cost of the item, and it will tell you your potential profit.
Creating your first product listing
As a new seller, it’s probably best to focus on selling existing products, rather than creating your own. To add a branded product, you often need to be the manufacturer or brand owner.
Selling existing products is known as retail arbitrage, and the idea is to source the product for significantly lower than the Amazon price. This is the best way for new sellers to get a feel for the system.
Now, if you’re manufacturing your own brand of product, you’ll need to create a new listing. Here’s how:
- Log in to Seller Central
- Go to Inventory, then click Add a Product
- Find the product category (health and beauty, consumer electronics, etc.)
- Enter the product number—UPC, EAN (European Article Number), or ISBN (International Standard Book Number), unless exempt.
- Create a title that’s keyword-centric and clear
- Add the brand/manufacturer and a product description with key features
- Enter the keywords that apply to the item
- Enter details about the Amazon selling price and quantity
- Upload photos
- Choose FBA or FBM
For the best chance at success, make sure the listing content is keyword-rich without feeling like keyword stuffing. Try to ensure that the photos are clear and demonstrate the item’s features, and be persuasive as to why the customer needs it.
Managing your FBA inventory
Now that you’ve got the listings, you’ll likely want to get the items to Amazon. Consider starting with a smaller shipment so that you get a feel for the whole process and don’t risk too many long-term storage fees.
It’s also worth evaluating the sales volume and trying to anticipate when inventory needs to be refilled. Amazon has tools to help with that. The idea is never to run out of stock without overpaying for storage.
Growing your Amazon business
Once you’re starting to sell a few items on the Amazon Marketplace, you will likely want to scale up. Here are a few strategies to use:
- Pay-per-click programs. This is where you bid on a price to display your product ad over others. You can also pay to showcase your brand in a sponsored banner.
- Keyword optimization. If you own the listing, you can make changes to it. Play around with different keywords and evaluate the results until you land on something great.
- Stay in stock. Keep on top of your inventory. If you’re out of stock, new and repeat customers will buy from the competition.
- Manage reviews. Always respond immediately to any negative reviews. Never solicit reviews, as it goes against Amazon’s policies.
- Expand to other markets. When you start selling on Amazon in the US, your audience doesn’t have to stop there. Get approved for other Amazon Marketplaces, like Canada and the UK, to reach even more potential buyers.
Start your Amazon selling journey today
All it takes to become an Amazon seller is an account, detailed product research, and some inventory. Always be looking for the next great product and monitor your sales and inventory closely.
Like many ventures, you get out of it what you put in, so be prepared to work for a few months to figure things out without making an income. Investing in a product is investing in your future, so expect the startup costs to be a minimum of $1,000. You may consider looking into a business loan if needed.
Above all, you want to stay compliant with all of Amazon’s policies (there are plenty) and resolve any customer complaints immediately. Don’t be afraid to try out different options, knowing you can adjust your plan or selling model easily.
FAQ
How much money do I need to start selling on Amazon?
To get an Amazon Seller account, technically, all you need is $39.99 for a Professional plan. Alternatively, if you want to judge the viability first, you can set up a free Individual account.
What are the most profitable product categories for new sellers?
It’s best to start with consumer electronics, toys and games, and home, garden, and office products as these are generally profitable.
How long does it take to make your first sale on Amazon?
Not long. If you’re using FBA, as soon as your product is with Amazon, you can make a sale.
Do I need a business license to sell on Amazon?
No, you don’t generally need a business license to start selling on Amazon. You can start as a sole proprietor and expand to a Limited Liability Company (LLC) in the future. State-specific rules may apply so it’s worth checking locally, too.
What’s the difference between private label and retail arbitrage?
Private label is when you develop and manufacture your own product, and you own the brand. Retail arbitrage is a popular selling style where you take existing products, often purchased at a discount, and resell them on the Amazon Marketplace.
How do I handle returns and customer service as an Amazon seller?
As an FBA seller, Amazon handles all the returns and customer service on your behalf. As an FBM seller, you’ll automatically be enrolled in Amazon’s pre-paid return shipping program. Otherwise, you are required to respond to all customer service and return inquiries yourself within 24 hours.