Starting a business on Amazon can open doors to vast opportunities. With millions of active shoppers, selling on Amazon gives you access to a global marketplace. However, understanding how to navigate the platform is crucial for success. From choosing the right business model to optimising your listings, every step matters. This guide will help you make informed decisions and set up your Amazon store for growth.

A quick guide to selling on Amazon

Selling on Amazon offers a global platform for businesses to reach millions of customers. You can choose between different selling models like Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM). By conducting thorough research, optimising product listings, and managing costs, you can grow your business. With the right strategy and support, selling on Amazon can be highly rewarding.

Why selling on Amazon is a great opportunity

Amazon is a global leader in e-commerce, attracting millions of shoppers daily. It offers businesses a powerful way to reach customers, scale operations and increase sales. Whether you are new to selling online or already run an ecommerce business, selling in Amazon stores provides access to a vast marketplace.

This guide is for small businesses, growing brands and large enterprises looking to sell products and expand their online presence. If you are a new seller, understanding Amazon’s structure is key. From selecting a selling plan to managing order fulfilment, every step impacts your success. This guide will walk you through the essentials, helping you create a selling account, list products and grow your business efficiently.

Key factors to consider before you start selling

• Choosing the right business model – Decide whether to use Fulfilment by Amazon (FBA) or handle shipping yourself. Will you sell private-label products, wholesale or through retail arbitrage?
• Understanding selling fees – Amazon charges referral fees and fulfilment costs. Knowing these expenses helps control costs with Amazon and maximise profits.
• Optimising product listings – Creating a strong product detail page improves visibility and helps you build customer trust.

How tools can help you for seamless management

Selling with Amazon offers many benefits, but managing paperwork can be time-consuming. Business Kitz provides ready-to-use legal and business document templates, helping you handle contracts, policies and compliance with ease. Whether you need to register a business, draft agreements, digitally sign agreements, or manage records, our tools simplify your workflow.

Let’s dive into everything you need to know about selling on Amazon and how to set up for success.

 

 

How to sell on Amazon: Choosing the right business model

Before you start selling on Amazon, you need to choose the right business model. Your choice affects costs, logistics and growth potential. Whether you are an individual seller or a business owner, understanding the available options helps you make the best decision.

Individual vs professional seller accounts

Amazon offers two types of selling accounts:

• Individual plan – Best for new or occasional sellers. You pay a small fee per sale instead of a monthly subscription. This is ideal if you sell fewer than 40 items per month.
• Professional selling plan – Best for businesses looking to scale. You pay a monthly fee, which allows you to list unlimited products and access advanced selling tools.

Fulfilment options

You can manage shipping yourself or let Amazon handle it.

• Fulfilled by Merchant (FBM) – You store inventory, pack orders and handle customer service. This option gives you more control but requires time and resources.
• Fulfilment by Amazon (FBA) – Amazon stores, packs and ships your products directly to customers. This service also includes customer support and prime shipping benefits.

Selling approaches

There are different ways to source and sell products on Amazon.

• Private label – You create an Amazon brand and sell unique products under your own label.
• Retail arbitrage – You buy discounted items from retail stores and resell them for a profit.
• Wholesale – You buy products in bulk from suppliers and sell them at a higher price.

Comparison of selling models

 

Model	Pros	Cons
FBM	Lower fees, full control over shipping	Requires storage space and handling logistics
FBA	Faster shipping, Amazon handles customer service	Additional costs, reliance on Amazon’s storage
Private label	Builds brand identity, higher profit margins	Requires marketing and product development
Retail arbitrage	Low upfront costs, easy to start	Limited scalability, time-consuming sourcing
Wholesale	Bulk discounts, steady supply	Requires large initial investment

Choosing the right model depends on your budget, time and long-term goals. By selecting the right approach, you can grow your business effectively and start selling today.

Start selling with the right product and market research

Choosing the right product and understanding market trends are key to success on Amazon. You need to find profitable products, study competitors and ensure compliance with legal requirements.

Selecting a profitable product

Not all products sell well on Amazon. To maximise your chances of success, focus on:

• High demand, low competition – Look for products that sell consistently but have fewer competitors.
• Evergreen vs trending products – Evergreen products sell year-round, while trending products can bring quick profits but may not last.
• Avoiding restricted categories – Amazon has strict rules for certain items, such as health products, electronics and branded goods. Check Amazon’s restricted categories before listing a product.
• Profit margins – Consider product costs, shipping fees and Amazon charges. A good rule is to aim for at least a 30% profit margin.

Using Amazon research tools

Market research tools help you find winning products and understand demand.

• Amazon Best Sellers – Shows top-selling products in each category.
• Google Trends – Identifies growing interest in certain products over time.
• Amazon seller app – Packed with features to help track sales, trends and competition.
• Keyword research tools – Tools like Helium 10 and Jungle Scout show what customers search for on Amazon.

Competitor analysis

Study top-performing sellers to identify gaps in the market.

• Check product listings – Look at product detail pages of bestsellers to understand what makes them successful.
• Read product reviews – Find common complaints and improve your product based on customer feedback.
• Analyse pricing strategies – Compare selling prices and selling fees to ensure profitability.

Legal and compliance considerations

Before you start selling, make sure your business meets legal requirements.

• Business registration – Register as a sole trader, partnership or company.
• Tax compliance – Understand GST obligations and income tax for your eCommerce business.
• Product safety standards – Follow regulations for product labelling, warranties and consumer rights.

Tools to make it easy for you 

Setting up an Amazon store involves legal paperwork. Business Kitz provides business documentation to help you build a strong foundation. From business forms to legal templates, they simplify the process so you can focus on selling. Set up your free account here. 

 

 

Mastering product reviews and customer trust

Product reviews influence sales, rankings and customer trust. Buyers rely on feedback before making a purchase. More positive reviews can help you increase sales and grow your business.

Why reviews matter

Reviews affect how well your product ranks and how buyers see your brand.

• Higher sales – More reviews build trust and increase conversions.
• Better rankings – Amazon’s algorithm favours products with more reviews and higher ratings.
• Brand reputation – Positive reviews attract repeat buyers and improve credibility.
• Competitive advantage – Products with strong reviews stand out in search results.

How to encourage customer feedback ethically

Amazon has strict rules on requesting reviews. Use these methods to get genuine feedback:

• Provide excellent service – Fast shipping and quality products lead to happy customers.
• Send follow-up emails – Politely ask customers to leave a review through Amazon’s system.
• Use packaging inserts – Include a thank-you note with a review request.
• Leverage the Amazon seller app – Track customer orders and respond quickly to issues.

Avoiding Amazon policy violations

Amazon doesn’t allow fake or incentivised reviews. Breaking these rules can lead to account suspension.

• Do not offer free products or rewards for reviews.
• Do not post fake reviews from multiple accounts.
• Do not pressure customers to leave positive feedback.

Handling negative reviews

Negative reviews can harm your sales. Handle them professionally.

• Respond quickly – Apologise and offer a solution.
• Address concerns – Fix common issues to prevent future complaints.
• Learn from feedback – Use reviews to improve your product and service.

Building trust takes time. Honest reviews and great service help you create an Amazon brand that customers trust.

Understanding Amazon seller fees and pricing strategies

Selling on Amazon comes with costs that impact your profit. Understanding these fees and choosing the right pricing strategy can help you maximise earnings.

Amazon fees breakdown

Amazon charges different fees depending on your selling plan and fulfilment method.

• Referral fees – A percentage of each sale, varying by category.
• Fulfilment costs – Fees for storing and shipping products through Fulfilment by Amazon (FBA).
• Subscription fees – The individual plan has no monthly fee but charges per sale, while the professional plan has a fixed monthly fee.
• Other fees – Additional selling costs may include high-volume listing fees and long-term storage fees.

Fee type	Individual plan	Professional plan
Subscription Fee	$0/month + per sale fee	Fixed monthly fee
Referral Fees	% of each sale	% of each sale
Fulfilment Fees	Pay for shipping	FBA or self-fulfilment
Additional Selling Costs	High-volume listings, storage fees	Advanced tools & advertising options

Pricing strategies for success

Choosing the right pricing model helps you stay competitive.

• Competitive pricing – Adjust your price based on market trends and rival sellers.
• Value-based pricing – Price products according to perceived customer value.
• Dynamic repricing – Use automation tools to update prices based on demand.

Calculating profitability and avoiding hidden costs

Factor in all costs before setting a price.

• Use the Amazon seller app – Estimate profits using built-in calculators.
• Monitor your account health – Avoid penalties or unnecessary fees.
• Control costs with Amazon – Choose the right fulfilment method to reduce expenses.

Understanding pricing and fees will help you build a profitable Amazon business while staying competitive.

Overcoming common hurdles when selling on Amazon

Starting an Amazon business comes with challenges. Understanding these issues and planning ahead can help you succeed.

Challenges new sellers face

Many new sellers struggle with:

• High competition – Many sellers offer similar products, making it hard to stand out.
• Logistics issues – Managing shipping, storage and customer service can be complex.
• Selling fees – Amazon charges referral, fulfilment and subscription fees that affect profits.
• Product restrictions – Some categories require approval, limiting product choices.

Solutions to get started successfully

Overcoming these hurdles requires the right strategy.

• Choose a niche with less competition – Research trending products with lower saturation.
• Use Fulfilment by Amazon (FBA) – Amazon handles storage, shipping and customer service, allowing you to focus on sales.
• Optimise product listings – Use clear descriptions, high-quality images and relevant keywords to attract buyers.
• Understand Amazon fees – Calculate total costs before pricing products to ensure profitability.
• Monitor account health – Keep good performance metrics to avoid penalties.

How to simplify contracts and documentation

Selling on Amazon involves handling legal and business documents. Business Kitz provides:

• Legal templates – Ready-to-use agreements for business operations.
• Compliance support – Guidance on tax obligations and business policies and procedures.
• Business documentation – Contracts, terms and policies to protect your business.

By preparing early and using the right tools, you can start selling today with confidence.

 

 

Is selling on Amazon worth it for your business?

Selling on Amazon offers opportunities but also comes with challenges. Understanding the pros and cons can help you decide if it suits your business.

Pros of selling on Amazon

Many businesses choose Amazon because it offers:

• Access to millions of buyers – Amazon attracts a global audience, helping sellers reach more customers.
• A scalable business model – Whether you sell a few products or thousands, Amazon can support your growth.
• Fulfilment by Amazon (FBA) support – Amazon handles storage, shipping and customer service, reducing workload.
• Built-in trust – Customers feel confident buying from Amazon, increasing sales potential.

Cons of selling on Amazon

Despite the benefits, there are challenges:

• High competition – Many sellers compete in the same categories, making it harder to stand out.
• Fees that impact profits – Amazon charges referral fees, fulfilment costs and subscription fees. These can reduce margins if not managed well.
• Strict policies – Amazon enforces strict rules on pricing, customer service and account health. Sellers must follow these to avoid penalties.

Who should consider selling on Amazon?

Selling on Amazon works best for businesses that:

• Have scalable products – Items that can be sold in large volumes.
• Offer in-demand products – Popular or niche products with consistent demand.
• Can manage Amazon fees – Sellers who calculate costs carefully to maintain profits.

Final verdict: balancing opportunity with business goals

Selling on Amazon can be profitable if you plan well. Consider your product, costs and competition before starting. If your business aligns with Amazon’s model, it can be a great way to grow your business.

FAQ: Selling on Amazon

What is seller central and how do I use it?

Seller Central is where you manage your Amazon seller account. It’s where you list products, track inventory, and access reporting tools. You can use it to update product listings and monitor sales performance. If you’re new to selling on Amazon, it's a good starting point to set up your seller account and manage everything.

How do I start selling on Amazon Australia?

To sell on Amazon Australia, you need to create a seller account on Seller Central. After that, you can list your products, choose a fulfilment method (FBA or FBM), and begin making sales. It’s important to do product and market research to understand the demand before you start.

What is the new seller guide for selling on Amazon?

The new seller guide covers everything you need to know when you become an Amazon seller. It includes setting up your Seller Central account, listing products, fulfilling orders, and understanding fees. The guide is a great resource to get started and learn about Amazon's tools and features for your business.

How do I sell on Amazon if I have a brand?

If you have a brand, you can register with Amazon Brand Registry. This helps protect your brand and gives you access to additional marketing tools. Registering also allows you to use the Enhanced Brand Content feature for better product listings.

Do I need an Amazon seller account to sell in the Amazon store?

Yes, to sell in the Amazon store, you need an active Amazon seller account. You’ll use Seller Central to manage your listings, customer orders, and payments. Whether you’re new or experienced, an Amazon seller account is essential.

How does Amazon Global Selling work?

Amazon Global Selling allows you to expand your online business to international markets. It lets you list products on Amazon's marketplaces in other countries. With Amazon Global Selling, you can reach customers worldwide and grow your business beyond your local market.

How can I manage inventory on Amazon?

Amazon provides inventory management tools within Seller Central. You can track your stock levels, set up alerts for low inventory, and use FBA to store and ship your products. These tools help you keep your inventory organised and prevent stock outs.

What are the advantages of selling on Amazon?

Selling on Amazon offers many advantages. Amazon’s massive customer base means more exposure. The platform also provides access to tools like Amazon Ads to help promote your products. You can also leverage Amazon Prime for fast shipping and customer trust, helping you grow your business wherever you are.

What is the referral fee and how does it affect my sales?

When you sell on Amazon, you pay a referral fee for each product sold. The fee is a percentage of your sale price, and it varies by category. Understanding referral fees helps you price your products properly to maximise your profits.

How can Amazon advertising help me grow my business?

Amazon advertising lets you promote your products on Amazon’s platform. You can use tools like Amazon Ads and Sponsored Products to increase visibility. This can lead to higher sales and help you get more customers to your listings.

Should I register for Amazon Brand Registry?

Yes, if you want to protect your brand on Amazon, registering for Amazon Brand Registry is a good step. It gives you control over your product listings and provides tools for managing your brand. If you want to sell branded products, this feature helps you stand out.

How do I use Amazon's internal data to boost my sales?

Amazon’s internal data, such as customer reviews, sales reports, and keyword data, can help you optimise your listings and make better decisions. You can use this data to understand customer preferences, adjust pricing, and improve your product offerings.

What is selling on Amazon vs other platforms?

Selling on Amazon offers unique advantages like its large customer base and fulfilment options. However, compared to other platforms like eBay or Etsy, Amazon’s fees and competition can be higher. It’s important to compare selling on Amazon vs other platforms to decide where your products fit best.

How can I get started with selling on Amazon Prime?

To sell on Amazon Prime, you need to use Fulfilled by Amazon (FBA). This allows your products to be eligible for Prime shipping, which boosts visibility and increases sales potential. Once enrolled in FBA, your products will be eligible for Prime’s fast shipping benefits.

What if I want to sell in restricted categories?

Some categories on Amazon, like health or electronics, require approval. To sell in restricted categories, you must apply and meet Amazon's criteria. Make sure you understand the rules and get approval before listing products in these areas.

What do I need to do to list my product on Amazon?

To list a product, first ensure your product meets Amazon's requirements. Create a product listing through Seller Central, including product details like descriptions and images. Set your price, fulfilment method, and shipping options before you can start selling.

How does Amazon help you grow your business?

Amazon offers several tools to help you grow your business. Seller Central is a great place to track sales and inventory. You can also use Amazon advertising, research tools, and the FBA program to reach more customers and scale your business.

How do I optimise my product listings for success?

To optimise your listings, focus on clear product titles, high-quality images, and relevant keywords. Include all necessary details like product features and benefits. A well-optimised listing improves your visibility and helps attract more customers.

Take the next step in your Amazon journey

Selling on Amazon offers growth opportunities, but success requires planning.

Key takeaways

• Choose the right business model – Select an individual or professional selling plan that suits your goals.
• Research your market – Find profitable products and understand your competition.
• Optimise pricing and reviews – Set competitive prices and encourage customer feedback to build trust.

Get started with confidence

Selling on Amazon involves business and legal requirements. Business Kitz provides essential documents to help you start and grow with ease. Try Business Kitz today to simplify your business operations.

Disclaimer: This content is intended to be used for educational and informational purposes only. Business Kitz does not offer legal advice and cannot guarantee the accuracy, reliability, or suitability of its website content for a particular purpose. We encourage you to seek professional advice from a licensed professional and verify statements before relying on them. We are not responsible for any legal actions or decisions made based on the information provided on our website.

Unless expressly stated otherwise, all content, materials, text, images, videos and other media on this website and its contents are the property of their respective copyright owners.