How to sell on Amazon: Simple steps to start your business

Published Wednesday 5 November 2025

Table of contents

• Why sell on Amazon
• Choose between Individual and Professional selling plans
• Understand Amazon's fee structure so you know your costs
• Create a new Amazon account in your business name
• Complete account verification requirements
• Fill in the required Amazon account details, including billing information
• Find a price that's profitable and competitive
• Choose the right category for the products you sell
• Use great content to increase your sales
• Think about whether to ship products yourself or use Fulfillment by Amazon (FBA)
• Start small – test the market with a few products
• Use Amazon's reporting to fine-tune your sales strategy
• Measure everything you can, especially when making changes
• Managing your Amazon business finances
• FAQs on selling on Amazon

Key takeaways

• Choose the Professional selling plan if you plan to sell more than 40 items monthly, as it provides better value with a flat $39.99 monthly fee instead of per-item charges, plus access to advanced tools and advertising options.

• Research competitor pricing thoroughly and use tools like Profit Bandit to calculate all costs including Amazon's 8-15% selling fees, ensuring your prices remain both competitive and profitable.

• Optimize your product listings with strategic keywords, complete product information, and professional photography to improve search rankings and conversion rates on Amazon's marketplace.

• Start with a small product selection to test the market and learn Amazon's processes, then use Amazon's reporting tools to track inventory performance, sales trends, and promotion effectiveness to refine your strategy.

Why sell on Amazon

Selling on Amazon gives your business access to a large audience of customers who are ready to buy. It helps you grow your sales and build your brand on a trusted, global platform. You can use Amazon's logistics and tools, so you can focus more on your products and less on the complexities of ecommerce.

Choose between Individual and Professional selling plans

Amazon offers two main selling plans to fit your business goals. Choose the plan that best fits your needs.

• The Individual plan is great if you're just starting out or plan to sell fewer than 40 items a month. You pay a small fee for each item you sell, which costs $0.99 per item sold, with no monthly subscription cost.
• The Professional plan is designed for businesses planning to sell more than 40 items a month. It has a flat monthly subscription fee but no per-item selling fee, and it gives you access to advanced selling tools, reporting, and advertising options.

Understand Amazon's fee structure so you know your costs

Amazon's fee structure includes monthly subscription fees plus per-sale charges that vary by product category.

Professional account costs

• Monthly fee: The Professional selling plan costs $39.99 (USD) per month for unlimited listings
• Selling fees: 8 – 15% of each sale (varies by category)
• Additional charges: Payment processing, shipping (if using Fulfilment by Amazon (FBA))

Total cost impact: Expect fees to represent 15% or more of your revenue, depending on your product mix.

Create a new Amazon account in your business name

Separate business accounts keep your selling activities distinct from personal purchases and create a professional image.

Why you need a dedicated seller account

• Financial clarity: Easier bookkeeping and tax preparation
• Professional appearance: Builds customer trust
• Account protection: Prevents personal account issues affecting your business

Create a new Amazon account specifically for selling, even if you already have a personal account.

Complete account verification requirements

Amazon verifies your identity and business information to keep its marketplace safe and trusted. You'll be asked to provide documents to confirm your details. This typically includes a government-issued ID, bank account statements, and proof of your business registration. Have these documents ready to speed up the setup process.

Fill in the required Amazon account details, including billing information

Amazon requires your company details and a credit card number to charge monthly subscription fees or cover a negative account balance.

Find a price that's profitable and competitive

Competitive pricing balances customer attraction with profitable margins. Your price must cover all costs while remaining competitive.

Essential pricing steps:

• Research competitors: Check similar products' pricing on Amazon
• Calculate true costs: Use accounting software to include all expenses
• Validate profitability: Tools like Profit Bandit analyse 15 factors including Amazon fees and shipping

Key insight: Pricing too low can hurt profits more than pricing slightly higher than competitors.

Choose the right category for the products you sell

Amazon has more than 20 different categories. Picking the right one will help customers find your product. There are restrictions on some items being sold. Find out more about category, product and listing restrictions.

Use great content to increase your sales

Great product contentdirectly affects your sales by helping customers find and choose your products over competitors.

Content optimization essentials:

• Strategic keywords: Include terms customers actually search for in titles and descriptions
• Complete information: Answer common customer questions upfront
• Use professional photography: Show high-quality images to increase conversion rates
• Promote on social media: Share product features and benefits across your channels

Result: Well-optimised listings rank higher in Amazon search and convert more browsers into buyers.

Think about whether to ship products yourself or use Fulfillment by Amazon (FBA)

Fulfillment options determine how your products reach customers and significantly impact your costs and sales potential.

Fulfilment by Amazon (FBA):

• Benefits: Amazon stores, packs, ships and handles returns for you
• Advantage: You can increase sales with Prime eligibility
• Cost: Higher fees but often worth the conversion boost

Self-fulfilment:

• Benefits: Lower fees, more control
• Drawback: You may sell less without the Prime badge
• Best for: Higher margin products where shipping costs do not deter buyers

Decision tool: Use accounting software to model both scenarios with your specific products and margins.

Start small – test the market with a few products

If you are new to online selling, start with a few products to learn the process. Nearly half of all new Amazon stores launch in less than three months. Get to grips with billing, payment handling and customer service.

Make the most of customised offers and special promos

Offer special promotions, gift-wrapping and unique sales items to stand out from your competitors.

Use Amazon's reporting to fine-tune your sales strategy

Amazon's reporting tools in Seller Central give you data to make informed decisions about inventory and sales strategy.

Key reports to monitor:

• : Track what's selling and what's sitting
• Sales trends: Identify patterns and growth opportunities
• Promotion effectiveness: Measure which offers drive results

Seasonal planning insight: Sales during the holiday period can triple your normal volume, so plan inventory and cash flow accordingly. During the 2021 holiday period, third-party sellers sold an average of 11,500 products per minute. Start preparing two to three months before peak seasons.

Measure everything you can, especially when making changes

Performance measurement ensures every change you make actually improves your results rather than hurting them.

Testing approach:

• Baseline measurement: Record current performance before changes
• Single variable testing: Change one thing at a time
• Results analysis: Compare before and after data objectively

Track these key metrics: Sales volume, conversion rate, profit margins, and customer feedback scores.

Use data to make smart decisions as your business grows. You will need robust financial systems to track profitability across multiple products and manage marketplace selling.

Managing your Amazon business finances

Once you start selling, keep your finances in order to understand your profitability. It is more than just sales; you need to track Amazon fees, shipping costs and other expenses.

Using Xero accounting software connects to your bank and sales channels, shows your real-time cash flow and automates bookkeeping tasks, so you can spend less time on administration and more time growing your business.

FAQs on selling on Amazon

Here are answers to some common questions about becoming an Amazon seller.

How much does it cost to be a seller on Amazon?

Costs vary depending on your selling plan. The Individual plan has no monthly fee, but you pay $0.99 per item sold, plus other selling fees. The Professional plan costs $39.99 per month, plus other selling fees, but has no per-item charge.

Can I make $1000 a month selling on Amazon?

Yes, many sellers achieve this and more. Data shows that 58% of Marketplace sellers turn a profit within their first year. Your product choice, pricing strategy and marketing efforts all affect your results. With the right approach, you can reach a goal of $1,000 a month.

Is Amazon selling worth it in Australia?

For many Australian businesses, selling on Amazon is a valuable way to reach a large national customer base and increase sales. Research your product market and understand the fees involved to decide if it is the right fit for your business.