How to sell on Amazon: steps, fees and pricing guide

Published Thursday 16 April 2026

Table of contents

• Why sell on Amazon
• Find the right products to sell on Amazon
• Choose between Individual and Professional selling plans
• Understand Amazon's fee structure so you know your costs
• Set up your Amazon seller account
• Choose the right category for the products you sell
• Create effective product listings that drive sales
• Find a price that's profitable and competitive
• FAQs on selling on Amazon

Key takeaways

• Choose the Professional selling plan if you expect to sell more than 40 items per month, as the flat $39.99 monthly fee works out cheaper than paying $0.99 per item and gives you access to advanced reporting and advertising tools.
• Calculate all your costs before setting prices, including Amazon's referral fees of 8–15% per sale and any Fulfilment by Amazon (FBA) charges, so your prices stay both competitive and profitable.
• Optimise your product listings with relevant keywords, complete product details, and professional photos to rank higher in Amazon's search results and turn more browsers into buyers.
• Start with a small product range to test the market and learn Amazon's processes, then use Amazon's reporting tools to track sales trends and refine your strategy over time.

Why sell on Amazon

When you sell on Amazon, you connect your business to millions of active buyers on a trusted global marketplace. Instead of building your own ecommerce infrastructure, you can tap into Amazon's ready-made audience and logistics.

Key benefits for small businesses:

• massive customer reach: Access millions of shoppers actively searching for products to buy
• built-in trust: Customers already trust Amazon's checkout, delivery, and returns process
• simplified logistics: Use Amazon's warehousing and shipping through Fulfilment by Amazon (FBA)
• lower barrier to entry: Start selling without building your own website or payment systems

Find the right products to sell on Amazon

When you choose the right product, you create the foundation of a successful Amazon business. You want items that have steady demand but aren't overly competitive.

What to look for in a product:

• high demand: Look for products that customers search for regularly throughout the year
• low competition: Avoid categories dominated by major household brands
• good profit margins: Aim for products that you can sell for more than your cost to manufacture and ship
• easy to ship: Small, lightweight items cost less to store and send to customers

Choose between Individual and Professional selling plans

Amazon's selling plans determine your monthly costs and access to seller tools. Choose based on how many items you expect to sell each month.

Individual plan:

• cost:$0.99 per item sold, no monthly subscription
• best for: Sellers expecting fewer than 40 sales per month
• includes: Basic listing and selling features

Professional plan:

• cost: $39.99 per month, no per-item fee
• best for: Sellers expecting more than 40 sales per month
• includes: Advanced reporting, advertising options, and bulk listing tools

If you sell more than 40 items monthly, the Professional plan costs less. At 40 items, both plans cost the same ($39.60 vs $39.99).

Understand Amazon's fee structure so you know your costs

Amazon's fee structure combines what you pay to subscribe with per-sale charges that vary by product category. When you understand these fees, you can price products profitably.

Core fees to expect:

• monthly subscription:$39.99 for Professional plan or $0.99 per item for Individual plan
• referral fees: 8–15% of each sale price, depending on product category
• payment processing: Included in referral fees for most categories
• FBA fees: Additional charges for storage and shipping if you use Fulfilment by Amazon

Plan for fees to represent 15–20% of your revenue before product costs. For a $50 product, expect $7.50–$10 in Amazon fees per sale.

Set up your Amazon seller account

Setting up your account takes 15–20 minutes if you have all required documents ready. A dedicated business account keeps what you sell separate from what you buy personally and creates a professional image for customers.

What you'll need:

• government-issued ID (passport or driver's licence)
• bank account statement from the last 90 days
• business registration details or Australian Business Number (ABN), keeping in mind that you must register for Goods and Services Tax (GST) when your business turnover reaches $75,000 or more
• credit or debit card for fee payments
• business phone number and email address

How to create your seller account:

1. Go to sell.amazon.com.au and select "Sign up"
2. Create a new Amazon account using your business email address
3. Select your selling plan (Individual or Professional)
4. Enter your business name and contact details
5. Provide your bank account information for receiving payments
6. Add your credit card for monthly fees and any negative balance
7. Upload your identity documents for verification
8. Complete the verification process (usually within 24–48 hours)

When you keep business and personal accounts separate, you make it easier to track your books, protect your personal account from business issues, and build customer trust with a professional seller name.

Choose the right category for the products you sell

Product categories determine where your listings appear in Amazon's search and browse structure. When you choose the correct category, customers can find your products more easily, and it affects your referral fees.

How to select the right category:

• search for similar products on Amazon and note which categories they appear in
• choose the most specific subcategory that accurately describes your product
• check if your category requires approval before listing (some categories are restricted)
• review the referral fee percentage for your category (ranges from 8–15%)

Restricted categories: Amazon restricts some categories and requires approval before you can list products, including clothing, beauty, and grocery items. Check Amazon's category requirements before sourcing inventory in restricted categories.

If you list in the wrong category, fewer customers may see your products in search results, and you may violate Amazon's policies, which could lead Amazon to remove your listing.

Create effective product listings that drive sales

Product listings are your storefront on Amazon. Well-optimised listings rank higher in search results and convert more browsers into buyers.

What makes a listing effective:

• write keyword-rich titles: Include your main search terms, brand name, key features, and size or quantity in the first 200 characters
• answer customer questions upfront: Address common concerns about size, materials, compatibility, and use cases in your bullet points
• use all available image slots: Show your product from multiple angles, in use, and with size reference objects
• write benefit-focused descriptions: Explain how your product solves problems, not just what it does
• include complete specifications: Add dimensions, weight, materials, and compatibility details

Listing optimisation tips:

• research competitor listings to identify keywords they use
• read customer questions and reviews on similar products to find information gaps
• update your listings based on the questions customers ask after purchase
• test different main images to see which drives higher click-through rates

Find a price that's profitable and competitive

Pricing competitively means setting prices that cover all your costs while remaining attractive compared to similar products. Your price needs to account for product cost, Amazon fees, shipping, and your target profit margin.

How to set profitable prices:

• research what competitors charge for similar products
• calculate your total costs including product cost, Amazon fees, and shipping
• add your desired profit margin to determine your selling price
• monitor competitor prices regularly and adjust your pricing as needed
• use Amazon's automated pricing tools to stay competitive while protecting your margins

Manage your Amazon sales finances with Xero

Xero Accounting Software connects to your bank accounts and integrates with ecommerce tools, making it straightforward to reconcile Amazon payouts and track every fee.

Whether you're a side seller or building a full-time Amazon business, having your finances in order from day one makes growth much smoother. Get one month free and see how Xero simplifies your Amazon accounting.

FAQs on selling on Amazon

Here are answers to common questions about selling on Amazon.

How much does it cost to start selling on Amazon?

You can start with the Individual plan at $0.99 per item sold, with no upfront costs. You'll need inventory to sell and may want to budget for professional product photography. The Professional plan costs $39.99 per month and makes sense if you sell more than 40 items monthly.

Do I need a business licence to sell on Amazon?

You don't need a business licence to start selling on Amazon Australia, but you should register for an ABN. When your turnover reaches $75,000 or more, you must register for GST.

What can't I sell on Amazon?

Amazon restricts certain products including weapons, alcohol, live animals, and some categories like clothing and beauty require approval. Check Amazon's restricted products list before sourcing inventory.

How do I get paid as an Amazon seller?

Amazon pays you every two weeks via direct deposit to your nominated bank account. They hold funds for 14 days after your first sale to protect against returns and chargebacks.

Should I use Fulfilment by Amazon (FBA)?

FBA makes sense if you want Amazon to handle storage, packing, and shipping. Your products become eligible for Prime shipping, which can increase sales. However, FBA adds storage and fulfilment fees, so calculate whether the convenience and increased visibility justify the costs for your products.