How to sell on Amazon: a step-by-step guide for beginners

Published Friday 5 June 2026

Table of contents

• Why sell on Amazon?
• How much does it cost to sell on Amazon?
• How to set up your Amazon seller account
• How to research and choose products to sell
• How to price your products competitively
• How to create and optimise your product listings
• How to choose your fulfilment method
• How to promote and advertise your products
• How to manage and grow your Amazon business
• How to manage your Amazon finances with accounting software
• Simplify your Amazon selling journey with Xero
• FAQs on selling on Amazon

Key takeaways

• With millions of active sellers and a massive global customer base, Amazon is one of the most accessible platforms for growing an ecommerce business.
• Getting started requires choosing between an Individual or Professional selling plan, setting up your seller account, and deciding whether to fulfil orders yourself or use Fulfilment by Amazon (FBA).
• Competitive pricing, optimised product listings, and a solid advertising strategy are essential for standing out in a crowded marketplace.
• Connecting your Amazon sales to accounting software like Xero helps you track income, reconcile payments automatically, and stay on top of your cash flow.

Why sell on Amazon?

If you are looking for online business ideas, selling on Amazon is one of the most accessible ways to reach customers around the world.

Amazon has approximately 9.7 million sellers worldwide, with roughly two million actively selling on the platform. With over 300 million active customer accounts, Amazon offers a massive built-in audience that would be difficult to build on your own.

Third-party sellers account for about 60% of all sales on Amazon. That means independent businesses like yours are driving the majority of the platform's revenue. Whether you are selling from Hong Kong or anywhere else, Amazon provides the infrastructure, traffic, and trust to help you compete with established brands.

You can sell physical products, explore dropshipping, or even create your own private label brand. The barrier to entry is low, but building a profitable operation takes planning, research, and smart financial management.

How much does it cost to sell on Amazon?

Understanding the full cost structure is essential before you list your first product. Amazon charges several types of fees, and they can add up quickly if you do not plan for them.

Amazon offers two selling plans. The Individual plan costs US$0.99 per item sold, with no monthly subscription fee. The Professional plan costs US$39.99 per month and does not charge a per-item fee. If you plan to sell more than 40 items per month, the Professional plan is usually the better value.

On top of your plan fees, Amazon charges referral fees on every sale. These typically range from 8% to 15% of the selling price, depending on the product category. Some categories, like electronics accessories, fall at the lower end, while others, like clothing, sit closer to the top.

If you use Fulfilment by Amazon (FBA), you will also pay storage fees for keeping inventory in Amazon's warehouses, plus fulfilment fees for picking, packing, and shipping each order. Long-term storage fees apply to items sitting in warehouses for more than 365 days. You should also budget for advertising costs if you plan to run sponsored product campaigns.

How to set up your Amazon seller account

Setting up your seller account is straightforward, but you will need a few documents ready before you begin.

1. Choose your selling plan

Start by deciding between the Individual and Professional plans. The Individual plan works well if you are testing a small number of products. The Professional plan is better if you are serious about building a business, as it gives you access to advertising tools, bulk listing features, and eligibility for the Buy Box.

2. Register your account

Head to Amazon Seller Central and click the sign-up button. You will need to provide your business name, address, and contact information. Have your bank account details and a valid credit card ready, as Amazon requires both during registration.

3. Complete identity verification

Amazon requires identity verification for all new sellers. You will need to upload a government-issued photo ID (such as a passport or driving licence) and provide a bank statement or utility bill as proof of address. Amazon may also schedule a video call to verify your identity in person. The verification process typically takes a few days, though it can take longer in some cases.

How to research and choose products to sell

Product research is one of the most important steps in building a successful Amazon business. Choosing the wrong product can leave you with unsold inventory and thin margins.

Start by browsing Amazon's bestseller lists to identify trending products and popular categories. Amazon has more than 30 product categories, ranging from electronics and home goods to books and beauty products. Some of the most popular categories for new sellers include home and kitchen, health and personal care, and toys and games.

Use keyword research tools like Jungle Scout or Helium 10 to estimate search volume and competition for specific products. The Amazon Seller App is also a useful free tool for scanning products, checking prices, and reviewing sales ranks while you are out and about.

Pay close attention to category restrictions. Some categories require Amazon's approval before you can list products, and certain brands are gated to prevent counterfeit goods. Check whether your chosen product falls into a restricted category before investing in inventory. Resources like the International Trade Centre can help you research market demand and trade data for specific product categories.

How to price your products competitively

Getting your pricing right can make the difference between a profitable product and one that barely breaks even.

Start by analysing what your competitors charge for similar products. Look at both the listing price and whether they offer free shipping, as customers factor both into their buying decisions. Your goal is to find a price point that is competitive while still leaving enough margin to cover your costs.

Factor in every expense when calculating your target price: product cost, shipping to Amazon's warehouses (if using FBA), referral fees, fulfilment fees, advertising spend, and any returns or refunds. Use accounting software to model different pricing scenarios and understand exactly how much profit you keep on each sale.

Amazon's Automate Pricing tool can help you stay competitive by automatically adjusting your prices based on rules you set. For example, you can set a rule to match the lowest price in your category, as long as it stays above your minimum profitable price.

How to create and optimise your product listings

Your product listing is your storefront on Amazon. A well-optimised listing helps customers find your product and convinces them to buy.

Write clear, keyword-rich product titles that include your brand name, key features, and the most relevant search terms. Keep titles informative without stuffing in unnecessary words. Amazon's search algorithm weighs the title heavily, so this is your best opportunity to rank for important keywords.

Upload high-quality images that meet Amazon's requirements: a minimum of 1,000 x 1,000 pixels with a pure white background for the main image. Include multiple angles, close-up shots of key features, and lifestyle images showing the product in use. Listings with more images tend to convert better.

Use bullet points to highlight your product's key features and benefits. Focus on what matters most to buyers: size, material, compatibility, and unique selling points. Keep each bullet concise and easy to scan.

Write a detailed product description that expands on your bullet points. This is your chance to tell a story about the product, address common questions, and overcome objections. Do not forget to add backend search terms in Seller Central, as these hidden keywords help your product appear in more searches without cluttering your visible listing.

How to choose your fulfilment method

How you get products to your customers is a critical decision that affects your costs, customer experience, and scalability.

Fulfilment by Amazon (FBA) is the most popular option for sellers who want a hands-off approach. You send your inventory to Amazon's warehouses, and Amazon handles storage, picking, packing, shipping, returns, and customer service. Your products become eligible for Prime, which can significantly boost sales. The trade-off is that FBA fees can eat into your margins, especially for low-priced or heavy items.

Fulfilment by Merchant (FBM) means you handle everything yourself: storing inventory, packing orders, arranging shipping, and managing returns. FBM gives you more control over the customer experience and can be more cost-effective for oversized, slow-moving, or high-margin items. However, it requires more time and effort, and your products will not be Prime eligible unless you qualify for Seller Fulfilled Prime.

Many successful sellers use a combination of both methods. You might use FBA for your best-selling products to take advantage of Prime, while fulfilling slower-moving items yourself to keep storage costs down.

How to promote and advertise your products

Even the best product listing needs visibility to generate sales. Amazon offers several advertising options, and external marketing can amplify your results.

Amazon PPC (pay-per-click) advertising is the most direct way to boost visibility. Sponsored Products ads appear in search results and on product pages, targeting specific keywords. Sponsored Brands ads showcase your brand logo and a selection of products at the top of search results. Sponsored Display ads reach shoppers both on and off Amazon, retargeting people who have viewed your products or similar items.

Outside of Amazon, consider driving traffic through social media, email marketing, and content creation. Building an audience on platforms like Instagram or YouTube can create a steady stream of customers who come to your Amazon listings organically.

Amazon Brand Registry is worth pursuing if you have a registered trademark. It gives you access to enhanced brand content (A+ Content), brand analytics, and stronger protection against counterfeit listings. Customer reviews are also a powerful form of promotion. Follow up with buyers, provide excellent service, and encourage honest feedback to build social proof over time.

How to manage and grow your Amazon business

Once your products are live and selling, consistent management is what separates businesses that grow from those that stall.

Monitor your Seller Central dashboard regularly. Keep an eye on key metrics like your Order Defect Rate, Late Shipment Rate, and Customer Feedback Score. Amazon holds sellers to strict performance standards, and falling below their thresholds can result in account suspension.

Track your inventory levels carefully to avoid stockouts, which can hurt your search rankings, and overstocking, which leads to costly long-term storage fees. Set up reorder alerts so you can replenish popular items before they run out.

Manage customer reviews proactively. Respond to negative feedback promptly and professionally, and use customer suggestions to improve your products. As you build a solid track record, consider expanding into new product lines or categories. You can also learn how to dropship to test new products without holding inventory.

How to manage your Amazon finances with accounting software

As your Amazon business grows, managing your finances manually becomes increasingly difficult. Ecommerce accounting software helps you stay organised and make confident financial decisions.

Xero connects to Amazon through ecommerce apps like A2X, which automatically imports your Amazon settlement reports and breaks them down into individual transactions. This means your sales income, fees, refunds, and other charges are accurately recorded without manual data entry.

With your Amazon finances flowing into Xero, you can track sales income alongside revenue from other channels in one place. Automatic bank reconciliation matches your Amazon payouts to your bank deposits, saving you hours of manual work each settlement period.

Xero's cash flow tools give you a real-time view of money coming in and going out. This is especially important when you are investing in inventory and advertising. You can also generate financial reports that show your true profitability by product. Use them to spot your best and worst performers and go into tax time prepared.

Simplify your Amazon selling journey with Xero

Selling on Amazon is a powerful way to grow your business, but keeping your finances organised is just as important as making sales. Xero gives you the tools to track your Amazon income, reconcile payments automatically, and see your cash flow in real time.

Whether you are just starting out or scaling an established Amazon business, Xero helps you spend less time on bookkeeping and more time growing your sales, so get one month free.

FAQs on selling on Amazon

Here are answers to some frequently asked questions about selling on Amazon.

Is it free to sell on Amazon?

Selling on Amazon involves several costs. The Individual plan charges US$0.99 per item sold, while the Professional plan costs US$39.99 per month. Both plans also incur referral fees on each sale. You may face additional charges for FBA storage and fulfilment, advertising, and currency conversion fees if you are selling from outside the US.

What are the hidden costs of selling on Amazon?

Beyond plan fees and referral fees, sellers sometimes overlook costs like long-term storage fees for FBA inventory held longer than 365 days, return processing fees, and advertising spend. If you sell internationally from Hong Kong, currency conversion fees and customs duties may also apply. Tracking all of these costs in accounting software helps you see your true margins.

How much money can you make selling on Amazon?

Earnings vary widely depending on your product, pricing, competition, and marketing strategy. Some sellers earn a modest side income, while others build six or seven-figure businesses. Your profitability depends on choosing the right products, managing your costs carefully, and reinvesting in growth.

Can I sell on Amazon from Hong Kong?

Yes, you can sell on Amazon from Hong Kong. Amazon allows international sellers to register and sell on its marketplaces. You will need a valid ID, a bank account, and a credit card. You should also check the Hong Kong Trade and Industry Department for guidance on export regulations and trade compliance.

Do I need accounting software to sell on Amazon?

While it is not strictly required, accounting software makes managing your Amazon finances significantly easier. Amazon's settlement reports can be complex, with multiple fees, refunds, and adjustments in each payout. Software like Xero automates the process of recording and reconciling these transactions, saving you time and reducing errors.