How to Start an Amazon Business?
Seller Assistant
Amazon Product Research Tool for Online Arbitrage and Wholesale Sellers.
If you're thinking about launching your own business, there’s no better platform to start than Amazon. The world’s leading online marketplace dominates 37.6% of the U.S. e-commerce retail market. Amazon is larger than its 14 closest competitors combined, making it an unmatched platform for entrepreneurs.
The opportunity is huge: 55% of Amazon sellers make over $1,000 per month, while 65% of brands and retailers report surpassing $100,000 in annual sales. However, if you’re new to Amazon, it can be challenging to figure out where to start.
In this post, we’ll guide you step-by-step on how to launch your Amazon business. From understanding how Amazon selling works to finding profitable products and avoiding costly mistakes, we’re here to help you start a successful e-commerce business.
How to Start Selling on Amazon?
Selling on Amazon is a straightforward process, much like other online marketplaces: you sign up, find a high-demand, profitable product, list it for sale, and start earning once customers make purchases. However, Amazon has its own systems and features that set it apart. To simplify the process, here’s a step-by-step guide to becoming a successful Amazon seller.
Steps to start selling on Amazon
Step 1. Set up your Amazon seller account
Begin by registering an Amazon account. Choose between two selling plans.
Pay per sale ($0.99/ sale), ideal for casual or small-scale sellers.
A flat $39.99/month fee, suited for those selling in larger volumes (more than 40 products/month).
Step 2. Decide on your selling strategy
Select the business model that best fits your goals
Sourcing discounted products online to sell at a profit.
Buying bulk products from suppliers to resell.
Buying products from retail stores and reselling them on Amazon.
Selling products you don’t physically stock; suppliers handle fulfillment.
Creating and selling products under your own brand.
Selling custom or handmade items.
Step 3. Identify profitable products to sell
Research trending and high-demand products with low competition. Product sourcing software like Seller Assistant can help analyze your deals and find out if they meet your profit margins and demand expectations, and detect potential risks.
Step 4. Source your products
Once you’ve selected a product, find a trustworthy supplier offering competitive prices. This could be:
Step 5. Manage your inventory
Purchase an initial inventory in manageable quantities (if you're not dropshipping). Use sales estimates from tools Seller Assistant to avoid overstocking or understocking. Seller Assistant Extension shows potential monthly sales based on the product's Best Seller Rank (BSR) (Sales field) and predicts the number of units you could potentially sell. The figures appear in the extension on the Amazon product pages and in Side Panel View on the supplier website when you do product research.
Step 6. Create and optimize your product listing
Add your product to Amazon's catalog. If the product already exists, join the existing listing. For new products, create a detailed listing with:
Step 7. Set competitive pricing
Price your products strategically to maximize sales and increase your chances of winning the Buy Box. Factor in product costs, Amazon fees, and shipping expenses to ensure profitability.
Step 8. Choose a fulfillment method
Decide how to handle storage, packing, and shipping:
Amazon manages fulfillment, storage, shipping, and customer service.
You handle storage and order fulfillment yourself.
Step 9. Start selling
Once your product is live, customers can start placing orders. With FBA, Amazon handles the shipping. With FBM, you're responsible for timely order processing and shipping.
Step 10. Deliver orders to customers
FBA: Amazon automatically ships products and handles returns. You only need to send inventory to Amazon's fulfillment centers.
FBM: You must package and ship orders promptly to maintain customer satisfaction.
Step 11. Get paid
Amazon processes customer payments and deposits your earnings (minus fees) into your seller account. You can transfer these funds to your bank account on a regular schedule.
What Do You Need to Start a Business on Amazon?
Starting a business on Amazon is more accessible than many people realize. While you don’t need a lot of resources to begin, understanding the essentials is key to launching successfully. Here’s everything you need to kickstart your Amazon selling journey.
Amazon seller account
The first step is registering on Amazon Seller Central.?
You can choose between:
Ideal for beginners selling fewer items, with a pay-per-sale fee.
Designed for larger-scale sellers, costing $39.99/month with access to advanced tools.
Legal business information
Amazon requires verification of your identity and business.?
Be prepared to provide:
A product to sell
Decide what products you want to offer. Research your products and ensure they will sell well, generate profits, and don’t have risks like Amazon policy violations, IP complaints, etc. Choosing the right product is essential for generating sales and growing your business.
Product sourcing tools
Product sourcing software like Seller Assistant can help you find profitable products with high demand and low competition. Such tools simplify product research and guide you toward better-selling opportunities.
Inventory and fulfillment plan
Decide how you’ll store and ship your products.
Amazon handles storage, packaging, shipping, and customer service.
You manage storage and ship products directly to customers.
UPC/EAN barcode
Most products on Amazon require a UPC or EAN barcode for identification.?
You can:
Shipping and packaging
If you’re using FBM, plan how you’ll package and ship orders efficiently. For FBA, follow Amazon’s packaging and shipping guidelines when sending inventory to fulfillment centers.
What Are Business Models on Amazon?
Amazon offers a variety of business models designed to suit different entrepreneurial goals, investment levels, and selling strategies. Whether you prefer hands-on involvement or a more automated approach, there’s a model that fits your needs. Let’s explore the most popular Amazon business models, how they work, and their pros and cons.
Wholesale
Wholesale selling involves purchasing branded products in bulk directly from manufacturers or distributors at discounted prices and reselling them on Amazon for a profit.
Sellers negotiate with brands or distributors to buy products in large quantities. These products are then listed and sold individually on Amazon at retail prices.
Pros
Bulk purchasing reduces product costs, increasing profit potential.
Once supplier relationships are established, scaling becomes easier by increasing order volume.
Cons
Wholesale typically requires at least $2,000 for bulk inventory purchases.
Securing deals with established brands and suppliers can be difficult for beginners.
Online arbitrage
Online arbitrage involves buying discounted products from online retailers and reselling them on Amazon at a higher price.
Sellers search online stores for discounted or clearance items. These products are then listed on Amazon, and profits are made after accounting for fees and shipping costs.
Pros
You can begin with as little as $500 for inventory purchases.
Product sourcing can be done from home, making it quick to launch.
Cons
Many sellers target the same deals, reducing profit margins.
Finding profitable products with no risks requires significant research.
Dropshipping
Dropshipping allows sellers to offer products on Amazon without holding inventory. When an order is placed, the supplier ships the product directly to the customer.
Sellers list products from suppliers on Amazon. Once a customer buys an item, the seller forwards the order to the supplier. Due to Amazon’s dropshipping policies, dropshippers agree with their suppliers to ship orders to fulfillment centers to repackage them in the dropshipper’s name for a fee. The fulfillment center then ships the order to the customer.?
Pros
You only pay for products after making a sale.
No need to store, pack, or ship products.
Cons
Sellers must comply with Amazon’s dropshipping rules (being sellers of record of their products), or risk account suspension.
Relying on suppliers can lead to shipping delays or quality issues.
Retail arbitrage
Retail arbitrage involves purchasing discounted products from physical retail stores and selling them on Amazon for a profit.
Sellers visit local stores, scan products using Amazon seller apps to check profitability, and buy discounted items to resell on Amazon.
Pros
You can start with around $500 by sourcing discounted products.
Profitable items can often be found during sales or clearance events.
Cons
Sourcing products requires physically visiting stores, scanning items, and transporting inventory.
Product availability depends on local store stock, limiting growth potential.
Private label
Private label selling involves creating your own branded products by partnering with manufacturers and selling them on Amazon.
Sellers work with manufacturers to produce products under their own brand. These products are marketed and sold exclusively by the seller on Amazon, typically through the Fulfillment by Amazon (FBA) program.
Pros
You own and control the brand, product quality, and pricing.
Unique products with strong branding can yield significant profits.
Cons
Private label requires investment in product development, packaging, and marketing (typically $2,000+).
Requires thorough market research to stand out among competitors.
Which model is right for you?
Choosing the best Amazon business model depends on your budget, time commitment, and risk tolerance.
Online arbitrage or retail arbitrage.
Private label.
Wholesale.
Dropshipping.
How to Choose Profitable Products for Amazon?
Identifying high-margin products and reliable suppliers is essential for success on Amazon. With millions of product listings, finding the right items to sell can be overwhelming and time-consuming. Typically, the process begins by selecting a category and brand, followed by in-depth product research to uncover profitable and low-risk deals.
To streamline this process, many sellers use powerful product sourcing tools like Seller Assistant. Below are five proven strategies to help you efficiently discover products and brands that can grow your Amazon business. These methods are especially effective for wholesale sellers, online arbitrage sellers, and dropshippers.
Note. Seller Assistant is a comprehensive product-sourcing software that helps Amazon sellers quickly find high-profit deals. It combines three extensions: Seller Assistant Browser Extension, and IP-Alert Chrome Extension by Seller Assistant, and VPN by Seller Assistant, Amazon seller tools: Price List Analyzer, Brand Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, IP Alert, and Restrictions Checker.
Seller Assistant shows all essential product data on Amazon search, product, and inventory pages, and on any website to help you find high-margin deals. By using this FBA and FBM product sourcing software, you can easily identify products that have the potential to be sold well on Amazon.
Strategy 1. Discover profitable brands with automated brand research
Automated brand research uses data-driven tools to identify brands that are both profitable and open to working with resellers. This strategy is ideal for sellers looking to form long-term partnerships with brands and suppliers.
It helps uncover brands with high revenue potential, low competition, and products that align with Amazon’s selling policies. Focus on brands with excellent customer feedback, scalable product lines, and minimal direct competition from Amazon.
Using Seller Assistant's Brand Analyzer, you can analyze brands for sales performance, competition levels, pricing, and customer reviews. The tool also flags brands where Amazon is a dominant seller, helping you avoid saturated markets.
Tips for effective research
Track revenue and sales performance to gauge demand.
Avoid brands where Amazon controls more than 30% of sales or markets flooded with third-party sellers.
Target brands with 500+ products for more opportunities.
Choose brands with a 4+ star rating and positive reviews.
Use the Bulk Restriction Checker to ensure products are eligible for resale. A green open lock means the product is eligible for resale, a red closed lock indicates restrictions, and a red lock with an exclamation mark means the product cannot be sold on your account.
Strategy 2. Scan wholesale price lists automatically
This strategy involves using automated tools to scan supplier catalogs and identify profitable products quickly. It’s ideal for sellers managing large inventories.
It saves time by filtering bulk product lists, helping sellers focus on high-profit, low-risk items while avoiding costly mistakes.
Upload supplier price lists into Seller Assistant's Price List Analyzer. This tool matches products to Amazon listings, calculates profitability, detects high competition, flags restricted products, and provides detailed product data.
Tips for effective research
Use the Best Sellers Rank (BSR) to assess demand.
Avoid products with 15+ sellers or those dominated by Amazon.
Understand who controls the Buy Box and if you can compete.
Review ROI, profit margins, and breakeven points.
Use the Bulk Restriction Checker and IP-Alert? Extension to avoid restricted products and policy violations.
Strategy 3. Analyze competitors to find winning products
Competitor analysis involves researching other Amazon sellers to identify their top-selling products and brands. This strategy helps you capitalize on proven market trends.
By understanding what competitors are successfully selling, you can introduce similar products into your inventory to increase sales.
Seller Assistant’s Seller Spy tracks competitor stores, revealing what products they sell, recent additions or removals, and their pricing strategies. This insight allows you to sell the same successful products your competition sells and make money on them.
Tips for effective research
Track competitor updates to spot trending products.
Avoid products that competitors stop selling.
Review customer feedback to evaluate product performance.
Adjust your prices to remain competitive.
Strategy 4. Conduct in-depth product research for smart sourcing
Manual product research involves thoroughly evaluating products for profitability, demand, and risk. This hands-on approach is best for sellers who prefer detailed product selection.
It ensures that only profitable, high-demand, and low-risk products are added to your inventory.
Seller Assistant Extension provides real-time data on product performance, competition, profitability, and risks across Amazon product pages, search results, Amazon seller storefronts, and supplier websites.
Tips for effective research
Focus on products with a BSR between 1–200,000.
Choose products with 2–15 sellers.
Look for the red Amazon icon to avoid direct competition.
Use the FBM&FBA profit calculator to check ROI, profit, and margins.
Watch for IP issues, fragile items, restricted products, and other flags.
Use Keepa charts for historical pricing and sales trends. If it’s a new product, it’s difficult to estimate its sales history and see if it will sell well.
Strategy 5. Purchase ready-to-sell deals from Seller Assistant Deals Marketplace
This strategy involves buying pre-researched, profitable product leads from the Seller Assistant Deals Marketplace. It’s perfect for sellers who want to save time on product research.
It provides quick access to vetted, high-margin products, allowing sellers to scale faster.
Browse the Deals Marketplace for product leads with detailed data on ROI, profits, BSR, and competition. These deals are sold to a limited number of sellers to prevent market saturation.
Tips for effective research
Focus on deals with strong profit margins.
Review Buy Box pricing, BSR, and competition.
Ensure product compliance and eligibility.
Receive ASINs, supplier links, and buying instructions after purchase.
How to List Products on Amazon
Listing your products on Amazon is a crucial step in launching your online store. This process involves more than just adding your product to Amazon’s catalog – it requires selecting the right fulfillment method and setting a competitive price to maximize sales.?
The steps for listing depend on whether your product already exists on Amazon or if it’s a completely new item. Here’s how to list your products effectively.
How to list existing products on Amazon
If you’re selling through online arbitrage, retail arbitrage, wholesale, or dropshipping, your products likely already exist in Amazon’s catalog. According to Amazon’s policies, sellers must add their offers to existing product listings rather than creating duplicates.
Steps to list existing products
Step 1. Open the product listing dashboard
Step 2. Search for your product
In the search bar under "Find your products in Amazon’s catalog," enter the product’s title, description, or relevant keywords.
Step 3. Select the product and condition
Step 4. Set price and fulfillment method
Complete your product offer by entering:
Buy Box price or other option
New, used, or refurbished
Step 5. Finalize and publish your listing
Click "Save and finish" to publish your product and make it available for purchase.
How to list new products on Amazon
If you’re selling a product that isn’t yet available on Amazon—common with private label or handmade products—you need to create a new product listing from scratch.
Steps to list new products
Step 1. Open the product listing form
Step 2. Enter product name and category
Step 3. Provide brand and product ID
Step 4. Complete brand approval (if needed)
Step 5. Add product details and images
Complete your product listing by providing:
Step 6. Set price, select fulfillment, and publish
How to Fulfill Orders on Amazon?
When listing your products on Amazon, one of the most critical decisions you'll face is how to fulfill customer orders. Fulfillment involves storing, packing, and shipping products to customers, and your choice can significantly impact your business operations.
Amazon provides two primary fulfillment options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Each method offers distinct advantages, and the best choice depends on factors like your business size, product type, and logistics capabilities.
Here’s a breakdown of both fulfillment methods to help you decide which one suits your business best.
Fulfillment by Amazon (FBA)
With FBA, sellers send their inventory to Amazon’s fulfillment centers. Amazon manages storage, picking, packing, shipping, and customer service in exchange for a fee.
Once you select FBA in your Seller Central account, you ship your products to Amazon’s warehouses. Amazon then handles the entire fulfillment process—from packaging and shipping to customer service and returns. Sellers are responsible for monitoring their stock levels and replenishing inventory to avoid running out.
When to choose FBA
Fulfillment by Merchant (FBM)
With FBM, sellers manage the entire fulfillment process themselves, including storage, packing, shipping, and customer service. This model gives sellers full control over how their orders are handled.
When a customer places an order, the seller is responsible for packaging the product, arranging shipping, and providing customer service. Proper packaging and prompt shipping are essential to maintain positive reviews and avoid delays. FBM is especially beneficial for products with lower sales volumes or items that are oversized or need custom packaging.
When to choose FBM
Which fulfillment method is right for you?
Choosing between FBA and FBM depends on your product type, business scale, and logistics capability.
FBA is best for high-volume sellers, standard-sized products, and those who want Amazon to manage fulfillment.
FBM works well for low-volume items, unique products, and sellers with in-house logistics.
How to package Amazon FBA products?
Proper packaging is essential to ensure your products arrive safely and keep customers satisfied. Following Amazon’s packaging guidelines is crucial because failure to comply can result in additional fees – Amazon may repackage your items if they don’t meet requirements.
Here’s step-by-step how to package your products correctly for Amazon FBA.
Steps to package your Amazon products?
Step 1. Choose the right-sized box
Select a box that fits your product snugly to minimize movement during shipping. Avoid using oversized boxes with too much empty space, as this increases the risk of damage. Amazon recommends using new, sturdy boxes designed to handle the shipping process. Avoid using worn or repurposed boxes that may not provide enough protection.
Step 2. Secure the product properly
Protect your product with void-fill materials such as:
Ensure fragile items are well-cushioned and that the product cannot shift inside the box during transit.
Step 3. Apply clear and correct labeling
Attach the Amazon shipping label clearly to the outside of the box, making sure the barcode is easily scannable. If required, use Amazon’s FNSKU (Fulfillment Network Stock Keeping Unit) label for product identification. Avoid adding any other labels or markings unless they are part of Amazon’s requirements.
Step 4. Include a packing slip (optional but helpful)
While not mandatory, adding a packing slip inside the box with the order details can help the customer verify the contents. It’s also useful for resolving order discrepancies or processing returns.
Step 5. Remove any supplier pricing or branding
Ensure that any original price tags, promotional stickers, or supplier information are completely removed from the product and its packaging. This keeps the product looking professional and prevents customer confusion.
Tips to Start a Successful Amazon Business
Starting an Amazon business can be a great way to build a profitable online venture, but success doesn’t happen overnight. Understanding the basics and setting a strong foundation will help you avoid costly mistakes and maximize your potential. Here are key tips to help you launch and grow your Amazon business effectively.
Get familiar with how Amazon works
Before diving in, take the time to understand how selling on Amazon operates. Learn the process of listing products, choosing fulfillment methods, and managing orders. This knowledge will help you avoid common mistakes and streamline your operations.
Explore Amazon Seller Central and read about FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) to decide which fits your business best.
Choose products that people want to buy
Not every product is a good fit for Amazon. Focus on products with high demand and low competition. Selling trending or niche products can help you stand out and improve your chances of success.
Avoid saturated markets and look for products with consistent demand and positive customer reviews.
Price your products for profit
Pricing your products correctly is essential. Factor in all Amazon fees, shipping costs, and other expenses to ensure you’re making a profit on each sale.
Use Seller Assistant’s FBA&FBM profit calculator to estimate fees and calculate your profit margins before setting your prices.
Focus on profit, not just sales volume
Selling a large number of products at low prices may seem like a quick way to grow, but it can hurt your profitability. Prioritize products that offer a strong profit margin rather than just chasing high sales volume.
Evaluate each product's ROI (Return on Investment) and avoid underpricing to stay competitive and profitable. Use Seller Assistant’s FBA&FBM profit calculator to quickly calculate ROI and other profitability metrics.
Use product sourcing tools to find profitable products
Finding the right products to sell is one of the most challenging parts of selling on Amazon. Using product research tools can make this process easier and more efficient.
Seller Assistant is an all-in-one product sourcing tool that helps you find profitable products with high demand and low competition. It offers features like sales data analysis, profitability calculators, and competitor insights to help you make smarter sourcing decisions.
Grow your business slowly and steadily
Building a successful Amazon business takes time. Don’t expect instant results. Start small, learn from your experiences, and gradually expand your product range and inventory.
Set realistic goals, focus on consistent growth, and reinvest profits to scale your business over time.
FAQ
How much does it cost to start an Amazon business?
Starting an Amazon business typically costs between $500 to $3,000, depending on your business model and product sourcing strategy. Costs include inventory, Amazon seller fees, packaging, and optional tools for product research.
Is it easy to start an Amazon business?
Setting up an Amazon seller account is straightforward, but building a successful business requires research, strategic planning, and consistent effort. While the platform simplifies selling, competition and market trends make it challenging to stand out.
Is it profitable to sell on Amazon?
Yes, selling on Amazon can be highly profitable with the right products, pricing strategy, and marketing. Many sellers earn significant income, but success depends on factors like product selection, market demand, and effective cost management.
Is it worth it to start an Amazon business?
Starting an Amazon business can be worth it if you're willing to invest time in product research, marketing, and scaling your operations. With access to millions of customers, Amazon offers strong potential for sustainable income and business growth.
How much money do I need to start an Amazon business?
You can start with as little as $500 to $1,000 for small-scale models like online or retail arbitrage, but wholesale or private label businesses may require $2,000 or more. Your budget should cover inventory, Amazon fees, shipping, and marketing.
Can I make $1,000 a month selling on Amazon?
Yes, many Amazon sellers make at least $1,000 a month, especially after establishing their business and product listings. Achieving this goal requires selecting profitable products, pricing competitively, and managing costs effectively.
Final Thoughts
Starting an Amazon business is an exciting opportunity to build a profitable and scalable online venture. By understanding how Amazon works, choosing high-demand products, pricing strategically, and focusing on profit over volume, you set a strong foundation for success.?
Growth takes time, but with consistent effort and smart decisions – especially by using tools like Seller Assistant for product sourcing – you can navigate challenges and steadily expand your business.
Seller Assistant is an all-in-one product sourcing software offering all the features vital for product sourcing. It combines three extensions: Seller Assistant Extension, IP Alert, and VPN by Seller Assistant, tools: Price List Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, and other features that help quickly find high-profit deals. Seller Assistant also offers integration with Zapier allowing to create custom product sourcing workflows.
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