How to Start an Ecommerce Business on Amazon: A Step-by-Step Guide

Amazon has an estimated 300 million users worldwide and generated USD 15.3 billion in net income in Q3 2024 alone, with 60% of its sales driven by independent sellers.* The best part? Starting a business with Amazon usually requires just a basic Amazon seller account.

In this guide, we’ll walk you through the essentials of starting your own ecommerce business on Amazon—from selecting the right plan and registering your account to listing products and understanding the costs involved in running an Amazon store. You’ll also discover tips for leveraging Amazon’s key tools and other strategies to boost your store’s success.

An Amazon store is an online storefront where third-party sellers can display and sell their products within the Amazon marketplace. You can think of it as a stall that forms part of a megamall called Amazon. To start an ecommerce business, you rent the stall, brand it, bring in your products, and then sell them to online shoppers drawn in by Amazon. 

Sellers can manage their operations with Amazon’s tools for hosting, marketing, and order fulfilment. The platform suits various business models like dropshipping, retail arbitrage, and private labeling.

Amazon allows sellers from most countries, though eligibility varies by marketplace.* However, Amazon doesn’t restrict you to just your local market. Once you have an Amazon seller account, you can sell globally through Amazon Global Selling, as long as you can ship to the destination.*

Amazon operates across five continents, with dedicated websites in multiple countries. Here’s the list of popular ones:

To create a new online business on Amazon, follow these 9 steps.

You most likely already have a product to sell, but if not, technically, you can start selling on Amazon without inventory—especially if you choose a business model like dropshipping. However, you’ll still need to know your products before listing them for sale.

If you already have a product, you can skip this step. If not, the first task is to find and source a profitable product to sell. Advanced product research tools like Jungle Scout, Helium 10, Viral Launch, and AMZ Scout can provide valuable insights, especially regarding Amazon's keywords.

If you're just getting started and want to avoid the risk of holding inventory, consider looking for dropshipping suppliers who can store inventory and ship directly to your customers or send products to Amazon's fulfilment centres.

Once you’ve identified and sourced your product or established a deal with your dropshipping suppliers, you're ready to set up your Amazon store.

The next step is to choose your preferred seller plan: Individual or Professional.

Additional selling fees may apply in certain situations. Some optional tools and programs come with extra costs.*

Once you've chosen your selling plan, you're ready to register. Visit sell.amazon.com and complete the application process. You will need the following information and documents:

• Business type (e.g., public, private, individual, charitable, or LLC): You don’t need to be an LLC or a registered business to sell on Amazon. If you're an individual seller, choose "None, I am an individual" as your business type.
• Company Registration Number (if applicable): Provide your unique company identifier, not your EIN, if applicable.
• Registered Business Address: If you are a registered business, use the address listed on your business license. For individuals, it can be your operating address. You may use a P.O. box for privacy. 
• Seller Information: You'll need to provide personal details such as your full name and date of birth.
• Billing Information: Provide a bank or business account that will be used for processing payments and expenses. The account must be in your name or your business's name.
• Phone Number with the correct country code.
• Amazon Store Name: Choose a unique name for your Amazon store. It doesn't need to match your business name.

After submitting your information, you will need to verify your identity through the following methods:

1. Upload your government-issued ID.
2. Upload your business’ proof of address (e.g., a bank or credit card statement dated within the last 180 days).
3. Take a photo of your face alongside your government-issued ID.
4. Schedule a video call with an Amazon associate. Be sure to have your government-issued ID and proof of address ready for the call.

Once the verification process is complete, you'll gain access to your Seller Central account. You can log in anytime.

Once registered, you can access Seller Central at sell.amazon.com. This is your central hub for managing products, pricing, orders, sales, and other essential business settings and growth tools, along with receiving important updates. Upon your first login, take the time to configure the following settings and update your account information:

• Public seller profile
• Payment and business information
• Shipping and returns settings
• Tax information
• Notification preferences
• Login settings
• User permissions
• Gift options
• Additional seller information and policies

Once your Seller Central account is set up, you can use it to create a store, list and price products, manage inventory, and fulfil customer orders. For easy access on the go, consider downloading the “Amazon Seller” app on App Store or Google Play.

Before listing your products and setting up your store, it's crucial to check if you're eligible to register with the Amazon Brand Registry. If you have duly registered and trademarked your brand name, you are eligible and should register with the Amazon Brand Registry. *

This program provides a valuable opportunity to protect and expand your brand. Businesses enrolled in the registry are notified when counterfeit products attempt to be sold on Amazon. You will also have access to a series of powerful brand marketing tools. 

To register, go to https://sell.amazon.com/brand-registry and follow these steps.

1. Sign in with your Amazon seller account credentials and select “Enroll a Brand”
2. Enter your registered brand name and trademark details, including the trademark office and the registration or serial number.
3. If you have a design mark, upload a high-resolution image of your logo.
4. Specify the product categories your brand covers.
5. Provide information about your brand's manufacturing and distribution, such as documentation and the countries where your products will be sold.
6. Submit your application for Amazon’s review and approval.

Enrolling in the Amazon Brand Registry is free of charge. However, if you don’t have a registered trademark, it is still possible to become an Amazon seller without enrolling in the Brand Registry. 

Once your Amazon seller account is set up, you can start listing products right away. Amazon doesn’t require you to create a storefront before listing. You can list as many or as few products as you want, and then later categorise them in your storefront.

Steps to List a Product:

1. Prepare the Product Information: Prepare the product IDs, also known as Global Trade Item Numbers (GTINs), of the product you want to sell. The most common GTINs for Amazon sellers are UPC, ISBN, EAN, or JAN codes.
2. Search the Product: Hover over the “Catalog” tab and select “Add Products”. Enter the product’s GTIN or product ID in the search field. If your product already exists in Amazon’s catalogue, Amazon will automatically pull the product information. If it’s a new product, you’ll need to create a new product detail page. Simply click “Create a New Listing”.
3. Complete Product Information: If you’re creating a new listing, fill in the necessary details, such as product name, type, and variations (e.g., size, colour). You’ll also need to specify the number of items per unit and other relevant attributes. 
4. Upload Images: You can upload up to nine images (the recommended size is 500 x 500 or 1,000 x 1,000 pixels). 
5. Ensure Safety and Compliance: If applicable, provide information about safety hazards, certifications, and regulatory compliance. Ensure the product meets Amazon’s safety and hazmat standards.
6. Specify Your Offer: Provide details on your product’s price, quantity, condition (new or used), and fulfilment channel. You can choose between Fulfillment by Amazon (FBA), where Amazon handles shipping and customer service, or Fulfilled by Merchant (FBM), where you manage fulfilment yourself.
7. Save or Submit: Once your listing is complete, you can either save it as a draft for future edits or submit it for publication if it’s ready to go live.

As you list and manage your Amazon product, you will frequently encounter the terms "FBA" and "FBM." Here's what they mean:

FBA or fulfilment by Amazon is a service that lets sellers outsource the fulfilment of orders to Amazon. * Sellers send their products to Amazon’s fulfilment centres, where Amazon takes care of picking, packing, and shipping the orders. Amazon also manages customer service and returns on behalf of the seller. One of the key benefits of FBA is that sellers can offer Prime members free, two-day shipping. However, FBA comes with certain fees, including fulfilment and storage fees, as well as fees for removing or disposing of defective, damaged, or unsellable products. You can learn more about the associated costs on the Amazon FBA website. You can also find Fulfillment by Amazon (FBA) settings in your Seller Central. 

On the other hand, FBM or Fulfillment by Merchant is where sellers handle all aspects of order fulfilment themselves. This means that you are responsible for managing your inventory, shipping orders, and handling cancellations or returns. This model gives you full control over the process. Amazon does provide tools, such as the Veeqo shipping software, to assist with managing orders efficiently. *

On Amazon, you have the option to simply list your products for sale or take it a step further by creating a storefront for your brand. A storefront allows you to display all your listed products in a way that aligns with your brand identity. You can organise products, highlight best-sellers, or even curate specific collections. 

To set up an Amazon storefront, follow these steps

1. Go to your Amazon Seller Central account. On the primary navigation bar, choose “Store” > “Manage Stores” > “Create Store”.
2. Enter your brand name, upload a high-quality logo, and complete the meta description for the store’s homepage.
3. Choose a storefront layout from Amazon’s three customisable templates below.

Once you've set up the basics, take your storefront to the next level with these customisation tips:

• Subpages: If you have an extensive product catalogue, you can create up to three levels of subpages. To do so, navigate to “Page Manager” > “Add a Page”, then define the name, description, and layout of each subpage. These can link to different sections within your storefront for a more streamlined shopping experience.
• Tile Manager: The “Tile Manager” lets you easily add and arrange content on each page. Mix and match images, text, and videos to create an engaging and visually appealing layout. Use the “Preview Window” to view how it will appear on both desktop and mobile devices. You can then click on individual tiles to make direct edits. 

After you’ve finished designing your storefront, check if it complies with the Stores creative guidelines. * If all is well, proceed to the navigation bar and click "Submit for publishing." Your new online store will be sent for review, which shouldn't take more than 24 hours. If any issues are flagged up, you'll be notified accordingly for rectification and resubmission. Otherwise, your storefront will go live automatically after being approved. 

After publishing, you can create multiple versions of your storefront and schedule them to go live at specific times. This allows you to plan and design ahead for special events, product launches, or seasonal updates.

Now that you have successfully launched your store, the next step is considerably more challenging – you have to figure out ways to outshine thousands of other Amazon sellers, make your products stand out, and convert potential customers into buyers. 

To give you a head start, here are some of the best tips we've picked up from some of the leading Amazon sellers.

Once your store is live, it's essential to monitor its performance continually. You can track key metrics, such as page views and sales, by revisiting the “Store Builder” and navigating to “Insights”.

Amazon also offers an Account Health Dashboard, which gives you an overview of how well your account aligns with policies and performance goals.

Your customer service performance is also measured through the Order Defect Rate (ODR), which indicates the percentage of orders that show signs of poor service.

Additionally, shipping performance can also be tracked using Amazon metrics like Late Shipment Rate (LSR), Pre-Fulfillment Cancel Rate (CR), Valid Tracking Rate (VTR), and On-Time Delivery Rate (OTDR). These metrics track the percentage of orders shipped late, cancelled before fulfilment, with valid tracking, and delivered on time, respectively.

Organic traffic alone may not be enough to sustain consistent sales. Strategic promotions and paid advertising can help increase visibility and drive conversions. Here are some common methods:

• Amazon Sponsored Ads (PPC): If you are a professional selling account, you can run sponsored products, brands, and display ads to reach the right audience on Amazon. * Go to “Seller Central” > “Amazon Ads” > “Register”. You can start by running a sponsored product campaign, and then use analytics to track and optimise performance.
• Deals & Coupons: Offering time-sensitive discounts can boost visibility and drive sales. If you have a professional plan, a 4-star rating, and an eligible product, you can create deals by going to “Advertising” > “Deals” in Seller Central.
• A+ Content: Amazon claims Basic A+ Content can boost sales by 8%, while Premium A+ Content can increase sales by up to 20%.* This feature allows enhanced product pages with videos, images, and comparison charts. Access it via “Advertising” > “A+ Content Manager” in Seller Central. You need a Professional selling account and need to enroll in the Brand Registry or be assigned the Brand Representative selling role to use this feature.
• External Marketing Channels: Driving traffic from outside Amazon—through social media, SEO, email marketing, and influencer collaborations—can also help increase sales and improve organic rankings.

Authentic customer reviews play a crucial role in influencing client decisions. A higher volume of reviews not only builds credibility but also attracts more leads, ultimately improving conversion rates. 

To maintain a strong overall rating, encourage customer feedback through personalised follow-ups. You can 

• Use the "Request a Review" Button: You can request reviews directly through the “Request a Review” button in Amazon Seller Central or set up automated email requests using Amazon's Buyer-Seller Messaging system. However, avoid incentivising reviews, as it violates Amazon's policies.
• Enroll in Amazon’s Vine Program: The Vine Program helps generate high-quality reviews by connecting you with trusted reviewers, known as Vine Voices, who receive free products in exchange for their honest, unbiased feedback. This program can help generate up to 30 high-quality reviews per product. * To participate, you need a Professional selling account, eligible FBA offers, and a Brand Representative enrolled in Amazon Brand Registry. You can enroll your product by logging into Seller Central, go to “Advertising” > “Vine”.

Marketing your Amazon ecommerce business is not a one-off thing. It should be a continuous, never-ending process that progressively adapts to the ever-changing market trends. 

As you promote your online business through Amazon’s sponsored ads, email marketing, search engine optimisation, social media channels, and keyword optimisation, it is essential to consistently track the performance of your campaigns. By analysing the data, you can figure out how best to realign your strategies according to all the shifting market variables.

Starting an ecommerce store on Amazon incurs various charges, which depend on factors like your seller account type, business model, marketing strategy, fulfillment system, and product category.

Here are the fundamental costs **:

*Additional FBA costs include charges for inventory stored for over 181 days, processing returns, and removing or disposing of inventory. There are also fees for the FBA Inbound Placement Service, which helps distribute inventory to fulfilment centres closer to customers, reducing delivery times and costs.

It's also important to consider your own shipping and marketing costs, which can vary depending on the services you choose. Despite these costs, starting an Amazon ecommerce store is generally more affordable than running a self-hosted store, depending on factors like fulfilment costs and product category.

You can scale costs based on business goals and use Amazon's revenue calculator to estimate revenues. *

Having learned how to start an ecommerce business on Amazon and some tricks to growing your online store, it's safe to say that you now have the roadmap for transforming your business idea into a real store.

It’s best to keep in mind that local taxes, business laws, and industry compliance requirements differ by region. Additionally, if you're using the Amazon FBA model, you'll need to consider the logistics of shipping your products to the fulfilment centres in each marketplace.