Selling on Amazon FBA (Fulfillment by Amazon) means you send your inventory to Amazon’s warehouses, and they handle storage, packing, shipping, and customer service for every order. You focus on finding products and managing your listings while Amazon does the logistics. Getting started involves setting up a seller account, sourcing products, preparing your first shipment, and understanding the fees that come out of each sale.
What You Need to Open a Seller Account
Amazon requires several documents before you can start selling. Gather these before you begin registration, because the process stalls if anything is missing or inconsistent:
- Government-issued ID such as a passport or driver’s license, used to verify your full legal name, citizenship, date of birth, and residential address
- Email address dedicated to your business (recommended so personal emails stay separate)
- Internationally chargeable credit card for paying Amazon’s fees
- Bank account and routing number where Amazon will deposit your sales proceeds
- Business license or registration if you have one (sole proprietors can register as individuals)
- Proof of residential address dated within the last 180 days, like a bank statement or credit card statement
- Tax information, typically your Social Security number or Employer Identification Number
After you submit your initial information, Amazon will prompt you to upload your ID and proof of address. They may also schedule a video call to verify your identity. This verification step can take anywhere from a few days to a couple of weeks, so plan accordingly.
Amazon offers two account types. The Individual plan has no monthly fee but charges $0.99 per item sold, making it suitable if you’re testing the waters with a small number of products. The Professional plan costs $39.99 per month with no per-item fee, and it unlocks advertising tools, bulk listing features, and eligibility for the Buy Box. Most serious FBA sellers choose the Professional plan from the start.
Choosing and Sourcing Products
Product selection is the single biggest factor in whether your FBA business makes money. You want items with consistent demand, manageable competition, and enough margin to cover Amazon’s fees and still leave profit. A common starting point is lightweight, small standard-size products priced between $15 and $50, because fulfillment fees are lowest in that range and impulse purchases are more likely.
There are a few sourcing models to consider. Retail arbitrage means buying clearance or discounted items from stores and reselling them on Amazon at a higher price. Online arbitrage is the same concept but sourced from other websites. Wholesale involves buying products in bulk directly from brands or distributors at negotiated prices. Private label is the most involved approach: you find a manufacturer (often overseas), put your own brand on the product, and create a new listing on Amazon.
Before committing to any product, check whether it falls into a restricted category. Amazon requires pre-approval for certain categories, and you may need to provide invoices from authorized distributors, safety certifications, or other documentation before you can list. Categories like grocery, topicals, and certain electronics frequently require approval. If you try to list a restricted product without clearance, your listing will be blocked.
Use Amazon’s own search results, the Best Sellers page, and the Revenue Calculator (available in Seller Central) to estimate fees and profit margins before placing your first order. A product that looks profitable at first glance can quickly become a loss once you add up referral fees, fulfillment costs, and storage charges.
Creating Your Product Listings
If you’re selling an existing product already on Amazon, you match your offer to the existing listing using the product’s ASIN or UPC code. You set your price and quantity, and your offer appears alongside other sellers on that page.
If you’re launching a private label product or listing something new, you create the listing from scratch. This means writing a title, bullet points, and product description, uploading high-quality images, and assigning the correct category. Your title should include the brand name, key product features, size or quantity, and the most relevant search terms a buyer would type. Bullet points should focus on benefits and specifications rather than marketing fluff. Amazon allows up to seven images on most listings, and products with multiple clear photos on white backgrounds convert significantly better than those with one or two.
You also fill in backend search terms in Seller Central, which are hidden keywords that help Amazon’s algorithm surface your product in search results. Use this space for alternate spellings, related terms, and synonyms you didn’t fit into your visible listing copy.
Preparing and Shipping Inventory to Amazon
Once your listing is live, you create a shipping plan in Seller Central. This tells Amazon what products you’re sending, how many units, and the condition of each item. Amazon then assigns your inventory to one or more fulfillment centers across the country.
Every item you send must meet Amazon’s packaging and labeling requirements. Each unit needs an FNSKU barcode label (a unique identifier Amazon uses to track your specific inventory). You can print and apply these yourself or pay Amazon a per-unit labeling fee. Products must be properly packaged so they arrive undamaged: poly-bagged if they could be damaged by dust or moisture, bubble-wrapped if fragile, and clearly labeled if they include multiple components.
You can ship inventory to Amazon via small parcel delivery (UPS, FedEx) or use Amazon’s partnered carrier rates, which are often cheaper for heavier shipments. For large or recurring shipments, many sellers use Amazon’s discounted partnered rates through Seller Central, which can cut shipping costs substantially compared to retail carrier pricing.
Plan for a receiving window of one to two weeks after your shipment arrives at the fulfillment center. Amazon needs time to check in, sort, and shelve your products before they become available for purchase.
Understanding FBA Fees
Amazon charges several layers of fees, and understanding them is essential for pricing your products correctly.
Referral fees are a percentage of each sale’s total price, including the item price and any shipping or gift wrap charges. The percentage varies by category but typically falls between 8% and 15%, with most common categories at 15%.
Fulfillment fees cover picking, packing, and shipping each order. These depend on the product’s size tier and weight, and they also factor in the item’s price. For example, a small standard-size item weighing 2 ounces or less and priced under $10 has a fulfillment fee of $2.43, while the same item priced between $10 and $50 costs $3.32 to fulfill. Larger and heavier items cost more: a small bulky item (up to 50 pounds) starts at $6.78 plus $0.38 per pound above the first pound, and extra-large items start above $25. Starting April 17, 2026, Amazon is applying a 3.5% fuel and logistics surcharge on top of all fulfillment fees.
Monthly storage fees are charged based on the volume (in cubic feet) your inventory occupies in Amazon’s warehouses. Rates are higher during the fourth quarter (October through December) when warehouse space is at a premium. If inventory sits for an extended period, you may also face aged inventory surcharges, which penalize slow-moving stock that takes up space.
A useful rule of thumb: total Amazon fees (referral plus fulfillment plus storage) typically consume 30% to 40% of your selling price. If your product costs $10 to source and you sell it for $25, roughly $8 to $10 goes to Amazon, leaving you $5 to $7 in gross profit before advertising and other business expenses.
Launching and Growing Sales
New listings on Amazon have zero sales history and zero reviews, which makes it hard to rank in search results initially. Most sellers use Amazon’s pay-per-click advertising (Sponsored Products) to get their first visibility. You bid on keywords relevant to your product, and you pay only when a shopper clicks your ad. Start with automatic campaigns that let Amazon choose which search terms to target, then review the data after a week or two and shift budget toward the keywords that are actually converting into sales.
Reviews build credibility and improve conversion rates. Amazon’s “Request a Review” button in Seller Central sends a standardized email to buyers asking for feedback. You cannot offer incentives for reviews, and violating this policy risks account suspension. Building reviews takes time, but even 15 to 25 reviews with a 4-star average can meaningfully boost your sales velocity.
Monitor your account health metrics in Seller Central regularly. Amazon tracks your order defect rate, late shipment rate (relevant if you also fulfill orders yourself), and policy compliance. Letting these metrics slip can result in listing suppression or account suspension.
Seller Verification and Disclosure Requirements
Under the INFORM Consumers Act, Amazon is required to collect and verify identity and contact information from sellers who complete 200 or more transactions and earn $5,000 or more in revenue within a 12-month period. This includes your bank account details, government-issued ID, tax identification number, and contact information. Amazon must also make certain seller information available to consumers on your product listings and upon request. You will be prompted to complete this verification through Seller Central once you hit those thresholds, and failing to comply can result in your selling privileges being suspended.
Tracking Profitability
Amazon deposits your sales proceeds to your bank account on a roughly two-week cycle, after deducting all fees. Your Seller Central dashboard breaks down each transaction, showing the sale price, referral fee, fulfillment fee, and your net proceeds. Use these reports to calculate your actual profit per unit rather than relying on estimates.
Keep a separate spreadsheet or use inventory management software to track your total cost per unit, including the product cost, shipping to Amazon, labeling, and any advertising spend. Products that look profitable before advertising costs can become break-even or even money-losing once you factor in the $0.50 to $2.00 per unit you might spend on PPC to drive sales. Reviewing these numbers monthly helps you decide which products to reorder, which to discount and liquidate, and which to discontinue entirely.