You can sell things to Amazon in several ways, from trading in used electronics for gift cards to building a full-scale business as a third-party seller on Amazon’s marketplace. The right approach depends on whether you want quick cash for stuff you already own or an ongoing income stream. Here’s how each model works, what it costs, and what to realistically expect.
Trade In Items You Already Own
The simplest way to “sell to Amazon” is through the Amazon Trade-In program. You send in eligible items, and Amazon pays you with an Amazon gift card for the appraised value. This works well for clearing out old electronics, textbooks, and other items collecting dust, but it’s not a business model. The payout is in gift card balance only, not cash, so you can only spend it on Amazon.
To use Trade-In, search for your item on the Trade-In store page, get an instant quote, ship it for free using the prepaid label Amazon provides, and receive your gift card once the item is inspected. If the item doesn’t meet the condition you described, Amazon may offer a lower amount or return it to you. It’s fast and zero-risk, but you’ll typically get less than you would selling the same item yourself on Amazon’s marketplace or elsewhere.
Sell as a Third-Party Seller on Amazon
Most people making real money “selling to Amazon” are actually selling on Amazon as third-party sellers through Seller Central. You list products on Amazon’s marketplace, customers buy them, and Amazon takes a cut. You can sell items you already have, products you buy at a discount elsewhere, or goods you manufacture under your own brand.
Amazon offers two seller plans. The Individual plan charges $0.99 per item sold and makes sense if you’re selling fewer than 40 items per month. The Professional plan costs $39.99 per month with no per-item fee, which is the better deal once your volume picks up. On top of that, Amazon charges a referral fee on every sale, typically between 8% and 15% of the selling price depending on the product category.
Choose a Sourcing Model
How you get the products you sell determines your startup costs, risk, and profit potential. Three models dominate.
Online and Retail Arbitrage
Arbitrage means buying products at a discount from retail stores or other online retailers, then reselling them on Amazon at a higher price. You profit from the price difference. This is the easiest way to start because you can begin with $500 to $1,000 in inventory and test products without committing to large orders. If something doesn’t sell, you pivot quickly. The downside is that margins can be thin once you factor in Amazon’s fees, and you’re always hunting for the next deal rather than building a repeatable supply chain.
Wholesale
Wholesale sellers buy products in bulk directly from brands or distributors at below-retail prices, then resell them on Amazon. This requires more capital upfront than arbitrage because suppliers typically have minimum order quantities, but you get a more predictable inventory pipeline. You’ll need to open accounts with distributors, which often means providing a resale certificate and a business tax ID. The challenge is competition: other sellers may be listing the same products, which drives prices down.
Private Label
Private label means creating your own branded product. You find a manufacturer, often overseas, design your packaging and branding, and sell under a brand name you own. Startup costs run $2,000 to $5,000 or more because you’re paying for product development, manufacturing minimums, and branding before you make a single sale. The risk is higher since a product that flops means money tied up in unsold inventory. But the upside is significant: you control pricing, face less direct competition on your listing, and build a brand asset you can grow over time.
Understand Fulfillment Options
Once you have products to sell, you need to get them to customers. Amazon gives you two choices.
Fulfillment by Amazon (FBA) means you ship your inventory to Amazon’s warehouses, and Amazon handles storage, packing, shipping, and customer service. Your products become eligible for Prime shipping, which significantly increases visibility and conversion rates. The trade-off is fees. FBA charges per-unit fulfillment fees based on product size and weight, plus monthly storage fees for inventory sitting in their warehouses. For 2026, FBA fees increased by an average of $0.08 per unit sold. Standard-size products priced between $10 and $50 saw increases ranging from $0.05 to $0.25 per unit depending on the item’s dimensions. If your inventory sits unsold for over a year, aged inventory fees kick in at $0.30 per unit per month for items stored 12 to 15 months, rising to $0.35 per unit for items over 15 months.
Fulfillment by Merchant (FBM) means you store and ship products yourself. You avoid FBA fees but lose the Prime badge, handle all customer service, and need your own storage space and shipping workflow. FBM works best for large or heavy items where FBA storage fees would eat your margin, or for sellers who already have warehouse operations.
Calculate Whether You’ll Actually Profit
The gap between revenue and profit catches many new sellers off guard. Before you buy inventory, map out every cost for a single unit: your product cost, shipping to Amazon (or to the customer if using FBM), Amazon’s referral fee, FBA fulfillment fee if applicable, and any advertising spend you’ll need to get initial sales. Also factor in the inbound placement service fee Amazon charges when you send inventory to their warehouses, and potential defect fees of around $0.60 per unit if shipments arrive late or at the wrong location.
A simple example: if you buy a product for $5, sell it for $20, and Amazon takes a 15% referral fee ($3) plus a $3.50 FBA fee, you’re left with $8.50 before accounting for shipping to the warehouse, advertising, and returns. That margin can shrink fast if you’re spending on sponsored ads to rank your listing, which most new sellers need to do.
Use Amazon’s Revenue Calculator (free in Seller Central) to estimate fees before committing to any product. Plug in your expected selling price and product dimensions, and the tool shows your estimated fees and net proceeds.
Sell Directly to Amazon as a Vendor
There’s one more path: selling your products directly to Amazon itself, which then resells them to customers. This happens through Vendor Central, and it’s invite-only. Amazon extends invitations to established brands based on their reputation, sales performance, or visibility at trade events. You can’t apply. If invited, you sign a vendor agreement, and Amazon sends you purchase orders at wholesale prices.
The advantage is simplicity: Amazon handles pricing, listing, and fulfillment. The disadvantage is you lose control over your retail price and margins, and Amazon’s wholesale terms can be aggressive. Most sellers start on Seller Central and only consider Vendor Central if Amazon approaches them. If you’re hoping for an invite, focus on building strong sales and brand recognition on the marketplace first.
Steps to Get Started
- Register a Seller Central account. You’ll need a government-issued ID, a bank account, a credit card, and tax information. The process takes a few days while Amazon verifies your identity.
- Pick a sourcing model. Start with arbitrage if you want low risk and fast learning. Move to wholesale or private label once you understand how Amazon’s fees and ranking system work.
- Research products before buying. Look for items with steady demand, manageable competition, and enough margin to absorb Amazon’s fees. Tools like Amazon’s Best Sellers list and the Revenue Calculator help you evaluate opportunities.
- Create your product listings. Write clear titles, use high-quality photos, and include relevant keywords so customers can find your products in search results.
- Ship inventory to Amazon or set up your own fulfillment. If using FBA, follow Amazon’s packaging and labeling requirements carefully to avoid inbound defect fees.
- Monitor and adjust. Track your margins weekly. Adjust pricing, cut underperforming products, and reinvest profits into inventory that’s selling well.
Most successful Amazon sellers didn’t start with a huge investment. They started small, learned how fees and competition work with real products, and scaled up once they found a profitable niche. The key is running the numbers before you buy inventory, not after.