How to Open a Store on Amazon and Start Selling in 10 Steps
If you want to open a store on Amazon, you are joining one of the most powerful retail platforms in the world. Amazon hosts over 9.7 million sellers globally, and more than 60% of its total sales come from third-party sellers (Jungle Scout, 2023). That is a massive opportunity, but it also means competition is real and preparation matters. This guide walks you through every step you need to take, from creating your seller account to driving traffic to your listings, with honest trade-offs at each stage so you can make informed decisions.
Opening a store on Amazon involves creating a seller account, choosing a selling plan, setting up your brand storefront, listing products correctly, and driving traffic through SEO and advertising. This guide covers all 10 steps in detail so you can launch with confidence and avoid common mistakes that cost new sellers money and time.
⚡ Key Takeaways
- Choose the Individual or Professional selling plan based on your expected monthly volume before you register.
- Product research is the single most important step before you invest any money in inventory.
- Amazon A9 and A10 algorithms prioritize relevance and conversion rate, so keyword-optimized listings are non-negotiable.
- Fulfillment by Amazon (FBA) reduces your logistics burden but adds fees that must be factored into your margin calculations.
- Amazon Brand Registry protects your intellectual property and unlocks more powerful storefront and advertising tools.
- Reviews and seller feedback directly impact your buy box eligibility and long-term revenue.
- Combining Amazon SEO with off-platform traffic sources accelerates growth significantly faster than relying on organic search alone.
1. Understand the Two Amazon Selling Plans
Before you register, Amazon asks you to choose between an Individual plan and a Professional plan. The Individual plan charges you $0.99 per item sold, with no monthly subscription fee. The Professional plan costs $39.99 per month regardless of how many units you sell. If you plan to sell fewer than 40 items per month, the Individual plan is technically cheaper. However, the Professional plan unlocks critical features including bulk listing uploads, advertising access, eligibility for the Buy Box, and the ability to create an Amazon Brand Store. For most sellers planning to build a real business, the Professional plan pays for itself quickly.
The trade-off is real though. Committing to a monthly fee before your first sale means you are absorbing cost during the research and setup phase. Many new sellers switch to Professional after their first few weeks once they understand their product and category. Amazon makes it easy to upgrade, so starting on Individual is a reasonable way to test the waters without financial pressure. What you must not do is choose a plan without first projecting your sales volume and category referral fees, which range from 6% to 45% depending on your product type (Amazon Seller Central, 2024).
2. Register Your Amazon Seller Account
To open a store on Amazon, go to sellercentral.amazon.com and click the Register button. You will need to provide your business name, address, contact information, a valid credit card, a bank account for disbursements, tax information, and a government-issued photo ID. The verification process includes an identity check that may involve a short video call or document submission. This typically takes one to three business days.
One practical tip: use a dedicated business email address rather than a personal one. Amazon sends a high volume of notifications, policy updates, and performance alerts. Keeping these separate from your personal inbox prevents important messages from getting lost. Also, ensure your bank account information is accurate from day one. Disbursement errors are one of the most common and frustrating issues new sellers encounter, and fixing them requires back-and-forth with Amazon Seller Support, which can delay your first payout by weeks.
💡 Pro Tip: Register as a business entity rather than an individual if you plan to scale. It simplifies tax reporting, adds credibility to your brand, and makes it easier to apply for Amazon Brand Registry later.
3. Conduct Serious Product Research
Product research is where most Amazon businesses are won or lost. A great listing cannot save a product with no demand or margins crushed by competition. You need to identify products with consistent demand, manageable competition, and enough margin to absorb Amazon fees, shipping costs, and advertising spend. Tools like Helium 10, Jungle Scout, and AMZScout are widely used and give you access to estimated monthly sales volumes, competitor revenue, keyword search volumes, and trend data.
Look for products with at least 300 monthly searches for your primary keyword, fewer than 200 reviews on the top three competitor listings, and a selling price between $20 and $70. Products in this range tend to generate enough revenue to cover costs while being affordable enough to drive impulse purchases. Avoid highly seasonal products until you have enough cash flow to handle periods of low inventory turnover. Also, if you are exploring a dropshipping model to minimize upfront inventory risk, read this overview on what dropshipping is and how it works before committing to a sourcing strategy.
4. Source Your Products Responsibly
Once you identify a winning product, you need a reliable supplier. The most common sourcing paths are wholesale (buying branded products from distributors), private label (manufacturing your own branded product, usually from overseas factories), retail arbitrage (buying discounted retail products and reselling them), and online arbitrage (the same concept but sourced from online retailers). Each model has different startup costs, margin profiles, and risk levels.
Private label offers the highest long-term margins and brand control but requires more upfront capital, typically $1,000 to $5,000 for an initial order. Wholesale is easier to start but highly competitive. Retail and online arbitrage require minimal capital but are time-intensive and difficult to scale. Whatever model you choose, always order samples before placing a full inventory order. Inspect quality personally. Supplier reviews on platforms like Alibaba can be manipulated, so request video proof of manufacturing if possible. Factor all landed costs, including freight, import duties, and Amazon inbound shipping, before calculating your true margin.
5. Set Up Your Amazon Brand Storefront
An Amazon Brand Store is a multi-page, customizable storefront available exclusively to sellers enrolled in Amazon Brand Registry. It looks and functions like a mini website within Amazon, complete with a custom URL, branded banners, curated product collections, and embedded video. According to Amazon, stores with regularly updated content see 21% higher repeat visit rates and higher average order values compared to sellers without a store.
To qualify for Brand Registry, you need a registered trademark in the category where you sell. The trademark registration process takes time, so start it early. Brand Registry also gives you access to A+ Content, which allows you to replace the standard product description with rich media modules including comparison charts, lifestyle images, and detailed feature callouts. Sellers using A+ Content report conversion rate improvements of 3% to 10% (Amazon, 2023). Your storefront also becomes a destination for Sponsored Brands ads, which drive external traffic directly to your branded page rather than a generic search results page.
6. Create Optimized Product Listings
Your product listing is your primary sales tool on Amazon. It consists of your title, bullet points, product description, backend search terms, and images. Each of these elements serves a dual purpose: communicating value to shoppers and signaling relevance to Amazon’s algorithm. The algorithm rewards listings that drive clicks and conversions, so every word must earn its place.
Your title should include your primary keyword near the beginning, followed by key product attributes such as size, material, quantity, and compatibility. Bullet points should address the top five customer concerns directly. Avoid vague claims and focus on specific, measurable benefits. Your main image must have a pure white background per Amazon policy, but secondary images should include lifestyle shots, infographics, and scale references. Backend keywords allow you to target additional search terms without affecting the listing’s readability. Fill this field completely with relevant terms your competitors are not targeting in their visible copy. If you want to go deeper on content strategy for your listings, explore these page content analysis techniques that apply directly to e-commerce copy optimization.
💡 Pro Tip: Use the exact phrase a customer would type into the search bar as your first primary keyword in the title. Do not start with your brand name unless you are already a recognized brand on Amazon.
7. Choose Your Fulfillment Method
Amazon offers two main fulfillment paths: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). With FBA, you ship your inventory to Amazon’s warehouses and Amazon handles storage, packing, shipping, customer service, and returns. With FBM, you manage your own storage and ship orders directly to customers. There is also Seller Fulfilled Prime (SFP), which allows FBM sellers to display the Prime badge if they meet Amazon’s strict shipping performance standards.
| Feature | FBA | FBM | Seller Fulfilled Prime |
|---|---|---|---|
| Prime Badge | Yes | No | Yes (if qualified) |
| Fulfillment Control | Amazon | Seller | Seller |
| Storage Fees | Yes | No | No |
| Buy Box Advantage | High | Medium | High |
| Best For | High volume sellers | Large/custom items | Fast shippers with own logistics |
FBA is the most popular choice for new sellers because it unlocks Prime eligibility, which dramatically increases conversion rates. However, FBA fees include fulfillment fees per unit, monthly storage fees, and long-term storage fees for slow-moving inventory. These costs add up fast if you misjudge demand. FBM gives you more control over your costs and is better suited for heavy, oversized, or low-velocity products where FBA fees would destroy your margin. Evaluate both options using Amazon’s Revenue Calculator before committing.
8. Price Strategically and Win the Buy Box
The Buy Box is the white box on the right side of an Amazon product page that contains the Add to Cart button. According to Feedvisor (2023), the Buy Box accounts for approximately 83% of all Amazon sales. Winning it is not purely about having the lowest price. Amazon’s algorithm considers your price, fulfillment method, seller feedback score, shipping speed, inventory levels, and order defect rate when awarding Buy Box ownership.
For new sellers with little feedback history, competitive pricing combined with FBA is the fastest path to Buy Box eligibility. Once you have established a feedback score above 4.5 stars and a low defect rate, you have more pricing flexibility. Use repricing tools like RepricerExpress or BQool to adjust your prices automatically in response to competitor changes. Avoid the trap of constant price undercutting, which triggers a race to the bottom that ultimately hurts your margins and devalues your product in the eyes of shoppers. Sustainable pricing is about finding the floor where you remain competitive without sacrificing profitability.
9. Drive Traffic With Amazon SEO and Advertising
Organic Amazon SEO and paid advertising work together to generate visibility and sales. Amazon SEO focuses on keyword relevance, conversion rate, and sales velocity. The more sales your listing generates for a specific keyword, the higher Amazon ranks it for that term, which generates more organic traffic and more sales. This compounding effect is the core growth engine of successful Amazon stores.
Amazon PPC (Pay-Per-Click) advertising accelerates this process by generating initial sales velocity before your organic ranking climbs. Start with Automatic campaigns to gather keyword data, then build Manual campaigns targeting the highest-converting terms. Monitor your Advertising Cost of Sale (ACoS) closely and optimize weekly. Beyond Amazon’s own tools, driving external traffic through social media, email lists, and SEO-optimized blog content can give your listings a ranking boost because Amazon’s algorithm rewards external traffic that converts. If you want professional help maximizing your Amazon visibility, 1Solutions offers dedicated Amazon SEO services designed to improve both organic rankings and conversion rates. For a broader growth strategy, explore our ecommerce marketing services that complement your Amazon channel with off-platform demand generation.
💡 Pro Tip: Run Sponsored Brand Video ads if you have access to them. Video ads have significantly higher click-through rates than standard Sponsored Product ads and appear in prominent placements across search results.
10. Manage Reviews, Feedback, and Long-Term Growth
Reviews are the social proof engine of Amazon. A product with 50 reviews and a 4.5-star rating will consistently outsell a product with 10 reviews and a 4.8-star rating, because volume signals trustworthiness. According to PowerReviews (2023), 95% of online shoppers read reviews before making a purchase decision. Building a strong review profile early is one of the highest-leverage activities you can do as a new seller.
Amazon’s Terms of Service prohibit incentivized reviews, so you must acquire them through legitimate means. Amazon’s Request a Review button allows you to send a template review request to buyers within 4 to 30 days of delivery. Enroll in Amazon Vine if you are Brand Registered and launching a new product with no reviews, as Vine allows you to send units to trusted Amazon reviewers in exchange for honest feedback. Respond professionally to negative reviews when possible and focus on resolving the underlying product or service issue. For broader e-commerce platform decisions that affect your multi-channel strategy, this WooCommerce vs Shopify comparison is worth reading if you plan to build a brand presence beyond Amazon. Also, if you are considering a dropshipping or hybrid inventory model, the WooCommerce store maintenance checklist offers useful operational practices that translate across platforms. For long-term brand building outside Amazon, consider pairing your store with a strong off-platform content strategy, and our ecommerce SEO packages can help drive consistent organic traffic to your broader digital presence.
Practical Action Plan: What to Do and When
- Do This Now: Register your Amazon Seller account, choose your selling plan, and begin product research using a paid tool like Helium 10 or Jungle Scout. These are the foundational steps that everything else depends on. Do not skip them or rush through them.
- Worth Doing: Apply for a trademark and start the Brand Registry process as soon as you have identified your product. Also set up your FBA shipment plan and create your first optimized listing with professional photography before launch.
- Low Priority (For Now): Building a full brand website, launching social media channels, and creating detailed content marketing assets. These support long-term growth but should not distract you from getting your first product live and generating initial sales data first.
Frequently Asked Questions
How much does it cost to open a store on Amazon?
The minimum cost to start is $39.99 per month for a Professional seller account, plus product sourcing costs. For a private label business, budget at least $2,000 to $5,000 for initial inventory, photography, and advertising. FBA fees and referral fees (6% to 45% of sale price depending on category) are ongoing costs to factor into every margin calculation.
Do I need a business license to sell on Amazon?
Amazon does not require a business license to register as a seller. However, depending on your location and business structure, local laws may require one. Selling as a registered business entity rather than an individual also offers tax and liability advantages, so it is worth setting up properly from the start.
How long does it take to start making sales on Amazon?
Most new sellers make their first sale within two to four weeks of launching a well-researched and properly optimized product listing. Building consistent revenue takes longer, typically three to six months, as you accumulate reviews, refine your advertising, and improve your organic ranking. Sellers who combine FBA with PPC advertising from day one tend to reach profitability faster.
What is the difference between FBA and FBM?
FBA means Amazon stores, packs, and ships your products and handles customer service. FBM means you manage all of that yourself. FBA is better for high-volume sellers who want Prime eligibility and lower operational overhead. FBM is better for large, heavy, or custom products where FBA storage and fulfillment fees would eliminate your margin.
Can I sell on Amazon and my own website at the same time?
Yes, and this is actually a recommended strategy. Selling on Amazon builds cash flow and product reviews while your own website builds brand equity and direct customer relationships. Many successful sellers use Amazon as their primary revenue channel and their own website as a way to collect email addresses, retarget customers, and sell at higher margins without Amazon’s fees. A multi-channel approach reduces your dependence on a single platform.
Conclusion
The decision to open a store on Amazon is one of the most accessible paths into e-commerce available today. The platform gives you access to hundreds of millions of active shoppers, a world-class fulfillment network, and a robust advertising ecosystem. The trade-off is that Amazon is also one of the most competitive retail environments in existence, and success requires disciplined product research, professional listings, smart pricing, and consistent attention to your metrics. Follow these 10 steps in order, invest in the right tools, and treat your Amazon store like the real business it is. If you want expert support accelerating your Amazon growth or building a broader digital presence alongside your store, the team at 1Solutions has the experience to help you scale faster and smarter.
