How to Become an Amazon Seller: Complete Beginner's Guide (2026)

Over 60% of Amazon sales come from third-party sellers—people like you running their own businesses on Amazon's marketplace. Whether you want a side income or a full-time business, becoming an Amazon seller is more accessible than ever.

This guide walks you through everything: account setup, business model options, realistic costs, and the path from complete beginner to your first sale.

The Amazon Opportunity in 2026

Amazon remains the dominant e-commerce platform in the US, with:

• 300+ million active customers worldwide
• $600+ billion in annual marketplace sales
• 60%+ of sales from third-party sellers
• Built-in trust, traffic, and infrastructure

You don't need to build a website, drive traffic, or convince customers to trust you. Amazon handles that. Your job is to find products people want to buy and get them listed.

Amazon Seller Account Types

Before anything else, understand your account options.

Individual Seller Account

• Cost: $0.99 per item sold (no monthly fee)
• Best for: Testing the waters, selling <40 items/month
• Limitations: No access to advanced selling tools, reports, or advertising

Professional Seller Account

• Cost: $39.99/month (no per-item fee)
• Best for: Serious sellers, anyone selling 40+ items/month
• Benefits: Full access to tools, reports, advertising, and bulk listings

The math: If you sell more than 40 items per month, Professional is cheaper. But beyond cost, Professional unlocks features you'll need to scale—advertising, detailed reports, and API access for tools.

Recommendation: Start with Individual if you're just testing. Switch to Professional once you're committed.

Amazon Business Models Explained

"Selling on Amazon" means different things to different people. Here are the main approaches:

Private Label

Create your own branded products, typically manufactured in China, and sell them exclusively on Amazon.

• Startup cost: $5,000-$15,000+
• Pros: Highest margins, brand equity, no competition on your listing
• Cons: Highest risk, requires product development, need to drive traffic/reviews
• Best for: Entrepreneurs with capital and patience

Wholesale

Purchase existing brand products from authorized distributors and resell on Amazon.

• Startup cost: $1,000-$5,000
• Pros: Lower risk (proven products), repeatable, scalable
• Cons: Competition on listings, lower margins than private label
• Best for: Systematic sellers who want predictability

For a complete guide, see Amazon Wholesale Business Guide.

Retail Arbitrage (RA)

Find discounted products at retail stores (clearance, sales) and resell on Amazon for profit.

• Startup cost: $200-$1,000
• Pros: Lowest barrier to entry, learn while earning
• Cons: Time-intensive, inconsistent supply, hard to scale
• Best for: Beginners testing the waters, side hustlers

Online Arbitrage (OA)

Same concept as retail arbitrage, but sourcing deals from online retailers instead of physical stores.

• Startup cost: $500-$2,000
• Pros: Work from home, broader deal access
• Cons: Still inconsistent, competitive
• Best for: Those who prefer working online

See our analysis: Is Online Arbitrage Still Profitable?

Dropshipping

List products you don't own. When a sale happens, your supplier ships directly to the customer.

• Startup cost: $100-$500
• Pros: No inventory investment, low risk
• Cons: Lowest margins, policy risks on Amazon, no quality control
• Best for: Testing product ideas (not recommended as primary model)

For a detailed comparison, see Amazon Business Models Compared.

Step-by-Step: Creating Your Seller Account

What You'll Need

Before starting registration, gather:

• Government-issued ID (driver's license or passport)
• Bank account (for receiving payments)
• Credit card (for seller fees)
• Phone number (for verification)
• Tax information (SSN for individuals, EIN for businesses)

Registration Process

1. Go to sellercentral.amazon.com and click "Sign up"
2. Choose Individual or Professional account
3. Enter your personal/business information
4. Verify your identity (Amazon may request video verification)
5. Provide bank and tax information
6. Complete the setup wizard

The process takes 15-30 minutes. Amazon may take 1-3 days to verify and approve your account. In some cases, they request additional documentation.

Seller Central Overview

Once approved, you'll access Seller Central—your dashboard for:

• Listing products
• Managing inventory
• Processing orders
• Viewing reports
• Running advertising
• Handling customer service

Spend time exploring before listing anything. Understand where things are.

Costs to Get Started

Be realistic about what it takes. Here's a breakdown by business model:

One-Time/Setup Costs

Ongoing Costs

Initial Inventory Investment by Model

Realistic Total to Start

You can start with very little. But undercapitalization limits your options and slows growth.

Choosing Your First Business Model

Not sure which model fits? Consider these factors:

Available Capital

Time Availability

Risk Tolerance

Our Recommendation for Beginners

Start with Retail or Online Arbitrage to learn the platform with minimal risk. Once you understand Amazon's systems, fees, and selling dynamics, transition to Wholesale for more predictable, scalable income.

Wholesale hits the sweet spot: lower risk than private label, more scalable than arbitrage, and a systematic approach that rewards process over luck.

Essential Tools for New Sellers

You don't need much to start, but certain tools save significant time.

Free Tools

Paid Tools (as you scale)

Don't over-invest in tools early. Start with free options, add paid tools as specific needs arise.

Common Beginner Mistakes

Learn from others' expensive lessons:

1. Jumping In Without Research

The sellers who struggle most are those who list products without understanding fees, competition, or demand. Spend time learning before spending money on inventory.

2. Choosing Saturated Products

"Everyone else is selling it" doesn't mean you should too. High competition means low margins and difficult Buy Box wins.

3. Underestimating Fees

Amazon's fees are complex: referral fees, FBA fees, storage fees, and more. A product that looks profitable at 30% margin might actually lose money after all fees.

See our complete fee breakdown.

4. Ignoring Account Health

Amazon monitors seller metrics closely. Poor performance (late shipments, high defect rates, policy violations) leads to account suspension. Protect your account like your business depends on it—because it does.

5. Over-Ordering Initially

Excitement leads to over-buying. Start small, validate that products sell as expected, then scale. It's better to run out of stock than to be stuck with inventory that doesn't move.

6. Neglecting the Numbers

Successful sellers know their numbers: cost per unit, fees, actual profit, ROI. Guessing leads to unpleasant surprises. Track everything from day one.

Your First 30 Days: A Roadmap

Week 1: Setup

• Create Amazon Seller account
• Set up business entity (LLC) and get EIN
• Obtain resale certificate
• Explore Seller Central
• Download Amazon Seller app

Week 2: Learning

• Understand fee structures
• Research your chosen business model
• Set up free RocketSource account for product research
• Study category restrictions and gating

Week 3: Sourcing

• Find your first products (arbitrage: local stores or online deals)
• Or: Apply to wholesale suppliers and analyze price lists
• Calculate profitability for potential purchases
• Make your first small inventory purchase

Week 4: Selling

• Prep inventory for FBA (or list as FBM)
• Create your first shipment to Amazon
• List products and monitor for sales
• Learn from what works (and what doesn't)

Scaling Beyond the Basics

Once you've made your first sales and understand the fundamentals:

Short-term (Months 2-6)

• Expand product selection systematically
• If doing arbitrage: transition toward wholesale
• Build relationships with suppliers
• Optimize for profitability over revenue

Medium-term (Months 6-12)

• Add more suppliers/sourcing channels
• Implement inventory management systems
• Consider outsourcing prep to FBA prep centers
• Explore advertising (PPC)

Long-term (Year 2+)

• Negotiate better supplier terms
• Hire help (VAs, employees)
• Consider private label for higher margins
• Build toward a sellable business asset

Frequently Asked Questions

Is it too late to start selling on Amazon in 2026?

No. While competition has increased, so has the market. The key is choosing the right business model and niche. New sellers still succeed daily—they just need to be smarter than sellers who started when it was easier.

How much can I realistically make?

Varies wildly. Part-time arbitrage sellers make $500-$2,000/month profit. Full-time wholesale sellers typically range $3,000-$15,000/month. Top sellers exceed $50,000/month, but that takes years and significant capital.

Do I need a business license?

Technically, Amazon allows individual sellers without formal business entities. However, for wholesale (where suppliers require business documentation) and for liability protection, forming an LLC is strongly recommended.

Can I sell on Amazon from anywhere?

Amazon accepts sellers from most countries, though options vary by marketplace. US sellers have the most flexibility. International sellers can access US marketplace but face additional complexity (taxes, shipping, etc.).

Should I use FBA or fulfill orders myself (FBM)?

FBA is recommended for most sellers. It wins Buy Box more often, handles customer service and returns, and scales better. FBM makes sense for oversized items, slow sellers, or when testing products before committing to FBA.

What categories should I start with?

Avoid gated categories (requires approval—see our gating guide) and complex categories (clothing sizes, electronics returns) initially. Good starting points: Home & Kitchen, Toys & Games, Health & Beauty, Grocery.

Next Steps

Ready to begin? Here's your action plan:

1. Create your Amazon Seller account (Individual to start, upgrade later)
2. Decide on your business model based on capital and time
3. Sign up for RocketSource free to access product research tools
4. Find your first products and calculate true profitability
5. Make a small test purchase and list your first items
6. Learn, adjust, and scale based on real results

Related Guides

• Amazon Business Models Compared — Detailed breakdown of each model
• Amazon Wholesale Business Guide — Complete wholesale walkthrough
• Amazon Seller Fees Explained — Understand every fee
• Free UPC to ASIN Converter — Start researching products today
• What Is an ASIN? — Understand Amazon product identifiers
• Amazon Barcode Types Explained — UPC, EAN, FNSKU, and more

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