Introduction

open an online store with amazon is one of the fastest ways to reach millions of buyers without building a standalone website. Amazon handles payments, traffic, and trust signals, so you can focus on product selection, listings, and operations. For many entrepreneurs this means faster revenue and lower customer acquisition costs compared with starting from zero.

This guide explains why you might choose Amazon, what to expect in cost and timeline, and the exact steps to launch and scale. It covers account types, Fulfillment by Amazon (FBA) versus merchant fulfillment, listing optimization, advertising basics, pricing benchmarks, and integrations with tools like Jungle Scout and Helium 10. You will get checklists, a 0-8 week timeline, realistic numbers, and common pitfalls to avoid.

Read this if you want an actionable plan to start selling on Amazon, validate products quickly, and build a repeatable process for growth.

Overview of selling on Amazon

Selling on Amazon means listing products on one of the largest online marketplaces in the world. Amazon has multiple marketplaces by country, program options like Fulfillment by Amazon (FBA), and two main seller account types: Individual and Professional.

Individual accounts charge no monthly fee but a per-item selling fee of $0.99, which suits low-volume sellers. Professional accounts cost $39.99 per month and remove the per-item fee while enabling advanced features such as bulk listing tools, API access, and eligibility for Buy Box. Referral fees are category dependent and typically range from 8 percent to 45 percent, with many common categories around 15 percent.

You can fulfill orders yourself (merchant fulfilled network) or use FBA, where Amazon stores, picks, packs, ships, and handles customer service. FBA adds fulfillment and storage fees but improves delivery speed and Buy Box competitiveness. For a small standard item weighing under 1 pound, expect FBA fulfillment fees of roughly $3.00 to $4.50 plus monthly storage fees that vary by season.

Always check Amazon Seller Central for current fee schedules.

When to choose Amazon: launch

Principles for profitable selling on Amazon

Start with unit economics. Work backward from a target net margin to determine allowable costs for product sourcing, Amazon fees, advertising, and returns. A simple target: aim for at least 20 percent net margin after Amazon fees and advertising for consumer goods in crowded categories.

If your gross margin is 40 percent off cost, you can typically spend up to 20 percent on combined Amazon fees and advertising.

Differentiate through listing quality, pricing strategy, and supply chain reliability. Listing quality includes a keyword-optimized title, five bullets, a clear product description, images that meet Amazon guidelines, and enhanced brand content if you are brand registered. High-quality images increase conversions 10 to 30 percent in many categories.

Control inventory to avoid stockouts or long-term storage fees. Use a reorder point formula: reorder when inventory equals expected sales during lead time plus safety stock. Example: if you sell 300 units per month and lead time is 4 weeks, lead time demand is 75 units.

Add safety stock of 25 units, reorder point = 100 units.

Test advertising with a disciplined approach. Start with Sponsored Products automatic campaigns to gather search terms for 1-2 weeks, then move spent budget into manual campaigns with exact-match keywords that show low cost per click and high conversion. Target a break-even or slightly profitable ACOS (advertising cost of sale) in the launch phase to maximize rank, then tighten to profitable targets as organic rank improves.

Protect your brand with Amazon Brand Registry if you have a trademark. Brand Registry unlocks A+ Content, Sponsored Brands ads, and enhanced control over listings. A registered trademark is typically required and can take 6-12 months to obtain depending on jurisdiction.

Steps to open an online store with amazon

This step-by-step plan covers the first 8 weeks from account setup to live product sales. Use the timeline as a realistic roadmap for a single product launch.

Week 0 to 1: Setup and research

Create an Amazon Seller Central account. Choose Professional if you expect more than 40 sales per month.
Verify payment and tax information. Prepare a scanned ID, bank statement, and business details.
Use product research tools like Jungle Scout or Helium 10 to validate demand. Target 300+ monthly sales and a 3 percent or better conversion rate for a new listing.

Week 1 to 3: Source product and prepare listings

Order 200 to 1,000 units depending on your capital and category to keep unit cost below a target FOB price.
Prepare product photography: 6-8 images with 1000x1000 pixels minimum and a white background for the main image.
Draft an SEO-optimized title and five bullets. Use Helium 10 or MerchantWords for keyword lists.

Week 3 to 5: Ship to Amazon or your warehouse

Choose FBA if you want Prime eligibility and scaling simplicity. Expect 2 to 4 weeks lead time including inspection and shipping.
For FBA, create a shipment plan in Seller Central and label units according to Amazon guidelines. Consider using a prep center if inventory needs bundling or labeling.

Week 5 to 8: Launch and optimize

Run Sponsored Products automatic campaign for 7-10 days to collect search terms. Budget $15 to $50 per day depending on category competitiveness.
Push initial sales with discounted coupons or external traffic from Facebook or Google ads. Track ACOS to measure efficiency.
Monitor conversion rate, Buy Box percentage, and inventory. Optimize pricing and keywords weekly.

Checklist for launch

Seller account verified and tax info submitted.
UPCs or EANs purchased and assigned.
High-resolution images and optimized copy.
Initial inventory ordered and inbound shipments created.
Sponsored campaign running and keyword list started.

Pricing and comparison considerations

Account and platform fees

Amazon Individual account: $0.99 per sale plus referral fees.
Amazon Professional account: $39.99 per month plus referral fees.
Referral fees: typically 8 to 15 percent for most categories, but can be higher for electronics or fashion.

Fulfillment cost examples (approximate)

FBA small standard item under 1 lb: $3.00 to $4.50 per unit for fulfillment plus per-cubic-foot storage fees.
FBA monthly storage: $0.75 to $2.40 per cubic foot depending on month and region. Higher in Q4.
Merchant fulfilled network: variable carrier costs, packaging, time cost. For small items, USPS or UPS negotiated rates often $3.50 to $8 per order.

Advertising and customer acquisition

Sponsored Products cost per click (CPC): $0.20 to $3.00 depending on category. Competitive categories like baby or beauty may average $1.00 to $2.50 CPC.
Break-even ACOS example: If your profit margin per unit is $10 and you sell for $30, break-even ACOS = advertising spend / sales = (ad spend) / (ad-driven revenue). To preserve $10 profit, ad spend should be less than $10, so ACOS < 33 percent.

Comparing Amazon to Shopify for omnichannel strategies

Amazon pros: built-in traffic, trust, fast path to sales, Prime customers. Lower need for marketing in early stages.
Amazon cons: fees, limited control over customer data, competition, strict rules.
Shopify pros: full brand control, direct customer relationships, flexible checkout and subscription options.
Shopify cons: you must drive traffic and conversion, marketing cost is higher initially.

A common approach is to launch on Amazon to validate product-market fit and acquire sales velocity, then build a Shopify store for higher margin repeat customers and email capture.

Tools and resources

Seller platforms and Amazon services

Amazon Seller Central: free to register; Professional plan $39.99 per month. Required for listing, payments, inventory, and reports.
Fulfillment by Amazon (FBA): pricing varies by size, weight, and storage time. Use the FBA calculator in Seller Central to estimate per-SKU costs.
Amazon Brand Registry: free but requires a registered trademark.

Product research and listing tools

Jungle Scout: product research, sales estimates, starting at about $49 per month.
Helium 10: keyword research, listing optimization, starting around $39 per month for entry plans.
Keepa: price and sales rank history tracking, subscription from about 15 euros per month.
MerchantWords: keyword research, subscription plans starting near $29 per month.

Advertising and analytics

Amazon Advertising (Sponsored Products, Sponsored Brands, Sponsored Display): budget flexible by campaign; expect $300 to $1,500+ monthly at launch for meaningful data.
Sellics or Perpetua: advertising optimization platforms, pricing varies with ad spend management percentages.

Operations and accounting

ShipStation: multi-carrier shipping software, starts around $9 per month.
QuickBooks Online: cloud accounting, starts around $20 per month, helps reconcile Amazon payouts and fees.
InventoryLab: inventory tracking, profit and loss per SKU, starting around $49 per month.

Third-party prep and logistics

U.S. based prep centers: Deliverr (fulfillment alternative), ShipBob (fulfillment network), and local prep centers typically charge $1 to $3 per unit for labeling, polybagging, and small prep tasks.

Free resources

Amazon Seller University: free video tutorials inside Seller Central.
Reddit communities like r/FulfillmentByAmazon for peer advice and case studies.

Common mistakes and how to avoid them

Neglecting unit economics

Many sellers list products without calculating Amazon fees, shipping, advertising, and returns. Avoid this by building a simple profit model per SKU that includes cost of goods sold, Amazon referral fees, FBA or shipping fees, advertising, and a buffer for returns.

Overordering inventory

Ordering too much inventory ties up cash and risks long-term storage fees. Use a conservative initial order (200-500 units for most categories) and plan reorder points based on lead time and forecasted sales.

Poor listing quality

Low-quality images and weak copy reduce conversion rates. Invest in professional photography and use keyword research to craft titles and bullet points. A 1 percent improvement in conversion rate on a listing that sells 500 units per month at $25 each increases monthly revenue by $125.

Improper use of promotions and reviews

Manipulating reviews or using incentivized reviews outside Amazon policies can lead to suspensions. Use Amazon-compliant programs like the Early Reviewer Program (if available) or Amazon Vine once eligible. Drive legitimate reviews by following up with Amazon Buyer-Seller Messaging templates.

Ignoring account health metrics

Late shipments, A-to-z claims, and high order defect rates can result in account suspension. Monitor performance metrics weekly and respond to customer messages within 24 hours. Implement a returns and refund policy that minimizes disputes.

FAQ

Do I Need a Business or LLC to Sell on Amazon?

You can sell as an individual using your personal details, but forming a business entity such as a limited liability company (LLC) provides liability protection and tax structure benefits. Many sellers register an LLC before scaling or when opening a Professional account to keep business and personal finances separate.

How Much Does It Cost to Start Selling on Amazon?

Initial costs typically range from $1,500 to $10,000 depending on product, inventory quantity, photography, and advertising. A realistic small launch budget is $2,500 to $5,000 covering 200-500 units, product photos, initial ad spend, and basic tool subscriptions.

What is Fulfillment by Amazon and When Should I Use It?

Fulfillment by Amazon (FBA) is a service where Amazon stores, ships, and provides customer service for your products. Use FBA

How Long Does It Take to Get the First Sale?

With a well-priced product and basic advertising, many sellers see their first sale within days of a listing going live. Realistically, plan for 1 to 4 weeks to gather initial sales, ads data, and reviews to attain steady momentum.

Can I Sell on Amazon and My Own Website at the Same Time?

Yes. Many entrepreneurs use Amazon for reach and Shopify or WooCommerce for direct-to-consumer sales, email capture, and higher lifetime value. Keep inventory synchronized using tools like Sellbrite or ChannelAdvisor to avoid overselling.

Next steps

Create your Amazon Seller Central account and choose Professional if you plan to exceed 40 sales per month. Have business and tax documents ready to speed verification.
Validate one product with Jungle Scout or Helium 10 using target metrics of 300+ monthly demand and a 30-40 percent gross margin. Order a conservative test batch (200-500 units).
Prepare a launch bundle: high-resolution images, optimized copy, initial Sponsored Products campaign with $15 to $50 per day, and a plan for requesting legitimate reviews via Amazon-compliant follow-up.
Track metrics weekly: sessions, conversion rate, Buy Box percentage, ACOS, and inventory days of cover. Adjust price, ad spend, and reorder cadence based on data.

Checklist summary

Account setup and verification complete
Product research validated with demand and margin
Inventory ordered and inbound planned
Listings ready with images and keywords
Advertising plan and initial budget allocated

Open an Online Store with Amazon Quick Start Guide