How to Set Up Amazon Seller Account: A Step-by-Step Guide

Setting up a seller account is the first step if you want to sell your products on Amazon.

This article will provide a step-by-step guide to setting up an Amazon seller account and some tips for success on the platform.

Decide the Business Model

There are several different Amazon business models to choose that you need to decide what fits you best:

Private Label

• Create and sell products under your own brand name
• Requires an investment in inventory and sourcing
• It can be highly profitable if successful, but it also carries some risk

Wholesale

• Purchase products in bulk from manufacturers or distributors and resell them on Amazon
• It can be less risky than private label since you're selling established products, but it may have lower profit margins

Retail Arbitrage

• Purchase products from retail stores and resell them on Amazon
• It can be a good way to get started with minimal investment but it requires a lot of time and effort to find profitable deals

Dropshipping

• Sell products without holding inventory by partnering with a supplier who ships the products directly to customers
• It can be a low-risk way to start selling on Amazon, but it may have lower profit margins and can be challenging to manage the supply chain

Handmade

• Sell unique, handmade products on Amazon
• It requires verification of the handmade nature of the products and may have specific category requirements, but it can be a good option for artisans and crafters.

Each business model has advantages and disadvantages, and your best choice will depend on your goals, resources, and preferences.

Decide the Fulfillment Method

There are two different fulfillment methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

With FBA, you send your inventory to Amazon's fulfillment centers, and they handle storage, packaging, and shipping to customers. This can be a great option if you want to take advantage of Amazon's Prime shipping options and have more time to focus on other aspects of your business. 

FBM means you'll be responsible for storing and shipping your inventory. While this can be more work, it gives you more control over the process and can be a good option if you have a smaller sales volume or want to keep more profits. 

Consider your business needs and preferences when deciding which model to use.

Creating an Amazon seller central account is a relatively straightforward process, but it requires some basic information about your business and a valid payment method. 

Depending on the sales volume you expect to make, you'll need to choose between an individual seller account and a professional seller account.

Once you've set up your account, you'll be able to create product listings and start selling to millions of potential customers on Amazon.

Decide Your selling plan

The two types of Amazon selling plans are individual and professional and differ in several key ways. Here's a breakdown of the most important differences for a seller:

1. Price: The individual selling plan has no monthly fee, but you'll be charged a per-item fee of $0.99 for each item sold. The professional selling plan has a monthly fee of $39.99 but no per-item fee.
2. Advertising: You cannot use Amazon Sponsored Products ads with the individual plan
3. Brand tools: You cannot access brand owner tools like A+ content and stores
4. Promotions: You cannot use promotions with the individual selling plan

If you are serious about selling on Amazon, I cannot imagine a situation where you won't need a professional plan. You must advertise on the Amazon platform to get visibility for your products.

Tip: You can start by creating an individual account, and when you are ready to start selling, upgrade it to professional. You can change the seller central account type from individual to professional and vice versa without restrictions.

How to Create an Amazon Seller Account Step-by-Step?

You will need the following to complete the registration process:

• Valid government-issued ID or passport
• Recent bank account or credit card statement 
• Chargeable credit card 
• Mobile phone (number)

To set up an Amazon seller account, you'll need to follow these steps:

1. Go to the Amazon Website

To start, navigate to the Amazon website (sell.amazon.com) and click the "Sign up" button.

2. Click on Create an Amazon Account

You'll need to create a new account by clicking the "Create your Amazon account" button and following the prompts. You need to validate your email address and add your mobile phone number.

3. Enter Your Business Information 

You'll need to provide some basic information about your business, including your country, legal business name, address, and contact information.

First, you need to specify your country and the business type from the following:

• State-owned business
• Publicly-listed business
• Privately-owned business
• Charity

If you don't have a business formed yet, select "None, I am an individual." 

Complete the form with the correct information and Click on "Agree and continue."

Next, you'll need to provide your bank account information.

4. Enter Your Personal Information

You'll need to fill in the form of primary contact person information.

5. Provide your Payment & billing information

To complete your registration, you must provide a bank accout number and a valid credit card information. Amazon will use this information to collect fees and charges associated with your account.

Amazon also deposits the money you receive from sales into this bank account.

6. Provide the Information for Your Product and Amazon Store

After the billing information, you are asked to provide some information about your products and the name of your Amazon store. If you are unsure about the UPCs, choose "Yes."

7. Verify your identity 

To ensure the security of your account, Amazon may require you to verify your identity by providing official documents. Upload the necessary documents.

Once you have submitted all the necessary documents for your Amazon seller central account, the next step is to undergo an Identity Verification process, which involves a video call with an Amazon representative.

During this process, the representative will verify the authenticity of the documents and personal information you have provided.

It is now a mandatory part of the account setup process, so it is recommended that you complete it as soon as possible to avoid any delays in selling your products on Amazon.

If you cannot take the call at the time of application, you can schedule an appointment for a future date and time.

8. List your products for sale

Finally, you'll need to list your products for sale by creating product listings or uploading inventory files. Be sure to follow Amazon's guidelines for creating product listings, as this will help your products appear in search results and attract more customers.

How Much Does it Cost to Sell on Amazon?

The cost is an important consideration when setting up an Amazon seller account. Amazon charges different fees for selling on their platform, including referral, fulfillment, and subscription fees.

Referral fees are a percentage of the item price that Amazon charges for each item sold, while fulfillment fees are charged if you use Amazon's FBA service. 

If you choose to use a professional seller account, there is also a monthly subscription fee. The exact fees you'll pay will depend on various factors, including the product category, the item price, and the fulfillment method you choose.

Before you start selling on Amazon, it's essential to carefully review the fee structure and calculate the costs involved to ensure you can price your products competitively while still making a profit.

In addition to the fees associated with selling on Amazon, there are also costs involved in advertising your products through Amazon's Sponsored Products program.

With Sponsored Products, you can create ads that appear on Amazon search results and product detail pages, helping to boost your visibility and sales.

Sponsored Products charges a cost-per-click (CPC) fee, meaning you'll pay each time a customer clicks on one of your ads. The CPC fee varies depending on the competition for the keyword you're targeting, as well as the quality and relevance of your ad.

It's important to carefully monitor your advertising costs and adjust your bids and keywords to ensure you get the best possible return on investment.

With a well-planned advertising strategy and the right PPC tools, Sponsored Products are powerful for driving sales and growing your business on Amazon.

Tips for Selling on Amazon

It's important to note that success on Amazon isn't guaranteed – there's a lot of competition, and you'll need to put in some effort to make your products stand out. 

That's why we've included tips for optimizing your product listings and building a positive reputation on the platform.

1. Competitiveness

Amazon is a highly competitive marketplace, so it's crucial to research and ensure demand for your products. Consider the competition, pricing, and customer demand before you start selling.

2. Use high-quality product images

Good product images are crucial for attracting customers and showcasing your products. Use high-quality images that show the product from multiple angles and in use.

3. Write detailed and compelling product descriptions

Provide a clear and detailed description of your product, highlighting its features and benefits. Use bullet points and short paragraphs to make the information easy to read.

4. Optimize your product titles and keywords

Use relevant keywords in your product titles and descriptions to improve your search rankings. Use Amazon's keyword research tools to identify high-traffic and relevant keywords for your products.

5. Set competitive pricing

Price your products competitively to attract customers and beat the competition. Use Amazon's pricing tools to monitor your competitors and adjust your prices accordingly.

6. Encourage customer reviews

Customer reviews are an important factor in Amazon's search algorithm and can significantly impact your sales. Encourage customers to leave reviews by providing great products and excellent service.

7. Monitor your seller metrics

Amazon uses seller metrics to evaluate your performance, so it's important to keep an eye on these metrics and make improvements where necessary. Metrics to monitor include order defects, late shipment, and cancellation rates.

8. Provide excellent customer service

Amazon places a high value on customer satisfaction, so be sure to provide excellent customer service, including fast response times to customer inquiries and promptly addressing any complaints or issues.

9. Shipping and fulfillment

If you're using Amazon's FBA service, know the fees and requirements involved. If you're fulfilling orders yourself, ensure you have a reliable and efficient shipping process.

10. Taxes and legal considerations

Selling on Amazon may have tax implications, so consult a tax professional to ensure you comply with local and national tax laws. Additionally, be aware of any legal requirements for your products, such as safety standards and certifications.

11. Invest in education

While you can certainly learn how to sell on Amazon through trial and error, this approach can be time-consuming and costly. Amazon FBA courses can help you avoid costly mistakes and get up to speed faster.

Frequently Asked Questions

What type of business do I need to have to set up an Amazon seller account? 

You can set up an Amazon seller account as an individual or registered business entity, such as an LLC or corporation.

What documents do I need to provide to set up an Amazon seller account? 

You'll need to provide basic information about your business, such as your legal business name, address, and contact information. You may also need to provide tax information and a government-issued ID.

How long does it take to set up an Amazon seller account? 

The account setup process typically takes a few hours to a few days, depending on how quickly you can provide the necessary information and documents and jump on a video call.

Are there any other ways to make money with Amazon?

Amazon offers content creators multiple avenues to monetize their audience without aggressive sales tactics. The most popular options are the Amazon Associates program and the Amazon Influencer Program.

Wrapping Up

Setting up an Amazon seller account is a great way to reach a broad audience and grow your business. Whether you're a small business owner, a budding entrepreneur, or just looking to supplement your income, Amazon provides a powerful platform to sell your products.

By following the step-by-step guide we've provided and considering the different business models available, you'll be well on your way to success on Amazon.

However, it's important to remember that success on the platform requires ongoing effort and a willingness to adapt to changing market conditions.

You can build a successful business on Amazon by keeping up with industry trends and best practices, providing excellent customer service, and continually optimizing your product listings.

So why wait? Start setting up your Amazon seller account today and begin your journey toward e-commerce success!