How to Register as an Amazon Seller: Process, Requirements, Fees, and Key Business Considerations

Selling on Amazon can be a powerful opportunity for small businesses, product brands, wholesalers, manufacturers, importers, and entrepreneurs. However, becoming an Amazon seller is not simply a matter of opening an account and uploading products. Sellers must understand registration requirements, selling plans, referral fees, fulfillment costs, advertising expenses, product compliance, insurance requirements, and profit calculation before starting.

This guide explains the major steps, methods, and costs involved in becoming an Amazon seller, especially for businesses planning to sell on Amazon.com in the United States.

1. Choosing the Right Amazon Selling Plan

Amazon offers two main selling plans: the Individual Plan and the Professional Plan.

Individual Selling Plan

The Individual Plan is best for sellers who are just testing the market or expect to sell fewer than 40 units per month.

Instead of paying a monthly subscription fee, Individual sellers pay a per-item fee when a product sells. This plan may be suitable for very small sellers, hobby sellers, or businesses testing a few products before committing to a larger Amazon strategy.

Professional Selling Plan

The Professional Plan is designed for businesses that plan to sell regularly, build a brand, use advertising, manage inventory, or sell more than 40 units per month.

The Professional Plan has a monthly subscription fee. It also provides access to more advanced selling tools, bulk listing features, advertising options, business reports, brand-building tools, and other functions that are important for serious sellers.

For most businesses, the Professional Plan is the better long-term choice. If a seller expects to sell more than 40 units per month, the Professional Plan usually makes more sense than paying a per-unit fee under the Individual Plan.

2. Information and Documents Needed to Register

Before opening an Amazon seller account, businesses should prepare the following information:

Basic Account Information

Sellers typically need:

A business email address
A phone number
A valid credit or debit card
A bank account for receiving payments
Business name and address
Legal name of the owner or authorized representative
Tax information
Product category information
Store name

Identity Verification Documents

Amazon may require identity verification documents such as:

Government-issued ID
Passport or driver’s license
Proof of residential or business address
Recent bank statement, credit card statement, or utility bill
Business registration documents, if applicable

The information on documents should match the information entered in the seller account. Name, address, business entity, and bank details should be consistent. Inaccurate or inconsistent information can delay approval.

Tax Information

Sellers must complete Amazon’s tax interview during registration. U.S. sellers generally provide U.S. taxpayer information. Non-U.S. sellers may need to provide appropriate tax forms depending on their business structure and tax status.

Because tax responsibilities can vary depending on the seller’s location, business entity, and sales volume, sellers should consult a qualified tax professional when needed.

3. Step-by-Step Amazon Seller Registration Process

Step 1: Select the Marketplace

For businesses targeting U.S. customers, the main marketplace is Amazon.com. Sellers should confirm whether they want to sell only in the United States or also expand into Canada, Mexico, or other marketplaces later.

Step 2: Choose a Selling Plan

Sellers choose between the Individual Plan and the Professional Plan. New sellers can start with one plan and change later, but businesses that plan to sell actively usually start with the Professional Plan.

Step 3: Create an Amazon Seller Account

The seller creates an account using a business email address. It is usually better to use a dedicated business email rather than a personal shopping email.

Step 4: Enter Business Information

Amazon will request the seller’s legal name, business name, address, phone number, business type, and related details.

Business types may include:

Individual
Sole proprietor
LLC
Corporation
Partnership
Other legal business structures

Step 5: Enter Personal and Ownership Information

Amazon may request information about the business owner, legal representative, or beneficial owners. This can include full legal name, date of birth, nationality, residential address, and identity documents.

Step 6: Add Payment and Deposit Information

Sellers must provide:

A valid credit or debit card for Amazon charges
A bank account to receive sales proceeds

Amazon uses the credit card for monthly subscription fees, advertising charges, refunds, and other account-related expenses.

Step 7: Create Store Information

Sellers choose a store display name. This is the name customers may see on Amazon. A professional store name should be simple, clear, and aligned with the seller’s brand.

Amazon may also ask whether the seller owns the brand, manufactures the products, or has product identifiers such as UPC, EAN, ISBN, or GTIN.

Step 8: Complete Identity Verification

Amazon may require sellers to upload documents and complete identity verification. This can include uploading a government-issued ID and proof of address. In some cases, Amazon may require a video call or selfie-based verification.

Step 9: Complete the Tax Interview

The tax interview must be completed before full selling activity can begin. Sellers should make sure all tax information is accurate and consistent with their legal business structure.

Step 10: Start Listing Products

Once the seller account is approved, the seller can begin creating product listings or adding offers to existing Amazon product pages.

4. Product Listing Methods

There are two basic ways to list a product on Amazon.

Selling on an Existing Product Listing

If the product already exists on Amazon, the seller may be able to add an offer to the existing listing. This is common for resellers, wholesalers, and distributors selling branded products that are already listed.

In this case, the seller competes with other sellers on the same product page. Price, shipping speed, inventory availability, seller rating, and fulfillment method can affect the seller’s competitiveness.

Creating a New Product Listing

If the product is new to Amazon, the seller must create a new product detail page. This requires:

Product title
Product images
Bullet points
Product description
Brand name
Product category
UPC, EAN, ISBN, or GTIN
Product dimensions and weight
Search keywords
Compliance information, if required

For private label or branded products, creating a high-quality product listing is very important. Product images, keywords, pricing, reviews, and advertising all affect sales performance.

5. Product Identifiers: UPC, GTIN, and Barcode Requirements

Most products sold on Amazon require a product identifier such as UPC, EAN, ISBN, or GTIN. For many sellers, this means obtaining official barcodes through GS1.

Businesses selling private label products should avoid using unreliable or unauthorized barcode sources. Incorrect or invalid product identifiers can cause listing problems, brand conflicts, or account issues.

Some products may qualify for a GTIN exemption, but sellers must apply through Amazon and meet the required conditions.

6. Amazon Brand Registry

Amazon Brand Registry is a program designed to help brand owners protect and manage their brands on Amazon.

Brand Registry can provide access to tools such as:

Enhanced brand protection
A+ Content
Brand Store
Sponsored Brands advertising
Brand analytics
Better control over product listings

To enroll in Brand Registry, the business generally needs an active registered trademark or a pending trademark application that meets Amazon’s eligibility requirements.

Brand Registry itself is free, but trademark filing and legal costs are separate expenses. For any business planning to build a long-term brand on Amazon, trademark protection and Brand Registry should be considered early.

7. Amazon Selling Fees

Amazon selling costs are not limited to one fee. Sellers must understand several layers of fees and expenses.

The main cost categories include:

Selling plan fee
Referral fee
Closing fee for certain media products
Fulfillment fee
Storage fee
Inbound shipping cost
Advertising cost
Coupon or promotional cost
Return and refund cost
Barcode cost
Trademark cost
Insurance cost
Product compliance cost
Packaging and labeling cost

A seller should calculate all of these costs before setting a retail price.

8. Referral Fees

Amazon charges a referral fee on each sale. This is one of the most important Amazon selling fees.

The referral fee is usually calculated as a percentage of the total sales price, including the item price and certain related charges. The percentage depends on the product category.

Many common categories have referral fees around 8% to 15%, but some categories may be higher or lower. Certain categories may also have minimum referral fees.

Examples of common referral fee ranges include:

Beauty and personal care: often around 8% to 15%, depending on price
Grocery and gourmet food: often around 8% to 15%, depending on price
Home and kitchen: commonly around 15%
Sports and outdoors: commonly around 15%
Pet supplies: commonly around 15%
Consumer electronics: commonly lower than many general categories
Jewelry and accessories: can be higher depending on price tier
Amazon device accessories: may have much higher referral fees

Because referral fees vary by category and may change over time, sellers should check Amazon’s current fee schedule before launching a product.

9. Fulfillment Options: FBM vs. FBA

Amazon sellers can fulfill orders in two main ways: Fulfilled by Merchant and Fulfillment by Amazon.

Fulfilled by Merchant

Fulfilled by Merchant, commonly called FBM, means the seller stores inventory, packs orders, ships products to customers, handles customer service, and manages returns.

FBM gives sellers more control over inventory and shipping. It can be a good option for large, heavy, customized, fragile, slow-moving, or low-margin products. However, the seller must manage delivery performance carefully.

Fulfillment by Amazon

Fulfillment by Amazon, commonly called FBA, means sellers send inventory to Amazon fulfillment centers. When customers place orders, Amazon handles storage, picking, packing, shipping, customer service, and returns.

FBA can help sellers qualify for Prime shipping and improve customer convenience. However, FBA also adds fulfillment fees, storage fees, inbound shipping costs, inventory placement fees, and possible long-term storage fees.

FBA is convenient, but it must be calculated carefully.

10. FBA Costs

FBA costs depend on product size, weight, category, shipping weight, storage volume, inventory age, and special handling requirements.

Common FBA-related costs include:

FBA Fulfillment Fee

This fee covers picking, packing, shipping, customer service, and returns processing. It is charged per unit sold and varies based on product size and weight.

Monthly Storage Fee

Amazon charges sellers for storing inventory in its fulfillment centers. Storage fees are based on the amount of space inventory uses.

Aged Inventory Fee

Inventory stored for an extended period may be subject to aged inventory fees. Sellers should avoid sending too much inventory to Amazon if the product has not yet proven its sales velocity.

Inbound Shipping Cost

Sellers are responsible for shipping inventory to Amazon fulfillment centers. This cost must be included in profit calculations.

Inventory Placement and Processing Fees

Depending on Amazon’s inventory placement options and fulfillment network requirements, additional inbound placement or processing fees may apply.

Removal or Disposal Fees

If inventory does not sell, the seller may need to remove or dispose of the products. Amazon may charge removal or disposal fees.

11. Advertising Costs

Most new products on Amazon need advertising to gain visibility. Simply uploading a product listing does not guarantee sales.

Amazon advertising commonly includes:

Sponsored Products
Sponsored Brands
Sponsored Display
Video ads
Brand Store traffic campaigns

Sponsored Products are commonly used by new sellers because they allow products to appear in search results and product pages. These ads usually work on a cost-per-click model, meaning the seller pays when a customer clicks the ad.

Advertising cost must be included in product pricing. A product may appear profitable before advertising, but become unprofitable after ad spend.

Important advertising metrics include:

CPC: Cost per click
CTR: Click-through rate
CVR: Conversion rate
ACOS: Advertising cost of sales
TACOS: Total advertising cost of sales

Sellers should track these numbers weekly, especially during the product launch period.

12. Coupons, Deals, and Promotions

Amazon offers promotional tools such as coupons, Prime Exclusive Discounts, Lightning Deals, and other deal programs.

These tools can improve visibility and conversion, but they also reduce profit margin.

Before using promotions, sellers should calculate:

Discount amount
Amazon coupon or deal fee
Referral fee after discount
Advertising cost
Profit after promotion
Expected increase in sales volume

Promotions are useful only when they support a clear business goal, such as launching a new product, clearing old inventory, improving ranking, or increasing repeat purchases.

13. Returns, Refunds, and Customer Service Costs

Returns are a normal part of Amazon selling. Sellers should estimate return costs before launching a product.

Return-related costs may include:

Customer refund
Return shipping cost
Product inspection
Repackaging
Disposal
Replacement product
Lost or damaged inventory
Negative review risk

Some categories have higher return rates than others. Apparel, shoes, electronics, beauty products, and fragile goods may require more careful return planning.

14. Product Compliance and Restricted Categories

Some products require approval before they can be sold on Amazon. Other products may be restricted or prohibited.

Restricted or regulated products may include:

Food and grocery products
Dietary supplements
Cosmetics
Medical devices
Children’s products
Electronics
Batteries
Toys
Pesticides
Hazardous materials
Automotive parts
Personal safety products

Depending on the product, sellers may need documents such as:

Safety test reports
Certificates of compliance
Ingredient lists
Product labels
FDA-related documentation
FCC documentation
Children’s Product Certificate
Hazmat documentation
Invoices from authorized suppliers

Sellers should confirm Amazon category requirements and applicable federal, state, and local regulations before listing products.

15. Commercial Liability Insurance

Amazon may require sellers to maintain commercial liability insurance after reaching certain sales thresholds or upon request.

For businesses selling physical products, product liability risk should be taken seriously. Even a small business can face claims related to product defects, injury, allergic reactions, electrical issues, contamination, choking hazards, or property damage.

Insurance is especially important for products such as:

Food
Supplements
Cosmetics
Children’s products
Electronics
Health-related products
Pet products
Fitness products
Tools and equipment

A seller should consult a qualified insurance broker to obtain appropriate coverage.

16. Additional Business Costs Sellers Should Consider

In addition to Amazon’s direct fees, sellers should consider outside business costs.

These may include:

Product manufacturing cost
Wholesale purchase cost
Packaging design
Product photography
Copywriting
Trademark filing
Barcode registration
Product testing
Product samples
Freight and shipping
Warehouse or 3PL fees
Accounting and bookkeeping
Sales tax compliance
Legal review
Product liability insurance
Returns management
Customer support
Software tools
Inventory financing

Many new sellers underestimate these costs. A product can sell well but still lose money if all expenses are not properly calculated.

17. Basic Profit Calculation Formula

Before launching a product, sellers should calculate expected profit using a complete formula.

A simple profit formula is:

Selling Price
minus Amazon Referral Fee
minus FBA Fulfillment Fee or Merchant Shipping Cost
minus FBA Storage Fee
minus Product Cost
minus Packaging Cost
minus Inbound Shipping Cost
minus Advertising Cost
minus Coupon or Promotion Cost
minus Return Allowance
minus Other Business Costs
equals Estimated Net Profit

For example, if a product sells for $25 and the referral fee is 15%, the referral fee alone would be $3.75. The seller must then subtract fulfillment cost, product cost, shipping cost, advertising cost, storage cost, and return allowance.

This is why Amazon selling should be approached as a margin-based business, not just a sales-volume business.

18. Recommended Launch Strategy for New Sellers

A smart Amazon launch should be structured and data-driven.

Step 1: Select a Product Carefully

Research demand, competition, pricing, reviews, category fees, and customer complaints.

Step 2: Calculate Total Landed Cost

Include product cost, packaging, freight, customs, storage, labeling, prep, and Amazon fees.

Step 3: Confirm Compliance

Check whether the product requires approval, testing, certificates, warnings, or special labeling.

Step 4: Prepare Professional Product Content

High-quality images, strong titles, clear bullet points, and accurate descriptions are essential.

Step 5: Start with Limited Inventory

Avoid sending too much inventory before proving demand. Start with a manageable quantity and test the market.

Step 6: Launch with Advertising

Use a controlled advertising budget to gather data. Track search terms, conversion rate, and ACOS.

Step 7: Monitor Reviews and Customer Feedback

Reviews, returns, and customer questions provide valuable information for improving the product and listing.

Step 8: Scale Only After Profit Is Proven

Do not scale inventory or advertising until the product shows a clear path to profitability.

19. Common Mistakes New Amazon Sellers Make

New sellers often make the following mistakes:

Choosing a product without calculating total costs
Ignoring referral fees and FBA costs
Sending too much inventory to Amazon too early
Using poor-quality product images
Copying competitor listings
Failing to check compliance requirements
Not budgeting for advertising
Underestimating return rates
Selling restricted products without approval
Using invalid barcodes
Not protecting the brand with a trademark
Pricing too low without understanding profit margin
Assuming high sales automatically mean high profit

Avoiding these mistakes can save a business significant time and money.

20. Final Conclusion

Registering as an Amazon seller is relatively simple, but building a profitable Amazon business requires planning, cost control, compliance, and disciplined execution.

The most important costs to understand are:

Selling plan fees
Referral fees
FBA or shipping fees
Storage fees
Advertising costs
Coupon and promotion costs
Returns and refund costs
Barcode and brand registration costs
Insurance and compliance costs

For most serious sellers, Amazon should be treated as a full business channel, not just an online listing platform. A successful seller must understand product sourcing, pricing, logistics, customer experience, advertising, compliance, and financial analysis.

Before launching any product, sellers should calculate profit carefully, confirm product eligibility, review Amazon’s current fee schedule, and test the market with a limited inventory strategy.

Amazon can be a powerful sales channel, but the sellers who succeed are usually the ones who understand their numbers before they start selling.