How to Open a Store on Amazon and Start Selling in 2026

Complete step-by-step guide to opening an Amazon seller account, setting up FBA, and launching your first products.

Table of contents

How to open a store on Amazon and start selling guide showing seller plan comparison, FBA setup, and fee breakdown

Opening an Amazon store and selling your first product is a process that takes most new sellers between 2 and 6 weeks from account creation to first sale. This guide walks through every step — from choosing a selling plan to shipping your inventory — so you can start selling on Amazon with a clear plan and avoid the mistakes that stall most beginners.

Key Takeaways

  • Amazon's marketplace generated $830 billion in GMV in 2025, with third-party sellers responsible for 69% of total sales — the opportunity for independent sellers has never been larger.
  • The Professional selling plan costs $39.99 per month and removes the $0.99 per-item fee, making it the better choice for anyone planning to sell more than 40 units per month.
  • 75,000 independent sellers surpassed $1 million in sales on Amazon in 2025, a record high that demonstrates the platform's earning potential for committed sellers.
  • FBA (Fulfillment by Amazon) products automatically qualify for Prime, giving sellers access to over 200 million Prime members and significantly higher conversion rates.
  • Enrolling in Amazon Brand Registry unlocks A+ Content, Sponsored Brands ads, and brand protection tools — but requires an active or pending trademark registration.

More than 60% of sales in the Amazon store come from independent sellers, according to Amazon's 2025 Small Business Empowerment Report. Whether you are launching a private label brand, reselling wholesale products, or testing a side hustle, understanding how to open an Amazon store the right way will help you avoid costly mistakes and start selling faster. At Web Tonic, we help e-commerce businesses build their online presence from the ground up — this guide reflects the exact process we recommend to our growth marketing clients entering the Amazon marketplace.

Step 1 — Choose Your Amazon Selling Plan

Amazon offers two selling plans, and the one you choose affects your fees, access to features, and how quickly you can scale your business. Understanding the difference before you create your account will save you money from day one.

FeatureIndividual PlanProfessional Plan
Monthly Fee$0 (no subscription)$39.99/month
Per-Item Fee$0.99 per unit sold$0 per unit sold
Break-Even PointBest for fewer than 40 units/monthBest for 40+ units/month
Buy Box EligibilityNoYes
Advertising AccessNoYes (Sponsored Products, Brands, Display)
Brand RegistryNoYes
API AccessNoYes
Promotions & CouponsNoYes

The Professional selling account costs $39.99 per month and is the right choice for almost everyone who is serious about building an Amazon business. Without it, you cannot run ads, access the Buy Box, or enroll in Brand Registry — three features that directly impact your sales volume and visibility. According to Amazon's 2026 seller guide, the math is straightforward: if you plan to sell more than 40 units per month, the Professional plan saves you money compared to the Individual plan's $0.99 per-item fee.

Step 2 — Register Your Amazon Seller Account

Creating your seller account requires a few documents and about 15 to 30 minutes of setup time. Go to sell.amazon.com and click "Sign up." Amazon will ask for the following information during registration:

  • Government-issued ID (passport or driver's license for identity verification)
  • Bank account details where Amazon will deposit your sales revenue (settlements typically happen every two weeks)
  • Credit card on file for account charges (monthly subscription, advertising spend)
  • Tax information (Social Security Number or EIN for U.S. sellers; W-9 form)
  • Phone number for two-step verification

After submitting your information, Amazon's verification process can take anywhere from 24 hours to several days. During this period, you may be asked to provide additional documents. Do not list any products until your account status shows "Active" in Seller Central — your dashboard for managing every aspect of your Amazon business.

Line chart comparing Amazon Individual versus Professional selling plan costs at different monthly unit volumes showing the break-even point at 40 units
Miniature shopping cart representing online ecommerce and the opportunity of selling products through Amazon marketplace

Step 3 — Set Up Your Amazon Store and Listings

Once your account is active, you need to configure Seller Central and create your product listings. Your store setup and the quality of your product descriptions will directly impact whether customers find and buy your products.

Configure these settings in Seller Central before listing any products:

  • Payment information: Verify your bank account to ensure you get paid on schedule
  • Public seller profile: Add your business name, logo, and a compelling store description
  • Shipping and returns settings: Define your shipping options, delivery times, and return policies
  • Tax settings: Configure sales tax collection for applicable states

For product listings, you can either match existing products already in Amazon's catalog or create entirely new listings. New product listings require a UPC/EAN barcode (or a GTIN exemption), a compelling product title, bullet points highlighting key features, a detailed product description, and high-quality images. According to Seller Labs, optimized product descriptions with keyword-rich titles can increase visibility by 25–50% in Amazon search results.

Step 4 — Understand Amazon Seller Fees

Amazon's fee structure has multiple layers, and understanding them before you start selling will help you price your products correctly and protect your profit margins. In 2026, FBA fees increased by an average of $0.08 per unit sold — less than 0.5% of an average item's selling price — according to Amazon Selling Partners.

Fee TypeAmountWhen It Applies
Referral Fee6%–45% (most categories 8%–15%)Every sale, calculated on total price
FBA Fulfillment Fee$3.22–$6.90+ (standard-size)Per unit shipped via FBA
FBA Storage Fee$0.78–$2.40 per cubic foot/monthMonthly, based on inventory volume
Long-Term Storage Fee$6.90 per cubic foot or $0.15/unitInventory stored 271–365+ days
Closing Fee (Media)$1.80 per itemBooks, DVDs, music, video games only
Advertising (PPC)Varies by category (avg CPC $0.50–$2.50)Pay-per-click, optional but recommended

The referral fee is the one non-negotiable cost. Amazon charges it on every sale, and it varies by product category. Electronics typically pay 8%, clothing pays 17%, and most other categories fall between 8% and 15%. According to SellerView, new sellers should plan for total Amazon fees to consume 30–40% of revenue when using FBA, which makes product sourcing and pricing strategy critical to maintaining healthy margins.

Pie chart showing the typical Amazon FBA revenue breakdown including referral fees, fulfillment costs, storage fees, and advertising as percentages of seller revenue

Step 5 — Choose Your Fulfillment Method: FBA vs. FBM

Your fulfillment strategy determines how your products get to customers, and it has a direct impact on your visibility, conversion rates, and operational workload. Amazon offers two primary fulfillment options: Fulfillment by Amazon (FBA) and Fulfilled by Merchant (FBM).

With FBA, you ship your inventory to Amazon's fulfillment centers and Amazon handles storage, packing, shipping, and customer service. FBA products automatically qualify for Amazon Prime, which gives you access to over 200 million Prime members globally and significantly higher conversion rates. The trade-off is that FBA fees — particularly storage costs for slow-moving inventory — can eat into margins if your inventory management is not tight.

With FBM, you handle all logistics yourself. This gives you more control over packaging, shipping options, and inventory management, but your listings will not display the Prime badge unless you qualify for Seller Fulfilled Prime (a separate, rigorous program). FBM is typically the better choice for oversized items, fragile products, or sellers who already have their own fulfillment infrastructure.

For most new sellers entering the Amazon marketplace, FBA is the recommended starting point. The Prime badge alone can increase conversion rates by 25–50%, and the operational simplicity allows you to focus on product sourcing, content optimization, and advertising rather than logistics.

Step 6 — Enroll in Amazon Brand Registry

If you are selling your own branded products, enrolling in Amazon Brand Registry unlocks a suite of tools that will help you build your brand, protect your intellectual property, and increase sales. Brand Registry is free, but it requires an active registered trademark or a pending trademark application filed through Amazon IP Accelerator.

Benefits of Brand Registry include:

  • A+ Content (Enhanced Brand Content): Adds rich media modules — comparison charts, video, brand story sections — to your product descriptions, which Amazon reports can increase sales by 3–10%
  • Sponsored Brands Ads: Run headline ads that showcase your brand logo, custom headline, and multiple products at the top of search results
  • Brand Analytics: Access search query data, demographics, and market basket analysis to inform your product and advertising strategy
  • Automated brand protection: Proactive detection and removal of counterfeit listings and unauthorized sellers

If you do not yet have a trademark, Amazon IP Accelerator can connect you with vetted IP law firms at competitive rates and give you early access to Brand Registry benefits while your application is pending.

Step 7 — Launch and Promote Your Products

Listing your products is only the beginning. To start generating consistent sales on Amazon, you need a launch strategy that combines advertising, content optimization, and customer engagement.

Amazon Advertising (PPC) is the primary tool for driving initial traffic. Start with Sponsored Products campaigns targeting your most relevant keywords. The average cost per click (CPC) on Amazon ranges from $0.50 to $2.50 depending on your product category and competition level. Begin with automatic targeting to discover which search terms convert, then shift to manual campaigns to optimize your ad spend.

Beyond paid ads, these strategies will help attract customers and build momentum for your Amazon store:

  • Optimize product images: Use all 7 image slots with high-resolution photos showing the product from multiple angles, lifestyle shots, and infographics highlighting key features
  • Leverage social media: Drive external traffic from Instagram, Facebook, and TikTok to your Amazon listings using Amazon Attribution links to track performance
  • Encourage reviews: Use Amazon's "Request a Review" button and follow-up email sequences to build social proof — products with 50+ reviews see significantly higher conversion rates
  • Monitor your competition: Track competitor pricing, listings, and advertising strategies to identify opportunities

At Web Tonic, we manage data intelligence strategies for e-commerce brands that sell on Amazon, helping them optimize their ad spend and improve their organic ranking through product listing optimization and strategic content.

Common Mistakes New Amazon Sellers Make

Even with a solid plan, new sellers frequently stumble on avoidable issues. Here are the most costly mistakes we see during our research and client work:

  • Skipping product research: Selling products in oversaturated categories without differentiating your offer leads to price wars you cannot win. Use tools like Jungle Scout or Helium 10 to validate demand and competition levels before sourcing inventory.
  • Underestimating total fees: New sellers often calculate margins based on the selling price minus product cost, forgetting referral fees, FBA fees, advertising costs, and returns. Amazon fees can consume 30–40% of revenue.
  • Poor inventory management: Running out of stock kills your organic ranking and wastes advertising spend. Overstocking incurs long-term storage fees. Use Amazon's inventory management tools and plan replenishment based on sales velocity data.
  • Ignoring listing optimization: Generic product titles, weak bullet points, and low-quality images lose sales to competitors who invest in content. Treat your product listing like a landing page — every element should sell.
  • Not registering your brand: Sellers who skip Brand Registry lose access to A+ Content, Sponsored Brands, and brand protection — leaving money on the table and their intellectual property exposed.

FAQ

How much does it cost to start selling on Amazon?

The minimum cost to start selling on Amazon is essentially free with the Individual plan ($0.99 per item sold) or $39.99 per month for the Professional selling plan. Beyond the plan fee, you will need budget for product sourcing, shipping to Amazon's fulfillment centers (if using FBA), and advertising. Most new sellers should plan for $500 to $3,000 in initial investment depending on their product category, inventory volume, and advertising strategy. Amazon settles seller accounts approximately every two weeks, so you will start receiving revenue relatively quickly after your first sales.

Is FBA or FBM better for new sellers?

FBA is better for most new sellers because it provides automatic Prime eligibility, which dramatically increases conversion rates and visibility. Amazon handles storage, packing, shipping, and customer service, which lets you focus on sourcing, listing optimization, and marketing. FBM makes more sense for oversized products, fragile items, or sellers who already have fulfillment infrastructure in place. Products shipped through FBA gain access to over 200 million Amazon Prime members and the trust signal that comes with the Prime badge.

Do I need a business license to sell on Amazon?

Amazon does not require a business license to open a seller account, but your local and state regulations may require one depending on your product type and location. You can register as an individual (sole proprietor) using your Social Security Number or as a business entity using an Employer Identification Number (EIN). We recommend consulting a tax professional or business attorney to ensure you comply with local requirements, especially regarding sales tax collection and reporting obligations.

What products sell best on Amazon?

The best-selling categories on Amazon include Home and Kitchen, Beauty and Personal Care, Clothing, Electronics, and Sports and Outdoors. However, picking a popular category alone does not guarantee success — you need to find a niche within that category where demand is strong but competition is manageable. Look for products with a Best Seller Rank (BSR) under 5,000 in their main category, at least 300 reviews on top competitors, and a price point between $15 and $70 (the sweet spot for impulse purchases with healthy margins after Amazon fees).

How long does it take to start making money on Amazon?

Most new sellers begin generating sales within 2 to 4 weeks of listing their first product, assuming the listing is optimized and they are running advertising. Consistent profitability typically takes 3 to 6 months, once you have refined your product selection, optimized your ad campaigns, and built up reviews. Amazon settles payments roughly every 14 days, so cash flow begins almost immediately after your first order ships.

Sources

Amazon — 2025 Small Business Empowerment Report
Amazon — How to Sell on Amazon in 2026
Amazon Seller Central — Sell on Amazon
Amazon Selling Partners — 2026 Fee Updates
SellerView — Amazon Seller Fees 2026
Seller Labs — Amazon FBA vs FBM in 2026
Amazon — Brand Registry Requirements
Marketplace Pulse — Amazon GMV Surpassed $800 Billion in 2025
Amazon — How to Start an Ecommerce Business

Visual representation of how to open a store on amazon and start selling strategies and best practices in modern marketing

Author

Founder & CEO

Reviewer

Lead Client Success Manager

Book your strategy call today!
Schedule a call
Schedule a call
Discover our services
Our services
Our services

Blog

You may also like