FactoryJet
E-Commerce Development12 min readJul 16, 2026

How to Sell on Amazon in 2026: A Step-by-Step Guide for US Sellers

Bhavesh Barot - Author

Bhavesh Barot

Founder & CEO

Boxes ready for shipment in a fulfillment warehouse, set up to sell on Amazon

"Amazon is still where high-intent buyers search to purchase. Here is exactly how a US seller registers, chooses FBA or FBM, understands the real fee structure, sells without holding a warehouse of inventory, and gets the first sale."

Key Takeaways

  • 1You register through Amazon Seller Central with a US bank account, a government ID, and either an SSN (Individual plan) or an EIN and business details (Professional plan). Approval is usually same-day to a few business days.
  • 2The Individual plan costs $0.99 per item with no monthly fee, which fits under about 40 sales a month. The Professional plan costs a flat $39.99 a month with no per-item fee and adds ads, bulk tools, and top placement, which costs less than Individual past that volume.
  • 3FBA (Fulfillment by Amazon) means Amazon stores, picks, packs, ships, and handles returns for you, and your listing becomes Prime-eligible. FBM (Fulfillment by Merchant) means you ship it yourself and keep more of each sale, but you carry the labor.
  • 4Every sale carries a referral fee, typically 8% to 15% of the price depending on category, with a handful of categories running higher. FBA sellers also pay fulfillment and storage fees on top of that, which is why margin math has to happen before you list, not after.
  • 5You can sell on Amazon without owning a warehouse: retail arbitrage, wholesale, print-on-demand, and private label run through a 3PL or a supplier are all real, active paths. What Amazon does not allow is drop shipping from another retailer and having that retailer's packing slip show up in your customer's box.
  • 6New sellers get their first sales from a tight product listing, a small Sponsored Products PPC budget, and the first handful of honest reviews, in roughly that order.
  • 7Amazon still wins the buyers who are already searching to purchase. Treat it as one channel in a mix with your own store and, increasingly, TikTok Shop, rather than a single bet.

What this guide covers

  • Individual vs Professional selling plans, and which one you actually need
  • FBA vs FBM: who ships the order, and what each one costs
  • How to register and list your first product, step by step
  • Amazon's real fee structure: referral, fulfillment, and storage
  • How to sell on Amazon without a warehouse full of inventory
  • How to get your first sales as a brand-new seller
  • Common mistakes that sink new sellers
  • Where Amazon fits alongside TikTok Shop and your own store

To sell on Amazon, you register at sell.amazon.com as an Individual or Professional seller, verify your identity and bank account, list your first product with a fulfillment method of FBA or FBM, and price it against Amazon's referral and (if applicable) fulfillment fees. That is the mechanical loop. What actually decides whether it works is everything downstream of that: which products you choose, whether you understand your true margin before you list, and how you get your first reviews. This guide walks through all of it, with the real fee structure and the paths that let you start without owning a warehouse.

Individual vs Professional: which selling plan do you need?

Amazon offers two selling plans, and the choice is mostly a volume question. The Individual plan costs $0.99 per item sold and no monthly subscription, which suits someone testing a handful of products or selling occasionally. The Professional plan costs a flat $39.99 a month with no per-item charge, and it adds things the Individual plan does not have: Sponsored Products advertising, bulk listing and inventory tools, eligibility for the Buy Box, access to more restricted categories, and detailed sales reporting.

The break-even math is simple: $39.99 divided by $0.99 is roughly 40 units. Sell more than about 40 items a month and the Professional subscription costs less than the per-item fee you would otherwise pay on Individual, and that is before counting the ads and tools that come with it. If you are just validating whether a product sells at all, Individual is the lower-risk way to find out.

FBA vs FBM: who ships the order?

This is the second decision every new seller makes, and it shapes almost everything else about the business.

  • FBA (Fulfillment by Amazon). You ship inventory to Amazon's warehouses, and Amazon handles storage, picking, packing, shipping, customer service, and returns. Your listing gets the Prime badge, which meaningfully lifts conversion, and you are hands-off on logistics. You pay fulfillment and storage fees for the convenience.
  • FBM (Fulfillment by Merchant). You store the inventory yourself, ship each order as it comes in, and handle your own customer service and returns. You keep more margin per sale and control your own stock, but the labor is on you, and you generally lose the Prime badge unless you qualify for Seller Fulfilled Prime.

Most sellers who want to scale past a side hustle move to FBA specifically to buy back their time and win the Prime badge. FBM stays the right call for large, low-turnover, or highly custom items where the fulfillment fee would eat the margin.

How to register and list your first product

  1. Register. Go to sell.amazon.com, choose Individual or Professional, and provide your business or personal details.
  2. Verify. Submit a government ID, your bank account for payouts, a chargeable credit card, and a phone number. Approval is often same-day, though certain categories require extra review.
  3. Choose your fulfillment method. Decide FBA or FBM for your first product; you can mix both across your catalog later.
  4. Create the listing. Add clear photos, a benefit-driven title, bullet points that answer real buyer questions, and backend search terms. If FBA, create a shipping plan and send inventory to Amazon's fulfillment centers.
  5. Set your price. Run the product through Amazon's revenue calculator inside Seller Central to see referral and fulfillment fees before you commit, so your price actually leaves margin.
  6. Publish. The listing can go live the same day for most categories.

Amazon fees: what a seller actually pays

Amazon's fee structure has three layers, and none of them are a single flat number you can memorize once and forget. Run every product through Seller Central's revenue calculator before you list it.

CostWhat it isHow it's charged
Plan feeIndividual: $0.99 per item. Professional: $39.99/month flat.Per sale or per month, no category variance
Referral feeAmazon's cut of each saleTypically 8% to 15% of item price for most categories
FBA fulfillment feePick, pack, and ship (FBA only)Per unit, based on size and weight tier
FBA storage feeWarehouse space for your inventory (FBA only)Monthly, higher in Oct-Dec peak season

Two things trip up new sellers here. First, most categories land between 8% and 15%, but a handful (like Amazon Device Accessories) run higher, so check the current rate for your exact category before you set a price. Second, FBA fulfillment and storage fees are driven by the physical size and weight of the product, not its price, which is why a compact, lightweight item is almost always the more forgiving one to launch with.

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How to sell on Amazon without holding inventory

You do not need a warehouse to sell on Amazon, but you do need a real sourcing relationship. Four paths get you there.

Retail arbitrage. Buy discounted or clearance products from stores or other retailers, then resell them on Amazon at a markup. It is the lowest-cost way to learn Seller Central, but it does not scale, since you are limited by what you can physically find and margins thin out fast after fees.

Wholesale. Buy in bulk directly from a brand or authorized distributor at a discount, then fulfill through FBA. This needs more capital than arbitrage but gives you a repeatable supply line instead of a treasure hunt.

Private label. Put your own brand on a product made by a third-party manufacturer, and ship inventory straight from that manufacturer (or a 3PL) into an FBA warehouse. You never personally touch the stock. This is the path with the most upside, since you own a real brand instead of reselling someone else's.

Print-on-demand (Merch on Demand). Upload a design, and Amazon prints, ships, and handles service only after a sale happens. Zero inventory, zero upfront cost, and it fits design-driven products specifically, not a general catalog.

What Amazon does not allow is buying from another online retailer and having that retailer ship directly to your customer under its own branding. If a "no inventory" model you are considering depends on that, it violates Amazon's drop shipping policy and risks account suspension. The same instinct that makes a brand rent an audience through TikTok's affiliate program applies here: find a supplier relationship you can stand behind with your own name on the packing slip.

How to get your first sales

  1. Build a complete listing. Clear photos on a white background, a title that leads with the real benefit, bullet points answering the questions a buyer actually has, and backend keywords filled in. A thin listing does not rank, no matter how good the product is.
  2. Run a modest PPC budget. A brand-new listing has no organic ranking and no reviews, so Sponsored Products buys the visibility you have not earned yet. Keep it tight and targeted rather than broad.
  3. Chase your first reviews honestly. Ship fast, package well, and use Amazon's built-in Request a Review button. You cannot pay for reviews, but you can earn them quickly by simply not being slow or sloppy.
  4. Watch your Buy Box eligibility. If you are the only seller on a listing, this matters less; if you are competing on an existing ASIN, price and fulfillment speed decide who gets the sale.

Common mistakes to avoid

  • Pricing before checking fees. Referral, fulfillment, and storage fees can eat more margin than a new seller expects. Run the calculator first.
  • Choosing a bulky, heavy first product. FBA fees scale with size and weight, so a compact item is far more forgiving while you learn.
  • Assuming drop shipping is unrestricted. Amazon's rules are specific; violating them risks suspension, not just a warning.
  • Under-investing in the listing itself. Photos and copy are doing the selling. A rushed listing suppresses everything downstream, including ad performance.
  • Betting everything on one channel. Fees and policy shift over time. Keep other channels alive alongside Amazon.

Is selling on Amazon still worth it in 2026?

Yes, for sellers who treat the fee structure as a planning input instead of a surprise. Amazon remains the largest pool of shoppers who are already searching with intent to buy, which is a different, often more valuable kind of traffic than the impulse-driven discovery you get on social commerce. The sellers who struggle are usually the ones who picked a thin-margin, oversaturated product and never ran the numbers before listing. The sellers who do well pick a product with real margin room, understand FBA versus FBM for that specific item, and build the listing like it matters, because it does.

Where Amazon fits with TikTok Shop and your own store

The strongest sellers do not treat Amazon as their only channel. TikTok Shop is where you catch impulse and trend-driven buyers through short video and creator content, at a lower commission than Amazon. Amazon is where you capture the buyers who are already searching to purchase, backed by FBA's logistics and Prime trust. Your own store, on Shopify or a custom build, is where you keep the full margin, the customer relationship, and the data neither marketplace hands back.

Run together, they compound: a TikTok video creates demand, some of those buyers go searching and convert on Amazon, and your repeat customers eventually move to buying direct from your own store. Coordinating pricing, inventory, and messaging across all three, so they reinforce each other instead of competing against themselves, is exactly the kind of work our Amazon agency team handles for US brands every day.

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Frequently Asked Questions

How do I start selling on Amazon?
Go to sell.amazon.com and register as an Individual or Professional seller with a US bank account, a valid government ID, a phone number, and a chargeable credit card. Individual sellers verify with an SSN; Professional sellers add business details and typically an EIN. Once approved, you list your first product with photos, a title, a price, and a fulfillment method (FBA or FBM), and the listing can go live the same day.
What is the difference between the Individual and Professional selling plan?
Individual costs $0.99 per item sold and no monthly charge, which works if you expect to sell under roughly 40 units a month. Professional costs a flat $39.99 a month with no per-item fee, and it also adds Sponsored Products ads, bulk listing tools, eligibility for the Buy Box, and access to more categories. Most sellers who are serious about volume switch to Professional almost immediately, since $39.99 flat beats paying $0.99 on every one of 40-plus sales.
What is Amazon FBA and how is it different from FBM?
FBA (Fulfillment by Amazon) means you ship your inventory to Amazon warehouses and Amazon handles storage, picking, packing, shipping, customer service, and returns, and your listing gets the Prime badge. FBM (Fulfillment by Merchant) means you keep the inventory yourself and ship each order as it comes in. FBA costs fulfillment and storage fees but saves your time and wins more buy-box share; FBM keeps more margin per sale but puts the shipping workload on you.
How much does it cost to sell on Amazon?
There are three cost layers: the plan fee ($0.99 per item on Individual, or $39.99 a month flat on Professional), a referral fee of roughly 8% to 15% of the sale price depending on category, and, if you use FBA, fulfillment and storage fees based on the size and weight of your product. There is no single all-in number that applies to every seller, which is exactly why Amazon publishes a fee schedule and a revenue calculator inside Seller Central. Run your specific product through it before you commit to a price.
What is Amazon's referral fee?
The referral fee is the cut Amazon takes on every sale, charged as a percentage of the item price. Most categories, from home goods to electronics accessories, land between 8% and 15%, while a smaller set of categories run higher. It is set per category rather than one flat rate across the board, so check the current rate for your specific category inside Seller Central's fee schedule before you price a product, since it is the single biggest lever in your margin math.
What are Amazon FBA fulfillment fees?
FBA fulfillment fees are what Amazon charges to pick, pack, and ship an order, and they scale with the size and weight tier of your product, not its price. A small, light item costs far less to fulfill than a large or heavy one, which is why product dimensions belong in your profitability math from day one. Amazon's FBA revenue calculator will show the exact fee for your listing before you commit inventory to it.
Are there Amazon storage fees?
Yes. FBA charges monthly storage fees based on the space your inventory occupies in Amazon's warehouses, and rates rise during the October-to-December peak season. Amazon also charges long-term storage fees on inventory that sits for many months without selling, which is Amazon's way of discouraging dead stock. This is the main reason experienced FBA sellers forecast demand carefully rather than shipping in a year of inventory at once.
Can I sell on Amazon without holding inventory?
Yes, in several proven ways: retail arbitrage (buying discounted products elsewhere to resell), wholesale (buying in bulk from an approved distributor and using FBA to fulfill), print-on-demand through Amazon Merch, and private label where a manufacturer or 3PL holds and ships stock on your behalf so you never touch it personally. What none of these skip is capital or supplier relationships; "no inventory" means you are not the one storing boxes, not that the business is free to run.
Can I drop ship on Amazon?
Only under Amazon's specific rules, and most drop shipping setups people picture do not qualify. You can fulfill orders through a supplier, but you must be the seller of record, your own name has to appear on all packing slips and invoices, and you cannot buy from another online retailer and have it ship directly to the customer with that retailer's branding. Sellers who violate this get suspended, so if drop shipping is your plan, confirm your supplier relationship against Amazon's policy before you list a single item.
What is retail arbitrage, and is it still viable on Amazon in 2026?
Retail arbitrage means buying discounted or clearance products from stores or other online retailers and reselling them on Amazon at a markup. It is still viable as a way to learn the platform with low upfront risk, but it does not scale well: you are limited by what you can physically source, margins are thin after fees, and popular products get gated behind approval requirements. Most sellers use it to learn Seller Central, then graduate to wholesale or private label.
What is wholesale selling on Amazon?
Wholesale means buying inventory in bulk directly from a brand or an authorized distributor at a discount, then reselling it on Amazon, usually through FBA. It requires more capital upfront than retail arbitrage but produces steadier margins and supply, since you have a real supplier relationship instead of chasing clearance racks. Many wholesale sellers also need to request approval ("ungating") to list certain brands or categories.
What is Amazon private label, and do I need a warehouse to do it?
Private label means putting your own brand on a product, usually manufactured by a third party, and selling it as your own listing rather than reselling someone else's brand. You do not need your own warehouse: most private label sellers ship inventory straight from the manufacturer to an Amazon FBA warehouse, or use a third-party logistics (3PL) provider. It carries more upfront cost (tooling, minimum order quantities) but builds a defensible, resellable brand instead of a thin-margin reseller listing.
What is Amazon Merch on Demand (print-on-demand)?
Merch on Demand is Amazon's built-in print-on-demand program: you upload a design for t-shirts, hoodies, and similar products, and Amazon prints, ships, and handles customer service only after a sale happens. There is no inventory and no upfront cost, which makes it the lowest-friction way to start selling on Amazon, though royalties per unit are modest and it only fits design-driven products, not a general product line.
Do I need an LLC or business license to sell on Amazon?
No. You can register as an Individual seller using your Social Security number and sell as a sole proprietor without forming a company. That said, most sellers who plan to scale form an LLC fairly early because it separates personal and business liability, simplifies sales-tax registration, and looks more credible to wholesale suppliers and brand partners. It is a business decision, not an Amazon requirement.
What documents do I need to register as an Amazon seller?
A valid government-issued ID, a US bank account that can receive payouts, a chargeable credit card, a phone number, and tax information (an SSN for an Individual or sole proprietor, an EIN for most registered businesses). If you are shipping FBA inventory, you will also eventually need a shipping plan and, for many categories, UPC or GTIN barcodes for your products.
How long does Amazon seller approval take?
Basic account approval is often instant to same-day once your identity and bank details verify. Certain categories (grocery, jewelry, and a handful of others) require additional approval, sometimes called "ungating," which can take anywhere from a day to a couple of weeks depending on the documentation Amazon requests, such as invoices proving you can legitimately source the product.
What is Amazon Brand Registry, and do I need it?
Brand Registry is Amazon's program for sellers who own a registered trademark on their product brand. It adds enhanced listing content (A+ Content), better counterfeit protection, access to Amazon's brand analytics, and eligibility for certain ad formats. It is not required to sell on Amazon, but if you are building a private label brand rather than reselling, it is worth pursuing once your trademark is filed, since the protection and tools it gives you compound over time.
What does it mean for a product to be "gated" on Amazon?
A gated product or category requires Amazon's approval before you can list it, usually because it is a restricted category (like supplements, certain electronics, or grocery) or a specific brand that limits who can sell it. To get "ungated," you typically submit invoices from an approved supplier proving you source the product legitimately. It exists to cut down on counterfeit and low-quality listings, and it is one of the first walls new sellers hit when they try to sell a popular brand-name product.
How do I get my first sales on Amazon as a new seller?
Start with a genuinely complete listing: clear photos on a white background, a benefit-driven title within Amazon's character limits, bullet points that answer real buyer questions, and accurate backend keywords. Run a modest Sponsored Products campaign so the listing gets initial visibility while it has no sales history to rank on organically. Then focus hard on shipping fast and following up so your first reviews land quickly, since review count and rating are the strongest trust signal on the platform.
Do I need to run Amazon PPC ads to get sales?
Not strictly, but it is the fastest way to get a brand-new listing in front of buyers while it has zero organic ranking or reviews. A small, tightly targeted Sponsored Products budget in the first weeks buys visibility your listing has not earned yet on search relevance alone. Once you have sales velocity and reviews, organic ranking starts carrying more of the weight and you can taper spend toward your best-performing keywords.
How important are reviews when starting out on Amazon?
Very. Amazon buyers compare review count and star rating before almost anything else, and Amazon's own ranking algorithm favors listings with sales velocity and review trust. You cannot pay for reviews or incentivize them, but you can earn them fast by shipping quickly, packaging well, and using Amazon's built-in "Request a Review" button. A handful of honest five-star reviews in your first month does more for conversion than almost any other single lever.
Is selling on Amazon still profitable in 2026?
Yes, for sellers who do the margin math before they list, not after. Fees have risen steadily over the years and competition is real in commodity categories, so a wide-margin private label product in a less crowded niche performs very differently than a thin-margin resale item in a saturated category. Amazon still delivers the largest pool of buyers who are actively searching to purchase, which is what keeps profitable sellers coming back even as fees climb.
Is Amazon or TikTok Shop better for a new seller?
They serve different buyer intent. Amazon wins high-intent shoppers who are already searching to buy and gives you FBA logistics; TikTok Shop wins impulse and trend-driven buyers through short video and typically charges a lower commission. Sellers who do best usually run both: TikTok Shop content creates demand and discovery, and Amazon captures the buyers who then go searching with purchase intent. Our guide to selling on TikTok Shop covers the setup steps on that side.
How do Amazon seller payouts work?
Amazon collects payment from the buyer at checkout, holds it, and disburses your net proceeds (sale price minus fees) to your linked bank account on a rolling schedule, commonly every two weeks for newer accounts, though this can shift based on your account history and standing. You can track pending and completed payouts inside Seller Central at any time, and the platform withholds funds temporarily if there is an open return or A-to-z Guarantee claim on an order.
Bhavesh Barot - Founder & CEO
Written by

Bhavesh Barot

Founder & CEO

Founder & CEO of FactoryJet, a web design and e-commerce agency serving 500+ US, UK, and UAE businesses. Expert in small business website strategy, Shopify development, and Core Web Vitals optimization.

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