"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
- Register. Go to sell.amazon.com, choose Individual or Professional, and provide your business or personal details.
- 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.
- Choose your fulfillment method. Decide FBA or FBM for your first product; you can mix both across your catalog later.
- 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.
- 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.
- 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.
| Cost | What it is | How it's charged |
|---|---|---|
| Plan fee | Individual: $0.99 per item. Professional: $39.99/month flat. | Per sale or per month, no category variance |
| Referral fee | Amazon's cut of each sale | Typically 8% to 15% of item price for most categories |
| FBA fulfillment fee | Pick, pack, and ship (FBA only) | Per unit, based on size and weight tier |
| FBA storage fee | Warehouse 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.
Not sure your product's margin actually works after Amazon's fees?
Get a free, no-pitch teardown of your listing and fee math. FactoryJet has helped 500+ US brands sell profitably on Amazon, TikTok Shop, and their own stores, and the founder replies within 24 hours.
Get my free margin audit →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
- 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.
- 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.
- 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.
- 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.
Want this done for you?
Get a free, no-pitch plan for your site.
Tell us where to send it. Bhavesh, the founder, reviews every request himself and replies within 24 hours, often the same day. Most sites ship in about 7 days.
Frequently Asked Questions
How do I start selling on Amazon?
What is the difference between the Individual and Professional selling plan?
What is Amazon FBA and how is it different from FBM?
How much does it cost to sell on Amazon?
What is Amazon's referral fee?
What are Amazon FBA fulfillment fees?
Are there Amazon storage fees?
Can I sell on Amazon without holding inventory?
Can I drop ship on Amazon?
What is retail arbitrage, and is it still viable on Amazon in 2026?
What is wholesale selling on Amazon?
What is Amazon private label, and do I need a warehouse to do it?
What is Amazon Merch on Demand (print-on-demand)?
Do I need an LLC or business license to sell on Amazon?
What documents do I need to register as an Amazon seller?
How long does Amazon seller approval take?
What is Amazon Brand Registry, and do I need it?
What does it mean for a product to be "gated" on Amazon?
How do I get my first sales on Amazon as a new seller?
Do I need to run Amazon PPC ads to get sales?
How important are reviews when starting out on Amazon?
Is selling on Amazon still profitable in 2026?
Is Amazon or TikTok Shop better for a new seller?
How do Amazon seller payouts work?

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.
