How to Sell Stuff on Amazon: A Beginner’s Guide to Starting Your E-Commerce Journey in 2024

Selling on Amazon is one of the best ways to start an e-commerce business. With millions of daily shoppers and tools to help sellers succeed, Amazon offers endless opportunities to grow. But for beginners, knowing where to start can feel overwhelming. That’s where this guide comes in.

In this post, you’ll learn how to sell stuff on Amazon step by step. We’ll discuss the most popular business models, how to find products to sell, how to create a seller account, and more. We’ve also included links to helpful resources and articles so you can learn more information about every step.

Let’s get started by discussing why Amazon is such a great platform for new sellers.

Why Sell on Amazon?

Learning how to sell stuff on Amazon is one of the best ways to start an online business. As the world’s largest online marketplace, Amazon generates over a billion dollars in sales every day. With such a massive customer base there is no easier way to get your product in front of millions of potential customers.

Consider these statistics:

• 56% of consumers start their product searches on Amazon, making it the most popular destination for online shopping.
• Amazon accounts for 37.5% of all e-commerce sales in the US, dominating the online retail market.
• 58% of Amazon sellers were profitable in their first year, showing it’s possible to start earning quickly.

Instead of creating a website and marketing from scratch, Amazon comes with a built-in audience. No matter what niche or product you decide to sell there is a market for it on Amazon.

Additionally, consumers trust Amazon. Customers know that when they make a purchase it will be delivered on time and if there is an issue they can easily return the item without a hassle. This naturally increases your conversion rates and sales numbers as customers have confidence in the platform.

On top of all of this Amazon’s marketplace is designed to help new sellers thrive. By following the right strategies, you can learn how to sell stuff on Amazon and reach a vast audience. Whether you’re leveraging its built-in trust, vast customer base, or streamlined fulfillment options, Amazon makes it easier than ever to scale and grow your e-commerce business.

How to Sell Stuff on Amazon: A Step-by-Step Overview

No matter what product or business model you choose there are 5 basic steps you will need to follow to sell a product on Amazon. In the following sections, we’ll break down each step starting with choosing a business model.

• Choose a Business Model: Decide whether you want to resell existing products or start your own brand
• Set Up Your Seller Account: Creating your seller account will allow you to start selling products and manage your Amazon business
• Find a Product to Sell: Source products from suppliers, distributors, or local retail stores. The products and suppliers you choose will depend on your business model.
• Select Your Fulfillment Method: Choose how to ship and manage your orders. Will you ship the product yourself or leave it up to Amazon?
• List Your Product on Amazon: Add your product details to Amazon so it is ready to sell. Set the price, descriptions, images, and more depending on your product.

Now that you know the five basic steps, it’s time to dive deeper. Each step plays a key role in building your Amazon business. Let’s start with choosing the right business model to set the foundation for your success.

1.Choosing the Right Amazon Business Model

Before we learn how to sell stuff on Amazon it’s important to decide on the business model that works for you. There are many ways sellers find success on Amazon from creating their own brand to reselling products from other retailers.

In this section, we’ll break down the three most common Amazon business models so you can find the one that works for you.

Retail and Online Arbitrage

Retail and online arbitrage are business models where sellers find discounted products in store and resell them for a profit on Amazon. The main difference is where you shop. Retail arbitrage means visiting local stores to hunt for deals in person. Online arbitrage, on the other hand, refers to searching for discounted products from online retailers and then listing them on Amazon.

This business model is a great entry point for new sellers because it requires minimal start-up costs compared to the other models. Unlike private label or wholesale sellers that must invest thousands in start-up inventory, retail arbitrage allows sellers to buy and sell as little, or as much as they want.

One of the drawbacks to this business model is the time commitment. Since you need to buy items from stores, you’ll spend a lot of time finding and listing new products. As your business grows, scaling can also be a challenge. Unlike wholesalers or private label sellers who order in bulk, you’re limited by what each store has in stock.

As of 2024 around 25% of Amazon sellers used retail arbitrage while around 20% used online arbitrage as their business model of choice.

Retail Arbitrage Pros:

• Very low start-up cost
• Quick to start
• Flexible

Retail Arbitrage Cons:

• Time-intensive
• Sourcing limits
• Difficult to scale

Wholesale

Amazon wholesale is a business model where sellers purchase products in bulk from manufacturers or distributors at a discount and resell them on Amazon. You can think of wholesale as a middle ground between retail arbitrage and private label.

Unlike retail arbitrage, wholesale lets you buy large quantities of products directly from suppliers, making it more consistent and scalable. Unlike private label selling, it doesn’t require you to create or develop your own brand. Instead, wholesalers sell products from well-known brands, saving time and effort while still earning a profit.

To get started with wholesale you will need a few things. Firstly the start-up costs are higher than retail arbitrage as you will need to purchase inventory in bulk. While there is no set amount we recommend a budget of at least $5000 to get started. Secondly, suppliers and distributors will want to know that you are a respectable business. This means having a website, LLC, and business license.

Overall wholesalers make up around a quarter of all Amazon sellers and act as a scalable business model without the extra work that goes into creating your own brand.

Wholesale Pros:

• Established demand from established brands
• Easier to scale than retail arbitrage
• More time efficient than retail arbitrage

Wholesale Cons:

• Direct competition on each listing
• More startup cost than retail arbitrage
• Lower margins than private label

Private Label

Private labeling is a popular business model where you create your own brand by sourcing products directly from manufacturers and customizing them with your unique branding and packaging.

Sellers often start by researching potential products, finding a manufacturer (often through platforms like Alibaba), and working with them to customize things like logos, colors, and packaging. Once the products are ready, they’re shipped to Amazon’s warehouses, where they can be sold and shipped through Amazon FBA.

The biggest benefit of private labeling is control over your brand. Unlike wholesale or arbitrage, you build your own listing, allowing you to create the title, images, bullet points, and description to appeal directly to your target audience.

Another major advantage is the absence of direct competitors on your listing. Unlike the other models, where multiple sellers share the same product page, private-label products are exclusive to your brand. This means you set the tone for your marketing, determine pricing strategies, and avoid fighting for the Buy Box.

Brands on Amazon also gain access to additional tools like a Brand Store, Amazon Sponsored Brand Ads, and counterfeit protection through Amazon’s Brand Registry.

However, launching a private label comes with challenges. It requires the most upfront costs for product development, manufacturing, and marketing, and there’s always a risk that the product may not sell as expected.

That being said Private Label sellers make up over 50% of all sellers on Amazon, making private labeling the most popular business model on the platform. If you have the start-up funds available the scalability and benefit of creating a long-term brand make private label an excellent business model.

Private Label Pros:

• Maximum scalability
• Higher profit margins
• Brand ownership

Private Label Cons:

• High start-up cost
• Longer time to market
• Higher risk of failure

2. Setting Up Your Amazon Seller Account

After you’ve decided on a business model it’s time to select your selling plan. Amazon has two plans to choose from the Individual selling plan and the Professional plan.

Individual Selling Plan

• Costs $0.99/sale
• Fewer product categories available
• Unable to use Amazon Advertising
• Ineligible to compete for the buy box (featured offer)

The Individual selling plan uses a pay-per-sale payment plan as opposed to the monthly cost of a professional plan. This makes it a decent choice for anyone planning to sell part-time or infrequently on the platform.

However, it’s important to remember the limitations of this plan. First of all, you are unable to win the buy box. This means that if you are selling the same product as other competitors it will be impossible for your product to be listed in the “Add to Cart” section. Even if you have the cheapest offer available customers will need to click the “Other sellers on Amazon” button to find your product.

Additionally, several product categories are off-limits to anyone with an Individual seller plan. These include watches, automotive, grocery, jewelry, and more. To sell products in any of these categories you will need a professional plan.

Professional Selling Plan

• Costs $39.99/month
• Access to Amazon Advertising
• Ability to compete for the featured offer (buy box)
• Ability to sell restricted products
• Access to promotions, sales, and brand tools

The second option is the Professional selling plan. This plan costs $39.99/month regardless of the number of products you sell. It also includes several features not included with the Individual plan. The two most important are the ability to win the buy box and access to Amazon Ads.

The buy box, also called the featured offer is the section on each product listing that shows the “Add to Cart” and “Buy Now” buttons. With a Professional plan, your products are eligible to show up in this section if you meet the requirements. This is very important as over 80% of all Amazon sales come through the Buy Box.

Amazon Advertising is Amazon’s ad platform that displays ads on Amazon and across the internet. If you currently have your own brand or plan to create one Amazon ads are a necessity. The professional plan gives sellers access to this platform while the individual plan does not

For serious sellers, we highly recommend the Professional seller plan. It provides access to additional categories, advertising tools, and the Buy Box, making it well worth the cost. Plus, with its pricing structure, the Professional plan becomes the more affordable choice if you’re making 40 or more sales per month.

Creating Your Account

Once you’ve decided on a seller plan you’ll need to register as an Amazon seller. This is where you will provide Amazon with your business and personal information along with your store name. Before you begin make sure you have a:

• Government ID
• Email address
• Internationally chargeable credit card
• Bank account and routing number
• Business license or registration
• Proof of address (like a credit or bank statement)
• Tax information

To get started visit Amazon’s Seller website and click the “Sign Up” button at the top of the page. From here select your selling plan and follow the instructions on the screen to fill out the required information.

When you’ve finished the sign-up process you’ll need to wait for Amazon to review and approve your account. Amazon’s website states that this takes around 2 business days. However, in our experience, it is not uncommon to take a week or longer before you are approved.

After you’ve created a seller account you will have access to Seller Central. Seller Central is the main dashboard for your Amazon business. From inside Seller Central, you can add new products, manage orders and returns, check inventory, monitor feedback, create deals, and more. To access Seller Central you can log in through the Seller Central website or download the app.

3. Choosing A Product to Sell on Amazon

One of the most common questions from new sellers is, “What should I sell?” The reality is there is no one right answer. Choosing what product to sell on Amazon comes down to many factors including your business model, market research, seller experience, and goals. In this section, we’ll discuss some things to look for and things to avoid when choosing a product for your Amazon business.

Finding Products for Retail and Online Arbitrage

In most cases, choosing products for retail arbitrage will depend on what products are available in-store, the sales velocity on Amazon, and the profit margin. Since you are limited by whats available the typical workflow for retail arbitrage sellers looks something like this:

• Travel to an outlet or retail store
• Choose a product with a discounted or sale price
• Scan it using tools like SellerAmp or the Amazon Seller App
• Analyze the Amazon sale price, monthly sales, FBA fees
• Based on the profit margin and sales velocity decide if it is worth buying and reselling the product

Online arbitrage has a similar workflow in that you’ll find products from online marketplaces and look up the sales data for the product on Amazon. Just make sure to double-check that both products share the same ASIN so you can be sure they are identical products.

Product Research for Amazon Wholesale Sellers

Wholesale product research comes down to finding profitable products that sell quickly. To do this you will want to use an Amazon product research tool to quickly filter through thousands of products based on the following criteria:

• Monthly Sales: A good rule of thumb is to target products with at least 300 sales per month or 10 sales per day. Choosing products with a low number of monthly sales can lead to additional long-term storage fees from Amazon
• Price Range: Try to choose products that sell for at least $15-20 to ensure a healthy profit on each sale.
• Number of Sellers: Avoid products with just 1 or 2 sellers as these are most likely private label products you won’t be allowed to sell. On the flip side avoid products with over 5 sellers as a high number of competitors can lead to price slashing and lower profit margins

For more information on the product research tools please see our guide on the 5 Best Amazon Product Research Tools.

A final tip for finding wholesale products is to avoid any product where Amazon is a direct competitor. It is no secret that Amazon does not play fair and it is not worth trying to compete with them directly. Most product research tools include the option to hide products with Amazon on the listing.

Product Research for Private Label Sellers

Finding products for private label is different from retail or online arbitrage. Instead of reselling existing items, you’ll look for opportunities to create your own brand. This means finding products with high demand but low competition with room for improvement.

Once again you’ll want to start your research with a product research tool. These tools will allow you to create filters and narrow down your list of product ideas. Some helpful filters are:

• Minimum Price: Avoid products that sell for less than $20. For private label, a big part of your marketing strategy will be Amazon PPC advertising. Selling products that sell for less than $20 will limit how much you can spend on advertising while still making a profit
• Review Scores: Try to target products that sell well but have a review score of 4.4 or less. This way you’ll find products with an existing customer base but room for improvement.
• Review Count: Setting a maximum review count in your product research tool let’s you avoid overly competitive niches where you’d be competing with large established brands
• Search Volume: Search volume is a good indicator of product demand. You’ll want to find products with a search volume of at least 6000/month to show that there is market demand for the product

Once you’ve found a list of products that fit your criteria you’ll need to take a deeper look at each one. While it is too much to cover in this article we do have a complete Amazon FBA Product Research Guide that covers every step of product research for a private label brand.

Amazon Gated Categories & Restricted Products

One thing to look out for when choosing products is gated or restricted categories. If you’re a brand-new seller some categories and brands will be unavailable to you. This is referred to as being “gated.”

Some common gated categories are:

• Grocery & Gourmet Food
• Beauty
• Pet Food
• Topicals
• Watches
• Health & Personal Care

To check if a product is gated click “Add Product” in Seller Central and then input a product ASIN. An ungated product will show up with the button “Sell this Product” while a restricted product will have an “Apply to Sell” button.

To sell restricted or gated products you will need to go through a process most sellers refer to as “ungating.” The process of getting ungated can change depending on the category or brand. In some cases just clicking the “Apply to Sell” button will get you ungated and in others, you will need to go through a process of submitting invoices and other documents to Amazon.

For more information on ungating please see our guide on How to Get Ungated on Amazon.

What to Avoid When Choosing Products to Sell on Amazon

No matter which Amazon business model you choose there are a few things you’ll want to avoid when choosing a product to sell.

• Avoid Seasonal Products: Avoid selling products that are only popular for short sections of the year. Things like holiday decorations or winter apparel are examples of products that only sell well for a few weeks or months at a time
• Avoid Heavy or Bulky Products: The heavier an item is the more expensive the FBA fees will be. Ideally, you’ll want to find small, lightweight products that are cheap to ship and store.
• Avoid Cheap Products: Cheap products often come along with razor-thin profit margins which make it more difficult to scale your business. For private labels we recommend products that sell for at least $20 and retail arbitrage we recommend a profit margin of at least $3 per unit.
• Avoid Overly Saturated Niches: High competition can hurt your sales and profits. For wholesale or retail arbitrage, it often means lower margins and fewer sales. For private label sellers, it makes standing out as a new brand much harder.

4. Choosing a Fulfillment Option: FBA vs. FBM

Once you’ve found a potential product your next step is deciding how to get it to the customer. For Amazon sellers, there are two options, FBA or FBM. The fulfillment method you choose depends on your business and the types of products you choose to sell.

In this section, we’ll briefly go over both methods so you can get a better idea of what works best for you.

FBA – Fulfilled By Amazon

With FBA, Amazon stores your products, handles customer orders, and manages shipping. They even take care of customer service and returns.

Here’s how it works: You ship your inventory to Amazon’s fulfillment centers. When a customer places an order, Amazon packs and ships the product for you. This service allows you to focus on growing your business instead of managing logistics.

One of the biggest benefits of FBA is access to Prime shipping, which helps increase sales. However, FBA does come with storage and fulfillment fees, so it’s important to account for those costs when setting your prices.

If you want to learn more about FBA and how it compares to other fulfillment options, check out our full article: Amazon FBA vs FBM: Which Fulfillment Option is Best for Your Business in 2024?

FBM – Fulfilled By Merchant

Fulfillment by Merchant (FBM) puts you in control of storing, packing, and shipping your products. With FBM, you manage every aspect of the order process, including customer service and returns.

Here’s how it works: When a customer places an order, you pack the product and ship it directly to them. You’re responsible for packaging, labeling, meeting shipping deadlines, and ensuring customer satisfaction.

FBM is often more cost-effective for sellers with large or heavy items, as you avoid Amazon’s FBA fees. It also works well for sellers who want to have complete control over their fulfillment process.

However, FBM has some drawbacks. Winning the Buy Box is harder for FBM sellers as Amazon prefers FBA sellers in most cases. This can lead to fewer sales compared to FBA. Additionally, longer shipping times with FBM can reduce your conversion rates, as customers often prefer the 1-2 day shipping times that come with FBA.

5. How to List Your Products on Amazon

Creating a listing is how you showcase your products on Amazon and make them available for customers to buy. Product listings on Amazon include things like images, a description, bullet points, and details like price and variations.

For retail arbitrage and wholesale sellers, listing products can be as simple as adding your inventory to an existing page. Since you’re selling products that already exist on Amazon you won’t have to create a listing and instead can focus on competing for the buy box.

Private label sellers, on the other hand, will need to create a brand-new listing from scratch, complete with eye-catching images and optimized descriptions.

Important Reminder: Before you try to list any product double-check that you are allowed to sell it. Search for the product in Seller Central and make sure it says “Add Product” and not “Apply to Sell” or “Unavailable.”If the product says “Apply to Sell” you can go through the ungating process to list the product. If it says “Unavailable” you are simply not able to sell the product at all.

Adding Products Already Listed on Amazon

If you are a retail arbitrage or wholesale seller there is a good chance your product is already listed on Amazon. This makes it very simple to add a new product. All you have to do is:

• Located the ASIN: Find the ASIN for the product you want to list on Amazon. On Amazon, the ASIN is located under the Product Information section of a product page.
• Click “Add Product” in Seller Central: After you click “Add Product” input the ASIN for your product
• Fill out the Product Info: Fill out all of the product information including the quantity you have available and the fulfillment method you’ve chosen.

Unlike private label sellers, listing products already sold on Amazon is straightforward. The main focus for arbitrage and wholesalers is competing for the Buy Box and implementing effective repricing strategies.

Creating a New Product Listing on Amazon

If you are a private label seller or you are adding a product not already listed on Amazon you will need to create the listing from scratch. This means creating a description, bullet points, and images, as well as uploading the product specifications.

The basic process for creating a new product listing is:

• Click “Add Product” in Seller Central: Instead of inputting an ASIN, click the tab “Blank form” and then click start
• Fill Out the Required Information: Starting with your product name and category begin filling out the information Amazon requires for listing a new product.
• Product Description: Step two will ask you to fill in all of the information that will show up on your product page. This includes your bullet points, description, and images.
• Product Specific Details: Next you will need to fill out information related to your product and category. These will be things like your product variations, colors, and materials along with the product dimensions
• Product Offer Information: Fill out information like price, sale price, fulfillment method, shipping dimensions, and the SKU
• Safety & Compliance: The final section will ask you to fill out any safety information related to your product. This can include country of origin, battery requirements, certifications, and dangerous goods documentation
• Click Submit: At this point, you are finished filling out your listing information. Keep in mind, that Amazon will review all of the information you submitted so if you are missing required documents such as a UPC barcode or certifications your listing will not go live.

Creating a new listing is a lot of work and a critical part of your Amazon business. Everything from your bullet points to images plays a huge role in whether you make a sale and where your product shows up in search results.

For more information on product listings please read our guide on Amazon Listing Optimization.

For an in-depth guide on Amazon product images please see our guide on Amazon Photography Requirements.

Scaling Your Amazon Business: What Comes Next

Congratulations! Listing your first product on Amazon is a huge accomplishment and a big step toward building your e-commerce business. Now that you’ve got a taste of selling on Amazon, it’s time to think about scaling and growing your business.

For retail arbitrage or wholesale sellers, growth might mean sourcing more products or investing in repricing software. Private label sellers might focus on launching new products or expanding their advertising budget. No matter your approach, scaling is about finding ways to increase your sales and grow your business.

In this section, we’ll explore some key strategies for scaling your Amazon business, so you can take it to the next level.

Scaling a Wholesale or Arbitrage Business

• Invest in a Repricer. For wholesale and arbitrage sellers the buy box is king. While several factors determine who wins the buy box, the key factor is price. A repricer is software that automatically updates your product prices so that you can win the buy box more often. For both arbitrage and wholesale sellers this is one of the most important business investments you can make.
• Hire a VA: Virtual assistants are a great way to lessen your workload to give you more time to expand your business. A great VA can help you source products, manage accounts, handle customer service, or file for reimbursements.
• Use a Prep Center: These services handle packaging, labeling, and shipping your products to Amazon. Instead of doing this work yourself, you can send your inventory directly to a prep center, where they’ll organize and prepare everything for Amazon’s warehouses. It’s a great way to save time so you can focus on growing your business.
• Source Additional Products: An obvious way to grow your business is to source more products. Look for profitable items in different niches or brands to diversify your inventory. By increasing your catalog, you increase your chances of reaching more customers and boosting your sales.

For more information on repricers please see our article on The 7 Best Amazon Repricers.

Scaling an Amazon Private Label Business

• Invest in Amazon Ads: Amazon’s advertising platform is a critical piece of brand success on Amazon. As your business grows consider boosting your ad budget. Used properly all three ad types, Sponsored Display, Sponsored Search, and Sponsored Brand ads can help grow your brand on Amazon.
• Optimize Your Listing: Look for ways to improve your existing product listings. Search for new keywords to add to your listing, hire influencers to create content for your listing, or find photographers or videographers to upgrade your images and video content. All of these things can help boost your conversion rate and overall sales
• Grow Your Social Media: Don’t limit your brand to Amazon. Focus on growing your social media presence to create brand awareness and alert customers of new products or sales. Email lists are another great way to build your brand off of Amazon
• Create a Brand Store: Amazon allows brands to create a “mini-website” within Amazon to showcase their brand. Create your own Brand Store and link to it from your social media accounts.
• Add New Products: Consider launching complementary or related products in your niche. This can boost your AOV (average order value) as well as expand your business

For an overview of Amazon Ads please see our article on What is Amazon PPC? – A Beginners Guide.

For a breakdown of the best keyword tools please see our list of The 7 Best Amazon Keyword Research Tools.

For more information on Amazon Brand Stores please see our guide: How to Create an Amazon Storefront.

Final Thoughts: How to Sell Stuff on Amazon Successfully

Selling on Amazon can seem overwhelming at first, but starting small and following the right steps makes it achievable. You’ve learned the basics of setting up your account, choosing a product, and listing it for sale. Each step brings you closer to building a profitable business.

Whether you’re flipping products through arbitrage, scaling a wholesale business, or building your private label brand, success takes time and effort. Focus on delivering value to your customers, learning from your mistakes, and improving with each sale.