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💼Business & Startups

Amazon Seller Setup: Marketplace Launch Guide

How to set up your seller account on a major online marketplace, covering account registration, product listings, fulfillment options, advertising, and performance metrics.

Last updated: February 19, 2026

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Account Registration

Decide between an Individual or Professional seller plan
Individual plans charge $0.99 per item sold and work for sellers moving under 40 items per month. Professional plans cost $39.99 per month with no per-item fee. If you sell more than 40 items monthly, the Professional plan saves money.
Gather required documents for registration
You need: government-issued photo ID, a bank account, a credit card for fees, a phone number for verification, and tax information (SSN for individuals, EIN for businesses). International sellers also need a valid passport.
Have your bank account and routing numbers ready
Prepare your tax identification number (SSN or EIN)
Complete the identity verification process
Verification includes a video call or document upload. This process takes 1-5 business days. Submit clear, high-quality photos of your documents. Rejected applications can be re-submitted, but delays add another 3-5 business days.
Set up your tax information and interview
Complete the tax interview within your seller account to provide your W-9 information. This is required before you can receive payments. If you fail to complete it within 60 days, your disbursements may be withheld.

Product Research and Sourcing

Research product demand and competition in your category
Look at the Best Sellers Rank (BSR) for products similar to yours. A BSR under 5,000 in a main category means strong demand. Check the number of reviews on top listings — products with under 100 reviews are easier to compete against than those with 1,000+.
Verify your product is allowed in the marketplace category
Some categories require pre-approval: grocery, jewelry, watches, and automotive parts among others. Restricted products include hazardous materials, recalled items, and certain supplements. Check the category requirements page before investing in inventory.
Calculate your profit margin including all marketplace fees
Referral fees range from 6-45% depending on category (most are 15%). Add fulfillment fees ($3-$6 per unit for standard-size items), storage fees ($0.87-$2.40 per cubic foot per month), and return costs. Many new sellers discover their margins are too thin after fees.
Source your initial inventory of at least 50-100 units
Start with a small order to test demand before committing to large quantities. Domestic suppliers ship in 3-7 days. Overseas manufacturers offer lower costs but require 30-60 day lead times plus 2-4 weeks for ocean shipping.

Product Listing Creation

Write a keyword-optimized product title
Titles can be up to 200 characters. Include your brand name, product type, key feature, size/quantity, and color. Place the highest-searched keyword at the beginning of the title. Avoid all caps and promotional language.
Write 5 benefit-driven bullet points
Each bullet should lead with a benefit, then support it with a feature. Limit each bullet to 200 characters or fewer. Include dimensions, materials, and compatibility information. Capitalize the first word of each bullet for scanability.
Create an A+ content product description
Professional plan sellers can use A+ Content (formerly Enhanced Brand Content) with images, comparison charts, and rich formatting. Listings with A+ Content see 5-10% higher conversion rates on average.
Upload 7-9 high-quality product images
The main image must be on a pure white background (RGB 255,255,255) and fill at least 85% of the frame. Include lifestyle images, infographics with dimensions, and close-up detail shots. Images must be at least 1000 x 1000 pixels for the zoom feature.
Prepare a white-background main image meeting all requirements
Create infographic images showing product features and dimensions
Add backend search keywords
You have 250 bytes for backend search terms that customers do not see. Include misspellings, alternate names, and Spanish translations of key terms. Do not repeat words from your title — they are already indexed. Separate terms with spaces, not commas.

Fulfillment Setup

Choose between FBA (marketplace-fulfilled) and self-fulfillment
Marketplace fulfillment costs more in fees ($3-$6+ per unit) but your products qualify for fast shipping badges, which increases conversions by 25-50%. Self-fulfillment gives you more control and lower fees but requires your own shipping infrastructure.
Prepare and ship your first inventory to the fulfillment center
Follow labeling requirements exactly: each unit needs an FNSKU barcode label. Non-compliant shipments are rejected and returned at your expense. Ship your first batch 2-3 weeks before you plan to launch to account for receiving time.
Print and apply FNSKU labels to every unit
Create a shipment plan in your seller account
Set competitive pricing using a repricer or manual analysis
Price within 5-10% of the Buy Box winner for your product category. If you are significantly higher, you will not win the Buy Box and will get very few sales. Factor in all fees before setting your price.
Set up inventory replenishment alerts
Running out of stock kills your search ranking and can take 2-4 weeks to recover. Set reorder alerts at 3-4 weeks of remaining inventory to account for manufacturing and shipping lead times.

Launch and Advertising

Launch a Sponsored Products campaign for your listings
Start with an automatic targeting campaign at $15-$25 per day for 2 weeks. This lets the algorithm find which keywords convert for your product. After collecting data, create manual campaigns targeting your top 10-20 converting keywords.
Set up a strategy to get your first 15-25 reviews
Enroll in the marketplace's early reviewer or vine programs if available. Follow up after delivery with a polite request for feedback. Products with 15+ reviews convert at 3-4x the rate of products with zero reviews.
Monitor your account health metrics daily for the first month
Keep your order defect rate under 1%, late shipment rate under 4%, and pre-fulfillment cancel rate under 2.5%. Falling below these thresholds can lead to account suspension. Check your dashboard daily during the first 30 days.
Track your advertising cost of sale (ACoS) and adjust bids
Target an ACoS of 15-30% for mature products. During launch, accept a higher ACoS (30-50%) to build sales velocity and ranking. Reduce bids on keywords with high spend and no conversions after 1,000+ impressions.
Respond to all customer messages within 24 hours
Response time is tracked and affects your seller metrics. Answer every question, even if the answer is already in your listing. Quick, helpful responses reduce negative reviews and returns. Set up mobile notifications to catch messages immediately.

Frequently Asked Questions

How much does it cost to start selling on Amazon?
An Individual seller account is free but charges $0.99 per item sold. A Professional account costs $39.99/month with no per-item fee — it becomes cheaper once you sell 40+ items per month. Both plans pay referral fees of 8-15% per sale depending on the category. If you use Fulfillment by Amazon (FBA), add $3.22-$6.75+ per unit for pick, pack, and shipping, plus $0.87-$2.40 per cubic foot per month for storage. Most new sellers need $2,000-$5,000 in startup capital for initial inventory.
Should I use FBA or fulfill orders myself?
FBA (Fulfillment by Amazon) is worth it for most sellers because products become Prime-eligible, which increases sales by 20-30%. FBA handles storage, packing, shipping, and returns. Self-fulfillment (FBM) makes sense for oversized or heavy items where FBA fees are prohibitive, slow-moving inventory where monthly storage fees add up, or products with razor-thin margins. Many sellers use a hybrid approach: FBA for their top sellers and FBM for the rest.
How long does it take to get approved as an Amazon seller?
Individual accounts are approved instantly. Professional accounts take 1-3 business days for basic approval, but Amazon may request identity verification (passport or driver's license photo, bank statement, utility bill) that adds 3-5 days. Selling in restricted categories (beauty, grocery, health, toys during Q4) requires separate approval called ungating, which can take 1-4 weeks and may require invoices from authorized distributors proving your product is legitimate.
What products should I avoid selling on Amazon as a new seller?
Avoid products dominated by Amazon's own brands (AmazonBasics, Amazon Essentials), categories with average selling prices under $15 (fees eat your margin), products requiring FDA approval or complex compliance (supplements, electronics), and categories with reviews averaging 4.5+ stars from competitors with 1,000+ reviews (too hard to compete). The best entry products are priced $20-$50, weigh under 2 pounds, and have competitors with imperfect reviews that reveal improvement opportunities.
How do I win the Buy Box on Amazon?
The Buy Box drives 83% of Amazon sales. Amazon awards it based on competitive pricing (within 2-5% of the lowest offer), FBA enrollment (FBA sellers win the Buy Box more often than FBM), seller metrics (Order Defect Rate under 1%, Late Shipment Rate under 4%, and a cancellation rate under 2.5%), and inventory availability. New sellers with FBA and competitive pricing typically start winning Buy Box share within 2-4 weeks of establishing positive seller metrics.