How to Start an Amazon Business

Did you know that Jeff Bezos, founder, and CEO of Amazon, is the second richest man in the world?
This should tell you a lot about Amazon as an online marketplace. Millions of customers rely entirely on the platform to purchase their day-to-day needs.
With that said, selling products online can be a smart idea. Yet, figuring out how to sell on Amazon and get started can seem a little intimidating.
Don’t fret, though.
In this post, we’ll go over all the basics you need to know before starting your venture.

What Are the Different Selling Routes on Amazon?

There are many routes to start selling your products on Amazon.
Here are the top two:
Reselling (Dropshipping)
Dropshipping means that you don’t sell your own brand. Instead, you act as a middleman between the manufacturer/supplier and the consumer.
Your profit margin is the discount they get from the supplier for purchasing wholesale products. That’s after deducting amazon’s cut, of course.


  • Amazon takes care of everything, like shipping, returns, refunds, and even feedback
  • A good choice if you're on a budget since you pay for the product at a discount
  • You can easily shift your product range


  • Highly competitive market
  • You purchase a final product, so you don't have the chance to brand it better and increase sales
Own Your Brand (Private Labeling)
This route of selling on Amazon can be more profitable than being a wholesaler, but it’s more hard work for you.
This is because you don't buy a product from a brand supplier to resell it. Instead, you find a product that you think is worth selling and start from scratch.


  • It's your brand, so you can save money on the manufacturing (unlike purchasing the final product as a drop shipper)
  • You can afford to lower your prices than your competitors to improve sales
  • You're in control of how the product gets branded to customers
  • Extra benefits when you enroll in Amazon’s Brand Registry


  • Private labels require marketing and building
  • It takes time to start making a satisfactory profit
  • High competition

So, What’s Next? How Do You Create a Business Plan?

We've covered the two most common ways to sell products on Amazon. Let's take a look at some necessary steps next.
Creating a solid business plan increases your chances of success, from better profit margins to staying relevant in the market longer.
Working on your business plan means the following:

Pick the Right Product

Successful sellers on Amazon don’t just choose a product based on a hunch.
It's not the smartest move to choose a product just because it looks attractive or trendy. The seemingly successful sales are momentary and don't suggest sustainable profit.
Instead, look for products that are always in demand, like toys, baby products, phone accessories, or even books.
Stuff like these might seem boring. However, they can produce the highest revenues over time.
Ideally, you’ll want to sell something you love and know a lot about. It’ll keep you motivated and give you an edge.
Keep in mind that certain product categories, like food, are restricted on Amazon. You’ll need to get approved first before selling those.

Research Your Product’s Market

Once you've decided on a product, it's time to study the market.
Just like what you'd expect, you aren't the only seller who provides this kind of product. There are plenty of other competitors trying to get the same product sold, too.
The first and most important thing to do here is to make sure your product stands out. For instance, you might have a competitive price or quality worth more than the price.
Another efficient idea is to be in touch with as many consumers, suppliers, and marketers as possible. Get their feedback on how they feel about the product you choose.

Create a Financial Plan

Compiling all numbers to calculate your net profit is a sensitive step.
It doesn't only tell you whether you're choosing the right product, but it also decides the budget you need to get things started.
Start by writing down all your expenses and sort them according to fixed or variable expenses. Then compare the numbers to your budget and see whether the product is worth your investment.

Find Suppliers

Reaching the right supplier can make all the difference in your success as a retailer.
After all, not all suppliers provide the same quality, prices, and packaging. Don’t shy away from asking your suppliers for samples before you decide.
Once you pick a supplier or a manufacturer, it's time to place your first inventory order for your product. Refer back to your financial plan to figure out how large your starting order should be.

Sign Up With Amazon

Once you have your inventory down, create your seller profile, either an individual or a pro seller account.
If you feel like avoiding extra costs as you start your online business, the first option might work better for you. An individual seller account has a free monthly subscription, but it requires a fee per item sold.
On the other hand, a pro seller account doesn't charge you per sale. Instead, you pay a monthly subscription regardless of your sales.
However, it can help you with managing your inventory and orders. Plus, it makes you eligible for Amazon promotions.
Note that for both plans, Amazon also charges referral fees and special fees. You might also pay to fulfill orders if you choose the Fulfilled by Amazon (FBA) option.
You’ll also need personal identification and a valid banking account for either sign-up option.
All that’s left is creating your first listing. Just make sure you have a visually appealing product photo and a detailed description ready to go.


Some might say starting your own business on Amazon is complicated. It is a challenging feat, but it’s achievable.
There are so many success stories on online platforms. All they had to do was research and take their time planning for their online business.
By now, you know all the basics of how to sell on Amazon. Just give yourself enough time to pick the right product, find the right market, and make your own success story.