Ready to learn how to set up an Amazon seller account? We've got you covered with the steps you should follow along with extra information to get you started.
Selling on Amazon can be a very lucrative experience if you know how to use this behemoth of an e-commerce platform to your advantage. We've covered how to sell on Amazon in great detail, and you can check out our article before we dive into the good stuff.
Let's now dive into the steps to follow to create an Amazon seller account with ease.
Guide to Setting Up An Amazon Seller Account
Step 1: Go to sellercentral.amazon.com
This is the site on which you're going to create your Amazon seller account.
Before we get started, kindly note that there are two types of accounts when it comes to selling on Amazon. The first one is the Individual Seller account, and the other is the Professional Seller account.
You'll need to choose between the two.
Step 2: Choose A Seller Account
Let's look at these two Amazon accounts in brief detail.
a). Individual Seller Account
The Individual seller account is a great choice if you intend to sell less than 40 units a month. You won't have to pay any monthly fee with this account. However, you'll pay a per-item fee of $0.99 whenever you sell an item.
With this Amazon account, you'll have access to some order management tools and a basic listing.
On the other hand, consider a professional seller account if you want to sell more than 40 units a month.
b). Professional Seller Account
With a professional seller account, you'll need to pay a monthly subscription fee of $39.99 and some other selling fees. This Amazon account is a good fit if you want to sell more than 40 units monthly.
This account's advantage over the individual seller account is that you'll get access to advanced Amazon selling tools. Therefore, consider this Amazon account if you intend to earn a regular monthly income from your Amazon business and invest well into it.
Note that you'll need to pay this monthly subscription fee whether you make any sales or not. Another thing to remember is that you'll still need to pay a referral fee for items you sell. This also applies if you sell books on Amazon.
This type of account is great if you want to create and run a medium to large Amazon business. You will have more tools to use, and you won't have to pay a $0.99 charge per sale of an item.
Now that you have an idea of these two accounts for Amazon sellers, let's look at the steps to create your chosen account.
Once you get to the Amazon Seller Central site, you'll have two options.
If you want to create a professional seller account, click the Sign-up button.
On the other hand, click the Learn more button if you want to create an individual seller account.
Image Source: sellercentral.amazon.com
Once you click the learn more button, you'll be directed to another page. Scroll down till you see the words, Sign up to become an individual seller. Click on them and you'll be directed to a page where you input your details. It will look something like this.
Image Source: sellercentral.amazon.com
If you want to compare these two plans side by side, click on learn more and then click on Pricing found on the navigation bar and choose the Compare selling plans option.
You'll find the selling plans once you scroll down slightly.
Image Source: sellercentral.amazon.com
Once you've chosen the plan you want, click the respective button and continue with the registration process.
Step 3: Enter your Details
If you already have an existing account, put in your email address and password to log in. If you don't have an existing account, you can create a new one.
If you suspect at all that you have an old Amazon account that you've forgotten about, consider recovering it before you create a new one to avoid issues with Amazon.
Another tip is that if you are fortunate to have a business email, consider using that instead of a Gmail or Yahoo email, for example. This tells Amazon that you are serious about your business and it will increase your chances of being approved.
Step 4: Select your Business Location and Business Type
The business location is the country in which your business is located. Ensure that you select the correct country because you'll need to verify this down the line.
The business type is the type of business entity that your business falls under. You will need to choose between these five options:
- State-owned business
- Publicly-owned business
- Privately-owned business
- None, I am an individual
If you don't have a registered or formal business, the last option applies. However, note that if you opt to go with this option, you'll need to input your full name.
Once you fill in these details, click Agree and continue and move on.
Step 5: Provide Seller Information
Some of these details include your passport number or driver's license, address, and phone number.
Ensure that you input the correct address because Amazon may send a postcard with a verification number that you'll need to input before you use your account. The phone number will also be used for verification purposes.
Once you've input everything and you're sure all is in order, click Next and move on.
Step 6: Input your Billing Information
You'll need to provide information about your bank account along with a valid credit card.
Once you're done, click I Understand and continue to the next page.
You'll now need to verify your bank account details on the next page. Once you're done, provide your credit card details and then click next.
Ensure that you don't use a debit card or any pre-paid card in place of a credit card. Only use a valid credit card for this step. You can even provide an internationally chargeable credit card if you have one.
Step 7: Provide Store and Product Information
You'll be required to provide some information about your Amazon store before you start selling. Some of this information will include the Store name.
If you're not sure about what you want to call your store, don't worry too much about it as you can change it down the line. For this step of the Amazon seller central process, we recommend choosing a broad name that can accommodate the introduction of more products down the line.
Some of the other questions you'll come across on this seller central page include:
- Do you have Universal Product Codes (UPCs) for all your products?
- Do you have any diversity certifications?
- Are you the manufacturer or brand owner for any of the products you want to sell on Amazon?
Answer all these questions honestly. We recommend getting UPCs for your products before you begin the process. Nonetheless, you can always get them later.
If you click yes or the some of them option on the last question, you'll be asked another question: "Do you own a government-registered trademark for the branded products you want to sell on Amazon?"
If you have a private label business model or are starting your own passion product, then you'll click yes on the last question. In contrast, if you are doing retail arbitrage or wholesale with your Amazon business, then you'll click no.
Once you're done, click next and continue to the next seller central page.
Step 8: Verify your Identity
You'll need to upload an image of your passport, ID, or license, and a bank statement for this step. We advise you to upload a PDF version of your bank statement instead of taking a photo and uploading it.
Once you've uploaded everything, click Submit.
You may be asked down the line to confirm the business address you provided above. Once you verify your address, you should be good to go. Once you click the Next button, you should be good to go.
We've looked at how to create a seller central account and get started on selling on Amazon. Now, let's look at some other things you need to know to succeed on the Amazon platform.
What Are Some Amazon Fees to Keep in Mind?
We mentioned paying a referral fee as we were looking at the seller account types. Here's what Amazon referral fees mean and other fees you'll come across.
Arming yourself with this information can help you budget properly as you start your Amazon seller journey.
a). Amazon Referral Fees
You can think of the referral fee as a sort of commission that you pay whenever you sell an item. Whether you choose to use Amazon FBA or FBM, you'll still pay this referral fee.
The referral fee is often a minimum referral fee for the item or a percentage of the selling price, whichever is higher. The percentage is based on the category in which your product lands. You can check out the Amazon referral fee guidelines to know where you fall.
This fee is often deducted from your Amazon account once you've made a sale. Therefore, it would be wise to include it into your selling price as you are pricing your items.
Another thing to note is that this Amazon fee is not influenced by your product's size or weight.
b). Refund Administration Fees
If you make a sale and the customer doesn't like it, they will return it and ask for a refund. If you are using Amazon FBA, this return and refund process will be handled by Amazon. In return, you'll need to pay the refund administration fees.
This refund administration fee is either $5.00 or 20% of the refunded amount, whichever is lower. Just like the referral fee, this fee will be charged to your Amazon account.
c). Individual Per-Item or Subscription Fees
We covered these fees when we were looking at the two types of seller accounts above, but we thought they deserved a spot on this list.
If you choose to go with a professional seller account, you'll pay a monthly subscription fee of $39.99. If you decide to get an individual seller account, you'll pay a per-item fee of $0.99 per item sold.
This is important information to have to allow you to properly price your items. Both of these Amazon fees will be taken out of your Amazon account.
Now that we've briefly covered a few of the fees, let's look at the various business models you can choose to use as you sell on Amazon.
Types of Business Models when Selling on Amazon
- Private Label
The private label business model is when you take manufactured products and put your own label or branding on them.
You can think of this business model as retailer rebranding.
- Retail or Online Arbitrage
In this business model, you take discounted products in physical stores or e-commerce sites and then resell them on Amazon.
You'll end up making a profit because you'll be buying them at discounted prices. Ensure that you account for the various fees to avoid making losses.
With the wholesale business model, you buy goods in bulk at discounted prices and then sell them as individual units at a higher price per item than you bought them.
With drop shipping, you won't need to fulfill the orders yourself. Instead of storing, packing and shipping the products yourself or using Amazon FBA, you'll transfer the orders straight to the manufacturer.
This works if you don't want to handle the fulfillment of orders yourself, you don't want to use Amazon FBA, and you have a good understanding with the manufacturer.
- Amazon Handmade
If you are an artisan and love to create and sell your own art, consider joining the Amazon Handmade community. Examples of handmade products include accessories, jewelry, and more.
After going into the Amazon Seller Central site, follow the steps until the end. Remember to choose the type of seller central account you want to use. For example, if you want a professional seller account, click the Sign-up button straightaway.
On the other hand, if you want the individual seller account, go to learn more and follow the steps we've outlined above. You'll be able to start selling on Amazon as soon as you're done with the process.