The net sales on Amazon reached $470 billion in 2021. These figures clearly indicate how Amazon has turned into a bustling online marketplace. Moreover, it shows that smiling A is also providing moneymaking opportunities to those who are not its employees, i.e. Amazon sellers.
If you want to make money by selling anything online, you can start your seller journey by setting up your Amazon account.
Creating an Amazon seller account is not that complex as long as you have all the required information at your disposal.
This post will guide you on how to set up a seller account on Amazon and what you need to know before signing up as a seller.
If you’re reading this, you must've decided to sell on Amazon and thus want to create a seller account. However, before selling on Amazon, it is paramount to consider a few things and ask yourself some questions.
Here, we will share with you three essential questions you may want to answer before setting your foot in the world of Amazon sellers.
If you want to sell on Amazon, you must know about all the business models that the platform offers. You should also know which one is suitable for you. Here’s a quick recap of different business models you can run on Amazon as a seller.
A private label seller gets white label products, puts their own name/brand on them, and then sells those private label items on Amazon marketplaces.
Example: Getting unbranded door stoppers, packaging them with your own branding, and then listing them on Amazon for sale.
Amazon wholesalers buy large batches of branded products and sell them at a margin under the same brand name.
Example: Getting a batch of Reebok runners and selling them at a margin on Amazon.
Retail arbitrage involves searching for items available at discounts and sales on roadside and e-commerce stores and then reselling them on Amazon at a profit.
Example: Getting a bunch of pairs of socks from a flash sale at Walmart and then selling them on Amazon at regular price.
An Amazon dropshipper is a liaison between customers and brands/manufacturers. Dropshippers list third-party branded products on Amazon and receive orders on behalf of those brands while keeping their own margins. The orders are fulfilled by brands/manufacturers themselves instead of dropshippers or Amazon.
Example: Listing items from P&G on Amazon and then selling them through P&G’s own fulfillment machinery.
Amazon Handmade program is for those who want to reach a larger audience with handicraft items.
Example: Listing handcrafted jewelry on Amazon and selling it to a broader consumer base.
Once you decide the business model you want to run on Amazon, also settle on the fulfillment method. You can operate like a regular e-commerce seller that fulfills their own order by choosing Fulfillment by Merchant (FBM). FBM is only feasible if you can store, pack, and deliver products directly to consumers.
Or else, you can opt for Fulfillment by Amazon (FBA), where you just need to dispatch your products to Amazon fulfillment centers. It’s then Amazon’s job to pack and ship your orders to customers.
Next, you have to determine the business structure you want to keep as an Amazon seller. You must also determine it beforehand because you need to tell about your business structure while creating an Amazon account.
In the US, you primarily have two options when choosing the business structure on Amazon: Sole proprietor and Limited Liability Company (LLC). When you declare yourself a sole proprietor, you avoid the procedures, documentation, and costs of setting up a formal business entity. However, a sole proprietor is responsible for all their business liabilities, i.e. you can be held liable in case of any legal action against your business.
On the other hand, if you want to set up your Amazon account as an LLC, you first need to register an LLC. The upside of operating as an LLC is your business and personal assets remain separate. Therefore, the repercussions of any legal action will only affect your business entity, not your personal assets and belongings.
You get the benefits of an LLC under different legal entities in other countries. For instance, you’ve got the option to register your seller account with Proprietary Limited (PTY LTD) instead of LLC in Australia. PTY LTD also serves the same function i.e. separate your personal assets from your business assets. Similarly, the LLC equivalent in India is a Limited Liability Partnership (LLP).
By following these steps, you can set up your Amazon seller account within a couple of minutes.
After providing the initial information and clicking on the Agree and continue button, you've to fill these five sections one after the other.
Note: Sole proprietors don’t have to provide Business information. Instead, their registration process will start with Seller information.
Let’s see how you can fill out those five sections to complete your seller registration on Amazon.
In the first section, you have to enter all the business information.
The next phase is seller information. Here you have to provide all the information of the “primary contact person” representing the business. In other words, you have to enter the seller's personal data in this section.
After providing the seller information and clicking the Next button, you will land on this page. Here, you have to provide your bank and credit card details.
After billing details, Amazon will ask you a couple of questions regarding your Amazon store and products.
Enter your store name and answer the following three questions. Then, click the Next button to complete personal identification.
In the last step, you have to verify the identification of the “primary contact person” of the Business with whom you’re setting up your Amazon account. Sole proprietors will have to verify their own ID.
Duly check all the information and files you upload before clicking the Submit button because this is the final and most crucial step of setting up an Amazon seller account.
From here on, start listing your products and begin your journey as an Amazon seller.
There are some frequently asked questions related to setting up an Amazon account. Let’s answer them before concluding this guide.
Amazon doesn’t charge sellers anything to set up an account. However, if you opt for the Professional seller plan, you will have to pay $39.99 per month.
No, you can’t complete the seller registration process on Amazon if you don’t have a valid credit card.
No, you don’t need a business license to sell on Amazon. However, in some jurisdictions, you may need one (depending on state and local laws). Similarly, Amazon wholesalers may require a business license to partner with brands/manufacturers.
After reading this guide, we hope you can set up your Amazon seller account without any hassle. If you have an active bank account and a valid credit card, you can create your seller account on Amazon and start your business right away.
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