How to Create an Amazon Seller Account
Your Amazon seller account will allow you to list and sell products in the marketplace. It’s also the hub where you can adjust pricing, manage stock, set up promotions, and more.
Setting up an Amazon account might seem complicated, especially for new sellers. But the process is fairly easy to complete.
Below, we’ve prepared a step-by-step guide to tell you how to create an active seller account on Amazon.
Let’s dive right in.
Amazon Sellers Overview
JungleScout’s 2021 “The State of the Amazon Seller Report” states that 66% of consumers started their online shopping on Amazon last year. What’s more, 67% of users chose Amazon to buy their holiday gifts.
This trend is no surprise. Amazon has spent years building a loyal customer base. According to JungleScout:
Amazon gets around 2.7 million visits per month.The marketplace boasts more than 200 million customers worldwide. Almost 3,700 brands enroll in the marketplace every day.76% of brands find profitability on Amazon.
And make no mistake, this trend is on the rise. 2022 holds great opportunities for sellers on Amazon. But of course, it takes a lot of preparation to make it in Amazon’s marketplace.
Related content: Amazon Vendors vs Amazon Sellers
How to Sell on Amazon
An Amazon Seller account gives brands access to any tools they need to run an Amazon store. Here are some of the processes you’ll be able to do:
Upload and edit new product listings to sell. Adjust pricing rates, depending on sales trends or seasonal promotions. Manage and update inventory levels in the warehouse. Customer service tools, such as reviews, feedback, returns and refunds.
You can manage all these activities through Seller central. This will be your main dashboard to sell in the marketplace.
But we’re getting ahead of ourselves. Creating a seller account is the last step of the journey. First, you need to prepare your business for Amazon.
Let’s take a look at what you need to decide on:
Sole Proprietor vs LLC
Amazon allows each brand to sell as a Sole Proprietor, or as a Limited Liability Company (LLC). Both models have different account options. Plus, each comes with its own tax requisites.
Sole proprietorship allows sellers to operate as “individuals.” It’s easy to set up because there’s no paperwork involved. You won’t have to register the business or establish your income.
All profits generated by Sole Proprietors are considered “pass-through”. This means the business is taxed like regular income. However, Sole Proprietor stores are also deemed as the same entity as the owner.
In other words, you’ll share your stores, income, expenses and liabilities. So, you will be directly responsible for any debts or legal actions against your Amazon store.
LLC keeps your business as a separate entity. As its name states, it offers limited liability protection for your personal assets.
This is also the better option to reduce tax bills. For example, you can deduct your Amazon VA salary as a business expense.
You must decide which business structure you’ll use, so you can set up the correct account and fill out the correct tax forms.
Related content: Sole Proprietor vs LLC Amazon Sellers
Individual vs Professional Account
This choice depends on the size of your business. Individual accounts are best suited for sellers who offer less than 40 items. It doesn’t require a monthly fee, but you’ll give Amazon a $0.99 referral fee for each sale.
A professional account is the better choice for sellers with over 40 products.
It comes with a $39.99 monthly fee, but it features more perks than the individual account.
Let’s review Amazon’s comparison of each selling plan:
Account FeatureIndividualProfessional$39.99 monthly membership fee X$0.99 per-item selling fee XCreate new product pages in the Amazon catalog X XStock and order management (using feeds, reports and spreadsheets) X Use Amazon Marketplace Web Service to upload API Functions XAmazon-set Shipping rates XCreate promotions and gift options XPlacement in the “Featured Offer” section XAccess to the Amazon Business Seller program XUS sales and tax calculation XProvide access and permission rights to other users XClaim Amazon-approved certifications X
Source: Amazon Seller Central
Amazon Business Model
Your business model of choice will define how you supply products to sell on Amazon. There are 5 main Amazon models to consider:
Retail and Online Arbitrage. This model is used by 26% of Amazon sellers, according to JungleScout. It’s about finding discount products, and then reselling those offers on Amazon. You can search for such items at retail stores or at ecommerce sites.
Wholesale. Sellers buy items directly from the suppliers at low-cost. From here, they sell those products on Amazon. Wholesalers excel in creating a solid supplier base to keep the stock flowing. This is the go-to model for 26% of Amazon brands.
Dropshipping. Brands who drop-ship use third-parity allies to fulfill Amazon orders. You only need to worry about uploading listings and generating sales. Then, you let the supplier deliver the product. The model is used by 10% of sellers on Amazon.
Private Label. Think of rebranding stores like AmazonBasics. You take existent products and sell them with your own brand. It is the most popular selling model, with 59% of brands using this method in the marketplace.
FBA vs FBM
One key choice is whether you want to run a store using Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM).
FBA means that brands take care of sourcing and selling products. From then on, it’s Amazon that handles storage, shipping, delivery and customer service. It’s the go-to choice for most sellers, for the following reasons:
Benefit from Amazon’s delivery service, which most customers expect. FBA products feature automatic Prime eligibility. Better search ranks, since Amazon favors FBA items. Pack and deliver products across different websites.
FBM is oriented to seller independence. It’s the brand that takes charge of the complete selling process. That means taking care of sales, inventory, deliveries and service. It’s more work, but FBM also comes with interesting perks:
You don’t pay storage or fulfillment fees to Amazon. This translates to lower shipping costs. Take charge of quality control, and store products as you see fit to improve fulfillment. No worries about confusing your stock with a similar offer. Manage customer services to deliver a more personal touch. You’ll be in direct contact with customers. This puts you in place to create better shopping experiences. Enrollment in Seller-Fulfilled Prime to enjoy Amazon Prime benefits.
Related content: The Ultimate Amazon FBA Guide
Find Great Products to Sell
One key choice is whether you want to run a store using Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM).
FBA means that brands take care of sourcing and selling products. From then on, it’s Amazon that handles storage, shipping, delivery and customer service. It’s the go-to choice for most sellers, for the following reasons:
Benefit from Amazon’s delivery service, which most customers expect. FBA products feature automatic Prime eligibility. Better search ranks, since Amazon favors FBA items. Pack and deliver products across different websites.
FBM is oriented to seller independence. It’s the brand that takes charge of the complete selling process. That means taking care of sales, inventory, deliveries and service. It’s more work, but FBM also comes with interesting perks:
You don’t pay storage or fulfillment fees to Amazon. This translates to lower shipping costs. Take charge of quality control, and store products as you see fit to improve fulfillment. No worries about confusing your stock with a similar offer. Manage customer services to deliver a more personal touch. You’ll be in direct contact with customers. This puts you in place to create better shopping experiences. Enrollment in Seller-Fulfilled Prime to enjoy Amazon Prime benefits.
Related content: What to sell on Amazon in Q1 2022
How to Create an Amazon Seller Account
Once you complete the above steps, you can set up your Amazon Seller account. First off, you need to keep the following information at hand:
Name, address, and contact details of your legal business handy.Email that you’ll use for your company account. We recommend that you set it up on your business domain. The marketplace will send you important notices right after you sign up.Valid phone number where Amazon can reach you. You may have to take a few verification calls, so have your phone nearby to help move things along.Credit card information, with a valid billing address. You need to submit your card data during signup. Note that Amazon will cancel your registration if the credit card doesn’t check out.Tax identity data. For Sole Proprietors, this includes a Social Security number. For LLCs, submit your business’s Federal Tax ID.
Now that you have all the details, you can start creating your Amazon Seller account. Let’s review the full procedure, step by step.
Step 1: Sign Up
Go to the Amazon homepage and locate the “Sell” button below the search bar. Now, click on “Sign Up.”
You can also go to sell.amazon.com to learn more about Amazon’s seller benefits and selling plans.
Step 2: Create an Account
You’ll be redirected to the Amazon Seller Central Login site. Here, click on “Create your Amazon account” and fill in your business name, email and password.
Amazon will send you a verification email. Once you receive it, submit the provided code and click on “Sign In”.
Step 3: General Data
Log in to your new Amazon seller account. Now, you should start submitting your legal information. Here’s the data that Amazon requires from you:
Legal nameBusiness location, meaning the country where your brand resides. Business type. Which can be state-owned, publicly-owned, privately-owned, charity or individual. Your full name
Double-check your data. Then, click on “Agree and Continue”.
Step 4: Personal Information
You will then be asked for your personal information and business address. You also have to submit the unique business display name for your store. This is the name that everybody on Amazon will see.
Amazon will also require proof of identification. It can be your ID, passport, or driver’s license. You are also required to give Amazon a phone number for verification purposes.
Double-check every detail before you click on “next”. Amazon will then contact you to verify all your data.
Note: Amazon will notify you if your business name is already taken. In that case, you need to submit a new business name.
Step 5: Billing Information
The next step is to submit a billing method. This is where you’ll provide Amazon with valid credit card and bank account data.
In this step, you will also verify your chosen selling plan: Sole Proprietor or LLC. And don’t forget to check the FBA box if you are setting up an FBA account.
Verify all your data, and move on to the next step.
Note: It’s recommended that you use internationally recognized cards and bank accounts on Amazon. This comes in handy when dealing with sales overseas.
Step 6: Tax Interview
You will need to get through a “tax interview” process. This step requires that you enter your tax ID data. Amazon needs to keep tabs of all their third-party sellers. So, they need to register you in their system.
The tax interview is the time to verify if you are a Sole Proprietor or an LC business. Remember, Sole Proprietors must use an SSN as their tax ID number, and LLC stores can submit an Employer Identification Number.
After you have submitted your information, Amazon immediately provides you with a W-9 form.
Step 7: Store and Product Data
Amazon will ask you to provide some general information about your store and products. Now, this is an optional step, but it’s better to set up now, so you can start selling as soon as possible.
Here’s what you have to submit:
Store name. Make sure it is a unique, catchy title. Confirm if you have UPCs for all your items.State if you are the manufacturer or owner of the products you will sell. Confirm if you own a registered trademark for any branded items you plan to offer.
Once you’re done, click on “Next.”
Step 8: Identity Verification
The last step is to verify your identity. You’ll need to upload a photo of your chosen ID, and also a bank statement. Lastly, confirm your business address.
Done! Your account is now under review. The process may take 1-2 days until Amazon verifies all your data.
Start Selling on Amazon
Your Amazon account is ready to go! Now, you are all set to explore the perks inside Seller Central.
Don’t worry, Amazon will have your back every step of the way. Seller Central offers a lot of help resources for sellers. With a bit of experimenting, you’ll get the hang of the dashboard in no time.
From here on, you now get to decide how to run your Amazon business. But as we said before, your Amazon Seller account can’t work without proper planning.
Take the time to weigh the most beneficial Amazon features for you. Also, prepare your new store for customers. Make it easy for them to find you and know your brand qualities.
Once you’ve set up your business model, create your seller account. That way, you’ll be set to make a dent on Amazon from the get-go.
Author
Esteban Muñoz is an SEO copywriter at AMZ Advisers, with several years’ experience in digital marketing and e-commerce. Esteban and the AMZ Advisers team have been able to achieve incredible growth on the Amazon platform for their clients by optimizing and managing their accounts and creating in-depth content marketing strategies.
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