Ever wondered if you could turn your ideas or everyday finds into real income on Amazon? With millions of shoppers browsing daily, Amazon offers incredible potential—but only if you know what to sell and how to do it right.
Understanding how—and what—to sell isn’t just about listing products. It’s about tapping into demand, outsmarting competition, and creating a smooth experience for buyers.
In this article, we’ll break down the essential steps, tips, and key insights to successfully launch your Amazon selling journey.
Related Video
How and What to Sell on Amazon: The Complete Guide for 2025
Selling on Amazon has become a powerful way to start or expand your business, reach millions of customers, and build a recognizable brand. Yet, with opportunity comes complexity: what exactly should you sell, and how do you succeed on the world’s largest marketplace?
This comprehensive guide will break down everything you need to know about how to sell on Amazon, what to sell, the best practices for getting started, and practical tips for shipping, costs, and scaling your Amazon business in 2025.
Understanding How Selling on Amazon Works
Amazon allows individuals and businesses to list and sell products directly to customers on its platform. As a seller, you can tap into Amazon’s global audience, leverage its trusted payment and shipping systems, and benefit from various selling tools.
There are two main ways to sell on Amazon:
- Selling as a third-party seller (Amazon Marketplace): You list products either under your own brand (private label) or as a reseller.
- Selling direct to Amazon as a vendor: Amazon buys your products at wholesale prices, and they sell them to consumers. This is invited by Amazon and less common for beginners.
Most new sellers start as third-party sellers because it’s accessible and comes with flexible options for inventory and fulfillment.
What to Sell on Amazon
Choosing what to sell is one of the most important—and challenging—parts of your Amazon journey. The key is to balance demand, profitability, competition, and your own knowledge or passion.
1. Popular Product Categories
Amazon’s marketplace offers almost every product imaginable, but some categories are more beginner-friendly and profitable than others. Consider these options:
- Home & Kitchen: Includes gadgets, decor, storage, and organizational tools.
- Health & Personal Care: Skincare products, supplements, and grooming tools—with attention to compliance.
- Toys & Games: Always popular, especially around holidays.
- Sports & Outdoors: Equipment, accessories, yoga mats, and water bottles.
- Pet Supplies: Toys, grooming tools, feeders, and health items.
- Office Products: Stationery, organizers, and productivity tools.
- Electronics Accessories: Phone chargers, cases, headphones, but beware of counterfeits and certification needs.
Stay away from restricted categories (alcohol, drugs, hazardous materials, etc.) unless you’re experienced and have the proper documentation.
2. Private Label vs. Retail Arbitrage vs. Dropshipping
Let’s explore your options:
- Private Label: Creating your own branded products, often sourced and modified from manufacturers. Higher profit potential and long-term brand value, but requires bigger upfront investment and diligent research.
- Retail Arbitrage: Buying discounted or clearance items from local stores to resell on Amazon. Low barrier to entry, but less scalable and can be labor intensive.
- Wholesale: Bulk purchase established brands to resell. Stable but competitive; requires approval from suppliers.
- Dropshipping: Partnering with suppliers to ship products directly to customers after you make a sale. Less inventory risk, but lower margins and less control.
Many successful Amazon businesses combine these approaches.
3. Tools for Finding Profitable Products
Use research tools and strategies to find “golden” products:
- Look for products with steady, high demand and moderate competition.
- Target items with strong, but not saturated, reviews.
- Use Amazon’s Best Sellers, Movers & Shakers, and Keyword Research tools.
- Analyze competitors—note pricing, ratings, and listing quality.
- Beware of fads or high-risk, high-restriction items.
Step-by-Step: How to Start Selling on Amazon
Starting your Amazon business takes just a few steps. Let’s break it down:
1. Decide What to Sell
Research products you’re passionate about or that have proven, consistent demand. As discussed, aim for items that allow a healthy profit margin after fees, shipping, and advertising.
2. Set Up Your Seller Account
You’ll need to decide between two types of accounts:
- Individual Account—No monthly fee; pay $0.99 per sale. Great for small-scale or occasional sellers.
- Professional Account—Monthly fee (typically around $39.99); lower per-item fees and access to advanced tools, advertising, and bulk listing.
Gather essential documentation:
- Government-issued ID
- Bank account and credit card
- Tax information
3. List Your Products
When your account is ready:
- Search for your product on Amazon to see if it already exists. If so, you can list your offer under the existing listing.
- For new products, create a new listing. You’ll need high-quality images, detailed descriptions, keywords, pricing, and inventory information.
- Optimize your listings for search and conversion. Use professional photos and clear, benefit-driven copy.
4. Choose Your Fulfillment Method
Amazon offers two main options:
- Fulfillment by Amazon (FBA):
- You send inventory to Amazon’s warehouses.
- Amazon stores, packs, ships, and handles customer service and returns.
-
Higher fees but saves time and boosts customer trust (Prime eligibility).
-
Fulfillment by Merchant (FBM):
- You store and ship products directly to customers.
- More control but more hands-on work.
Tip: Many new sellers start with FBA for the logistics support and “Prime” badge advantage.
5. Set Pricing and Manage Inventory
- Consider all costs (product, shipping to Amazon, FBA fees, storage, advertising).
- Check competitor pricing to stay competitive but profitable.
- Set up inventory alerts to avoid “out of stock” situations.
6. Launch and Market Your Product
- Run Amazon PPC (Pay-Per-Click) campaigns to boost initial visibility.
- Encourage legitimate customer reviews for social proof.
- Monitor feedback and adjust your listings as needed.
7. Process Orders and Provide Great Service
- With FBA, Amazon handles shipping and returns.
- With FBM, ship promptly, provide tracking, and handle customer inquiries with care.
- Keep your order defect rate low; Amazon monitors your performance.
8. Analyze & Optimize Performance
- Use Amazon Seller Central analytics for insights on sales, traffic, and conversion.
- Refine your product offerings based on data.
- Experiment with promotions and bundling.
Benefits of Selling on Amazon
Selling on Amazon offers many advantages:
- Massive Customer Base: Tap into millions of potential buyers globally.
- Trusted Platform: Leverage Amazon’s reputation and trusted checkout process.
- Easy Payments and Shipping: Amazon manages payments and, with FBA, handles logistics.
- Brand Building: Build and promote your own brands with Amazon Brand Registry.
- Scalability: Start small, then expand your product lines and reach.
Challenges to Expect (and How to Overcome Them)
It’s not all smooth sailing—these are some common hurdles:
- Competition: Many categories are competitive; niche down and provide better value or experience.
- Amazon Fees: Commissions, fulfillment, and advertising eat into margins. Calculate costs carefully.
- Account Suspensions: Stay compliant with Amazon policies to avoid disruption.
- Customer Expectations: Fast shipping and excellent customer service are required for good reviews.
- Inventory Management: Overstocking or understocking can be costly. Plan and monitor closely.
Practical Tips & Best Practices
Succeeding on Amazon often comes down to following these proven tips:
Product Sourcing
- Order samples before bulk buying to verify quality.
- Use reputable suppliers, and negotiate for better terms as you grow.
- Start small to minimize risk; scale as sales pick up.
Packaging & Branding
- Invest in professional packaging, even for small items.
- Trademark and enroll your private label in Amazon Brand Registry for protection and enhanced tools.
Listing Optimization
- Use clear titles, high-quality images, and keyword-rich bullet points.
- Address common customer questions right in your listing.
- Regularly update your listing based on data and customer feedback.
Inventory and Shipping Costs
Shipping to Amazon (for FBA):
- Factor in shipping costs to Amazon’s warehouses (domestic or international).
- Use Amazon’s partnered carrier program for discounts.
Shipping to Customers (for FBM):
- Choose reliable, trackable shipping methods.
- Set shipping rates carefully; too low cuts into profits, too high can kill conversions.
Cost-Saving Tips:
- Ship inventory in bulk to lower per-unit shipping costs.
- Use local warehouses if available to reduce transit time and cost.
- Monitor FBA storage fees, especially for slow-moving products.
Managing Customer Service
- Respond to customer messages within 24 hours.
- Handle returns fairly and promptly to keep your account healthy.
- Proactively seek feedback and resolve negative reviews.
How Much Does It Cost to Sell on Amazon?
Here’s a rundown of typical costs:
- Monthly account fee: ~$39.99 (Professional plan)
- Referral fee: 8-15% (varies by category)
- FBA fee: Based on item weight, size, and category
- Shipping to Amazon warehouses: Varies (use Amazon’s partner rates)
- Advertising: Costs depend on your marketing budget
Pro Tip: Use Amazon’s free FBA revenue calculator to estimate your profit per item.
Scaling Up: Growing Your Amazon Business
Once you’re making regular sales, look for ways to expand:
- Add new products, especially in related categories.
- Explore international Amazon marketplaces for wider reach.
- Improve your branding and create bundles or exclusive offers.
- Invest in external advertising and social media to drive more traffic to your listings.
Frequently Asked Questions (FAQs)
How much money do I need to start selling on Amazon?
You can begin Amazon selling with as little as a few hundred dollars if you’re starting with retail arbitrage or dropshipping. For private label or wholesale, plan for $1,000–$5,000 (or more) to cover samples, initial inventory, shipping, and launch ads.
How do I decide what products to sell?
Start by researching products with consistent demand, moderate competition, and healthy margins. Use Amazon research tools, study customer reviews, and consider products you’re knowledgeable and passionate about.
What’s the difference between FBA and FBM?
Fulfillment by Amazon (FBA) means Amazon stores, packs, ships, and handles customer service. Fulfillment by Merchant (FBM) means you take care of storage, shipping, and service. FBA is more hands-off and allows you to offer “Prime” shipping, often resulting in higher sales.
Can I sell from outside the United States?
Yes, Amazon allows international sellers on most marketplaces. You’ll need to comply with their requirements and may need a local bank account. Many sellers use FBA to simplify cross-border shipping.
How do I get reviews for my product?
Encourage feedback from buyers by providing excellent service and “request a review” via Amazon tools after a sale. Never offer incentives for reviews; this is against Amazon’s policies and could result in suspension.
In Summary
Selling on Amazon in 2025 is both an exciting opportunity and a serious business commitment. By understanding what to sell, mastering the step-by-step selling process, optimizing your listings, and staying on top of costs and customer service, you can build a profitable business—whether it’s your side hustle or your full-time focus.
Stay patient, continue learning, and always put your customers first. That’s the real formula to Amazon success.
