How to Start an Amazon Store

Amazon is one of the world's largest marketplaces -- so if you're thinking of leveraging that for an extra revenue stream or to put your unique products out there, you'll first need to know how to start an Amazon store.

The good news? It's easy -- very easy.

Here's everything you need to know about it, from the best Amazon experts.

Advantages of building an Amazon store

Amazon stores make it easy to sell products online and provide a range of benefits that can help businesses grow and reach new customers. If you are looking for ways to add another revenue stream to your business, sell your products, or build your brand, an Amazon store could be just the solution you need.

The main reason Amazon makes an attractive proposition?

Amazon is a massive platform -- and it provides you with all the tools you need to succeed as an eCommerce store owner. From fulfillment to promotion, Amazon's got you covered.

Why should you choose Amazon as an independent seller?

Some of the main advantages of building an Amazon store include:

Wide reach

With over 300 million active users, Amazon provides access to a huge potential business customer base. This allows businesses to expand their reach and potentially scale easier when the time is right.

Simplified Logistics with Fulfillment by Amazon (FBA)

Amazon's FBA program takes the heavy lifting out of logistics for sellers. By utilizing FBA, sellers can store their products in Amazon's fulfillment centers. Amazon then handles storage, packing, shipping, and customer service for these products, making the selling process much more manageable for businesses.

Increased Trust and Credibility

By selling on Amazon, businesses benefit from the platform's established trust and credibility. Customers are more likely to purchase from Amazon due to its well-known customer service policies, including easy returns and refunds, which in turn can lead to higher conversion rates for sellers.

Access to Powerful Marketing Tools

Amazon offers a variety of marketing tools that can help sellers reach their target audience more effectively. These tools include sponsored product ads, brand stores, and the Amazon Brand Registry, which helps businesses protect their brand and create a more customized shopping experience.

Customer Insights Through Analytics

Amazon provides sellers with valuable data and analytics that can help them understand their customers better, monitor their sales, and optimize their listings. This access to analytics allows sellers to make data-driven decisions to grow their business and increase their sales on the platform.



Choose your business model

If you're just starting out and you're not sure what business model works best for you, consider one of the three main options you have for your Amazon store:

Retail arbitrage 

Retail arbitrage involves buying products at a lower price from retail stores and then selling them at a higher price on Amazon. It's a popular method for sellers looking to make a profit by capitalizing on discounts and clearance sales from physical or online retailers.

Private label 

Private label selling means you create your brand and packaging, then sell your products under this label on Amazon. This approach allows sellers to build and grow their brands, offering unique products to the market while utilizing Amazon's vast customer base and logistics.

Authorized wholesaling 

Authorized wholesaling involves purchasing products directly from the manufacturer at wholesale prices and selling them on Amazon. This requires establishing relationships with manufacturers and obtaining permission to sell their products on the platform.

Create an online store 

Creating an online store on Amazon begins with setting up an Amazon Seller Account, which can be done through the Amazon Seller Central website. Initially, you'll need to decide between two types of accounts: an Individual account, which is ideal for sellers planning to sell fewer items and doesn't require a monthly subscription fee, and a Professional account, which is geared towards sellers with high volumes of sales and includes a monthly fee.

During the sign-up process, you'll be asked to provide detailed information about your business, including your legal business name, contact information, and tax identification details. It's essential to have this information ready to streamline the account setup process.

Once your Amazon Seller Account is active, you can start listing your products. Amazon makes this straightforward with options to add products already on the platform or to create new listings for unique items. For new products, detailed descriptions, high-quality images, and selecting the right categories are crucial for visibility and sales.

After listing your products, you should consider enrolling in the Fulfillment by Amazon (FBA) program to leverage Amazon's logistics network, including storage, packing, and shipping services. This step is optional but can significantly ease the burden of order fulfillment, allowing you to focus more on growing your business.

Selling plans on Amazon

If you decide to make Amazon your mothership, you should know there are some fees Amazon sellers need to pay:

Individual ($0.99/ sale) 

The Individual selling plan on Amazon is tailored for sellers who expect to sell fewer items, charging a fee of $0.99 per sale made. This option is suitable for those just starting out or testing the Amazon marketplace without committing to a monthly subscription fee.

Professional ($39.99/ month)

The Professional selling plan on Amazon is designed for sellers anticipating higher sales volumes, requiring a monthly fee of $39.99 but eliminating the per-sale charge. This option is optimal for established sellers aiming to leverage Amazon's platform for significant business operations and growth.



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What is the Seller Central Account

As mentioned before, if you want to start selling on Amazon, you'll need to set up a Seller Central account. But what is it exactly?

Seller Central is Amazon's online platform for sellers to manage their selling accounts and products, track sales and inventory, and access valuable data and analytics. It serves as a central hub for all aspects of your business on the Amazon marketplace.

Within Seller Central, you can also communicate with customers, manage customer reviews and feedback, create promotions and discounts, and access seller support resources. It's a crucial tool for any Amazon seller to effectively run their business on the platform.

What is the Amazon Brand Registry?

The Amazon Brand Registry isn't mandatory -- but it's a powerful tool for sellers looking to protect their brand and create a more customized shopping experience for customers.

By enrolling in the Brand Registry program, you gain access to features like Enhanced Brand Content, allowing you to create visually appealing and informative product listings (with rich media), and Brand Analytics, providing data and insights on your brand's performance on Amazon.

Additionally, the Brand Registry helps prevent counterfeit products and fraudulent sellers from using your brand name, giving you more control over how your brand is represented on the platform. Overall, it's a valuable resource for sellers looking to establish and maintain their brand presence on Amazon.

How to choose a fulfillment method 

Once you have a better idea of how you want to sell on Amazon and what fees and costs are involved, it's time to consider the best fulfillment method for your business. There are two main options you can choose from:

Fulfilling orders yourself 

The main advantage of taking this route is that you have more control over your inventory and shipping process. However, it also requires additional operational efforts and costs, such as storage space, packaging materials, and managing shipments.

FBA (Fulfilment by Amazon)

If you opt for FBA (Fulfilment by Amazon), you will have to deal with much less hassle than if you were fulfilling orders yourself. Amazon will handle the majority of the logistics, freeing up your time to focus on other aspects of your business.

However, keep in mind that there are FBA fees involved, which can impact your profit margins. Furthermore, you have less control over the packaging and shipment process, which could affect your brand image. Ultimately, it's essential to consider your business needs and goals when deciding on a fulfillment method.



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How to list your products correctly

It is essential to list your products correctly (and optimize your product pages for better conversions.) This includes choosing the right categories, providing accurate and detailed product descriptions, using high-quality images, and optimizing keywords for better search visibility.

Some general tips for your product listings include:

• Use concise and descriptive titles (e.g., "Men's Black Leather Loafers" instead of "Shoes")
• Use bullet points to highlight product features and benefits (make sure you focus on what's in it for the buyer
• Provide accurate product dimensions, materials, and care instructions
• Use Amazon's Enhanced Brand Content for a more visually appealing listing (for example, it allows you to include lifestyle images and videos)
• Monitor customer reviews and address any issues or complaints promptly (and publicly)

Run keyword research to optimize product page

Running effective keyword research is a critical step in optimizing your product page on Amazon, enhancing visibility, and attracting more potential buyers.

Here are some tips on how to run in-depth keyword research for your Amazon product pages:

• Start with a list of relevant keywords related to your product and brand
• Use Amazon's Autosuggest feature to see what other similar products are being searched for
• Look at competitor product listings and identify any high-ranking keywords they use
• Use keyword research tools like Helium 10, MerchantWords, or Jungle Scout for more in-depth analysis and data.

Remember that fulfilling the user's search intent is the single most important factor in ranking high on Amazon's search results. So make sure to use relevant keywords and phrases throughout your product page, without overstuffing them or sacrificing the quality of your content.

How to price your products

Your product pricing strategy is just as important as the products, placement, and promotion. As a general rule your pricing strategy should reflect the value proposition of your product, consider competitor prices and market demand.

Here are some tips to help you price your products effectively on Amazon:

• Start by researching similar products on Amazon and assessing their pricing strategies
• Consider your production costs (including any fees involved) and profit margins when setting a price
• Understand the market demand for your product and set a competitive price accordingly
• Take advantage of Amazon's automated pricing tools, such as the repricing software or dynamic pricing features.

Ultimately, it's crucial to find the right balance between profitability and competitiveness when pricing your products on Amazon. Continuously monitor market trends and adjust your prices accordingly for optimal results.

Monitor your Amazon store’s performance

If you want your Amazon store to do well, you must be prepared to continuously monitor and analyze its performance (despite what people say, Amazon stores are not necessarily a Doing this will allow you to identify areas of improvement, track your progress, and make data-driven decisions to drive growth.

Here are some key performance metrics to keep an eye on:

• Sales and revenue
• Customer feedback and reviews (both positive and negative)
• Traffic sources (i.e., where your customers are coming from)
• Conversion rates (how many visitors turn into paying customers)
• Inventory levels and stock availability
• Advertising campaigns and their impact on sales.

Use Amazon's Brand Analytics tool to access even more data and insights into your store's performance, including brand health metrics, customer demographics, top-performing products, and more. By regularly monitoring these metrics, you can make informed decisions to optimize your store for maximum success on Amazon.

All in all, however, your Amazon's store performance can be grouped into three main areas:

Customer service 

Excellent customer service is crucial for maintaining a positive brand image and encouraging repeat business on Amazon. It involves promptly addressing customer inquiries, resolving issues efficiently, and ensuring a smooth and satisfying purchasing experience.

Account health 

Account health refers to the overall status and performance metrics of your Amazon seller account, encompassing various factors such as order defect rate, cancellation rate, and late shipment rate. Maintaining good account health is crucial for sellers to remain in good standing on Amazon, ensuring their ability to continue selling and growing their business on the platform.

Shipping performance

Shipping performance measures the efficiency and reliability of your order fulfillment process, focusing on metrics such as on-time delivery rates and the accuracy of order fulfillment. It's a critical aspect of customer satisfaction and plays a significant role in maintaining a positive seller performance rating on Amazon.

Promote & advertise your products

Your account is now set up, your products are listed, and your listings are optimized. The next step is to promote and advertise your products on Amazon to drive more traffic and sales.

Coupons 

Coupons on Amazon are digital vouchers that sellers can create to offer discounts to buyers on their products. This promotional tool helps in attracting new customers, increasing sales, and encouraging repeat business by providing a financial incentive for purchases.

Some of the most important tips to remember when using coupons include:

• Set a discount amount that is substantial enough to attract buyers but does not eat into your profit margins too much
• Use Amazon's targeting options to reach specific customer segments
• Create a sense of urgency by setting an expiration date for the coupon.
• Whenever possible, capture email addresses as well (so you can use them for future promotions)
• Make sure your Amazon storefront is always optimized and looking professional and trustworthy

Percentage discounts

Percentage discounts are straightforward promotions that reduce the price of your products by a certain percentage, making them more attractive to potential buyers and encouraging quicker sales. This technique not only boosts immediate sales but can also increase visibility and ranking on Amazon's search results.

Here are some tips for implementing percentage discounts effectively:

• Determine an appropriate discount percentage that balances increased sales appeal with maintaining profit margins.
• Consider timing these discounts with seasonal sales or events to maximize impact.
• Monitor the performance of these discounts closely to understand customer response and adjust strategy as needed.
• Leverage Amazon’s deal pages by ensuring your discounted products meet the criteria to be featured, increasing their visibility.
• Use percentage discounts in conjunction with other promotional strategies like lightning deals or coupons for compounded effects.

Amazon Deals 

Amazon Deals include Lightning Deals and Deal of the Day promotions that offer your products at reduced prices for a limited period to all Amazon customers, boosting visibility and sales. These deals can significantly increase traffic to your listings and are an excellent way to clear out inventory or promote new items.

• Plan your deals well in advance, especially for peak shopping times like the holiday season, to capitalize on increased traffic.
• Ensure your inventory levels can meet the potential surge in demand to avoid stockouts.
• Price your deals competitively to stand out among thousands of deals being offered.
• Use high-quality images and compelling product descriptions to maximize conversions during these promotions.
• Keep an eye on performance metrics after the deal to measure its impact and gather insights for future promotions.

Sponsored products ads

Sponsored products ads on Amazon help increase the visibility of your products by displaying them in prominent positions on Amazon's search results and product detail pages. This pay-per-click advertising solution allows sellers to bid on keywords, making it easier for potential customers to discover their products.

Here are some tips for optimizing your sponsored product ads:

• Conduct thorough keyword research to identify high-traffic keywords relevant to your products.
• Start with automatic targeting to collect data and understand which keywords perform well before moving to manual campaigns.
• Regularly review and adjust your bids based on the performance of your ads to ensure you're competitive without overspending.
• Use negative keywords to exclude irrelevant traffic and improve the efficiency of your ad spend.
• Monitor your advertising cost of sale (ACoS) to measure the effectiveness of your ads and maintain profitability.

Sponsored brands ads

Sponsored brands ads on Amazon highlight your brand and product portfolio by displaying your logo, a custom headline, and multiple products in your ads, enhancing brand awareness. These ads appear in more visible locations, like at the top of search results, increasing the likelihood of customer clicks.

• Use a compelling headline that communicates your brand's value proposition clearly.
• Select products for your ad that are closely related or complementary to encourage multiple purchases.
• Regularly update your creative assets and messaging to keep your brand image fresh and engaging.
• Analyze performance data to refine your targeting strategy and improve return on ad spend.
• Consider seasonal or event-driven campaigns that align with shopper interest to boost visibility during peak times.

Sponsored Display ads 

Sponsored Display ads provide a way for sellers to target and retarget Amazon customers both on and off Amazon's platform, using auto-generated ads that showcase their products based on customer interests and behaviors. These ads help in increasing product visibility, driving more conversions, and building brand loyalty by reaching potential customers at various stages of their shopping journeys.

• Use product targeting to place your ads on relevant product detail pages, making it easier for shoppers to discover your products.
• Employ audience targeting to reach customers based on their shopping behaviors and patterns, such as those who viewed your products but did not purchase.
• Adjust your bids and budgets regularly to maximize your return on investment and avoid overspending.
• Analyze the performance data of your sponsored display campaigns to understand customer engagement and refine your targeting strategy.
• Leverage retargeting to re-engage customers who have shown interest in your products, encouraging them to complete their purchase.
• Optimize your product listings with high-quality images and content to improve conversion rates from your Sponsored Display ad traffic.

Incentivize product reviews

Positive product reviews are great from two main points of view:

• They act as social proof for potential customers who land on your product pages
• They help the Amazon algorithm to rank your products better

To encourage more product reviews, consider offering incentives to customers who leave a review. This could be in the form of a discount on their next purchase or entry into a giveaway contest. However, make sure to follow Amazon's guidelines and policies when it comes to incentivizing reviews.

• Use follow-up email campaigns to remind customers to leave a review after they have received their product.
• Personalize your messaging to make it more engaging and increase the likelihood of customer response.
• Monitor the reviews you receive and address any negative feedback promptly to show customers that you value their opinions and are committed to providing a positive shopping experience.
• Encourage happy customers to leave reviews by including a call-to-action in your packaging or product inserts.

Integrate your store 

Integrating your store with Amazon allows you to manage your inventory, orders, and fulfillment from one central location, making it easier to sell on multiple channels. This integration can also help increase brand awareness and reach new customers.

• Use Amazon's integration tools or third-party software to connect your online store with Amazon's platform.
• Ensure that all product information is accurate and up-to-date across all platforms to maintain consistency and avoid confusion for customers.
• Monitor your inventory levels closely to avoid stockouts and overselling, which can lead to negative reviews and impact your sales.
• Utilize Amazon's fulfillment services (FBA) to streamline the shipping process and improve customer satisfaction with faster delivery times.

Employ growth tactics

Even after your Amazon store is fully launched and optimized, it's important to continue implementing growth tactics to drive more sales and increase your store's visibility. Some effective growth strategies include:

• Use social media to promote your products and engage with potential customers.
• Collaborate with influencers or create affiliate partnerships to reach a wider audience.
• Participate in Amazon's deals and promotions, such as Lightning Deals and Prime Day, to attract new customers and boost sales.
• Utilize Amazon's advertising options, such as Sponsored Products, to increase product visibility and drive targeted traffic to your listings.
• Monitor trends and adjust your product offerings accordingly to stay ahead of the competition.
• Keep experimenting with new strategies and tactics to see what resonates with your customers and drives the most results.
• Stay up to date with Amazon's policies and guidelines to ensure compliance and avoid any potential penalties or suspensions.
• Continuously monitor and adjust your pricing strategy to stay competitive in the market.
• Build a strong brand presence on and off Amazon by consistently delivering high-quality products, exceptional customer service, and engaging marketing efforts.
• Be patient and persistent - success on Amazon takes time and effort, and there will be ups and downs along the way. Stay focused on your goals and continuously work towards improving your store's performance.

No magic recipe for winning Amazon stores

People like to say "this" works or "that other thing" works, but the truth is very often far more nuanced. Just as there are no running shoes to fit every single person from every point of view, there is no one-size-fits-all formula for success on Amazon.

It all depends on various factors such as your product niche, target audience, competition, and more.

The one non-negotiable part to being a good professional seller on Amazon and running a successful online business?

Constantly tinkering with your strategy and tactics. No strategy will work forever -- so roll up your sleeves and re-adjust as many times as needed.

Need help growing your Amazon store? Check out our best Amazon marketing agencies and let's get in touch. We'll match you with the perfect one for your industry and needs!