How to Sell on Amazon

At Lillian Purge, we specialise in Ecommerce SEO Services and have developed comprehensive guidance on How to Sell on Amazon.

Amazon, covering everything from setting up your account and choosing the right fulfilment method to optimising your listings and increasing conversions.

Why Sell on Amazon?

Amazon dominates global ecommerce, with millions of active customers searching for products daily. Selling on Amazon gives businesses instant access to this audience, letting you showcase your products alongside major brands. Whether you’re launching a new venture or expanding an existing business, the platform offers credibility, reach, and infrastructure that are difficult to match independently.

Amazon takes care of logistics, payments, and customer service for sellers who choose its fulfilment programme, while also providing tools for independent sellers who prefer to manage their own operations.

Who Should Sell on Amazon

Selling on Amazon suits a wide range of sellers. It’s ideal for:

• New entrepreneurs testing demand before building their own website

• Established retailers expanding into marketplaces

• Brands wanting additional visibility for existing products

• Private label businesses creating their own branded ranges

Amazon’s scale allows businesses of all sizes to compete, although competition is strong, so success depends on strategy and presentation.

How Selling on Amazon Works

To sell on Amazon, you create an account, list your products, and choose how to fulfil orders. When customers buy your items, Amazon processes payments and handles delivery, depending on your fulfilment method. You pay Amazon selling fees, which vary depending on the plan you select and the category of your products.

There are two main selling plans:

• Individual plan: Best for small sellers listing under 35 items per month. You pay a small fee per item sold.

• Professional plan: Ideal for high-volume or business sellers. It involves a flat monthly subscription fee and lower per-item costs.

Step-by-Step Guide to Selling on Amazon

1. Create a Seller Account

Go to Amazon Seller Central and choose either an individual or professional plan. You’ll need business information such as your company name, VAT number (if applicable), contact details, and bank account for payments. Verification may require ID and proof of address.

Once your account is approved, you can start listing products immediately.

2. Choose a Fulfilment Method

You have two main options:

Fulfilment by Amazon (FBA):
You send your inventory to Amazon’s warehouse, and they handle storage, packaging, shipping, and customer service. It saves time and often improves your chances of winning the Buy Box because Amazon prioritises fast delivery. However, FBA comes with storage and fulfilment fees.

Fulfilment by Merchant (FBM):
You store and ship orders yourself. This option provides more control but requires time and reliable logistics. FBM suits larger or heavier items where FBA storage fees may be high.

3. List Your Products

Product listings are the backbone of your Amazon store. If your item already exists in Amazon’s catalogue, you can add your offer to that existing listing. If it’s new, you’ll need to create a fresh one.

Include:

• A clear title (under 200 characters) with relevant keywords

• High-quality images showing multiple angles

• A detailed description that highlights benefits and specifications

• Bullet points summarising key features

• Accurate pricing and stock availability

Use keyword tools like Helium 10 or Jungle Scout to identify search terms that shoppers use when looking for similar products.

4. Optimise Your Listings for SEO

Amazon’s search engine (A9) ranks listings based on relevance, performance, and customer satisfaction. Optimising your listings helps improve visibility and sales.

Focus on:

• Keywords in product titles, bullet points, and descriptions

• Competitive pricing

• Strong conversion rates

• Positive customer reviews

• Fast and reliable shipping

Include backend search terms in your Seller Central listing fields to capture additional keyword variations without cluttering visible content.

5. Manage Inventory and Pricing

Monitor stock levels regularly. Running out of stock can harm your rankings because Amazon favours consistent availability.

Pricing strategy is also critical. Use Amazon’s automated pricing tool or third-party repricing software to remain competitive. Keep in mind that Amazon updates prices frequently based on demand, seller competition, and delivery performance.

6. Deliver Excellent Customer Service

Customer satisfaction is central to Amazon’s ecosystem. Respond promptly to questions, resolve disputes efficiently, and monitor performance metrics such as order defect rate and late dispatch rate.

FBA sellers benefit from Amazon’s customer service handling, while FBM sellers must maintain their own service standards to avoid penalties or account suspension.

7. Encourage Reviews and Ratings

Reviews influence both visibility and trust. After a sale, use Amazon’s “Request a Review” feature in Seller Central to ask buyers for feedback. Never offer incentives in exchange for reviews, as this violates Amazon’s policies.

High review counts and positive feedback increase conversions and improve your position in search results.

8. Advertise Your Products

Amazon offers advertising options that can help new sellers gain traction.

• Sponsored Products: Promotes individual listings in search results.

• Sponsored Brands: Displays your logo and custom headline across multiple products.

• Sponsored Display: Targets customers who have shown interest in your products or related items.

Advertising is pay-per-click, so you only pay when someone clicks your ad. Track results and adjust bids regularly for profitability.

9. Analyse Performance

Use Amazon’s analytics tools to track sales, impressions, and conversion rates. Data helps identify which products perform best, what keywords drive results, and where improvements are needed.

You can also use third-party tools to monitor trends, profit margins, and inventory efficiency. Successful sellers treat Amazon as a data-driven platform and make informed adjustments based on performance.

Costs Involved in Selling on Amazon

Amazon charges various fees depending on the plan and fulfilment method you use. Typical costs include:

• Monthly subscription fee for Professional sellers (around £25)

• Referral fees on each sale (usually 8–15% depending on category)

• FBA fees for storage and fulfilment (based on size and weight)

• Optional advertising spend

Budgeting for these fees ensures you maintain healthy profit margins. Calculate your total costs carefully before setting prices.

Common Challenges of Selling on Amazon

While the opportunity is significant, there are challenges to be aware of.

High competition: Many categories are crowded, requiring strong branding and optimisation.
Tight profit margins: Fees and price wars can reduce profits if you’re not strategic.
Platform dependency: Your visibility depends on Amazon’s algorithm, so changes can impact traffic.
Strict policies: Breaches of Amazon’s rules can lead to account suspension.

Overcoming these challenges requires patience, consistent quality, and an understanding of the marketplace.

Building a Brand on Amazon

Although many sellers focus on short-term sales, long-term success depends on brand recognition. Use tools like Amazon Brand Registry to protect your trademarks and unlock enhanced content options such as A+ Content and Brand Stores.

A+ Content allows you to add richer visuals and comparison charts, which boost engagement and trust. Building a recognisable brand makes you less vulnerable to competitors and price competition.

Expert Tips for Amazon Success

1. Start with a few well-researched products instead of hundreds.

2. Prioritise image quality – it’s the first thing buyers notice.

3. Use keyword-optimised titles and bullet points for higher visibility.

4. Keep FBA inventory levels stable to maintain Prime eligibility.

5. Analyse your competitors’ reviews to identify gaps you can fill.

6. Experiment with ads but track ROI closely.

7. Build an email list outside of Amazon to maintain long-term customer relationships.

Is Selling on Amazon Worth It?

For most UK businesses, selling on Amazon is absolutely worth it. It provides instant access to millions of potential customers and an infrastructure that handles logistics and trust for you.

However, it’s not a passive income model. Success on Amazon demands research, testing, and consistent optimisation. Those who treat it as a professional operation tend to see strong, sustainable results.

If you’re ready to enter ecommerce, Amazon remains one of the most powerful platforms available. Whether you’re selling your own products or reselling popular items, understanding how the system works will give you a competitive edge.

We have also written in depth articles on How Much Does Amazon Charge to Sell? and What to Sell on Amazon as well as our Amazon Hub to give you further guidance.