Amazon New Seller Guide 2026: Updated Rules, Fees, and Strategies

Starting an Amazon business in 2026 offers tremendous opportunity, but the rules, fees, and competitive landscape have evolved significantly. This comprehensive guide covers everything new sellers need to know, from account setup to first sale and beyond. At Marknology, Andrew Morgans has helped hundreds of brands launch and scale on Amazon from our Kansas City headquarters, and this guide distills that experience into actionable steps.

Getting Started on Amazon in 2026

Amazon remains the most powerful ecommerce platform for new sellers, with over 300 million active customers and a built-in infrastructure for fulfillment, advertising, and customer service. Here is what you need to get started:

• Business entity: While not required, forming an LLC or corporation protects your personal assets and adds professionalism
• Tax identification: You need an SSN (individual) or EIN (business) for tax reporting
• Bank account: A business bank account for receiving Amazon payouts
• Product sourcing: Manufacturer relationships, wholesale accounts, or private label products
• Budget: Plan for $2,000-$10,000 minimum to launch properly including inventory, photography, and initial advertising

The barrier to entry on Amazon is lower than ever, but the bar for success is higher. Preparation and strategy separate successful launches from expensive failures.

Seller Account Types and Costs

Amazon offers two seller account types:

Individual Seller Account

• No monthly fee
• $0.99 per item sold (in addition to other fees)
• Limited to basic selling features
• Cannot run advertising campaigns
• Best for: Testing the waters with fewer than 40 items/month

Professional Seller Account

• $39.99/month subscription
• No per-item fee
• Full access to advertising, Brand Registry, and advanced tools
• Eligible for the Buy Box
• Best for: Anyone serious about building an Amazon business

Our recommendation: Start with a Professional account. The advertising access alone is worth the $39.99/month, and you need it to be competitive from day one.

2026 Fee Structure Breakdown

Understanding Amazon's fee structure is critical for profitability. Here are the main fees in 2026:

Referral Fees

Amazon charges a percentage of each sale, varying by category:

• Electronics: 8%
• Home and Kitchen: 15%
• Beauty and Personal Care: 8-15%
• Clothing and Accessories: 17%
• Sports and Outdoors: 15%
• Toys and Games: 15%
• Grocery: 8-15%

FBA Fees (if using Fulfillment by Amazon)

• Fulfillment fee: $3.22-$8.00+ per unit depending on size and weight
• Monthly storage: $0.87/cubic foot (Jan-Sep), $2.40/cubic foot (Oct-Dec)
• Long-term storage: Additional surcharge for inventory stored 181+ days
• Inbound placement fee: New in 2024, charges for Amazon distributing inventory across fulfillment centers

Understanding fees is the foundation of Amazon profitability. I have seen too many new sellers price their products without accounting for all Amazon fees, then wonder why they are losing money. Do the math before you source. - Andrew Morgans, Marknology

The Marknology team helps new and established brands model their unit economics to ensure profitability from the start.

Product Selection and Research

Choosing the right product is the most important decision you will make as a new seller. Here is a framework:

Product Criteria

• Price point: $20-$75 is the sweet spot. Enough margin after fees, low enough for impulse purchases.
• Size and weight: Smaller, lighter products have lower FBA fees and shipping costs
• Competition level: Look for categories where top listings have fewer than 500 reviews
• Demand: Use tools like Helium 10 to estimate monthly search volume and sales
• Differentiation potential: Can you improve on existing products? Better materials, features, or bundling?
• Seasonality: Evergreen products provide consistent year-round revenue

Research Tools

• Helium 10: Comprehensive suite for keyword research, competitor analysis, and sales estimation
• Jungle Scout: Product database and opportunity scoring
• Amazon Best Sellers: Free tool showing top sellers by category
• Amazon Brand Analytics: Available to brand-registered sellers for search and purchase data

Creating Your First Listings

Your listing is your storefront. It needs to rank in search and convert visitors to buyers:

Title

• Front-load primary keywords
• Include brand name, product type, key features, and size/quantity
• Stay under 200 characters

Bullet Points

• Lead each bullet with a capitalized benefit statement
• Include relevant keywords naturally
• Address common customer questions and concerns
• Use all 5 bullet points

Images

• Main image: white background, product only, high resolution
• 6+ additional images: lifestyle, infographic, size reference, packaging, and feature callouts
• At least one video for brand-registered sellers

Backend Keywords

• Add relevant keywords not already in your title and bullets
• Include Spanish translations of key terms
• Add common misspellings and alternate names

Marknology's listing optimization process has been refined over years of managing hundreds of brands. We optimize for both traditional search and Amazon's AI-powered Rufus.

FBA vs FBM: Fulfillment Options

Choosing the right fulfillment method affects your costs, visibility, and customer experience:

Fulfillment by Amazon (FBA)

• Pros: Prime badge, fast shipping, customer service handled by Amazon, higher Buy Box win rate
• Cons: Higher fees, less control over inventory, long-term storage fees
• Best for: Most products, especially items priced $15+

Fulfilled by Merchant (FBM)

• Pros: Lower fees, more inventory control, no FBA storage limits
• Cons: No Prime badge (unless Seller Fulfilled Prime), lower Buy Box win rate, you handle shipping and returns
• Best for: Oversized items, slow-moving products, or as FBA backup

For most new sellers, FBA is the right choice. The Prime badge alone increases conversion rates by 30-50%. Marknology's 3PL services can help with FBA prep, labeling, and inventory management to reduce your workload.

Amazon Advertising for New Sellers

Advertising is essential for new sellers to gain visibility. Here is a starter framework:

Start with Sponsored Products

• Create an automatic targeting campaign to discover relevant keywords
• Set a daily budget of $20-$50 to start
• Let it run for 2 weeks to gather data

Build Manual Campaigns

• Use data from auto campaigns to identify high-performing keywords
• Create manual exact match campaigns for your top keywords
• Add phrase match campaigns for discovery

Scale Gradually

• Increase budgets on campaigns with strong ACOS (under 30% for most categories)
• Add Sponsored Brands campaigns once you have 3+ products
• Test Sponsored Display retargeting after building traffic volume

Expect to spend 25-35% of revenue on advertising in your first 3-6 months. This investment builds ranking and review velocity that reduces your dependence on ads over time.

Common New Seller Mistakes to Avoid

After helping hundreds of brands launch on Amazon, Andrew Morgans and the Marknology team have seen these mistakes repeatedly:

• Underpricing: Not accounting for all Amazon fees and advertising costs before setting prices
• Poor images: Using supplier photos instead of investing in professional product photography
• Ignoring reviews: Not actively requesting reviews or addressing negative feedback
• No advertising: Expecting organic sales without advertising investment
• Too many SKUs: Launching 20+ products instead of focusing on 3-5 and doing them well
• Skipping Brand Registry: Missing out on A+ Content, Brand Store, and brand protection tools
• Inventory mismanagement: Either running out of stock or overstocking and paying storage fees
• Going it alone: Not seeking expert guidance when the stakes are high

The most expensive mistake on Amazon is trying to figure everything out by yourself. The learning curve costs money in the form of wasted ad spend, lost sales, and missed opportunities. The brands that invest in expertise from the start get profitable faster. - Andrew Morgans, Marknology

Visit our Media Hub for more educational content, and explore how the Marknology Brand Accelerator helps new and growing brands accelerate their Amazon success. Andrew Morgans also shares startup and ecommerce insights on Startup Hustle.

Frequently Asked Questions

How much does it cost to start selling on Amazon?

A Professional Seller account costs $39.99/month. Total startup costs including inventory, product photography, and initial advertising typically range from $2,000-$10,000 depending on your product and category.

Can I sell on Amazon without inventory?

Yes, through Amazon FBA where Amazon stores your inventory, or through dropshipping (with restrictions) and print-on-demand. However, FBA with your own inventory typically provides the best margins and customer experience.

What are Amazon referral fees in 2026?

Referral fees range from 6-45% depending on category, with most categories at 8-15%. Common categories: Electronics (8%), Home and Kitchen (15%), Clothing (17%), Beauty (8-15%).

How long does it take to start making sales on Amazon?

Most new sellers see their first sales within 1-4 weeks of listing products. Building consistent, profitable sales typically takes 3-6 months of optimization and advertising.

Do I need a business license to sell on Amazon?

Amazon does not require a business license to open a seller account, but you need a valid tax ID (SSN or EIN). Check your state and local requirements for business licensing.

Should I hire an Amazon agency as a new seller?

It depends on your budget and experience. Agencies like Marknology can accelerate your growth and help avoid costly mistakes, but the investment needs to match your business stage. Many brands engage agency support once they reach $10K-50K in monthly revenue.

What products should I avoid selling on Amazon?

Avoid heavily restricted categories (supplements, pesticides, hazardous materials) as a beginner. Also avoid categories dominated by Amazon's own brands, extremely low-price products (under $15), and products requiring complex compliance.

Best, Drew