If you want to sell on Amazon but do not know where to start, the best first step is understanding which selling model fits your situation, then setting up your account, sourcing or preparing your product, and creating a listing that actually converts. Amazon has over 300 million active customers and over 60% of its sales come from third-party sellers. The opportunity is real. But so is the complexity. At Marknology, Andrew Morgans and our Kansas City team have launched hundreds of products on Amazon since 2014, and the brands that succeed are the ones that start with a solid foundation.
As Andrew says on the Startup Hustle podcast: "Everyone wants to sell on Amazon. The ones who actually make money are the ones who treat it like a real business from day one, not a side hustle they figure out as they go."
What Are the Different Ways to Sell on Amazon?
Before you set up an account, understand the four main selling models:
- Private Label: You create your own branded product, manufacture it (usually overseas), and sell it under your brand. This is the most profitable long-term model and what Marknology specializes in.
- Wholesale: You buy existing branded products in bulk at wholesale prices and resell them on Amazon. Lower margins but less startup work.
- Retail Arbitrage: You buy discounted products from retail stores and resell them on Amazon at a markup. Hard to scale.
- Dropshipping: You list products you do not own and a supplier ships directly to the customer. Amazon allows this but margins are thin and control is limited.
The best long-term opportunity is private label because you own the brand, control the pricing, and build equity. That is what our team at Marknology focuses on exclusively.
How Do I Set Up an Amazon Seller Account?
Setting up your account is straightforward. Here is the process:
Choose Your Plan
- Individual plan: $0.99 per item sold. Good if you sell fewer than 40 items per month.
- Professional plan: $39.99 per month regardless of volume. Required for brand features, advertising, and serious selling.
If you are serious about building a business on Amazon, start with the Professional plan.
What You Need to Register
- Government-issued ID
- Tax information (SSN for individuals, EIN for businesses)
- Bank account for deposits
- Credit card for fees
- Phone number for verification
After Registration
- Complete your seller profile
- Set up your tax settings in Seller Central
- If you have a brand, apply for Amazon Brand Registry (requires a trademark)
- Familiarize yourself with Seller Central. Spend a few hours clicking around.
How Do I Choose a Product to Sell on Amazon?
Product selection is the single most important decision you will make. Here is the framework we recommend at Marknology:
- Price point: Target $20 to $60 for your first product. Below $15 and fees eat your margins. Above $75 and customers research more before buying.
- Size and weight: Smaller and lighter is better for your first product because FBA fees are lower.
- Demand validation: Use Amazon's search bar to see what people are actually searching for. If there is no demand, nothing else matters.
- Competition analysis: Look at the top 10 results for your target keyword. If they all have 5,000+ reviews and perfect listings, it is going to be very hard to break in.
- Improvement potential: Read negative reviews of existing products. Can you solve the problems customers are complaining about?
- Margin requirements: Aim for at least a 3x markup from landed cost to sale price to cover Amazon fees and still be profitable.
The best products to sell on Amazon are not the ones with the most demand. They are the ones where the existing options are mediocre and you can be meaningfully better.-- Andrew Morgans
How Do I Create My First Amazon Listing?
Your listing is your storefront on Amazon. Here is what you need:
Title
Include your primary keyword, brand name, key product attributes, and size/quantity. Keep it under 200 characters. Front-load the most important information.
Bullet Points
Five bullets that lead with benefits and include relevant keywords naturally. Do not keyword stuff. Write for humans first, algorithms second.
Images
- Main image: white background, product fills 85% of frame, 2000px minimum
- Lifestyle images: product in use by real people
- Infographic images: call out features and dimensions
- Comparison image: show how you compare to alternatives
- Packaging/unboxing image: show what the customer receives
- Aim for 7 to 9 images minimum
A+ Content
If you are brand registered, create A+ Content (enhanced brand content) below the fold. This increases conversion rate by 5 to 15%. Our content team at Marknology designs A+ Content specifically optimized for conversion. Learn more in our our listing optimization guide.
Backend Keywords
Fill in your backend search terms with additional keywords not already in your title or bullets. 250 bytes maximum. No commas. No repeated words.
Should I Use FBA or Ship Products Myself?
For most new sellers, FBA (Fulfilled by Amazon) is the best choice. Here is why:
- Prime eligibility: FBA products get the Prime badge, which dramatically increases conversion rates
- Customer trust: Shoppers trust Amazon's fulfillment and returns process
- Hands-off logistics: Amazon handles picking, packing, shipping, and returns
- Ranking benefit: FBA products tend to rank higher in search results
The downside is cost. FBA fees add $3 to $10+ per unit. But for most products, the increased sales from Prime eligibility more than offset the fees.
If you have your own warehouse operation, Seller Fulfilled Prime (SFP) lets you offer Prime shipping while handling fulfillment yourself. Marknology offers 3PL services for brands that need a hybrid approach. Learn more in our fulfillment optimization guide.
How Do I Get My First Sale on Amazon?
Getting your first sale requires driving traffic to your listing. Explore our Amazon product launch services for expert support. Here is the launch playbook:
The pressure of managing Amazon advertising without the stress is real. Drew Morgans dives into it on Business Therapy -- honest conversations about the challenges sellers actually face.
- Amazon PPC: Launch Sponsored Products campaigns targeting your main keywords. Start with $25 to $50 per day.
- Friends and family: Ask people you know to purchase your product at full price through Amazon search (not a direct link). This builds early sales velocity.
- Social media: Share your product on Instagram, Facebook, TikTok, or wherever your audience lives
- Amazon Vine: Enroll to get your first reviews from verified reviewers
- Promotions: Consider a launch coupon (10 to 15% off) to encourage first-time buyers
The goal in the first 30 days is generating sales velocity and reviews. Profit comes later. Invest in your launch.
What Are the Biggest Mistakes New Amazon Sellers Make?
After launching hundreds of products with brands since 2014, here are the mistakes we see over and over:
- Skipping product research: Choosing a product based on gut feeling instead of data
- Cheap images: Using phone photos instead of professional photography. This kills conversion rates.
- No keyword research: Writing a listing based on what you think people search for instead of what they actually search for
- Underestimating costs: Not calculating all Amazon fees before setting a price
- Going out of stock: Running out of inventory tanks your ranking and takes weeks to recover
- Ignoring PPC: Expecting organic sales from day one without any advertising investment
- No brand protection: Skipping trademark registration and Brand Registry
- Doing everything alone: Trying to manage product development, sourcing, listing creation, advertising, and customer service solo
The brands that avoid these mistakes are the ones that invest in education, tools, and often professional help from the beginning. See how Marknology clients build their Amazon presence the right way.
When Should a New Seller Hire an Amazon Agency?
Not every new seller needs an agency. But here is when it makes sense to talk to one:
- You have a product ready but no experience with Amazon's platform
- You are a brand owner with an existing business and want to add Amazon as a channel
- Your time is more valuable spent on product development than learning Amazon's complexity
- You tried selling on Amazon yourself and results were disappointing
- You want to launch correctly the first time instead of learning from expensive mistakes
At Marknology, we work with brands at every stage. Some come to us before their first listing. Others come after a year of struggling alone. The earlier you build the right foundation, the faster you grow. Book a free strategy call with Andrew Morgans to talk about where you are and what you need.
Frequently Asked Questions
How much does it cost to start selling on Amazon?
A realistic budget for a private label product launch is $3,000 to $10,000. This covers product sourcing and manufacturing ($1,000 to $5,000), professional photography ($500 to $1,500), Amazon Professional seller account ($39.99 per month), initial advertising budget ($500 to $2,000), and UPC codes and Brand Registry fees. Starting with less is possible but limits your product quality and launch effectiveness.
How much money can you make selling on Amazon?
Revenue varies enormously by product and category. The average third-party Amazon seller makes $1,000 to $25,000 per month in revenue. Top sellers make $100,000+ monthly. Profit margins after all Amazon fees typically range from 15 to 30 percent. Success depends on product selection, listing quality, and ongoing optimization.
Do I need a business license to sell on Amazon?
Amazon does not require a business license to create a seller account. You can sell as an individual. However, a business entity (LLC or corporation) provides liability protection and tax advantages. Andrew Morgans and Marknology recommend forming an LLC before launching on Amazon.
How long does it take to start making money on Amazon?
Most new products take 3 to 6 months to become consistently profitable after accounting for launch costs and advertising investment. The first 30 to 60 days typically require investment in PPC and reviews. By months 3 to 4, well-launched products should cover their costs. By month 6, most reach profitability.
What is the best product to sell on Amazon for beginners?
The best starter product is small, lightweight (to minimize FBA fees), priced between $20 and $60, in a category with moderate competition (not dominated by major brands), and solves a clear customer need. Look for products where the top competitors have weak listings, limited images, or mediocre reviews. That signals an opportunity.
Is it too late to start selling on Amazon?
No. Amazon's marketplace continues to grow every year. While competition has increased, new niches and product opportunities emerge constantly. The sellers who succeed today are the ones who treat Amazon as a professional brand-building platform, not a get-rich-quick scheme. Marknology has launched successful new brands as recently as this year.
Can I sell on Amazon without inventory?
Yes, through dropshipping or Amazon's Merch on Demand (print-on-demand) program. However, margins are very thin and you have limited control over product quality and shipping times. For serious brand building, holding inventory (via FBA) is the recommended approach.
Ready to Fix This?
Talk to our team. No pitch deck, no pressure. Just honest advice from people who do this every day.
Book a Free Strategy CallAndrew Morgans is the founder of Marknology, a Kansas City-based Amazon brand accelerator. He hosts the Startup Hustle podcast and has helped hundreds of brands grow on Amazon since 2014.
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