How to Start an Ecommerce Business on Amazon

Mike Renaldi

10.08.23

9 minute read

Starting an Amazon store is an exciting way to get started in the world of digital retail. In fact, as of June 2022, Amazon has accounted for 37.8% of the entire U.S. ecommerce market.¹

In this guide, we’ll go through the A to Z of starting an Amazon ecommerce store, from storefront setups to navigating the Amazon ecommerce platform. We’ll also introduce you to Wise Business, a low-cost account perfect for global startups.

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Wise is a popular method for Amazon businesses to get paid and save along the way

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Wise helps Amazon businesses receive payments by simply adding their account details to their account
Most importantly, if you're sending international mass payouts, then Wise could help. We offer the mid-market exchange and transparent costs, which has attracted over 16 million users to hold, receive, and send money with Wise and save along the way

How to Open a Store on Amazon

In this section, we’ll walk you through the step-by-step process of starting your Amazon ecommerce business.

1. Choose a plan for your Amazon business

When you decide to start an Amazon store, one of your first thoughts might be, "What's the best plan for my business?" Amazon provides two main selling plans, which include the Individual and Professional plans.³

If you’re just starting out or planning to sell less than 40 items a month, the Individual plan is the smarter choice. You'll be charged a per-item fee of $0.99 and no monthly subscription cost, which comes in quite handy when you’re testing the waters.

But if you have higher sales volume ambitions and are confident in your venture, the Professional plan is the better choice. With a flat monthly subscription fee of $39.99, this plan allows you to sell unlimited items, coming with added features to help your store prosper.

These features include advertising capabilities, top placement on product detail pages, advanced selling tools like reports, and being able to sell products in restricted categories.

Luckily, you won’t have to stress too much about your choice, as sellers can switch between these two plans whenever they want to.

Learn More: Best Bank Accounts for Amazon Sellers

2. Register with the Amazon Brand Registry

Once you've established your brand on Amazon, there’s nothing that could shatter your confidence more than finding copycats trying to profit from your success and hard work. That’s why signing up with the Amazon Brand Registry is such an important step in the process.⁴

Having your name up on the registry lets you gain more control over your product listings and make you better equipped to take quick and proper action against counterfeit listings. It additionally offers a suite of features to help you build your brand and improve conversion and discoverability: product videos, Amazon Live, and Virtual Bundles, to name a few.⁵

But before you enroll in the Brand Registry, there are a couple of requirements to meet.⁶ You need to have an active registered trademark in each country where you wish to enroll, have the trademark owner submit your application, and later on, provide a list of product categories your brand will be listed in.

The registration process involves a few other steps, such as identity verification, but Amazon guides you through the journey.

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3. Create your Amazon ecommerce store

Now that all the tedious stuff is out of the way, the real fun part begins - starting an Amazon storefront. At this stage, you're shaping the digital 'face' of your business and setting the stage for customer interactions.

Every store needs to have a name to represent your business's digital identity. While it can really be anything under the sun, keep in mind that it also impacts how potential customers perceive your brand. It should ideally be easy to pronounce and remember and align with the products you're selling.

Once you’re ready to list your products, make sure to provide detailed descriptions and high-quality images and use competitive pricing. Keep the product title short and informative, as this could have a huge impact on your visibility among Amazon's neverending product listings.

Don’t forget to fully utilize both the Amazon Storefront and Amazon Store features to support your brand.⁷ The Amazon Store is your brand’s homepage within Amazon - a multipage store with a unique Amazon URL. On the other hand, Amazon Storefronts are pages that showcase top products from small- and medium-sized Amazon sellers. Making sure you’re present with both can do wonders for visibility.

Setting up Wise account details on Amazon
1. Click Settings > Account Info > Payment Info > Bank Account Info
2. Add or replace bank details. If you’re replacing existing bank account details, select Replace. If you’re adding new bank account details, select Assign
3. Select Add new deposit method
5. Add your bank account details
6. Amazon US: Add your account number and routing number (ACH if you have 2) to receive electronic payments only (Click here for other locales)
7. Verify your bank account details. This is the account number you used when initially setting up your Amazon seller account
8. Save your details. You can do this by clicking Set deposit method
9. All set. Now you can withdraw your earnings into your Wise account
Most importantly, if you're sending international mass payouts, then Wise could help. We offer the mid-market exchange and transparent costs, which has attracted over 16 million users to hold, receive, and send money with Wise and save along the way

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4. Customize your Amazon ecommerce store

The Amazon store builder has an array of customization options so you can create a virtual store layout that truly reflects your brand. Customization is where your brand really comes to life, as your visual appeal will help you attract target customers. Think about how you want your customers to navigate your store and what kind of experience you want to offer them.

Layout is one of the most important aspects to consider. Amazon provides multiple templates that give you a foundation to work with, but how you structure your listings are all up to you with the Tile Builder feature. The key is to build an easy-to-navigate and attractive store layout. Products should be clearly categorized, where items that typically sell together are placed close by. This doesn’t just make the user experience better, but it also encourages cross-selling.

5. Upload your products

When it comes time to upload your products, you’ll need to begin by categorizing them correctly. There is an extensive list of categories and subcategories on Amazon that helps customers find exactly what they need.

Each product requires a product ID (like an ISBN, for example). If your product doesn’t have one, you might need to request an exemption or apply for a GTIN (Global Trade Item Number). You’ll then fill in other specifics like the product title, brand, price, and detailed product description.

When describing your products, you’ll want to be transparent and thorough, telling a story about each of them and why they’re beneficial and unique. This helps customers connect on an emotional level, making them more likely to commit to a purchase. And since Amazon is a search engine just like Google, make sure to include the right keywords in your titles and descriptions to boost visibility.

Of course, your customers will want to visualize those products too. 83% of US smartphone users found product images “very” and “extremely” influential when buying a product. Other than high-quality product photos, you could even think about using infographics and videos (if available).⁸ 96% of marketers say that videos have helped increase user understanding of their product or service, something which can definitely impact buying decisions.⁹

The more thorough and transparent you are with your product information, the higher your chances of winning customers’ trust.

6. Add your Amazon store pages

With your Amazon store, you aren’t just limited to one page. Creating and adding pages will further customize your online shop and provide customers with a smoother, well-structured buying journey. According to Amazon, stores with three or more pages have an 83% higher dwell time and 32% higher sales per visitor. ¹⁰

Each page should have a clear focus – if you’re a lifestyle store, you might have separate subcategory pages for ‘Mugs,’ ‘Rugs,’ or ‘Candles,’ depending on your inventory. This careful categorization will help customers find what they’re looking for quickly and efficiently.

To start adding pages, head over to the “Store Builder” option in your Amazon Seller Central account, and select “Add a Page.” Thanks to Amazon’s drag-and-drop feature, it’s all intuitive and straightforward. Arrange your pages as you see fit, and Amazon will automatically make a navigation menu for your store.

On each of these new pages, you get the opportunity to use widgets like ‘Product Grids,’ Image Thumbnails,’ or ‘Featured Deals’ to help showcase your products in an engaging way.

7. Publish your Amazon ecommerce store

After all that hard work, there’s one last thing to do – publish your Amazon ecommerce store and get it approved. At this point, your store is essentially holding its ribbon-cutting ceremony and opening its doors to millions of Amazon shoppers around the world.

But before you hit the ‘Publish’ button, it’s worth double-checking everything to make sure product listings are complete and accurate, visuals are displayed correctly, and the organization on each page is logical. Check that everything is functioning and looking as it should across different device screens.

It might even be a good idea to ask for third-party feedback. A fresh pair of eyes could be able to see things you’ve overlooked.

Tips for Selling on Amazon

Navigating the Amazon marketplace can be overwhelming, especially if you’re new to the landscape. Here, we’ll answer some key questions and provide useful tips you’ll need to know to become a pro.

Should you sell on Amazon?

With over 150,000 million active sellers on the platform, choosing to sell on Amazon could open up enormous opportunities, but can comes with its own unique set of challenges.¹¹

Pros:

Access purchase-ready customers: Not only does Amazon have a massive customer base, but they are well past the awareness phase and know what product they want.

Established trust: Amazon is a globally recognized and trusted brand, allowing you to leverage its credibility and put customers' trust issues at ease.

Fulfillment by Amazon (FBA): With Amazon's FBA program, Amazon takes responsibility for storage, packaging, and shipping – a complicated part of the ecommerce business.

Visibility boost: Amazon’s comprehensive search and recommendation system can significantly boost your product visibility and potentially your sales.

Cons:

High competition: Selling on a platform with so much customer traffic also means there are many sellers offering similar products. It could be challenging to stand out amongst your competitors.

Fees: Amazon charges various types of fees (listing, selling, referral, and FBA fees), which could eat into your profit margins.

Limited brand building: Amazon controls the customer and brand experience, limiting your ability to brand your online store. You can display certain branding materials like your logo but can’t link to a website or social media.

Dependence on the platform: Building your business on Amazon means you're reliant on the platform's rules, which can change. Any changes in policy can directly impact your operations and sales.

Some other features Wise Business users love
Account Software Integration: QuickBooks, FreshBooks, Xero, Sage, and Wave
Batch payments offer the chance to send up to 1000 invoices in a single click
The Most International Account: Hold 40+ currencies at once
Transparency: Wise Business is trying to get rid of all your business account fees
The Wise API gives businesses the chance to automate and schedule mass payments
Most importantly, if you're sending international mass payouts, then Wise could help. We offer the mid-market exchange and transparent costs, which has attracted over 16 million users to hold, receive, and send money with Wise and save along the way

Expanding beyond Amazon

Relying solely on Amazon as your sales channel can seem like a natural solution, but it can also expose your business to certain risks. Say you've developed a novel product, and it's seeing great sales on Amazon. There's nothing stopping Amazon from noticing this and beginning to produce a similar product under its own banner. That's why you need to diversify your sales channels.

Consider using other ecommerce platforms, your own website, or even brick-and-mortar retail outlets. This strategy will safeguard your business by spreading risk and let you reach a broader customer base and build a solid brand presence outside of Amazon's ecosystem.

Amazon Dropshipping: Yes or No?

Dropshipping on Amazon means you can sell products without needing to maintain an inventory, getting rid of the burden of storage and logistics. It also gives you the flexibility to sell a wider range of products and have suppliers directly ship to your customers. On the downside, this mode might limit your control over shipping processes, which could affect your brand's delivery standards and customer experience.

Alternatively, you can go with services like Fulfillment by Amazon (FBA) that can provide a more reliable logistical solution. With FBA, Amazon handles your storage and shipping needs, often ensuring faster delivery times. But it's worth highlighting that using FBA could blend your brand somewhat into the broader Amazon ecosystem.

Exploring the Amazon Demand-Side Platform

Amazon’s Demand-Side Platform lets businesses buy display and video ads on and off Amazon. It’s similar to Google Ads, where these ads help brands attract traffic. Using the DSP, you can get insights into consumer data and target them a lot better.

It also breaks free from the confines of traditional advertising norms. It smartly uses data like shopping and browsing habits to help you get your product seen by the right audience at the right time.

The Wise Business Account for Amazon Funds

To wrap things up, let’s explore a smart and efficient way to get your Amazon funds right into your account – using Wise Business.

Many Amazon sellers globally vouch for Wise and its transparent, low fees, and ability to receive funds in over 9 currencies. You’re also getting a seamless way to hold funds in over 40 currencies and can make transfers between them all at the mid-market exchange rate, maximizing your returns.

Add in accounting integrations and other handy features, and you can see why Wise Business might just be an Amazon seller’s best friend! So, as you start your Amazon store business, make the best financial decision and sign up for Wise Business.

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Learn More:

Amazon Pay Review for US Businesses (2024)
Online Business Ideas for 2024

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