Top 7 Innovative Strategies to Master Selling on Amazon in 2025 (Seller Central & FBA)

The global online shopping industry is growing at a fast pace, and Amazon leads the way. Customers enjoy rapid two-day or even same-day delivery, with access to nearly any product they can imagine. Behind this success stands a powerful supply chain and logistics system, combined with a firm commitment to customer service. If you’re interested in joining this booming market and want to learn how to start selling on Amazon, keep reading.

As they say, if you can’t beat them, join them. By 2018, Amazon’s share of the US online retail market soared to an incredible 49%, capturing nearly half of all ecommerce spending. Having built decades of trust and serving over 2.5 billion shoppers each month, Amazon remains the world’s biggest online retailer. It also offers new opportunities for entrepreneurs looking to earn money online by starting their own ecommerce stores.

In this piece, we’ll explore how to make money selling on Amazon, how to use Amazon FBA to handle fulfillment, tips on pricing your products, and the financial requirements to get started.

Amazon FBA (Fulfillment by Amazon) enables sellers to list products on Amazon without managing shipping themselves. Amazon takes care of picking, packing, and dispatching orders, saving sellers significant time and effort.

With FBA, you only pay for storage, inventory management tools, and the orders Amazon fulfills, making it a flexible and scalable solution. Shipping costs for ecommerce are included in your annual fees, and there is no extra charge for Amazon Prime’s free two-day shipping, which makes the service even more attractive.

One of the key advantages of selling on Amazon is that it allows your business to grow gradually. You can start small and expand over time, especially with the help of sales forecasting software that helps you predict your future sales.

Now, let’s examine the steps you need to take to get your Amazon selling journey underway and succeed.

Begin by visiting Amazon Services to register for an Amazon Seller Account. Scroll down on the page and click the link to initiate your registration process.

At this stage, you choose whether to “Sell as a Professional” and pay $39.99 monthly, or to “Sell as an Individual”, paying just $0.99 per sale. If you’re just starting out with limited offerings, opting for the individual plan is a good choice.

You’ll need to provide personal and business details, including a credit card (Mastercard or Visa) for international charges. If you’re outside the US, Amazon will ask for your local bank information supported by ACH for wire transfers. You also need to supply your local phone number and home address for correspondence, and if applicable, a US Employer Identification Number (EIN) for LLCs or your SSN if you’re a sole proprietor.

Having set up your profile, you’re ready to learn how Amazon FBA actually functions.

To sell on Amazon FBA, start by selecting the products you want to sell online. After deciding on your products, you add detailed listings to your Amazon account, including product titles, descriptions with relevant keywords, prices, high-quality images, and other pertinent details unique to Amazon.

Next, you prepare your products for shipment, packaging them securely, and sending them to Amazon’s fulfillment centers. Once Amazon receives your inventory, they verify the quality and delivery condition before activating your product listings. Your seller name appears on your product pages, and the items are stored in Amazon’s warehouses until customers make a purchase.

When a customer orders, Amazon handles the entire fulfillment process, including shipping (often as Prime Two-Day delivery). Typically, Amazon releases your earnings 14 days after you start selling, with payments made biweekly. The biggest benefit of Amazon FBA is that you don’t have to manage logistics, returns, or customer service — Amazon handles all of that while you focus on increasing sales, offering your customers the convenience of fast Prime shipping. This makes selling on Amazon a rewarding opportunity for entrepreneurs.

Having covered what Amazon FBA is, how it functions, and its advantages, let’s look at the costs involved.

Getting started with Amazon FBA is relatively inexpensive compared to traditional retail. Whether you choose the professional plan at $39.99 per month or the individual plan at $0.99 per sale, the platform offers an accessible way to dip your toes into ecommerce.If you plan to sell more than 40 items every month, it’s recommended that you register as a professional Amazon seller by joining their FBA program.

My advice? If your monthly sales are expected to be 41 items or higher, starting with a professional seller account is the smarter choice. Conversely, if you’re selling fewer than 40 items per month, an individual seller account might be more suitable.

In addition to FBA fees, Amazon charges referral fees that vary depending on the product category. For example, books incur a 15% fee, while consumer electronics typically have an 8% fee. These fees accumulate over time, making it important to carefully calculate your costs and fit them into your overall business expenses. Leveraging Amazon’s extensive customer base is beneficial, but having a solid selling plan is key.

I suggest using an ecommerce platform that syncs seamlessly with your Amazon listings, allowing you to sell on both your website and Amazon simultaneously. Such platforms also support selling on other channels like Instagram and Facebook, helping you develop a comprehensive omnichannel marketing strategy.

Knowing which products to sell on Amazon is crucial for your success. Your profitability largely depends on the product category you choose and your ability to develop a distinctive brand. Selling common commodities like kitchen utensils or paper products makes it difficult for your brand to stand out. To rank higher in Amazon search results, you need to master Amazon SEO and optimize your listings effectively.

Understanding private-label products is essential. These are goods manufactured by one company but sold under another company’s brand. Private label products can be created via third-party producers, allowing you to sell them with your custom branding and logo.

I strongly recommend focusing on private label products because they offer several advantages. Private label sourcing simplifies the process by allowing you to concentrate on larger quantities, rather than sourcing multiple small orders from various suppliers. It also gives you better control over pricing, as you’re responsible for your Amazon listings, unlike in arbitrage or wholesale models where competition often leads to price undercutting. Additionally, private label products tend to yield a higher Return on Investment (ROI), as you can better predict sales and control your brand image, allowing you to set prices that reflect your value proposition.

To identify the best products to sell, focus on items with healthy profit margins that align with your expertise and branding. An effective way to brainstorm product ideas is to explore categories you are interested in and analyze sponsored product listings—these are often brands willing to spend heavily to promote their products, indicating strong ROI potential.

Using product research tools is critical in this process. These tools help filter through vast options to identify products that meet your specific criteria. Popular options include Jungle Scout, AMZ Scout, and Unicorn Smasher. These platforms provide valuable data to guide your decision-making, increasing your chances of selecting profitable products to sell on Amazon.

Many Amazon sellers make common mistakes when pricing their products—they either set prices too low or too high. If prices are too high, potential buyers might avoid purchasing altogether. Conversely, pricing too low can hurt your brand’s perceived quality and reduce profit margins, even if it results in more sales. Striking the right balance is crucial for long-term success.

Understanding your gross margin and Cost of Goods Sold (COGS) is key to setting competitive and profitable prices. Gross profit margin is calculated by subtracting COGS from total revenue, then dividing that figure by total revenue. For Amazon sellers, this formula typically looks like this: Gross Profit Margin = Total Revenue – COGS – Amazon Referral Fee. Aiming for a gross margin of around 20-30% after accounting for all costs and Amazon fees is generally advisable. Be sure to review referral fee structures specific to your product category and know your COGS thoroughly when developing your pricing strategy.

If you’re in a competitive market, pricing your products at or slightly below your main competitors can be a smart move. Managing storage fees is also vital; lowering prices temporarily can help maintain good standing with Amazon. There’s no universal “perfect” pricing strategy for Amazon—testing different approaches during a low-risk testing phase can help discover what works best. The goal is to find a sweet spot that balances profitability with sustainability.

You don’t need a large sum of money to start selling on Amazon. There are a few key expenses to consider when launching your business. Your initial inventory is critical. For a strong start, allocating between $150 and $500 for your first stock of products can be enough. It’s better to buy a small, diverse batch—perhaps two or three units of about 18 different items—instead of pouring all funds into a single product that might not succeed. Use tools like the Amazon FBA calculator or the Seller App to estimate long-term profitability, factoring in Amazon’s fees and operational costs.

Another essential cost is setting up your Amazon seller account. Whether you choose a professional reseller account or an individual plan, the professional account costs $39.99 per month and is advisable if you plan to sell more than 40 items. This fee should be included in your initial budget. Procuring barcode labels is also necessary; you’ll need a Global Trade Identification Number (GTIN) and Amazon’s proprietary barcode, FNSKU, to list your products. Amazon now requires these barcodes to be purchased through GS1, which involves an upfront cost of about $250 plus an annual renewal fee of $50 for around ten barcodes. Using third-party UPCs is possible but may not be compliant with Amazon’s policies, which are increasingly cracking down on such sources.

High-quality product images are a powerful sales tool. Today’s customers expect crisp, professional photos that closely resemble an in-store shopping experience. Investing in good photography can significantly impact your listings’ appeal and conversion rates.

Investing in high-quality photography is crucial because your product images play a major role in attracting customers and boosting sales. Clear, professional-looking photos help improve your product’s appeal and increase conversion rates.

For private-label sellers on Amazon, obtaining a registered trademark is a necessary step. Your branding should be distinctive, and if you’re just starting out, it’s important to work with a designer to create a professional logo and visual assets that enhance your store’s image. Strong branding helps establish credibility and trust with potential buyers.

Operating an Amazon business—whether through dropshipping or FBA—requires thorough research and careful planning. Beginners should take their time to develop a clear plan focusing on listing creation, order fulfillment, inventory management, generating reviews, and delivering excellent customer service. Although these steps are straightforward once the business is established, there are many manual tasks involved until processes can be automated.

Small business owners should understand that selling on Amazon is closely linked with social media marketing. Promoting your products across various platforms helps increase brand awareness, making your new listings more likely to succeed. Monitoring key metrics is essential for FBA sellers to ensure customer satisfaction; happy customers tend to leave positive reviews and refrain from requesting refunds. Before shipping products, make sure everything is optimized for quality and customer expectations.

Additionally, regularly refining your search terms and product listings on Amazon is vital. Using templates can streamline this process, helping keep your listings optimized for search visibility and sales conversions.

If you can’t beat the competition, joining them can be a smart move. Starting an Amazon FBA business allows you to tap into a vast customer base with relatively low risk. As Amazon’s profits surged by 20% year-over-year in Q4 2018, reaching $72.4 billion, the market size is larger than ever and continues to grow. Conduct proper product research and get started with FBA to test new ideas and reach loyal Amazon shoppers quickly.

More resources are available on StepThroughThePortal.com, including articles on top ecommerce platforms, how to sell on Facebook, and the best fulfillment services for managing Amazon shipping. Driving traffic to your Amazon store is essential, and marketing across social media channels like Twitter can significantly boost your visibility and sales.