Amazon Seller Requirements 2023: All You Need to Know

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Amazon has become one of the most popular online marketplaces worldwide, offering a vast array of products and services.

With millions of customers visiting the site daily, Amazon provides an incredible opportunity for entrepreneurs and businesses to reach a massive audience.

However, before you can start selling on Amazon, it’s essential to understand the platform’s seller requirements.

This comprehensive guide will walk you through all you need to know to begin your journey as an Amazon seller.

Eligibility Criteria for Becoming an Amazon Seller

Can anybody be an Amazon seller?

Yes, and to become an Amazon seller, you must meet specific eligibility criteria.

These requirements ensure that only legitimate businesses can operate on the platform and that customers have a positive experience.

1. Age Requirement: You must be at least 18 years old to open an Amazon seller account.
2. Location Requirements: Amazon accepts sellers from various countries, but some locations may have additional requirements or restrictions.
3. Valid Bank Account and Tax Identification: You must provide a valid bank account from an eligible country and a tax identification number (TIN) or Social Security number (SSN) for tax purposes.
4. Active Phone Number: A working phone number is necessary for communication with Amazon and customers.
5. Compliance with Amazon’s Policies: As a seller, you must adhere to Amazon’s policies, including intellectual property, counterfeit products, restricted products, and customer communication.

Choosing the Right Amazon Seller Plan

Amazon offers two primary seller plans: Individual and Professional. Each plan has different fees and features, so it’s essential to choose the one that best fits your needs.

Individual Seller Plan

• Fees and Costs: Individual sellers pay a per-item fee of $0.99 for each product sold, in addition to other applicable fees.
• Ideal for Small-Scale Sellers: This plan is best for those who plan to sell fewer than 40 items per month and have a limited product range.

Professional Seller Plan

• Monthly Subscription Fee: Professional sellers pay a flat fee of $39.99 per month, regardless of the number of items sold.
• Ideal for Large-Scale or High-Volume Sellers: This plan is better suited for sellers who expect to sell more than 40 items per month or have a more extensive product range.

Product Listing and Category Approval

Creating a product listing is an essential step in the selling process. A well-optimized listing will help your products rank higher in search results and attract potential customers.

Creating a Product Listing

• Product Title, Description, and Images: Your product title should be clear and concise, while the description should provide accurate and relevant information. High-quality images are crucial for showcasing your product and capturing the customer’s attention.
• Product Identifiers (UPC, EAN, or ISBN): Amazon requires a unique product identifier, such as a Universal Product Code (UPC), European Article Number (EAN), or International Standard Book Number (ISBN), to list your products. These identifiers help customers find your items and prevent duplicate listings.

Restricted Categories and Approval Process

• Examples of Restricted Categories: Some product categories, such as automotive, clothing, and health & personal care, may require additional approval before you can list your items.
• Steps to Obtain Approval: To request approval, log in to your Seller Central account, navigate to the “Inventory” tab, and select “Add a Product.” Then, follow the prompts to complete the application process.

Keep in mind that approval may take several days, and Amazon may require additional documentation, such as invoices or safety certifications.

Shipping Options and Fulfillment

As an Amazon seller, you can choose between Fulfillment by Merchant (FBM) or Fulfillment by Amazon (FBA) to ship your products to customers.

Fulfillment by Merchant (FBM)

• Shipping Directly to Customers: If you choose to handle shipping yourself, you’ll be responsible for packing and shipping products directly to customers. You’ll need to set your shipping rates and ensure that orders are shipped promptly.
• Managing Inventory and Shipping Rates: With self-fulfillment, you’ll need to manage your inventory levels and update your product listings accordingly. You’ll also be responsible for setting shipping rates based on the size, weight, and destination of your shipments.

Fulfillment by Amazon (FBA)

• Advantages and Costs: FBA is a service where Amazon handles storage, packing, and shipping on your behalf. By using FBA, your products become eligible for Amazon Prime and other Amazon services, potentially increasing your sales.

However, FBA comes with additional fees, such as storage and fulfillment fees, which vary based on the size and weight of your products.

• Shipping Inventory to Amazon Fulfillment Centers: To use FBA, you’ll need to send your inventory to one of Amazon’s fulfillment centers. You’ll need to create a shipment plan in your Seller Central account, prepare your products according to Amazon’s guidelines, and send them to the designated fulfillment center.

Maintaining Good Account Health and Performance Metrics

To succeed as an Amazon seller, it’s crucial to maintain good account health by monitoring and improving your performance metrics. Amazon evaluates sellers based on several key metrics:

1. Order Defect Rate (ODR): ODR is the percentage of orders with negative feedback, an A-to-Z Guarantee claim, or a credit card chargeback. To maintain good account health, your ODR should be below 1%.

2. Pre-fulfillment Cancel Rate (PFCR): PFCR is the percentage of orders canceled by the seller before shipment. A PFCR below 2.5% is considered acceptable.

3. Late Shipment Rate (LSR): LSR is the percentage of orders shipped after the expected ship date. Aim for an LSR below 4% to maintain good account health.

Tips for maintaining good performance metrics include promptly shipping orders, accurately describing products, and providing excellent customer service.

Navigating Amazon’s Seller Central

Overview of Seller Central Features

Seller Central is the main hub for managing your Amazon business, providing a variety of tools and resources to help you optimize your operations and grow your sales.

Some of the essential features include:

• Sales Reports: Access detailed sales reports to analyze your sales trends and performance, helping you make informed decisions about your product offerings, pricing, and marketing strategies.
• Performance Metrics: Monitor key performance metrics, such as Order Defect Rate (ODR), Pre-fulfillment Cancel Rate (PFCR), and Late Shipment Rate (LSR), to maintain good account health and identify areas for improvement.
• Inventory Management: Use Seller Central’s inventory management tools to keep your product listings up-to-date, track inventory levels, and set restock alerts to ensure you have enough stock to meet customer demand.
• Advertising and Promotion Options: Utilize Amazon’s advertising solutions, such as Sponsored Products and Sponsored Brands, to increase product visibility and boost sales. Additionally, create promotions and deals to incentivize customers to purchase your products.

Monitoring Sales and Performance

Keeping a close eye on your sales and performance metrics is crucial for identifying trends and areas that need improvement.

Analyzing this data allows you to make informed decisions about your product offerings, pricing, and marketing strategies.

Key aspects to monitor include:

• Sales Volume: Track your overall sales volume and individual product sales to identify the best-selling items and those that may need additional promotion or repricing.
• Conversion Rates: Monitor your product conversion rates to identify opportunities for optimizing your product listings, such as improving images or enhancing product descriptions.
• Customer Feedback: Review customer feedback and ratings to identify potential issues with your products or customer service and implement necessary improvements.

Managing Inventory and Orders

Effective inventory and order management are essential for maintaining good performance metrics and ensuring customer satisfaction.

Seller Central offers various tools and features to help you in this regard:

• Inventory Management: Keep your product listings up-to-date by regularly updating inventory levels and using restock alerts to ensure you have enough stock to meet customer demand.
• Order Processing: Track and manage your orders efficiently to maintain a low Late Shipment Rate (LSR) and Pre-fulfillment Cancel Rate (PFCR).
• Shipping Settings: Configure your shipping settings to provide accurate shipping rates and delivery time estimates to customers.

Accessing Resources and Support

Seller Central offers various tutorials and support options to help you grow your business and navigate the Amazon marketplace:

• Seller University: This educational platform provides a wealth of content, including video tutorials, articles, and webinars, to help you learn about Amazon’s selling tools, policies, and best practices.
• Seller Support: If you need assistance or have questions, you can access Amazon’s Seller Support through Seller Central. This includes help with account issues, product listings, and order management.
• Community Forums: Engage with other Amazon sellers in the community forums to ask questions, share experiences, and learn from other’s expertise.

Understanding Amazon’s Fees and Charges

Selling on Amazon involves various fees, so it’s essential to understand them to accurately calculate your profits and make informed business decisions.

1. Referral Fees: Amazon charges a referral fee for each item sold, which is a percentage of the product’s sale price (usually between 6% and 45%, depending on the category).
2. Subscription Fees: As mentioned earlier, Professional sellers pay a monthly subscription fee of $39.99, while Individual sellers pay $0.99 per item sold.
3. FBA Fees: If you choose to use Fulfillment by Amazon, you’ll incur additional fees for storage and fulfillment. These fees vary based on the size, weight, and duration of storage for your products. You can use the Amazon FBA calculator extension to estimate these costs.
4. Other Miscellaneous Fees: Additional FBA seller fees may apply, such as closing fees for media items, high-volume listing fees for Professional sellers, and removal or disposal fees for FBA inventory.

Adhering to Amazon’s Seller Policies

To maintain a successful Amazon business, you must adhere to the platform’s seller policies. Failure to comply may result in account suspension or termination.

1. Intellectual Property and Counterfeit Products: Amazon has strict policies against selling counterfeit products or infringing on intellectual property rights, such as trademarks, copyrights, or patents.

Ensure that your products are genuine and that you have the necessary permissions to sell them.

1. Restricted Products: Amazon prohibits the sale of certain products, such as drugs, firearms, and hazardous materials. Familiarize yourself with the Amazon restricted product list to avoid listing prohibited items.
2. Product Listing Policies: Your product listings must accurately describe your items and follow Amazon’s guidelines for titles, images, and content. Misleading or inaccurate listings can result in account suspension.
3. Customer Communication and Privacy: You must respect customer privacy and follow Amazon’s communication guidelines when interacting with customers. Do not use customer information for any purpose other than fulfilling orders and providing customer service.

Amazon Seller Requirements 2023: Seller Checklist

1. Create Your Account on Amazon Seller Central:
   • Go to Amazon Seller Central and click on the “Sign Up” button.
   • Complete the necessary fields and create your login details.
2. Complete Your Amazon Seller Registration:
   • Log in with your Amazon seller login details.
   • Complete the registration process by providing the required information.
3. Choose Your Selling Plan:
   • Decide whether you want to be an Amazon individual seller or an Amazon FBA seller.
   • Understand the different Amazon seller fees associated with each plan.
4. Prepare Your Products:
   • Research and select the products you want to sell on Amazon.
   • Make sure your products comply with Amazon’s guidelines and requirements.
5. List Your Products:
   • List the products you want to sell on Amazon.
   • Include all necessary product information and details.
6. Understand the Shipping Options:
   • If you’re an Amazon FBA seller, use the Amazon FBA login to manage your inventory and shipments.
   • Alternatively, if you handle shipping yourself, make sure you understand the shipping process and requirements.
7. Prepare for Customer Questions and Support:
   • Be ready to answer customer questions and provide support as needed.
   • Understand Amazon’s policies and guidelines for customer service.
8. Learn How to Sell on Amazon for Beginners:
   • If you’re new to selling on Amazon, take advantage of resources and guides available to help you learn how to sell on Amazon for beginners.
   • Consider seeking advice from experienced sellers or joining online communities for support and guidance.

Amazon Seller Requirements – Summary

Selling on Amazon is an extremely lucrative opportunity if you understand the platform’s seller requirements and follow best practices.

By familiarizing yourself with eligibility criteria, choosing the right seller plan, creating optimized product listings, selecting the best fulfillment method, maintaining good account health, and adhering to Amazon’s policies, you’ll be well-equipped to start your journey as a successful Amazon seller.

Now that you have all the necessary information, it’s time to take action and start selling on Amazon.

Remember, success on the platform takes time, effort, and dedication. Stay focused, learn from your experiences, and continually adapt your strategies to grow your Amazon business.

Amazon Seller Requirements – FAQs

What are the requirements to be an Amazon seller?

To be an Amazon seller, you’ll need to complete the Amazon seller account sign up process. This involves choosing whether you want to be an Amazon individual seller or a professional seller, and then completing the registration process. You’ll need to provide some documents required for verification, and you’ll also need to decide whether you want to use Amazon FBA (Fulfillment by Amazon) or the Merchant Fulfillment Network to handle the shipping and customer service for your products.

Is it hard to get approved for an Amazon seller account?

Setting up an Amazon seller login account is a relatively quick process, typically taking less than an hour. However, the time it takes to become fully operational depends on factors such as obtaining approval for restricted categories, creating product listings, and setting up your fulfillment method.

The approval process for an Amazon seller account can vary depending on a few factors, such as the products you sell and the information you provide during the registration process. However, as long as you have all the necessary documents and information, the sign-up process should be straightforward. If you have any questions or need help, you can always reach out to Amazon Seller Support for assistance.

Can I sell on Amazon as an international seller?

Yes, Amazon accepts sellers from various countries, although some locations may have additional requirements or restrictions. Ensure you have a valid bank account from an eligible country and a tax identification number (TIN) or Social Security number (SSN) for tax purposes.

Do I need a license to become an Amazon seller?

While you don’t necessarily need a specific license to become an Amazon seller, you may need to obtain certain licenses or permits depending on the products you sell and the location of your business. It’s important to research the specific requirements for your business and make sure you’re in compliance with all relevant laws and regulations. Additionally, you should be aware of the Amazon individual seller fees and Amazon FBA fees, as these can affect your overall costs and profitability.

What are the fees associated with selling on Amazon?

Amazon charges various fees, including referral fees (a percentage of the sale price), subscription fees ($39.99 per month for Professional sellers or $0.99 per item for Individual sellers), and fulfillment fees if using Fulfillment by Amazon (FBA).

Additional fees may apply in specific situations, such as closing fees for media items and high-volume listing fees for Professional sellers.

How do I handle customer returns on Amazon?

Amazon’s return policy requires sellers to accept returns within 30 days of receipt for most items. For FBA orders, Amazon handles the return process on your behalf. For self-fulfilled orders, you are responsible for providing a return address, issuing refunds, and managing the returned inventory.

Make sure to follow Amazon’s return policies and guidelines to maintain good account health.

How can I improve my product rankings on Amazon?

To improve your product rankings on Amazon, focus on optimizing your product listings by providing clear and concise titles, accurate and informative descriptions, and high-quality images. Additionally, encourage customers to leave reviews and maintain good performance metrics.

You can also utilize Amazon’s advertising solutions, such as Sponsored Products and Sponsored Brands, to increase product visibility and boost sales.

Can I sell any type of product on Amazon?

Amazon has restrictions on certain types of products, such as hazardous materials, firearms, and prescription drugs. Additionally, some categories require approval before you can list products. Make sure to review Amazon’s guidelines and policies for selling before listing your products.

What are the Amazon seller requirements for product images?

Amazon has specific requirements for product images, such as using a white background, having a minimum resolution of 1000 x 1000 pixels, and including only the product being sold in the image. Make sure to follow these requirements to ensure your products are presented correctly and attractively to potential customers.

How do I maintain good account health as an Amazon seller?

To maintain good account health, focus on providing excellent customer service, promptly shipping orders, and accurately describing your products.

Monitor and maintain good performance metrics, such as Order Defect Rate (ODR), Pre-fulfillment Cancel Rate (PFCR), and Late Shipment Rate (LSR). Additionally, adhere to Amazon’s policies and guidelines to avoid account suspension or termination.