Essential Considerations for New Sellers Opening an Amazon Store

Starting an Amazon store might seem straightforward, but achieving success requires strategic planning. This guide reveals 8 critical areas every new seller must master – from product research to legal compliance – to build a profitable online business.

1. Product Selection: The Foundation of Amazon Success

Choosing the right products requires thorough market analysis and competitor research. Follow these key principles:

• Analyze Best Seller Rankings (BSR) to identify trending categories
• Calculate profit margins using Amazon’s fee calculator
• Verify supplier reliability through third-party certifications

The ideal product combines moderate competition (2,000-5,000 monthly searches) with at least 30% profit margin after fees. Tools like Jungle Scout help identify these opportunities efficiently. [1]

2. Account Setup: Navigating Amazon’s Seller Central

Amazon offers two account types:

• Individual Account: $0.99 per item sold (best for testing)
• Professional Account: $39.99/month (required for brand registry)

Complete your tax interview accurately to avoid account holds. New sellers should enable two-factor authentication immediately after registration. [2]

3. Listing Optimization: Maximizing Product Visibility

Optimize listings using Amazon’s search term report data:

• Include primary keyword in title (front-load for mobile visibility)
• Use bullet points to highlight key features and benefits
• Implement backend keywords strategically (avoid repetition)

High-quality images should follow Amazon’s 85% zoom rule and include lifestyle context. Video content increases conversion rates by 18% according to Amazon metrics. [3]

4. Fulfillment Strategy: Choosing Between FBA and FBM

Compare fulfillment options:

New sellers should calculate the break-even point using Amazon’s revenue calculator. Consider hybrid models for oversized items. [4]

5. Customer Service: Maintaining Seller Performance Metrics

Key metrics to monitor:

• Order Defect Rate (<1%)
• Late Shipment Rate (<4%)
• Pre-fulfillment Cancel Rate (<2.5%)

Automate responses using tools like FeedbackFive while maintaining personalized communication. Amazon’s A-to-Z Guarantee claims require resolution within 48 hours. [5]

6. Advertising: Strategic Use of Amazon PPC

Structure campaigns for maximum ROI:

• Start with automatic campaigns to gather data
• Transition to manual campaigns using high-performing keywords
• Maintain 20-25% ACOS during product launch phase

Leverage Amazon’s DSP for retargeting campaigns. Top-performing ads combine emotional triggers with clear value propositions. [6]

7. Financial Management: Tracking True Profitability

Essential financial controls:

• Separate business/personal accounts
• Calculate all hidden costs (storage, returns, promotions)
• Maintain 6-month cash reserve for inventory replenishment

Use inventory management software to avoid long-term storage fees. Amazon’s settlement report requires weekly reconciliation. [7]

8. Legal Compliance: Protecting Your Business

Key compliance areas:

• Product safety certifications (CPSC, FCC, UL)
• Intellectual property rights (Brand Registry 2.0)
• State sales tax nexus requirements

Conduct quarterly compliance audits. Amazon’s transparency program helps prevent counterfeit issues. [8]

New sellers who systematically address these eight areas typically see 3-5x faster growth compared to competitors. Remember that Amazon success requires continuous optimization – what works today might need adjustment tomorrow.