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How To Become A Seller On Amazon?

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Amazon, the global online shopping platform is a familiar place for all of us. Online shopping has taken the world by storm and Amazon is right at the spearhead. What makes websites like Amazon great is that they allow users to not only buy, but also sell products on their site. Fulfillment By Amazon or simply FBA is Amazon’s platform for budding sellers who want to put up their stuff for sale without facing the hassles of setting up a shop or other infrastructure. With the rising popularity of eCommerce, it is only natural that more and more people develop an interest in selling their merchandise online. If you have something to sell and if you want to do it on Amazon, then here’s what you need to know.


FBA is the closest thing available to an easy setup for sellers. You can sell within India or you can sell globally, all of this when you don’t need to set up a website of your own, neither do you need to set up payment gateways and the likes, Amazon would handle that for you. Sounds interesting, doesn’t it? The only con is (if you could call it a con) that you have to handle the shipping. When we say handle, we mean pack, dispatch and pay for shipping yourself.

Becoming An Amazon Seller

Step 1: Seller Account

The first step towards becoming an Amazon seller would be setting up a Seller Account. If you already have a shop, you might not be able to use the “Sell as an individual” option. Otherwise, simply use said option setup an account. Selling as an individual has the added benefit that you are exempted from paying a monthly rent to Amazon. You can use the services of to incorporate as a sole proprietor. Once you’ve signed up, add FBA to your account.

Step 2: Setting up your store

Using the listing tools available online, you can set up an online store to showcase your products. Add your bank details and also the details of your TAN/TIN/VAT/CST for receiving payments from Amazon.

This is pretty much it. You’ll be required to provide your legal name everywhere and not your username if you already have one on Amazon. If you wish to sell globally with Amazon, you’ll need to register with You’ll also need an international credit card and also go through an online tax verification interview to decide whether you’ll be an American taxpayer or a Non-American one – W-9/ W-8BEN.

There is always the option to fulfill the orders on your own, however, that entails that you’ll handle everything. With FBA, your products will be stocked in the Amazon storehouse or Fulfillment centres in advance.

Things To Keep In Mind While Selling On Amazon

Shipping prices: You pay for shipping. We’ve mentioned that already. We’re stressing on that again because when we say shipping it also covers the packing charges. And if you are selling fragile and delicate merchandise, the packing is clearly going to cost more.

Amazon’s fee: Amazon charges you a 15% cut on everything you sell through FBA. It is not too much, though. They handle everything related to payments, refunds and stocking in the fulfilment centres, so this cut is only fair.

Immense competition: While selling on Amazon certainly seems like a convenient option, you must remember that in selling through Amazon, you are in short competing with other merchants and Amazon itself. This could cause customers to compare your merchandise with other sellers’ merchandise and there is some margin for you to lose that sale. You might have to employ some incentivising strategy here to stay on top of the game.

Errors in distribution: When a customer opts to buy a product that you have listed and if your product is not in a fulfillment centre close to the customer, then a similar product stocked in a fulfillment centre closest to the customer will be dispatched. You will indeed be paid but the catch is that the customer may not receive your product. But if the product that was dispatched was of poor quality, the customer will report it and you will end up being blacklisted or even banned from further trading.

The Bottom Line

If you do have some great stuff to sell but lack the money to set up shop, e-commerce platforms like Amazon are a great option. They place you on the global marketplace, increase your footprint and thereby bringing in more sales. If you are starting from scratch, don’t worry, we’re still here to help you set up necessary credentials like PAN, TAN and almost every legal document required to set up your business during your quest to become a seller on Amazon. We can also help you take the first steps towards setting up a startup with’s startup package and the incorporation package, both unique products designed specifically for entrepreneurs. Holler at us if you need any help. Cheers!

16 Sep, 16

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