What you need to know before you start

Selling on Amazon means listing products in their marketplace, where millions of shoppers browse every day. Amazon handles the storefront, payment processing, and customer service for most transactions. You set the price, describe the item, and ship it to the buyer — or use Amazon's fulfillment service to store and ship for you. The trade-off is that Amazon takes a cut of every sale, usually between 15% and 45% depending on the product category.

Most people start by selling items they already own — used books, electronics, clothing, collectibles — because there is no upfront inventory cost and no waiting to see if anyone wants what you are selling. Others source new products wholesale or manufacture their own. The path you choose changes how much you earn, how much you spend, and how much time you put in.

Before you list anything, understand that Amazon's rules are strict. Items must be authentic, accurately described, and in the condition you claim. Violating these rules can get your account suspended, which means you lose access to all your sales and any money held in reserve. This is not a casual marketplace — it is a business platform with real consequences for mistakes.

Key Takeaways

  • You can start selling used items you own when ready with an individual account, but you pay per-item fees; a professional account costs $39.99 per month but removes per-item fees and unlocks more selling tools.
  • Amazon takes 15% to 45% of your sale price depending on category, plus shipping costs if you handle fulfillment yourself, so calculate your actual profit before listing.
  • Fulfillment by Amazon (FBA) stores your inventory in their warehouse and handles shipping, but you pay storage fees that can eat into profit on slow-moving items.
  • Your first sale can take days or weeks to arrive because Amazon prioritizes fast shipping and customer trust over seller speed, so do not expect when ready income.
  • Account suspension is common for new sellers who misrepresent items or ignore Amazon's policies, so read the rules for your category before you list anything.

Individual account versus professional account

An individual account is free to open and costs nothing until you make a sale. When you sell an item, Amazon charges you a per-item referral fee (usually 15% of the sale price) plus a closing fee of $0.30 to $2.00 depending on the category. You also pay for shipping unless the buyer pays for it. For someone selling a handful of used items, this is the cheapest way to start.

A professional account costs $39.99 per month and removes the per-item closing fee. You still pay the referral fee (the percentage cut), but if you sell more than 40 items per month, the professional account usually saves you money. Professional accounts also unlock features like bulk uploading, advertising tools, and access to restricted categories like electronics and beauty products.

To open either account, you need a valid email address, a credit card, and a bank account where Amazon can deposit your earnings. Amazon holds your first two weeks of sales in reserve, so you will not see that money when ready. After that, payouts happen every 14 days.

How to list your first item

Start by searching Amazon for a product identical or very similar to what you are selling. If it already exists, you can list your item under that product page — you do not need to create a new one. Click "Sell Yours" and fill in the condition (new, like new, very good, good, acceptable), the price, and the quantity. Take clear photos from multiple angles, write an honest description, and note any damage or wear.

If the product does not exist on Amazon yet, you will create a new listing. This requires a product title, category, description, images, and price. Keep the title factual and searchable — "Vintage Leather Jacket, Size Medium, Brown" works better than "Amazing Jacket You Will Love." Amazon's algorithm matches buyer searches to titles, so specificity matters.

Before you publish, check what similar items are selling for. Pricing too high means no sales; pricing too low means you lose money after fees. Many sellers use repricing tools that automatically adjust your price to stay competitive, though these cost extra and are not necessary when you are starting out.

Fulfillment by Merchant versus Fulfillment by Amazon

Fulfillment by Merchant (FBM) means you store the item, pack it, and ship it yourself. You pay for shipping materials and postage. The advantage is that you control costs and keep more of the sale price. The disadvantage is that you handle customer complaints, returns, and refunds directly. If a buyer claims the item never arrived, you have to prove you shipped it or refund them out of pocket.

Fulfillment by Amazon (FBA) means you send your inventory to an Amazon warehouse. When someone buys your item, Amazon picks it, packs it, and ships it. Amazon also handles returns and customer service. You pay storage fees (per cubic foot per month, and the rate is higher during October through December) plus a fulfillment fee per item (usually $2 to $15 depending on size and weight). For fast-moving items, FBA is worth it because Amazon's fast shipping makes your listing more visible. For slow-moving items, storage fees can exceed your profit.

Most new sellers start with FBM because it has no upfront cost and no storage fees. As you learn what sells, you can move popular items to FBA.

What happens after you make a sale

When a buyer purchases your item, Amazon deposits the money into your seller account. If you are using FBM, you have two business days to ship the item. If you miss that window, Amazon may cancel the order and refund the buyer. Print the shipping label from your seller dashboard, pack the item, and drop it off at the carrier (USPS, UPS, or FedEx depending on what Amazon offers for your item's weight and destination).

The buyer receives the item, and if they are satisfied, the sale is complete. Amazon releases your payment to your bank account during the next payout cycle. If the buyer opens a case claiming the item is not as described or never arrived, Amazon investigates. If you lose the case, the refund comes out of your seller account. If you do not have enough balance, Amazon may suspend your account until you pay.

Returns are common. Buyers can return most items within 30 days for any reason. If you are using FBM, the item comes back to you and you have to decide whether to resell it or refund the buyer. If you are using FBA, Amazon handles the return and you decide whether to keep the item in inventory or have Amazon destroy it.

Costs that reduce your profit

Your actual earnings are the sale price minus all costs. Here is what to subtract: Amazon's referral fee (15% to 45% depending on category), closing fee if you have an individual account ($0.30 to $2.00), shipping cost if you pay for it, packaging materials, and any tools or software you use (repricing tools, inventory management, accounting software). If you use FBA, subtract the fulfillment fee and storage fees.

For example: you sell a used book for $15 on an individual account. Amazon takes a 15% referral fee ($2.25) and a $0.30 closing fee. You paid $3 to ship it to the buyer. Your profit is $15 minus $2.25 minus $0.30 minus $3 = $9.45. If you had listed 50 books and only this one sold, you spent time photographing and describing 49 items that earned you nothing.

This is why most successful sellers focus on categories where they can buy inventory cheap and sell it at a healthy margin. Selling used items you own works for clearing clutter, but it rarely becomes a real income source.

Common mistakes that get accounts suspended

Amazon suspends seller accounts for misrepresenting items (saying something is new when it is used, hiding damage, or lying about authenticity), violating category restrictions (selling items you are not approved to sell), or receiving too many complaints. Once suspended, you lose access to your inventory and any money in your seller account. Reinstatement requires a written appeal explaining what went wrong and how you will prevent it in the future.

Other common mistakes: not shipping within the required window, not responding to buyer messages, and using the same account to sell counterfeit or prohibited items. Read Amazon's policies for your specific category before you list anything. Policies vary widely — for example, selling used electronics requires different documentation than selling used books.

Keep records of everything: receipts for items you bought, photos of items before you shipped them, and copies of all buyer messages. If a dispute arises, these documents are your proof.

Frequently Asked Questions

How long does it take to make my first sale?

It depends on what you are selling and how you price it. Popular items in good condition can sell within hours. Niche items or items priced above market rate may take weeks or never sell. There is no may provide, and many new sellers list 10 items and sell only one or two.

Can I sell items I bought from a store?

Yes, as long as they are authentic and you describe their condition accurately. If you bought them new and never opened them, list them as new. If you opened them or used them, list them as used. Do not misrepresent condition — Amazon takes this seriously.

What if a buyer says the item is damaged and wants a refund?

If you shipped it yourself, Amazon will ask you to prove you packaged it safely. If you cannot, you refund the buyer. If you used FBA, Amazon handles the return and decides whether to refund the buyer or let you keep the item. Either way, you lose the sale.

Do I have to pay taxes on Amazon sales?

Yes. Amazon reports your sales to the IRS if you earn over $20,000 and make more than 200 transactions in a year. Even if you do not meet that threshold, you owe income tax on what you earn. Keep records of your sales and expenses so you can report them accurately on your tax return.

Can I sell the same item multiple times?

Yes, if you have multiple copies. If you list one item and it sells, that listing is gone unless you add more inventory. If you want to sell the same product repeatedly, you can either keep restocking it or use a wholesale supplier to buy in bulk.