How to Start Selling on Amazon and Why Your Biggest Amazon Threat Isn’t Other Sellers
Amazon isn’t just any online store — it’s a money-making machine where over 300 million people shop daily. That’s a massive customer pool waiting to throw money at the right products. But let’s be real — competition is ruthless. You’re not just up against other sellers — you’re battling bad listings, poor optimization and Amazon’s ever-changing algorithm.
So why jump in? Because when done right, Amazon selling can bring in passive income, boost your brand and scale your business faster than any other e-commerce platform. With its global reach and built-in trust, even small businesses can outshine giant brands. The secret? The key is understanding the game, optimizing your listings and using Amazon’s tools like a chessmaster.
In this step-by-step guide, we’ll walk you through how to start selling on Amazon the right way in 2025, avoid the common pitfalls and crush the competition.
The Power of a Strong Position
Selling on Amazon requires the right strategy and wise moves. Amazon provides the infrastructure, but it’s up to you to cut through the noise and get your product in front of the right customers. To win, you need to master the art of smart listings, strategic pricing and powerful marketing while choosing the best fulfillment method. Scaling fast is possible, but competition is brutal, and fees stack up quickly if you don’t have a solid plan. The pieces include:
- An Amazon Seller Account – A Professional or Individual account.
- Fulfillment Options – Fulfillment by Amazon (FBA) for hands-off logistics or Fulfillment by Merchant (FBM) for full control.
- Listing Optimization – Dominate search with SEO-driven titles, eye-catching images and strategic pricing.
- Customer Service & Reviews – Handling returns, resolving customer issues fast and building trust.
Who Can Be Champion?
Selling on Amazon isn’t just for big corporations — anyone with a product and a strategy can cash in. Here’s who stands to gain the most:
- Small Business Owners – Break out of local limitations and reach a massive audience without the overhead of a physical store.
- E-Commerce Brands – Supercharge growth by diversifying revenue streams and taking advantage of Amazon’s global trust factor.
- Manufacturers & Wholesalers – Ditch the middleman and sell directly to consumers, boosting margins and brand control.
- Side Hustlers & Entrepreneurs – Whether it’s private labeling, drop-shipping or retail arbitrage, Amazon offers a fast-track to passive income.
- Brick-and-Mortar Retailers – Go omnichannel by using Amazon as an additional sales platform, reaching customers beyond foot traffic.
- International Sellers – Tap into Amazon’s global reach and sell across borders without setting up shop in every country.
If you have the right product, the right approach and the hustle to optimize, Amazon can be a game-changer for your business.
Amazon for Beginners: Step-by-Step Guide
Step 1: Create an Amazon Seller Account
Before making a dime, you need an account. Here’s how:
- Head to Amazon Seller Central and hit “Sign up.”
- Choose between Individual (pay per sale) or Professional (monthly fee, unlimited sales).
- Fill in business information, tax details and banking info (Amazon doesn’t mess around when it comes to payments).
- Verify your identity and wait for approval.
Pro Tip: Set up two-factor authentication immediately to keep your account safe.
Step 2: Pick a Fulfillment Strategy
- Fulfillment by Amazon (FBA) — Amazon stores, packs and ships your products for you (best for scalability and Prime eligibility).
- Fulfillment by Merchant (FBM) — You handle everything, from storage to shipping (best for custom products or large items).
- Seller Fulfilled Prime (SFP) — This is a hybrid model where you handle fulfillment but maintain Prime status.
Which One’s Best?
- FBA is ideal if you want to scale fast and skip logistics headaches.
- FBM works if you’ve got an efficient fulfillment setup.
- SFP is for sellers who want Prime benefits but still control shipping.
Step 3: List Your First Product
Your product listing is your first impression — make it count.
- Title — Front-load keywords, but keep it readable.
- Bullet points — Benefits > features. Show customers how your product solves their pain points.
- Product description — Punchy, keyword-rich and easy to scan.
- Images — High-quality, multiple angles, lifestyle shots.
- Pricing — Competitive but profitable. Use Amazon's Automated Pricing Tool to adjust dynamically.
Setting the Board: What to Do Before Listing a Product
1. Find the Right Niche
- Skip oversaturated markets (unless you’ve got an edge).
- Check Amazon Bestsellers for high-demand products.
- Use Google Trends and Helium 10 for seasonal insights.
2. Do Some Market Research
- Who are your competitors?
- What are their price points, reviews and fulfillment methods?
- How do you make your product stand out?
- Utilize tools like Jungle Scout and AMZScout for competitive insights.
3. Choose a Selling Strategy
- Private Label (create your own brand and manufacture products)
- Retail Arbitrage (buy low, sell high, flipping items from retail stores)
- Wholesale (buy in bulk, sell individually)
- Drop-Shipping (no inventory, ship directly from supplier)
- Print-on-Demand (customized items without inventory storage)
4. Write a Business Plan
A road map keeps you focused. It should include:
- Target audience & competition analysis
- Product costs & profit margins
- Marketing strategy & sales forecasts
5. Crack Amazon's Algorithm (A10)
Amazon’s A10 algorithm prioritizes:
- Sales velocity — Fast sales boost rankings.
- Click-through rate (CTR) — The more people click your listing, the better.
- Conversion rate — Amazon loves listings that turn views into cash.
- Customer feedback & reviews — Good reviews build trust and improve rankings.
- External traffic — Amazon rewards sellers who drive traffic from outside places.
Playing the Middle Game: What to Do After Listing a Product
1. Optimize Your Stock
- Keep an eye on inventory levels (Amazon penalizes stockouts!).
- Use Amazon Inventory Performance Index (IPI) to track storage efficiency.
- Maintain an inventory buffer to avoid losing sales due to unexpected demand spikes.
2. Get Positive Feedback From Customers
- Go above and beyond for your customers.
- Use Amazon’s Request a Review button to boost legit feedback.
- Monitor your customer service metrics to ensure compliance with Amazon’s policies.
3. Optimize Your Prices
- Use dynamic pricing tools to stay competitive.
- Offer discounts to increase sales.
- Test different pricing strategies using A/B split testing.
4. Invest in Amazon PPC Advertising
- Use Sponsored Products to boost visibility.
- Experiment with Sponsored Brands if you have multiple products to sell.
- Monitor your ACOS (Advertising Cost of Sales) to optimize ad spend.
Moves to Avoid
🚫 Ignoring Amazon’s rules — You will get suspended. No bribing for reviews!
🚫 Choosing the wrong niche — Avoid products with low profit margins or ridiculous competition.
🚫 Skipping market research — Just because YOU love the product doesn’t mean the market does.
🚫 Poor listing optimization — Low-quality images, weak descriptions and poor keywords mean no sales.
Why Your Biggest Amazon Threat Isn’t Other Sellers
It’s easy to assume that your biggest competition on Amazon is other sellers. After all, millions of businesses are courting for the same customers, undercutting prices and launching aggressive marketing campaigns. But here’s the truth:
Your biggest Amazon threat isn’t your competitors — it’s Amazon itself.
1. The Ever-Shifting Amazon Algorithm (A10)
Amazon’s search algorithm determines whether your product gets seen or buried under a mountain of competitors. The problem? Amazon constantly tweaks its algorithm, prioritizing things like conversion rates, external traffic and customer experience. If you don’t stay ahead of these changes, your listings can drown overnight — no matter how good your product is.
Solution: Stay updated on Amazon’s algorithm changes, and optimize your listings accordingly. Track your performance metrics, test different strategies and be ready to adapt.
2. Amazon Competing Against You
Amazon isn’t just a marketplace — it’s also a seller. And if your product is successful, Amazon might take notice and create its own version of it under AmazonBasics or another private label brand. Suddenly, you’re not just competing against random third-party sellers — you’re competing against the very platform that controls the marketplace.
Solution: Differentiate! Focus on branding, storytelling and premium product quality. Build a loyal customer base through exceptional service and strategic marketing beyond Amazon.
3. Amazon’s Policy and Rule Changes
Amazon’s policies can shift unexpectedly, and many sellers have found themselves banned, suspended or losing Buy Box privileges due to policy changes they didn’t see coming. From stricter rules on product claims to adjustments in review policies, Amazon can change the game anytime.
Solution: Always follow Amazon’s policies to the letter. Stay compliant with intellectual property laws, fair pricing strategies and ethical review practices to avoid sudden penalties.
4. The Race to the Bottom on Pricing
Many new sellers make the mistake of assuming lower prices will win them more sales.
The problem? Amazon rewards conversions, not just low prices.
If you lowball your product, you not only lose margins, but you also lose brand value. And if competitors join the pricing game, you’ll soon find yourself making sales but no profits.
Solution: Instead of cutting prices, focus on increasing perceived value. Offer bundles, add bonuses, highlight premium materials or create engaging product listings that justify a higher price.
5. Fake Reviews and Black-Hat Tactics
Amazon is like a chess game, and unfortunately, some sellers play dirty. Fake reviews, hijacked listings and black-hat tactics (like competitors mass-reporting your product) can sink your business fast.
Solution: Protect your brand by enrolling in Amazon Brand Registry. Report fraudulent activity immediately, and build a strong review strategy that encourages genuine customer feedback.
6. Logistics Nightmares and Inventory Problems
If you run out of stock, Amazon punishes your ranking. If you have too much stock, you pay high storage fees. If your shipments are delayed, your seller rating drops. It’s a delicate balancing act, and Amazon’s fulfillment policies don’t always work in your favor.
Solution: Monitor your inventory levels closely. Use Amazon’s Inventory Performance Index (IPI) to avoid storage fees and penalties. Have backup suppliers ready to prevent stockouts.
7. Amazon’s Customer-First Mentality
Amazon cares about one thing: keeping customers happy. That means they side with customers over sellers in disputes, issue refunds freely and don’t hesitate to suspend accounts with too many complaints.
Solution: Deliver stellar customer service, respond to inquiries quickly and maintain a high Order Defect Rate (ODR) score. A great customer experience equals higher rankings and more sales.
Think Steps Ahead of Competitors
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Use Amazon’s A+ Content to enhance listings and improve conversion rates.
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Bundle products to increase perceived value and improve average order value.
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Use external traffic sources (Google Ads, Facebook, Instagram, YouTube) to drive Amazon sales and boost ranking.
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Over 70% of shoppers browse on mobile. Always check to ensure bullet points and visuals are mobile-friendly.
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Optimize for voice search by including long-tail keywords that match how people actually talk to Alexa and Siri.
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Amazon lets you add hidden (backend) keywords that don’t show up on your listing but boost your discoverability.
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Take advantage of Amazon Lightning Deals and Coupons to increase visibility and attract bargain shoppers.
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Leverage influencer marketing by partnering with niche influencers on social media to drive external traffic.
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Use video content to increase conversions by 80%.
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Enroll in the Amazon Brand Registry to protect your brand and unlock advanced marketing features.
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Utilize retargeting ads on Amazon DSP to re-engage potential customers who viewed but didn’t purchase your product.
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Work with Netpeak’s marketing services for expert PPC management, Amazon SEO optimization and conversion rate improvements tailored to Amazon sellers.
Checkmate: Mastering Amazon Before It Masters You
Selling on Amazon is a high-stakes match where every move counts. The board is packed with competitors, and if you’re not thinking several steps ahead, you’ll find yourself outmaneuvered and checkmated by savvier sellers.
To win, you need precision, adaptability and an effective strategy. Choosing the right products to sell is your opening gambit, optimizing your listings is your mid-game, and smart pricing ensures you close strong. But the biggest threat isn’t another player — it’s standing still while the game moves forward.
So what’s your move? Start today, follow this guide and turn your Amazon business into an empire. Need help learning the game? Reach out to Netpeak today.
FAQ
What do I need to start selling on Amazon?
You’ll need a business registration (optional but recommended), a bank account for payments, and a solid product idea and sourcing strategy.
Is selling on Amazon worth it?
If done correctly, absolutely. With optimized listings, smart pricing and FBA you can scale faster than traditional e-commerce.
How much will it cost to start selling on Amazon?
It depends on your strategy:
Low-budget: Retail arbitrage ($100–$500)
Mid-range: Private label ($2,000–$5,000)
High-end: Large inventory wholesale ($10,000+)
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