You can sell on Amazon from scratch with no prior experience, but the order matters: first choose your model and tax structure, then open the account, then pick a product, and finally optimise your listing. This guide walks through each step and links to the detailed guides.
Reviewed on 21 October 2026. Informational guide, not tax advice.
Steps to sell on Amazon from scratch
Follow this order to avoid repeating verifications or getting stuck on VAT.
1. Choose how you will sell
- FBA (Fulfilment by Amazon): you send stock to an Amazon warehouse and Amazon handles storage, shipping and returns. It often improves conversion but creates VAT obligations in the countries where goods are stored.
- FBM (Fulfilled by Merchant): you pack and ship orders yourself. Lower upfront cost, more operational work.
- Private label, resale or arbitrage: each model has different requirements. Private label lets you build an asset, so consider registering your trademark and joining Brand Registry.
2. Decide your tax structure before opening the account
Amazon will ask for company or business details. Changing structure later may mean repeating verifications, so decide first. Compare sole trader or company and, if you plan to sell in several countries, US LLC or Estonian OÜ.
3. Open your seller account
- Choose the professional plan if you expect to sell regularly; the individual plan suits very low volumes.
- Have your ID, bank details, credit card and proof of address ready.
- If Amazon asks for a video call or extra documents, follow the verification guide.
- Use consistent details everywhere: name, address and bank account holder must match.
4. Sort out VAT from day one
VAT is where many new sellers get stuck. If you store goods in other countries with FBA you will need a VAT number in each one: see Pan-EU FBA: countries and VAT numbers and the guide to EU ecommerce VAT and OSS. To estimate costs use the VAT registration cost calculator. Selling from outside the EU? Read VAT registration for non-EU sellers.
5. Pick a product carefully
- Look for steady demand through the year, not only seasonal peaks.
- Check competition: reviews of the leaders and average price.
- Work out real margins: production cost, shipping, duties and import VAT, Amazon fees, FBA fees and advertising.
- Avoid restricted products, patents or certifications you cannot meet.
- Start with few SKUs and small orders to validate before investing more.
6. Optimise your listing so Amazon can find it
Amazon search combines keyword relevance, conversion and sales. A strong listing helps with all three.
Title
Put brand, product, key feature and the most important keyword near the start, naturally and without stuffing.
Bullets and description
One clear customer benefit per bullet. Answer common questions: size, materials, compatibility, use.
Keywords
Research terms using Amazon search suggestions and your tools. Place the main ones in the title and bullets and the rest in backend search terms without repeating them.
Images
A white-background main image, several real-use images, one with dimensions and one with key benefits. With Brand Registry you can add A+ Content.
7. Send stock and launch
- Create the FBA shipment following Amazon labelling and packaging rules.
- Run Sponsored Products ads on a controlled budget to gain initial visibility.
- Ask for reviews only through methods Amazon allows; incentivising or buying them can get your account suspended.
- Track sessions, conversion rate, ACOS and stock availability.
8. Accounting and compliance
Amazon pays through settlements that mix sales, fees, refunds and advertising. Learn how to book Amazon settlements and keep your filings up to date to avoid blocks like an account suspended for VAT.
Common beginner mistakes
- Opening the account before deciding the tax structure.
- Storing in several countries without VAT numbers.
- Calculating margins without import VAT, FBA fees and advertising.
- Launching many SKUs at once without validating one.
- Asking for reviews through prohibited methods.
FAQ
How much money do I need to start? It depends on the product: initial stock, shipping, advertising, the professional plan fee and VAT or company registration costs. Build a budget before buying stock.
Do I need a company to sell on Amazon? You can start as a sole trader, but consider a company depending on volume, countries and risk.
Do I pay VAT if I sell in other countries? Usually yes: it depends on where your stock is and where your customers are.
Can I sell without FBA? Yes, with FBM, although FBA often improves visibility and conversion.
Want help?
Data Biz is an online tax and accounting practice for ecommerce sellers. Book a free consultation and we will tell you which structure and registrations you need to start properly.