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7 Steps To Activate Your Amazon Seller Central Account in 2021

Published on: Fri Feb 05 2021

Written by Tony Do

Do you want to learn how to sell on Amazon and make extra income? Here are the 7 steps you need to know in order to start selling through Amazon FBA or Amazon FBM!

09 - 7 Steps To Activate Your Amazon Seller Central Account in 2021

Want to start selling on Amazon? Here are the 7 steps needed to activate your new Amazon Seller Central Account in 2021! Start your Amazon Business Now!

So you’ve heard all about the exciting world of successful Amazon Sellers and now you want to try it out for yourself. Building an Amazon business requires a strong foundation. Once you set the foundation and learn a bit about product sourcing, what products to sell on Amazon, and how to keep inventory, your business will begin to flourish.

But first, you need to set up a free Amazon seller account. Starting an Amazon Business is easy, fun, and an exciting experience but can be challenging if you do not know what to expect. Use this guide as a paved road to help you start your own Amazon seller account.

Step 1: Amazon Sign-up

The first thing you need to do is register a seller account on Amazon. To begin, visit the Amazon Seller Central page. You’ll notice a giant yellow “Sign Up” button. Below the button, Amazon states a monthly cost based on your account type. There will be two options. An individual plan which costs .99 per unit sold or a professional plan that costs $39.99 per month plus Amazon seller fees. This is where you will need to decide how much you want to commit to Amazon FBA.

There are pros and cons of each account if you are starting a new Amazon account. If you want to start at a smaller stage, the individual plan will provide more safety. New Amazon sellers have the opportunity to start small; have a smaller inventory and a smaller catalog. If you want to start as a beginner, the individual plan will empower you to build your business as you gain more experience over time. Because this account type charges fees based on the number of items you sell, if you have no or low sales, the cost will be dramatically lower than the professional plan.

If you’re ready to start big and expect to be selling more than 40 items a month, your best bet is to purchase the professional plan. This plan removes the per unit sold fee and replaces it with a flat seller fee ($39.99 per month). If you sell more than 40 items a month, it would be cheaper than the individual plan cost of $0.99 fee per unit sold. FBA sellers that purchase large quantities of stock and expect high sales would be best suited for the professional plan.

Step 2: Breaking Down Amazon Seller Fees

As with any business, it is hard to escape the world of fees and taxes! Amazon is no different. Amazon charges several fees for your business venture.

Amazon Referral Fees

Amazon referral fees are fees that Amazon charges your business every time you sell a product. Most referral fees are between 8% to 15% but can range greatly based on the product category. For items like computers, the fees may be a little as 6%. For other categories such as Amazon device accessories, these fees can inflate upwards of 40%. Referral fees are crucial when deciding what products you want to sell and how they can impact your profitability.

Fulfillment By Amazon (FBA) Fees

Next, Amazon may charge a fulfillment fee. The Amazon merchant fulfillment fees are the fees that Amazon charges your business if you use Fulfillment by Amazon (FBA) to ship your orders. As stated by Amazon, FBA fees change every year depending on the costs for Amazon to ship, transport and deliver your products. Therefore it will be vital for sellers of all sizes to determine how the cost will impact their business model. These fees will change based on product category, product size/weight, and additional category guidelines. To learn more about FBA fees and how they will impact your profitability, head to Amazon Seller Central Support.

Extra Fees to Think About

There may be other costs associated with your business such as inventory storage fees or promotional fees (when you use an Amazon sale mechanism like “Lightning Deals”). As a general rule of thumb, sellers want to avoid long storage fees, so you’ll want to maintain inventory so it is constantly moving instead of staying stagnant in storage.

Each business will range based on their business model, what products they sell, and how they fulfill their orders. Research is crucial when starting a new Amazon business, so make sure you do your due diligence before you consider it in Amazon FBA!

Step 3: Completing Your Amazon Account on Seller Central

Once you click “Sign Up” you will go through the Amazon seller account registration process. Here you’ll want to create a new Amazon account for your business. As a reminder, all sellers should keep your personal shopping Amazon account separate from your business account to maintain organization and clarity. You will enter your email, password, and then be asked to verify Amazon seller account through your email.

Once verified, you will need your business name and address, which might be your home address if you’re operating your Amazon Seller Business from your home.

Finally, you will need to enter a phone number and verify that number via text message. You will be given a code via text that you will need to enter. Once these steps are completed, you should be able to access your account through the Seller Central login.

Step 4: What is Amazon Marketplace and How to Select Your Online Marketplace

After you register your account, Amazon will allow you to pick your regional marketplace. Amazon Marketplace is different from Amazon. While Amazon is the e-commerce platform as a whole, Amazon Marketplace is the actual online shopping network where Amazon third-party sellers like you can sell your products. This step gives you the option to choose what marketplace you want to sell on before you opt for Amazon seller registration.

Remember that each region has a different culture, perspective, and needs. Some items might overperform in one region over another. Amazon also charges fees differently based on the region. You could pay an extra fee to hit Japan and other global marketplaces and test your luck, but we recommend just selecting North America or whatever region you are living in and moving to the next step.

Step 5: Enter Your Financial Information

The next step is all about the financials. You may be thinking, why is Amazon asking for a credit card? You will need to enter your credit card information to begin your account. If you choose the professional plan, you will be charged $39.99 a month. The plan fee will hit your account right away, so make sure that you are ready to sell when you make your Amazon account. Once you start making sales over $40 a month, Amazon will take the monthly fee out of your profits instead of charging your card.

After inputting your financial information, you will enter your billing address and bank account information (bank name, account number, routing number). This allows Amazon to direct deposit your profits into your bank account every two weeks.

Step 6: Choose An Amazon Store Name and Building Your Personal brand

After inputting your financial information, the next step is picking your account and business brand name. What’s in a name? While you may think your name plays a huge part in your profitability, no one really pays attention to your store name. Amazon allows sellers to change this as often as they like, so don’t put too much time and resources trying to pick the perfect name. Specifically, if you are planning on selling brand name products, the store name will not impact your sales greatly. The brand names on the products you sell will go way farther than your store name!

Once completed, Amazon will ask you two questions. 1) Do you have universal product codes (UPCs) for all of your products? Click yes. 2) Are you the manufacturer, or brand owner, agent, or representative for the brand? You can click whichever ones if they apply to you, but if you are planning on reselling items on Amazon, choose “no.” If you are not sure what type of seller you want to be, check out our article on A Beginner’s Guide to Selling Whole Products on Amazon.

Step 7: Amazon Verification and Become An Amazon Seller

To prevent Amazon Sellers from running multiple businesses under the same account, there will be an Amazon account verification process that will ask you additional questions to verify your identity. This includes providing documents required to open Amazon seller accounts. You can choose to upload your passport information or driver’s license information. Once you provide these documents and click “submit,” you should receive confirmation within 24-48 hours. For safety, be consistent with all of your addresses and information. Keep everything as simple as possible!

Start Selling on Amazon Today!

Congratulations on making your new Amazon Seller Account! But, the job is not done! Get to work and start your Amazon selling adventure now!

Have questions or concerns about where to go next?

Read our past blogs on Profit Calculator: How to Estimate Amazon Product Margin or Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers!

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