Selling on Amazon: what to know first
Amazon hands you the world's biggest pool of ready-to-buy searchers, then charges for it in fees, competition, and control you don't have.
Before you list, understand FBA vs FBM, the fee structure, the Buy Box, the review cold-start, and the fact that you're building on rented land.
Fastest path: one prompt, end to end
🤖 AI prompt — paste into ChatGPT / Claude
You are an Amazon marketplace advisor. Use MY facts only.
[my product]: [what it is + category + price]
[my margin]: [contribution margin % before Amazon fees]
[my target buyer]: [who + do they search Amazon for this]
Units on hand + monthly order estimate: [# / #]
Do this:
1. Recommend FBA vs FBM for MY product and explain the tradeoff (Prime badge + Amazon-handled logistics vs control + lower fees), based on my volume and margin.
2. Break down the fee types I'll pay (a referral fee on each sale + a fulfillment cost if FBA), and warn that Amazon changes fees, so I must read the CURRENT rates on Amazon's own fee page rather than trust a number you state.
3. Explain the Buy Box in plain terms and what wins it (price, fulfillment method, seller metrics).
4. Give a review cold-start plan that follows Amazon's rules (no paid or incentivized reviews), and name the rented-land risk: Amazon owns the customer, can change rules, and can suspend a listing.
Do not state exact fee percentages as permanent facts. If you can browse, open sell.amazon.com's fee page and read current numbers; if not, mark every fee 'confirm on Amazon'.
Output: FBA/FBM pick + fee map (rates to confirm) + Buy Box basics + review plan + rented-land warning.
Or do it in 5 steps
- Choose FBA or FBM. FBA (Fulfilled by Amazon) means Amazon stores and ships your stock and you get the Prime badge, at higher fees. FBM (Fulfilled by Merchant) means you ship yourself, keeping control and cost down but losing easy Prime. Fast-moving small items lean FBA; bulky, low-volume, or high-margin control cases lean FBM.
- Map the fees, then verify the current rates. Expect a referral fee taken from each sale, plus a per-unit fulfillment cost on FBA. Amazon changes these, so treat any percentage you've heard as out of date. Open Amazon's own fee schedule and read today's numbers before you price.
- Understand the Buy Box. Most sales go through the Buy Box, the default 'Add to Cart' seller on a shared listing. A competitive price, a reliable fulfillment method (FBA helps), and strong seller metrics win it. If you don't hold the Buy Box, you're nearly invisible.
- Plan the review cold-start honestly. A new listing with zero reviews struggles. Use Amazon's compliant programs (like Vine where eligible) and good post-purchase follow-up. Never buy or incentivize reviews, that gets accounts banned.
- Respect the rented land. Amazon owns the customer relationship, sets the rules, and can suspend your listing overnight. Use its traffic to validate and sell, but capture what you can (brand, an off-Amazon audience) so a single policy change can't end your business.
Worked example (labeled): a $22 kitchen gadget, healthy margin, clear search demand. FBA fits because it's small, ships fast, and buyers filter for Prime.
The seller sets the price only after reading Amazon's current referral and FBA fees off the official schedule, not a blog. They win the Buy Box on price plus FBA reliability.
They seed early reviews through Vine and start collecting a brand email list off-platform, so they're not purely renting. Search-demand product, fees verified today, customer partly captured.
Amazon's traffic is real but rented; pick FBA or FBM on your economics, verify current fees before you price, and never let a listing be your only asset.