how to sell on amazon

How to Sell on Amazon: 5 Winning Strategies & One Essential Tool

Learning how to sell on Amazon has become a popular path for aspiring entrepreneurs and established brands alike. 

As of 2025, Amazon boasts over 310 million active customer accounts and attracts nearly 40% of all U.S. online retail sales—making it the largest e-commerce marketplace globally. With such a massive audience, it’s no wonder thousands of new sellers join Amazon each day.

However, figuring out how to sell on Amazon successfully involves more than just listing your products. Optimizing your listings, driving external traffic, and leveraging tools like affiliate marketing software can significantly boost your visibility and sales. 

For instance, affiliate marketing is a multi-billion-dollar industry that drives an estimated 16% of all U.S. e-commerce orders. Tapping into that channel can help you stand out from the competition and build a profitable Amazon business.

So, how to sell on Amazon effectively? In this post, I’ll share five proven strategies—from choosing the right products to harnessing affiliate software—to drive more traffic, attract loyal customers, and grow your bottom line. 

I’ll also introduce you to Algorift, a powerful platform that manages your Amazon affiliate program seamlessly. Whether you’re a complete newbie or a seasoned seller, these tips will help you take advantage of everything Amazon has to offer.

How to Sell on Amazon for Beginners

Selling on Amazon as a beginner can feel overwhelming, but it’s manageable if you break it down into steps. Here’s a straightforward guide to get you started:

1. Choose Your Selling Plan

  1. Individual Seller Account: Free to set up, no monthly fee, but Amazon charges $0.99 per item sold plus referral fees (8-15% of the sale price, depending on the category). Best if you’re testing the waters or selling fewer than 40 items a month.
  2. Professional Seller Account: Costs $39.99/month, no per-item fee, just referral fees. Better for higher volume or if you want access to advanced tools like ads and analytics.

How to Decide: Start with Individual if you’re new and unsure about sales volume. You can upgrade later.

Amazon selling plans

2. Set Up Your Amazon Seller Account

1. Go to sellercentral.amazon.com.

Setting up Amazon Seller Account

2. Sign in with an Amazon account or create a new one.

Sing in to amazon seller center

3. Provide:

  • Business name and address (can be your personal address for Individuals).
  • Bank account info for payouts. 
  • A credit/debit card for fees.
  • Tax info (SSN for individuals, EIN if you have a business). 
fill out necessary information for amazon seller registration

4. Verify your identity (Amazon may ask for a photo ID or utility bill).

3. Find Products to Sell

Start Simple: Sell items you already own (books, gadgets, clothes) to avoid upfront costs.

Research What Sells: Use free tools like Amazon’s ‘Best Sellers’ list (under “Departments”) to spot trending items. Search X or Google for “Amazon beginner products” for ideas—think low-cost, lightweight items like phone accessories or kitchen gadgets.
Source Cheaply:

  • Retail Arbitrage: Buy clearance items from stores (Walmart, Target) and resell at a profit.
  • Thrift Stores/Garage Sales: Find undervalued goodies.
  • Dropshipping or Print-on-Demand: No inventory is needed, but research suppliers carefully (e.g., via Oberlo or Merch on Demand).
Amazon best seller

4. List Your Products

  1. Log into Seller Central.
  2. Click ‘Add a Product’ under the Inventory tab.
  3. Search for your item by name, UPC, or ASIN (if it’s already on Amazon). If it’s unique, create a new listing with: a title, images, description, price 
  4. Set your condition (new, used) and quantity.
How to add a product on amazon

5. Choose Fulfillment Method

  • Fulfillment by Merchant (FBM): You store, pack, and ship items yourself. Cheaper upfront, but you handle shipping and customer service.
  • Fulfillment by Amazon (FBA): Send inventory to Amazon’s warehouses; they ship and handle returns. Costs more (storage fees, per-order fees), but it’s hands-off and boosts visibility with Prime. Beginners often start with FBM to keep it simple.

6. Get Your First Sale

  • Price Competitively: Undercut similar listings slightly to attract buyers.
  • Share Your Listing: Post it on social media (X, Facebook) or with friends, but don’t spam—Amazon frowns on fake traffic.
  • Wait for Organic Sales: Amazon’s algorithm favors fast-selling items, so initial sales matter.

7. Ship Orders (If FBM)

Once an order comes in (check Seller Central or email alerts):

  • Pack securely (bubble wrap, boxes—reuse what you have).
  • Buy shipping labels through Amazon for discounted rates.
  • Ship within 1-2 days and upload tracking.

8. Manage Fees and Profits

  • Fees to Expect: Referral fee (e.g., 15% on a $10 item = $1.50), $0.99 per item (Individual plan), shipping costs (FBM).
  •  Payouts: Amazon pays every 14 days to your bank account, minus fees.
  • Track Costs: Use a simple spreadsheet to ensure you’re profiting.

Here’s a summary of the process: 

The process to sign up on amazon sellers

Now, you might find the fees and commissions a bit discouraging. After all, one of the drawbacks of Amazon for sellers is its low ROI. In this case, this question pop-ups in everyone’s head: 

How to Sell on Amazon For Free? 

You can sell on Amazon for free in the sense that there are no upfront costs to set up an Individual Seller account, but there are some fees involved once you start selling. Here’s how it works:

Amazon offers two types of seller accounts: Individual and Professional. The Individual Seller account is free to create and has no monthly subscription fee, making it a good starting point if you want to sell without upfront costs. 

However, Amazon charges a $0.99 fee per item sold, plus additional selling fees like referral fees (a percentage of the sale price, typically 8-15% depending on the product category). 

So, while you can begin selling without paying anything initially, you’ll incur costs once your items sell.

To sell on Amazon for free in terms of minimizing out-of-pocket expenses, you could:

  • Use items you already own: Sell things around your house (like used books, electronics, or crafts) to avoid spending money on inventory.
  • Opt for Fulfillment by Merchant (FBM): Ship items yourself instead of using Amazon’s Fulfillment by Amazon (FBA) service, which has storage and fulfillment fees. This keeps costs down, especially if you reuse packing materials.
  • Explore no-inventory options: Programs like Amazon Merch on Demand (upload designs for print-on-demand products) or Kindle Direct Publishing (sell e-books) let you sell without buying or storing inventory, though royalties or commissions apply.

5 Strategies to Sell on Amazon Successfully

Below are five strategies to help you sell on Amazon effectively. Implementing these tactics can improve product visibility, reduce costs, and increase your margins—even if you’re aiming to sell on Amazon for free or at minimal cost.

1. Choose a Profitable Niche & Product

Selecting what to sell is the foundation of learning how to sell on Amazon. A profitable, in-demand product with manageable competition sets you on the right path. 

Look for trending niches, check competitors’ best-seller ranks (BSRs), and gauge consumer reviews to identify gaps in the market.

How to Do It

  • Research Tools: Use Amazon’s Best Sellers lists and third-party apps to gauge product demand and competition.
  • Evaluate Margins: Factor in Amazon’s referral fees, FBA (Fulfillment by Amazon) costs, and shipping expenses to confirm profitability.
  • Check Seasonality: Consider whether your product’s demand fluctuates by season.
  • Start Small: Even if you want to sell on Amazon for free, look for products with low initial investment or minimal shipping costs to reduce your risk.

Pro Tip: Once you pinpoint a profitable product idea, test the waters with a small batch to gather real marketplace feedback before scaling up.

2. Use the Right Affiliate Software: Introducing Algorift

Among the tools that make affiliate marketing work, Algorift stands out as the best overall solution. It offers a comprehensive, user-friendly platform that manages everything from affiliate onboarding to real-time tracking and automated payouts.

Algorift

Key Features

  1. Large Affiliate Network: Access a pool of experienced Amazon affiliates and influencers. Users who are already part of the Amazon influencer program can join your campaign too. 
  2. AI-Driven Analytics: Monitor click-through rates, conversions, and sales in real-time to optimize campaigns.
  3. Seamless Integration: Ties into your Amazon Seller Central account, ensuring accurate sales attribution and compliance with Amazon’s policies.
  4. Automated Payouts: Eliminate the hassle of manual payments—Algorift handles it securely.
  5. Flexible Commission Structures: Set different commission tiers for various products or affiliate tiers.

Why Algorift?

  • Time Saver: Automates repetitive tasks so you can focus on growing your brand.
  • Scalable: Suitable for sellers at all stages—whether you want to sell on Amazon for free or you’re a high-volume seller needing advanced analytics.
  • Transparent Pricing: Performance-based models plus a free tier let you experiment without hefty commitments.

Pro Tip: Use Algorift’s recruitment features to quickly find affiliates who specialize in your niche. If your product is a fitness supplement, you’ll want to tap health bloggers; if it’s a cooking utensil, target culinary influencers.

Algorift is the superior affiliate platform for many reasons. In a way, you could say it’s one of the best Amazon marketing services for both sellers and affiliates. All you need to do is sign up for free and figure it out for yourself! 

3. Optimize Your Product Listing for SEO

To sell on Amazon, you need to be discoverable. Amazon is a search engine at heart; optimizing your listing with relevant keywords, clear product images, and compelling descriptions can boost your organic ranking. 

Many experts liken Amazon SEO to Google SEO—but with different ranking factors such as click-through rates, conversion rates, and product reviews.

How to Do It

  • Keyword Research: Use tools like Helium 10, Jungle Scout, or even Amazon’s own auto-suggestions to find relevant terms. Include “how to sell on Amazon” or variations if you’re marketing products for sellers, but mostly focus on buyer-intent keywords for your niche.
  • Front-Loaded Titles: Place your most important keywords at the beginning of the product title.
  • Bullet Points: Highlight key features and benefits; keep them readable.
  • High-Quality Images: Use at least 5–7 images, including lifestyle photos and close-ups.
  • Backend Keywords: Fill out your hidden search terms in Seller Central to capture additional keyword variations.

Pro Tip: Encourage early reviews by following Amazon’s Terms of Service. Positive social proof significantly influences ranking and conversion.

Optimize Your Product Listing for SEO

4. Drive External Traffic with Affiliate Marketing

Affiliate marketing connects you with content creators, influencers, and niche publishers who promote your products in exchange for commissions. This helps you tap into new audiences beyond Amazon’s marketplace. 

The best part? When you send external traffic to Amazon, you often benefit from the Brand Referral Bonus program (if you’re brand-registered), effectively lowering your overall fees.

How to Do It

  • Set Up an Affiliate Program: Offer special commission rates to incentivize affiliates to spotlight your products.
  • Use Automated Software: Manage multiple affiliates, track sales, and handle payouts without the manual hassle. This ensures transparency and trust.
  • Promote Unique Links: Provide each affiliate with a unique Amazon tracking ID, link, or coupon code.
  • Recruit Targeted Influencers: Focus on influencers whose audience aligns with your product category. For example, makeup influencers can cover a vast variety of products. 

Pro Tip: Highlight how affiliates can sell on Amazon effectively through your products—many micro-influencers love promoting items that solve a problem or match their content theme, family influencers are an example. The more relevant the product is to its audience, the better the conversion rate.

5. Build Customer Loyalty & Expand

Every Amazon seller dreams of a consistent revenue stream. While winning new customers is crucial, retaining existing ones can be more cost-effective. By delivering exceptional customer service and post-purchase support, you transform one-time buyers into repeat customers, which is key to long-term success.

How to Do It

  • Automated Follow-Up Emails: Within Amazon’s guidelines, send helpful tips, recipe ideas (if relevant), or user guides.
  • Brand Registry Tools: If you have a registered brand, use Amazon’s Brand Analytics to understand shopper behavior.
  • Promotions & Coupons: Occasional deals can encourage repeat purchases—especially in competitive niches.
  • Cross-Selling: Expand your product line to complement existing offerings. Loyal buyers will be open to exploring more from your brand.

Pro Tip: Encourage satisfied customers to join your external email list or social media channels (if it complies with Amazon TOS). That way, you can reach them outside Amazon’s ecosystem.

Conclusion

Learning how to sell on Amazon is an ongoing process and you can continually refine your strategy for higher revenue and sustainable growth. 

In the meantime, you can handle your Amazon affiliate marketing operations with Algorift, which rises above the crowd thanks to its robust feature set, automated solutions, and extensive network of affiliates. 

In the end, keep enhancing your strategy and regularly update your products on Amazon, you will surely succeed! 

FAQs

Now let’s answer some frequently asked questions about this topic:

Q1. What Is Amazon Affiliate Marketing For Sellers?

It’s a strategy where sellers partner with affiliates (bloggers, influencers, content creators) who promote their products through unique Amazon tracking links. When an affiliate drives a sale, they earn a commission. This is mutually beneficial: the seller gains external traffic and sales, while the affiliate earns income.

Q2. Does Amazon Allow Sellers to Create Their Own Affiliate Programs?

Yes, Amazon encourages external traffic. You just need to follow Amazon’s policies and use compliant tracking methods (such as Attribution links or promo codes). Tools like Algorift make this process seamless and TOS-compliant.

Q3. How Do Affiliates Get Paid If I Use Software Like Algorift?

Algorift handles automated payouts. Each affiliate’s sales are tracked in real time, and the platform calculates commissions. You fund your program’s payout account, and Algorift distributes earnings to affiliates on your behalf.

Q4. Can I Sell on Amazon For Free and Still Run Affiliate Campaigns?

You can technically create a seller account without monthly subscription fees if you opt for the Individual plan, but referral fees still apply per sale. “Free” in this sense means no monthly professional fee. Running affiliate campaigns through a tool like Algorift can also be done on a performance basis, so you only pay commissions on actual sales generated.

Q5. How Do I Attract The Right Affiliates For My Product?

Target affiliates whose audience aligns with your niche. For example, a baby product seller should work with parenting bloggers or family-oriented YouTubers. A dedicated affiliate network or a platform like Algorift can help you discover relevant partners.