Beginner’s Guide to Selling on Amazon

Amazon isn't for everyone

This is what you will find in a $50–$100 Amazon starter course but better.

You’ve probably heard it before:

“Just go to Ross, Marshalls, or Walmart, buy stuff cheap, and flip it on Amazon!”

Let’s be clear—this is extremely misleading.

While retail arbitrage worked for some in the early days, Amazon has cracked down hard:

• It’s frowned upon because the items don’t come with valid distributor invoices

• Most brands and categories require authorization and compliance

• Amazon regularly suspends or bans accounts for listing items without proof of authenticity

Yes, some sellers still get away with it for a while. But when Amazon’s compliance team eventually flags your account, it’s often game over.

Once your Amazon seller account is banned or suspended whether personal or business you’re done.

Amazon tracks everything: names, addresses, bank accounts, IPs, and even your internet device. You will not be able to open another account. You think you will and two weeks later you get an email that you have been denied.

That’s why it’s so important to do it right from the beginning.

• Work with approved wholesalers

• Keep your documentation clean and consistent

• Stay within Amazon’s policies

• Treat this like a real business — because it is

1. Form Your Business

The very first step is setting up your LLC in your state of residence. You’ll also need to obtain a Reseller Certificate (sometimes called a Sales Tax Permit) from your state’s Department of Revenue to buy wholesale tax-free.

(I can sell on amazon without an LLC. Sure, but you will fail and you can’t buy wholesale from many distributors without an LLC)

Pro Tip:

When establishing a name for Wholesale purposes make it generic. You don’t want to tie yourself to one specific industry or product type.

Use platforms like Bizee.com to handle your LLC formation, EIN, operating agreements, and banking resolutions. Expect this process to take about 2–3 weeks.

Purchase a domain on Google and set up a business email. (Example: Buy the domain bestdistributors.com then buy the email workspace from google and set up sale@bestdistributors.com)

Setting up a website isn’t necessary but can come in handy in the long run. This website can be generic but should include all relevant information on your business. And example would be we are a distributor for XYZ products. You can buy from us call to inquire!

After you get your documents go get a business account set up at your local bank. Do everything through your business account.

2. Open Your Amazon Seller Account

Once your LLC is active and your documentation is ready, go to sell.amazon.com and start the registration process. It takes around 1–2 weeks for full approval.

You’ll need to submit:

• Government-issued ID

• Utility bill or bank statement (showing your business address)

• EIN/tax ID

• Business checking account

• Credit card

• Phone number and email address

Important: Your business name and address must match all documents and your Amazon account. Any mismatches can delay or even suspend your application.

3. Understand Category & Brand Restrictions

When you first start selling, your account will have limited access to certain categories (like name-brand cleaning products). Amazon wants to confirm that you’re a legitimate reseller.

To unlock categories or specific brands, you must:

• Submit legitimate wholesale invoices from an approved distributor

• Ensure your invoices match your registered business address

• Avoid arbitrage tactics like buying from Walmart or Target – Amazon will reject those invoices

This is where most new sellers run into problems and risk losing money or getting suspended.

4. Packaging & Compliance Requirements

Whether you use FBA (Fulfilled by Amazon) or ship directly (FBM), Amazon has strict packaging and labeling rules. For example:

• Items must be in poly bags if they contain multiple components or risk leakage

• Every product must have a scannable UPC or FNSKU barcode

• You’ll need to invest in a label printer, barcode scanner, scale, poly bags, and shipping materials

• Suffocation warning labels are required on poly bags

• All units must be prepped exactly to Amazon standards or risk being rejected

If you’re starting out from home without a logistics process, this setup can feel overwhelming. But failing to comply means your shipments could be rejected, delayed, or flagged for suspension.

5. Find a Wholesale Distributor

Let’s use cleaning products as an example.

Here are verified wholesale distributors that allow resale and sell cleaning products in bulk:

• WholesaleCleaningSupplies.com – Offers household brands like Clorox, Lysol, and Tide

• RBTradingCorp.com – Specializes in bulk consumer goods, including cleaning supplies

• SourceSupplyCompany.com – Janitorial and household product distributor

• The Home Depot Pro – Commercial-grade cleaning and maintenance supply source

• Bio Pac Inc. – Offers bulk eco-friendly cleaning products

Note: Always contact the distributor directly and confirm that they allow resale on Amazon. Many require an application or business verification before you can order. Make sure your Invoices are accurate with all your business information and address. Keep copies of everything.

6. Choose Your Fulfillment Method

You have two primary options for selling on Amazon:

A.     FBA (Fulfilled by Amazon)

You ship your inventory to Amazon’s warehouse. They store, pack, and ship it for you (Fee’s Apply).

• Pro: Prime-eligible, faster delivery, hands-off shipping

• Con: Higher fees, requires upfront investment in inventory

B.     FBM (Fulfilled by Merchant)

You store the products yourself and ship them directly to the customer.

• Pro: Lower costs, more control

• Con: More time-consuming, less exposure

Choose the method that best fits your budget, volume, and resources.

7. The Competition IS REAL

Selling on Amazon is not a get-rich-quick scheme. It’s competitive, especially in categories like cleaning supplies. Big brands dominate the Buy Box, and price wars can kill your margins fast.

Focus on:

• Niche products

• Quality listings with SEO-optimized titles and bullet points

• Building a brand and getting customer reviews

8. Final Thoughts & Pro Tips

• Always match your documentation: Name, address, and company info must be consistent across your LLC, Amazon account, and invoices.

• Invest in your setup: Label printers, scales, and packaging supplies are part of the cost of doing business.

• Don’t cheap out on compliance: One error can cost you your account.

• Avoid the hype: You don’t need a $100 course. Just execute the steps properly.

If you want help or a free walkthrough, use the link below to connect with someone who’s sold on Amazon and can coach you through your first product launch.

⚠️ Warning: Don’t Fall for the Hype

There are far too many scams out there targeting new Amazon sellers. Here’s what to watch out for:

1. The $30K–$40K “Passive Income” Scam

If someone promises you that a one-time payment of $30,000–$40,000 will make you a millionaire through a “fully automated Amazon store,” run the other way.

• These companies usually resell non-compliant or restricted items,

• They often use shady suppliers or fake invoices,

• Your Amazon account will get suspended, and

• You’ll be left with maxed-out credit cards and no way to recover your investment.

2. Never Pay to “Unlock” Categories or Brands

Some companies will charge $3,000–$5,000 to “ungate” restricted categories or unlock specific brands and trademarks.

This is a violation of Amazon’s terms and will get your account banned.

There is no shortcut to category approvals—you must follow Amazon’s official procedures and use legit distributors.

3. Amazon Is a Real Business, Not a Passive Side Hustle

If you’re not willing to be hands-on and treat this like a full business, Amazon selling is not for you.

It’s the digital equivalent of a brick-and-mortar store:

• You still deal with inventory, shipping, customer service, and logistics.

• Amazon will take a significant portion of your profits through fees, storage, and fulfillment.

This is not a get-rich-quick scheme. It requires time, effort, money, and most importantly—accountability.