How to Start an Amazon Business

If you’re looking to start an Amazon business in the UK, you’re in the right place. Amazon is an excellent platform for creating and scaling your business or adding an extra revenue stream to an existing business.

Almost  90% of all UK shoppers  use Amazon, and as a result, Amazon is now the  5th largest retailer in the UK . This makes Amazon a popular choice for sole traders and limited companies as it provides enhanced exposure and access to millions of potential customers online.

This guide will cover the basics of starting an Amazon business in the UK, from choosing your products to  registering your company . We’ll also give you some tips for growing your Amazon business. Let’s get started.

What Is an Amazon Business?

Amazon is a popular platform for both sellers and shoppers. The simplicity of setting up on Amazon has persuaded millions of people who would have never considered going into business to start for themselves.

Others run a business via Amazon as a second source of income from their own brand’s online store. All you need to do to start selling on Amazon is  register a seller account .

The Benefits of an Amazon Seller Account

Amazon sellers enjoy many great benefits, so it’s a good choice if you’re looking to start an online business venture. For one, having an Amazon seller account gives you access to a ready-made customer base of millions of people who use Amazon daily.

In addition, as an Amazon seller, you’ll benefit from the company’s world-class marketing and distribution infrastructure, which can help you reach a wide audience quickly and efficiently.

Finally, Amazon seller accounts come with  Amazon Seller Central , which includes several helpful tools and resources that can make it easier to run your business. This includes customer support, order management and reporting features. 

If you are serious about starting an online business, an Amazon seller account is a great option to consider.

Starting an Amazon Business in 6 Steps

Step 1: Choose the Products You Want to Sell on Amazon

When you’re ready to start selling on Amazon, the first step is to choose the products you want to sell. There are a few things to keep in mind as you make your selection.

First, consider the demand for the product. If there are already a lot of other sellers offering the same thing, you’ll need to stand out from the competition.

Second, think about the cost of the product. You’ll need to be able to  price your items competitively  while still making a profit. It’s important to remember that Amazon takes a commission on each sale, so you’ll need to consider this when you price your products. If you price too low, you won’t make a profit. Go too high, and your customers might find a different seller.

Finally, make sure you have a reliable source for the product. You don’t want to run into stock shortages or quality control issues. Research your suppliers carefully to compare prices and look at reviews to check their reliability. 

PRODUCT YOU CAN SELL ON AMAZON

You can sell almost anything on Amazon, from books and electronics to clothing and furniture. If you’re looking for a product to sell, you must consider both the demand for the item and the competition you’ll face from other sellers. Make sure you conduct product research before you start making or ordering any products to sell.

To help you get started, here are just some of the  product categories  that you can sell on Amazon:

• Home and kitchen
• Toys and games
• Electronics
• Clothing, shoes and jewellery
• Books
• Arts and crafts
• Beauty and personal care.

PROHIBITED AND RESTRICTED PRODUCTS ON AMAZON

While you can sell almost anything on Amazon, there are some prohibited and restricted items. Although you might not plan to sell these products, it’s good to know of any  restricted products  before starting your Amazon business. The products include:

• Weapons
• Fireworks
• Medicines
• Tobacco products
• Any product that contains prohibited ingredients
• Any products that cannot be lawfully shipped in the UK.

Before starting your Amazon business, take the time to look into any restrictions on the type of product you plan to sell. Some require approval from Amazon, while others are banned entirely.

Step 2: Create a Business Plan

Before you set up your Amazon business, you must do your research. The vast number of sellers on Amazon means that the platform is highly competitive. You should consider the areas below when coming up with your business plan:

IDENTIFY YOUR USP

To sell on Amazon, you need to find a profitable niche. To have a profitable business, you need to research and  identify market trends  and competitive products that align with your passion and interests. Try to find a compelling selling point or create a new trendy one to make it viral on the market. We strongly suggest you do not involve seasonal or fragile products as these can easily result in negative reviews. 

START MARKET RESEARCH

Before launching your business and deciding on a niche, you must take some time to do thorough market research. Look at what potential competitors are doing and think about how you can make your offering stand out from the crowd. 

It’s often difficult for smaller businesses to compete on price (unless you’ve secured yourself an excellent supplier), so think about how you can demonstrate the superior qualities of your offering.

IDENTIFY FUNDING

You also need to consider whether you need any funding to achieve your goal of starting an Amazon business. You may have associated costs with setting up, such as purchasing products, advertising and organising logistics. 

There are a few options available for funding your Amazon business: 

• Friends and family investments
• Bank business loan
• Crowdfunding.

FIND PRODUCT SUPPLIERS

When you have decided on what products to sell, you’ll need to find your product supplier. You can find suppliers on Alibaba and other B2B platforms like AliExpress. You’ll probably find a few potential suppliers. Get their contact and additional background information if possible, and take your time comparing them. 

If possible, it’s a good idea to check the quality yourself. If this isn’t feasible, you can outsource this task to a professional quality inspector. Remember to order samples so that you can assess the product quality.

PUTTING TOGETHER YOUR BUSINESS PLAN

Once you’ve done your research, it’s time to put a business plan together. Creating a business plan might seem daunting, but it’s easier than you think. A business plan is simply a document that shows how you plan to succeed. In your business plan, you’ll need to include: 

• Marketing strategies
• Competitor research
• Services or products
• Finances
• Operational details.

Remember, your business plan is a living document, and you should regularly update it if your business changes. If you’d like to learn more, check out our  expert guide to putting your business plan together .

Step 3: Set Up Your Amazon Business Account

Once you have a clear business plan and products to sell, you can set up your Amazon account.

If you don’t have an Amazon seller account already, you’ll need to register as an Amazon seller. There are two types of accounts available:

• Individual Seller — This costs nothing per month, but you will be charged a seller’s commission fee for each item you sell on Amazon.
• Pro Seller — This includes more features but charges a monthly subscription. 

You can choose the account type based on your business budget.

To cope with the sellers’ rising demands, Amazon has rolled out its “ Fulfilment by Amazon ” (FBA) service. This service means Amazon will store your products in the Amazon inventory, fulfil your orders and offer customer service. 

Thanks to FBA, sellers can leverage the platform’s robust distribution network and customer base to make their business dream come true. For retailers, it’s the most popular choice of platform.

Using the Amazon FBA service is relatively simple. Just create an Amazon seller account and add FBA. It’s essential to set your business up in compliance with the guidelines on the website, but setting up an Amazon FBA business is easy.

HOW TO SET UP YOUR AMAZON SELLER ACCOUNT

Setting up your Amazon seller account is straightforward and won’t take long. Here’s what you need to do:

1. Go to  https://services.amazon.com
2. Go to the “Pricing” tab and select “Compare Selling Plans”
3. Choose your selling plan
4. Enter your email address and hit “Create a New Account”
5. Enter your “Business Type” and “Business Location”
6. Enter your personal information
7. Enter your billing information
8. Verify your identity and address.

Once you’ve completed those steps, your Amazon seller account is good to go.

Step 4: Creating Your Product Listings

Once your seller account is set up, you’ll need to create product listings to add your items to the platform. Include clear and high-resolution images to make your product listing appealing, ensure your products are “ Prime eligible ”, and enjoy the free shipping options for prime members.

If you don’t have many items, you can list them manually. However, If you have a lot of products, we recommend  uploading a spreadsheet  with all the relevant information. As soon as your products are listed, they’ll be available for customers to purchase, and your business can start making revenue.

WHAT TO INCLUDE IN AN AMAZON PRODUCT LISTING

If you want to boost sales on Amazon, you’ll need to ensure that your product listings appear in search results.

If you’re selling a product on Amazon, one of the most important things you can do is write a good product listing. Your listing will convince people to buy your product, so it’s crucial to include all the relevant information and make it as engaging as possible. Here are some things to keep in mind when writing your product listing:

• Include a clear and concise description of the product.
• Use high-quality images that show off the product in its best light.
• Be sure to list all the critical features of the product.
• Use bullet points and other formatting techniques to make the listing easy to read.

By following these tips, you can create an Amazon product listing to boost your sales and succeed on the platform.

Step 5: Register Your Amazon Business as a Company

Setting up an Amazon business in the UK is the same as starting any other company. If you make more than £1,000 a year on Amazon, you’ll need to  register a self-employed business  and pay taxes depending on your income. 

Every country has different rules and regulations regarding the taxes you must pay on income made from an  eCommerce enterprise , so please consult an accountant in your country of residence.

When you are ready to start your Amazon business in the UK, you need to register with  HMRC . If you plan to make selling online a large enterprise, you might consider forming a limited company. This will prevent cost risks from falling on you if the business fails. You can go the sole-trader route if it’s more of a side hustle. 

Whichever business model you choose, deciding and completing your company formation is crucial to your business success. We can help you  get set up fast and easily .

Step 6: Start Selling Products on Amazon

With your Amazon seller account set up, product listings live and your business registered, you might think you can sit back and relax. But this is the point where the hard work really starts.

While Amazon gives you access to a huge existing audience, there’s a lot of competition from other sellers. You’ll need to do everything possible to stand out in search results. There are three main ways to do this:

MARKETING YOUR AMAZON BUSINESS

Marketing your Amazon business doesn’t have to be complicated or expensive. In fact, there are several simple, effective ways to get the word out about your products and attract new customers. One of the most effective tools is  Amazon’s pay-per-click advertising program , which allows you to place ads on Amazon’s website and only pay when someone clicks on your ad.

You can also use Amazon’s search engine optimisation (SEO) features to ensure your products appear high in the search results when customers are looking for products like yours. 

Additionally, participating in  Amazon’s affiliate program  can help you generate sales and grow your business. You can earn a commission on each sale you generate by promoting Amazon products on your website, blog and social media channels.

BRANDING YOUR AMAZON BUSINESS

White labelling  is a great option to set your business apart from the competition. Many manufacturers offer to brand their products with your logo or label, and some will even brand the packaging for you.

This is an excellent way to make your products more recognisable and distinguishable from others on the market. Plus, it’s often affordable, so it’s worth considering if you want to give your business that extra edge.

SOURCING REVIEWS

As an Amazon seller, you’ll already know that reviews are essential as a  customer trust signal . They provide social proof that your product is worth buying and help improve your ranking in search results. 

Customers are more likely to buy from a seller with a high rating, even if the price is slightly higher. So if you’re looking to boost your sales on Amazon, focus on getting more reviews. It’s an investment that will pay off in the long run.

Other Options for Starting Your Online Business

Becoming an Amazon seller isn’t your only option if you want to start selling online. Depending on the products you sell, marketplaces may exist with a more suitable audience.

For example, Etsy might be better if you sell handcrafted goods. At Mint Formations, we help thousands of people start their own businesses every year. If you’re looking to start yours today, check out our guides to starting different types of online businesses:

• How to Start an eCommerce Business
• Starting an online business
• Starting an eBay business
• Starting an Etsy shop
• Starting an affiliate marketing business

Are you ready to start an Amazon business? We’ll secure your business name and  get your company registered  fast so that you can start doing what you love - compare our company formation packages we offer. If you have any questions about starting a business,  get in touch  with the Mint Formations team.