The world of Amazon selling can feel like a maze, especially when you're trying to figure out the best way to get your products in front of millions of eager buyers. With numerous options, each with its own advantages and disadvantages, it’s easy to feel overwhelmed. But here’s the good news: you don’t have to navigate it alone. Whether you’re a newbie or a seasoned pro, understanding the different ways to sell on Amazon can help you pick the path that fits your business like a glove. And if you ever need a hand, you can always get help from FND eCommerce Amazon agency to guide you through the process.
In this guide, we’ll break down the various methods to sell your products on Amazon, so you can make an informed decision that aligns with your goals, budget, and resources. Let’s dive in!
The Different Ways to Sell Your Product on Amazon
Amazon offers several selling models, each tailored to different types of businesses. Whether you’re looking to handle everything yourself or let Amazon do the heavy lifting, there’s an option for you. Below, we’ll explore the most popular methods, their pros and cons, and who they’re best suited for.
1. Selling as a Third-Party Seller (3P) on Amazon Marketplace
What It Is:
As a third-party seller, you list and sell your products directly to customers through Amazon’s marketplace. You can choose to fulfil orders yourself or use Amazon’s services.
Best For:
- Sellers who want flexibility in how they manage inventory and shipping.
- Businesses looking to scale quickly with Amazon’s vast customer base.
Pros:
- Access to Amazon’s massive audience.
- Control over pricing and branding.
- Multiple fulfilment options.
Cons:
- Fees can add up, especially with FBA.
- Requires hands-on management (unless using FBA).
How to Get Started:
- Sign up for an Amazon Seller Account.
- Choose your fulfilment method (FBA, FBM, or SFP).
- List your products and optimise your listings.
Fulfilment Options for Third-Party Sellers
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Fulfilled by Amazon (FBA):
Amazon stores, packs, and ships your products. Best for sellers who want hassle-free logistics and the Prime badge.- Pros: Prime eligibility, hands-off fulfilment.
- Cons: Storage and fulfilment fees.
- Example: A small business selling skincare products uses FBA to handle shipping and customer service.
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Fulfilled by Merchant (FBM):
You handle storage, shipping, and customer service. Ideal for sellers with their own logistics setup.- Pros: More control, lower fees.
- Cons: No Prime badge, more hands-on work.
- Example: A seller of handmade crafts ships products from their home studio.
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Seller-Fulfilled Prime (SFP):
You fulfil orders yourself but meet Amazon’s Prime shipping standards. Best for sellers with fast, reliable logistics.- Pros: Prime badge without FBA fees.
- Cons: Strict shipping requirements.
- Example: A company with a robust warehouse system qualifies for SFP to offer Prime shipping.
2. Selling as a First-Party Seller (1P) via Amazon Vendor Central
What It Is:
You sell your products directly to Amazon as a wholesale supplier. Amazon buys your inventory in bulk and resells it.
Best For:
- Established brands with high sales volume.
- Manufacturers or suppliers looking for bulk sales.
Pros:
- Higher sales potential.
- Amazon handles pricing, fulfilment, and customer service.
- “Sold by Amazon” label boosts trust.
Cons:
- Lower profit margins.
- Less control over pricing and inventory.
- Invitation-only program.
How to Get Started:
- Receive an invitation from Amazon.
- Negotiate wholesale pricing and terms.
- Supply inventory based on Amazon’s purchase orders.
Example: A popular electronics brand sells directly to Amazon, which then resells the products to consumers.
3. Selling Through Amazon Private Label
What It Is:
You create your own branded product and sell it exclusively on Amazon.
Best For:
- Entrepreneurs who want full control over their brand.
- Sellers aiming for higher profit margins.
Pros:
- No direct competition on the same listing.
- Full control over branding and pricing.
Cons:
- Requires upfront investment in branding and manufacturing.
- Risk of slow sales without effective marketing.
How to Get Started:
- Source a product from a manufacturer.
- Create a unique brand name and register a trademark.
- Enrol in Amazon Brand Registry.
- List and promote your product with SEO-optimised content.
Example: A seller launches a line of eco-friendly yoga mats under their own brand, using Amazon as the primary sales channel.
4. Selling Through Amazon Dropshipping
What It Is:
You list products without holding inventory, and a supplier ships directly to the customer when an order is placed.
Best For:
- Sellers who want a low-investment business model.
- Those who prefer not to manage inventory.
Pros:
- No upfront inventory costs.
- Low financial risk.
Cons:
- Amazon’s strict dropshipping policies.
- Potential supplier issues can harm your account.
How to Get Started:
- Find a reliable supplier that meets Amazon’s policies.
- List products on Amazon.
- Sync orders with the supplier for direct shipping.
Example: A seller lists trendy phone cases on Amazon, with a supplier handling fulfilment.
5. Selling Through Amazon Handmade
What It Is:
A marketplace for artisans to sell handcrafted goods.
Best For:
- Artists and crafters with unique, handmade products.
Pros:
- Lower competition than regular Amazon listings.
- No monthly fees (only a 15% referral fee per sale).
Cons:
- Strict approval process.
- Limited to handmade or custom items.
How to Get Started:
- Apply for Amazon Handmade.
- Create a seller profile.
- List your handmade products with detailed descriptions.
Example: A jewellery maker sells custom necklaces on Amazon Handmade, tapping into a niche audience.
6. Selling Through Amazon Subscription Boxes
What It Is:
You offer products on a recurring basis, like monthly subscription boxes.
Best For:
- Businesses selling products that fit a subscription model (e.g., snacks, beauty items).
Pros:
- Recurring revenue.
- Builds customer loyalty.
Cons:
- Requires strong marketing and retention strategies.
- Strict approval process.
How to Get Started:
- Apply for Amazon’s Subscription Box Program.
- Set up subscription offerings in Seller Central.
- Promote your subscription boxes to customers.
Example: A coffee brand offers a monthly subscription box with different blends delivered to subscribers’ doors.
Choosing the Right Path for Your Amazon Business
Selling on Amazon isn’t one-size-fits-all. The best method depends on your goals, budget, and how hands-on you want to be. Whether you’re leaning toward FBA for its convenience, private labelling for brand control, or dropshipping for low risk, each path has its own rewards and challenges.
If you’re feeling stuck or just want to make sure you’re on the right track, it might be time to explore What does an Amazon agency do?. An agency can guide you through the maze of options and help you pick the perfect strategy for your business.