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How to sell on Amazon as a small business: plans, fees, FBA and account health

Plans, referral and FBA fees with dates, what to have ready to register, and the policy and tax points that trip up new sellers.

By Vagner Soares · Updated · 7 min read

Guide cover: How to sell on Amazon as a small business: plans, fees, FBA and account health

To sell on Amazon, register a seller account in Seller Central, pick a selling plan, list your products, and decide whether you will ship orders yourself or let Amazon do it. As of October 2026, Amazon's US pricing page shows two plans: Individual at $0.99 per item sold and Professional at $39.99 per month. Both pay a referral fee on every sale. Fees change, so check the page before you commit.

This guide is for a small business or a first-time seller. Every figure comes from an Amazon or government page we opened in October 2026, and each is dated. Treat them as a starting point, not a quote.

Individual or Professional: which plan fits

PlanCost (October 2026)What Amazon saysGood fit
Individual$0.99 per item sold, plus referral fee; no monthly feeLists one product at a time with static prices; some promotions and tools are not availableTesting a product; fewer than about 40 items a month
Professional$39.99 per month plus selling fees, however many items you sellBulk listings, brand management tools, detailed sales reports and advertising toolsSteady volume or a catalog to manage

The math: $39.99 divided by $0.99 is about 40, so from the 41st item in a month the Professional plan costs less in plan fees alone. That matches Amazon's own guidance that Individual may be best under 40 items a month. After you register, Amazon's seller FAQ says you can switch plans anytime from the Manage Your Services page in Seller Central.

What you need to register

The same FAQ lists what to have ready:

You upload your ID and proof of address, then take a photo of your face and ID or join a video call with an Amazon associate. Amazon sends funds by ACH to your bank account once your account is settled and has a positive balance; they can take up to five business days to appear. Payments cannot go to a credit card or an online payment system.

Fees: what you pay on top of the plan

On the pricing page, the referral fee is a percentage of the total price or a minimum amount, whichever is greater. The total price includes the list price, shipping and gift wrapping. Percentages vary by category, from 3% (the part of a watch's price above $1,500) to 45% (Amazon device accessories). Most categories have a $0.30 minimum. Examples: 15% for "Everything Else," and for clothing and accessories 5% up to $15, 10% from $15 to $20 and 17% above $20.

Worked example with a made-up price: a $25 item in the "Everything Else" category pays 15% of $25, which is $3.75. On the Individual plan add $0.99, so Amazon takes $4.74 before any fulfillment cost. Shipping you charge the customer counts toward the total price, so it raises the referral fee too.

Fulfillment by Amazon (FBA) adds a per-unit fulfillment fee that varies by category, size and weight, a monthly storage fee based on average daily volume, and surcharges such as aged inventory and disposal, per Amazon's fee overview (July 2025). For 2026, Amazon told sellers that FBA fees would rise by an average of $0.08 per unit sold from January 15, 2026, with no new FBA fee types. Advertising and other programs cost extra. Model your own product in Amazon's Revenue Calculator, which Amazon describes as an estimate tool.

FBA or FBM

QuestionFBM (Fulfilled by Merchant)FBA (Fulfillment by Amazon)
Who stores the inventory?YouAmazon, in its fulfillment network
Who packs and ships?You, with Amazon tools such as Buy ShippingAmazon picks, packs and ships
Customer service and returnsYouAmazon
What you payYour own packing and postagePer-unit fulfillment and storage fees

Amazon says FBA orders are Prime eligible, and that you can use FBM for all products or only some. My suggestion, not an Amazon rule: start with FBM on a few items to learn what sells, then move proven sellers to FBA once you can forecast demand and the per-unit fees fit your margin.

Create listings that match what shoppers search for

Amazon's 2026 seller guide (March 2026) describes the basics:

Some categories and products need approval before you can list, and counterfeit listings violate the seller code of conduct, so read the restricted-product policies first. Good photos help; see our guide to taking product photos with your phone.

Account health: the numbers to watch

Amazon's seller policies overview describes an Account Health Rating from 0 to 1,000 that estimates your risk of deactivation. Targets it names: order defect rate under 1%, late shipment rate (FBM) ideally under 4%, and cancellation rate below 2.5%. A post by Amazon staff in the Seller Central forums adds the bands (Healthy 200 to 1,000, At Risk 100 to 199, Unhealthy below 100, eligible for deactivation) and a valid tracking rate above 95%. Find the Account Health dashboard in Seller Central, act on performance notifications promptly, and manage inventory, because stock-outs cause cancellations. Review manipulation can cost you your listings or account. Amazon updates these targets, so confirm them in Seller Central.

Returns

The same policies page says sellers must accept returns within the 30-day return window for most products. A "no returns" policy is not allowed, and ignoring return requests or refusing a return label can lead to an automatic refund and possible suspension. With FBA, Amazon handles returns and customer service; with FBM, you do, so set your shipping and returns settings early.

If you ship orders yourself, the FTC's Mail, Internet, or Telephone Order Merchandise Rule applies too. If you state no shipping time, you must reasonably expect to ship within 30 days of a complete order. If you will be late, you must send a delay notice with a new date and a free way to cancel, and refund within seven working days after a cancellation.

Sales tax and income tax

Many states have marketplace facilitator rules, and they differ. As one example, the Texas Comptroller says marketplace providers must collect, report and remit sales and use tax on all sales made through a marketplace and certify to sellers that they will. If the provider certifies, you are not responsible for that tax on marketplace sales, but Texas sellers still need a tax permit and must file returns on time. Check your own state's tax agency (.gov); sales outside Amazon, such as your own website, follow general state rules.

For income tax, the IRS says online marketplaces send Form 1099-K when payments for goods or services exceed $20,000 in more than 200 transactions; the page gives no tax year, so confirm the one that applies on IRS.gov, because it changes. Whether or not you receive a form, you must report your income. For more options, see where to sell online and the beginner's guide to selling online.

Frequently asked questions

How much does it cost to sell on Amazon?

As of October 2026, Amazon lists the Individual plan at $0.99 per item sold and the Professional plan at $39.99 per month, plus a referral fee on each sale and optional costs such as FBA and advertising. Check sell.amazon.com/pricing, because fees change.

Do I need an LLC to sell on Amazon?

Amazon's registration FAQ lists ID, a bank account, a credit card, tax information and a business license or registration among the items to have ready. Whether you need an LLC or a state permit depends on your state and your plans, so ask your state agency or an accountant.

Is the Individual plan enough to start?

Amazon says Individual may be best if you sell fewer than 40 items a month, but it lists one product at a time and some promotions and tools are not available. You can switch plans anytime from Manage Your Services in Seller Central.

Does Amazon collect sales tax for me?

In states with marketplace facilitator rules, the marketplace collects and remits sales tax on marketplace sales; the Texas Comptroller's page is one example. Rules differ by state and do not cover sales outside Amazon, so check your state's tax agency.

Sources: Amazon Sell: Standard selling fees (US pricing) · Amazon Sell: Individual selling plan vs Professional selling plan · Amazon Sell: Frequently Asked Questions · Amazon Sell: How to sell on Amazon in 2026 · Amazon Sell: What are the fees associated with selling on Amazon? · Amazon Sell: Costs for optional selling services · Amazon Sell: Amazon seller policies to know to keep your business thriving · Seller Central Forums (Amazon staff): Stay in Control: A Seller's Guide to Account Health · Seller Central Forums (Amazon News): 2026 Updates to US Referral and Fulfillment by Amazon Fees · Texas Comptroller: Marketplace Providers and Marketplace Sellers · IRS: Understanding your Form 1099-K · FTC: Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule