Table of contents
- What is Amazon Business?
- Top Benefits of Starting a Business with Amazon
- Different Ways to Start a Business on Amazon
- Step-by-Step Process to Start an Amazon Seller Business
- Amazon FBA vs FBM – Which One is Better?
- Cost Involved in Starting an Amazon Business
- Tips to Succeed as an Amazon Seller
- Amazon Business Statistics (2025)
- Common Mistakes to Avoid
- Conclusion
- FAQs – How to Start a Business with Amazon
Amazon has become a game-changer for anyone who wants to start an online business in India or globally. With over 300 million active customers and the trust of being one of the biggest marketplaces, it offers a golden opportunity for entrepreneurs to sell their products online and earn profits from the comfort of their homes. If you’re wondering how to start a business with Amazon, this beginner-friendly, in-depth guide will walk you through the exact steps, benefits, costs, and everything else you need to know.
What is Amazon Business?
Amazon Business is a platform that allows individuals, startups, and enterprises to buy and sell products online. As a seller, you can showcase your products to millions of buyers who visit Amazon every day.
There are two major types:
- Amazon Business for Buyers: To purchase in bulk for businesses.
- Amazon Seller Central: For sellers like you to register and start selling online.
Top Benefits of Starting a Business with Amazon
✅ Low Investment, High Reach
✅ No Need for a Physical Store
✅ 24×7 Sales Opportunity
✅ Trusted Payment System
✅ Marketing & Logistics Support via Amazon FBA
✅ Mobile App for Business Tracking
Noteworthy Point: Over 1.9 million small businesses sell on Amazon worldwide.
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Different Ways to Start a Business on Amazon
Here are various models you can choose from:
| Business Type | Description |
|---|---|
| Retail Arbitrage | Buy low offline, sell high on Amazon. |
| Wholesale | Buy in bulk from suppliers and sell at retail price. |
| Private Label | Create your own brand and sell under that label. |
| Dropshipping | Buy in bulk from suppliers, and sell at retail price. |
| Amazon FBA | List products online, and the supplier ships directly. |
| Handmade Goods | You send stock to Amazon, and they pack & deliver. |
Step-by-Step Process to Start an Amazon Seller Business
Step 1: Create an Amazon Seller Account
- Go to Amazon Seller Central
- Click on ‘Start Selling’
- Enter details like PAN, GST, bank info, and phone number.
Step 2: Choose the Right Product to Sell
🔎 Use tools like Amazon Best Sellers, Google Trends, or Helium 10.
📌 Focus on lightweight, in-demand, low competition products.
Step 3: List Your Products
- Add product title, images, bullet points, and description.
- Use keywords in titles and descriptions.
- Set a competitive price.
Step 4: Decide Fulfilment Type
Choose FBA (Fulfilled by Amazon) or FBM (Fulfilled by Merchant).
Step 5: Manage Orders & Customer Service
📲 Use the Amazon Seller App to track orders, reviews, and chats.
Amazon FBA vs FBM – Which One is Better?
| Feature | FBA | FBM |
|---|---|---|
| Inventory Storage | Amazon Warehouse | Your Own Space |
| Shipping | Amazon handles | You handle |
| Customer Service | Amazon takes care | You are responsible |
| Cost | More (due to FBA fees) | Less |
| Suitable for | Busy sellers, high volume sales | Beginners, low budget sellers |
🟩 Pro Tip: Start with FBM to save money. Shift to FBA as you grow.
ALSO READ | How To Start Selling on Amazon: A Beginner’s Step-by-Step Guide
Cost Involved in Starting an Amazon Business
| Expense | Estimated Cost (₹) |
|---|---|
| Amazon Seller Registration | Free |
| GST Registration | ₹500 – ₹1,000 |
| Product Sourcing | ₹5,000 – ₹50,000 |
| Packaging & Labels | ₹1,000+ |
| Amazon Referral Fee (avg) | 8% to 15% per sale |
| FBA Charges (if opted) | ₹30 to ₹120/item |
Tip: Start with ₹10,000–₹25,000 budget for small-scale setup.
ALSO READ | Amazon Affiliate Marketing: Complete Beginner’s Guide (2025 Edition)
Tips to Succeed as an Amazon Seller
- ✅ Use high-quality images and SEO-rich product titles.
- ✅ Respond to queries within 24 hours.
- ✅ Focus on customer reviews – more reviews = more trust.
- ✅ Offer cashbacks/discounts in the initial months.
- ✅ Use Amazon’s advertising tools (PPC).
- ✅ Keep stock levels updated to avoid “Out of Stock”.
Amazon Business Statistics (2025)
- 🛒 Amazon India has over 12 lakh+ sellers.
- 📦 68% of buyers trust Amazon over other marketplaces.
- 💰 Sellers report an average profit margin of 15-25%.
- 🚀 Top categories: Electronics, Fashion, Beauty, Kitchen.
Common Mistakes to Avoid
- ❌ Ignoring keyword research
- ❌ Using poor images or generic titles
- ❌ Pricing too high or too low
- ❌ Late shipping or stockouts
- ❌ Not responding to customer feedback
Need Expert Guidance?
Starting a business can be challenging, but you don’t have to do it alone! At Boss Wallah, our 2,000+ business experts are ready to provide valuable insights and guidance. Whether you need help with marketing, finance, sourcing, or any other area of your business, our business experts are here to help you succeed
Confused about Which Business to Start?
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Conclusion
Starting a business with Amazon in 2025 is one of the smartest and most affordable ways to build an online income stream in India. Whether you’re a student, a homemaker, or an entrepreneur, Amazon gives everyone a chance to grow digitally. Just follow the steps, stay consistent, and focus on product quality and customer satisfaction.
FAQs – How to Start a Business with Amazon
Yes, for most categories. However, a few categories, like books, may not need GST.
Amazon charges 8% to 20% depending on the product category.
Yes, via dropshipping or print-on-demand models.
It’s a mobile app to manage your business on the go – view orders, update listings, and chat with buyers.
Amazon settles payments every 7 days directly to your registered bank account.
Absolutely. You just need a smartphone/computer and an internet connection.
Yes. Many Indian sellers earn ₹50,000+ per month, even part-time.
Initially, yes, to get visibility. Amazon PPC can boost product ranking.
Yes, but only under certain categories like books, electronics (certified refurbished).
Start with 3-5 high-demand products and expand slowly.
