How to Create an Amazon Store – How it works

If your thinking about how to create an Amazon store, there are a few things to consider first. The first would be you need some working capital. Second you will have to be able to find wholesalers and distributors to buy product from.

These 2 are the most important parts of building your Amazon store. But lets go through all the smaller steps and materials you will need once you sign up.

What you need material wise

  1. Printer – ink jet or laser doesn’t really matter
  2. Shipping labels – for all your shipments
  3. Tag labels -30 per sheet and will be used to tag your products
  4. Boxes – to ship your products to Amazon
  5. Scale – to weigh your shipments and print shipping labels
  6. Tape gun – to tape up boxes before shipping

Let me go through the process so you know why you need these materials and how it all flows.

There are 2 types of stores. One is a personal sellers account which is free but it does have its limitations and has some extra costs involved. The second is a professional sellers account, which gives you full access and additional discounts on things like shipping costs.

When setting up the store you will need to provide your bank account information and a credit card. These are used for charges and payments to Amazon. I also suggest that you create an email just for your new Amazon business.

While your filling out this information you will be asked what departments you will be wanting to sell in. Leave it blank and check the not sure button. This way your allowing yourself to sell in all departments.

Once you fill out the forms, you will be signing into your new sellers central account using the email and password you provided them. All your communications will also be through that email, that’s why you should have it separate from your personal account.

Top of your dashboard in Amazons seller central

The 8 tabs along the top, each with multiple drop down menus, is where you will manage your new sellers account. You add products, manage prices, manage orders, get reports, etc.  

Once your store is all set up (I will provide the link at the end) now you need product to sell. This is where the distributors and wholesalers will be needed. But let me tell you first about a quick way to get some merchandise into your store.

Retail Arbitrage

This refers to going to a store like Walmart and going to their clearance
department/section. There you can find items that are being closed out at a good price. For you to know if its a good deal for you to buy, you need an Amazon sellers app for your phone.

This you can get at the app store or ITunes. The symbol looks just like the picture on the right. Once you have this on your phone, it turns your camera on your phone into a scanner. You can scan the product as a whole or just scan the bar code.

This is an amazing app, it will tell you the current price, how many seller there are, what Amazon fees are, if you can sell the product or if its a restricted item. There are products that you can not sell because of some reason. It could be that the manufacturer is the only seller, or another independent seller has gotten the rights to be the only seller, etc.

It has a revenue calculator so you can see if the product would be profitable to sell with all the fees attached. You can find some good products to sell using this little app, but your income will be limited. The only way to make some real money with a seller account at Amazon is to be able to buy direct from wholesalers.

Back to the process

You purchase products from a retail store or wholesaler. If buying from a wholesaler/distributor, the products will be shipped to YOU. So weather you bought the products locally or wholesaler, you will have the products at your home.

Now you add the products into your store through your seller central account with Amazon. When adding the products, you will print a tag called an ACIN. An acin is Amazons sku# and how they track everything that goes through their system.

You will tag each product over the upc#, repack the products in their boxes, print the shipping label(the shipping charges will be posted to your sellers account) and send the packages to Amazon.

Once Amazon receives the product, it will show up in your inventory list and you set your price and its now live and ready to sell. At this point Amazon will take care of it. They pack and ship it when you sell one, handle all the customer calls, post the payment to your account.

You do have to maintain a good record with any customer questions, best to answer them within 24 hours. Keep your products in stock, reply to any manufacturers questions, etc.

The 4 ways to buy products

Retail Arbitrage – as we discussed earlier
Distributors – will give you a better profit margin
Wholesalers – Better profit margin but will have to buy larger quantities
Private Label – The best way to change your financial future – larger profits

Basically this is how the process works. I know it seems complicated and involved, and it is. But having an Amazon store, if your willing to put the initial work in, once set up and running, can be life changing. But you need the funds and knowledge to buy direct to make the most you can. 

How do you sign up for a store? 

Go to any Amazon page, scroll down to the bottom of the page and you will find the following. You want to click on the link that says “sell on Amazon”

The other circled link is to become an Amazon affiliate. I have a post on how to start an Affiliate website business here

I do have my own Amazon store and what I can tell you so far is that Shipping Costs are the biggest obstacle to overcome. Shipping charges eat away at your bottom line. That is why you have to eventually get to a manufacturer and buy direct. It gets the lowest cost, so the shipping charges and Amazon fees don’t take all your money.

The best possible situation is if you can find a good selling product, find a wholesaler and have the product private labeled. Then you have no competition with selling the product and can be making a good amount of income. 

I was shocked at what is selling quickly on Amazon. Products you would never think would sell at a particular price. One example is an 18 package of tubular plastic hangers. Something you can find at WalMart for under $2.00 is selling for $8.99. But I guess its the convenience of buying from home and not having to go out to the dollar store.

A little inside information

For those that have the funds and want to build an Amazon store, Amazon is slowly getting out of the “Buying/Selling” and letting more and more store owners do all the buying of products and selling on their site. I think at some point in the future, they will have the site, but all the sellers will be store owners.

With that being said, there is going to be some really good opportunities for the store owners down the road. Also, if you get your hooks into a good wholesaler, you will be ahead of more than 50% of all the sellers.

One thing that can help your new Amazon store is having a website to promote your store. You could list items that you have for sale on Amazon, and direct them directly to your product listings. Once you have your store built, start a small website, does not have to be a big site, one page at a time. 

This is one particular instance that I find the free offer at Wealthy Affiliate worth so much. You can sign up for free, get 2 free websites and some basic training if your unsure of how to start a website. 

Personal note: If you use this option, sign up when you have some good time to spend there. With the free sign up, you will get access to EVERYTHING they have for 7 days. Take advantage of that time to get as much training as you can, talk to other members in the extremely live chat area and make the most of the time.

As you add products to your store, add a page to your website, promote it through social media and your store will get a good, shot in the arm as they say.  

Other than owning a store on Amazon, I have no affiliation with them. If you start a store, I am not going to make a penny from your decision. This post is merely providing information about the opportunity.

I hope you found this information useful and informative.
All my best to your success,

PS: Please leave a comment if you have a minute… Thanks 


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