How to Start Selling on Amazon in 2026: Fees, FBA and a Step-by-Step Guide

To start selling on Amazon in 2026, you register a seller account in Seller Central, pick a selling plan, list your products and choose who ships them: you, or Amazon through Fulfillment by Amazon (FBA). In the US, the Individual plan costs $0.99 per item sold and the Professional plan costs $39.99 a month, and on top of that you pay a referral fee of 5% to 45% per sale, depending on category (15% for most "everything else" items), plus FBA fees if Amazon ships for you. In India, Amazon now charges zero referral fee on products under ₹1,000 in more than 1,800 categories. This guide covers the costs, the steps and the main differences between marketplaces.
How does selling on Amazon work?
Third-party sellers list products in Amazon's store and Amazon takes a cut of each sale. You manage everything – listings, prices, stock, orders and payouts – in Seller Central, Amazon's seller dashboard.
Each Amazon marketplace (Amazon.com, Amazon.co.uk, Amazon.de, Amazon.in and so on) has its own fees, rules and tax requirements. You register for the marketplace where your customers are, and you can expand to others later through Amazon's Global Selling programme.
There are two basic ways to fulfil orders:
- Fulfillment by Amazon (FBA): you send stock to Amazon's warehouses and Amazon picks, packs, ships and handles returns and customer service. FBA items are generally eligible for Prime.
- Fulfilled by Merchant (FBM): you store and ship orders yourself or through your own courier.
How much does it cost to sell on Amazon?
Your total cost per sale in the US is made up of these parts, according to Amazon's US pricing page (sell.amazon.com):
| Fee | US amount | When you pay it |
|---|---|---|
| Selling plan – Individual | $0.99 per item sold | Every sale |
| Selling plan – Professional | $39.99 per month | Monthly, regardless of sales |
| Referral fee | 5%–45% of the total price depending on category, or a per-item minimum (usually $0.30), whichever is greater | Every sale |
| Closing fee (media only) | $1.80 per item for books, DVDs, music, software and video | Every media sale |
| FBA fees | Fulfilment fee per unit by size and weight, plus monthly storage | Only if you use FBA |
| Optional costs | Advertising, Amazon Vine, premium services | If you use them |
Some referral rates from Amazon's US pricing page:
| Category | US referral fee |
|---|---|
| Clothing and Accessories (items $15 or less) | 5% |
| Most other categories ("Everything Else") | 15%, $0.30 minimum |
| Amazon Device Accessories | 45%, $0.30 minimum |
Gift Cards, Grocery and Gourmet and Media have no per-item minimum listed. Check the full category table in Seller Central before you price, because many categories use tiered rates.
Amazon does not publish FBA fee amounts on its main pricing page; it points sellers to a separate FBA fee schedule and its Revenue Calculator, which compares FBA and self-fulfilment costs for a specific product. Because fulfilment fees depend on exact size tier and weight, use the calculator rather than a generic figure.
A simple way to estimate your profit per sale
| Step | What to subtract |
|---|---|
| Start with | Your selling price |
| Minus | Referral fee (category rate × price, or the minimum) |
| Minus | $0.99 per item if on the Individual plan |
| Minus | FBA fulfilment fee and storage, or your own shipping cost |
| Minus | Product cost, packaging, inbound shipping, returns and ads |
| Equals | Your profit per unit |
Editor's tip: Professional plan sellers should spread the $39.99 monthly fee across their expected monthly units. At 100 units a month it adds about $0.40 per unit; at 10 units it adds about $4.
Individual vs Professional plan: which should you choose?
Amazon's US guidance is straightforward: the Individual plan suits sellers who sell fewer than 40 items a month, and the Professional plan suits higher volumes. At 40 sales, Individual fees reach $39.60, roughly the same as the monthly Professional fee.
| Individual | Professional | |
|---|---|---|
| Plan fee (US) | $0.99 per item sold | $39.99 per month |
| Listing | One product at a time | Bulk listing and inventory tools |
| Pricing | Static prices | Automated pricing tools |
| Advertising with Amazon Ads | No | Yes |
| Brand tools (enhanced pages, Stores) | No | Yes, with Brand Registry |
| Sell B2B via Amazon Business, apps and APIs | No | Yes |
| FBA | Yes | Yes |
| Best for | Testing, fewer than 40 sales a month | Growing businesses |
Amazon says Professional sellers pay a one-time registration fee and the monthly subscription is waived until they list their first product. You can switch or cancel your plan at any time after registering.
How do I register as an Amazon seller? (step by step)
Amazon's US registration guide lists what you need:
- A government-issued ID.
- An email address.
- An internationally chargeable credit card.
- A bank account and routing number.
- A business licence or registration.
- Proof of residential address from the last 180 days, such as a bank or card statement.
- Tax information.
Then:
- Choose your marketplace and plan. Go to sell.amazon.com (or your country's sell.amazon site) and pick Individual or Professional.
- Create your account with an email and password.
- Enter business details: business location, type and name, registration number, registered address and phone number.
- Add seller information for the primary contact person.
- Add bank and credit card details for payouts and fees.
- Complete identity verification. Amazon says this usually takes three business days or less.
- List your products. Match an existing listing if the same product is already sold, or create a new one with title, photos, bullet points, price and stock.
- Choose fulfilment (FBA or self-fulfilment) for each product, then go live.
Some categories, such as certain beauty, health, food and branded goods, require approval before you can sell in them.
Should I use FBA or ship orders myself?
| Fulfillment by Amazon (FBA) | Fulfilled by Merchant (FBM) | |
|---|---|---|
| Who stores stock | Amazon | You |
| Who packs and ships | Amazon | You or your courier |
| Returns and customer service | Amazon | You |
| Prime badge | Generally yes | Only through Seller Fulfilled Prime, if eligible |
| Main costs | Per-unit fulfilment fee plus storage | Your own shipping, packaging and time |
| Best for | Steady, standard-size products | Bulky, slow-moving or made-to-order items |
Amazon says shipping with FBA costs 70% less per unit than comparable premium options from other major US carriers, based on its own comparison. New Professional sellers in the US can also get FBA incentives, which Amazon lists as $100 off inbound shipments using its Partnered Carrier programme, a $400 credit for inbound placement costs, and free storage and returns for eligible new products through the FBA New Selection programme.
Editor's tip: Send a small batch of your best seller to FBA first. Slow-moving stock in Amazon's warehouses builds up storage fees.
How much does it cost to sell on Amazon UK and in Europe?
Amazon's UK pricing page (sell.amazon.co.uk) lists:
- Individual plan: £0.75 (excl. VAT) per item sold.
- Professional plan: £25 (excl. VAT) per month.
- Referral fees: most between 8% and 15%, with a typical £0.25 per-item minimum.
Amazon announced fee cuts across its European stores for 2026:
- From 15 December 2025, FBA fulfilment fees for parcels fell by an average of £0.26 in the UK, Germany, France, Italy and Spain stores.
- Clothing and Accessories referral fees fell from 8% to 5% for items up to £15, and from 15% to 10% for items between £15 and £20.
- From 5 January 2026, Home Products dropped from 15% to 8% for items up to £20, Pet Clothing and Food from 15% to 5% for items up to £10, and Grocery and Gourmet plus Vitamins, Minerals and Supplements from 8% to 5% for items up to £10.
- Low-Price FBA rates now cover most products priced at or below £20.
UK and EU sellers also need to handle VAT registration where required, which is the biggest practical difference from selling in the US.
How to sell on Amazon India (Amazon.in)
India runs on a different fee system, and 2026 brought a major change.
What changed for Amazon India sellers in 2026?
On 2 March 2026 Amazon India announced a fee revision effective 16 March 2026. According to Amazon's press release:
- Zero referral fees now cover more than 12.5 crore products priced under ₹1,000 across 1,800+ categories, up from 1.2 crore products in 2025 when the threshold was ₹300.
- Easy Ship fees fell by more than 20% for products priced below ₹300.
- Sellers shipping multiple units in one box can save 90% or more on selling fees for the second unit.
- Amazon says sellers can save "up to 70%" in fees.
Amazon's own worked examples (per unit, products under 500 g):
| Product | Price | Fulfilment | Fees before | Fees after | Saving |
|---|---|---|---|---|---|
| Fashion jewellery necklace set | ₹999 | Easy Ship | ₹324 | ₹100 | ₹224 (69%) |
| Earphones | ₹798 | FBA | ₹248 | ₹109 | ₹139 (56%) |
| T-shirt | ₹299 | Easy Ship | ₹71 | ₹56 | ₹15 (21%) |
Third-party seller services reported further closing-fee changes and a new cancellation fee for Easy Ship and Self Ship orders from September 2026; we could not confirm the figures on an Amazon primary source, so check Seller Central.
What fees does Amazon India charge?
| Fee | What it is |
|---|---|
| Referral fee | Percentage of price by category; zero under ₹1,000 in 1,800+ categories since 16 March 2026 |
| Closing fee | Fixed per-unit fee by price band and fulfilment channel |
| Shipping / weight handling fee | For Easy Ship and FBA, based on weight, size and distance |
| FBA fees | Pick and pack, storage and other fulfilment centre fees |
GST at 18% is charged on Amazon's fees. You also collect GST on your sales, and Amazon collects TCS (tax collected at source), which you can claim as credit. Because GST applies to fees, removing a referral fee saves about 1.18 times its amount.
How to register on Amazon.in
You register at sell.amazon.in with a PAN, a GSTIN (required for most categories), a bank account in the business's name, a mobile number, email and pickup address. Registration has no upfront fee; you pay selling fees when you make sales. Food sellers need an FSSAI licence, and some categories require brand authorisation.
FBA vs Easy Ship vs Self Ship in India
| FBA | Easy Ship | Self Ship | Seller Flex | |
|---|---|---|---|---|
| Who stores stock | Amazon | You | You | You (warehouse run with Amazon) |
| Who delivers | Amazon | Amazon picks up from you | You or your courier | Amazon |
| Best for | Fast-moving, standard items | Beginners, small catalogues | Bulky, fragile or local items | Larger sellers with a warehouse |
For most Indian beginners, Easy Ship is the simplest start: you keep stock and pack orders, and Amazon collects and delivers. If you use repricing tools, check how they treat the ₹1,000 line – nudging a ₹989 item to ₹1,009 could bring back the referral fee.
Common mistakes new Amazon sellers make
- Pricing before checking fees. Run every product through the Revenue Calculator first; size and weight fees can wipe out thin margins.
- Choosing the wrong plan. Under 40 sales a month in the US, Individual is usually cheaper.
- Ignoring returns. Clothing and electronics accessories see more returns; build them into your margin.
- Weak listings. Blurry photos and keyword-stuffed titles reduce sales and increase returns.
- Overstocking FBA. Months of unsold stock locks up cash and adds storage fees.
- Selling restricted or counterfeit goods. This can get listings removed and accounts suspended.
- Running ads without a budget cap. Set daily limits and review search-term reports weekly.
FAQ
How much does it cost to start selling on Amazon?
In the US, the Individual plan has no monthly fee and charges $0.99 per item sold; the Professional plan costs $39.99 a month. Referral fees and any FBA fees come on top. In India, registration is free and you pay fees only when you sell.
What is Amazon's referral fee?
It is a percentage of each sale's total price, set by category. In the US it ranges from 5% to 45%, with 15% for most "everything else" products and a usual minimum of $0.30. In the UK most referral fees are 8% to 15%.
Is Amazon FBA worth it for beginners?
It can be for small, steady-selling products, because Amazon handles shipping and returns and your items usually get Prime. For bulky or slow-moving products, storage and fulfilment fees can outweigh the benefit. Compare both options in the Revenue Calculator.
Do I need a business to sell on Amazon?
Amazon's US registration asks for a business licence or registration, ID, tax information and a bank account. Requirements vary by country; India requires a PAN and, for most categories, a GSTIN.
How long does Amazon seller verification take?
Amazon says identity verification in the US usually takes three business days or less.
Is the referral fee really zero below ₹1,000 on Amazon India?
Since 16 March 2026, Amazon says referral fees are zero for over 12.5 crore products under ₹1,000 across 1,800+ categories. Closing and shipping fees still apply.
Can I sell on Amazon from another country?
Yes. Amazon's Global Selling programme lets sellers list in other marketplaces, but you must meet each marketplace's tax, registration and product rules.
Sources
- https://sell.amazon.com/pricing
- https://sell.amazon.com/sell
- https://sell.amazon.com/fulfillment-by-amazon
- https://sell.amazon.co.uk/pricing
- https://press.aboutamazon.com/in/2026/3/amazon-announces-zero-referral-fees-on-over-12-5-crore-products-sellers-to-save-up-to-70-in-fees
- https://sell.amazon.in/
- https://www.storyboard18.com/amp/digital/amazon-india-eliminates-referral-fees-on-12-5-crore-products-priced-under-%e2%82%b91000-91071.htm
- https://www.mapmychannel.com/blog/amazon-india-announces-zero-referral-fees-march-2026
Featured image: Amazon. Source