What Businesses Should Know About Selling with Amazon

May 28, 2025

Have you ever wondered how you can compete with large companies like Amazon (or Walmart)? Well, the more important question may be more not be how but why. Mega retailers, like the two mentioned, aren’t looking to only sell their own products. They have launched large programs encouraging small businesses to use their distribution platform.


So, do you really need to compete when you can harness their traffic to sell your goods on their sites?


How Do I Sell on Amazon?


According to Amazon, over 60% of its product sales now come from independent sellers, the majority of which are small businesses just like yours. These sellers have generated more than $2.5 trillion in sales over the past 25 years and now support over 2 million jobs in the U.S. alone.


That’s not a side hustle—that’s a serious economic force.


If you’re looking for a way to grow your reach, attract new customers, and build passive revenue, selling on Amazon might be your next smart move.


Here's what you need to know if you’re considering it:



1. Pick a Selling Plan That Fits Your Goals

Amazon offers two selling plans:


Individual Plan – Great for new sellers or those testing a few products. You pay $0.99 per item sold, with no monthly fee. It’s a good low-risk starting point.


Professional Plan – Costs $39.99/month regardless of volume. You unlock powerful tools, eligibility for the Featured Offer (formerly Buy Box), and better exposure. If you plan to sell over 40 items/month or want to scale, this is the plan to choose.


Pro Tip: Amazon doesn’t advertise the Individual Plan as clearly—it’s usually hidden at the bottom of the signup page.



2. Understand the Fees (So You Don’t Get Surprised)

Selling on Amazon isn’t free, and it’s important to plan ahead.


Key fees include:


·        Referral Fees – Amazon takes a cut of each sale, usually between 8–15%, depending on the category.

·        Fulfillment Fees – If you use Amazon’s fulfillment service (FBA), you pay for storage, shipping, returns, and more. These vary based on size, weight, and season.

·        Inventory Storage Fees – Charged monthly and can spike during the holidays.

·        Other Potential Costs – These include ads, removal fees, long-term storage, refund administration fees, and high-volume listing fees.

Use Amazon’s revenue calculator before listing to understand your costs and profit potential.



3. Choose How to Fulfill Orders

Amazon offers two fulfillment options:


Fulfillment by Amazon (FBA) – You ship products to Amazon, and they handle everything from storage to returns. Bonus: Your products become Prime-eligible, which can dramatically boost sales.

 

Fulfillment by Merchant (FBM) – You pack and ship orders yourself. You keep more control but also take on more responsibility.


Most sellers opt for FBA for its convenience and exposure, but FBM can be a good choice for custom, perishable, or local products.



4. Create Listings That Get Noticed

Your product listings are your virtual storefront. To maximize sales:


·        Use high-quality images (1000x1000 pixels recommended)

·        Write clear, keyword-rich titles (up to 200 characters)

·        Add bullet points that highlight product features and benefits

·        Include a compelling description


Don’t skip keyword research. Knowing what your customers are searching for can make or break your visibility. There are affordable tools available to help you with this.


And if you own your brand, register it with Amazon Brand Registry. It gives you added protection and access to advanced features like A+ Content and analytics.



5. Price for Success

Amazon shoppers love a deal—but that doesn’t mean you have to race to the bottom by trying to be the lowest one out there.


Instead:


·        Monitor competitor pricing (inside and outside of Amazon)

·        Use Amazon’s Automate Pricing tool to stay competitive

·        Understand the Featured Offer (Buy Box) – Winning this spot can dramatically increase your visibility and sales

Being competitive doesn’t always mean being the cheapest. Customer service, shipping speed, and seller ratings also play a role.



6. Advertise to Drive Sales

While Amazon brings the traffic, you still need to get your product in front of the right eyes. While the eyes are many on this site, so are the products. Most people will only scroll through so many pages of listings.


To stand out, consider using:


·        Coupons and discounts to grab attention

·        Sponsored ads (pay-per-click) – Sellers say 30% of their sales come from Amazon Ads

Start small, track results, and adjust your campaigns to improve performance over time. This is not a “set it and forget it” undertaking.



7. Track Performance and Scale Strategically

Amazon provides a robust Seller Central dashboard where you can monitor:


·        Order defect rate

·        Shipping performance

·        Customer feedback

·        Inventory levels

Keep an eye on your Account Health metrics—Amazon holds sellers to high standards, and consistently poor performance can lead to penalties.


Also consider programs like:


·        Amazon Vine – Helps generate early reviews

·        Multi-Channel Fulfillment – Fulfill orders from your website using Amazon’s logistics

·        Global Selling – Reach international customers

·        Amazon Business – Sell in bulk to other businesses



Is Selling on Amazon Right for You?

Selling on Amazon offers enormous opportunity—but it’s not a perfect fit for every business. There’s a lot that goes into being successful on this platform.


It’s great for consumer products, scalable inventory, and businesses ready to play in a high-traffic marketplace.


You might want to think again and consider your options if you sell low-margin items or highly niche goods. If you’re a business seeking full brand control, it might be a painful stretch for you. Only you can answer that.


Still, many businesses find Amazon to be a valuable addition to their overall sales strategy—not a replacement for their own website or in-store sales.


Amazon is not just for mega-brands. It's a proven sales channel that can help your small business get discovered, grow, and thrive. With the right plan and preparation, it could be your gateway to new customers and lasting success.


Additional Resource:

Did you know your Chamber Listing can be converted to sell products and services? Click Here for more information!


Not a Member? Join Today!

Or visit our "Get Listed" page for a new option available to Leavenworth County businesses.


---------------

Christina Metcalf is a writer and speaker who believes in the power of story. She works with small businesses, chambers of commerce, and business professionals who want to make an impression and grow a loyal customer/member base. She is the author of The Glinda Principle, rediscovering the magic within.

_______________________________________

Facebook: @tellyourstorygetemtalking

Instagram: @christinametcalfauthor

LinkedIn: @christinagsmith

The New Networking: Why Strategic Alliances Beat Surface-Level Contacts

July 14, 2025
More than a numbers game.

7 Creative Summer and Back - to - School Marketing Ideas

July 14, 2025
Summer Creativity.

Your Business Isn’t Too Small to Build a Brand

July 7, 2025
Branding isn’t about size. It’s about clarity, consistency, and purpose. Small businesses with strong brands grow faster and retain more loyal customers. A brand is the promise you keep, not just the logo you use. Start with your story and values. Then build visual and verbal consistency. Every customer interaction should reinforce what makes you different. 636 Words ~ 3.5 min. read When most people think “brand,” they picture big names like Nike, Apple, or Starbucks. But in truth, some of the strongest brands belong to small businesses. Like the neighborhood bakery with a line out the door every Saturday. Or the local contractor everyone recommends without hesitation. What sets them apart isn’t budget. It’s branding done right. Branding isn’t just for big companies. It’s how any business, of any size, communicates who they are and why they matter. For small businesses, branding isn’t a luxury. It’s your edge. It helps you cut through noise, attract better-fit customers, and grow with confidence. Yet too often, small business owners treat branding as something they’ll invest in later. That’s a missed opportunity. A strong brand isn’t about fancy design or a clever tagline. It’s about clarity and consistency. It’s the promise you make and keep every time a customer interacts with your business. When done well, branding builds trust, emotional connection, and long-term loyalty. That’s true whether you’re running a restaurant, a retail shop, or a B2B service company. So where should a small business start? Not with a costly rebrand or an elaborate style guide. Begin with your story. Why did you start this business? What do you believe in? What do you do better than anyone else? Those answers are the foundation of your brand identity. Next, translate that identity into a voice and look that feel authentic to you. Choose a tone that fits your values. Whether that’s professional, casual, inspiring, or direct. Then use it across every customer touchpoint. One local accounting firm embraced a tone of friendly expertise in everything from its emails to signage and saw referrals rise 30 percent in a year. Your visuals matter too. You don’t need a world-class designer. Start with a few key colors, a clean font, and a logo that aligns with your message. What matters more than polish is consistency. Make sure your website, signage, social media, and printed materials all feel like they’re coming from the same voice and visual identity. And most importantly, bring your brand to life in how you deliver your service. Your customer experience should reflect your values in action. If your brand is about reliability, you need fast response times and follow-through. If it’s about community, you should be engaging locally and making people feel seen. Small businesses that get branding right build something bigger than marketing. They build reputation. They become memorable, trusted, and easier to recommend. A strong brand turns customers into advocates and consistency into growth. The Bottom Line: Branding isn’t about budget or business size. It’s about being clear on your purpose, consistent in your message, and authentic in how you show up. Take ten minutes today to write down what you stand for. That’s the first step to building a brand that lasts. Further Reading: Unleashing Your Brand's Personality in the Age of AI --- The Leavenworth-Lansing Area Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by Chamber Today, a service of ChamberThink Strategies LLC.