In short
- Founded 1994. Roughly 40% of US e-commerce flows through Amazon, with 400M+ products listed across every category
- Seller Central is the back office, with FBA (Fulfillment by Amazon) handling pick, pack, ship, and returns at scale
- Referral fees range from 8% to 45% by category, with most sitting at 15% plus a $39.99 monthly Professional Selling subscription
- Amazon Ads (Sponsored Products, Brands, Display) is now a ~$50B/year ad business and the highest-intent retail media network in the world
- Brand-hijacking, IP complaints, and account suspensions are real operational risks that need active management
What is Amazon
Amazon is the dominant global e-commerce marketplace, processing over $4 trillion in annual gross merchandise value and capturing roughly 40% of US e-commerce. Founded in 1994 as an online bookstore, it now operates Seller Central as the central back office for third-party sellers, who account for more than 60% of all units sold on the platform. Fulfillment by Amazon (FBA) lets sellers ship inventory into Amazon’s warehouse network and have Prime do the pick, pack, ship, and returns at scale. Amazon Ads has grown into a roughly $50 billion annual ad business in 2026, making it the highest-intent retail media network in the world.
Where Amazon fits in 2026
Amazon is the default destination for any brand that needs scale, particularly in consumables, home goods, electronics, and beauty. Margin profiles vary, FBA referral fees (8-15% standard, up to 45% in jewelry) plus fulfillment fees plus advertising spend typically consume 35-50% of gross revenue, so brands target 60%+ gross margins to survive. The common stack is Seller Central plus an inventory tool (Sellerboard, Helium 10, or Jungle Scout) plus an ad management layer (Pacvue, Perpetua, or Skai) plus accounting to reconcile FBA settlements. Brands serious about Amazon also enroll in Brand Registry to access A+ Content, Sponsored Brands, and IP protection tooling.
How Amazon compares to alternatives
- Walmart Marketplace. Second-largest US marketplace with lower referral fees (6-20%) and less competition per category, but stricter approval and a much smaller buyer base. Pick Walmart as a second channel for brands already winning on Amazon.
- Etsy. Niche-only, handmade, vintage, and craft. Much smaller buyer pool but higher margins on differentiated products. Not an Amazon alternative for mass-market goods.
- eBay. Auction roots and 60M+ active buyers, strong for refurbished, collectibles, and parts. Cheaper than Amazon Ads but lower buyer intent per visit.
FAQ about Amazon
How much are Amazon seller fees?
The Professional Selling Plan costs $39.99 per month with no per-item fee, and the Individual plan charges $0.99 per item sold with no monthly subscription. On top of that, Amazon takes a referral fee of 8-15% in most categories, with jewelry at up to 20% and a $0.30 minimum per item.
What is the Amazon referral fee?
Referral fees are commissions Amazon takes on each sale, ranging from 8% (electronics, grocery) to 15% (most categories) to 20% (jewelry, fine art), with category-specific exceptions reaching 45%. They apply to the total order amount including shipping but excluding tax.
How does Fulfillment by Amazon (FBA) work?
You ship inventory into Amazon’s warehouse network, and FBA handles storage, pick, pack, ship, customer service, and returns. Listings become Prime-eligible, which materially lifts conversion, but you pay per-unit fulfillment fees (typically $3.22 to $10+) plus monthly storage fees.
Does Amazon have AI?
Yes. Amazon Rufus is the generative AI shopping assistant for buyers, and Seller Central has AI-assisted listing creation, A+ Content generation, Sponsored Products bid suggestions, and inventory forecasting. The 2026 push includes agentic shopping experiences and AI-generated product detail pages.
How to use Amazon Seller Central?
Sign up at https://sell.amazon.com, complete identity and tax verification, and pick the Individual or Professional plan. Most sellers list their first product within a day and ship the first FBA shipment within two to three weeks.
Why choose Amazon?
Amazon is the largest, highest-intent buyer pool on the internet, with built-in trust, Prime conversion, and Amazon Ads as a profitable acquisition channel for the right margin profile.
How does Amazon work for sellers?
You list products in Seller Central, choose Fulfilled by Merchant or FBA, set prices, and compete for the Buy Box. Amazon takes a referral fee on each sale, charges fulfillment fees if you use FBA, and pays out every two weeks.
Is Amazon free for sellers?
No. The Individual plan has no monthly fee but charges $0.99 per item sold, and the Professional plan is $39.99 per month flat. Referral fees and FBA fees apply on top.
How to learn Amazon Seller Central?
Amazon Seller University offers free courses, videos, and certifications inside Seller Central, and the YouTube channel mirrors most of that content. Third-party communities like Helium 10, Jungle Scout, and the SellerLabs ecosystem offer paid education.
Does Amazon have an API?
Yes, the Selling Partner API (SP-API) covers listings, orders, FBA inventory, reports, and advertising. Documentation is at https://developer-docs.amazon.com.
Does Amazon have a trial or a demo?
There is no trial. The Individual plan with no monthly fee is the closest equivalent, you can test listings and orders without committing to the Professional subscription.
What are the biggest risks of selling on Amazon?
Brand hijacking, counterfeits, IP complaints, and account suspensions are the recurring pain points. Without Brand Registry enrollment, competitors can edit your listings, and a single bad-faith complaint can suspend a top-performing ASIN until Amazon’s appeals process resolves.
How does Amazon Ads work?
Sponsored Products, Sponsored Brands, and Sponsored Display run on a keyword and audience auction model, with cost-per-click as the primary lever. Amazon DSP is the programmatic display product for larger budgets, typically starting at $35,000 minimum spend.
What are Amazon alternatives?
Walmart Marketplace is the main US alternative, with eBay, Etsy, and Target Plus as smaller secondary channels. For DTC, Shopify with a Klaviyo and Meta Ads stack is the most common off-Amazon move.
Amazon pricing
Amazon pricing starts at $39.99/mo. Plans are organised as Referral fees 8-45% + Professional Selling Plan $39.99/mo. See the full Amazon pricing page for current tiers and any add-ons.
