Sell on Amazon US: 2026 Glossary + Beginner’s Guide

TL;DR

Selling on Amazon US means listing products on Amazon.com, the largest single Amazon marketplace by revenue and buyer traffic. Sellers from 188 eligible countries can register, choose between Individual and Professional plans, and pick from fulfillment models like FBA or FBM. This glossary covers every key term, fee, business model, and compliance requirement you need to understand before (and after) you start selling on Amazon US.

The US Amazon marketplace processed more transactions last year than any other Amazon storefront worldwide. For entrepreneurs, brand owners, and international businesses looking to reach American consumers, this is the playing field that matters most.

But “sell on Amazon US” is a deceptively simple phrase. Behind it sits a web of account types, fee structures, fulfillment decisions, advertising systems, and compliance rules that trip up beginners and experienced sellers alike. This glossary walks through every core concept, organized by the natural lifecycle of building an Amazon business: setup, listing, fulfillment, advertising, and ongoing account management.

Whether you’re launching your first product or expanding from another marketplace, bookmark this page. It’s designed to be the single reference you return to.

Explore Amazon management services if you want expert support at any stage of this journey.

What It Means to Sell on Amazon US

Amazon US marketplace refers specifically to Amazon.com, the company’s US-based storefront. It is distinct from Amazon’s other 20+ global marketplaces (Amazon.co.uk, Amazon.de, Amazon.co.jp, etc.). When people say they want to sell on Amazon US, they mean listing products where American shoppers browse and buy.

Amazon approves sellers from 188 countries to register for the US marketplace. You do not need a US-based company or a US bank account to get started, though having both offers advantages in buyer trust and tax simplicity.

The core concept is straightforward: you list products, Amazon connects you with buyers, and you fulfill orders either through Amazon’s warehouses or your own. The complexity lives in the details, which is what the rest of this glossary covers.

For a broader look at tools and programs available to you, see this Amazon seller resources guide.

Seller Eligibility and Registration

Who Can Sell

Both individuals and registered businesses can sell on Amazon US. You don’t need an LLC or corporation to open an account, though most serious sellers eventually form one for liability protection and tax efficiency.

Required Documents

Every seller needs:

Government-issued photo ID (passport or national ID)
Proof of address dated within the last 180 days (utility bill, bank statement)
Bank account capable of receiving payments in a supported currency
Valid credit card with an international billing address

For US-based sellers, an EIN (Employer Identification Number) is the company’s tax ID issued by the IRS. It’s required for opening a business bank account, filing taxes, and meeting Amazon’s compliance requirements.

Identity Verification

Since 2025, most new US marketplace registrations require facial recognition or a live video interview with Amazon’s verification team. This is Amazon’s response to rising fraud and fake seller accounts. Expect the process to take a few days after you submit your initial documents.

Non-Resident Sellers

Amazon does not require a US entity. Most foreign-owned brands sell through their home-country business with a foreign bank account. One thing to know: buyers can see your foreign company name and address on the seller profile, which can hurt trust and conversion rates. Practitioners on Reddit frequently mention that registering a US LLC and obtaining a US bank account (services like Payoneer or Mercury facilitate this) improves perceived legitimacy, even if it’s not strictly required.

Seller Account Types

Individual Plan

Costs $0.99 per item sold. No monthly subscription. Best for sellers testing the waters with fewer than 40 units per month.

Limitations are significant: no access to the Buy Box, no advertising tools, no bulk listing capabilities.

Professional Plan

Costs $39.99 per month with no per-item fee. The breakeven point is roughly 41 units per month, but the math understates the real value. Professional accounts unlock the Buy Box, Sponsored Products advertising, bulk listing tools, inventory reports, and eligibility for restricted categories.

Any seller planning to build a real business needs a Professional account. Period.

Seller Central

This is your operating dashboard. Seller Central is where you manage listings, monitor orders, adjust prices, run advertising campaigns, track inventory, and respond to customer messages. Think of it as the cockpit for your entire Amazon operation. It’s powerful but dense, with dozens of tabs and reports that take time to learn.

Amazon Seller Fee Glossary

This is where most guides fall short. Amazon’s fee structure has grown complex, with several charges that surprise sellers who only planned for the obvious ones. Here is every fee type you should understand.

Referral Fee

A percentage of the total sales price (including shipping) that Amazon charges on every sale. Most categories fall near 15%, but rates range from 6% to 45% depending on the product type. Electronics accessories sit at 15%, jewelry at 20%, and Amazon device accessories at 45%.

FBA Fulfillment Fee

Charged per unit when Amazon picks, packs, and ships your product. Standard-size fees start around $3.22 per unit and can exceed $10 for heavier items. Oversize and bulky products cost substantially more. In 2026, Amazon announced an average increase of $0.08 per unit, which sounds small until you realize that for a seller with 10% net margins, that’s effectively a 5% hit to take-home profit.

Monthly Storage Fee

Amazon charges for warehouse space by the cubic foot. Standard season rates (January through September) run $0.78 per cubic foot for standard-size items. Peak season (October through December) jumps to $2.40 per cubic foot. Slow-moving inventory gets expensive fast.

Aged Inventory Surcharge

Inventory sitting in Amazon’s warehouses beyond 181 days triggers a surcharge starting at $0.50 per cubic foot. Past 271 days it climbs further, and beyond 365 days it reaches $6.90 per cubic foot or $0.15 per unit (whichever is greater). Past 456 days, the rate hits $7.90 per cubic foot. This fee punishes poor inventory planning. For strategies on avoiding it, read this inventory management guide.

Low-Inventory-Level Fee

A newer fee that catches many sellers off guard. When your standard or bulky FBA inventory drops below 28 days of supply, Amazon charges between $0.32 and $2.09 per unit. The intent is to discourage stockouts that degrade the Prime experience, but it creates a tricky balancing act: too much inventory triggers aged surcharges, too little triggers low-inventory fees.

Inbound Placement Service Fee

When you send inventory to Amazon, you can choose how many fulfillment centers to ship to. Sending everything to one location (Amazon’s “minimal shipment splits” option) costs $0.14 to $6.50 per unit depending on size tier. Letting Amazon distribute your inventory across multiple centers reduces or eliminates this fee. The tradeoff is higher outbound shipping costs on your end.

Returns Processing Fee

For categories with high return rates (apparel, shoes, accessories), Amazon charges a returns processing fee on units that exceed a category-specific return rate threshold. This fee was introduced in 2024 and catches many apparel sellers by surprise.

Sustainability Handling Fee

A small charge ($0.03 to $0.18 per unit) applied to products that don’t use Amazon’s preferred eco-friendly packaging. Not massive, but it adds up at volume.

Inbound Defect Fee

Charged when your shipments arrive at Amazon warehouses with labeling errors, routing mistakes, or incomplete contents. Preventable with careful prep work.

Media Closing Fee

A flat fee applied to books, music, video, and DVD categories. Currently $1.80 per item. Only relevant if you sell media products.

Total Cost Reality

Here’s the number that matters most: a typical FBA seller pays roughly 29 to 32% of the sale price in Amazon fees on a $30 product. That includes the 15% referral fee plus $3 to $7 in fulfillment fees, before accounting for storage and advertising. If you haven’t modeled this before setting your retail price, you’ll discover your margins are thinner than expected.

Fee Type	Typical Range	When Charged
Referral fee	6-45% (usually ~15%)	Every sale
FBA fulfillment	$3.22-$10+ per unit	Every FBA shipment
Monthly storage (standard)	$0.78/cu ft	Monthly, Jan-Sept
Monthly storage (peak)	$2.40/cu ft	Monthly, Oct-Dec
Aged inventory surcharge	$0.50-$7.90/cu ft	Monthly after 181 days
Low-inventory-level fee	$0.32-$2.09/unit	When below 28-day supply
Inbound placement	$0.14-$6.50/unit	Per inbound shipment
Returns processing	Varies by category	High-return categories

If you suspect you’re overpaying, an FBA fee audit can identify overcharges worth recovering.

Fulfillment Models

How you get products to customers is one of the most consequential decisions you’ll make when selling on Amazon US.

FBA (Fulfillment by Amazon)

You ship inventory to Amazon’s warehouses. Amazon stores it, picks, packs, and ships orders, handles customer service, and processes returns. Your products get the Prime badge, which drives 15 to 30% higher conversion rates on average.

Pros: Prime eligibility, higher conversion, hands-off logistics, structural Buy Box advantage.
Cons: Fees consume 20-30% of revenue, less control over packaging and customer experience, storage costs compound with slow sellers.

FBA is strongly preferred for small, lightweight items under one pound, unless margins are razor-thin.

FBM (Fulfillment by Merchant)

You store inventory and ship orders yourself (or through a third-party warehouse). No automatic Prime badge. You handle customer service and returns.

Pros: Higher margins, full control over fulfillment and packaging, no Amazon storage fees.
Cons: No Prime badge hurts conversion, full logistics responsibility, harder to win the Buy Box against FBA competitors.

For oversized items where FBA fees can exceed 30-40% of the sale price, FBM makes economic sense if you have warehouse space and can negotiate competitive shipping rates.

Important 2026 change: Since February 2026, FBM sellers must provide prepaid return labels on all orders. This is a new cost that didn’t exist before and narrows the margin advantage of FBM for categories with higher return rates.

SFP (Seller Fulfilled Prime)

A program that lets you fulfill orders from your own warehouse while displaying the Prime badge. Sounds ideal, but the requirements are strict: two-day delivery nationwide, high performance metrics, and weekend shipping. Few sellers qualify and maintain compliance long-term.

Decision Framework

Factor	FBA	FBM	SFP
Prime badge	Yes	No	Yes
Buy Box advantage	Strong	Weaker	Moderate
Fulfillment control	Amazon	You	You
Best for	Small/light items, high volume	Oversized items, low volume	High-volume sellers with logistics infrastructure
Storage fees	Yes	No	No

Most successful sellers use a hybrid model, putting their best-selling standard-size products in FBA while fulfilling oversized or slow-moving items via FBM. For help planning your inventory and replenishment across both models, that guide walks through the math.

Business Models for Amazon Sellers

There are several ways to sell on Amazon US, and each carries different risk, margin, and time profiles.

Private Label

You create your own branded products, typically manufactured overseas, and sell them under your brand name. This is the most popular model among serious Amazon sellers.

Typical margins: 30-50%
Startup cost: $3,000-$10,000
Time to first sale: 2-3 months
Scalability: High

Private label demands the most upfront work (product research, sourcing, branding, listing creation) but builds a defensible asset. Brands selling private label often also sell direct-to-consumer through Shopify or WooCommerce. If that describes you, understanding how D2C ad strategies differ from marketplace-first approaches matters.

Wholesale

You purchase existing branded products in bulk from distributors or manufacturers and resell them on Amazon.

Typical margins: 15-30%
Startup cost: $2,000-$5,000+
Time to first sale: 2-4 weeks
Scalability: Moderate

Wholesale offers predictability because you’re selling proven products. The challenge is getting authorized. Practitioners on Amazon Seller Forums warn that you’ll most likely need direct authorization from each brand you sell, and many brands restrict who can list their products.

Retail Arbitrage / Online Arbitrage

You buy products at a discount from retail stores or online retailers and resell them on Amazon at a markup.

Typical margins: 10-20%
Startup cost: $500-$2,000
Time to first sale: Days
Scalability: Low

The fastest way to start, but it doesn’t scale. Amazon doesn’t formally recognize retail or online arbitrage as a legitimate business model in certain policy contexts, which can create complications with brand-gated products. Many sellers start with arbitrage to learn the platform, then transition to private label or wholesale.

Dropshipping

You list products without holding inventory. When a sale happens, your supplier ships directly to the customer.

Typical margins: 5-15%
Startup cost: Minimal
Scalability: Low to moderate

Amazon allows dropshipping but requires you to be the seller of record. You cannot ship products with another retailer’s branding or packing slips. Quality control is nearly impossible, and account health problems are common because you’re dependent on a third party’s shipping speed and accuracy.

For a deeper look at how these models compare to selling through Amazon’s first-party vendor program, see the Amazon 1P vs 3P guide.

Model	Margins	Startup Cost	Time to First Sale	Scalability
Private Label	30-50%	$3K-$10K	2-3 months	High
Wholesale	15-30%	$2K-$5K	2-4 weeks	Moderate
Arbitrage	10-20%	$500-$2K	Days	Low
Dropshipping	5-15%	Minimal	Days	Low-Moderate

Listing and Catalog Terms

ASIN (Amazon Standard Identification Number)

A unique 10-character alphanumeric code assigned to every product in Amazon’s catalog. If your product already exists on Amazon, it has an ASIN. If it’s new, Amazon generates one when you create the detail page.

UPC / GTIN (Universal Product Code / Global Trade Item Number)

A barcode identifier required to create most new product listings. If your product doesn’t have a UPC, check whether it qualifies for a GTIN exemption, which Amazon grants for certain handmade, private label, or unbranded items.

Buy Box (Featured Offer)

The “Add to Cart” button on a product page. When multiple sellers offer the same product, Amazon rotates the Buy Box among them based on price, fulfillment method, seller metrics, and other factors. FBA sellers have a structural advantage: with matching prices and metrics, FBA wins. Winning the Buy Box is essential because the vast majority of purchases go through it. For a deep dive, read this Buy Box strategy guide.

A+ Content (Enhanced Brand Content)

Rich product descriptions available to brand-registered sellers. Instead of plain text, you can use comparison charts, lifestyle images, brand story modules, and formatted layouts. A+ Content improves conversion rates and reduces returns by setting clearer expectations. Learn the specifics in the A+ Content guide.

Brand Store

A free, multi-page storefront within Amazon for brand-registered sellers. Think of it as your brand’s mini website inside Amazon. It showcases your full catalog, tells your brand story, and serves as a landing page for Sponsored Brands ads.

BSR (Best Sellers Rank)

A number assigned to every product based on recent sales velocity within its category. Lower is better: BSR #1 means it’s the top seller. BSR updates hourly and reflects relative performance, not absolute sales numbers.

Category Gating / Ungating

Some product categories require Amazon’s approval before you can list. You’ll see one of three statuses: “Sell this product” (no approval needed), “Apply to sell” (application required), or “Not available” (listing blocked). Restricted categories often include grocery, beauty, jewelry, and automotive.

Advertising Terms

Selling on Amazon US without advertising is possible but increasingly difficult. Organic visibility depends partly on sales velocity, which advertising accelerates.

ACOS (Advertising Cost of Sale)

The percentage of ad-attributed revenue spent on advertising. Formula: ad spend divided by ad revenue, multiplied by 100. A 25% ACOS means you spent $25 in ads to generate $100 in ad-attributed sales. Lower isn’t always better, it depends on your margins and growth goals. Here’s a complete ACOS breakdown with formulas and benchmarks.

TACOS (Total Advertising Cost of Sale)

Ad spend divided by total revenue (not just ad-attributed revenue). TACOS gives a more honest picture of advertising efficiency because it accounts for organic sales alongside paid. A declining TACOS over time usually means your advertising is building organic momentum.

Amazon DSP (Demand-Side Platform)

A programmatic advertising platform that lets you buy display and video ads across Amazon properties and third-party sites. Unlike Sponsored Products, DSP campaigns can target audiences who haven’t searched for your product yet. Typically used by sellers spending $10,000+ per month on ads.

Amazon Marketing Cloud (AMC)

An analytics environment where advertisers can run custom queries across Amazon’s advertising data. It connects signals from Sponsored ads, DSP, and streaming TV to understand the full customer journey. Powerful but requires technical setup.

Account Health and Compliance

Amazon takes account health seriously. Fall below thresholds and you risk suppressed listings, reduced visibility, or full account suspension.

Order Defect Rate (ODR)

The percentage of orders that received negative feedback, an A-to-Z Guarantee claim, or a credit card chargeback. Amazon requires sellers to keep ODR below 1%. Exceeding this puts your account at immediate risk.

Late Shipment Rate

The percentage of seller-fulfilled orders confirmed shipped after the expected ship date. Amazon’s threshold is below 4%. This metric only applies to FBM orders.

Account Health Rating (AHR)

A score (0-1,000) that reflects your overall compliance with Amazon’s policies. It factors in intellectual property complaints, product authenticity complaints, listing policy violations, and more. Keeping this above 250 is considered safe. Below 200, you face potential suspension.

Amazon Brand Registry

A free program that gives brand owners access to enhanced tools: A+ Content, Brand Store, Sponsored Brands ads, and IP protection features. Registration requires an active trademark. Neglecting Brand Registry is surprisingly common, as practitioners report that businesses put it off because of the paperwork or simply don’t know it exists. It’s one of the highest-value free programs Amazon offers. Details on requirements are in the Brand Registry guide.

Product Compliance (US-Specific Rules)

Selling on Amazon US means complying with American safety standards:

CPSC (Consumer Product Safety Commission): Regulates consumer products, especially children’s items.
ASTM F963: The mandatory toy safety standard for products marketed to children under 14.
UL certification: Required for certain electronics, lithium batteries, chargers, and related products.
FDA regulations: Apply to food, supplements, cosmetics, and medical devices.

Amazon actively enforces these. Listing products without required documentation leads to immediate suppression.

Get a free brand audit to identify compliance gaps and growth opportunities across your Amazon account.

Common Mistakes and Practical Tips

These aren’t theoretical. They come from agency audits, forum discussions, and real seller experiences.

Treating Amazon as “just another sales channel.” Brands copy their Shopify or retail strategy and paste it onto Amazon. This doesn’t work. Amazon has its own algorithm, its own customer behavior patterns, and its own rules. The brands that win treat it as a distinct business requiring dedicated strategy.

Using ads to compensate for weak listings. Increasing ad spend when your product detail page has poor images, thin bullet points, or no A+ Content is like turning up the volume on a bad speaker. You’re paying to send traffic to a page that doesn’t convert. Fix the listing first, then scale the ads.

Increasing spend instead of improving efficiency. Practitioners on forums consistently point out that brands chase revenue by throwing more money at campaigns rather than fixing keyword targeting, negative keyword sculpting, and conversion rate. Smart PPC structure beats brute-force spending every time.

Ignoring sales tax obligations. Regardless of whether you actively collect state and local sales tax through Amazon, the liability still exists. Large established sellers have discovered through their accountants that they carry significant unfunded tax liabilities. Amazon’s tax collection services handle most states, but you need to verify your obligations in every state where you have nexus.

Entering incorrect prices and inventory. When you create a listing on Amazon, the pricing and inventory quantities go live almost immediately. There is no sandbox to practice. One misplaced decimal point and you’re selling a $300 product for $30, or showing 10,000 units when you have 100. Double-check everything before publishing.

Skipping Brand Registry. Already mentioned, but worth repeating. The tools it unlocks (A+ Content, brand analytics, IP protection) are too valuable to ignore.

Product Selection Guidance

If you haven’t chosen what to sell on Amazon US yet, here’s the baseline criteria most successful sellers follow:

Price range: $20 to $50. Below $20, Amazon fees eat too much margin. Above $50, buyer hesitation increases.
Weight: Lightweight, non-fragile items minimize fulfillment costs and reduce damage claims.
Demand: Look for products with consistent search volume and proven sales, not seasonal spikes.
Competition: Manageable, not dominated by a single brand or Amazon itself.
Startup budget: Most sellers begin with $2,000 to $5,000 to cover product samples, initial inventory, branding, and early advertising.

When to Get Help

Selling on Amazon US is manageable at the start. A single seller can handle product research, listing creation, basic advertising, and customer service for a handful of products. But complexity compounds fast.

Signs you’ve outgrown the DIY phase:

You’re spending more time managing Amazon than growing your business
Your ACOS is climbing but you can’t diagnose why
Inventory planning feels like guesswork
Account health warnings are appearing and you’re unsure how to resolve them
You want to expand to additional marketplaces or channels

At that point, working with an experienced Amazon management partner saves both money and momentum. EZCommerce provides full-service Amazon management, from campaign architecture and listing optimization to inventory planning and compliance monitoring.

Start with a free brand audit to get a scorecard of your current performance and a 90-day action plan.

Frequently Asked Questions

Do I need a US business to sell on Amazon US?

No. Amazon accepts sellers from 188 countries. You can register with a foreign entity and a foreign bank account. However, having a US LLC and EIN improves buyer trust and simplifies tax compliance.

How much does it cost to start selling on Amazon US?

The Professional seller plan costs $39.99 per month. Beyond that, most beginners invest $2,000 to $5,000 in initial inventory, product samples, branding, and early advertising. Private label launches typically require $3,000 to $10,000.

What percentage does Amazon take from each sale?

For a typical $30 FBA product, expect Amazon to take roughly 29 to 32% of the sale price in combined referral fees, fulfillment fees, and storage costs. The exact percentage varies by category, product size, and weight.

Is FBA or FBM better for new sellers?

FBA is better for most new sellers because it provides the Prime badge (which lifts conversion rates by 15 to 30%), handles logistics, and gives a structural advantage in winning the Buy Box. FBM makes more sense for oversized items where FBA fees exceed 30-40% of the sale price.

What is the Buy Box and why does it matter?

The Buy Box is the “Add to Cart” button on a product detail page. When multiple sellers offer the same product, Amazon awards the Buy Box based on price, fulfillment method, and seller metrics. Most purchases flow through it, so winning the Buy Box is critical for sales volume.

Can I sell on Amazon US from outside the United States?

Yes. Sellers from most countries can register for the US marketplace. You’ll need a passport, proof of address, a bank account in a supported currency, and a credit card. Since 2025, expect a video interview or facial recognition step during verification.

What are the most common reasons Amazon suspends seller accounts?

Order Defect Rate above 1%, Late Shipment Rate above 4%, intellectual property complaints, policy violations, and inauthentic product claims are the most frequent triggers. Maintaining account health above 250 on Amazon’s rating scale keeps you in safe territory.

How long does it take to start making money selling on Amazon US?

Arbitrage sellers can see their first sales within days. Wholesale sellers typically need 2 to 4 weeks. Private label sellers should plan for 2 to 3 months from product sourcing through launch. Profitability timelines vary based on product selection, competition, and advertising efficiency.