How to Start an Amazon Business If you are Just a Beginner

 As a new seller, you might think this makes Amazon too competitive. But, despite the competition, new sellers can easily start up their own successful businesses on Amazon. Some are even starting from home and seeing the benefits of quitting their day job.

Whether you are a seasoned online seller or a beginner (and are thinking about quitting your job), selling on Amazon can present great opportunities for making money. By following the tips outlined in this article, you can make the most of this opportunity and find out how to start an Amazon business. 

The Five-Step Process to Starting an Amazon Business (That's Actually Successful)

Below, we delve deeper into each step, providing a more detailed look into the process.

1. Deciding on Your Amazon Business Model

There are four popular business models you can choose from as a new seller. Each model offers its advantages and considerations, allowing sellers to find the best fit for their goals, resources, and preferences.

Retail or Online Arbitrage 

Arbitrage is finding discounted products online or through physical retail and reselling them for a profit. Sellers can use the Amazon seller's app on their smartphone to look up products and easily find out whether they can make a short-term profit. 

Budget: $100-500 in startup costs


Dropshipping is when you give 100% of your product management to a third-party company. The company manages your inventory, shipments, and storage. The only thing you need to handle is making sales. Many dropshipping suppliers let you start for free. But, after the free period ends, keeping those supplies requires you to pay in order to continue using their services. 

Budget: $0 to start (monthly costs may vary depending on your supplier)


Wholesale is when you buy products in bulk from known brands. Then you resell these products at a higher price, without offering a discount, in order to generate profit. However, ordering these products in bulk means you have to pay more. Also, you still have to work hard to compete with other sellers. 

Budget: $1,000 or more 

Private Label Products 

Private label sellers buy products from third-party manufacturers and put their unique brand names on them. These brand sellers can take a product idea to fruition, often trademarking it to prevent other sellers from entering the market. 

Budget: $3000 or more 

Once you have selected the most suitable business model, the next step is to proceed with finding the right products to sell.

2. Product Research 

When starting your own business, research is vital. There are over 25 thousand product niches on Amazon, and you can sell in any of them. But whether you sell beauty products or jewelry, you need to focus on research to identify the best sellers in those categories. 

Here are some steps when choosing products.

Get Niche Ideas Using the AMZScout Product Database 

You can search for product ideas on Amazon, Etsy, eBay, social media, Shopify eCommerce sites, blogs, influencer pages, and farmer's markets, but this takes time. 

The AMZScout Product Database streamlines your research by following these steps:

1. Go to the AMZScout Product Database.

2. Start your free trial. The web app will automatically bring you to the sign-up form if you are not registered. Enter your information to start your free trial. No payment or credit card information is required to start. 

3. Set your product criteria. The search filters help you define your standards.

Here are some common criteria to consider when searching for successful products:

  • Product prices are between $15-100

  • In-demand (at least 300 sales per month)

  • Small/lightweight items (lighter and smaller items have low shipping costs)

  • Low competition (with private-label products, focus on subcategories with fewer reviews)

  • Few sellers (for dropshipping, arbitrage, or wholesale models, it is advisable to target products with a relatively low number of sellers, preferably fewer than 20)

You can also use the Product selection tool's ready-made options for more proven results.

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