Amazon

Nine dimensions merchants should review before joining:

Merchant snapshot

Na di number-one all-category channel for North America; traffic an FBA fulfilment dey mature pass all. E dey good for brand/factory sellers wey get strong supply chain an money power. But fees dey high, competition dey tight well well — e no be low-barrier platform.

Entry requirements

To enter, na di Professional seller plan be di main way ($39.99 per month, or Individual $0.99 per item, official sell.amazon.com/pricing); you need business license/identity an tax information, and after registration e go pass KYC inside di Seller Central. For di US site, company or personal identity fit work, but each region get im own compliance: Europe need VAT tax number, Japan need local tax registration, India need GST, an plenty Chinese sellers dey rush inside Amazon.ae/.sa for Middle East. Brand Registry need valid trademark — na di condition before you fit get A+ page an advertising rights. For 2025, new seller registration drop to ten-year low (about 165,000, Marketplace Pulse), and di bar for review an fees dey go up.

Fee structure

Commission (referral fee) na 15% for most categories, minimum $0.30; some categories na 8%–12% or higher (like Amazon Device Accessories 45%, from official fee table). Subscription fee: Professional $39.99 per month, Individual $0.99 per item. FBA storage/delivery fee dey charge separately and e dey increase year by year. Advertising (Sponsored) dey follow bidding. For 2025, the increase of commission plus FBA fees cause sellers to complain (na_platforms.md). As e dey for di official latest fee table.

Getting traffic

Di biggest entry na on-site search an category natural traffic; di algorithm dey favour products wey convert well an wey Prime fit deliver. Di advertising system (Sponsored Products/Brands/Display) dey mature; Q4'24 advertising revenue na $17.3B (+18%). Rufus AI shopping assistant go fit bring about $12 billion extra sales for 2025, and Haul low-price store dey carry low-price traffic. For new product, cold start dey depend well well on advertising money an review wey you don gather.

Fulfilment & logistics

FBA (Fulfillment by Amazon) na di main fulfilment: di volume of Prime same-day/next-day items for Q4'24 na +65% year-on-year; storage, delivery an customer service na one-stop. You fit also use FBM (seller self-fulfilment) or multi-channel fulfilment (MCF). For cross-region: Europe get Pan-EU FBA, Japan/India etc get local warehouses. Storage fee don dey increase recent years (like India site 2025 storage fee increase 11%, in_platforms.md).

Payments & settlement

Di platform dey collect payment as one; settlement dey for multiple currencies like US dollar/Euro/Japanese yen etc. Di settlement cycle for sellers usually na about 14 days (e fit adjust based on account performance). E dey support Amazon Pay an third-party collection services (like Payoneer/WorldFirst) for currency conversion. Commission, storage an advertising fees dey deduct from settlement automatically.

Compliance

For US, sales tax na di platform dey collect on behalf, or seller go register state tax. For Europe cross-border, you need VAT registration an filing (Italy 23% VAT case na typical compliance cost, eu_platforms.md). Products need CE/FCC/CPSC etc certification and must follow di platform banned-products policy. FTC don settle ROSCA dark-pattern case (Prime hard to cancel) with $2.5B; compliance for subscription category dey tighten. EU DSA and other regulations dey affect cross-border operations.

Key risks

1) Fees dey continue to rise + competition inside ecosystem: 2025 new seller registration na ten-year low (~165,000), sellers dey move to independent sites/Walmart; 2) FTC antitrust lawsuit no don finish (after 2025 dem reject summary judgment motion, e dey continue), e get split/regulatory risk; 3) Temu/Shein/TikTok Shop dey take young an low-price users with low prices; 4) North America growth dey slow (FY24 +10%) an EU 2026.7 €3 per parcel tax and other cross-border regulations dey affect am.

Best-fit sellers

E dey good for brand/factory sellers wey get stable supply chain and fit carry FBA stock an advertising cost, and merchants wey get trademark wey dem fit use for Brand Registry. E cover all categories; 3C, home, mother-and-baby etc standard goods get strong volume advantage. E no dey good for new sellers wey get thin profit, no differentiation, and no money — fees an competition go quick quick finish di gross margin. For cross-region expansion (Europe/Japan/Middle East etc), you must solve VAT an local certification at di same time.

Sources

1. sell.amazon.com
2. marketplacepulse.com
3. ir.aboutamazon.com