Amazon

Nine dimensions merchants should review before joining:

Merchant snapshot

The #1 full-category channel in North America, with the most mature traffic and FBA fulfillment; best for brand/factory sellers with supply chain strength and capital. Fees are high and competition is fierce — not a low-barrier entry.

Entry requirements

Onboarding centers on the Professional seller plan ($39.99/month, or Individual at $0.99/item, official sell.amazon.com/pricing), requiring a business license/ID and tax information, followed by seller-center KYC after registration. The US site accepts company or individual identities; expansion across regions requires separate compliance: a VAT number in Europe, local tax registration in Japan, GST in India, and heavy inflows of Chinese sellers on Amazon.ae/.sa in the Middle East. Brand Registry requires a valid trademark and is the prerequisite for A+ content and advertising benefits. New seller registrations fell to a decade low in 2025 (~165,000, Marketplace Pulse), with review and fee barriers rising.

Fee structure

Referral fees are 15% for most categories (minimum $0.30), with some categories at 8%–12% or higher (e.g., Amazon Device Accessories at 45%, per the official fee schedule); subscription fees are Professional $39.99/month and Individual $0.99/item; FBA storage/fulfillment fees are charged separately and have risen year after year; advertising (Sponsored) is bid-based. In 2025, "continuously rising referral + FBA fees" drew seller criticism (na_platforms.md). For specifics, refer to the latest official fee schedule.

Getting traffic

On-site search and category organic traffic are the biggest entry points; the algorithm favors high-converting items that Prime can fulfill. The ad system (Sponsored Products/Brands/Display) is mature, with Q4'24 ad revenue of $17.3B (+18%). The Rufus AI shopping assistant is expected to drive about $12B in incremental sales in 2025, and the Haul low-price storefront captures budget traffic. New-product cold start depends heavily on ad spend and review accumulation.

Fulfilment & logistics

FBA (Fulfillment by Amazon) is the core fulfillment model: Q4'24 Prime same-day/next-day delivered units grew +65% YoY, with storage, delivery, and customer service handled end to end; sellers can also self-fulfill (FBM) or use Multi-Channel Fulfillment (MCF). Cross-region: Pan-European FBA in Europe, local warehouses in Japan/India and elsewhere; storage fees have risen in recent years (e.g., India storage fees +11% in 2025, in_platforms.md).

Payments & settlement

The platform collects payments centrally with multi-currency settlement (USD/EUR/JPY and more); the seller settlement cycle is typically about 14 days (adjustable based on account performance); Amazon Pay and third-party payout services (e.g., Payoneer/WorldFirst) support currency conversion. Referral fees, storage fees, and ad costs are automatically deducted from settlement.

Compliance

US sales tax is collected by the platform or registered by the seller at the state level; cross-border European sales require VAT registration and filing (the Italian 23% VAT case is a typical compliance cost, eu_platforms.md); products need CE/FCC/CPSC and other certifications and must comply with platform restricted-product policies. The FTC settled a ROSCA "dark patterns" case (difficulty canceling Prime) for $2.5B, and compliance for subscription categories is tightening; EU DSA and other regulatory spillover affects cross-border operations.

Key risks

1) Rising fees + ecosystem hyper-competition: new seller registrations hit a decade low in 2025 (~165K), with sellers migrating to independent sites/Walmart; 2) the FTC antitrust suit remains unresolved (proceeding after a summary-judgment motion was denied in 2025), with break-up/regulatory risk; 3) Temu/Shein/TikTok Shop are siphoning young and budget-conscious users with low prices; 4) slower North American growth (FY24 +10%) plus cross-border regulatory spillover such as the EU's July 2026 €3/parcel tax.

Best-fit sellers

Best for brand/factory sellers with a stable supply chain who can carry FBA inventory and advertising costs, and for merchants with a trademark who can enroll in Brand Registry. Full-category coverage; standardized categories like 3C, home, and baby products have clear volume advantages. Not suitable for thin-margin, undifferentiated, or cash-strapped newcomers — fees and competition will quickly eat gross margin; cross-region expansion (Europe/Japan/Middle East, etc.) requires simultaneously addressing VAT and local certifications.

Sources

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