How to Register as a Seller on Amazon?

Last Update Date : April 27, 2019
Estimated Read Time: 7 min

how to register as a seller on Amazon

As rightly said, “the e-commerce industry is a force which no investor can afford to ignore”, because of the limitless opportunities and growth. It has drastically changed the scenario of retail markets and made it effortless for the customers to buy products and services as everything is just a few clicks away. Sellers also find it easy to reach to their customers located in any part of the world through e-commerce platforms without maintaining a physical store. Amazon being the largest e-commerce website believes on satisfaction of the customer and word of mouth. Being an Amazon seller will help you endlessly, let’s discuss in depth about the same in this guide by H&R Block.

Why should you Register as a Seller on Amazon?

Amazon is one of the fastest growing e-Commerce websites in the world and the biggest retailer in the United States of America. Based on the concept of “pay as you grow” this e-commerce sector launched in 2013, became the highest growing business in India.
Being an Amazon seller helps you reduce your cost and improve the profitability of your business. There are a few things to remember before you register as given below;

  • Decide what you want to sell – Even though selling your products looks simple, it is not. You must have a clear-cut idea of what you actually want to sell as there is a wide range of product categories open to all the sellers.
  • Choose a selling plan – There are different types of plan to choose from, decide a proper plan accordingly and start selling.
  • List your products – Once you’re registered then all you have to do is list your products and start selling.

How to Register as a Seller on Amazon?

You can easily become a registered Amazon seller by following the given steps:

Step 1: Based on the concept of “Badalti soch”, Amazon now helps its seller to reach out to crores of customer in India without having to move to new cities to investing crores of money to open new stores. Go to the home page , once when you’re sure about what you actually want to sell to register yourself.

Step 2: Fill out the details and create your Amazon seller central account providing basic information about the business entity, address, telephone number and bank account details.

What are the documents required to register?

In addition to the basic details and documents provided, the seller also has to furnish several other details depending upon the type of business he opts;

Documents Required in case of Individual or a Proprietor

In case the seller wants to sells the products in his own name, the business will automatically be declared to be a sole proprietorship business. However, there are certain advantages and disadvantages in case of a sole proprietor as the liability is unlimited and the promoter gets no protection against the same. Upon that it is not easily transferrable and cannot have investors and partners. The sole proprietor needs to submit the following documents;

  • Passport of the proprietor
  • GST registration number
  • PAN Card copy
  • Voter’s ID/ Driving License
  • A declaration by the proprietor declaring that the business account is operated by himself.
  • License or lease agreement
  • Bank Account Statement
  • Telephone bill/ Electricity bill pertaining to the proprietor

Documents Required in case of LLP or a Partnership

It is better to start as an LLP or Partnership as the liability is limited and easily transferable. The documents required are as follows;

  • Partnership or LLP Registration Certificate
  • Partnership Deed
  • Power of Attorney granted to a partner or an employee of the firm to transact the business
  • PAN Card of the partnership or the LLP
  • Document validating the address of the partners and the person holding the power of attorney
  • Lease or Rental Agreement
  • License Agreement
  • Firm’s or partner’s Electricity Bill / Telephone Bill
  • GST registration Number

Documents Required in case of Private Limited Company

The most preferred form for seller registration is as Primate limited company, as it has the ability to take on investors and scale up the operations in future. The following documents need to be furnished;

  • Copy of Certificate of Incorporation
  • Copy of Memorandum of Association
  • Company’s PAN Card
  • Company’s Telephone Bill / Electricity Bill
  • Lease or Rental Agreement
  • GST registration number

Documents Required in case of Trust or a Foundation

A seller can also register itself as a Trust or a Foundation. The documents required are similar in case of an LLP or a Private Limited Company as stated above.

Note: Click here to learn about documents required for GST registration.

How it Actually Works?

The working mechanism is fairly simple and interesting.

Step 1: Set up your store on Amazon-

  • The very first step is to register yourself as discussed above.
  • Secondly list your products in one of the various categories available to you.
  • The amazon professional service providers are always to help you and create a high quality catalogue.
  • The seller also has an option to make his products stand out by advertising those using Amazon Sponsored Products.

Step 2: Receive orders from customer-

  • Once your product is listed it will be visible to all the customers who access the website or when the store goes live.
  • The customer can then place the order and once the order is placed the seller can view and manage the same using Order Management Dashboard in their account.

Step 3: Amazon delivers your order –

  • Once the customer places the order, Amazon picks the products from the seller and delivers it straight to the customer.
  • The seller gets access to Amazon easy ship where he can track his order by sitting back and relaxing.

Step 4: Receive Payment from Amazon –

  • Amazon ensure safe and timely payments. The amount gets deposited in to the sellers account within 7 days. According to the amazon policy the fees get deducted only after actual sale is made.

Step 5: Grow your business –

  • Amazon helps in growing your business by providing various suggestions and customized tips in order to boost your performance and earn higher profits.
  • The seller can track his performance through personalized performance dashboards and customized reports.
  • The seller has 24/7 access to helpline numbers in order to solve all the queries.

Step 6: Expand Globally –

  • Amazon also helps to grow globally and access to international markets.

Sell your Products Online

The seller has the access to sell his products either;

  1. Across India –The seller can reach out to crores of customers in India and sell their products.
  2. Globally- The seller also has the access to sell his products across the globe and attract customers across the world.
  3. Locally in your city- In case the seller doesn’t have GST registration the seller can still sell his products across the city.

What are the Benefits of being an Amazon Seller?

Selling on Amazon helps you grow your business and earn higher profits. There are a number of benefits availed by the seller explained as follows:

  • Crores of customers across the world – Gone are those days when you had to invest a lot to sell your products, after being an Amazon seller you can sell your products across the world to crores of customers.
  • Fast and Stress-free shipping – The seller just has to sit back and relax as the Amazon take cares of the shipping making it effortless, so that you focus on your business.
  • Hassle-free payments – The payment system is quite secure and timely.
  • Pay when you sell – There are no fixed costs for anything, you can pay when you sell as the pricing is fairly effective.
  • Professional services – Last but not the least, there are professional experts who help you whenever you sell your product.

What is the Pricing Structure?

The pricing structure of the Amazon is simple and it comprises of three components;

  1. Referral fee starting from 3% +
  2. Fixed Closing fee +
  3. Shipping fee starting at Rs. 30 per item shipped +
  4. GST on above

For example: In case you’re selling Laptop at a product price of 45,000, and cost price of Rs. 39,000 ,then the referral fee will be calculated @5% of 45,000 i.e. Rs. 2,250 and Closing fee will be Rs. 40 and shipping fee depending upon the weight for say, if the laptop is 2.5 kgs, shipping fee will be Rs. 143.

Therefore, the total cost comes to Rs. 2,463
And GST upon that @ 18% comes to Rs. 443.34
Hence, the total charge will be Rs.2,906.34

Thus, profit comes to Rs. 3,093.66

Note: The seller doesn’t have to calculate each and everything, pricing calculator by Amazon makes it effortless.

GST for Amazon Sellers and other e-Commerce Sellers

Before GST came into the picture, the E-commerce sellers had to comply with the law of CST / VAT and now as the GST is into operation it is mandatory to comply with its provisions. The seller doesn’t have to bear different taxes for different states as the GST rates are uniform. GST will also reduce the cascading effect and increase the scope of the seller.

Frequently Asked Questions

1. Are there any rewards for the sellers?

Ans: Yes. There are rewards for sellers known as Amazon Seller reward program. It is a seller loyalty program for sellers on, where Amazon provides opportunities to registered sellers to receive Rewards by successfully participating in Reward-earning tasks/ contests.

2. Is GST number required to sell on Amazon?

Ans: Yes. If you are listing taxable goods, GST details are required to sell online. You need to provide GST number to Amazon at the time of registration. However, if you are selling only GST exempted categories, then this may not be required.

Note: that if you start selling any taxable goods you need to register for GST as per GST laws and provide your GST number to Amazon.

3. Does the seller get any protection against fraud?

Ans: Yes. Amazon protects the seller against fraudulent orders placed on your products and payment fraud.

Leave a Rating!
3.3 (26 Votes)
CA Chetan Shinde
CA Chetan Shinde
Chetan is the Lead Tax Advisor at H&R Block (India) with an experience of almost half a decade in audit and taxation. His professional areas of interest are GST advisory and statutory audit. Apart from taxation, he is passionate about social causes and works extensively towards rural school development and literacy.