$3.50….$5.50….$4.00…$7.00….$4.35. A typical week of Starbucks purchases to keep me going throughout the day. Honestly it may be more but these are just the receipts I happened to still have folded up in my cup holder in my car. An average week of Starbucks might cost me $25-$30…lets double that if the wife is with me haha.
Going back to the compound effect that I spoke about in my previous blog you are looking at $80-$100+ in coffee in a given month. On the low side that’s over $950 a year. “Cool Cody you like Starbucks…where you heading with this one?” Where I am heading is that creating your Amazon seller account is going to cost $39.99 a month. (GASP!!!)
Why did I need to break it down how I did? Sometimes when you explain how much something is going to be to someone they start to give backlash and say that’s too expensive and give up before they even begin. In reality we spend way more on other things (I didn’t even include the random food runs) that we don’t necessarily need.
A week in a half of Starbucks, that I could make on my own at home already pays for my seller account. I had to get that out there cause I have friends and family that I explain this to and they get caught up in the monthly price and don’t look at the bigger picture. The unknown value always stops people in their tracks.
We on the other hand, know that their are tons of people making plenty of money and replacing their career income and working from home. We are aspiring entrepreneurs that want the most out of life and the freedom and challenges that will be presented. So lets crush it!!
Today we are going to walk through the step by steps of how to create your Amazon Seller Account. There are two types of Seller Accounts. Professional and Individual.
With a individual seller account you do not pay that $39.99 monthly fee but instead pay a $0.99 fee for every item plus the Amazon fees for selling on their site. This plan is good if you plan on selling 40 units/items or less a month. Amazon will choose your shipping rates on this type of account. We are going to be discussing a Professional Seller Account.
With the professional seller account you will pay a $39.99 monthly fee for having your account active on Amazon (whether you list items or not). Through this account you do not pay $0.99 per item and only Amazon referral fees (fees taking by Amazon for using them to pack your stuff and ship it). We are looking at a Professional account because we will be dealing with larger quantities and will be saving more on a per-item fee.
****Its important to note that at any giving time you can switch back and forth between individual and professional. If you ever decide to stop selling for an extended period of time you wont have to worry about getting charged the $39.99 monthly fee.
Let’s begin. I personally feel that this registration is pretty straight forward, but have included some step by step pictures to help walk you through it. It should only take 20-25 minutes or less.
HOW TO CREATE YOUR AMAZON SELLER ACCOUNT STEP BY STEP
Step 1 – This link will take you to the very first page of the seller central. You should see the screen below. Click the Orange/Gold/Yellow “Start Selling” button.
Step 2 – This is where you will create your account. Before you put in your email, I recommend going to gmail.com and creating an email that you would like to use for your seller account specifically. You will be receiving a lot of emails from Amazon, customers, and your suppliers. Pick something that sounds like a business firstname.lastname@example.org or something like that. Then go ahead and create a strong password.
Step 3 – Once you create your account and now have an email that you would like to use going forward (remember lots of emails will be coming your way), you will be taking to a screen that will ask to have the following available (see below). Don’t worry about the business name as that can be changed whenever. Go ahead and enter your full name and accept the terms and conditions (you know that thing that’s 20 pages and no one reads lol).
Step 4 The next screen it will prompt you to is to tell a little about your business. Go ahead and fill out the fields below and use the address you currently reside. In regards to the business name, this is what people will see when you are selling something. So for example say I am selling soap. The title of the product on the amazon listing may be (Everlasting Soap That Never Runs Out) it will then say sold by (your business name) and fulfilled by Amazon. You can always change this later so don’t overthink it. Skip the website name you dont need to worry about that. Finally enter your cell number and click text me now. Once you receive your pin hit next.
Step 5 The next screen you will be directed to is your billing information this is where Amazon will link a card to your account for the monthly subscription fee ($39.99 and some change). Make sure Fulfillment by Amazon is check marked and also Amazon Business since it is no extra charge. Chances are you wont use it but we’ll dive into it on another blog. Go ahead and put in your card information.
Step 6 Once your credit card information is entered and you jump to the next screen. Amazon will prompt you to setup your deposit method (This is how Amazon pays you). Go ahead and locate your routing and bank account number and once that is entered press next.
Step 7 The next step once this is finished is taking you to your tax identity information page. Unfortunately I already have an account created so I could not show pictures on this without it charging my card again if I went further. This is all pretty straightforward though. The registration process basically takes you on a quick tour to do a “1099-K Tax Document Interview” where you submit your tax info for verification. (Make sure you are wearing a nice suit and your hair is done). That’s a joke…its just a set of high level tax questions.
The reason for this process is that Amazon is required by the law and IRS to collect your tax ID info so the government (IRS) can be notified of any possible taxable earnings on your amazon account. Once you start bringing in the money guess what…..Uncle Sam is there with his hand out. You will be responsible for paying your taxes, Amazon is just required to report that you have been collecting money.
Don’t worry about the tax portion. Amazon pays out twice a month and anytime money comes in you will simply set aside 7%. A $1000 check comes in set aside $70. Trust me when I say do this now because at the end of the year you don’t want to do your taxes and realize that a couple grand has added up that you had failed to keep putting off to the side. Finish the tax info and jump to the next screen.
Step 8 – As soon as the tax info is submitted you will be encouraged to start listing your products…first congratulations you are now a registered Amazon seller!!…second don’t worry about listing a product just yet, we still have a little bit to go before we jump on that train. All in all that wasn’t to bad huh?
End Of Steps
That will wrap up today’s blog on how to create your Amazon seller account. Remember we are taking baby steps while also taking action! The worse thing you can do on this whole journey is not take steps that move you forward. Overthinking and fear will keep the ball from moving. I am going to focus on scaling throughout this entire process. We are not going to jump from ladder rung one to ladder rung 5. All steps are crucial so the process is easier and more smooth.
As I have also said before, selling on Amazon is relatively simple when you have the resources/direction. It gets intimidating when you see big time bloggers and Amazon sellers that have already made thousands try to explain it. All that goes on in my head is…”yea easy for you to say”. That wont be the case here cause you are going to watch me grow and I will help you along the way so we all make it.
Quick stat for everyone that I want to wrap this up with. 60% of e-commerce is on Amazon from sellers like you and I. Amazon is 2x as big as it was since last December and since 2008 its around 20-25x bigger.
Amazon is simply drowning in customers. Last month (May 2017) alone Amazon posted that it had 27 million new prime members. Yea, that’s 27 million new members on top of what already existed and those are people paying a membership to buy stuff on Amazon. Don’t ever ever think the market is too saturated. There’s actually not enough sellers out there. So lets keep at it!!