Selling on Amazon - a short guide for manufacturers and distributors

Are you a manufacturer wondering how to get onto Amazon? Or perhaps you're looking to start selling in e-commerce as a distributor? The platform of the American giant offers enormous opportunities for growth regardless of whether you produce the products yourself or are merely a reseller.

Our knowledge compendium on the largest marketplace in the world will help you choose the right products and prepare them for market entry. From the article, you will also learn how to avoid the most common mistakes and conduct effective competitive battles. Are you ready to conquer the world? Let’s get started! Here are 10 things to consider to get off to a good start on Amazon.

Basic sales models on Amazon
On the world's largest shopping platform for manufacturers and distributors, there are fundamentally 2 sales models: FBM (Fulfillment By Merchant) and FBA (Fulfillment By Amazon). The Amazon Vendor program is targeted at selected suppliers who receive a special invitation from Amazon.

What is the difference between FBM and FBA? Which one is more beneficial for your business? It depends, among other things, on:

– product size,

– seasonality of the assortment,

– logistical capabilities.

If you sell luxury products, start with FBM. This will allow you to gauge interest in your offer without the costs of storage in Amazon's warehouses. FBM is also recommended for oversized and seasonal items.

In FBA, shipping is done from the central warehouse; Amazon handles the picking, packing, and transportation. You outsource storage and shipping. This is convenient for:

– clothing,

– home appliances,

– sports items,

– food,

– books.

It may be less profitable for furniture, fences, or building materials—large volume and slower turnover = higher storage costs.

Manufacturer or distributor? 5 pathways to enter Amazon
Before starting, analyse your business and goals. Sales are designed based on whether you are:

– a manufacturer with your own product brand,

– a manufacturer without a registered brand,

– a distributor of foreign brands,

– an importer,

– a craftsman.

Selling as a manufacturer with a brand
Determine your goals (e.g., turnover increase, brand recognition). Investigate competitors and assess whether your pricing strategy would allow you to compete with cheap goods from Asia. Opportunities grow when you offer significantly better quality and distinction. Amazon will help you build brand awareness and scale.

Selling as a manufacturer without a brand
Possible options:

– create a brand specifically for Amazon before starting,

– sell without a brand,

– register a brand later if the products "surprise".

Brand registration provides protection against impersonation and tools through Brand Registry. It is worth considering.

Selling as a distributor
Easier than with a manufacturer: if the product is already on Amazon, you connect to existing product pages—you save time and content costs. Note: negotiate conditions with the manufacturer (consents for e-commerce/export). Control your margins—typically, they are low.

Selling as an importer
It is crucial to optimize purchasing, transportation, and storage costs. Shorten time-to-market, refine your pricing policy. At the start, gather feedback:

– how customers evaluate the offer,

– whether the price vs quality is OK,

– how inventory rotates.

This is the basis for planning deliveries and matching offers.

Handmade sales
You can offer products in the Handmade category. Over 30% of sellers in 2021 had margins >20%—with good promotion, returns can be satisfactory. Handmade is growing, but mainstream sales lie in other categories—treat Amazon as an additional channel.

How to choose the best products to sell?
Base your start on sure bets. If you have an e-shop/other marketplace, select a few models with stable sales and some with potential. You can also start seasonally (e.g., swimsuits in IV–V). Diversify: for winter, introduce skates, gloves, ski pants, etc.

Focus on quality—it builds position and reviews. Consider whether entering a brand with many sellers makes sense; often, it is better to occupy a niche. Most importantly: ensure a margin buffer after Amazon costs of about 50%. With <10% the risk of failure is high.

Verified Amazon agency for a start
You can learn on your own, but it is worth asking an agency for a quote. An experienced team will:

– prepare offers according to guidelines,

– assist in planning shipments,

– take over customer service in the appropriate languages,

– advise on tax and accounting.

This saves errors and time, especially at the beginning.

Formalities before starting sales—checklist
Prepare:

– business data (CEIDG/KRS),

– data of owners/representatives (identity scans),

– data of the main contact person (identity scan),

– user account data,

– bank account data,

– credit/debit card,

– email for registration,

– two phone numbers for verification.

For companies additionally:

– data of representatives/co-owners (name, surname, address, date of birth, ID/passport number),

– identity document scans,

– Letter of Authorisation (when the account is managed by someone outside the owners/management).

How to prepare product descriptions for Amazon?
Description is essential. It must meet two conditions: be optimized for the Amazon search engine and clear and comprehensive for the customer. Texts + photos/infographics are key elements of the product page.

The 3-second rule: the user quickly evaluates whether to stay on the page. The photo (top left) and title determine the first impression; in the mobile app, they weigh even more. Creating a listing for conversion is a priority. (Fig. 1 View of the product page in the mobile app)

Organizing shipments and stock
FBM: after configuration and adding offers, you wait for orders, confirm, pack, ship, document sales.
FBA: first, send goods to the logistics centre. With the first shipment, use the short guide "FBA step by step".

Introduce products gradually. For FBA, start with bestsellers/market analysis. Limited selection reduces risk and storage costs. Test the marketplace before larger deliveries to understand needs in a given country.

Advertising
Campaigns and promotions allow:

– a new brand to emerge,

– maintain interest,

– build a bond with customers.

On Amazon, you promote offers and brands: Sponsored Products and Sponsored Brands (visible in results and on product pages). Direct traffic to the Brand Store or listing. For new cards by the manufacturer, advertising is essential. Invest in sales events (Prime Day, Black Friday).

Buy Box
This is the box with the price and the "Add to cart" button. Winning it should be your number 1 goal. With the Buy Box, the order goes to you; without it—it goes to the competition. Price and delivery time (FBA/Prime) are the main deciding factors. Amazon promotes sellers with inventory in FBA and competitive prices. 9 out of 10 transactions go through "Add to Cart".

Responding to changes in demand and expectations
The market and needs change rapidly—analyze the industry cyclically:

– how shopping habits are changing,

– what innovations competitors are introducing,

– what pricing strategies dominate,

– what trends are worth picking up (patterns, colors, compositions).

Be vigilant—customers do not wait, they buy from those who respond faster.

How to enter Amazon as a manufacturer and distributor?
Resellers have it easier—they connect to active listings and compete for the Buy Box. Manufacturers prepare:

– texts for the Amazon search engine,

– photos and graphics compliant with guidelines,

– advertising campaigns.

In both cases, the choice of model (FBM/FBA) strongly influences conversion.

Shall we get started? Or are you still hesitating? Schedule a consultation to discover the real potential for sales growth on Amazon.

Happy Selling
Amata Borys-Chudek
Go2Market Crew