How to Create an Amazon Seller Account in 2025: A Compliance-Focused Guide

 

How to Create an Amazon Seller Account in 2025: A Compliance-Focused Guide

Avoid Costly Mistakes with This Step-by-Step Blueprint

Amazon’s seller ecosystem now hosts 10 million+ businesses, but stricter verification and sustainability requirements make onboarding trickier in 2025. This guide combines updated policies, tax mandates, and growth hacks to help you launch smoothly while avoiding suspensions.

 

Step 1: Choose the Right Amazon Seller Plan in 2025

Before creating your Amazon seller account, selecting the right plan is crucial. Amazon offers two options: Individual and Professional. The choice depends on your business goals, expected sales volume, and need for advanced tools.

Individual vs. Professional Plan: What’s Best for You?

·        Individual Plan (Best for beginners)

• No monthly subscription fee.
• Amazon charges a $1.25 fee per sale.
• No access to bulk listing tools or Amazon Ads.
• Limited reporting and no Brand Registry access.

·        Professional Plan (Best for serious sellers)

• $39.99/month subscription fee.
• No per-item selling fee, making it cost-effective for 40+ sales per month.
• Access to advanced analytics, bulk listing, and Amazon Ads.
• Required for Brand Registry and participation in Amazon Vine.

If you plan to sell fewer than 40 items per month, start with the Individual Plan to test the market. If scaling quickly, the Professional Plan is the smarter choice.

Additionally, Amazon is increasing its focus on sustainability in 2025. If you intend to sell eco-friendly products, you’ll need the Professional Plan to access Amazon’s Sustainability Certification program.

Step 2: Pre-Registration Checklist

Before creating your Amazon seller account in 2025, make sure to gather all necessary documentation for a smooth registration process. There are specific requirements based on whether you’re registering as an individual or a business.

For Business Accounts:

• EIN (Employer Identification Number): This is required to identify your business for tax purposes.
• Articles of Incorporation: Proof that your business is legally recognized by the government.
• Business Bank Statement: To confirm your business’s financial details.

For Individual Accounts:

• SSN (Social Security Number): This is necessary to verify your identity for tax and legal purposes.
• Driver’s License: A valid government-issued ID to prove your identity.
• Personal Bank Statement: To verify your financial information.

Universal Requirements:

• Virtual Phone Number: You’ll need a phone number that can receive SMS or voice calls, as Amazon bans VoIP numbers for verification.
• Two-Factor Authentication (2FA): A critical update for 2025 is that Amazon now requires 2FA through Authenticator apps. SMS-based 2FA is no longer accepted, so make sure you have an app like Google Authenticator or Authy set up before starting the registration.

Taking these steps before you begin will ensure that your application process runs smoothly and avoid unnecessary delays or rejections.

Step 3: Account Creation Walkthrough

Now that you’ve gathered all the necessary documents, it’s time to start creating your Amazon seller account. Here's what you need to keep in mind during this critical step:

Business Name:
Make sure your business name exactly matches what’s on your IRS or tax records. If you’ve registered as an LLC, for example, don't leave out "LLC" in your name, and don’t use it if your business isn’t officially registered that way. Precision here is key to avoid issues down the line.

Product Category:
If you plan to sell products in restricted categories (like supplements, cosmetics, or certain electronics), you’ll need to get approval first. Amazon has a handy Category Explorer tool that helps you check whether your product category requires this step. It’s better to confirm this early so you’re not caught off guard.

Bank Account:
This is where a lot of sellers slip up. You’ll need to use a business bank account, not a personal one. Amazon is very strict about this, and using a personal account could trigger a manual review that could delay your approval. Consider setting up a business account with a service like Novo or Bluevine, especially if you haven’t registered a formal business yet. These accounts also offer virtual cards, which can be useful for online transactions.

Pro Tip:
Take your time to ensure everything is correctly filled out. Even small mistakes in the business name or product category can lead to delays or even a suspension. The more accurate and complete your information, the quicker your account will be approved.

Step 4: Identity Verification (2025’s Biggest Hurdle)

One of the most challenging parts of setting up your Amazon seller account in 2025 is identity verification. Amazon has tightened security, and it’s crucial to get this step right to avoid having your account rejected.

Accepted ID Types:

• For U.S. Sellers: You can use an Enhanced Driver’s License (EDL) or a passport.
• For Non-U.S. Sellers: You’ll need to provide a passport along with a national ID. Make sure the national ID is translated by a certified service if it's not in English.

Common Issues and Fixes:
Many sellers get stuck during this process because of mismatched information. If your ID details don’t exactly match what’s in Amazon’s system, it can lead to rejection. The most common issue is a mismatch between your address on the ID and what Amazon has on file.

If this happens, don't panic! You can fix it by submitting a notarized affidavit that confirms your address. This can help Amazon cross-check your details and approve your application.

Pro Tip:
Take extra care when submitting your documents. Ensure your ID is clear and legible, with no blurring or obstructions. If you’re asked for more documentation, submit it promptly to avoid delays. The faster you respond, the smoother the process will be.

Step 5: Tax Setup for 2025 Compliance

Tax compliance is crucial for operating as an Amazon seller, especially with the new regulations in 2025. You’ll need to make sure everything is properly set up to avoid issues with Amazon or tax authorities.

For U.S. Sellers:

• W-9 Form: You’ll need to provide a completed W-9 form, which includes your business’s EIN (Employer Identification Number) or your personal SSN (Social Security Number) if you're an individual seller. This ensures that Amazon can report your earnings to the IRS accurately.
• Matching Information: Your EIN or SSN must exactly match what’s on file with the IRS. Any discrepancies here could lead to delays or account issues.

For International Sellers:

• W-8BEN-E Form: If you’re not based in the U.S., you’ll need to submit a W-8BEN-E form, which is for foreign businesses. Additionally, if your country requires VAT/GST registration, you’ll need to provide that number as well. This is part of Amazon’s push for more global tax compliance.

Sales Tax Collection:

• State Nexus: Amazon now automatically collects sales tax for sellers in 45 U.S. states, so you don’t have to worry about manually collecting and remitting it. However, if you’re selling in multiple states, it’s wise to consult with a tax professional to ensure you're fully compliant.

Tool Recommendation:
If you’re selling in multiple states or countries, it’s a good idea to use tools like TaxJar to automate your tax filings. This will save you time and ensure that your tax obligations are handled properly.

Setting up your taxes correctly from the start is essential to keep your business running smoothly and avoid any future compliance issues with Amazon or tax authorities.

Step 6: Product Listing Strategies

Once your account is set up and verified, it's time to dive into your product listings. This is where the real work starts—getting your products noticed on Amazon. Here’s how to avoid common pitfalls and maximize your chances of success:

1. Avoid “Suppressed Listings”:
Amazon has strict rules about product listings. If your listing doesn’t meet their image or content guidelines, it could be suppressed (hidden from customers) or rejected. To prevent this:

• Ensure your product images are at least 1500px on the longest side, with 85% of the image filled by the product itself (no excessive background).
• Don’t use watermarked images. Amazon requires clean, professional photos that represent your product accurately.

2. Sustainability Claims:
If you’re planning to market your products as eco-friendly, Amazon has specific guidelines. Only use the “Climate Pledge Friendly” badge if your product has been certified through Amazon’s Sustainability Certification. Misusing this badge can result in penalties, so make sure you’re following the rules closely.

3. AI-Generated Content Disclosure:
2025 brings a new policy requiring sellers to disclose if any part of their product description is AI-generated. Amazon wants transparency, so if you’re using AI tools to write descriptions, be sure to add the necessary disclaimers.

4. Optimize Listings for Search (Keywords):
A key to successful selling on Amazon is visibility. Use Amazon’s own tools and third-party apps like Jungle Scout’s Listing Builder to help you find the right keywords. Properly optimizing your listings with high-traffic, relevant keywords will improve your chances of showing up in searches.

Pro Tip:
Spend time writing clear, engaging, and informative product descriptions. Highlight features, benefits, and any certifications your product has (like organic or sustainable labels). The more detailed and accurate your listings are, the better the chances of attracting customers and avoiding listing issues.

Step 7: FBA vs. FBM: 2025’s Hidden Costs

When selling on Amazon, one of the most important decisions you’ll need to make is whether to use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). Each has its pros and cons, and the right choice for you will depend on factors like cost, convenience, and control over your inventory. Here’s a breakdown of both options to help you decide:

FBA (Fulfillment by Amazon):

• Storage Fees: Amazon charges a storage fee for your inventory stored in their warehouses. In 2025, this has increased to about $1.50 per cubic foot, up by 20% from previous years. If you're selling bulky items or have a large inventory, these fees can add up quickly.
• Returns Handling: With FBA, Amazon handles returns on your behalf. This means you won’t have to worry about processing returns yourself, which can save a lot of time and effort.
• Prime Eligibility: One of the biggest perks of FBA is that your products will be eligible for Amazon Prime. This can increase your visibility and make your listings more attractive to Prime members, who often prefer faster, free shipping.
• Pro Tip: Consider using Amazon’s Warehousing & Distribution (AWD) service. It offers a 12% reduction in storage fees for bulk inventory, which could help you save money if you plan to store large quantities.

FBM (Fulfillment by Merchant):

• No Storage Fees: You manage your own inventory and ship products directly to customers. This means you don’t have to pay Amazon’s storage fees, which can be a big advantage if you have a small inventory or sell items that don’t move quickly.
• Returns Handling: You’ll be responsible for handling returns, which can be time-consuming. However, you also have more control over the process.
• No Prime Eligibility: One downside of FBM is that your products won’t be eligible for Amazon Prime unless you opt for Seller-Fulfilled Prime, which comes with its own set of requirements.
• Pro Tip: If you choose FBM, you’ll need to be highly organized to handle packing, shipping, and customer service on your own. Using tools to streamline the process can help you stay efficient.

Cost Considerations:
FBA can be more expensive due to storage and handling fees, but it offers convenience and access to Amazon’s vast shipping network, which can lead to higher sales. FBM offers more control and can be less costly in terms of fees, but it requires you to handle everything yourself.

Step 8: Post-Approval Must-Dos

Once your account is approved, there are several essential steps you should take to protect your business and boost your chances of long-term success on Amazon. These post-approval tasks not only improve your visibility but also help ensure that your account stays in good standing.

1. Enable Brand Registry:
If you have a registered trademark for your brand, enrolling in Amazon’s Brand Registry is a must. This tool helps protect your intellectual property by giving you more control over your product listings and preventing unauthorized sellers from hijacking your listings. It also provides access to extra marketing tools like A+ Content (discussed below) and enhanced brand visibility, making it easier to differentiate your brand from others.

2. Set Up A+ Content:
A+ Content allows you to create more visually appealing and informative product pages with richer content, such as high-quality images, comparison charts, and additional product details. According to Amazon’s internal data, listings with A+ Content see an 18% increase in conversions. Setting this up will help you present your products more effectively, leading to higher customer engagement and sales.

3. Join Amazon’s Sustainability Hub:
Sustainability is becoming more important to consumers, and Amazon is giving priority to eco-friendly products. Joining Amazon’s Sustainability Hub can help you promote your products if they have environmental certifications, allowing you to tap into a growing market of conscious consumers. This also gives your products better visibility in search results, as Amazon gives a boost to those that align with sustainable practices.

4. Monitor Performance Metrics:
Now that your account is live, keep a close eye on your performance metrics, such as your Order Defect Rate (ODR), late shipment rate, and customer feedback. Keeping these metrics in check ensures that Amazon doesn’t flag your account for underperformance or violations. Respond quickly to customer issues, aim for excellent reviews, and ensure fast, accurate shipping to maintain a good standing with Amazon.

5. Avoid Common Suspension Traps:
Lastly, avoid common mistakes that could lead to account suspension. In 2025, Amazon has tightened its policies on review manipulation and product descriptions. Offering discounts for 5-star reviews is strictly prohibited, and using AI-generated content without disclosing it can result in penalties. Also, new sellers are limited to 500 units until you complete a 90-day performance review, so it’s important to manage your stock levels carefully.

By taking these proactive steps post-approval, you’re setting yourself up for success on Amazon. These actions will not only protect your account but will also help you optimize your product listings and grow your business over time.

Avoid These 2025 Account Suspension Traps

• ❌ Review Manipulation: Offering discounts for 5-star reviews (banned in 2024).
• ❌ ChatGPT Descriptions: Must add “AI-generated” disclaimer.
• ❌ Stock Limits: New sellers restricted to 500 units until 90-day performance review.

 

• ✅ Disclaimer: “This article cites Amazon’s public guidelines. Always consult a tax professional.”