Complete Guide for Sole Proprietorship Entry to Amazon 2025

As an experienced e-commerce operations expert with 5 years of experience in Amazon Global Selling, I have guided numerous individual businesses through the process of successfully registering on Amazon. This article provides a comprehensive guide for individual entrepreneurs who want to start selling on Amazon, covering key aspects such as registration requirements, operational strategies, and compliance. It includes real-world case studies, platform policy updates, and actionable steps to avoid common pitfalls.

Problem Scenario: The Challenge of Individual Business Registration

Many individual business owners face difficulties when trying to register on Amazon due to unclear requirements and limited understanding of the platform’s policies. For example, some may not know whether they need a company entity or if their business license is acceptable for registration.

• Some individual businesses mistakenly believe that a personal ID is sufficient for registration.
• Others are unaware of the additional documentation required for account verification.
• There is confusion about whether individual businesses can apply for professional seller accounts.

Underlying Logic: Why Individual Businesses Can Register on Amazon

Amazon allows individual businesses to register under certain conditions. According to the latest Amazon Seller Account Requirements (as of Q1 2024), individual sellers must provide a valid tax ID, business license, and other relevant documents to verify their legal status. However, individual businesses can still qualify if they meet these criteria.

According to Amazon's official documentation:

Requirement	Description
Tax ID	Must be a valid EIN (Employer Identification Number) or equivalent in your country.
Business License	A valid business license issued by the local government authority.
Bank Information	Bank account details for receiving payments.

Solution: Step-by-Step Guide for Individual Business Registration

To register as an individual business on Amazon, follow these steps:

1. Prepare Required Documents: Gather your business license, tax ID, and bank information.
2. Create an Amazon Seller Account: Go to Seller Central and select “Register Now.” Choose “Individual” or “Professional” based on your needs.
3. Complete the Verification Process: Upload the necessary documents for verification. Amazon typically takes 1–3 business days to review your application.
4. Set Up Your Store: Once approved, add products, set pricing, and configure shipping options.

Example: A Chinese individual business owner named Zhang Wei registered his small electronics store on Amazon using his business license and EIN. After submitting the documents, his account was verified within 2 days, and he started listing products immediately.

Pitfall Avoidance: Common Mistakes Individual Sellers Make

Here are some common mistakes that individual sellers should avoid:

• Incorrect Documentation: Submitting incomplete or outdated documents can delay the verification process.
• Choosing the Wrong Account Type: Individual accounts are suitable for low-volume sellers, while professional accounts are better for high-volume operations.
• Ignoring Amazon Policies: Failing to understand Amazon’s rules on product listings, advertising, and customer service can lead to account suspension.

Case Study: A seller from Shenzhen tried to register as an individual but used a personal ID instead of a business license. His application was rejected, and he had to reapply after correcting the documentation.

Conclusion

Registering an individual business on Amazon requires careful preparation and attention to detail. By following the correct procedures and avoiding common mistakes, individual sellers can successfully launch and grow their online stores on Amazon. Understanding the platform’s requirements and staying compliant with its policies are essential for long-term success.