Frequently Asked Questions

Amazon FAQs

1. What are the different ways to sell on Amazon?

You can sell as a 1P (first-party) vendor (Amazon buys from you) or as a 3P (third-party) seller via Seller Central. Most new brands start as 3P, managing their own pricing, inventory, and customer service. Amazon is moving towards only supporting large vendors through 1P, so they typically have a cutoff of around $50M in annual sales in order to become a vendor.

2. How much does it cost to sell on Amazon 3P?

Seller central has a host of fees associated, and the total cost will vary by brand. In total, FBA brands usually spend ~40% of total sales on fees, and shipping. So it is important to enter the market with profitability in mind.

The main costs are listed below.

  • A monthly fee ($39.99 for a Professional account)

  • A referral fee (8%–15% of the product price)

  • Fulfillment fees if using FBA (based on size/weight)

If you’re using Fulfilled by Amazon (FBA), there will be a few additional fees:

  • Your cost of shipping to Amazon (cost varies by category and shipment size)

  • Amazon inventory storage fee

    • Standard-Size Products:

      • January – September: $0.87/cu ft

      • October – December: $3.63/cu ft (peak season)

    • Oversize Products:

      • January – September: $0.56/cu ft

      • October – December: $2.43/cu ft

  • Chargebacks for compliance issues (like product preparation or compliance)

Additionally, to be competitive, you will need to budget 3-5% of total sales on advertising.

3. What is Fulfilled by Amazon (FBA) and should I use it?

FBA means Amazon stores, picks, packs, and ships your products. It helps with fast Prime shipping and buyer trust, but comes with additional storage and handling fees. It’s ideal for scalable, hands-off logistics.

4. Do I need a business license or LLC to sell on Amazon?

Not necessarily. You can start as a sole proprietor, but an LLC is recommended for liability protection and tax structure benefits once you scale.

5. How do I get my products noticed on Amazon?

Success depends on:

  • Assortment strength: Make sure you are offering products that occupy a specific niche or customer need. Ensure that they are the right size and form factor for ecommerce.

  • Pricing: Set competitive pricing, or if you are a premium product, ensure that your content showcases the value of your brand.

  • Content: Keyword-rich, SEO driven content that highlights your product benefits and showcases your brand story.

  • Availability: Maintain strong inventory position in order to stay in stock so that customers can purchase your products.

  • Ratings & reviews: Drive reviews early. Items with less than a 4 star rating face an intense uphill struggle.

  • Search visibility: Organic relevance is not enough on Amazon, the market is saturated. Brands must use retail media (amazon ads) in order to become visible in search.

6. How do I handle sales tax when selling on Amazon?

Amazon collects and remits sales tax in most U.S. states due to marketplace facilitator laws. However, you may still need to register for a sales tax permit in your home state or states where you store inventory (e.g., FBA warehouses).

7. What are the most common reasons listings get flagged or suspended?

  • Incorrect or non-compliant content

  • Restricted or gated categories

  • Infringement claims (trademark or copyright)

  • Manipulating reviews

  • Poor performance metrics (order defect rate, late shipments)

8. How do I track performance and optimize my account?

Use Amazon’s built-in dashboards like:

  • Business Reports

  • Advertising Console

  • Brand Analytics (if you’re brand registered)
    You can also layer in third-party tools like Helium 10 or Jungle Scout for deeper insight.

  • Work with a software provider or an agency with strong analytical tools

9. What is Amazon Brand Registry and why should I enroll?

Brand Registry gives you:

  • Protection against counterfeit listings

  • Access to A+ content, Amazon Stores, Brand Analytics

  • Better control over your product detail pages

It requires a registered trademark.

10. When and how do I get paid by Amazon?

Amazon disburses funds every 2 weeks to your linked bank account, minus fees and reserves. You can track disbursements in the Payments dashboard in Seller Central.

Walmart FAQs

1. How do I become a Walmart Marketplace seller?

You must apply and be approved. Walmart requires sellers to have a U.S. business, a product catalog with competitive pricing, and experience with ecommerce fulfillment.

2. What are Walmart’s selling fees?

Similar to Amazon’s 3p portal, Walmart has a host of different selling fees. Expect to pay ~25–40% of sales in total Walmart fees. Add 5–15% more if you’re advertising. Maintaining a healthy margin requires pricing, shipping, and ad spend discipline.

  • Referral Fee:

    • 6% – 20% per item sold (avg: 15%)

    • Varies by category (e.g., Electronics: 8%, Apparel: 15%, Jewelry: 20%)

  • Walmart Fulfillment Services (WFS): (if used)

    • Fulfillment Fee: ~10% – 20% (based on size/weight)

    • Storage Fee: ~1% – 3% monthly (per cubic foot of inventory)

  • Advertising (Walmart Connect): (optional)

    • 5% – 15% of sales if running Sponsored Products or Display Ads

3. What is Walmart Fulfillment Services (WFS)?

WFS is Walmart’s FBA equivalent. Walmart stores, picks, packs, and ships your products. It's a great way to get 2-day shipping badges and improve search visibility.

4. Can I list the same products I sell on Amazon?

Yes, but Walmart expects competitive pricing. If your prices are lower elsewhere, Walmart may suppress your listing under the price parity policy.

5. How do I optimize my listings on Walmart?

Use high-quality images, keyword-optimized titles and descriptions, accurate specs, and rich attributes. Also focus on fast shipping, reviews, and inventory reliability to boost rank.

6. What is Walmart Connect?

Walmart Connect is Walmart’s retail media platform, offering on-site and off-site advertising to help brands drive visibility and sales on Walmart.com and across their ecosystem.

7. What ad types does Walmart Connect offer?

  • Sponsored Products (search results)

  • Sponsored Brands (banner ads)

  • Display Ads (on-site & off-site via DSP)

  • In-store media (TV walls, self-checkouts, etc.)

8. How is Walmart Connect different from Amazon Ads?

Walmart Connect has less competition but also fewer features. It’s tightly linked to store performance and omni-channel impact. The targeting and reporting tools are improving but still maturing compared to Amazon.

9. What budget should I start with for Walmart Connect?

You can start small — $50/day per campaign is a common minimum. For meaningful performance data, consider $2,000–$5,000/month depending on your catalog size and goals. Typically, we see brands investing 3-5% of total sales on advertising.

10. How do I track performance on Walmart Connect?

You’ll use the Walmart Ad Center (for Sponsored Products) or Walmart DSP (via a managed service or partner). Key metrics include ROAS, CTR, CPC, and attributed sales.

Target FAQs

1. What is Target Plus?

Target Plus is Target’s invite-only third-party marketplace where select brands can sell directly on Target.com while maintaining full control of their pricing, assortment, and branding.

2. How do I get approved to sell on Target Plus?

Target Plus has a seller application that you fill out. Brands must be invited by a Target category manager. Typically, Target seeks established, high-quality brands with strong DTC or Amazon performance.

3. What fees does Target Plus charge sellers?

Target Plus fees are competitive with Amazon and Walmart, but fulfillment is fully seller-managed, adding operational cost.

  • There are no subscription or listing fees, but success depends on tight logistics, strong customer service, and great content.

  • Brands should budget for logistics, returns, and potential advertising, in addition to referral fees.

Fee breakdown

  • Referral Fee: 15% – 20% (based on category)

  • Fulfillment (your cost): 10% – 25%

  • Returns/Customer Ops: 1% – 3%

  • Advertising (optional): 5% – 15%

  • Estimated Total: 25% – 40%+ (without ads), 30% – 50%+ (with ads)

4. Does Target offer fulfillment services like Amazon FBA or Walmart WFS?

No. Target Plus sellers handle their own fulfillment. You’re responsible for storing, packing, and shipping orders — and meeting Target’s strict delivery and return standards.

5. Can I use my existing product listings from Amazon or Shopify?

You can reuse content, but listings must be customized to fit Target’s product taxonomy and tone, and must comply with their content guidelines.

6. What is Roundel?

Roundel is Target’s retail media arm, offering on-site, off-site, and in-store advertising to drive omnichannel performance across Target.com, app, and external channels (like Google and Meta).

7. What ad formats are available through Roundel?

  • Sponsored Product Ads (search + PDPs)

  • Display & Banner Ads (on-site/off-site)

  • Social & Programmatic Media

  • In-store activations (video, shelf, digital displays)

8. Can 3P sellers use Roundel to advertise?

Yes, but ad access is typically coordinated through a Target media rep or approved agency partner. Minimum spend may apply, especially for managed services.

9. How much should I budget for Roundel ads?

Budgets vary, but most programs start around $10K+ per campaign. However, Sponsored Product Ads for 3P sellers may allow lower entry points if available.

10. How do I track ad performance with Roundel?

Roundel provides campaign-level reporting, including ROAS, impressions, sales lift, and store attribution. For advanced tracking, campaigns may integrate with Target’s closed-loop measurement tools.