Amazon Strategy for D2C Brands: The Starter Guide

„Do we need Amazon?“ I hear this question from D2C brands constantly. The honest answer: probably yes. But not the way you think, and not without a plan.

Why Amazon Makes Sense for D2C Brands

Amazon is Germany’s largest product search engine. According to the Amazon Shopper Report 2025, 75 percent of German online shoppers start their product search directly on Amazon, not on Google. Among customers who shop on Amazon weekly, that number rises to 87 percent. If someone searches for your product and you’re not there, they’ll find your competitor instead.

That doesn’t mean you should abandon your Shopify store. It means Amazon is an additional channel that brings reach, trust, and revenue, if you approach it the right way. Amazon shoppers often buy without knowing your brand beforehand. Your D2C store sells to people who’ve already found you. Two different funnels, one revenue goal.

Seller vs. Vendor: What Fits You

As a Seller (Seller Central), you sell directly to end customers through Amazon’s platform. You control prices, listings, and inventory, and you get paid out every two weeks. This is the right entry point for most D2C brands.

As a Vendor (Vendor Central), you sell to Amazon, who then resells to end customers. More volume is possible, but you give up price control, and 60-day payment terms are standard. Vendor invitations typically come once you’re already successful as a Seller. If you have the choice: Seller Central gives you the control you need early on to learn what actually works on Amazon.

FBA or FBM: Who Handles Your Shipping?

Fulfillment by Amazon (FBA) means Amazon stores, packs, and ships your product, including the Prime badge and customer service. It costs storage and fulfillment fees, but for most D2C brands it’s the faster path to visibility, since the Prime badge noticeably lifts click-through rate.

Fulfillment by Merchant (FBM) means you ship yourself, from your own warehouse or a fulfillment partner. It saves you FBA fees, but costs you the Prime badge unless you qualify for „Seller Fulfilled Prime,“ which comes with its own delivery-time and return-rate requirements.

For getting started, I recommend FBA for your core products almost every time. On a new listing with no reviews yet, the Prime badge is one of the few trust signals you have from day one.

The 5 Most Common Mistakes When Starting on Amazon

1. Listing all products at once: Start with your 3 to 5 strongest products. Learn the platform before uploading your entire catalog. Every listing needs its own keyword research, its own images, its own campaigns. Ten half-finished listings perform worse than three complete ones.

2. Copying shop prices 1:1: Amazon has its own price dynamics. Your D2C margin often doesn’t hold up on Amazon, because referral fees (typically 8 to 15 percent depending on category), FBA fees, and ad costs all add up. Calculate Amazon as its own business model, not a copy of your store.

3. Copying listings from your webshop: Amazon shoppers have different expectations than shop customers. Your bullet points need to be scannable, your images need to work on mobile, and your keywords need to come from Amazon-specific research, not your Google SEO strategy. For a systematic way to review your listing, I’ve put together a 20-point audit checklist, and I cover the five levers that actually matter for Amazon SEO here.

4. Starting without ads: Organic visibility on Amazon has to be earned, and ads are the fastest path there. Plan at least 15 to 20 percent of your expected revenue as ad budget for the first three months. I’ve summarized what changed in campaign types and targeting options in 2026 here.

5. No Brand Registry: Without Brand Registry, you have no access to A+ Content, Brand Analytics, Sponsored Brands, or Brand Store. It requires a registered trademark, not an Amazon-internal seal. Register your brand before you launch, review can take several weeks.

Channel Conflict: How Amazon and Your D2C Store Fit Together

The most common worry I hear from D2C founders: „Won’t Amazon cannibalize my own store?“ The short answer: partly, but usually not to the extent people fear. Amazon shoppers and D2C shoppers are often different customer segments with different purchase intent.

What you should actively manage is price parity. Amazon automatically checks whether your product is cheaper elsewhere and can suppress your offer as a result. Keep prices consistent across channels, or deliberately differentiate through bundles and sets that exist exclusively in one channel. That sidesteps price comparisons without violating Amazon’s policies.

What Getting Started on Amazon Actually Costs

Beyond referral fees and FBA fees, ad budget is the biggest line item. In the first few months, your ACoS (Advertising Cost of Sale) will almost always run higher than it will later, because you don’t have organic ranking yet to take pressure off your ads. More important than the ACoS of any single campaign at this stage is your TACoS, which shows how much of your total revenue is funded by advertising. I explain the difference between the two metrics, and why TACoS is the more important one to steer by, in detail here.

A Realistic Roadmap for the First 6 Months

Month 1–2: Account setup, Brand Registry, listing creation for 3 to 5 products, first PPC campaigns.

Month 3–4: Optimization based on early data, A+ Content, expanded campaign structure.

Month 5–6: Catalog expansion, Sponsored Brands, scaling the campaigns that are working.

Don’t expect break-even in month one. Amazon is an investment in organic ranking and brand presence. Most brands reach profitability after 3 to 6 months. For a detailed day-by-day plan for the launch phase, see my 90-day plan for Amazon product launches.

Bottom Line

Amazon isn’t a replacement for your D2C channel, it’s an extension. Brands that approach it strategically can run both channels profitably in parallel. Brands that do it half-heartedly burn money and time they could have put into their own store.

The decisions that cost the most when you get them wrong early on are Seller vs. Vendor, FBA vs. FBM, and budgeting for the first six months. Those same three questions are the starting point of every Amazon growth engagement I run for D2C brands, before a single campaign goes live.

Frequently Asked Questions About Starting on Amazon as a D2C Brand

Do I need a registered trademark to sell on Amazon?

Not strictly to sell, but you do need one for Brand Registry, and with it, A+ Content, Sponsored Brands, and brand protection on the platform. Without Brand Registry, you’re more exposed to hijacking on your own listing.

Will Amazon cannibalize my D2C store?

Partly, but usually less than founders fear. Amazon shoppers and store shoppers often differ in purchase intent and trust needs. More important than the cannibalization question is keeping prices consistent across both channels.

What does starting on Amazon realistically cost for a D2C brand?

Beyond referral fees (typically 8 to 15 percent depending on category) and FBA fees, plan for 15 to 20 percent of expected revenue as ad budget for the first three months. Most brands break even between month 3 and 6.

Seller Central or Vendor Central, what’s the difference?

As a Seller, you sell directly to customers and keep control of pricing and inventory. As a Vendor, you sell to Amazon, who resells, with potentially more volume but less control and 60-day payment terms. Vendor invitations usually come after a successful run as a Seller.

Do I need FBA, or is FBM enough?

FBA gets you the Prime badge, an important trust signal on new listings with no reviews yet. FBM saves on fees but usually costs you visibility, unless you qualify for Seller Fulfilled Prime.

How long does it take for Amazon to become profitable?

Most D2C brands reach profitability after 3 to 6 months, not in month one. The early weeks are an investment in organic ranking, reviews, and brand presence that pays off as ACoS comes down.

How many products should I list to start?

3 to 5 of your strongest products are enough to start. Every additional listing needs its own keyword research, images, and campaign structure. One fully optimized listing beats ten half-finished ones.