How to sell groceries on Amazon

Amazon sellers flock to electronics and home goods, but many overlook one of the platform’s fastest-growing categories: groceries. Consumer data shows shoppers increasingly turn to online sites for food purchases, creating opportunities for sellers willing to navigate the category’s unique requirements.

The grocery business differs from typical Amazon selling. Food safety regulations, expiration dates, and temperature controls add complexity that scares off casual sellers. This creates less competition for those who understand the rules.

This guide covers everything from getting approved in the restricted Grocery & Gourmet Foods category to building sustainable profit streams. You’ll learn the approval process, compliance requirements, and business models that work best for food products.

How to get approved to sell groceries on Amazon

Amazon restricts the Grocery & Gourmet Foods category to protect consumers from unsafe food products and ensure sellers can maintain proper quality standards. New sellers can’t simply start listing food items like they would with books or electronics.

The restriction exists for good reason. Food products carry health risks if handled improperly, and Amazon faces liability concerns when sellers ship expired or contaminated items. The platform requires documented proof that sellers understand food safety and can source products from legitimate suppliers.

Check for automatic approval first

Some established sellers receive automatic approval based on their account history and performance metrics. Test this before preparing documentation by copying any grocery ASIN, navigating to “Add a product” in Seller Central, then clicking “Apply to sell” followed by “Request approval.”

Amazon may approve your account immediately if you have strong seller metrics and adequate selling history. Accounts with excellent performance over several years often qualify for instant access to the most restricted categories.

The application requirements

The grocery category application asks whether you’re a reseller, distributor, or manufacturer. Choose “reseller/distributor” even if you plan to create private label products later. This path requires simpler documentation and faster approval.

Amazon needs specific documents from your application:

Purchase invoices dated within 180 days showing your name and address matching your seller account. The invoice must include the supplier’s name and address, prove you purchased at least 10 units of the same product, and can omit pricing information if needed.

Product photos showing the physical items or packaging prove you actually possess the inventory mentioned in your invoices.

Your documents will undergo verification where Amazon may contact the suppliers listed in your application. Using legitimate distributors prevents problems during this verification phase.

Finding legitimate wholesale distributors

Amazon rejects most retail grocery store receipts, so you need invoices from authorized wholesalers or distributors. Frontier Co-Op Wholesale serves as a reliable option that consistently passes Amazon’s verification process.

Frontier requires business registration through your TIN, EIN, or SSN to open a wholesale account. Once approved, you can purchase the minimum 10 units needed for category approval from their extensive product catalog.

Before ordering, find matching Amazon listings for products you’re considering. This allows Amazon to verify that you’ll be selling legitimate products on existing ASINs. The profitability of your verification purchase matters less than getting approved.

Preparing your application

Purchase at least 10 units of any grocery product from your chosen distributor. When your order arrives, photograph the packaging clearly showing product details and your shipping information.

Highlight important information on your invoice to help Amazon’s review team identify key details quickly. Write the corresponding Amazon ASIN next to the product name on your invoice to make the connection obvious.

Submit your complete application with invoice and photos through Seller Central’s category approval process. The review typically takes 5-7 business days, though complex applications may take longer.

What to do if denied

Amazon sometimes denies applications due to reviewer oversight rather than document problems. If you submitted all the required information correctly, close the case and resubmit your application immediately.

Different Amazon representatives review resubmitted applications, and approval standards can vary between reviewers. Persistence often leads to approval when your documentation meets all stated requirements.

Keep your inventory from the verification purchase. Even if the product isn’t highly profitable, you can sell it at break-even or donate it to recoup some costs once you’re approved and earning from better opportunities.

Amazon grocery seller and product requirements

Performance metrics you must maintain

Your seller account must maintain specific performance targets to keep grocery selling privileges:

• Order defect rate: Under 1% (stricter than the standard 1% threshold)
• Pre-fulfillment cancel rate: Under 2.5%
• Late shipment rate: Under 4%

These metrics are monitored continuously. Falling below standards can result in immediate suspension from the grocery category, even if you maintain approval in other categories.

Food preparation and packaging standards

All food products must be properly prepared, packaged, sealed, and labeled according to federal regulations. You cannot sell used food items under any condition—everything must be listed as new.

Products need appropriate licensing or government agency approval for the specific items you plan to sell. This includes understanding FDA requirements for your product types and any state-specific food handling licenses your business needs.

Your packaging must protect food from contamination, spoilage, melting, and physical damage during shipping. Standard bubble wrap and thin poly bags won’t suffice for most food products that need moisture barriers or temperature protection.

Expiration date policies and compliance

Amazon treats food as inherently date-sensitive. Every unit must have an expiration date permanently marked unless specifically exempt from labeling requirements. This includes “sell by,” “use by,” “best by,” and “best before” dates.

Key expiration rules:

• Products must ship with adequate remaining shelf life
• You cannot remove or alter expiration dates under any circumstances
• Multi-packs must display the earliest expiration date of internal products
• Shelf-life requirements vary by product type

When products arrive at Amazon fulfillment centers, they must have enough remaining shelf life for full consumption plus an additional 90 days. A bottle of vitamins with a 60-day supply needs 150 days total remaining shelf life.

Temperature-controlled products and chill chain requirements

Refrigerated and frozen foods face complex temperature management requirements. Amazon mandates specific temperature ranges throughout the entire shipping and delivery process.

Temperature requirements by food type:

• Refrigerated meat and poultry: 28-41°F
• Fish and seafood: 32-41°F
• Processed dairy and eggs: 32-41°F
• Cut fruits and vegetables: 32-41°F
• Frozen foods: Below 10°F

Validation and verification processes

You must validate your “chill chain” through independent laboratory testing that simulates worst-case delivery scenarios. This means proving your packaging maintains proper temperatures during maximum delivery times in extreme weather conditions.

Verification involves ongoing monitoring of real deliveries to ensure products arrive at proper temperatures. Both processes require documented records that Amazon and regulators can review upon request.

Businesses shipping nationwide must consider the warmest possible delivery locations, like Phoenix, Dallas, or Miami, when designing their temperature control systems.

Special considerations for meltable inventory

Amazon accepts meltable products like chocolate only from October 16 to April 14 each year. Any meltable inventory arriving at fulfillment centers from April 15 to October 15 gets marked unfulfillable and disposed of for a fee.

This seasonal restriction applies to chocolates, gummy candies, and select jelly or wax-based products. Amazon provides a specific list of affected ASINs in their meltable inventory requirements.

Plan your meltable product inventory cycles carefully. Purchase and ship these items early in the acceptable season to avoid disposal fees and lost inventory during warm months.

Business models for selling grocery products

Three primary business models work well for grocery products on Amazon. Each has different startup costs, complexity levels, and profit potential depending on your resources and goals.

Retail arbitrage for grocery products

Retail arbitrage involves purchasing discounted products from physical stores and reselling them on Amazon. Grocery stores, Walmart, Target, and other retailers regularly clear food items with approaching expiration dates.

Seasonal items present excellent arbitrage opportunities. Halloween candy in November, Christmas cookies in January, or Valentine’s chocolates in March often sell at deep discounts while maintaining strong Amazon demand.

The Amazon Seller app helps identify profitable products while shopping. Scan barcodes to check current selling prices, competition levels, and profitability estimates before purchasing clearance inventory.

Retail arbitrage advantages:

• Low startup costs (often under $500)
• Quick inventory turnover
• Learn category basics with minimal risk
• Find regional products unavailable in other areas

Retail arbitrage disadvantages:

• Time-intensive store visits
• Limited scalability
• Inconsistent product availability
• Lower profit margins than other models

Online arbitrage using distributor networks

Online arbitrage expands your sourcing beyond physical store visits. Many grocery distributors maintain online catalogs with wholesale pricing. If you can compare these wholesale costs to current Amazon selling prices, factoring in fees and competition, you can identify profitable opportunities.

Fortunately, there are tools like Tactical Arbitrage that can do just that for you. It can scan 1,500+ online retailer sites and give you insights into which products you can successfully resell on Amazon.

This approach scales better than retail arbitrage since you can source larger quantities directly from distributors. Products often have longer shelf lives than clearance items found in stores.

Wholesale relationships for sustainable inventory

Wholesale involves establishing ongoing relationships with distributors or manufacturers for regular inventory replenishment. This creates predictable supply chains for products with consistent Amazon demand.

Research existing grocery listings with multiple sellers to identify wholesale opportunities. Products with 4-5+ sellers typically source from distributors rather than retail stores.

Contact manufacturers directly through their websites to inquire about wholesale programs. Many food companies offer dealer programs for qualified resellers meeting minimum purchase requirements.

Wholesale advantages:

• Predictable inventory supply
• Better profit margins than retail arbitrage
• Scalable business model
• Less time spent on product sourcing

Wholesale disadvantages:

• Higher upfront investment
• Minimum order requirements
• Relationship building takes time
• May require business licensing

Private label food products

Private label involves creating your own branded food products through contract manufacturers. This offers the highest profit potential but requires understanding food manufacturing regulations and safety standards.

Product development includes recipe formulation, packaging design, nutritional labeling, and regulatory compliance. FDA regulations govern food manufacturing, labeling requirements, and facility registration.

Start with simpler products like spice blends, tea mixes, or dry goods before attempting complex items requiring special processing or preservation methods. Partner with established co-manufacturers who understand regulatory requirements.

The investment requirements vary widely based on product complexity and minimum order quantities. Simple products may require $5,000-$10,000 initial investment, while complex items can cost $25,000 or more for first production runs.

Listing optimization for grocery products

Grocery listings require specific data elements that don’t apply to other product categories. These requirements ensure customers can make informed purchasing decisions about food products.

UPC codes and multi-pack complexities

Amazon requires manufacturer UPC codes for grocery products. Each unique configuration needs its own UPC code, including single units, manufacturer multi-packs, and any custom multi-packs you create.

Item Package Quantity (IPQ) indicates how many individually barcoded units you’re selling together. A case of 12 individually wrapped energy bars has an IPQ of 12, while a single variety pack containing 24 mixed items has an IPQ of 1.

Multi-packs must use the earliest expiration date of all internal products on the outer packaging. Custom variety packs containing multiple brands require the brand name “Custom Variety Pack” instead of any individual product brand.

Compliant product descriptions

Dietary and allergen claims require documentation and regulatory approval. Any statements about “Organic,” “Kosher,” “Gluten-Free,” or “Dairy-Free” must appear on actual product labels with appropriate certifications.

Avoid making health claims that could classify your product as a drug rather than food. Statements about treating, curing, or preventing diseases trigger FDA drug regulations requiring different approvals.

Required information includes:

• Complete ingredient lists
• Nutritional information
• Allergen warnings
• Country of origin for certain products
• Serving size and preparation instructions

Backend search optimization

Amazon’s grocery search includes filters for dietary preferences and nutritional characteristics. Populate these fields accurately to ensure your products appear in relevant filtered searches.

Customers filter by specialty categories like vegan, organic, or GMO-free. They also filter by nutritional attributes such as low sodium, sugar-free, or specific calorie ranges per serving.

Access these fields through “Advanced view” and “More details” when creating listings in Seller Central. Complete backend data improves discoverability without cluttering your visible product descriptions.

Image requirements and nutrition labels

Include clear photos of nutrition labels and ingredient lists in your image set. Customers researching food purchases want to review detailed product information before buying.

Main product images require white backgrounds following standard Amazon guidelines. Additional images can show the product in use, serving suggestions, or detailed label information.

Multiple angle shots help customers understand package sizes and contents. Show any variety pack contents clearly so customers know exactly what they’re purchasing.

Price per unit calculations

Amazon requires accurate Price Per Unit (PPU) data for all grocery listings. This allows customers to compare similar products regardless of package sizes.

Calculate PPU based on the unit of measurement most relevant to your product type. Liquids typically use price per ounce, while dry goods might use price per pound or per piece depending on the product category.

Consistent PPU calculations across similar products improve your competitiveness in price-sensitive categories where customers frequently compare costs per serving or per ounce.

Managing grocery inventory and logistics

Grocery inventory management differs significantly from other Amazon categories due to expiration dates, temperature sensitivity, and seasonal restrictions affecting various food types.

Choosing between FBA and FBM

Fulfillment by Amazon (FBA) works well for shelf-stable products with reasonable expiration dates. Amazon’s warehouses maintain consistent temperatures and handle standard shipping efficiently.

Merchant fulfillment (FBM) becomes necessary for products requiring special temperature control, extremely short shelf lives, or those falling under seasonal restrictions. You maintain direct control over storage and shipping conditions.

Refrigerated and frozen products must use FBM since Amazon’s standard fulfillment centers don’t provide temperature-controlled storage. This requires your own cold storage facilities or partnerships with specialized third-party logistics providers.

Shelf-life monitoring and expiration management

Track expiration dates carefully to prevent inventory from becoming unfulfillable. Amazon automatically removes expired products from sale and may dispose of them at your expense.

Inventory rotation strategies:

• First-in, first-out (FIFO) inventory management
• Regular expiration date audits
• Automated alerts for products approaching expiration
• Strategic pricing to move aging inventory faster

Plan inventory purchases based on realistic sales velocity. Products with 12-month shelf lives might seem safe, but slow-moving inventory can expire before selling if you overestimate demand.

Avoiding unfulfillable inventory

Amazon marks products as unfulfillable when they exceed shelf-life requirements, arrive damaged, or fail quality inspections. Prevention costs less than dealing with unfulfillable inventory after the fact.

Prevention strategies include:

• Working only with reliable suppliers using proper packaging
• Understanding Amazon’s receiving requirements completely
• Monitoring inventory performance reports regularly
• Setting up removal orders for aging inventory before expiration

Seasonal restrictions for meltable products

Meltable inventory faces strict seasonal limitations. Amazon accepts these products from October 16 through April 14 only, marking arrivals outside this window as unfulfillable.

Time your meltable product purchases and shipments carefully. Products arriving in March give you maximum selling season, while shipments in early April risk weather delays pushing arrival past the cutoff date.

Consider geographic variations in weather patterns. Products shipping from warmer climates may need earlier cutoff dates to ensure they arrive before temperature restrictions take effect.

Using inventory management tools

Effective grocery inventory management prevents costly mistakes like selling expired products or running out of stock during peak demand periods. The right tools help you stay compliant with Amazon’s requirements while maximizing your selling opportunities.

InventoryLab alerts you when listing products that require expiration date tracking, ensuring compliance with Amazon’s grocery category requirements. The system flags expiration-sensitive items during the listing process so you don’t accidentally violate Amazon’s policies.

The platform provides restock recommendations based on your current inventory levels and sales velocity. This helps maintain adequate stock without overbuying products that might expire before selling.

InventoryLab functions as a comprehensive inventory management system for Amazon sellers, tracking your grocery products alongside other inventory categories. The unified dashboard gives you complete visibility into your Amazon business operations without needing separate tools for different product types.

Seller 365 tools for grocery sellers

Managing grocery inventory profitably requires specialized tools that understand food-specific challenges like expiration dates, temperature requirements, and seasonal restrictions. Here’s a deep dive on some of the tools mentioned in the previous sections, and others you can also get within the all-in-one seller software bundle Seller 365.

Tactical Arbitrage for online grocery sourcing

Tactical Arbitrage monitors over 1,500 online retailers, including grocery distributors, health food stores, and specialty food websites.

Search scheduling allows continuous monitoring of grocery distributors without manual intervention. Set up searches for specific product categories and receive alerts when profitable opportunities appear.

InventoryLab for grocery inventory management

InventoryLab alerts you during the listing process when products require expiration date tracking, helping you stay compliant with Amazon’s grocery category requirements from the start. The system also provides restock recommendations based on your current inventory levels and sales velocity.

As a comprehensive Amazon inventory management tool, InventoryLab tracks your grocery products alongside other categories in a unified dashboard. This eliminates the need for separate systems while giving you complete visibility into your entire Amazon business operation.

SmartRepricer for consumable goods strategy

Grocery products often have different repricing needs than durable goods. Consumable items with approaching expiration dates may benefit from aggressive pricing to move inventory quickly.

Custom repricing rules can factor in shelf-life remaining, seasonal demand patterns, and competition levels. Products with longer shelf lives can maintain higher margins while aging inventory gets priced for quick turnover.

Ready to stock up on grocery profits?

The grocery category rewards sellers who understand compliance requirements and choose appropriate business models for their goals. Food safety regulations and expiration date tracking create barriers that discourage casual sellers, leaving more opportunities for those willing to master the requirements.

But beyond sourcing profitable products, you need efficient operations to manage complex inventory requirements, maintain compliance, and scale profitably. Fortunately, Seller 365 provides the complete toolkit for streamlined Amazon operations—from sourcing tools like Tactical Arbitrage to inventory management with InventoryLab, automated repricing with SmartRepricer, and comprehensive profit tracking across all your sales channels.

Try Seller 365 free for up to 14 days and eliminate the complexity of managing multiple software subscriptions while also optimizing every aspect of your grocery business on Amazon.