If you have ever sold a product on Amazon, you know that there are a couple of important decisions to make before you can start. Some of these decisions could directly impact how successful and profitable you’re with your revenue and customer service. Note that one of these crucial decisions is deciding which kind of Amazon seller account is most suitable for you – an individual or professional account. What are the benefits and drawbacks of each?
You probably know that there are 2 Amazon selling plans. You may set up an individual Amazon account or create a professional one. You may wonder how these Amazon seller plans differ. It is worth noting that, as with many cloud-based business solutions and platforms, professional sellers usually pay a higher price to get access to more advanced and extensive features. However, not all new sellers or vendors will benefit from these features.
Both these options have their unique pros and cons, and eventually, the decision is yours.
Individual Seller Account
The individual seller plan is similar to a pay-as-you-go business model. This plan provides a little more flexibility for people who are “testing the waters” and want to know more about the marketplace. You will be happy to know that Amazon makes it quite simple to launch your products online since you can take the crucial first step by getting started as an individual.
One of the best things about this plan is that it is perfect for small order volumes. This is because you will only pay $.99 per item sold. So, if you’re looking to sell 40 or fewer products in one month or simply would like to try the market, then the individual seller plan may work well for you.
The individual seller plan is most suitable for Amazon sellers who:
- Do not need access to various third-party tools
- Would like to minimize costs
- Do not need the extra features of the Amazon professional plan
- Are content selling only a handful of items and do not plan on growing their business
If you have an individual account, you can easily sell multiple products that have active listings on this platform. However, keep in mind that you are restricted to creating only one new product listing. Also, you’re restricted to selling only in a small number of product categories. Moreover, you will not be able to sell products in special permission and restricted categories.
However, you don’t have to worry about this. The best thing about selling products on Amazon is that sellers can easily upgrade or downgrade their accounts whenever they want to. So, if you exceed the 40 item a month threshold, you may upgrade your Amazon account, which is convenient.
Benefits of Being an Amazon Individual Seller
One of the most important questions you have to ask yourself when you choose an Amazon seller plan is how involved you would like to be in your business. For example, the individual seller account is excellent for individuals who want to dispose of a couple of extra items in their house.
Also, keep in mind that it is a good plan for people who want to try selling on Amazon before jumping all in and growing their business venture to something more significant like a private label.
Lastly, an individual account is an excellent way to get access to Amazon’s valuable seller dashboard and many forums without shelling out a hefty $39.99 monthly payment.
Disadvantages of an Individual Seller Account
- Note that each sale on the platform incurs a per-item fee of 99¢, and you will have to pay all other Amazon fees. This is why if you consistently sell over 40 items a month, it is better to upgrade to the Professional plan
- Without access to Amazon MWS (Marketplace Web Service), you will not be able to use many apps, such as SellerZen
- There are some category restrictions
- You cannot upload sheets for inventory management
Professional Seller Account
In most cases, this is usually the better option for most Amazon sellers. Although you will incur a monthly subscription cost of $39.99, it’s for an unlimited number of sales. This means that you no longer need to pay $.99 for every item sold. Do you want to sell over 40 products every month? If yes, the professional seller account is definitely your best choice.
While there’s a flat subscription rate (monthly) of $39.99, note that the professional account comes with many unique and valuable features that the individual seller plan lacks. Also, you will be glad to know that your first month is absolutely free (if you choose the Professional Amazon Seller Account when you sign up).
Benefits of a Professional Account
Some other key benefits are as follows.
Use Third-party Services
Did you know that listing and managing several items on Amazon can be a bit of a headache? However, you can use other services to do this, like amazon account management. These third-party services can help you manage multiple items. You cannot use these services with an individual seller account.
Enjoy Cost Savings
If you sell more items on your Amazon professional seller account, your incremental costs will decrease. For example, you can sell 300 or 400 items and still pay the same fee. It is worth noting that it takes just 40 items a month to reach the break-even point on your professional seller fees. And any amount beyond that is like a bonus.
You should know that this is a rare and valuable gift in the industry, where commissions and fees usually spike the more products you sell.
Sell in Special Permission and Restricted Categories
Note that there are a number of restricted or special permission categories on Amazon. These categories might provide excellent avenues to sell your products. With a professional account, you will get access to these categories.
Buy Box Eligibility
Would you like to blow through your inventory? If yes, one of the most effective ways to do this is to create your Professional Seller account on Amazon. This isn’t possible if you are an individual seller.
Creating New Listings
You know that the individual seller account on Amazon restricts you from creating more than one new listing. However, with a professional seller account, you can do private label or even bring new wholesale items or products to Amazon. And that is not all; you will be able to easily create these product listings in batches with the help of spreadsheets.
Disadvantages of a Professional Account
- Costs $39.99 a month
- If you are upgrading from an Individual seller plan, your seller account might be suspended until Amazon verifies your account
Downgrading or Upgrading Your Amazon Seller Account
You have likely noticed all the essential differences between an individual Amazon seller account and a professional one. You should take note of all these things if you would like to start selling more with your FBA business. You should also remember that you can upgrade or downgrade your Amazon seller account when you feel like it.
And if you are unsure how many products you will list when you initially set up your seller account, an individual account is often a good choice.
Amazon Individual Seller vs. Professional Seller: Which Account is Right for You?
There is no doubt that the best choice for you — Amazon professional seller vs. individual seller — will mainly depend on the way you want to use Amazon, especially in the long run. If you just want to get rid of some items and make some money, you should go with the individual plan.
In contrast, if you really want to build and grow a business and earn regular income selling products on Amazon, then signing up for the professional seller account is the smarter option. To know how you will use Amazon, you have to consider how many products you are likely to sell each month as well as what categories, such as clothing, these products fall into.
In order to sell items in some categories, you will need approval from Amazon. Note that only professional Amazon sellers can request approval. Some of these categories are:
- Auto parts
- Beauty and personal care
- Clothing items and accessories
- Fine art
- DVDs
- Collectibles
- Food
- Watches
- Travel accessories
Also, another important consideration is that you are more likely to improve the overall visibility of your product listings when you’ve a professional Amazon seller account.
Final Thoughts
There are several key differences between an individual and a professional seller account on Amazon. In the end, the decision about whether you should get the Professional plan or not boils down to how serious and motivated you’re about selling on Amazon.
While both Amazon seller accounts offer their unique advantages and drawbacks, the professional account is your best bet if you are serious about earning money and expanding your business on Amazon. Also, it is best to carry out in-depth and extensive research in order to determine what works best for you and then make the decision.
