Your Choice: Professional Or Individual
It might sound like a no-brainer question , but these are Amazons choices for your seller account plan. Its worth exploring your options before you start the process of creating your account, since there are pretty big differences between the two.
Either way, youll be able to sell your items and run your FBA business the major difference has to do with whether you think youll be selling more or less than 40 items per month .
The Individual seller plan doesnt have a monthly fee, and this pricing plan is pretty appealing if youre just starting out and in a more experimental mode with your products.
If youre feeling pretty confident that your items going to sell like hotcakes, however, it might be worth it to pay $39.99 per month to be a Professional seller. That way, you wont have to pay Amazon $0.99 for each item sold, which is the fee that Individual sellers have to pay.
If you want to wait and see how your FBA does, you can start as an Individual and upgrade your account to the Professional selling plan at any time. Theres a lot of overlap between the two plans: Both Individuals and Professionals have to pay shipping, referral, and closing fees, all explained on Amazons website. And both Professional and Individual sellers can list their products in more than 20 categories, but Professional sellers can include their products in 10 extra categories.
Whichever plan you choose, the process of creating your Seller account is exactly the same.
What Are Amazons Fees
Here are a few of the that you may be required to pay:
- Amazon referral fees: This is the fee that Amazon takes as a commission for selling on its platform. It varies from category to category, but ranges between 12-40%. Most products have a 15% referral fee.
- Individual seller fee: This is a flat $0.99 added to each sale you make on top of the referral fee. But, sellers only have to pay this per-item fee if theyve opted for an individual seller account, rather than a professional plan.
- FBA fees: If you use Amazons FBA program, youll have to cover the shipping and handling costs for Amazon. This usually works out to roughly $3.00 for small items weighing no more than a pound. The fees go up as the items get heavier or larger.
- Other Amazon fees: You may also have long-term inventory storage fees , media fees , and advertising costs.
Fba: What The Pros Choose
Almost any professional seller you talk to will tell you that they are using fulfillment by Amazon to fulfill the products to sell on the platform. The reason for this is that Amazon FBA lets Amazon do the heavy lifting. The products go from your supplier either to an Amazon FBA prep center, or to Amazons warehouses, where Amazon takes care of the entire product packing and shipping process. Of course, all of this requires fees, but at least there is much less risk of suspension!
However, you can still run into trouble under Amazon FBA. For example, if you havent picked products which sell well, those products are going to sit in Amazons warehouses, and Amazon will charge fees and after fees for keeping them there. They might expire , which can be very financially draining for your business.
As you can see, there are various risks associated with Amazon businesses, from the type of seller account you pick, to choosing how to fulfill orders. However, this should not discourage you from selling on the platform. Even if you do het suspended, there are ways of getting your seller account reinstated. As for items that have been sitting in Amazons warehouses or are expired, there are solutions such as liquidation companies which are currently very popular among Amazon sellers. Like they say, if theres a will, theres a way! Amazon can be a very successful marketplace if everything is done by the book!
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How To List A New Item To Sell On Amazon
1. If you’re not already logged in to your Amazon account, do so.
2. Once on your “Seller Dashboard,” click “Catalog” in the menu bar. Select “Add a Product” from the dropdown menu.
3. Choose “I’m adding a product not sold on Amazon.”
4. Browse item categories before choosing “Select category” and picking a subcategory.
5. Enter your product’s information in the “Vital Info” and “Offer” tabs.
6. Click “Save.”
How To Open Amazon Seller Account
Opening Amazon Seller account or reactivating a suspended Amazon seller account become challenging. Amazon Seller account applications can be rejected if various procedures are not completed. Sellers who want to be involved in cross-border e-commerce lose both time and a chance to compete on Amazon because of incorrect account opening. Therefore, sustainable processes are needed for Amazon sales! Well, how can you sell on Amazon? What are the steps to open Amazon Seller Account? Here are the answers
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Is The Information About Amazon Individual Seller Login Really Accurate
We collect data from third-party websites, official websites, and other public sources. The data collected are carefully checked by our experts before they are added to the database. However, we cannot give any guarantees for the hundred percent reliability of the data, as every day there are different kinds of changes in companies.
List Your First Product As An Amazon Individual Seller
Once youve set up your account, you can start listing products on Amazon. As an Amazon individual seller, you cannot create listings for products that arent already on the platform. So, the easiest way to put your products on the market is to find them on Amazon.
Search for your product on Amazon, and open its product page. On the right side of the listing, you can find the Buy Box. Scroll down until you find the Sell on Amazon option, as seen in the image below.
Once youve clicked the button, you will be redirected to a page where you will have to add the following information.
- SKU: You can enter a code yourself or leave it blank. If you dont populate this field, Amazon will randomly generate an SKU for your inventory.
- Price: Set the selling price of your product. Amazon has a handy button that lets you match the lowest price.
- Quantity: The default quantity is one unit. You can change the number depending on the number of products you have to sell.
- Condition: For most products, you only have two options Used or New.
- Fulfillment method: Here, you enter your preferred fulfillment method. You have the option to fulfill the order yourself through FBM or SFP , or you can let Amazon take care of fulfillment using FBA .
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Why Have Multiple Amazon Accounts
There are legitimate business reasons for wanting multiple accounts and not so legitimate ones including:
As mentioned, in my company we have different brands operated under the same company but that are entirely separate from one another. We have different branding, customer service emails and phone numbers, etc. If we have all brands under the same account it would make separating the brands down the road very difficult.
Another reason to open a second Amazon account is to get a new IPI score. Some sellers get stuck at a low IPI score and it severely affects their ability to replenish inventory and they turn to opening a new Seller Central account. I have no idea if this would be defined as a legitimate business need or not but I know many people who have opened additional accounts for this reason and they have not gotten into trouble for.
However, many sellers want multiple business accounts because they are very deliberately breaking Amazons Terms of Service and they are terrified of having their account shut down. By having multiple accounts theyre able to hedge their bets. If one account gets shut down, they can simply start selling their products on the other account.
If and when an Amazon Seller gets suspended from one account, a second Amazon account allows the seller to continue to sell.
Which Selling Plan Is Right For You
Here’s a simple cost-benefit analysis that might help in deciding whether to switch your selling plan. At a pay-as-you-go rate of $1.49 per item, you would need more than 20 sales per month to offset a $29.99 subscription fee: 20 x $1.49 fixed closing fee = $29.80. If you have fewer than 20 sales per month, or if you have seasonal fluctuations in your sales, the Individual selling plan may be right for you
Learn more about the differences between Professional and Individual selling plans. On that page, you’ll also find instructions for switching your selling plan. You can easily switch between the Individual and Professional selling plans when you need access to additional features or when it becomes cost-effective for you to use the Professional selling plan.
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Individual Seller Account On Amazon
The individual seller account is best for someone who is just wanting to sell a few items on Amazon, or is just testing the waters.
Some of the things to note about the individual seller account are that although you will not have to pay a monthly subscription fee, you will have to pay an additional $.99 per item fee on every item sold. This is on top of the referral fees & variable closing fees that both account types get charged.
So, right off the bat, if you plan to sell more than 40 items per month, you would be better off to sign up for the professional seller account. Aside from the fees that you pay, there are some other significant factors to consider before signing up for an individual seller account.
- You can NOT use 3rd party services like Inventory Lab, Scoutify or Repricers
- You can NOT apply to sell in restricted categories on Amazon
- You are NOT eligible for the Buy Box The caveat here is that if you use FBA, you will still get the buy box!
For both types of accounts, listing products is free you only pay fees when the items sell.
Downgrading Your Amazon Seller Account From Professional To Individual: Details
Here is some context and some more of the finer details involved in this process for downgrading your Amazon Seller account, including my own experience.
I started a safety products company several years ago, specifically I have been selling products through drop-shipping from suppliers. At one point, I thought Id try out some things on Amazon, but I never got really serious about it. I went ahead and signed up for the Professional account, thinking that Id be selling hundreds of products per month. I never spent the time to get there.
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Understanding Of Basic Cost Structure Including Overhead Costs
Far too many sellers on Amazon understand only the basics of SKU-level profitability, resulting in a blended view of the sellers overall profitability, rather than a pinpoint perspective on which SKUs drive what percentage of profits, while understanding .
Too many Amazon sellers dont know their profitability until the end of the year when their accountant announces the final numbers, hopefully to the sellers relief.
Its critical for sellers to understand and compile all of their overhead costs, and recognize that these expenses need to be integrated into the running total of costs that a seller incurs selling on Amazon.
Choose Your Business Location And Business Type
The next step in the Amazon seller registration process is to share the following information:
- Your business location: This is the country in which your business is located. Its extremely important that this is accurate, as Amazon will be verifying it .
- Your business type: Youll be able to choose your business entity from the following options :
- State-owned business
- None, I am an individual
Then, click the Agree and continue button.
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Amazon My Services Page Downgrade Link
The Manage link you clicked in the last step will take you to the My Services page, which will again list the various Amazon services you are signed up for as a Professional seller.
Below the explanation of your Professional seller plan in the section labeled Sell on Amazon is a link that says, Downgrade. Click that link to begin the account downgrade process.
Fulfill And Ship Your Products
Listing products for sale in the Amazon marketplace and managing your inventory are the hardest parts of learning how to sell on Amazon. This being said, once a customer places an order, the next step is to get that product into their hands.
Amazon offers two options for product fulfillment and shipment:
Fulfillment by Merchant
Self-shipping is typically a good option for small sellers and those with smaller margins. You can opt to charge for shipping or offer free shipping. The biggest advantage of FBM is that you can keep everything in-house and not lose more of your profits to Amazon fees.
The disadvantages are that its harder to qualify as an Amazon Prime shipper when you do FBM, so you could lose out on customers with Prime accounts. The other downside is that its more difficult to win the buy box when you choose FBM.
Fulfillment by Amazon
If the nitty-gritty of processing and shipping orders yourself feels overwhelming, go for the shipping method. Through FBA, you can use Amazonâs world-class fulfillment centers, customer support, and other operational tools to scale your business faster than you ever could on your own.
Image source: Amazon.com
How FBA Works
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Start Your Amazon Business And Seller Accounts Off Strong With Webfx
If you now know exactly which Amazon accounts you plan to create, great! But thats just the start. Once you create your accounts, youll have to put plenty of thought and effort into how you develop and market them, and it wont always be easy.
Thankfully, WebFX can help. Our team of over 200 digital marketing experts is well-versed in the makings of a successful Amazon campaign, and wed love to bring that knowledge to your business to help you succeed!
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Choose Between And Individual Or Professional Seller Account
When it comes to Amazons seller plans, you have two options:
If youre going to sell more than 40 products per month, then signing up as a professional is your best bet. Even if youre selling as a hobby and dont consider yourself to be a professional, this plan will help you save money.
But, if youre planning to sell on a smaller scale , select the individual plan.
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Selling In Gated Categories
Amazon also calls these Categories and Products Requiring Approval. As we mentioned earlier, some dozen categories on Amazon are gated, meaning you need to get special permission to list/sell items in those categories. If you have products in those categories to sell, you should start the ungating request process immediately after getting registered, so you can take advantage of the first 30-days free program that is typically available on all new Professional Seller accounts. So if your request to sell in a gated category is turned down, you should still have enough time to decide whether to cancel your Professional Seller account before you are charged a monthly fee after the first 30 days has passed. If the majority of the products you plan to sell are in gated categories you dont get permission to access, it may not make a lot of sense to continue efforts to be an Amazon seller.
While you wait for your ungating request to be processed, you will not be able to list any products in those relevant categories, but can list products in any category that doesnt require such ungating.
Amazon Has Already Started Gating Specific Brands And Skus
During your first 30 days with a seller account, we encourage you to add all of your intended catalog to your Amazon seller account.
It wont take long to establish whether you will have problems with specific brands and SKUs.
You may need to change your catalog or close your account if Amazon is restricting the products you intended to sell.
Want more insights like this?
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Enter Your Billing Information
Another way Amazon is now verifying a potential sellers identity is to make sure their credit card information is valid.
So, after youve chosen your marketplace, youll be asked to enter in the number and expiration date of one of your credit cards, as well as the name that appears on that card.
When youre done, click Next at the bottom of the page.
Stats About B2b Customers
- Over 5 million registered business customers ranging from small businesses to large enterprises:
- 80+ of the Fortune 100 companies
- 92 of the 100 biggest US hospital systems
- 45 States
- 90 of the 100 largest cities and counties
- B2B customers have a larger basket size than B2C
- On average, B2B customers return products less frequently
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