Amazon Individual vs. Professional Seller Plans – What’s Better?

Amazon

One of the major decisions you’ll have to make as a novice Amazon merchant is the kind of seller plan you use on the platform. There’re two FBA selling options: individual and professional. This blog explains and compares Amazon individual seller vs. professional subscriptions, as well as the features and fees of each.

Individual Selling Plan

When opting for an Amazon seller profile, the most critical question you have to ask yourself is how involved you wish to be in your business in the marketplace.

The individual selling plan is the right fit for users who wish to do away with a few spare products around the house. It’s also a good choice for people who wish to try selling on AMZ before going all in and broadening their company to something like the private label model.

Finally, it allows you to access Amazon’s seller account and forums without committing to a $39.99 payment per month.

Pros and cons of individual account

If you have a couple of extra goods lying down around your house, this option seems plausible to get rid of them. Below is a list of the perks and downsides of the individual seller plan:

Pros

  •  No commissions per month, and you pay only $0.99 per unit when sold.

Cons

  • It’s cost-effective only if you sell less than 40 products per month.
  • You can’t use the Amazon FBA option.
  • You can’t manage the store and your inventory.
  • You can’t register for advertising on AMZ.
  • You can’t sell in restricted niches.

 Professional Selling Plan

If you are going to try the online arbitrage option, you need a professional selling profile. The two fundamental reasons to use this option are:

  • Ungated goods: The professional merchants can sell some goods that are restricted to individual users. 
  • Account price: If you go for online arbitrage, you wish to source and move lots of items per month, much more than 40. Thus, it is rational to spend more for a professional selling plan at the beginning instead of expending a dollar per item.

Pros and cons of professional olan

The pro subscription will probably work better for you if your main goal is to develop your business and generate income. Nevertheless, here is a bit more you should keep in mind before making a final decision:

Pros

  • You can use Amazon’s FBA program. With it, the marketplace is responsible for holding and dispatching your products, and you can focus on your business.
  • Your number of sales is not limited, and you may sell as much as you can.
  • You can manage the inventory in Seller Central.
  • You can grow your business with User Permission.
  • If you have an FBA and professional plan, you have more chances of winning the Buy Box.

Cons

  • It has a monthly commission of $39.99

Can I Switch Between Selling Plans?  

Yes, you may switch at any moment you would like.

It’s the route many sellers take when they start selling on AMZ. First, they set up an individual account as a hobby. Then, as soon as they sell over 40 items monthly, they upgrade to a professional account.

Here is how to upgrade the Amazon seller account:

  • Log in to the Seller Central account
  • Proceed to the bottom of the page and choose Account Info in the Settings menu
  • In the Your Services bar, click Manage
  • Choose Upgrade near Account Type

Note: If you wish to switch from a pro seller profile to an individual one, the first steps are the same, and in step 4, just click Downgrade. Keep in mind that the $39.99 cost is non-refundable. 

Amazon Individual vs. Professional Selling Plans: Which One To Choose? 

If you only wish to get rid of a couple of goods and make some spare change, go with the individual seller plan. Instead, if you want to make a regular income selling on the platform and build a business, signing up for a professional account is the smarter option.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.