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Are you just thinking about starting a business on Amazon? Of course, this is a good idea, but there are several solutions ahead of you. Here we will consider in detail one of them. Namely, creating an Amazon individual seller account or an Amazon professional seller account.

The information below sheds light on the advantages and disadvantages of types of Amazon seller accounts. Therefore, very soon, you will be able to make an informed decision.

Amazon Individual vs. Professional

The critical factor that determines the right plan for each seller is the sales volume on the Amazon platform. Even a rough forecast makes a choice more accurate.

Usually, the individual selling plan Amazon is suitable for those persons whose turnover will be up to 40 items per month. Accordingly, more than 40 are for an Amazon professional seller account.

Regardless of the option you would like to choose for your business, get started by finding out how Amazon Seller Central account works and how to use it in the most effective way for your store.

Individual Seller Account

An Amazon individual seller is typically someone who wants to sell a few items on Amazon. However, it could be a seller who tests the platform and does not need the additional features offered by a professional seller account.

You need to note a few important things if you are planning to make an individual seller account. The first thing is this: 

While you do not have to pay a monthly subscription fee, you need to pay an additional $0.99 per item for every sold product. It is an addition to the referral fees and variable closing fees that are for both accounts.

Aside from the selling fees, there are also other significant factors that you need to consider before creating an individual seller account. These include the following:

  • You cannot use third party services
  • You cannot apply to sell in restricted Amazon categories
  • You won’t be eligible for the Buy Box where the majority of the sales happen. (The caveat though is if you utilize FBA, you’ll still get the buy box!)

It is essential to note the listing of products is free for both types of accounts. So, if you still wonder, “Can an individual sell on Amazon?” the answer is YES. First, however, you need to settle a $0.99 per item fee, as mentioned above.

You can create an Amazon listing in a couple of simple steps in order to add your products to the marketplace and showcase them to potential customers.

Professional Seller Account

The Professional Seller account is highly recommended to all new sellers. Having a professional account will help you take the business a lot more seriously, especially in terms of meeting the 40 items per month threshold. So if you plan on selling more than 40 items each month, it is best to sign up for the Amazon Pro seller account.

Professional sellers, however, need to pay $39.99 per month. This fee is charged upon the creation of your professional account. The $0.99 per item fee, however, is already waived.

There are major benefits in having a professional seller account, though. Here are some of the reasons why becoming a professional seller is more advantageous:

  • Cost Savings
    The more items you sell on your Amazon professional account, the more your incremental costs decrease. You can sell 300 items and still pay the same fee. It only takes 40 items per month to “break even” on your professional seller fee, and everything that goes beyond that will seem like a bonus. This appears to be a rare gift in the industry, where fees commonly surge the more you sell items.

It is okay to doubt if you can sell 40 items each month on Amazon, but it is not difficult (especially if you are a user of the FBA program).

  • Access to Third-Party Services
    With an individual account, you need to list multiple items one at a time. This makes work time-consuming and tedious. With a professional account, on the other hand, you are given access to third-party services such as repricers, email autoresponders for getting more product reviews, PPC tools etc.

For instance, you can batch list your products using the inventory service and also print labels that are on demand. For new sellers who want to launch multiple products, this tool can be beneficial in creating listings in a couple of minutes. This feature is a great one since time plays an important role in the business industry.

  • Access to Feedback and Review Tools
    If you have a Professional Seller Central account, you not only get access to third party services, you likewise get access to other helpful tools. SageMailer, for example, is a tool you can use to email your customers on Amazon so you can ask for product reviews or seller feedback. This is especially helpful in growing your sales and establishing compelling product listings. Also, read our guide and find out the best way to get Amazon reviews. Once you create a Professional Seller account, you are recommended to sign up for SageMailer. You can take advantage of the free 21-day trial for every new user.
  • Privilege to Apply for Restricted Categories
    Amazon has several sub-categories that are restricted. These include – but are not limited to – topical, toys, and even groceries during the holidays. So if you’re planning to apply to sell these products, it is best to acquire a professional account.
  • Eligibility for the Buy Box
    If you want to blow through your inventory, one of the best ways is to create a Professional Seller account. This is not possible if you are not a professional seller. Sellers with unusually hot items typically want to win the buy box so that their products can sell out quickly. If you’re an FBA seller, though, it’s an exception.
  • Access to Sponsored Products
    Another major benefit of professional selling is it provides you access to Sponsored Products. This feature allows you to target shoppers on Amazon based on keyword or term search. With the Cost-Per-Click (CPC) Sponsored Products, you can choose keywords, establish a daily budget, and bid for ad placement automatically to increase visibility for your products and boost your sales.
  • Access to Information and Inventory
    Getting order information and managing inventory plays a crucial role in selling your items on Amazon successfully. With a Professional Seller account, you will have access to beneficial reports that will allow you to manage these important elements more closely.

How to Sell Using an Amazon Merchant Account

Now that you know the pros and cons of both accounts, it is time to get started. Selling on Amazon regardless of the type of your account is pretty much fast and easy. 

Below are the simple steps that you should take if you plan to sell on Amazon:

  1. Sign up for an Amazon account
  1. List the items you want to sell
  • List existing items on Amazon
  • List new items
  1. Sell your items
  • Try your best to win the Buy Box
  1. Ship your items
  • Choose Seller Self-shipping
  • Choose Fulfillment by Amazon
  1. Receive payment every time an item sells.

Note: Amazon has a Gift Messaging service, which allows your customers to write their gift messages for either individual products or entire orders. Amazon also has a Gift Wrap service, which allows customers to choose and pay for every item in their order that they want to be gift-wrapped.

How to Downgrade Amazon Seller Account or Upgrade

You have probably noticed the notable differences between an individual seller account and a professional seller account. Take note of these things if you want to start selling with your FBA business.

It is also significant to remember that upgrading your account whenever you feel like it is possible. For example, if you are unsure how many items you will list when you first set up your account, an individual seller account may be a good choice.

There is no need to feel pressured to upgrade your account to a professional one, but that should be your goal. You can upgrade or downgrade your Amazon seller account anytime, anyway.

If you want to upgrade your Amazon account, you can follow these easy steps:

  • Sign in to your Amazon Seller Central Account.
  • Scroll through the bottom of the page, and you will find Settings. Then, click the Account Info.
  • Click ‘Manage’ in the Your Services section.
  • Click Upgrade just next to the type of account.

If you want to downgrade your Amazon account from a Professional Seller account to an Individual Seller account, you can follow steps one through three. Then, click Downgrade in Step four.

Closing an Amazon Seller Account

If you want to know how to cancel an Amazon seller account or close your account permanently, here’s how:

  • Look for the Contact Us page.
  • Select Close your account.
  • Accomplish the form and select Submit a request.

You will either receive an email confirming that your Amazon seller account has been closed or a different one explaining why your account cannot be closed at the moment.

Professional Account Allows Accessing Marketplace Web Services (MWS) and Third-Party Services Such as SageMailer

With a Professional Seller account, you can integrate with to integrate with third-party services using Amazon MWS. This way you’ll be able to use very helpful tools such as SageMailer. It helps you to automate your customer service by sending customers a sequence of follow-up emails and feedback requests for leaving a product review. This type of feedback is crucial for creating a competitive product listing and increasing your sales since it provides customers information for making a well-thought purchasing decision. So when you sign up for a Professional Seller Central account, immediately sign up for SageMailer – there’s no risk thanks to its free 30-days trial and no credit card policy.

To Sum Up

This article walks through the significant deciding factors you need to look at when identifying which Amazon account type suits you best. 

If you are still uncertain which option is right for you and are selling less than 40 items each month, an Individual Seller account may be your best chance. And then, once you are selling 40 products every month or find the need for additional features, you can learn how to change your selling plan on Amazon and upgrade to a professional account. Most new sellers take this route when starting to sell on Amazon. 

Your decision boils down to how you see your business in the future. An individual plan only becomes ideal if:

  • You are just looking for a way to learn how the system works.
  • You only have a few things to sell on Amazon and do not plan on growing an actual business.
  • You are sure you will not sell more than 40 items every month.
  • You do not need the additional features by a Professional Seller account.

So, for those who want to grow their business on Amazon, acquiring a Professional Seller account will come as an easy decision.