If you're thinking about selling on Amazon, one of the first decisions you'll need to make is choosing the right Amazon seller account. One of the main deciding factors is your goal for selling. Are you looking for a channel to sell some used items? Amazon in addition to eBay may be a great vehicle. However if you are thinking about Amazon as a business, then you really need to understand the differences below. Amazon offers two types: Individual and Professional. Knowing the differences between them can help you choose the account that best fits your goals.
Fees: What Will It Cost?
The fee structure is a key factor when deciding between the two:
- Individual Account: There’s no monthly fee, but you’ll pay $0.99 for every item you sell. While that might seem like a good deal at first, the costs can add up quickly if you sell a lot.
- Professional Account: This account comes with a monthly fee of about $39.99, but you won’t have to pay per-item fees. If you’re planning to sell more than 40 items a month, this option will save you money in the long run.
| Individual Account | Professional Account | |
|---|---|---|
| Per month subscription fee | $0 | $39.99 |
| Per item fee | $0.99 | $0 |
Sales Volume: How Much Will You Sell?
Your expected sales volume is also important:
- Individual Account: There's no cap on how many items you can sell, but the $0.99 per-item fee means 40 sales a month is the breakeven point. Below that, Individual is cheaper, making it ideal for casual sellers or hobbyists who don't plan on moving large quantities.
- Professional Account: Above roughly 40 items a month, the flat $39.99 subscription costs less than paying per item, giving you the flexibility to scale your business as it grows.
Features: What Tools Do You Get?
The features available with each account can also influence your decision:
- Individual Account: You’ll have access to basic selling tools and can list your products. This is often enough for people who are just getting started.
- Professional Account: As you'd expect, if you are running it as a business, the right Amazon seller account will unlock advanced tools, such as bulk listing, detailed sales reports, and advertising options. These features can help you manage and grow your business more effectively.
Access to Amazon Programs: How Much Exposure Will You Get?
The type of account you choose can also impact your access to various Amazon programs:
- Individual Account: Your access will be limited. You can still get the Prime badge on FBA offers, since Amazon handles fulfillment either way, but you're locked out of featured-offer (Buy Box) eligibility, advertising, bulk listing tools, and the Selling Partner API (SP-API).
- Professional Account: The right Amazon seller account means having full access to all Amazon programs, which can help boost your visibility and increase your sales.
4 Advantages of a Professional Account Over an Individual Account?
- Winning the Buy Box (where the large majority of sales on multi-seller listings occur)
- Advertising products
- Selling in gated categories
- Integrating with third-party software
Do You Want to Sell in Gated Categories?
These gated categories include options such as:
- Automotive Parts & Accessories
- Business to Business (B2B) products
- Collectibles Coins
- Fashion Jewelry
- Fine Art
- Fine Jewelry
- Grocery, Food & Gourmet
- Industrial & Scientific
- Professional Services
- Sports Collectibles
- Video, DVD, & Blu-ray
- Watches
Which is the Right Amazon Seller Account for You?
If you’re just starting out and want to keep costs low, the Individual account might seem like the better choice. However, if you’re planning to sell more than 40 items per month and want access to more advanced tools and features, the Professional selling plan is likely worth the investment.
Keep in mind that you can also upgrade later: many sellers start on the Individual plan and switch to Professional once their volume justifies it.
Ultimately, your decision should be based on your selling goals and how quickly you plan to grow. Choose the option that aligns best with your business needs!
