New sellers looking to put up their online store on Amazon are always faced with the dilemma of choosing which type of seller account should they set up. Should they create an individual seller account, or should they opt to open a professional seller account to start selling on Amazon?
For us to make an informed decision when choosing the best option for our business, we need to have a better understanding of the difference between having an individual seller account and securing a paid, professional seller account on Amazon.
Difference Between Individual and Professional Seller Accounts on Amazon
Amazon Individual Seller Account
According to Amazon individual seller accounts is for:
“… sellers who don’t need access to inventory tools and reports for volume selling.”
Under the individual selling plan, you don’t have to pay a monthly subscription fee. You pay a per-item fee in addition to other applicable fees.
Amazon Professional Seller Account
On the other hand, the professional Amazon seller account gives the seller access to inventory tools to upload batch files and the ability to manage orders through feeds and reports. These tools are beneficial to most medium to large-sized businesses.
In the professional selling plan, you pay a nonrefundable monthly subscription fee regardless of whether you list or sell anything. The benefit is that you don’t pay a per-item fee when an item sells. Of course, all other fees are charged as applicable.
To give you a better idea of the key differences between the two selling plan types, here’s a chart listing several seller account features for the individual and the professional seller accounts.
Why Choose a Professional Amazon Seller Account?
Here’s a quick breakdown of the features detailed above and their significance when selecting a professional seller account.
- Allowed Items for Sale. There are certain product categories that only sellers who have professional accounts are allowed to sell. Such categories include, but are not limited to jewelry, collectibles, fine art, automotive products, and videos on DVDs and Blu-ray. If you are wanting to sell in one of these categories, then you may want to choose the professional route.
- Subscription Fee. An individual seller account is required to pay $0.99 whenever he or she sells an item on Amazon. This may seem minimal to the $39.99 subscription fee, but the per item fee can add up. For example, if you sold 40 items, you would already be investing a total of $39.60. If you know you will be selling more than 40 or at least 40, the subscription fee may be a better option for you.
- Buy Box Eligibility. Amazon chooses Buy Box placement holders from a pool of professional sellers. Individual sellers will not have the chance to be featured in the Buy Box. It is important to note that merchants who win the Amazon Buy Box have far greater chances of outselling their competitors, and increasing sales/revenue.
- Tax Calculations. Sales tax is normally required by your state. If you are one who needs to collect sales taxes for the items that you sell, then you have to have a professional Amazon seller account.
- Third-Party Users. Inventory management software such as SellerMobile won’t be able to access your account on Amazon Seller Central, if you’re only signed up for an individual seller account. In order for you to take full advantage of third-party apps and tools, you must upgrade your individual account to a professional account.
These are some of the benefits of creating a professional Amazon seller account. You will be able to take advantage of the full-suite of selling features available to Amazon sellers. It’s simple to set up your professional account. And when you are good to go – be sure to look into a third-party application that can help you boost your sales and selling experience.