Amazon Individual Seller Vs Professional Seller Plans – Confusion Cleared!

TLDR;

Embarking on an Amazon selling journey involves choosing between two main selling plans on Amazon: Amazon Individual selling plan and Amazon Professional selling plan. The Individual plan suits occasional sellers with a $0.99 per-item fee, while the Amazon Professional selling plan, at $39.99 per month, targets established businesses with advanced tools and unlimited sales. The Individual selling plan is cost-effective for small inventories, while the Professional selling plan offers additional features, advertising opportunities, and exclusive programs. Amazon Sellers can upgrade or downgrade their selling plan on Amazon based on their business needs.

Introduction

Amazon’s selling journey is a thrilling venture, but one of the most critical decisions Amazon sellers face is choosing the right selling plan on Amazon. The Amazon marketplace offers two primary options – the Individual and Professional selling plans, each tailored to different business needs. These Amazon selling plans determine the fees you pay to Amazon, the tools and features available to you, and the overall selling experience. We’ll unravel the significance of this decision, emphasizing how the chosen plan can mould the Amazon sellers experience and significantly impact potential earnings. Let’s dive into the intricacies of these selling plans on Amazon and understand why making an informed choice is the key to a prosperous Amazon business.

• Understanding Amazon Selling Plans
• Let’s Differentiate between Individual and Professional selling plans & Find the best
• How to upgrade or downgrade your current Amazon selling plan?

1. Understanding Amazon Selling Plans

Amazon provides two distinct selling plans on Amazon to accommodate your needs with a suitable set of tools and services at competitive prices.

• • • The Amazon Individual Selling Plan entails a fee of $0.99 per each sale made.

• • • On the other hand, the Amazon Professional Selling Plan requires a flat monthly fee of $39.99, offering unlimited sales without additional charges, regardless of the quantity of items sold.

1.1 Introduction to Amazon Individual Selling Plan

The Amazon Individual Selling Plan is designed for individuals or occasional sellers who are looking for how to sell products on Amazon without committing to a monthly subscription fee. This plan is particularly suitable for those who want to test the waters or sell a limited number of items without incurring a fixed monthly cost.

Here are some key features of the Amazon Individual Selling Plan:

• • • Designed for occasional sellers or those just starting.
    • You pay a $0.99 per item fee for each product sold, in addition to referral fees.
    • Best suited for Amazon sellers with a limited product catalogue and lower sales volume.
    • Limited access to advanced selling tools and analytics.

1.2 Introduction to Amazon Professional Selling Plan

The Amazon Professional Selling Plan is a subscription-based program designed for businesses looking to sell products in the Amazon marketplace at a more advanced and professional level. This plan is an upgrade from the basic Amazon Individual Selling Plan, offering additional features and benefits to Amazon sellers who are looking to scale their operations and take advantage of more advanced selling tools.

Here are some key features of the Amazon Individual Selling Plan:

• • • Geared towards businesses committed to selling on Amazon.
    • Requires a $39.99 monthly subscription fee, but individual per-item fees are eliminated.
    • Suitable for high-volume Amazon sellers with a broader product range.
    • Provides access to advanced tools, such as Amazon inventory management, bulk listing, and customization options.
    • Allows eligibility for additional Amazon programs like Amazon Business and Amazon Global Selling.

2. Let’s Differentiate between Individual and Professional selling plans & Find the best

2.1 Subscription Fee

• Under the Individual Selling Plan, Amazon sellers are charged a $0.99 per item fee for each unit sold. This fee structure is ideal for those who plan to sell a relatively small number of items or have a limited product catalogue. But it also makes it a cost-effective choice for individuals or occasional sellers who may not have a consistent sales volume.

• Unlike the Amazon Individual Selling Plan, which charges sellers per item sold, the Professional Selling Plan requires a $39.99 monthly subscription fee. This fee grants Amazon sellers access to a range of features and tools that can help them manage and grow their business more effectively. 

• For example, if you sold 500 items under the Individual Plan, then the total Amazon fees will be approximately $495 (500x$0.99). However, if you choose the Professional Plan, the total cost for all 500 sold items will be $39.99.

For fewer than 40 items monthly, go with the Individual Seller plan; for over 40 items and more tools, choose the Professional Seller plan.

2.2 Access to Basic & Advanced Tools

• Amazon Sellers on the Individual Selling Plan have access to basic seller tools provided by Amazon. These tools include Amazon listing creation, order management, and customer communication features. However, as compared to the Amazon Professional Selling Plan, there are limitations in terms of advanced tools and analytics.

• Amazon Professional sellers on Amazon gain access to various advanced selling tools and features. This includes bulk listing and Amazon inventory management tools, a buy-box feature, customizable shipping settings, and the ability to create promotions and discounts.

2.3 Referral Fees

• Both plans have referral fees, but the rates may vary depending on the category of the item you are selling on Amazon.

• In addition to the per-item fee, sellers under the Amazon Individual Selling Plan also pay referral fees based on the category of the product. Referral fees are a percentage of the item’s sale price and vary across different Amazon product categories.

• In addition to the subscription fee, sellers under the Amazon Professional Selling Plan are required to pay referral fees for each sale made through the platform. So it is more suitable for established sellers who anticipate a higher sales volume and can benefit from the additional tools and advantages offered by the program.

The minimum referral fee per item sold is $0.30. For if you are selling a sanitiser for $1.00 (it’s a premium, really germ remover) and the referral fee is $0.15, then you will have to pay a minimum $0.30 referral fee instead of $0.15.

2.4 Inventory Management

• Sellers on the Amazon Individual Selling Plan have more basic Amazon inventory management tools. While you can manage your Amazon listings creation and orders, the plan may not be as well-suited for those with extensive inventory management needs.

• Efficient inventory management is crucial in Amazon Professional Selling Plan. The Inventory Dashboard on Seller Central monitors stock and sales metrics, while “Manage Inventory” allows real-time updates. Choose between Amazon FBA (Fulfillment by Amazon) and Amazon Fulfillment by Merchant (FBM) for flexible fulfilment.

2.5 Flexible Account Type

• Sellers have the flexibility to switch between the Individual Selling Plan and the Professional Selling Plan based on their changing needs. This adaptability allows Amazon sellers to upgrade as their business grows.

It’s important for Amazon sellers to carefully evaluate their business goals, anticipated sales volume, and budget constraints when choosing between Individual and Professional Selling Plans on Amazon. The Amazon Individual Selling Plan provides a straightforward and cost-effective entry point for those who are just starting to explore selling in the Amazon marketplace.

2.6 Expanded Product Categories

• While Amazon Individual sellers are limited to certain Amazon product categories, Amazon Professional sellers typically have the opportunity to sell in additional categories. This expanded access allows businesses to diversify their product offerings and potentially reach a broader customer base.

Do you want to sell in restricted categories?

Both Amazon individual sellers and Amazon professional sellers can sell in 20 Amazon categories. Amazon Professional sellers, though, have access to an additional 10 to 12 restricted categories.

          The bonus categories include:

• • • Automotive Parts & Accessories
    • Business to Business (B2B) products
    • Collectibles Coins
    • Fashion Jewelry
    • Fine Jewelry
    • Fine Art
    • Grocery, Food & Gourmet
    • Industrial & Scientific
    • Professional Services
    • Sports Collectibles
    • Video, DVD, & Blu-ray
    • Watches

In addition, certain variations of products —such as Collectible Books — may require an Amazon professional seller account.

If you want to sell in any of these categories, you should consider an Amazon professional seller account.

2.7 Which Amazon selling Plan is Best for Occasional or Established Sellers?

• The Amazon Individual Selling Plan is best suited for occasional sellers who sell infrequently or have a small inventory. It’s an excellent choice for those who want to explore selling on Amazon without committing to a monthly subscription.

• The Professional Selling Plan is specifically tailored for seasoned and established sellers who have demonstrated a proven track record of commitment, experience, and success in their online selling endeavours. This plan provides access to several advanced selling tools, analytics, and additional features that can be beneficial for Amazon sellers looking to scale their operations. However, occasional sellers might not make full use of these features.

2.8 Which Plan Has Reduced Selling Fees?

• In some cases, Amazon Professional sellers may benefit from lower referral fees on each sale compared to Amazon Individual sellers. This can contribute to increased profit margins for businesses selling at a higher volume.

2.9 Which Selling Plans Give Access to Advertise Products on Amazon?

• Unfortunately, you cannot advertise products on Amazon with the Individual Selling Plan. This plan, while cost-effective for beginners with low sales volume, does not include access to Amazon advertising tools like Sponsored Products, Sponsored Brands, and Display Ads.

• Upgrade to the Amazon Professional Selling Plan unlocks various features, including Amazon advertising tools, bulk listing tools, and inventory reports. If you plan to advertise products on Amazon and scale your business, this plan might be worth considering.

2.10 Exclusive Selling Programs

• Amazon often provides exclusive programs and opportunities to Professional sellers, such as the ability to participate in the Amazon Buy Box, which can significantly boost visibility and sales.

• Amazon Professional sellers typically receive priority customer support from Amazon. This can be valuable for resolving issues, getting assistance with account-related matters, and accessing additional resources.

So if you want to enhance your business, the Amazon Professional Selling Plan is geared towards businesses and individuals looking to sell on Amazon at a larger scale. The monthly subscription fee of $39.99 provides access to advanced tools, expanded selling capabilities, and additional support, making it an attractive option for those seeking to grow their online business in the Amazon marketplace.

3. How to upgrade or downgrade your current Amazon selling plan?

3.1 Upgrading Your Amazon Selling Plan

Log in to Amazon Seller Central:

• • • • Log in or create your Amazon seller account.
      • Enter your Amazon seller account credentials.

Navigate to Amazon Seller Account Info:

• • • • Go to “Settings” in the top right corner.
      • Under “Account Info“, select “Your Services.”

Choose a New Amazon Selling Plan:

• • • • Find the “Account Type” section.
      • Look for an option to upgrade your selling plan.
      • Follow the prompts to select and confirm the upgrade.

Review and Confirm:

• • • • Review the details of the new plan.
      • Confirm the changes to complete the upgrade.

3.2 Downgrading Your Selling Plan

Log in to Amazon Seller Central:

• • • • Log in or create Your Amazon Seller Account.
      • Enter your Amazon seller account credentials.

Navigate to Amazon Seller Account Info:

• • • • Go to “Settings” in the top right corner.
      • Under “Account Info“, select “Your Services.“

Choose a New Amazon Selling Plan:

• • • • Look for an option to downgrade your selling plan.
      • Follow the prompts to select and confirm the downgrade.

Review and Confirm:

• • • • Review the details of the new plan.
      • Confirm the changes to complete the downgrade.

Note:

• • Changes to your Amazon selling plans may take effect immediately or at the beginning of the next billing cycle.
  • It’s crucial to understand the features and fees associated with each plan before making changes.
  • If you encounter any issues or have specific questions, consider reaching out to Amazon Seller Support for assistance.

So, Which Selling Plan Should You Opt?

Choosing between Amazon’s Individual and Amazon Professional selling plans is pivotal for your selling journey. The Individual plan, at $0.99 per item, suits occasional sellers, while the $39.99 monthly Professional plan is designed for established businesses with advanced tools. Consider sales volume and budget, as Individual plans are cost-effective for small inventories, while Professional plans offer unlimited sales, advanced features, and advertising opportunities. The flexibility to upgrade or downgrade based on business needs adds adaptability. In conclusion, the right Amazon selling plan is crucial for a prosperous and scalable online business, so carefully review the details and take your next step with proper guidance. 

Reach out to us to manage your Amazon seller account, and our dynamic team of professionals will expertly manage your products, fostering continuous sales growth through strategic Amazon management and targeted marketing initiatives.