If you’ve looked into setting up an Amazon seller account, you have probably run into the question of which one to go with: individual or professional. There are merits to both, so you will need to ask yourself some questions before deciding.
Why Choose an Individual Seller Account?
If you’re new to the game but would like to get your feet wet with little monetary expense, the individual seller account will probably work best for you. This type of account charges you $0.99 (plus any additional fees) for every item sold, so you’ll only pay for the things you sell. If you’re planning on selling less than 40 items per month, this is a low-risk way for you to test out the Amazon experience.
Why Choose a Professional Seller Account?
The Amazon professional account is geared toward more serious retailers who are anticipating selling more than 40 items per month. In the professional account, you pay a standard rate of $39.99 per month (plus any additional fees), but you are not charged for the individual items that you sell.
The professional account also offers several bonuses that you wouldn’t get as an individual seller. These include:
Streamlined Processes: The Amazon professional account gives you access to an inventory-loading spreadsheet that enables you to upload multiple items simultaneously. This can save you substantial amounts of time, which saves you money in the long run. It also lets you generate reports for what you’re selling, making, etc. Additionally, the professional account is set up to allow you to collect sales tax at the time of the transaction.
Upgraded Advertising: The Amazon professional account gives you additional options for advertising your products. It allows you to buy into Cost Per Click (CPC) advertising as well as the Buy Box. The Buy Box is an application within Amazon that features sellers and improves their visibility to consumers. Non-Buy Box sellers show up in the Used and New section and are not as prominent on the page.
Third-Party Applications: Another major bonus for using the professional account is that it allows you access to third-party inventory and expense management applications. These track your inventory, send customers emails requesting feedback (which can boost your company’s ratings), and monitor your profits.
Other Benefits: If you want to offer your customers promotions or gift services, you can do this easily through the professional account. With a pro account, you can also apply to sell gated items. These items include things like topical creams, baby products, collectibles, and fine art. Because the application process to sell these items is so selective (and can be expensive), there is often less competition, which can generate more sales for you.
No matter what account type you choose now, you don’t have to stay with that account forever. You can transfer from the individual account to the professional if you find that you are selling more than 40 items per month, or that you’d like access to the bonus items. Similarly, if you’ve found that you are not selling as much as you’d like, you can switch back to the individual plan.
Amazon selling can be a tricky business, so if you find yourself with questions about how to navigate it smoothly, attend an Amazon sellers event to learn from experts in the field. Your Amazon store can be far more profitable if you are armed with insider knowledge for succeeding.