So, you’ve been growing your business, and now you’re wondering whether it’s time to switch between an Amazon Individual Seller and a Professional Amazon Seller account, right?
Well, as your business evolves, it’s only natural that your needs will change too. Upgrading or downgrading your account can be a smart move, depending on your sales volume, product categories, and seasonal factors.
Let’s dive in and explore why and when it might be the perfect time to make that switch to help your business thrive even more.
In this guide, we’ll cover the distinctions between Individual Seller and Professional Seller accounts, empowering you to make a well-versed decision for your enterprise.
Why should I switch between account types?
Great question!
Let’s chat about the reasons and explore how it can benefit your business.
Why should I upgrade to a Professional Seller account?
- Save money by avoiding per-item fees
- No more $0.99 fee per item sold
- Unlock access to more product categories
- You can apply to larger variety of categories and focus on your audience
- Benefit from advanced tools and features
- You can list MORE than one product at a time
- Receive priority customer support
Why should I downgrade to an Individual Seller account?
- Save money by eliminating the monthly subscription fee
- $0.99 per item sold vs $39.99 monthly
- Retain access to 20+ product categories
- Access to the gated/professional seller categories listed later in this article will be lost
- Simplify your experience by reducing unnecessary tools
- Having too many options and tools to utilize can be overwhelming
- Minimize expenses during a temporary lull or business pause
- Seasonal products, new product launches, maybe sales have come to a grinding halt?
Switching between account types helps you adapt to your business’s changing needs and sets you up for success. The right choice today might not be the right one tomorrow, and that’s okay.
Keep exploring Amazon Seller accounts to make the best decision for your unique journey.
Introduction to Amazon Seller Accounts
If you’re looking to sell products on Amazon, you have two primary options for seller accounts. This article will help you understand the differences between the two and determine which one is the best fit for your business.
Let’s take a closer look at each account type.
What is an Amazon Individual Seller Account?
An Individual Seller Account is a basic option for sellers who are just starting out or have a limited number of items to sell.
With this account, you can list products in more than 20 categories and pay per-item fees for each item sold. There is no monthly subscription fee, making it an affordable choice for small-scale sellers.
For example, let’s say you’re currently selling 100 items per month using an Individual Seller account. With the per-item fee of $0.99, your total fees for the month would be $99 ($0.99 x 100 items).
However, if you upgrade to a Professional Seller account, you’ll pay a monthly subscription fee of $39.99 instead of per-item fees.
In this case, you would save $59.01 per month ($99 – $39.99) by upgrading to a Professional Seller account, making it a more cost-effective choice as your sales volume increases.
What is a Professional Amazon Seller Account?
A Professional Seller Account is a more comprehensive option for sellers with larger inventories or more significant sales volumes.
With this account, you can list products in over 30 categories and have access to additional tools and features.
You will pay a monthly subscription fee, but you won’t have to pay per-item fees like with the Individual account.
Individual Seller Account: Features and Benefits
The Individual Seller account presents an economical solution for merchants, possessing minimal inventory or testing the Amazon marketplace. Key attributes and advantages consist of:
Pay-as-you-go pricing: Individual sellers pay a fee per item sold, making it affordable for low-volume sellers.
- This fee structure is ideal for those who sell unique items or seasonal products that might not generate consistent sales throughout the year.
Basic selling tools: Access essential tools to manage your inventory, fulfill orders, and monitor sales. These tools include the ability to list items one by one, track orders, and view sales reports.
- While these features may be sufficient for small-scale sellers, they might not be enough for businesses looking to scale their operations.
Amazon fulfillment options: Utilize Fulfillment by Amazon (FBA) or Merchant Fulfilled Network (MFN) to handle shipping and customer service.
FBA: Allows you to store your products in Amazon’s fulfillment centers, while Amazon takes care of shipping and customer service.
MFN: Requires you to handle shipping and customer service yourself.
Both options have their advantages and drawbacks, and you should choose the one that best aligns with your business model and resources.
Limited product categories: Individual sellers can list products in more than 20 categories, but access to certain gated categories may be restricted.
Gated categories often require additional approvals, documentation, and adherence to specific performance metrics.
For instance, imagine you’re currently selling kitchen gadgets with an Individual Seller account, but you’ve spotted an opportunity to expand into selling eco-friendly home products as well.
Upgrading to a Professional Seller account would allow you to access additional product categories like “Home & Garden” and “Health & Personal Care,” making it easier for you to broaden your inventory and reach new customers interested in sustainable living.
Professional Seller Account: Features and Benefits
Are you ready to take your Amazon sales to the next level? By changing to professional seller account you’ll get :
Advanced selling tools: Access powerful tools like bulk listing, customizable shipping rates, and promotional features to scale your business.
Bulk listing allows you to upload multiple product listings at once, saving time and effort.
Customizable shipping rates enable you to set shipping costs based on factors like product weight, dimensions, and shipping destinations.
Promotional features, such as Lightning Deals and Coupons, help you attract more customers and boost sales.
Amazon advertising: Utilize Amazon Advertising to reach a broader audience and increase product visibility.
What additional categories can I apply to?
- Jewelry
- Music & DVD
- Services
- Streaming Media Players
- Video, DVD, & Blu-ray
- DVD and Blu-ray, am I right???
- Watches
- Grocery & Gourmet Food
Professional sellers can create Sponsored Products campaigns, Sponsored Brands campaigns, and Sponsored Display ads to showcase their products to potential buyers.
If you’re interested in Amazon Ads, we recommend reading this article about Sponsored Products and Sponsored Brand ads.
These advertising options can drive traffic to your listings, resulting in higher sales and improved product rankings.
Eligibility for top placement: Professional Sellers can compete for the Buy Box, increasing sales potential.
The Buy Box is the prominent “Add to Cart” button on Amazon product detail pages, and winning it can significantly improve your product’s visibility and sales.
Amazon considers various factors, such as price, shipping speed, and seller performance, when determining Buy Box eligibility.
Expanded product categories: Access to sell in over 30 categories, including gated categories, after approval. This allows you to diversify your product offerings and reach a wider customer base.
To gain access to gated categories, you might need to provide additional documentation, such as invoices, and meet specific performance metrics.
Subscription pricing: A fixed monthly fee covers all sales, making it cost-effective for high-volume sellers. This pricing model allows you to better predict your monthly expenses and allocate resources accordingly.
Pricing Comparison: Individual vs. Professional
Understanding the pricing structure for each account type is essential when choosing the right option for your business.
Here’s a quick comparison:
Individual Seller Account: $0.99 per item sold, plus additional referral fees and variable closing fees.
Referral fees are a percentage of the item’s selling price (typically between 6% and 45%, depending on the product category) and are charged on each sale.
Variable closing fees apply to media items (books, music, videos, DVDs, video games, and software) and are based on shipping destination and item weight.
This fee structure is suitable for sellers who have a small inventory or sell products with irregular sales patterns.
Professional Seller Account: $39.99 monthly subscription fee, plus additional referral fees and variable closing fees.
Similar to the Individual Seller Account, referral fees are based on the item’s selling price and product category, while variable closing fees apply to media items.
The monthly subscription fee makes the Professional Seller Account more cost-effective for sellers with a higher sales volume or a larger inventory.
When choosing between FBA and MFN for fulfillment, be aware of additional costs such as storage fees and advertising costs.
FBA fees depend on factors like
- Product size
- Time of year
While storage fees are based on the volume of products stored. Advertising costs vary depending on the type of campaign and are charged per click.
The Individual Seller Account is suitable for small inventory and low sales volume, while the Professional Seller Account is better for high-volume sellers and established businesses.
The Individual Account has a pay-as-you-go pricing model and basic selling tools, making it affordable for casual sellers.
The Professional Account offers advanced selling tools, expanded product categories, and a subscription-based pricing model for more flexibility and growth potential.
By carefully weighing the features, benefits, and pricing of each account type, you can choose the one that aligns with your business goals and optimizes your success on Amazon.
How to Choose the Right Account for Your Business
Selecting the appropriate seller account depends on various factors, including your business size, sales volume, product categories, growth potential, and available resources.
Sales volume: Analyze your current and projected sales volume.
If you sell fewer than 40 items per month, an Individual Seller account may be more cost-effective. However, if you anticipate selling more than 40 items or plan to scale your business in the future, a Professional Seller account would be a better choice.
Product categories: Evaluate the product categories you plan to sell in. If your products fall within the gated categories or you plan to expand into these categories, a Professional Seller account is necessary to obtain approval.
Additionally, if you aim to diversify your product offerings and cater to a broader customer base, a Professional Seller account will provide more extensive category access.
Selling tools and features: Assess your business needs and determine whether advanced selling tools such as, Amazon Advertising, or Buy Box eligibility are crucial for your success.
If you require features like…
- Bulk listing
- Customizable shipping rates
- Promotional tools to manage inventory and customers
Opt for a Professional Seller account!
Furthermore, if you plan to invest in Amazon Advertising to improve product visibility and drive sales, a Professional Seller account is necessary.
Growth potential: Consider your long-term business goals and growth potential. If you plan to grow and scale your business rapidly, investing in a Professional Seller account can provide the necessary tools and features to support your growth.
Moreover, as your business expands, the fixed monthly subscription fee may become more cost-effective compared to the per-item fee structure of an Individual Seller account.
Resource availability: Evaluate the resources you have available for managing your Amazon business, including time, manpower, and financial resources.
An Individual Seller account may be suitable for businesses with limited resources, as it offers basic selling tools and a pay-as-you-go fee structure. In contrast, a Professional Seller account requires a more significant investment in terms of time and resources to manage advanced tools, advertising campaigns, and an expanded product catalog.
Pros and Cons of Individual Seller Accounts
Pros:
- No monthly subscription fee
- Ideal for small-scale sellers or those just starting out
- Simple and easy to use
Cons:
- Per-item fees
- Limited access to advanced tools and features
- Restricted to 20+ product categories
- No priority customer support
Pros and Cons of Professional Seller Accounts
Pros:
- Access to over 30 product categories
- Advanced inventory management and reporting tools
- Multi-Channel Fulfillment service
- Priority customer support
- More cost-effective for high-volume seller
Cons:
- Monthly subscription fee
- May be too advanced for small-scale sellers or beginners
How do I Upgrade my Amazon IndividualSeller Account to a Professional AmazonSeller account?
Amazon provides the flexibility to upgrade or downgrade your account based on your changing business requirements. Here’s a detailed guide on how to upgrade or downgrade your account:
Upgrading from an Individual to a Professional Seller Account
If you experience increased sales volume, need access to advanced selling tools, or plan to sell in gated categories, you may want to upgrade to a Professional Seller account.
Follow these steps to upgrade:
- Log in to your Amazon Seller Central account.
- Navigate to the “Settings” menu in the top right corner and select “Account Info.”
- In the “Your Services” section, click “Manage” next to “Selling Plan.”
- Select “Upgrade” to switch to a Professional Seller account.
- Follow the prompts to complete the upgrade process, including entering your credit card information for the monthly subscription fee.
- Once you’ve upgraded, you’ll have immediate access to the advanced
- features and tools available to Professional sellers.
Downgrading from a Professional to an Individual Seller Account
If your sales volume decreases, or you no longer need the advanced features of a Professional Seller account, you may want to downgrade to an Individual Seller account.
Follow these steps to downgrade:
- Log in to your Amazon Seller Central account.
- Navigate to the “Settings” menu in the top right corner and select “Account Info.”
- In the “Your Services” section, click “Manage” next to “Selling Plan.”
- Select “Downgrade” to switch to an Individual Seller account.
- Confirm your decision when prompted.
- The downgrade will take effect at the end of your current billing cycle. Your account will be transitioned to the per-item fee structure, and access to advanced selling tools will be removed.
Things to Consider When Upgrading or Downgrading
Before making a decision to upgrade or downgrade your account, consider the following factors:
Timing: If you’re planning to upgrade or downgrade your account, timing is an important factor.
Consider factors such as seasonality, upcoming promotions, and product launches.
When should I upgrade?
- Upgrade to a Professional Seller account before the peak winter season for a winter sports gear business to maximize profits and manage sales effectively.
- Before launching a new product line to ensure a smooth selling experience, and seamless customer experience
When should I downgrade?
- During slower periods to save on the monthly subscription fee while avoiding disruptions to ongoing sales or promotions.
- If your business has experienced a period of high sales volume, but expects a slowdown in the coming months, it might be beneficial to downgrade
Fees: What are the financial implications of switching account types?
Calculate the potential savings or additional costs associated with changing your account type and ensure the decision aligns with your budget and financial goals.
Remember the fees!
Tools and features: Assess the impact of gaining or losing access to advanced tools and features. Consider how the change will affect your business operations, product listings, and marketing strategies.
Just a reminder of a few features!
By thoroughly analyzing these factors and understanding the implications of upgrading or downgrading your account, you can make a well-informed decision that aligns with your business needs and supports your continued success on Amazon.
Conclusion
By thoroughly examining these factors and understanding the features, benefits, and pricing of each account type, you can make an informed decision that best aligns with your business goals and optimizes your chances of success on the Amazon platform.
Remember that your needs may change as your business evolves, so it’s essential to regularly reassess your seller account choice and adjust accordingly. Amazon allows sellers to upgrade or downgrade their accounts as needed, providing flexibility to adapt to changing business circumstances. What will your next move be?
FAQs
Can I switch from an Individual Seller account to a Professional Seller account on Amazon?
Yes, you can easily upgrade your account at any time to access the additional benefits of a Professional Seller account.
How quickly can I start selling once I’ve set up my Amazon Seller account?
After completing the registration process and listing your products, you can start selling as soon as your account is approved, which typically takes 1-3 days.
Do I need a tax ID to set up an Amazon Seller account?
Yes, you will need a tax ID (e.g., EIN, SSN, or ITIN) to register for an Amazon Seller account.
Can I sell internationally with an Amazon Seller account?
Yes, both Individual and Professional Seller accounts have the option to sell in international markets. However, some additional setup and requirements may apply.
What happens if I exceed the listing limit for my Individual Seller account?
If you exceed the listing limit for your Individual Seller account, you may need to upgrade to a Professional Seller account to continue listing products.
Why do I need a professional seller account?
A Professional Seller account is a requirement for participating in programs like Amazon Advertising, the Buy Box, and Amazon Brand Registry, which can enhance your product visibility, sales, and brand protection.
What are the benefits of upgrading to a professional seller account?
- Access to over 30 product categories
- Advanced inventory management and reporting tools
- Multi-Channel Fulfillment service
- Priority customer support
- More cost-effective for high-volume sellers
Did anything in this article spark your curiosity or bring up a question? Comment below or email us at Howdy@PPCFarm.com. We love talking about PPC!
