Amazon Individual vs Professional Seller: Which Is Better?

Amazon, with its vast and continually growing customer base, is one of the most attractive marketplaces for anyone, including resellers who are looking to expand their business. Currently, Amazon offers two distinct selling plans: Individual and Professional. Both of these come with their own set of benefits and downsides. So, how do you decide which one is better suited to your needs? Well, in this article we aim to help you understand the pros and cons of both, aiding you in making an informed decision about which plan suits you best.

Understanding the Two Plans

In short, the individual plan is for new sellers or those who move relatively small amounts of volume whilst the professional plan is for those who are more experienced and are looking to get the most out of Amazon. The Individual Seller plan, for those who sell less than 40 items a month, has no monthly fee but charges $0.99 per item sold. On the other hand, the Professional Seller plan charges a $39.99 monthly fee but doesn’t charge per item sold. However, in order to fully understand each plan we will need to delve a bit deeper, which is what we will now do, starting with the individual seller plan.

Benefits of Selling as an Individual Seller

No Commitment: There’s no long-term commitment when you sign up as an individual seller on Amazon. This means you have the freedom to sell as much or as little as you want, whenever you want. If you decide to take a break or switch to a different e-commerce platform, there’s no subscription to cancel or a complicated exit process to navigate.

Learning Opportunity: In line with the first point, starting as an individual seller on Amazon is an excellent way to learn the ropes of online selling. It gives you the chance to familiarize yourself with the platform, test different products, and understand what sells best. This allows you to gain invaluable experience without the pressure of meeting high sales quotas or paying significant upfront costs.

Low Upfront Cost: One of the biggest draws of the Individual Seller plan is its low upfront cost. As mentioned previously, the Individual Seller plan has no monthly subscription fee. Instead, you pay a flat fee of $0.99 for every item you sell. This means if you’re a beginner or a casual seller looking to shift a few items, you don’t have to worry about a subscription eating into your profits.

Ease of Use: If you aren’t too worried about accessing more complex seller tools then the Individual Seller plan offers a user-friendly interface that makes it easy to list and sell items. The platform provides a simple, streamlined process that guides you step-by-step.

Drawbacks of Selling as an Individual Seller

Whilst it certainly has its benefits, there are some drawbacks to being an individual seller on Amazon, such as those listed below.

Limited Selling Privileges: As an individual seller, you may face restrictions on the types of items you can sell. Some categories are only open to professional sellers.

Lack of Advanced Selling Tools: Amazon’s array of advanced selling tools, including bulk listing, advertising options, and advanced analytics, are typically not available to Individual Sellers. Whilst this may not be of notice to you as a beginner, you may wish to utilize these tools as time goes on and you grow your presence on Amazon.

Lack of access to Amazon FBA: As an individual seller, you will not be able to access Amazon’s Fulfillment Program, a major disadvantage as Amazon FBA is arguably the most profitable way to make money on the platform right now.

Now, let’s take a closer look at the Professional Seller Plan.

Benefits of Selling as a Professional Seller

Access to restricted categories: As noted previously, Amazon limits sales in certain product categories to ensure that only sellers who meet specific criteria can sell these products. As a Professional Seller, you gain the privilege to apply for permission to sell in these restricted categories, thereby expanding your product range and potentially boosting your sales.

Bulk listing and order management: Professional sellers get access to Amazon’s bulk listing and reporting tools. If you have a wide range of products, these tools can save you significant amounts of time by allowing you to upload multiple listings simultaneously. You can also manage and fulfill large orders more efficiently.

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Eligibility for top placement and Buy Box: Professional sellers are eligible to win the Buy Box and Top Placement on product pages. Winning the Buy Box, which is the white box on the right side of the product detail page where customers can add items for purchase to their cart, can significantly increase sales as it simplifies the purchasing process for the customers.

Advertising and promotional tools: As a professional seller, you can use Amazon Advertising to promote your products and brand, potentially helping you reach more customers. These tools also include the ability to offer coupons, deals, or promotions.

Greater control over shipping: Professional sellers have more control over their shipping rates (except for books, music, video, and DVD products), and can also set different shipping rates for different regions and types of products. In contrast, as an individual seller, you are restricted and must stick to the costs decided by Amazon.

Drawbacks of Selling as a Professional Seller

The truth is that there aren’t many “drawbacks” to being a Professional seller on Amazon. However, for argument’s sake, here are some:

Upfront costs: As mentioned numerous times now, the Professional Seller program means you must pay $40 each month. This can be a lot if you are just starting out, even if it is arguably worth it.

Complexity: The array of tools you unlock when you become a Professional Seller can be overwhelming if you are a beginner and you may wish to first learn the ropes of the absolute basics of selling on Amazon through the individual plan. However, as you’re business grows you will eventually want to learn these tools anyways and thus arguably it’s better to start right from the off.

Final Verdict

The decision between the Individual and Professional Seller plan boils down to your sales volume, the types of items you sell, and your long-term plans. However, the professional plan would have to be our choice as it offers great value, giving you more control over your business costs and visibility.