Amazon offers two main types of seller accounts: Individual and Professional. Each plan is designed to cater to different seller needs based on the volume of sales, the range of features required, and the level of engagement with the platform. As a novice Amazon seller, are you still pondering on choosing an Individual Plan or a Professional Plan? In this blog, we'll explore both plans in detail to help you make an informed decision that aligns with your business goals.
What's An Individual Plan or A Professional Plan?
There're two kinds of seller plans for Amazon sellers who expect to start their business on the platform: Individual and Professional. Sellers are allowed to switch between the two plans based on their sales volume and business needs.
The Individual Plan is suitable for sellers who expect to sell fewer than 40 items per month. It's designed for those just starting out or who sell items only occasionally.
- Costs: There is no monthly subscription fee with the Individual Plan. However, Amazon charges a per-item fee of $0.99 in addition to the usual referral fees that apply to each item sold. Besides, other selling fees may be involved as well.
- Features: This plan provides access to basic selling tools necessary for managing orders and listings directly through the Amazon Seller Central dashboard. It lacks the bulk listing capabilities, advertising options, and other advanced tools available to Professional sellers.
The Professional Plan is tailored for more active sellers who aim to sell more than 40 items per month or require advanced selling tools and analytics.
- Costs: This plan has a monthly subscription fee of $39.99, but the $0.99 per-item selling fee is waived, no matter how many items you sell. The usual referral fees and other selling fees still apply.
- Features: Professional sellers benefit from access to advanced tools like bulk listing and editing, the ability to create promotions and gift services, eligibility for top placement on product detail pages, and access to Amazon's Marketplace Web Service (APIs). Sellers can also apply to list products in restricted categories.
How to Choose A Seller Plan?
As a new Amazon seller, it may be puzzling that how to select a plan that works best for you before you get started. Here are several factors you could take into consideration to help you make an informed decision.
- Sales Volume: Your expected monthly sales volume is the most straightforward factor in deciding between the two plans. If you expect to sell 40 or more items per month, the Professional plan becomes more cost-effective considering the $0.99 saving per item.
- Access to Features: The Professional plan offers significant advantages if you need advanced selling tools. Features like analytics tools, batch processing, and promotions can help optimize your sales strategies and are only available with the Professional plan.
- Marketing Strategies: If you have plans to expand your business, the Professional plan provides the necessary tools to manage your growth efficiently. These tools can help you handle increased order volumes and more complex operations.
- Selling in Restricted Categories: Some product categories are gated and require approval to sell. Only Professional sellers can apply for permission to sell in these restricted categories, which can be a critical factor if your inventory falls within these areas.
- Cost Efficiency: While the Professional plan has a monthly fee, the elimination of the $0.99 per item fee makes it more economical for sellers who exceed 40 sales per month. Additionally, the array of advanced tools provided can help maximize profitability through enhanced selling strategies.
Conclusion
Both Amazon Seller Plans offer valuable opportunities depending on your business size and goals. By carefully assessing your needs against the features and costs of these plans, you can choose a path that not only meets your current needs but also supports your future growth. Don't ignore the flexibility to switch between plans means you can adapt as your business evolves, ensuring that your Amazon selling strategy remains as dynamic and profitable as possible. Are you ready to start your Amazon selling journey?
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