Once you’ve decided to start selling on Amazon, you’ll quickly be met with your second decision: Which Amazon seller plan should you choose: Professional or Individual?
These Amazon selling plans target two general types of Amazon sellers, beginners or those with a few items to sell and professionals looking to launch a successful business, each with fees, perks, and resources designed to support each business efficiently. Each plan has unique features and costs, and it is essential to consider your current and projected sales volume and budget when deciding.
Below, we’ll compare the two available seller plans to help you examine the Amazon Individual vs Professional selling plan to determine which makes the most sense for you and your Amazon business.
Types of Amazon Seller Accounts
Amazon offers two main types of Amazon seller accounts: Individual and Professional. Each of these Amazon seller plans comes with its own set of features, benefits, and limitations. Let’s dive into the details of each plan to help you determine which one suits your needs best.
Individual Seller Plans
The Individual seller plan is Amazon’s entry-level option, perfect for those dipping their toes into the e-commerce waters. With this plan, you’ll pay a $0.99 fee per item sold, plus other applicable selling fees. It’s an excellent choice for sellers just starting out, testing new products, or selling less than 40 units per month. The best part? You can upgrade from the Amazon individual seller account to an Amazon pro account at any time as your business grows.
Best For
- Getting started and learning the basics of selling on Amazon
- Selling fewer than 40 units per month
- Minimizing your initial investment
- Anyone sure of selling on Amazon but without a product to sell
Advantages
- No monthly subscription fee
- Low-risk entry into e-commerce
- Flexibility to experiment with various products
- Easy upgrade path to Professional plan
Limitations
- $0.99 fee per item sold
- Inability to win the Buy Box
- No access to advertising tools
- Limited features (e.g., no bulk listing tools, restricted category access)
Pro Tip: If you’re selling as an Individual on Amazon and searching for a product to sell, filter out Restricted Categories in Product Discovery to remove products from your searches that will only be accessed on the Professional plan.
Professional Seller Plans
The Professional seller plan is designed for businesses looking to scale their operations on Amazon. For a monthly fee of $39.99, you get access to a suite of advanced tools and features to help you grow your business more efficiently. This plan is ideal for sellers planning to move more than 40 units a month or those aiming to build a brand and scale their operations.
Best For
- Anyone selling more than 40 units per month
- Entrepreneurs aiming to start and scale their business
- Sellers in restricted categories
- Sellers needing advanced tools and features
Key Benefits
- Unlimited product listings
- Access to advanced seller tools
- Buy Box eligibility for increased visibility
- Brand Registry opportunities
- Amazon Advertising Platform access
- Ability to sell in restricted categories
Additional Perks
- Ability to create Amazon storefronts
- Enhanced brand storytelling via A+ Content
- Access to restricted categories
Differences Between Amazon Individual vs Professional Seller Plans
Check out the side-by-side Amazon selling plan comparison below, detailing the key features that make all the difference in the Amazon Professional vs. Individual debate.
As shown in the above chart, the Individual plan allows you to sell on the marketplace with the basics, while the Professional plan offers a much more advanced set of selling tools to kickstart and turbocharge your online business.
Which Plan Is Right for You?
Choosing the right plan really comes down to what works best for your business, given your goals, resources, and the product(s) you’re selling. Let’s explore a few key questions to help you figure it out!
How Many Products Do You Plan To Sell?
Start with the Individual selling plan if you plan to sell fewer than 40 items a month or if you’re sure about selling on Amazon but not sure what to sell quite yet. However, if you expect to sell more than that, consider the Professional selling plan, as it offers better value. The Individual plan charges a fee of $0.99 for each item sold, which can add up quickly.
Let’s break down the real costs with a quick cost analysis of Amazon seller plans. Hypothetically, let’s say you sell 45 items in a month. Here’s what it would look like from a cost perspective:
Individual Plan Costs:
- Per-item fee: $0.99 × 45 = $44.55
- Monthly subscription: $0
Total: $44.55
Professional Plan Costs:
- Per-item fee: $0
- Monthly subscription: $39.99
Total: $39.99
Is Amazon professional seller worth it? If you sell enough items, absolutely. As you can see from this scenario, this results in a net savings of $4.56 on the Professional plan, with the difference growing larger with each additional item sold. For instance, at 100 items per month, the Individual plan would cost $99 while the Professional plan remains at $39.99, resulting in a $59.01 monthly savings.
Even if you sell 25 or more items monthly, we strongly recommend considering the Amazon professional seller account. This plan provides additional benefits that could be useful for your business, especially if you plan to scale up and want to get acquainted with its perks.
Do You Plan to Sell in Restricted Categories?
One of the more appealing Amazon Professional account benefits is access to restricted categories that are otherwise off-limits to Individual sellers. These categories include:
– Automotive Parts & Accessories
– Business Products (B2B)
– Collectible Coins
– Fashion & Fine Jewelry
– Fine Art – Grocery & Gourmet Food
– Industrial & Scientific
– Professional Services
– Sports Collectibles
– Video, DVD, & Blu-ray
– Watches
Do You Need To Win the Buy Box To Reach Your Goals?
The Amazon Featured Offer, formerly the Buy Box, is a prerequisite to dominate sales. The Amazon Buy Box is the area on a product’s page where shoppers can quickly add an item to their cart or purchase directly with a click.
When multiple sellers offer the same product, they compete to have their offer featured in the Buy Box. One seller receives credit for the sale, while others miss out on sales. It’s estimated that 82% of all sales on Amazon go to the seller positioned in the Buy Box. Without Buy Box eligibility, you’re competing for just 18% of potential sales on average. Even worse, you’re likely competing with other sellers, resulting in receiving a fraction of a fraction of the sales.
Amazon decides who gets the Buy Box based on several factors, like price, shipping speed, customer reviews, and seller performance metrics. They’re looking for the option that provides the best overall value and experience for the shopper. So, sellers with competitive pricing, fast delivery, and great ratings have a better shot at winning the Featured Offer. However, only sellers on the professional plan are eligible for this prime real estate.
If this is important to you, opt for the Professional plan. If you sell retail arbitrage on a smaller scale, selling on Amazon as an individual likely better suits your needs, as you will almost always be selling on someone else’s listing.
Do You Plan On Advertising on Amazon?
When considering Amazon Individual vs. Professional selling plan, it’s important to note that you’ll need a Professional plan to use Amazon’s advertising console and run pay-per-click (PPC) campaigns, which is one of the primary advantages of the Amazon Professional Seller plan for scaling. That’s your ticket to boosting visibility and driving sales through ads. Without it, your product’s exposure will rely on organic ranking or referrals from emails, shared links, and methods outside of the Amazon ecosystem.
Pro Tip: To amp up your advertising game, check out our state-of-the-art Kinetic PPC management tool! It’s like having an agency dedicated to your Amazon Advertising efforts, empowering you to amplify successful campaigns, halt underperforming campaigns, and utilize real-time automation to expand your reach exponentially while staying within your defined goals and resources.
Frequently Asked Questions
Q: Can I switch plans later?
A: Yes, you can upgrade or downgrade your plan anytime within Seller Central.
Q: Do both plans pay the same referral fees?
A: Yes, Amazon’s referral fees (typically 8-15% of the sale price) apply equally to both plans. However, there are additional Amazon seller fees you’ll need to be aware of, as they’ll play a pivotal role in your bottom line. For more information about these costs, check out our Amazon seller fees breakdown.
Q: What happens if I exceed 40 items on an Individual plan?
A: You can sell more than 40 items, but you’ll pay $0.99 per sale. There’s no ceiling, but it becomes increasingly costly compared to the Professional plan.
Q: Do I need a Professional plan to use FBA?
A: No, both Individual and Professional sellers can use Fulfillment by Amazon (FBA).
Final Thoughts on Deciding Between Amazon’s Professional and Individual
Choosing between the Individual vs. Professional Amazon seller plan becomes easy once you clarify your goals. Each plan comes with perks, benefits, and costs to support the two general types of Amazon sellers, so understanding your own goals and resources is vital when determining which Amazon seller plan is best for you.
- Individual Seller Plan: Designed for those just starting or selling a few items here and there.
- Professional Seller Plan: Geared toward business owners aiming for growth and higher sales volumes.
To sum it up, if you’re dipping your toes into the world of Amazon selling, the Individual plan offers a cost-effective way to test the waters or to sell a few items here and there. On the other hand, the Professional plan is ideal for committed sellers aiming to grow and scale their business.
Have you decided which plan is right for you? Take the next step with Viral Launch! From unparalleled market analysis to insightful keyword research and time-saving listing optimization tools, we provide the information and expertise Amazon sellers use to take their business to the next level, whether starting or scaling up.
Additional Resources
Our team at Viral Launch offers comprehensive resources to guide your Amazon selling journey, far beyond choosing between the Amazon Individual vs Professional selling plan.
