Scale Insights Team
Learn how to sell on Amazon as an individual seller. Choose between the Individual seller account for fewer sales and pay-per-sale fees, or the Professional seller account for higher volume sales and additional tools. Selling on Amazon offers a straightforward way to start with minimal upfront costs.
Read on to discover how you can begin and grow your Amazon selling business.
Account Types
When deciding to sell on Amazon, you have two main account options to consider: an Individual Seller Account or a Professional Seller Account. Your choice will affect the fees you pay and the tools at your disposal.
Individual Seller Account
If you're looking to sell on Amazon as an individual, the Individual Selling Plan might be your go-to option.
With this account, you pay no monthly fee; instead, for each item sold, Amazon charges a $0.99 fee plus referral fees which vary by category.
Individual selling on Amazon is suitable if you're planning on selling fewer than 40 items per month.
This plan lacks access to advanced selling tools such as bulk listing and inventory management, which are available to Professional Sellers.
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Fee structure: $0.99 per item sold + additional referral fees
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Monthly fee: $0
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Recommended for: Low volume sales (less than 40 items per month)
Professional Seller Account
Opting for a Professional Seller Account when you sell on Amazon as an individual who's planning to scale up is beneficial.
Although this incurs a monthly fee of $39.99, the per-item fee is waived, making it cost-effective for higher volume sales.
As a Professional Seller, you gain access to advanced selling tools, the ability to win the Buy Box, sell in restricted categories, and use Amazon advertising platforms.
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Fee structure: No per-item fee, referral fees apply
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Monthly fee: $39.99
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Advanced tools: Bulk listing, inventory management, Amazon advertising
Also read our guide: Different Types Of Amazon Seller Accounts You Must Know
Getting Started
Embarking on your journey as an individual seller on Amazon is straightforward, providing a clear path for occasional sellers or those wishing to test the market. Let's break down the necessities.
When to Sign Up as an Individual Seller
You can opt to sign up as an individual seller if you plan to sell fewer than 40 items per month or are in the stages of market testing.
Selling on Amazon as an individual is a cost-effective choice, as it involves a low fee per item sold, making it ideal for occasional selling.
Sign-Up Process
To register on Amazon as a seller, you will need the following:
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Personal information: Ensure you have a government-issued ID.
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Tax information: Be ready to provide your appropriate tax details.
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Bank account: Have your bank account number and routing number handy for transactions.
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Credit card: A chargeable credit card is necessary for account setup.
The steps to register are:
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Visit Amazon's seller sign-up page.
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Select the 'Individual' selling plan.
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Fill in your personal and tax information as prompted.
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Enter your credit card and bank account details.
Listing Your First Product
Once registered, you can add a product to Amazon's marketplace. Consider these steps:
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Navigate to the inventory section and choose 'Add a Product'.
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Search for the item you want to sell or create a new product listing if it's not currently available.
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Specify the category and provide a condition description.
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Set your price and define the shipping options.
You might also want to read: How to Create a New ASIN in Amazon: Step-by-Step Guide
Fulfillment Methods
When you start to sell on Amazon as an individual seller, choosing the right fulfillment method is crucial for managing your shipping process and inventory effectively.
Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) is a service where you send your inventory to Amazon's fulfillment centers, and they handle storage, shipping to customers, customer service, and returns for those items.
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Fulfillment Fees: Amazon charges for handling your products and services like packing, delivery, customer service, and returns.
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Inventory Management: Amazon manages your inventory and offers programs such as inventory placement, which affects where your inventory is stored.
Using FBA might help you become eligible for Prime benefits, which can increase your chances of winning the Buy Box.
Fulfillment by Merchant (FBM)
Alternatively, Fulfillment by Merchant (FBM) means you handle all aspects of storage, shipping, and customer service for your products.
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Shipping: You control the shipping process, which includes setting your own shipping fees and rates for your customers.
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Inventory: The responsibility for inventory management rests with you, and you'll be using your own resources to store your products.
Account Considerations
When choosing to sell on Amazon, you’ll find that there are two main types of seller accounts: individual and professional. Your decision will significantly impact how you sell on Amazon, especially in terms of the features available to you and the costs involved.
Advantages of an Individual Seller Account
An individual seller account is well-suited if you're exploring how to sell on Amazon as an individual with low-volume sales. Here are the key advantages:
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No Monthly Fee: You're exempt from the monthly subscription fee that professional accounts incur.
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Ease of Setup: It's simpler to set up an individual selling account on Amazon than a professional one.
It’s ideal if you plan to sell on Amazon on an individual seller basis with less than 40 items sold per month, thus saving on the professional plan’s recurring costs.
Limitations and Scaling
However, as you scale your business, an individual seller account might pose some challenges:
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Per-Item Fee: You pay a $0.99 fee per item sold, which can add up if you're selling large volumes.
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Advanced Tools: You lack access to advanced tools such as bulk listing and analytics, which are essential for scaling your online business.
Fee Structure
When deciding to sell on Amazon as an individual, understanding the fee structure is imperative to your success.
Understanding Seller Account Fees
As an individual seller on Amazon, you are subject to two primary fees: the monthly subscription fee and variable costs per sale. Here's how these break down:
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Monthly Subscription Fee: Unlike the Professional selling plan, which costs $39.99 per month, the individual plan charges no monthly fee. However, for each item sold, you pay a $0.99 fee.
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Referral Fees: Every sale on Amazon is subject to a referral fee. This is a percentage of the total transaction amount, including shipping and gift wrap, and can range from 8% to 15%.
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Fulfillment Fees: If you opt for Amazon's Fulfillment by Amazon (FBA), you pay a fee based on the weight and dimensions of your products, but this logistic service can save you time and hassle.
Learn more about Amazon Seller fees here: Amazon New Fees for 2024: Guide to the Latest Pricing Changes
Product Sourcing and Research
When you embark on the journey to sell on Amazon as an individual seller, understanding product sourcing and research is crucial. It's the foundation that can make your presence in the Amazon marketplace successful.
Finding Profitable Products
To find profitable products, you'll first need to identify product categories of interest. Use the following tips to streamline your research:
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Analyze Demand: Look for products with consistent demand throughout the year. Avoid overly seasonal items unless you're prepared for fluctuating sales.
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Consider Profit Margins: Calculate potential profit margins by subtracting the cost of sourcing from your expected selling price.
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Check Competitiveness: SEO plays a role here, as well-optimized product listings can attract more traffic. However, try to select a niche with manageable competition.
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Leverage Tools: Different tools are available for product research. For example, AMZScout can help you identify reselling opportunities by looking at data from the Amazon marketplace.
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Evaluate Suppliers: Establish a reliable supplier with a track record of quality products and delivery timeliness.
In individual selling on Amazon, it's vital to select items that are not only profitable but also complement your business model.
Whether you're selling homemade crafts or retail arbitrage finds, align your product choices with customer needs and market trends.
Remember, success comes from recognising and serving a specific segment of the Amazon customer base with the products they desire.
Account Upgrade
When you start selling on Amazon as an individual, you may decide to upgrade your account to access more features. The process is straightforward and integrated into your Amazon Seller Central dashboard.
To upgrade, follow these steps:
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Log in to Amazon Seller Central.
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Navigate to the 'Settings' menu.
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Select 'Account Info' to find the option to upgrade.
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Choose Professional Account to begin the upgrade.
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Plan Type |
Features |
Costs |
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Individual Plan |
Pay-as-you-go; $0.99 per item sold |
No monthly fee |
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Professional |
Access to more categories, win the Buy Box, bulk listings |
$39.99/monthly fee |
By upgrading, you’re switching from pay-per-item to a flat monthly fee. The break-even point is around 40 items—if you sell any more than that, the Professional account can be more cost-effective.
For an Individual account, selling on Amazon involves the basic use of Seller Central. However, with a Professional account, you not only potentially increase profits but also increase your ability to sell on Amazon as an individual, which becomes more serious and scalable.
Keep in mind, that as you upgrade to a Professional account, you’ll be billed monthly, regardless of sales volume. Carefully consider the costs and benefits before making this change.
If you plan to sell on Amazon individual seller but expect to scale up, the upgrade might be a strategic move to support your growth.
Conclusion
Starting to sell on Amazon as an individual is a great way to enter a huge market without spending a lot of money upfront.
You can choose between two types of accounts: the Individual Seller Account, which is good for small sellers or beginners because you pay a fee per sale, and the Professional Seller Account, which has a monthly fee but offers more features for those who want to grow their business.
Whether you're just starting or planning to expand, Amazon has the right tools and options for your business to succeed.
If you're ready to take your Amazon sales to the next level, consider our specialized PPC advertising services. With a strategic approach, we can boost your product visibility and drive more sales, seamlessly integrating with your chosen Amazon account type.
Frequently Asked Questions
Is an Amazon Individual Seller account worth it?
An Amazon Individual Seller account is ideal for those starting out or selling a limited number of items. With no monthly fee and only a per-sale charge, it's a cost-effective choice for sellers who expect to sell fewer than 40 items per month.
This account type allows newcomers to explore online retail without a hefty financial commitment, but if sales increase, upgrading to a Professional account for more features may be beneficial.
Can I sell FBA with an Individual account?
Yes, you can utilize Fulfillment by Amazon (FBA) with an Individual Seller account. This option enables you to leverage Amazon's resources for storage, shipping, and customer service.
FBA is particularly useful for those unable to handle these aspects of the business themselves. Be mindful of the additional FBA fees, which include handling and storage costs.
What type of license do I need to sell on Amazon?
Licensing requirements for selling on Amazon vary based on your product and location. Generally, most items don't require a special license. However, regulated products like alcohol or certain food items may need specific licenses.
Additionally, local regulations might mandate a business license. It’s essential to research the legal requirements pertinent to your product and area.
Is it easy to sell on Amazon as a seller?
Selling on Amazon can be straightforward, but the ease of success depends on your knowledge of online retail, product type, and business strategy. Amazon offers a user-friendly interface with comprehensive guidance for new sellers.
While setting up and starting is manageable, maintaining success demands strategic efforts like optimizing listings and understanding Amazon’s marketplace dynamics.
