Selling on Amazon can be a great source of income, considering the fact that it already has a large customer base. However, the main dilemma here is whether to become a professional seller or an individual seller.
In Amazon, professional sellers enjoy more perks than individual sellers. It’s one reason why they have higher monthly fees. Be that as it may, whatever account type you choose, always remember that you’re about to establish a business. You are not here to show off at all; instead you are affiliating with Amazon to market your products and earn passive income.
For individual sellers, they can sell less than 40 products on Amazon. They are also prohibited on making new listings as well as applying to sell on restricted Amazon categories such as Personal Care, Grocery, Shoes etc. On the other hand, professional sellers can sell unlimited products. When it comes to the kind of items that they can sell, only professional sellers are allowed to sell products that are under the jewelry, shoes, automotive parts and beauty product category.
There is no subscription fee for individual sellers but for professional sellers, they would be asked to pay a fee of $39.99/month.
Although individual sellers need not pay the subscription fee, they are required to pay $0.99/item plus referral and variable closing fees as well. On the other hand, professional sellers will only need to pay for the referral and variable closing fees.
If you choose to be an individual seller, then you need to know that you are not allowed to use third-party services. Creating new listings is also not possible and so, you need to make sure that your products are already active. Apart from that, applying to sell in Amazon’s restricted categories is also not possible.
Now, for professional Amazon sellers, the good news is that they can enjoy the benefits that a professional seller has for a month without any charge and that mean great savings on your part. Nevertheless, this would only be given to those who have chosen to become a professional seller during the sign-up process and not those who have only decided to upgrade their account. Professional sellers can also upload several items all at the same time by using a spreadsheet. They also earn Buy Box eligibility and seller reports access.
So, which one is better – being a professional seller or an individual seller? Well, if you only have a few items in your inventory and you just wanted to try out your luck in Amazon selling, then you should consider being an individual seller. However, if you want Amazon selling to be your main source of income and you are planning to do it for the long term, then becoming a professional seller is an ideal choice for you.