Choosing Between Amazon Individual Seller vs Professional Plans
Amazon offers two primary selling plans tailored to different seller needs: the Amazon Individual Seller vs Professional plan. Each plan is designed to provide sellers with a distinct set of tools, features, and fee structures, making it essential for sellers to choose the one that aligns with their business goals and, most importantly, sales volume.
While the Individual plan incurs per-item fees that can accumulate with higher sales, the Professional plan provides cost savings for high-volume sellers, alongside enhanced features to support business growth.
This guide breaks down both options, helping you determine which aligns best with your goals.
Brief Overview of Amazon Selling Plans
Choosing between the Individual and Professional Selling Plans depends on things like how much you expect to sell, your long-term business goals, and the tools you need to run your business.
The good news is, you can switch plans anytime to match your business needs as they change.
Individual Selling Plan
The Individual Selling Plan is great if you’re an occasional seller. It works on a pay-as-you-go basis, charging $0.99 for every item you sell.
It’s a good choice if you have small inventory and don’t need any advanced tools. You’ll get basic features for creating listings and managing orders, but you won’t have access to extras like bulk listing or promotion tools.
This plan is a solid choice if you’re just starting out or don’t plan to sell a lot of items consistently.
Professional Selling Plan
Conversely, the Professional Selling Plan is designed for established businesses that anticipate higher sales volumes. It costs $39.99 a month and gives you access to more advanced tools, including inventory management, detailed analytics, and eligibility for the Buy Box.
This plan is particularly beneficial for sellers who aim to scale their business and use features such as bulk listings and advertising opportunities. We’ll dig deeper into these features when we look closer at the differences between Amazon’s selling plans.
Amazon Individual Seller vs. Professional Seller: Comparing Selling Plans
Amazon Individual Selling Plan
The Individual Seller Plan on Amazon is designed for casual sellers or those who are just beginning their e-commerce journey. This model allows sellers to avoid a monthly subscription fee, making it a cost-effective choice for those who sell fewer than 40 items per month.
- Fee Structure
Sellers under the Individual Plan pay a per-item fee for each product sold, which always stays 0.99$ + referral fees. It would be a misconception to think that you only pay 0.99$ per item, since the referral fee adds an extra cost based on the selling price and product category.
Depending on the category, referral fees can vary between 3% and 45% of the total sales price, including shipping costs. For each item sold, you’ll be charged either a percentage of the total price or a minimum fee, depending on which is higher.
Currently, the minimum amount equals $0.30 for every category (except for Fine Art, Gift Cards, Grocery and Gourmet, Merchant Fulfilled Services, Media – Books, DVD, Music, Software, Video, Video Games and Gaming Accessories, Video Game Consoles), meaning that if the standard referral fee percentage would result in less than $0.30, you’ll still pay the $0.30 minimum.
For example, if you sell a $20 item under a category with a 15% referral fee, here’s how it breaks down:
≻ The $0.99 flat fee applies per item sold.
≻ The referral fee would be $3.00 (15% of $20).
This means your total fees for that single sale would add up to $3.99. While the $0.99 charge is straightforward, the referral fee can vary quite a bit depending on the product’s price and category.
- Features and Limitations
The Individual Seller Plan offers access to basic selling tools and customer support, allowing users to create new product pages in the Amazon catalog and manage listings one at a time. However, it lacks many advanced features available to Professional Sellers, such as bulk listing tools and access to restricted categories, which limits potential revenue opportunities.
For instance, Individual Sellers cannot sell in categories like automotive parts, beauty products, and jewelry, which are accessible only to Professional Sellers.
Overall, the Individual Seller Plan provides a flexible option for those who don’t expect frequent sales, making it particularly suitable for new sellers testing the waters selling products on Amazon without the commitment of a monthly subscription.
Amazon Seller Professional Plan
The Professional Selling Plan is designed for businesses and high-volume sellers who expect to sell more than 40 items per month. Let’s see how it differs from the individual plan.
- Cost Structure
Unlike the Individual plan, the Professional Seller Plan allows sellers to pay a flat monthly fee of $39.99, no matter how many products they sell in a month.
Although the referral fee applies to this plan as well, meaning for each item sold, you’ll still pay a category-based referral fee on top of the flat monthly cost. For example, if you sell a $50 product in a category with a 12% referral fee, the breakdown would look like this:
≻ The flat monthly fee of $39.99 covers unlimited sales.
≻ The referral fee for the $50 item would be $6.00 (12% of $50).
This means for that single sale, you’d pay $6.00 in referral fees, but you wouldn’t need to worry about additional per-item charges, regardless of how many items you sell.
- Major Features of Professional Selling Plan
Unlike the Individual Plan, the Professional Seller Plan offers a suite of advanced features, among which:
Buy Box
A key perk of being an Amazon professional seller is having a shot at winning the Buy Box. The Buy Box is the spot on a product page where buyers can quickly add your item to their cart.
If you’re not a professional seller — even if you’re the only one offering a product — customers will need to take extra steps to complete their purchase, which can make the process less convenient.
Advertising Options
Professional sellers can also advertise their products using tools like Sponsored Products, Sponsored Brands and Sponsored Display.
Sponsored Products work by highlighting your items at the top of search results or on product pages. You choose the keywords you want to target, and your ad shows up when shoppers search for those terms.
Another option is Sponsored Brands, a tool that allows you to showcase multiple products along with your logo. These ads appear prominently in search results, giving shoppers an idea of what your brand is about. If you’re trying to establish a solid brand presence, this is a great way to introduce your products to a wider audience.
Lastly, there are Sponsored Display ads, which help you target people who’ve already shown interest in your products or similar ones. These ads can appear on and off Amazon, inspiring shoppers to come back and make a purchase.
Other Advantages of Amazon Professional
✔ Bulk Listing and Inventory Management;
✔ Promotions and Coupons;
✔ B2B Selling Tools;
✔ Global Selling Programs;
✔ Advanced Reporting;
✔ Dynamic Pricing;
✔ API Integration;
A detailed comparison of options available for both selling plans can be found on this official webpage.
What Selling Plan Is For You?
When choosing between Amazon’s Individual and Professional Selling Plans, it’s all about finding the right fit for your business needs.
If you’re unsure, consider your sales volume and long-term goals. Selling fewer than 40 items a month? The Individual Plan is likely your best bet.
Expecting higher sales or aiming to grow your brand? The Professional Plan provides the tools to help you succeed. And remember, you’re not locked in — you can switch plans anytime to adapt to your business growth.
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