The year is 2019. Amazon is the biggest online marketplace in the world, and continues to grow at a rate like no other. Many believe that because of the enormous customer base that comes with Amazon, it is the perfect marketplace for new and small businesses to start selling. Benefits of selling with Amazon doesn’t end with a huge customer base, there are many other things that Amazon has to offer for its retailers. These benefits depend on one of the biggest decisions you make when registering as a seller; to register as an Individual Seller, or a Professional Seller.
As recommended by Amazon, an Individual account is suitable for those who are planning to sell on a smaller scale; about 40 items and below a month, and don’t require inventory tools or sales reports and feeds. There is no monthly subscription fee for Amazon Individual, but there is a per sale closing fee for every item sold on Amazon. There is also not much customization that can be done with an Individual account, and sellers will not be eligible for any gifts, promotions, or special listing advantages.
With a monthly subscription fee, Professional sellers get to use many features that Individual account owners don’t, and are eligible for benefits and gifts from Amazon. An Amazon Professional account is suitable for medium to large businesses, and owners get feed and reports on sales. The risk here is that the monthly subscription fee is non-refundable, and owners will have to pay regardless of sales made for the month.
Below is a chart by Amazon, comparing Amazon Individual and Amazon Professional accounts:
As you can see, Professional account owners get to use everything that Amazon has to offer. In addition, Professional accounts also get to utilize a very important feature on the platform called the Buy Box. The Buy Box is a section on the right side of a product detail page where customers add products to their cart before checking out. It is a competitive space and as a seller, you can show up in another seller’s product detail page in the Buy Box section. Up 82% of sales go through from the Buy Box. That’s a really big percentage. Here is an example of a Buy Box with other sellers:
So Amazon Individual or Amazon Professional? The decision is in your hands.
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