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Amazon Professional Seller vs Individual Seller Plan - Which is the Right Choice for You in 2024!
1. Introduction
When you start selling on Amazon, one of the first decisions you’ll face is choosing between the two available seller plans. Amazon offers the Amazon Professional Selling Plan and the Amazon Individual Seller Plan. Each plan comes with its own advantages and disadvantages.
This article will help you understand these differences and guide you in selecting the best plan for your business needs.
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2. Comparison of Amazon Seller Plans
As described earlier, Amazon offers two selling plans, each providing a distinct set of features and benefits. Understanding these can help you make an informed decision for your business. The image below provides a detailed comparison of the different programs available under each plan.
3. Major Differences - Amazon Professional Seller vs Individual Seller
When choosing between the Amazon professional seller and individual seller plans, understanding the key differences and benefits can greatly impact your success. While both plans offer a range of 27 tools and services, we’ve identified 8 crucial tools and services that significantly contribute to long-term success on Amazon.
The primary distinction between the two plans is the sales volume: the individual plan is ideal for those selling fewer than 40 units per month, while the professional selling plan is designed for sellers anticipating higher sales volumes. Below, we’ll discuss these essential tools and services.
3.1. Subscription Fee
The Amazon professional selling plan costs $39.99 per month as a fixed subscription fee, allowing you to sell an unlimited number of orders each month. This predictable monthly fee can be beneficial for businesses with high sales volumes. However, it’s important to note that if you choose to use the Amazon FBA program, you will still need to pay the Amazon FBA fees per product separately.
In contrast, the individual seller plan does not have a monthly subscription fee. Instead, individual sellers pay a per-item fee for each sale, which can be more cost-effective for those with lower sales volumes. This flexibility can be advantageous for new sellers testing the market or those with limited inventory.
3.2. Per Item Selling Fee
Under the individual seller plan, there is no monthly subscription fee. Instead, you pay a per-product fee of $0.99 each time an item is sold. For example, if you sell 20 units in a month, you would pay a total of $19.80 to Amazon (20 units x $0.99 per unit). This pay-as-you-go approach can be cost-effective for sellers with low sales volumes or those just starting out.
On the other hand, the Amazon professional seller plan does not charge a per-item sold fee. It allows you to sell an unlimited number of products without incurring additional per-item costs. This can be more economical for sellers with higher sales volumes, as it provides cost certainty and scalability.
3.3. Restricted Categories
Amazon has certain categories that are restricted, meaning sellers must apply for approval to list products in these areas. These restrictions are put in place to maintain high standards and ensure product quality.
With the individual seller plan, you are not permitted to apply for approval to sell in restricted categories. However, the Amazon professional selling plan allows you to apply and potentially gain approval to sell in these categories.
Below are some of the restricted categories on Amazon:
- Automotive Parts & Accessories
- Business to Business (B2B) products
- Collectible Coins
- Fashion Jewelry
- Fine Jewelry
- Fine Art
- Grocery, Food & Gourmet
- Industrial & Scientific
- Professional Services
- Sports Collectibles
- Video, DVD, & Blu-ray
- Watches
Having the ability to sell in these categories can significantly expand your product range and customer base, making the Amazon professional seller plan a valuable option for sellers looking to grow their business.
3.4. Amazon Featured Offer
The Featured Offer, commonly known as the Buy Box, is a prominent window that appears at the top right of a product detail page, above the “Buy Now” button. This automated feature highlights products to help customers easily find what they need and compare alternatives based on factors such as price, condition, and shipping speed. Winning the Buy Box can significantly increase your sales as it directs more customers to your listing.
With the individual seller plan, access to the Featured Offer is limited, which can restrict your product’s visibility and potential sales. This limitation means that individual sellers may find it harder to compete with those who have more consistent Buy Box visibility.
In contrast, the Amazon professional selling plan provides unrestricted access to the Featured Offer. This means that as a professional seller, your products are eligible to appear in the Buy Box 100% of the time, enhancing your chances of attracting customers and increasing sales. This advantage makes the professional selling plan particularly beneficial for those aiming to maximize their visibility and competitiveness on Amazon.
3.5. Brand Building Tools
Brand building tools such as Enhanced Brand Content (EBC), Brand Story, and Brand Store are not available to individual sellers on Amazon. These tools play a crucial role in enhancing product listings and driving conversions.
- Enhanced Brand Content (EBC) and Brand Story: These appear below the listing bullet points and provide detailed product descriptions, high-quality images, and rich text. This enhanced content helps in improving the customer’s shopping experience, thereby increasing the conversion rate.
- Brand Store: This feature allows you to create a dedicated storefront for your brand on Amazon. It lets you showcase multiple products, drive traffic to your store, and ultimately boost sales. The Brand Store is a powerful tool for building brand identity and providing a cohesive shopping experience.
3.6. Promotions and Discounts
Promotions and discounts are effective strategies to attract customers and drive sales on Amazon. Offering discounts can incentivize potential buyers and increase conversion rates. Additionally, Amazon hosts major sales events such as Prime Day, Cyber Monday, Black Friday, and more, where shoppers anticipate significant discounts, leading to exceptionally high sales volumes.
In the Amazon professional seller plan, sellers have the capability to create and manage promotions and discounts. This includes percentage-off discounts, buy-one-get-one (BOGO) offers, and other promotional strategies. These tools enable sellers to strategically boost sales and attract customers during key shopping periods.
Conversely, the individual seller plan does not offer options to create promotions or discounts. Sellers on this plan miss out on opportunities to leverage promotional campaigns during peak sales periods, potentially limiting their ability to maximize sales and compete effectively.
3.7. Amazon Advertising Tools
Amazon has evolved into one of the most competitive marketplaces, driven by a growing number of third-party sellers. To stand out amidst this competition, advertising your products using Amazon’s advertising tools has become essential.
In today’s Amazon landscape, effective advertising is crucial for product visibility and sales growth. The Amazon professional seller plan provides access to Amazon’s robust advertising tools, allowing sellers to create targeted ad campaigns that increase product visibility and attract potential customers.
Conversely, the individual seller plan does not include options for advertising products on Amazon. Without access to these advertising tools, sellers on the individual plan may face challenges in achieving visibility and competing effectively against other sellers who utilize Amazon’s advertising capabilities.
4. Choosing Between Amazon Professional and Individual Plan
Deciding between the Amazon professional seller plan and the individual seller plan hinges on your business goals and growth strategy. The professional seller plan, with its fixed monthly subscription fee of $39.99, offers unlimited sales potential and access to crucial tools like advertising options, brand-building features, and eligibility for the Buy Box. This plan is ideal for sellers aiming to scale their operations, maximize product visibility, and participate in major sales events such as Prime Day and Black Friday.
In contrast, the individual seller plan, which charges a per-item fee of $0.99 without a monthly subscription, suits sellers with lower sales volumes or those testing the market. However, it lacks access to important tools like advertising and brand-building features, which can limit growth opportunities on the platform.
For sellers looking to establish a long-term presence and scale their Amazon business to a 7-figure or more operation, the professional seller account is highly recommended. Its comprehensive suite of tools and strategic advantages make it the preferred choice for serious sellers aiming to thrive in the competitive Amazon marketplace.
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About Ecom Brainly
Ecom Brainly – A Full-Service Amazon agency that focuses on Sustainable Growth and Profitability for Our Partners (clients).
We been selling on Amazon since 2017 and has had to adapt for every change that Amazon has made along the way. Amazon is an ever changing marketplace and Ecom Brainly has his team ready to handle any and every challenge.
Is your brand having challenges with growth, profitability, advertising, reporting etc – If yes, please contact us today!
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