The decision regarding the best Amazon selling plan to subscribe is a major concern for any seller looking to utilize their e-commerce journey to the full extent. Due to the existence of Individual and Professional selling plans, it is important for one to determine which one is best suited for the objectives of the business.
Irrespective of whether one is an entrepreneur starting or an established retailer with intention to grow, knowing all the details regarding individual and professional plans will be key to their success. So, let’s break it down.
Important Characteristics That Distinguishes Amazon’s Individual And Professional Plans From Each Other?
But before getting into the details, it is crucial to first note the major contrasts of the two plans. The individual plan and professional plan are different when it comes to such features as cost, their benefits as well as their objectives, hence they cater for sellers with different requirements. Here is how they appear side by side:
Amazon Individual Seller Plan
- Fees: You pay $0.99 per item sold. There are no monthly subscription fees.
- Features: Limited tools and services. Ideal for low-volume sellers.
- Best For: Beginners, casual sellers, and those testing the waters of e-commerce with fewer than 40 items sold per month.
Amazon Professional Seller Plan
- Fees: A fixed monthly subscription fee of $39.99, regardless of the number of items sold.
- Features: Advanced tools for inventory management, bulk listing, advertising, and detailed analytics.
- Best For: High-volume sellers, established businesses, and those looking to scale operations with more than 40 sales per month.
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Have a look: How Can Small Sellers Compete with the Big Brands on Amazon?
Key Factors to Evaluate When Deciding Seller Plans Offered by Amazon
When choosing between the selling plans offered by Amazon, focusing solely on the features comparison may be misleading for a seller. Following are the key areas that a seller should consider when choosing between the two sellers plans on Amazon which is professional seller plan and individual seller plan:
Expected Sales Volume
The individual seller plan is cheap and affordable as it does not charge a subscription fee on a monthly basis. So for those intending on making less than 40 sale transactions in a month, this plan is recommended. However, for large businesses expecting more sales, avail the professional seller plan as it helps in reducing per item fees and getting better tools for running the business.
Business Scale and Growth
Are you starting with eCommerce or expanding an already existing one? The individual selling account has limited features and therefore is suited for smaller sellers. In contrast, the professional plan has a lot more complex features built that enhance growth such as bulk listing, promo and offer tools and analytics.
Need for Advanced Features
Reserves such as billing tools, advertisement, and sales can be blocked if the professional seller plan is not purchased. If this is a critical feature that is vital for success purposes, then buying the plan would be worth the investment.
Budget Considerations
It seems that the Individual Plan is free of ongoing monthly subscriptions, however, it does charge 99 cents for each item sold. The Professional Plan on the other hand, has a sub fee of $39.99 per month and seems to be better for the plans with selling volumes above 40 units per month.
Marketing and Advertising Goals
It is clear that if one intends to create traffic via amazon ads or running promotions the seller would have to opt in the Professional seller plan. This one has the good marketing ad tools which the Individual plan doesn’t.
Advantages of Selling on Amazon as an Individual
The Amazon Individual Seller Plan has its perks, especially for those just starting:
No Monthly Commitment
Unlike the Professional Plan, the Individual Plan allows sellers to avoid fixed monthly costs, making it perfect for those unsure about their sales consistency.
Ease of Use
The plan’s straightforward setup and minimal features make it ideal for sellers who want to get started quickly without navigating complex tools.
Flexibility
Since there’s no monthly subscription, sellers can experiment with different products or markets without worrying about recurring fees.
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Why the Amazon Professional Seller Plan Is Worth It
For sellers planning to grow or manage a high-volume business, the Professional Plan is packed with features designed to streamline operations:
Access to Advertising Tools
Professional sellers can leverage Amazon’s advertising options, such as Sponsored Products and Sponsored Brands, to boost visibility and drive traffic to their listings.
Enhanced Inventory Management
With tools for bulk listings and inventory tracking, sellers can manage large product catalogs efficiently.
Eligibility for the Buy Box
Professional sellers are eligible to win the Buy Box, a prime spot on product pages that significantly boosts sales potential.
Advanced Reporting
Detailed analytics and sales reports enable sellers to monitor performance and make data-driven decisions.
How to Change Your Amazon Seller Plan
Switching between the Individual and Professional plans is straightforward:
Steps to Upgrade to Professional:
- Log in to your Amazon Seller Central account.
- Click the gear icon and select “Account Info.”
- Under “Manage Your Services,” select “Selling on Amazon.”
- Choose the Professional Selling Plan and click “Apply Changes.”
Steps to Downgrade to Individual:
- Log in to your Seller Central account.
- Follow the same steps to navigate to “Selling on Amazon.”
- Select the Individual Selling Plan and confirm.
Note: Some services require the Professional Plan, so you may need to disenroll before downgrading.
Comparing Amazon FBA: Professional vs. Individual Plans
Both plans can be used with Amazon’s FBA program, however, depending on your business strategy, you may prefer one over the other. Here’s how they compare when combined with FBA:
- FBA Individual Seller Plan: This plan is ideal for occasional sellers and small businesses as it allows them to use FBA which stores, packs and ships their products without the payment of a subscription.
- FBA Professional Seller Plan: By using FBA with the Professional Plan, large organizations are able to sell even more advanced features and other useful tools such as bulk inventory and shipment monitoring analytics.
What about this: Amazon 1P vs 3P Selling: What Is The Better Choice for Your Business?
Case Studies: Real-Life Scenarios
Case 1: Small Handmade Business
Sarah, an artist selling handmade jewelry, started with the Individual Seller Plan. With monthly sales under 40 items, this plan allowed her to manage costs while testing her market. As her business grew, she transitioned to the Professional Seller Plan to access bulk listing tools and advertising.
Case 2: Established Electronics Retailer
John owns a mid-sized electronics store and sells over 200 items monthly. He opted for the Professional Seller Plan from the start, taking advantage of detailed sales reports and promotional tools to optimize his business.
The Right Plan, Backed by the Right Partner
Opting for Amazon Seller Professional and Individual plans hinges on your business objectives, financial considerations, and anticipated growth. However, you shouldn’t have to make this choice by yourself. Allow Manage Amazon to assist you at every stage, from choosing a plan to reaching success on Amazon.
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