If you’re looking to start your eCommerce business and sell products on Amazon, one of the first decisions you’ll face is choosing the right Amazon seller account. With over 300 million active customer accounts across the globe, Amazon provides an incredible platform for sellers but picking the correct seller plan is crucial to your success.
This blog will explain the two types of Amazon seller accounts the Individual Seller Plan and Professional Seller Plan. We’ll dig into their features, costs, and which one is better for your eCommerce business model. By the end of this guide, you’ll be ready to make an informed decision and take your first step toward running a successful Amazon business.
Amazon’s Two Types of Selling Plans
Before you start selling, Amazon offers you two main account types tailored to different needs: the Individual Seller Plan and the Professional Seller Plan. Each plan comes with unique features and pricing, catering to varying levels of sellers, from casual side hustlers to full-fledged businesses. Below is a breakdown of both plans.
1. Individual Seller Plan
The Individual Seller Plan is designed for those who are new to the Amazon business model or wish to test the waters before fully committing. It’s a pay-as-you-sell option that is ideal for part-time sellers or those who foresee a limited number of sales per month.
Features of the Individual Seller Plan:
- Cost: No monthly subscription fee; instead, sellers pay $0.99 per item sold.
- Listings: Ability to list products across more than 20 categories.
- Fewer Tools: This plan does not offer advanced selling tools like bulk listing or access to Amazon APIs.
- No Access to Buy Box: Products listed under this plan are not eligible to win the coveted Amazon Buy Box, which significantly impacts sales performance.
- No Additional Perks: Individual sellers do not get access to advertising tools, detailed reporting, or promotions.
Who Should Choose the Individual Seller Plan?
This plan is a good fit if:
- You’re an individual just starting out and want to validate your eCommerce business model.
- You plan to sell fewer than 40 items per month.
- You’re focusing on Amazon FBA (Fulfilled by Amazon) for a more hands-off approach.
While simple and low-cost, the Individual Seller Plan may limit your ability to scale as a seller in the long run due to its restrictions.
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2. Professional Seller Plan
If you’re serious about growing an Amazon business or are already an established seller, the Professional Seller Plan is the way to go. It’s designed for those who aim to optimize their strategies and maximize their sales potential.
Features of the Professional Seller Plan:
- Cost: A flat monthly subscription fee of $39.99, regardless of sales volume, with no per-item selling fees.
- Unlimited Listings: Sell unlimited items across more than 30 categories, with many restricted categories also unlocked.
- Advanced Selling Tools: Offers access to bulk listing processes and Amazon’s API for seamless inventory management.
- Buy Box Eligibility: Professional sellers can compete for the Buy Box, a crucial feature for boosting visibility and conversions.
- Promotions and Advertising: Access to tools like Sponsored Products ads, Lightning Deals, and A+ Content to optimize marketing efforts and attract customers.
- Data and Insights: Enjoy detailed selling reports, inventory performance data, and insights to guide business decisions.
- Customized Shipping Rates: Ability to set your own shipping rates and regions.
Who Should Choose the Professional Seller Plan?
This plan is best suited for sellers:
- Running a full-fledged eCommerce business.
- Selling more than 40 items per month, making the subscription cost worthwhile.
- Looking to build a brand (possible through Amazon private label strategies).
- Who want access to enhanced features like advertising tools and detailed reports.
With seamless scaling opportunities, the Professional Seller Plan is tailored for robust businesses ready to succeed in the competitive world of Amazon FBA.
A Quick Pricing Comparison
If you’re unsure which plan fits your eCommerce business model, here’s a straightforward comparison:
| Feature | Individual Seller Plan | Professional Seller Plan |
| Cost | $0.99 per item sold | $39.99/month flat fee |
| Monthly Listings | Best for <40 | Unlimited |
| Buy Box Eligibility | No | Yes |
| Advanced Tools | No | Yes |
| Reports & Analytics | Limited | Extensive |
Use this table to align your goals and expected sales volume with your chosen plan.
Key Factors to Consider When Choosing a Plan
Making the right choice between the two plans depends on several factors, including your sales goals, budget, and business model. Here’s what to weigh in:
- Sales Volume: If you plan to sell fewer than 40 items per month, the Individual Seller Plan will likely be more cost-efficient. However, for higher sales volumes, the Professional Seller Plan becomes the more economical choice.
- Long-Term Goals: If you’re testing the waters or selling part-time, the Individual Seller Plan can help you start with minimal financial commitment. But for those building a serious Amazon business or launching a private-label product, the Professional Seller Plan is non-negotiable.
- Scalability Needs: For growing businesses that want insight, reporting, advertising access, and the opportunity to win the Amazon Buy Box, the Professional Seller Plan is essential.
- Amazon FBA Integration: Both plans support Amazon FBA, but the Professional Plan allows for better optimization using advanced tools.
Our Recommendation
For casual sellers or individuals just starting with Amazon, the Individual Seller Plan provides an easy and low-risk entry point. It’s a great way to familiarize yourself with Amazon’s eCommerce business model.
On the other hand, for dedicated entrepreneurs and businesses ready to scale, the Professional Seller Plan is the obvious winner. Its advanced tools and access to the Buy Box make it a no-brainer for enterprises serious about creating a strong Amazon presence.
No matter which plan you choose, Amazon offers an incredible platform to reach millions of customers worldwide.
Read our latest blog on- Amazon private label business of beginners
Final Thoughts – Picking the Plan for YOU
Choosing between Amazon’s Individual Seller Plan and Professional Seller Plan depends primarily on your goals, budget, and sales expectations. While one leverages simplicity, the other focuses on scalability and growth.
If you’re launching your eCommerce dream or expanding your existing business, committing to the right plan early on can set the foundation for success. And remember, you can easily upgrade plans anytime from your Amazon Seller Account if your needs change.
Pick your plan today and take the first step toward building your winning Amazon business model
