How to Sell on Amazon as an Individual Seller — Complete Guide
Many people wonder if an individual can sell on Amazon. Sure, anyone can. Amazon is open to individuals, not just big businesses.
Getting started can feel challenging, so you can begin as an individual seller to test if you can create a successful and sustainable e-commerce venture. It's a low-cost way to start, and all you need is a great product and an individual seller account on Amazon.
In this post, we will explore how to sign up for Amazon individual seller account and use it to sell on Amazon.
Individual Vs. Professional Seller Account
An individual Amazon seller account and a professional Amazon seller account are two different types of accounts with distinct features and pricing structures.
Choosing between an individual and professional account depends on your selling volume and business needs.
Individual seller account
If you are just starting or have limited items to sell, an individual account might be a good option to avoid the monthly fee.
Individual seller account features
- Suitable for individuals or small-scale sellers with limited inventory;
- No monthly subscription fee; instead, you pay $0.99 per item sold plus referral fees;
- Limited access to advanced selling tools and reports;
- Not eligible to sell in certain categories (e.g., automotive parts, beauty, and health);
- No access to Amazon's advertising programs like Sponsored Products.
Professional seller account
If you plan to sell frequently more than 40 products per month, the professional account will save you money. In addition, a professional account lets you access additional features, reports, and advertising opportunities.
Professional seller account features
- Designed for established businesses or high-volume sellers;
- Requires a monthly subscription fee of $39.99;
- No per-item fee, but referral fees apply;
- Full access to advanced selling tools, reports, and analytics;
- Access to Buy Box;
- Eligible to sell in all categories, including restricted ones;
- Ability to apply for Amazon's advertising programs to promote products.
Why Sign Up for Amazon Individual Seller Account?
There are several reasons why a seller might choose to sign up for an Amazon individual seller account.
Simplicity and low cost
An individual seller account is relatively simple to set up and doesn't require a monthly subscription fee. It can be an attractive option for individuals or small-scale sellers who want to start without committing to a monthly fee.
If you plan to sell items on Amazon as a hobby or occasionally, an individual account may be sufficient. You can list your items and sell them without needing advanced selling features or reports.
An individual account can be cost-effective if you have small inventory or expect to sell only a few items per month. Instead of paying a monthly subscription fee, you only pay a fee when an item sells.
Starting with an individual account allows you to test the sales and demand for your products without making a significant financial commitment. You can check customer interest and gather feedback before you switch to a professional account.
When Is an Individual Account Not a Right Choice?
There are specific cases when you may need a professional account on Amazon. An individual account may not be the right choice in the following situations.
Selling large volumes
A professional account will save money if you plan to sell more than 40 products monthly. If you sell many items, the fees you pay per sale add up quickly and become more expensive than the monthly subscription fee of a professional account.
Need for advanced tools
Individual accounts have limited access to advanced selling tools and reports. If you require features like Buy Box eligibility, bulk listing, inventory management, creating new listings, or detailed sales analytics, a professional account offers a broader range of tools.
Selling in restricted categories
Specific product categories on Amazon, such as automotive parts, beauty, and health, require a professional account. If your products fall into these restricted categories, you need a professional account to list and sell them.
Using Amazon advertising
Amazon offers advertising programs like Sponsored Products, which can help you promote and increase the visibility of your products. However, only professional sellers have access to these advertising programs.
Scaling your business
If you have plans to expand your business on Amazon, you will likely need the additional features provided by a professional account. It offers more comprehensive tools, access to all product categories, and the ability to apply for advertising programs.
How to Sign Up for Individual Seller Account on Amazon?
To create an individual account, you must go through a registration process on the Amazon website.
Steps to register for an individual Amazon account
- Step 1. Gather your business and personal information
You'll need details like your email address, tax identity information, credit card and bank details, government ID, and a ‘ship from’ address.
- Step 2. Choose between an Individual or Professional seller account
Visit the "Start selling with Amazon" sign-in page. To sell as an individual seller, select Pricing > Compare selling plans > Individual account in the top navigation menu.
- Step 3. Enter your email address and password.
Provide your email address and choose a password for your account.
- Step 4. Add your business location and type
Specify the country where you are located. For your business type, specify the option: “None, I am an individual.”
- Step 5. Enter your personal and business details
Provide your citizenship, date of birth, proof of identity, address, and phone number.
- Step 6. Enter your payment method
Add your bank account number and a valid credit card number for billing.
- Step 7. Submit your product details
Provide your product details and Universal Product Codes (UPCs).
- Step 8. Wait for Amazon to approve your account.
Once you've completed the steps, wait for Amazon's approval to start selling.
What Are Amazon Individual Seller Account Fees?
Amazon individual seller account fees consist of three types of charges.
The individual plan charges $0.99 per unit sold.
Amazon applies a referral fee for each item sold, depending on the product category.
Referral fees typically range from 8% to 15% for most categories. You can find the list of referral fees per category by this link.
The cost of shipping your orders depends on whether you handle fulfillment yourself or use Amazon's Fulfillment by Amazon (FBA) service.
You can find the list of fulfillment fees at this link.
Related: Amazon FBA Fees 2023
How to Find Your First Product As an Individual Seller?
To establish and grow your online arbitrage business on Amazon, you need to find inexpensive products you can resell at a higher price, making a profit.
That involves finding products popular and sought-after on Amazon and locating a supplier who offers those products at a significantly lower cost than their selling price on Amazon, allowing you to profit from your sales.
You can do this easily with Amazon seller tools. Seller Assistant App is the best choice for such a tool because it can help you with both tasks. This browser extension is the best tool for product sourcing that allows individual sellers to quickly and effectively find profitable products Below we will give you tips to find products for Amazon with this tool.
Tips to find high-profit products for Amazon with Seller Assistant App
Tip 1. Use smart tools
Seller Assistant App is a comprehensive tool that includes everything you need for product research. It helps you decide if a product is suitable for reselling. It makes research easier by showing all product details right on the Amazon product and search pages.
The app alerts about product restrictions, IP alerts, and other product issues, calculates estimated sales, and product profitability, and gives a lot of other important information. You can also look for the supplier and select the most profitable option.
Tip 2. Focus on products in demand
Look for items with low BSR (high sales) and a decreasing BSR trend (growing demand). You can find the BSR in Seller Assistant App. If the BSR is highlighted in green, and the arrow points down, the sales grow. The Top shows sales velocity. If it equals 0.5% or less, the product sells well. If the Top equals 1% or more, a product sells slowly. Sales shows how many product units are sold on Amazon monthly based on BSR and category.
Tip 3. Aim for the Buy Box
Get the Buy Box by offering a competitive price. Use the Buy Box seller’s offer to understand the current selling price and set your own price accordingly. However, keep in mind the break-even price (the lowest price you can offer not to lose money). Seller Assistant App also provides the Buy Box trend, average Buy Box price during 90 days, and minimum FBM and FBA Buy Box
Tip 4. Watch out for restrictions and flags
Use Seller Assistant to check for restrictions, IP complaints, and product sourcing flags before selling. Seller Assistant App alerts you with a specific icon if a product any issues.
Seller Assistant App alerts
- Red triangle icon for the products with intellectual property complaints;
- Red closed lock icon for restricted products;
- Red “A” icon (on the product pages) or Amazon on the orange background (on the search pages) if Amazon is a seller;
- Red box icon for oversized products;
- Red glass icon for fragile products;
- Red drop icon for meltable products;
- Red hazmat icon for the Hazmat (Dangerous goods) category;
- Red 18+ icon for adult products;
- Red GB icon for generic brand.
Tip 5. Calculate profit and margin
Seller Assistant's FBA&FBM calculator helps you estimate profit, ROI, and margin for informed pricing. It shows all Amazon fees and lets you configure logistics costs to calculate profitability. You can also calculate the minimum price for Amazon Repricer.
Can You Change Amazon Account From Individual to Business?
Amazon sellers can switch between professional and individual selling plans at any time.
However, it's important to note that the $39.99 monthly charge for the professional selling plan is non-refundable and will not be reimbursed if you switch to the individual selling plan.
What is an individual seller account on Amazon?
An individual seller account on Amazon is a type of account that allows individuals or small-scale sellers to sell products on the Amazon marketplace. It does not require a monthly subscription fee but charges a per-item fee for each product sold.
Does Amazon allow individual sellers?
Yes, Amazon allows individual sellers to register and sell products on their platform. Individual seller accounts are available for individuals or small-scale sellers who want to sell products on Amazon without a monthly subscription fee.
Do I need a business name to sell on Amazon?
No, you don't necessarily need a business name to sell on Amazon. Individual sellers can sell under their own name, while professional sellers have the option to register a business name or use their legal name.
Can I sell on Amazon as a sole proprietor?
Yes, you can sell on Amazon as a sole proprietor. Both individual and professional seller accounts allow sole proprietors to sell products on Amazon's platform using their personal information and tax identification number.
Can I sell on Amazon as an individual and not a business?
Yes, you can sell on Amazon as an individual without having a formal business entity. Amazon offers individual seller accounts that allow individuals to sell products without a registered business.
In conclusion, selling on Amazon as an individual seller is a perfect way of making money.
Amazon seller individual account has several benefits for those who are starting their journey as an Amazon seller or sell occasionally.
By following the steps described in our post and utilizing the tools available to you, you can successfully create an Amazon individual seller account to start and grow your Amazon business.
When it comes to choosing products to sell, Seller Assistant Аpp can effectively and reliably help you. This all-in-one extension shows you all product’s metrics and the profit you will get. It also allows you immediately see if a product has any sales restrictions or has previously triggered problems with account health. It combines an FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker in one tool.