Amazon Best Sellers Best Data Storage

Individual vs. Professional Amazon Seller Account (How to Choose)

A common question I get asked from new sellers is about what type of Amazon seller account they should set up. Specifically, they ask if they should set up an individual seller account or a professional seller account.

Each type of selling account has its respective benefits, and it really depends on your specific needs. To figure out what type of Amazon seller account you need, let’s start by looking at how Amazon describes each account type:

The Amazon Individual Seller Account

Here’s how Amazon describes the individual seller account option:

“The Individual selling plan is for sellers who don’t need access to inventory tools and reports for volume selling. Under the Individual selling plan, you don’t pay a monthly subscription fee. You pay a per-item fee in addition to applicable fees.”

The Amazon Professional Seller Account

Here’s how Amazon describes the professional seller account option:

“In the Professional selling plan, you pay a nonrefundable monthly subscription fee regardless of whether you list or sell anything. You don’t pay a per-item fee when an item sells. All other fees are charged as applicable. The Professional selling plan gives you access to inventory tools to upload batch files and manage your orders through feeds and reports. These tools are beneficial to most medium - to large-size businesses.”

Key Differences between the Amazon Individual Seller Account and the Amazon Professional Seller Account

Below is a chart that shows the key differences between the 2 account types:

The above chart is directly from Amazon and does a nice job of comparing the two account types. That said, there’s a lot here, and it’s important to drill down to the details that are most important:

The Amazon professional seller fee rings in at $39.99 per month. However, that $39.99 monthly fee removes the individual seller fee of $0.99 per item. So, if you are selling more than 40 items it almost always makes sense to get the professional seller account. Only Amazon professional sellers are eligible to have their items featured in the “buy box.” The buy box is the featured seller on a listing within Amazon. For example, on this listing “Windy Castle Gift Shop” is the seller in the buy box:

This means that if the seller clicks the “add to cart” or “buy now” buttons (red arrow), they will be purchasing from Windy Castle Gift Shop, as they are the seller in the buy box. If you are selling this item and are not in the buy box, you will show up as one of the sellers featured below the buy box, or in the list where it says used & new (37) by the blue arrow. As you can see if you aren’t in the buy box it’s a bit more difficult for customers to buy from you.

Only professional seller accounts have the ability to have sales tax collected on items they sell. Sales tax for FBA sellers is a bit of a tricky issue, but if you want to collect sales tax you need the professional seller account. Amazon requires an additional level of approval to sell in certain categories on the platform. Below are examples of categories that require you to have a professional seller account to seek approval:

Automotive & Powersports Jewelry Watches Sports Collectibles Video, DVD, & Blu-ray Collectible Coins Entertainment Collectibles Fine Art

The final major difference that I will point out is the ability to use product data feeds, and granting access to other users. These features are only available on the professional selling plan. If you want to use 3rd party apps and tools, then you will need a professional seller account. In my case, the tools that I use to help run my business require me to be signed up through a professional seller account.

Which Amazon seller account type is best for you?

The individual Amazon seller account is best for someone who:

Wants to get their feet wet selling on Amazon and keep costs as low as possible at the beginning Is selling less than 40 items per month Doesn’t have the need for the additional features of the professional seller account

The professional seller account is best for:

Any sellers selling over 40 items per month Any seller wanting to collect sales tax on their items Any sellers who want to use 3rd party apps and tools Sellers who want to be displayed in the buy box Sellers who want to sell in certain restricted categories

Can I start off as an individual seller account and then switch to a professional seller account later?

Yes, you can switch at any time you would like.

This is the route I took when I first started selling on Amazon. When I was doing it part-time as a hobby I used an individual seller account. Then, once I was selling over 40 items per month, I upgraded to the professional seller account.

Here’s how to upgrade your Amazon seller account:

Login to your Amazon Seller Account Scroll to the bottom of the page and click Account Info under Settings In the Your Services section click Manage Click Upgrade next to the account type

Note: If you want to switch from a professional seller account to an individual seller account, steps 1 to 3 are the same, and in step 4 click downgrade.

Conclusion:

This post walks through the main decision factors that I would look at when determining which account type is right for you. If you are in doubt as to which option is right for you, and you are selling less than 40 items per month, I’d start off with the individual seller account. Then, once you are selling 40 items per month or need additional features, upgrade to the professional seller account.

Want to learn more about getting started selling on Amazon? Here’s a general overview of my recommendations for getting started selling on Amazon.

You can also take my free email course where I share some of the tips I’ve learned from operating my own multi-million dollar business to help you get your first sale on Amazon.

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Frequently Asked Questions

Amazon has built a base of millions of satisfied customers by being responsive to their concerns and acting quickly to resolve problems. We extend this valuable customer trust to sellers through the A-to-z Guarantee program.

The A-to-z Guarantee Program is for situations where a customer never received a product or received a product that is materially different from what was ordered or expected. We ask customers to first contact the seller when they have a problem. If the seller fails to resolve the problem, the customer can file an A-to-z claim. When Amazon receives the claim, we send the seller an automated email detailing the claim and requesting basic information from the seller about the order and the fulfillment process. Amazon will then determine how the claim will be settled, which may include reimbursement of the order to the customer, at the seller's expense.

You can register today for the selling account of your choice, without the need to contact a sales person by clicking on the Sell as a Professional or Sell as Individual buttons on this page.

Before you begin the self-service registration process, be sure to have the following information available.

• Your business name, address, and contact information

• An internationally-chargeable credit card with valid billing address

• A phone number where you can be reached during this registration process

• Your tax identity information

If you want to close your account permanently, Seller Support can assist you. Keep in mind that you can use our Listings Status feature to suspend your listings, or you can remove your listings entirely but hold on to your account for future use.

Before you close your account permanently, please cancel and remove your listings and resolve all transactions. Find out more about how to close your account ›

We have videos, webinars, web pages, and more to help you find what you need.

When you sign up as a Professional Seller, you will have access to sell on our US, Canadian, and Mexican marketplaces through a North America Unified Account. This will enable you more easily to share product listing information and manage your inventory consistently across all three marketplaces. For all per-item transaction fees, sellers will pay the fees applicable to the marketplace in which the item was sold. If you're a Professional Seller, you will only be charged one monthly subscription fee for selling in North America.

If you already sell on Amazon in the US, Canada, or Mexico, you can use your existing bank account to receive disbursements in your local currency with the Amazon Currency Converter for Sellers (ACCS). If you are a new seller registering to sell in the US, Canada, or Mexico, you can be paid directly in your local bank account in the local currency, provided you have a bank account in a country supported by Amazon.

Amazon offers two selling plans. The Professional selling plan is available for a $39.99 monthly subscription fee plus per-item selling fees, which vary by category.

If you plan to sell fewer than 40 items a month, the Individual plan may be best for you. There is no monthly subscription fee. Instead, Individuals pay $0.99 per item sold plus other selling fees, which vary by category.

Learn more about Selling on Amazon pricing ›

Additional fees apply when you use Fulfillment by Amazon to pick, pack, ship, and provide customer service for your products. Learn more about FBA pricing ›

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Move straight from the lecture to the lab with our proprietary desktop application. You can be up and running 2-3 hours after downloading this application (uploading your sales data takes some time).

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Why would you work so hard to plan, build, and run a profitable business, only to post all your ASIN's and sales data in someone else's database?

Right.

Revolutionary New System Automates Your Amazon Inventory Management,

Boosting Profits & Slashing Storage Fees!

Maximize Your Profits, Minimize Storage Fees…

You’re savvy. You’ve worked hard to set up and scale your Amazon business. You’ve identified products with low competition and high profit potential. Sourcing, quality control, importing has all been done with painstaking hours of work. You’ve carried out extensive keyword research, put in the hard work to get your product listed and moving up in the rankings…

So, it’s a kick in the teeth when Amazon swoops in and hits you with hefty storage costs that can crush your profits.

You negotiated with the factory rep, and haggled over pennies on your unit cost, only to hand over dimes and quarters in Amazon Storage Fees every month – per unit!

What was once a simple way to make tons of money on Amazon, has turned into a cut-throat environment filled with Chinese competitors and ever-increasing Amazon storage fees, seller fees, fulfilment fees and the rest. It feels like the more you sell… the more Amazon gets.

But there is a way to be more profitable as an Amazon seller. And when I say ‘more profitable’, I mean up to thousands of dollars a month. There is a little-known, easy-to-implement strategy that can help you to maximize your profits, minimize storage fees, and keep more of your hard-earned income going into your own pocket.

Traditionally, Black Friday and the rush around the holiday season is a time for Amazon sellers to crush it in terms of sales. And that’s still the case. But at the very time that you’re trying to get as much of your product as possible into the Amazon warehouses to meet the spike in demand… Amazon hikes the rates! The monthly storage fees for ‘standard-size’ inventory in an Amazon warehouse more than triple during the peak-sales months of October through December.

In fact, Amazon AGAIN raised their monthly storage fees by 5 cents per cubic feet of volume.

And, If the increase in Monthly Storage Fees wasn’t enough, Amazon recently announced that it will be changing the Twice a Year Lont-Term Storage Fees to Monthly Long Term Storage Fees.

So, from September 2018, fees that were charged twice a year will be charged every single month – at almost double what they’ve been up until now!

Plus, they’re bringing in a minimum charge on each and every unit that’s in long-term storage from August 2018. It’s a whole new fee, called Minimum Long-Term Storage Fees.

And to add insult to injury, Amazon is threatening to limit access to storage for sellers that fall below their inventory standards. So, if you’re not performing well enough for Amazon, they’ll hit you with a storage limit!

Stop Bleeding Profits in Storage Fees!

Stop letting the Ever-Increasing Amazon Storage Fees drain your profitability. Discover strategies that can radically reduce the storage fees you pay to Amazon, keeping more money in your own pocket – up to thousands of extra dollars every month.

Savvy business owners like you know that to scale a business successfully, the prudent thing you can do is re-invest your profits. It’s simply best practice.

Re-investing your profits allows you to:

• Buy more goods

• Try out new products

• Explore more market opportunities

The money you’re forking out right now on Amazon storage fees could instead be put towards growing your business. Imagine the growth potential from thousands of extra dollars every month…

And imagine that growth without incrementally greater fees as a result. Well, the profit potential just keeps on growing. This is what you got into this business for initially, right? To buy low, sell high, and make a profit. Not to buy low, pay excessive storage fees, sell high, and earn less!

It’s time to stop bleeding profits in Storage Fees. It’s time to…

Meet the Inventory Boss

By now you’re probably wondering ‘who is this guy who’s telling me I can save thousands of dollars a month?’. Well, I’m a fellow business owner just like you. I started selling on Amazon four years ago – and did pretty well too! But when I looked deeper into how much of my hard-earned profits were being eaten by Amazon fees, well, I knew that I had to do something about it.

So I got to work figuring out strategies to shave down the relentless fees and maximize profits. It took a lot of trial and error. I dusted off my Business Degree (in Finance) and studied everything I could get my hands on, for weeks on end, carrying out research into every scrap of information I could find on inventory management - so that I could 100% understand everything about shipping… storage… the whole ball of wax.

During those months of, I put together a system to streamline my Amazon business. I knew that once I put it into action, it would start boosting my profits, but I had no idea just how powerful the system would be. Once I set it up, it didn’t just shave off fees here and there… it slashed the fees that I was being charged, because I had figured out Precisely How Much to Order (a very big deal), and Precisely How Much to Ship to Amazon Monthly (another very big deal – slashing my monthly storage fees by 90%).

And the best part?

The whole process was automated.

Not only was I making more profits than ever before, but I had a ton of free time on my hands too!

When friends heard about the success I was having, they wanted in on the secret. Word spread, and soon I found myself getting speaker invitations to Mastermind events around the US, and later, around the world. People were asking me to share the details of my system in closed-door meetings with elite third-party.

Now, I’m going to pull back the curtain and reveal those same money-making secrets to you…

Learn how to minimize storage fees, automate the entire process, and maximize your profits by balancing your storage.

Why am I doing this?

I’m a fellow Amazon seller, just like you. And, the Amazon business seems to be less and less profitable than it was when I started. There are far more competitors willing to slash prices to the bone for ranking and market share. And there are more fees and higher fees than when I started this business. Its just getting harder to make the money that we used to make in this marketplace.

The amazing Amazon profit-boosting strategies in my system – they’re too good not to share. Sharing these secrets doesn’t hurt my Amazon business. In fact, even if every Amazon seller knew of these and put them into practice, everyone wins. And believe it or not, Amazon wants you to sharpen your pencil and do a better job at inventory management as well. That’s why you see that new Inventory Planning widget in Seller Central (bottom right of the page) with the new Inventory Performance Index.

Your goal, is to incrementally improve your Inventory Score over time (as fast as you can).

Amazon wants you to become a better inventory manager. The problem is… Most people just don’t know how. That is where The Boss comes in.

So, what does the Inventory Boss system do for you?

I’ve already told you about the multitude of fees that Amazon uses to cream off our profits. My system works strategically to bring the hammer down on those fees. It works to beat Amazon at their own game, meaning less fees paid to them, and more money in your own pocket that you can spend on you, your family, your business – maybe even take a vacation!

But I’m not just talking about more money…

Save Time

What would you do with your business if you had extra time, week in, week out?

Imagine if you didn’t have to constantly gather data, manage inventory on a virtual stack of spreadsheets, download reports, try to spot trends, forecast sales, manage orders and shipping…

What would you do with that time?

You could use it to explore new markets, new products, new ideas. Or you could use it to enjoy the fruits of your labor – catch up on time with your loved ones that may have been cut down while you were building your business, take in a round of golf, catch up with friends or take that fishing trip that you’ve put off.

That’s what is on the horizon for you when you take smart advantage of the opportunity I’m about to present to you. Because once you set up this system for your business (and I’ll walk you through that part), it’s automated. It does all the hard work for you, freeing you up to do whatever you like!

Automate Your Amazon Business and Boost Profits

This intuitive, easy-to-use solution will start by analyzing your sales data for every product you have on Amazon. It analyses your inventory, sales, costs, shipping, everything!

And it gives you helpful information that you can use to save time, save money, shave storage fees and manage your inventory… Like a BOSS!

As I said, it does all the hard work for you. I call it… The Inventory Boss.

Identify Sales Trends

Inventory Boss helps you determine your overall sales trend, so that you can easily see what direction your business is going, and plan future orders to meet the expected demand. No more, no less – so no excess spent on shipping and no excess inventory that will sit around in storage racking up fees.

Scale for Seasonality

Amazon charges higher fees from October through December. They’re no dummies. They know that those months are peak buying season in the runup to Christmas – so they hike up their fees just as your sales are starting to spike. Nasty… Beat them at their own game.

Inventory Boss looks at your annual sales and breaks them down month by month. You can easily see what months have low sales and what months have high sales for your specific products. So, you can easily know how much to purchase for each period, making sure that you’re not overstocked, or understocked for any date range. When the busy buying season comes around, you have exactly the level of inventory you need to meet orders, without being at the mercy of Amazon’s storage rules, limits and fees.

Forecast Sales

This is where the magic happens!

As a savvy business owner, you are constantly trying to forecast sales. So many people struggle with this. If you are over-optimistic and order too much, you pay crippling storage fees, not to mention the opportunity costs associated with spending more money than you need to. If you have 50 different products to order every 3-6 months, those opportunity costs are very high… and expensive. If you’re conservative and don’t order enough product to meet demand, you run out of inventory. In no time, competitors jump into your place. Not only that, your listing disappears from Amazon, and any best-seller banner you’ve earned disappears along with it.

Inventory Boss uses proven mathematical formulae to accurately determine the sales trends of each of your products, taking seasonality and future events into account. It really is the ‘magic bullet’ in this whole system.

Consolidate your Shipping

This revolutionary system looks at every order you create. It then looks through the ports your factories ship to. It assesses the information and applies its powerful formula to combine all of the order and shipping details together in the best possible way. The result – you can easily and seamlessly consolidate your orders and keep the cost of shipping to an absolute minimum. Everything is streamlined for you, increasing efficiency at every step of the process. The system will even let you visually see the size and cost of each container available, so that you can accurately predict with 100% certainty the total cost of an entire order, including shipping.

Save on Storage

This is where even bigger savings come into play. We all know that regular warehouse storage is a small fraction of the cost compared to what Amazon charges to store inventory. Inventory Boss allows you to balance your inventory costs between non-amazon storage and Amazon warehouses. At any point, you can see at a glance how much inventory you have with Amazon, and how much non-Amazon inventory you’re holding. But that’s not all this system does… It will feed you the cost details of storage at each location, as well as forecasting demand. So, you can maintain the least amount of storage possible at Amazon, without running out of inventory. This is as revolutionary as JIT, or ‘just-in-time’ production was to manufacturing back in the ‘70s. This strategy helps you to increase efficiency and decrease costs by feeding your products to Amazon to meet sales, so that your product is sold pretty much as soon as it hits the Amazon warehouse – literally slashing your Amazon storage fees!

Maintain Your Privacy

Now, before you worry about having to upload your ASINs or private details of your Amazon business online – don’t. I know how valuable your product and sales data is. You don’t want your years of experience and hard-earned strategies falling into the hands of competitors. I don’t expect you to share your data with anyone – not even me! That’s why I created this system to be private. Your information stays in your hands, on your device – not on an unreliable web server where it is open to hackers and thieves. With this system, you control your data.

Let me now explain how Inventory Boss works…

The first part is the Lecture. It is an online training course with me. I take you through the entire system step-by-step. I explain the math behind the algorithms and how every piece of the system works – and how it will apply itself and work for your business. Don’t worry if you’re not a math whiz. You don’t need to be. I explain each concept in simple and easy-to-understand language.

As I created each video in our Lecture series, I imagined myself sitting across the table from you, chatting over coffee, and explaining all the math and different formulas. It really is very simple. Nobody gets left behind. floundering in the math. nobody!!

The videos are short and easy to digest. Each one focuses on a single element and you can watch and re-watch at any time that suits you.

The second part is the Lab. Once you’ve completed the Lecture Series, and understand how Inventory Boss works, you then watch the Lab videos. These videos teach you how to apply your shiny new Inventory Management Algorith using our software. You download the program to your own desktop and put it to work for you!

You’ll be boosting your profits in super-quick time.