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Step-by-Step Guide for Individual Sellers on Amazon

The same query regarding internet sales is frequently heard: Who can sell on Amazon? That question can only have one response: a resoundin...

Individual Sellers on Amazon

The same query regarding internet sales is frequently heard: Who can sell on Amazon? That question can only have one response: a resounding YES! Not just for major brands, Amazon exists. Amazon is open to all sellers.


However, it can be intimidating to begin selling on Amazon. Because of this, many people who are unclear whether selling on the site will be profitable start off as individual sellers. It has no up-front costs and enables vendors to practice before jumping into the Amazon Marketplace's deep end. You merely need a fantastic product to sell in order to get started.


Let's examine how to set up an Amazon individual seller account and how to use it to make sales on the online retailer.


Introduction to Amazon individual seller accounts

Let's look at what an Amazon individual seller account offers before we explain how to build one. You will be given the choice to create an individual seller account or a professional seller account when setting up a new seller account.

Individual seller's account

The creation of an individual account is free, however each transaction you make on Amazon requires you to pay a fee of $0.99. Every Amazon sale also includes additional referral fees and variable closing fees. Individual vendors cannot or do not have access to the following:


·       Get detailed inventory reports.

·       Selling regulated goods or goods from regulated categories

·       Make use of Amazon's advertising services

·       Run advertisements

·       Bulk-upload listings

·       Increase the number of users on your account

·       New product detail pages can be made, or old ones can be modified.

·       Fix the cost of shipping


The selling point of an individual account is the lack of an initial fee, despite the fact that this seems like an extensive list of restrictions.

There are a few different business structures that you as an individual vendor can choose from. You might establish a partnership or corporation, while being a sole proprietor is the most straightforward and popular option. For your internet business, you can also investigate the advantages of a multi-member LLC vs a single-member LLC.


Professional seller account

In addition to additional referral fees and variable closing fees for each sale, a professional account will cost you $39.99 each month. 'Professional' sellers on Amazon are not subject to the $0.99 per item sold premium that applies to individual Amazon seller accounts. Among a variety of other advantages, professional seller accounts also have access to some advertising services, get detailed inventory data, and can run promotions.  


Amazon charges a referral fee on each transaction, regardless of whether you have a personal or business seller account. It varies by product type and represents a percentage of the entire transaction.


The Best time to register as an Amazon independent seller

The most basic selling option is an Amazon individual seller account. If you sell fewer than 40 things per month, it is economical, and the pay-as-you-go payment method makes sure that you don't incur any unforeseen costs. You can always upgrade to a professional selling plan once you begin consistently selling more than 40 things.


Many new merchants start out on Amazon by doing this. To test the waters and determine the level of interest in their offering, they first register as an individual seller on Amazon. When sales start to increase, sellers transition to a professional selling strategy that provides them with more resources, knowledge, and chances to land in the Buy Box.


Note: Sellers are free to alternate between professional and individualized selling strategies at any time. You will not receive your $39.99 monthly professional selling plan charge back if you convert to an individual selling plan.

How to register as an Amazon individual seller

It is simple to sign up to sell goods on Amazon. Keep the following details and documents close at hand to speed up the procedure, which shouldn't take more than an hour:


·       Your full legal name, company name, and address are: While buyers will see your business name while purchasing your product, your "legal name" won't be made public.

·       Any identity document that was issued by your government is a government-issued ID.

·       Information on contacting us: We advise creating a unique email address for your Amazon business. Both Amazon and consumers will use this information to get in touch with you directly. Additionally, have a working phone number on hand. Your contact details will be checked by Amazon.

·       A"ship from" address: In the event that you are shipping your goods from a location other than your business address.

·       Bank Account Information: Amazon will deposit your sales revenue into this account. Every 14 days, you should receive your money.

·       Information on tax identity: Your Social Security number or the Federal Tax ID number of your business are acceptable forms of identification in the US. Your tax information has to be verified and submitted. Remember that Amazon does not complete your tax returns. The law requires the retail behemoth to compile your tax ID information so that the appropriate authorities are informed of the taxable earnings you generate as a vendor. You are in charge of making your tax payments.


The registration procedure can be stopped at any time, and you can pick up where you left off later.


You can start creating your account after you have all of this information ready to go. Navigate to and select the "underselling plans" option to create an Amazon individual seller account. To continue, select "Sign up for individual." You'll be brought back to your seller central account. To sign up for a seller central account if you don't already have one, click Sign up and fill out the necessary information. 


The page where you may finish the registration procedure will be redirected to you once you have logged in.


You've set up an Amazon Individual Seller account, right? Let's take a closer look at how to convert your seller account to a professional one.


1.   Enter your Amazon Seller Central login information.

2.   Scroll to the page's bottom and look for "Settings" there.

3.   Click on "Account info" under "Settings."

4.   Click 'Manage' after finding the 'Your services' area.

5.   You'll see a 'Upgrade' option listed next to your account type. To switch your seller account to the professional selling plan, click "Upgrade."


You can use the same procedures to change from a professional selling plan to an individual selling plan. The 'Downgrade' option will be presented to you in this instance, with the 'Upgrade' option being removed.


As an Amazon independent seller, list your first product.

You can begin listing things on Amazon as soon as you've created an account. You cannot add listings for goods that aren't currently on Amazon as an individual seller. Therefore, finding them on Amazon is the simplest approach to market your products.


Open the product page on Amazon after conducting a search for your item. You may find the Buy Box on the right side of the listing. As shown in the image below, scroll down until you locate the 'Sell on Amazon' option.


Following your click on the button, you will be taken to a screen where you must enter the following data.


·       SKU: You can leave it blank or type in your own code. Amazon will choose an SKU at random for your inventory if you don't fill out this form.

·       Set the price at which your goods will be sold. A convenient option on Amazon allows you to match the lowest price.

·       Quantity: There is one unit by default. Depending on how many items you have to sell, you can alter the number.

·       Condition: There are typically only two options available for products: "Used" or "New." 

·       Method of fulfillment: Choose the option that best suits your needs here. Using FBM (fulfillment by merchant) or SFP (seller fulfilled Prime), you can choose to complete the order yourself, or you can use FBA (fulfillment by Amazon) to delegate fulfillment to Amazon.

Waiting for the sales to come in is all that's required after you've put your stuff up for sale. Your chances of making a sale are reduced because individual selling plan Amazon sellers are not eligible to win the Buy Box, but if you price competitively, it won't take long. More people are likely to purchase your stuff if the prices are lower.


When determining the price of your goods, you must take many aspects into account. If you are completing purchases via FBA, you must take referral, closure, shipping, and FBA fees into account when calculating the total cost. Referral fees are based on the product category; closure fees, on the other hand, are based on the price range of the goods; and finally, the shipping charge is based on the weight and distance of the item.

Additional expenses like pick-and-pack fees and storage fees must be taken into account if you're using the FBA service (more on that in a moment).


An observation on delivery techniques

There are three fulfillment choices available to Amazon independent sellers. They have two options: either they decide to handle storage, packaging, and shipping themselves (Fulfillment-by-Merchant), or they decide to use FBA to contract these tasks out to Amazon.  


Every Amazon seller that lists a product for sale must choose their fulfillment strategy. You can choose between fulfillment methods at any time, just like you do with the type of seller account. You must comprehend your possibilities prior to beginning to offer on Amazon.


Fulfillment by Amazon

Among sellers, Fulfillment by Amazon FBA is the most preferred choice. The selling process is increasingly made simpler, but at a price. The FBA procedure is summarized as follows:


·       Products are purchased by sellers, who then transport them to an Amazon warehouse.


·       Until an order is placed, the goods are kept at Amazon's fulfillment facility. A storage fee is assessed to sellers, and it often varies with the size and volume of the commodity.

·       Amazon completes the transaction and updates your inventory after an order is placed.

·       Amazon packages and sends the package.

·       Customer assistance is handled by Amazon, and the order is tracked. The retail behemoth also manages refunds and returns.

·       Every 14 days, your account will automatically be credited with your winnings.


The description makes it clear that most of the logistics are handled by Amazon. Only the product selection, inventory management, and marketing are the concerns of an Amazon individual seller. This is a terrific method to quickly grow your business, but if you're not careful, storage fees could ruin the fun.


Amazon Prime is valid for purchases made through FBA. This may greatly increase sales.

You don't want to be forced to pay Amazon each month for storage if you're an Amazon individual seller who is just getting started. FBA might not be your best option for fulfillment if you want to go with a pay-as-you-go strategy.


Filling by the Merchant

Let's examine the alternative, which is to pack and send the item yourself as an Amazon individual seller. In this scenario, you will be responsible for managing, storing, and sending your inventory when an order comes in. If individual sellers are processing orders through FBM, they will also be in charge of customer care and product returns. It takes a lot of work, and shipping fees are frequently more expensive than with FBA. There is one consolation: there are no storage expenses.


Which fulfillment technique is therefore preferable for Amazon Individual sellers? The truth is that there isn't a clear solution to that question. It makes sense to think about FBA if an Amazon individual seller is confident in their ability to generate consistent sales. It could be preferable to forego FBA and storage fees and handle order fulfillment yourself if you're just getting started and apprehensive about selling on Amazon.


Last Thoughts

Your options are limited when using an Amazon individual seller account for listing optimization and advertising. Finding the ideal product is the first step in starting a successful Amazon business, though. As an independent seller on Amazon, regardless of whether you have a basic or professional account, you must establish your niche and market highly sought-after goods.

Read More:

Purchases from Alibaba and Amazon FBA Sales in 2023

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