How to Sell on Amazon
Many people have the same question about selling online: Can anyone sell on Amazon? There’s only one answer to that question – an emphatic YES! Amazon is not just for big brands. Anyone can sell on Amazon.
However, starting to sell on Amazon can be daunting. That is why many people who are unsure about the viability of trading on the platform begin as individual sellers. It has no upfront cost and allows sellers to test the waters before diving into the deep end of the Amazon Marketplace. The only thing you need to get started is a great product to sell.
So, let’s look at how you can create an Amazon individual seller account and how you can use it to sell on Amazon.
Amazon individual seller account: An introduction
Before we go into how you can create an Amazon individual seller account, let’s look at what it has to offer. When creating a new seller account, you’ll be prompted to pick one of two available options – create an individual seller account or create a professional seller account.
Individual seller account
An individual account is free to create, but you need to pay $0.99 for every sale you make on Amazon. There are also additional referral fees and variable closing fees that are part of every Amazon sale. Individual sellers do not have access to or cannot do the following:
Get in-depth inventory reports
Sell restricted products or products in limited categories
Use Amazon’s advertising services
Run promotions
Create listings in bulk
Add multiple users to your account
Create new product detail pages or change existing ones
Set shipping rates
While this looks like an exhaustive list of restrictions, the selling point of an individual account is that there is no upfront cost.
Professional seller account
A professional account will set you back $39.99 every month, including some additional referral fees and variable closing fees for every sale. However, unlike the individual Amazon seller account, ‘professional’ sellers are not charged an extra $0.99 per item sold. Professional seller accounts also have access to some advertising features, receive in-depth inventory reports, and can run promotions, among a host of other benefits.
Note: Whether you have an individual seller account or a professional one, Amazon collects a referral fee on each sale. It is a percentage of the total transaction, and it varies by product category.
When to sign-up as an Amazon individual seller
The Amazon individual seller account is the basic seller plan. It is cost-effective if you’re selling less than 40 products a month, and the pay-as-you-go model ensures that you’re not spending any extra money. But, of course, once you start selling more than 40 products regularly, you can always switch to a professional selling plan.
This is what many sellers do when starting on Amazon. They begin as an individual seller on Amazon to test the waters and gauge the demand for their product. Once sales pick up, sellers switch to a professional selling plan that gives them more tools, information, and the opportunity to win the Buy Box.
Note: Sellers can switch between professional and individual selling plans whenever they want to. The monthly $39.99 fee for a professional selling plan is non-refundable and will not be returned if you switch to an individual selling plan.
How to create an Amazon individual seller account
Registering to sell on Amazon is a straightforward process. It should not take you more than an hour, and you can streamline the process by keeping the following information and documents handy:
Your legal name, business name, and address: Your ‘legal name’ will not be made public, while your business name is the one customers will see when buying your product.
Government-issued ID: Any proof of identity issued by your government.
Contact information: We recommend setting up a separate email address for your Amazon business. This contact information will be used by Amazon and customers to get in touch with you directly. Have a working phone number ready as well. Amazon will verify your contact information during the registration process.
A ‘ship from’ address: If you are shipping your products from an address that is not your business address.
Bank Account Information: This account is where Amazon will send you your sales proceeds. You will usually get your money every 14 days.
Tax identity information: In the United States, you can provide your Social Security number or your company’s Federal Tax ID number. You have to submit your tax information and have it verified. Keep in mind that Amazon does not file your taxes. However, the retail giant is required by law to collect your tax ID information so that relevant authorities can be notified of taxable earnings you make as a seller. The responsibility of paying your taxes is yours.