Anyone who is familiar with Jeff Bezos and Amazon understands that the company started off very simply as an online bookshop.
It’s true what you just read! When Amazon originally started, books were the only thing they sold, thus the two terms were identical. Over time, however, they progressively brancThe 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 practise 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.
Quick Guide
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.
personal 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:
- Receive detailed inventory reports
- Sell prohibited items or items from prohibited categories
- Utilize Amazon’s marketing tools
- Conduct promotions
- Bulk-update listings
- Include more users in your account.
- Add new product detail pages or edit those that already exist.
- Specify shipping costs
Although this seems like a detailed list of restrictions, an individual account’s selling point is that there is no initial fee.
Experienced seller account
You will pay $39.99 per month for a professional account in addition to extra referral fees and variable closing fees for each sale. Professional Amazon sellers do not incur an additional $0.99 fee for each item they sell, in contrast to individual Amazon sellers. In-depth inventory data, some advertising options, and the ability to run promotions are just a few of the many advantages that professional seller accounts enjoy.
Observe: Whether you have a personal or business seller account, Amazon gets a cut of every sale. It is a share of the entire transaction and varies according on the type of product.
When to register as a private seller on Amazon
The entry-level seller plan is the Amazon individual seller account. If you sell fewer than 40 products/month, it is cost-effective, and the pay-as-you-go strategy makes sure you don’t incur any unforeseen expenses. When you do begin consistently selling more than 40 things, you can always make the switch to a professional selling strategy.
Many vendors start out on Amazon in this way. To test the market and examine whether there is a market for their goods, they begin as an independent seller on Amazon. When sales start to increase, sellers switch to a professional selling strategy that gives them 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 set up a seller account on Amazon
The procedure of signing up to sell on Amazon is simple. You shouldn’t need more than an-hour, and you can speed things along by having the following knowledge and paperwork on hand:
- Name legally used, company name, and address Your “legal-name” won’t be made public, however buyers will see your company name when they purchase your goods.
- Any identifying document that has been issued by your government.
Information: We advise creating a different email address just for your Amazon business. Customers and Amazon will both use this information to get in touch with you directly. Also, be prepared with a functional phone number. Your contact details will be checked by Amazon throughout the registration process.
Also Read: How To Get Sales On Tiktok Shop Store ?
If you are sending your goods from a location other than your business address, you will need to provide a “ship from” address.
Information about your bank account: Amazon will deposit your sales revenue into this account. Typically, you will receive your money every 14 days.
Tax identifiers: In the US, you can use either your Social Security number or the Federal Tax ID of your business. Your tax information must be submitted and confirmed. Remember that Amazon does not handle your tax filing. The retail behemoth is required by law to gather your tax identification information so that the appropriate authorities are informed of any taxable income you generate as a vendor. You are accountable for paying your taxes.
Remark: You are free to pause the registration process whenever you like and pick up where you left off.
When you have all of this data prepared, you may begin setting up your account. Visit sell.amazon.com and look into underselling schemes to build an Amazon individual seller account. To continue, select “Sign up for individual.” Your seller central account will be redirected to you. Click Sign up and fill out the necessary information to create a seller central account if you don’t already have one.
You will be taken to a page where you can finish the registration process once you have logged in.
You have a personal Amazon seller account, right? Let’s examine the process for transforming your seller account into a professional one.
- Log in to your seller account on Amazon.com.
- Scroll to the page’s bottom and look for “Settings” there.
- Go to “Settings” and select “Account info.”
- Click “Manage” under “Your services” after navigating there.
There is an option labelled “Upgrade” next to the option for your account type. To switch your seller account to the professional selling plan, click “Upgrade.”
The same methods can be used to transition from a professional selling strategy to an individual selling plan. The only distinction in this instance is that you will be presented with a “Downgrade” choice rather than the “Upgrade” option.
List your first item on Amazon as a private seller.
You can begin listing things on Amazon after creating your account. You are unable to establish listings for products that aren’t already available on Amazon as an independent seller. Finding your products on Amazon is the simplest way to advertise them.
Open the product page for your product after conducting a search on Amazon. The Buy Box is located on the right side of the listing. As shown in the image below, scroll-down until you locate the “Sell on Amazon” option.
After clicking the button, a website will link you to where you must enter the following data.
SKU:
You have the option of entering a code or leaving it empty. If you don’t fill out this area, Amazon will choose an SKU at random for your stock.
Price:
Decide on the product’s suggested retail price. You may easily match the lowest price on Amazon using a convenient button.
Quantity:
One unit is the initial amount. Depending on the quantity of things you have to sell, you can adjust the number.
Condition:
The majority of things only come in two varieties: “New” or “Used.”
Filling procedure:
Your preferred mode of fulfilment is entered here. You have the choice of handling order fulfilment yourself using FBM (fulfilment by merchant) or SFP (seller fulfilled Prime), or letting Amazon do it using FBA (fulfillment by Amazon).
Once you’ve put your item up for sale, all that’s left to do is wait for the orders to come in. Your chances of making a sale are decreased because Amazon sellers on the individual selling plan are not eligible to win the BuyBox, but if you price your items competitively, it won’t take long. Customers are more likely to purchase your product when prices are lower.
When choosing the price of your goods, you must take into account a variety of criteria. If you are filling orders through FBA, you must account for referral, closure, shipping, and FBA fees in the final price. Referral fees are determined by the type of goods, closure fees by the price range of the product, and shipping fees are determined by the weight of the shipment and the delivery distance.
You must also account for other expenses like pick-and-pack fees and storage fees if you’re using the FBA service (more on that later). Even though it all seems quite difficult, FBA sellers may quickly determine the profitability and total cost of their products by utilising SellerApp’s free FBA calculator.
A word about delivery techniques
There are three choices available to Amazon independent sellers for fulfilment. They have the option of handling storage, packaging, and shipping themselves (Fulfillment-by-Merchant) or contracting out to Amazon utilising FBA.
Each seller who lists a product for sale on Amazon must choose their fulfilment strategy. You have the option to switch between fulfilment methods whenever you wish, just like with the type of seller account. You need to be aware of your alternatives before you begin selling on Amazon.
Delivery via Amazon
The more preferred choice among sellers is FBA. The selling process is increasingly made simpler, but at a price. The FBA procedure is summarised 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 fulfilment facility. A storage fee is assessed to sellers, and it often varies with the size & 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 Amazon handles the majority of the logistics. An Amazon independent seller simply needs to worry with the product selection, inventory management, and marketing. This is a fantastic way to expand your business quickly, but if you’re not careful, storage costs could ruin the fun.
Note: that FBA-fulfilled goods are eligible for Amazon Prime. Sales can increase as a result.
You don’t want to be forced to pay Amazon every month for storage if you’re a new Amazon independent seller testing the waters. FBA might not be the best fulfilment option for you if you wish to keep using 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 fulfilment strategy is thus preferable for Amazon Indie sellers? The truth is that there isn’t a definite response to that query. Consider FBA if an Amazon independent seller is confident in their ability to generate continuous sales. If you’re just getting started and apprehensive about selling on Amazon, it could be preferable to fulfil orders yourself rather than pay FBA and storage fees.
Final 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.
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