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Choosing a selling plan on the marketplace is the first step to launching an Amazon business. There are two selling subscriptions available: the individual selling plan and the Amazon professional seller account. Usually, merchants get stuck trying to choose between these two options. Does it relate to you? Are you also trying to opt for the best solution? Keep reading this article to determine which selling plan is best for you.

Pay as You Go vs. Subscription

Individual merchants need to pay a $0.99 commission on every item they sell, while professional sellers are charged $39.99 per month regardless of the number of goods they trade. Basic mathematics would tell most merchants that as long as they are selling 40 products or more monthly, $39.99 is the best option. Unfortunately, many new users lack the experience to estimate exactly how many items they can expect to trade each month through the marketplace.

Changing an individual plan to a professional one is very straightforward in your account settings. Alterations take effect instantly, with the seller charged $39.99 for the month and selling commissions waived from that point forward. Since Amazon.com has made it simple to switch, a new company might feel tempted to pick the pay-as-you-go solution to see how sales go in the first couple of months. However, there are some features the individual subscription is missing that may benefit a new brand.

Features

Professional subscriptions come with uploading multiple items at once using a spreadsheet. This option can be a real-time saver for new merchants, helping them load all of their goods onto the Amazon.com platform in minutes. On the other hand, an individual selling plan forces a user to add each product individually, wait for those goods to be matched against the platform’s existing inventory, and make up a listing for that item.

The platform’s inventory option might also help new brands as they commence the fulfillment procedure. Whether filling orders on their own or utilizing Fulfillment by Amazon, companies should know how many goods they have in stock. While both selling plans give this insight, professional solutions include inventory-reporting options, making inventory reconciliation simpler. In addition, professional subscriptions also provide general reporting, which can be vital to a new merchant interested in learning how clients interact with their goods.

Restrictions

Individual subscriptions will be limited to specific selling niches. Only professional merchants can sell in the below categories:

  • Automotive tools, equipment, accessories, and parts;
  • Beauty goods
  • Clothing and accessories;
  • Coins (collectible);
  • Collectibles (historical, entertainment, advertising, sports, and books);
  • Fine art;
  • Grocery and gourmet food;
  • Personal care and health;
  • Jewelry;
  • Travel accessories and luggage;
  • Handbags, sunglasses, and shoes;
  • Watches;
  • Video, DVD, and Blu-Ray;
  • Wine.

Besides, other restrictions apply to all merchants. See a comprehensive list on the website of the marketplace.

Promotions

The best path to get them as many sales as possible for goods is to win the platform’s Buy Box. When clients look up an item on Amazon, only one merchant qualifies to have the “Add to Cart” feature on the page, also known as the Buy Box. Other users go under the “25 new” part of the website. To even be eligible for the Buy Box, a company should operate with a professional plan. After that, meeting a list of conditions can boost a company’s chances, including accurately describing the item and always shipping on time.

Apart from advanced options, individual and professional selling plans on Amazon bring the same perks to merchants. Companies will still need to set up the fulfillment processes and sales tax collection to ensure they can effectively process incoming transactions. But, whether a business decides to pay a small commission on each incoming order or a monthly fee, selling through the platform can be profitable and smooth.

In addition, for any merchants, using third-party software tools is super important. It’s the competitive edge that you need to triumph over your competitors. For instance, feedback management software can help generate reviews and communicate with customers easier. Because of this, you will have more time to deal with other important aspects of your business. But, more importantly, it provides you with access to the essential information required to make quality, data-driven decisions.