How to Sell on Amazon as an Individual Seller: Complete Guide

When it comes to selling on Amazon as an individual, diving into the world of online retail can be both exciting and intimidating. Whether you’re a seasoned entrepreneur or just starting out, understanding the ins and outs of setting up an Amazon Individual Seller Account is essential. From navigating through the registration process to comparing different seller accounts, there are a variety of factors to consider.

In this blog post, we will take you on a comprehensive journey through everything you need to know about selling on Amazon as an individual.

Here is a quick peek into the article:

1. What is Amazon Individual Seller Account
2. Why Choose an Individual Seller Account? （pros & cons）
3. How to Sign Up for an Individual Seller Account on Amazon
4. What are Amazon Individual Seller Fees?
5. Amazon Individual Seller Account vs. Professional Seller Account?
6. How to Find your first product to sell?
7. Which fulfillment methods is the best option for you?

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What is Amazon Individual Seller Account?

An Amazon Individual Seller Account is perfect for those looking to sell a limited number of items on Amazon. With this account, you can list products on Amazon and pay per item sold, rather than a monthly subscription fee as with a Professional Seller Account.

This type of account is ideal for casual sellers or those looking to test the waters before committing to a Professional Seller Account. You have access to basic selling tools and can sell up to 40 items per month.

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Why Choose an Individual Seller Account?

Pros of an Individual Seller Account:

• Ease of Entry: Setting up an Individual Seller Account on Amazon is relatively simple and requires minimal information to get started.
• Low Costs: Individual sellers pay lower monthly fees compared to Professional sellers, making it an attractive option for those starting out.
• Flexible Listing Fees: With an Individual Account, you only pay a fee per item sold, which can be beneficial if you have a small inventory or are testing the waters.
• No Subscription Requirement: Unlike Professional Accounts, Individual Accounts do not require a monthly subscription fee, making it cost-effective for occasional sellers.

Cons of an Individual Seller Account:

• Limited Features: Individual Accounts have restrictions on the number of products you can sell and lack advanced selling tools available to Professional sellers.
• Higher Fees per Item: While there is no monthly subscription fee, the cost per item sold is higher for Individual sellers compared to Professional sellers.
• Less Buy Box Visibility: Individual sellers may have less visibility in the Buy Box rotation, which could impact sales compared to Professional sellers.

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How to Sign Up for an Individual Seller Account on Amazon?

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Steps to Register

To begin the process of setting up an Amazon Individual Seller Account, follow these steps:

1. Go to Amazon's Seller Central website.
2. Click on the "Start Selling" button.
3. Sign in with your Amazon account credentials or create a new account.
4. Fill in the required information, including your business name, address, contact information, and bank account details.
5. Agree to Amazon's terms and conditions.
6. Verify your identity through the provided methods.
7. Set up your payment method for seller fees and sales proceeds.

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Required Information

When signing up for an Individual Seller Account, make sure to have the following information ready:

• Business name and address
• Contact information
• Bank account details for receiving payments
• Personal identification for verification purposes

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Account Approval Process

After completing the registration process, Amazon will review your information and may take up to 24 hours to approve your account. Once approved, you can start listing products and selling on the platform.

For detailed guidance on signing up for an Individual Seller Account on Amazon, you can refer to Amazon's official help page on registering as a seller.

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What are Amazon Individual Seller Fees?

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Relevant Fees of Selling on Amazon

• Referral Fee: This fee is a percentage of the total price (including shipping) that you receive from the buyer, typically ranging from 6% to 20%, depending on the category.

• Closing Fee: For media categories, Amazon charges a per-item fee whenever a product is sold.

• Shipping Fee: If you choose to fulfill orders yourself rather than using Fulfillment by Amazon (FBA), you'll need to cover the shipping costs.

• Fulfillment Fee: If you opt for FBA, Amazon charges this fee per unit for picking, packing, and shipping your products.

• Subscription Fee: For Individual Sellers, there's no monthly subscription fee, but there's a $0.99 fee per item sold.

• Optional Fees: You may incur additional charges for services like advertising through Amazon PPC or premium selling features.

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Example to Illustrate Amazon Selling Fees

Let's say you're selling a product on Amazon for $50, and the Referral Fee in your category is 15%. When a customer makes a purchase, you would pay $7.50 as a referral fee to Amazon. In addition, if you sell five items in a month as an Individual Seller, you would pay a total of $4.95 in per-item fees ($0.99 per item).

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Amazon Individual Seller Account vs. Professional Seller Account

When considering selling on Amazon, one of the primary decisions you'll need to make is whether to sign up for an Individual Seller Account or a Professional Seller Account. These two options cater to different seller needs, and understanding the differences between them is crucial.

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Amazon Individual Seller Account

An Individual Seller Account on Amazon is ideal for those who are just starting out or selling fewer than 40 items each month. This account type is more cost-effective, with no monthly subscription fee. However, individual sellers are charged a set fee per item sold, making it more suitable for those with lower sales volumes.

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Professional Seller Account

On the other hand, a Professional Seller Account is best for those who intend to sell more than 40 items per month. This account type requires a monthly subscription fee but allows for bulk listings, access to advanced selling tools, and other benefits that cater to higher sales volumes.

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Factors to Consider

When deciding which account type to choose, consider your sales volume, budget, and the level of support and tools you require. If you are just starting out or have lower sales volumes, an Individual Seller Account may be more suitable. However, if you anticipate higher sales volumes and want access to advanced selling features, a Professional Seller Account might be the better option.

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How to Switch From An Individual Account to a Professional Account

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Step-by-Step Guide

If you start with an Individual Seller Account but later find your sales growing and requiring the tools provided with a Professional account, you can easily upgrade. Here are the steps to switch from an Individual to a Professional Seller Account:

1. Log in to your Amazon Seller Account.
2. Go to the "Settings" tab and select "Account Info."
3. Click on "Upgrade Your Account" and follow the prompts to switch to a Professional Seller Account.
4. Set up payment for the monthly subscription fee.
5. Once the upgrade is complete, you will have access to the additional features and tools available to Professional sellers.

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Considerations Before Switching

Before making the switch, assess your sales volume and budget to ensure the Professional Account's benefits align with your business needs. If you anticipate continued growth in sales and can benefit from the advanced tools and support, upgrading to a Professional Account may be a strategic move for your Amazon selling venture.

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How to Find your first product to sell on Amazon?

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Factors you should consider when sell on Amazon?

When looking for your first product to sell on Amazon, it's essential to consider various factors to ensure success. It would help if you start by researching popular and trending products in different categories. Look for products with a high demand but relatively low competition to increase your chances of making sales. Additionally, analyze the profit margins, potential customer base, and the seasonality of the product.

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Conduct product research to sell on Amazon

To conduct product research on Amazon, utilize tools like Jungle Scout, Helium 10, or AMZScout to gather valuable data on sales trends, competition, and pricing. These tools can help you identify profitable niches and products with high demand. Analyze product reviews, ratings, and sales ranks to understand customer preferences and market gaps. By leveraging these insights, you can make informed decisions when selecting your first product.

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Evaluate the competition for the product

Evaluate the competition for a potential product by conducting a thorough competitive analysis. Examine the number of sellers offering similar products, their pricing strategies, product reviews, and overall brand reputation. Look for ways to differentiate your product, such as offering superior quality, unique features, or better customer service. By understanding the competitive landscape, you can position your product effectively in the market.

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Keyword research before finding a profitable product

Keyword research is crucial in finding a profitable product on Amazon. Use tools like Jungle Scout, Helium10, or Google Keyword Planner to identify relevant keywords with high search volume and low competition. Or you can try on our Amazon keyword research tool for free without registering, to find Find similar products and keywords for selling on Amazon and compare the keywords' competitiveness easily.

Incorporate these keywords into your product listing, titles, and descriptions to improve visibility and attract organic traffic. By choosing products associated with popular keywords, you can enhance your chances of reaching potential customers and driving sales.

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How can Amazon PPC advertising help in selling on Amazon?

Amazon PPC advertising can significantly boost your sales on Amazon by increasing your product visibility and driving targeted traffic to your product listings. Normally when you just launch a new product without any sales and review reocords, PPC campaigns on Amazon can have a significant impact on organic ranking. Especially when you swite to professiional seller account, by running targeted ad campaigns, you can attract potential customers who are actively searching for products like yours.

To maximize the effectiveness of your Amazon PPC campaigns, consider using automation tools like M19. Tools like M19 not only automate key processes that save massive time if you gonna lauch multiple campaigns or but also provide comprehensive reports that help Amazon sellers understand campaign performance and identify opportunities.

Key Features of M19

• Amazon PPC Automation: Automate bidding, ACOS target adjustment, decent budget allocation, and keyword exploration to optimize your PPC campaigns.‍
• Keyword Tracking: Monitor and analyze the performance of your bidding keywords to adjust strategies accordingly.‍
• In- depth Reporting: Generate comprehenvise reports that provide insights about product groups and ads performance. helping agencies make business decisions.

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Should you consider selling a unique product or a popular item?

When choosing your first product to sell on Amazon, you may debate between offering a unique, less competitive item or selling a popular, high-demand product. While unique products can carve out a niche market, popular items have a broader customer base. Consider balancing the two approaches by offering a unique twist on a popular product to attract customers while differentiating yourself from competitors.

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Which Fulfillment Method is the Best Option for You?

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Understand Amazon FBA (Fulfillment by Amazon)

Fulfillment by Amazon (FBA) is a service offered by Amazon where you store your products in Amazon's fulfillment centers. When a customer places an order, Amazon picks, packs, and ships the product on your behalf. This service also includes customer service and handling returns.

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Key Benefits of FBA

• Prime Badge: Your products are eligible for Prime shipping, making them more attractive to Prime customers.
• Global Reach: Amazon's vast infrastructure enables your products to reach customers worldwide.
• Time-Saving: Amazon handles the logistics, allowing you to focus on growing your business.
• Customer Trust: FBA products are perceived as reliable and backed by Amazon's reputation for quality.

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Understand Amazon FBM (Fulfillment by Merchant)

Fulfillment by Merchant (FBM) means that you, as the seller, are responsible for storing, packing, and shipping products to customers. This method is ideal for sellers who prefer to have more control over the shipping and handling process.

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Key Benefits of FBM

• Cost Control: You have more control over shipping costs and methods.
• Customization: You can personalize packaging and customer interactions.
• Higher Margins: Since you are handling fulfillment, you can potentially save on fulfillment fees.

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Factors to Consider When Choosing Between FBA and FBM

1. Volume of Sales: If you have high sales volume, the FBA model may be more efficient. Amazon's extensive fulfillment network allows you to scale your business without worrying about the logistics of packing, shipping, and handling a large number of orders.
2. Product Size and Type: Some products may be more suited to FBA due to storage and shipping requirements.
3. Shipping Speed: FBA can offer faster shipping times, which can be crucial for customer satisfaction.
4. Cost Analysis: Consider the fees associated with FBA versus the savings of handling fulfillment yourself.
5. Customer Expectations: Prime customers may prefer FBA for faster, reliable shipping.

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Make the Final Decision

Ultimately, the decision between FBA and FBM depends on your business model, goals, and resources. Many sellers choose a combination of both methods to optimize their operations. It's important to regularly assess and adapt your fulfillment strategy to meet the changing needs of your business and customers.

For more in-depth information on how to choose between FBA and FBM, you can visit Amazon's Fulfillment Options.

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Conclusion

In conclusion, selling on Amazon as an individual seller can be a lucrative opportunity for anyone looking to start their e-commerce journey. By following this comprehensive guide, you now have a clear understanding of how to set up your Amazon Individual Seller Account, navigate the fees, and choose the right fulfillment method for your business.

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We hope this article helps!

So there you have it. A comprehensive guide about how to sell on Amazon as an individual seller.

Here at m19, we’re most excited about how to promote your product by Amazon PPC and boost sales, but any of advice about selling on Amazon we mentioned are viable options for making money.

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FAQ

Q: What is an individual seller account on Amazon?

‍An Amazon Individual Seller Account is designed for those who want to sell on Amazon but do not need advanced selling tools or the ability to list more than 40 items per month. It's ideal for casual sellers who are just starting out or only plan to sell a few items occasionally.

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Q: What are the fees associated with selling on Amazon?

‍Amazon charges various fees for selling on its platform, including referral fees, closing fees, and storage fees if using Fulfillment by Amazon (FBA). Referral fees are a percentage of the sale price and vary by product category. Closing fees apply to media products, and storage fees apply if you use Amazon's warehouses to store your products. Make sure to check Amazon's fee schedule to understand the costs associated with selling your products.

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Q: Can individuals sell on Amazon?

‍Yes. An Amazon Individual Seller Account is perfect for those looking to sell a limited number of items. You have access to basic selling tools and can sell up to 40 items per month.

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Q: Can I sell on Amazon without a business?

‍Yes, you can sell on Amazon without officially registering as a business. Many individual sellers start on Amazon without a formal business structure. However, you will need to provide some basic personal information and comply with tax regulations, which may include providing your Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for tax reporting purposes. If your sales grow, you may later decide to establish a formal business entity.