Amazon.com is one of the largest e-commerce platforms in the world, with millions of customers and thousands of sellers. For sellers, there are three main options for selling products on Amazon.com: Individual Seller, Professional Seller, and Amazon FBA (Fulfilment by Amazon). Each option has its advantages and disadvantages, and it’s important to choose the right one based on your business needs and goals. Let’s dive in!
Option 1: Individual Seller
The Individual Seller option is best suited for individuals who want to sell a few items on Amazon.com. This option is ideal for those who are just starting and want to test the waters of selling on Amazon.com without committing to a large inventory. The Individual Seller option is also great for those who have limited time to dedicate to their Amazon.com business.
- One of the main advantages of the Individual Seller option is that there are no monthly fees. Instead, Amazon charges a per-item fee of $0.99 per item sold. This fee is deducted from the sale price of the item, which means that sellers only pay when they make a sale. This makes it a low-risk option for those who are just starting.
- However, there are also some disadvantages to the Individual Seller option. First, the per-item fee can add up quickly if you are selling a large number of items. Second, Individual Sellers are not eligible for certain benefits, such as Amazon’s Buy Box, which is the box on the right-hand side of the product page that displays the seller with the lowest price. This can make it harder to compete with other sellers.
Option 2: Professional Seller
The Professional Seller option is best suited for businesses that plan to sell a large number of items on Amazon.com. This option is ideal for those who are looking to grow their Amazon.com business and want access to additional features and benefits.
- One of the main advantages of the Professional Seller option is that there are no per-item fees. Instead, Amazon charges a monthly subscription fee of $39.99. This fee includes access to additional features, such as the ability to upload inventory in bulk and access to Amazon’s Buy Box. Professional Sellers are also eligible for certain benefits, such as the ability to create promotions and deals.
- However, there are also some disadvantages to the Professional Seller option. First, the monthly subscription fee can be a barrier for some sellers who are just starting. Second, Professional Sellers are required to meet certain performance metrics, such as maintaining a certain level of customer feedback and order defect rate. If a seller fails to meet these metrics, they can be subject to penalties or suspension of their account.
Option 3: Amazon FBA (Fulfilment by Amazon)
Amazon FBA (Fulfilment by Amazon) is a program that allows sellers to store their inventory in Amazon’s warehouses and have Amazon handle the shipping and customer service. This option is best suited for businesses that want to outsource their fulfilment and focus on other aspects of their business.
- One of the main advantages of Amazon FBA is that it can save sellers a lot of time and money. By outsourcing their fulfilment, sellers can focus on other aspects of their business, such as marketing and product development. Amazon also handles customer service and returns, which can be a time-consuming process for sellers. Another advantage of Amazon FBA is that it can improve a seller’s chances of winning the Buy Box. Amazon gives priority to FBA sellers because they can offer Prime shipping, which is a major selling point for customers.
- However, there are also some disadvantages to Amazon FBA. First, there are fees associated with using the program, such as storage fees and fulfilment fees. These fees can add up quickly if a seller has a large inventory. Second, sellers are required to meet certain packaging and labelling requirements, which can be a challenge for some sellers. Additionally, sellers have less control over the fulfilment process, which can lead to issues with lost or damaged inventory.
Taking Everything Into Account
Overall, each of these three options for selling products on Amazon.com has its advantages and disadvantages. The key is to choose the option that best suits your business needs and goals. If you are just starting or have a limited inventory, the Individual Seller option may be the best choice. If you are looking to grow your business and want access to additional features and benefits, the Professional Seller option may be a better fit. And if you want to outsource your fulfilment and focus on other aspects of your business, Amazon FBA may be the way to go. Whatever option you choose, it’s important to do your research and understand the fees, requirements, and benefits associated with each option before making a decision.
