Amazon individual seller account vs Professional plan

Amazon individual seller account and Professional plan side by side

Amazon has two selling plans, and you pick one when you register. The Individual plan charges $0.99 per unit sold and has no monthly fee. The Professional plan charges a flat $39.99 per month instead, with no per-item plan fee. On top of either plan fee, each sale pays a per-item referral fee that varies by category.

The plan does not change the referral fee. A Home and Kitchen item pays the same referral rate on both plans. What changes is the fixed cost per item, the monthly cost, and which tools and categories you can use. The table sets out what Amazon's own pricing page lists for each plan: the first four rows are checked for both plans, the rest for Professional only.

Amazon also notes that Other costs may apply also if you decide to use optional Amazon tools and programs. Advertising is one of those: the ads themselves are paid for separately from the plan.

When the Amazon Professional selling plan costs less

The break-even sum compares two fixed costs. On the Individual plan, every item sold adds $0.99 per unit sold. On the Professional plan, the plan costs a flat $39.99 per month, and the item count does not change it. Divide the monthly fee by the per-item fee and you get the number of items a month at which the two plans cost the same.

That point is about 41 items a month. Below it, the per-item fees add up to less than the monthly fee, so the Individual plan is cheaper. Above it, the Professional plan is cheaper, and every extra item widens the gap. Amazon's own guidance says the same in round terms: if you plan to sell fewer than 40 items a month, the Individual plan may be best for you.

Count items sold, not orders. The Individual fee is charged per unit, so an order of three units pays it three times. Count a normal month too, not your best one: a seller who sells well in December and slowly in March can save by switching between plans, because you can switch or cancel your selling plan at any time.

Amazon individual vs professional seller fees on one sale

The same $30 sale on both plans, using the referral rate and plan fees from Amazon's pricing page. The referral fee is identical; only the plan fee differs.

What the Amazon Professional selling plan adds besides price

For some sellers the choice is made by features, not by volume. The Professional plan is the only way to use several Amazon programs, so a seller who needs one of them pays the monthly fee even at low volume.

• Advertising. To advertise products you sell in the Amazon store, Amazon says to create a Professional selling account and then an Amazon Ads account.
• Restricted categories. Some categories are open to all sellers, but some require a Professional selling plan, and others need Amazon's approval.
• Amazon Handmade. Makers apply to Handmade After creating a Professional selling account.
• Brand tools. Enhanced product pages and a brand store come with Professional, but Amazon's note on the plan table says this Requires you to enroll your brand in Amazon Brand Registry.
• Speed. Use bulk operations to list, price, and manage inventory faster, and Use Automate Pricing to change prices by rule. On both plans you can list one product at a time and set static prices, but on the Individual plan that is all you get.
• Reach. Sell B2B with Amazon Business and Expand worldwide with Global Selling.

How to choose between the two plans

Work through these in order. The first one that applies to you decides the plan.

1. Check whether you need a Professional-only feature

   If you want to run ads, sell in a category that requires Professional, join Amazon Handmade or use brand tools, pick Professional. Volume does not matter in that case.

2. Estimate items sold in a normal month

   Count units, not orders. If the count is well under 41, the Individual plan costs less in plan fees.

3. Compare the two plan fees

   Multiply your monthly unit count by $0.99 per unit sold and compare the result with $39.99 per month. The lower number is the cheaper plan for that month.

4. Review after a few months

   Amazon states that you can switch or cancel your selling plan at any time. You change it from the Manage Your Services page in Seller Central.

The referral fee is the same on both plans

Every sale pays a referral fee, and the plan does not change it. Amazon charges it as a percentage of the total price or a minimum amount, whichever is greater. The rate depends on the product's category: Home and Kitchen, for example, is listed at 15% $0.30, the rate followed by the minimum. The full category list and the closing fee for media items are in the Amazon seller fees guide.

This is why the plan choice matters less for expensive items than for cheap ones. On a low-priced item, the Individual fee of $0.99 per unit sold is a large share of the sale. On a high-priced item, the referral fee dominates and the plan fee is a small extra either way.

Where Nation fits

Questions about Amazon Individual and Professional accounts