Amazon Seller Types: Which One Suits Your Business
Amazon is a renowned marketplace. It provides sellers with a great opportunity to sell their products online, even without a physical retail space. Businesses of all sizes can have a seller account on Amazon. However, choosing the right business model is crucial for selling successfully on Amazon. There are numerous ways you can sell on Amazon, depending on the type of products you wish to sell, your business size, and your goals. Each type offers unique benefits and revenue potentials. Whether you are planning to embark on an online journey as a seller or you are a seasoned retailer, knowing different types of Amazon sellers is crucial to making a difference. In this post, we will discuss different types of Amazon sellers to help you make mindful decisions. So, let’s get started…
Different Types of Amazon Seller Accounts
Here are the different types of sellers on Amazon. Continue reading to learn more about them, so you can make an informed choice. Take a look…
CATEGORY 1: Individual Seller Account & Professional Seller Account
Individual Seller Account
An individual seller account, as the name suggests, is a type of account in which sellers sell their items on their own. These are ideal for casual or low-volume sellers. Sellers who wish to sell fewer than 40 items per month should opt for an individual seller account on Amazon. It is one of the best and simplest options for beginners as well. However, it is worth noting that these seller accounts come with limitations. Yes, you will have limited access to bulk listing tools, reports, and ads.
Monthly fee: None (you pay per sale)
Per-item fee: Yes (currently ₹83 per item sold, plus referral fees)
Professional Seller Account
Professional sellers are the ones who wish to sell a wide range of products on Amazon. Aside from that, those who wish to scale their business on Amazon can also opt for a professional seller account. This is specifically for full-time or high-volume sellers. Having a professional seller account lets you have access to advertising tools, bulk uploads, reports, and Buy Box eligibility.
Monthly fee: ₹3,340 (plus referral fees)
CATEGORY 2: Fulfillment by Amazon (FBA) & Fulfillment by Merchant (FBM)
Fulfillment by Amazon
Fulfillment by Amazon, also known as FBA, is a full-fledged service option in which Amazon handles all your storage, packing, shipping, and customer service. This is a great option for new sellers on Amazon or those looking for scalability. Choosing FBA allows sellers to have peace of mind as everything is taken care of by Amazon itself. All they need to do is send their inventory to Amazon’s warehouses. However, it can be an expensive endeavour for startups.
Monthly fee: It includes fulfillment fees, storage fees, and other charges like inbound placement service fees or long-term storage fees
Fulfillment by Merchant
Fulfillment by Merchant, or FBM, is a kind of seller account in which everything, from storage to inventory, shipping to customer support, is handled by the seller themselves. It is a great option for seasoned sellers, or the ones selling large or niche items, or the ones who have their own established supply chain.
Monthly Fees: 6 to 15% referral fees
CATEGORY 3: Amazon Vendor & Amazon Seller
Amazon Vendor
Amazon vendors are first-party sellers who manufacture or outsource their products to sell on Amazon. Amazon vendors sell in bulk, and Amazon resells them to customers. These are sold with “Ships from and sold by Amazon” labels and are often sold in large volumes.
Monthly Fees: No Fee!
Amazon Seller
Amazon sellers are third-party sellers. Businesses of any size and shape can have an Amazon seller account. All you have to do is list your products on Amazon and sell them directly to customers via Amazon’s marketplace. Amazon sellers have full control over pricing, inventory, marketing, and branding.
Monthly Fees: These include referral fees, closing fees, and FBA fees if using that service.
CATEGORY 4: Private Label, Wholesale, Arbitrage, Drop Shipping, & Handmade Sellers
Private Label
Private label sellers create their products and sell them on Amazon. They often have high margins and full control over branding. It is a great option for sellers who wish to build a brand online.
Wholesale Sellers
Wholesale sellers are those who buy products from other brands and resell them on Amazon. This is a great option for those who wish to enter the online marketplace but have no idea where to start. In this kind of selling, profit margins are low, but it works for sure.
Arbitrage Seller
Arbitrage sellers are those who purchase items from retail stores at discounted prices and resell them on Amazon or other online platforms. This kind of selling has a lower entry fee, but you cannot scale this at all.
Drop Shipping
Then there are dropshipping sellers. These sellers aren’t required to hold inventory. They can list their products and ask their suppliers to ship the products directly to the customers. It is a good option for those who wish to start their online selling business.
Amazon Handmade Sellers
This kind of seller account is specifically for artisans who create handmade products. This is a great option for those who create handmade décor items and wish to have an online presence.
Which One to Choose?
Choosing the right type of Amazon seller account depends greatly on your business size, goals, and budget. If you are just starting your online business, then consider opting for FBA. FBA will be the wisest choice for you. Everything will be handled by Amazon. However, if you wish to scale your business, then FBM and professional seller accounts are ideal for you. Whatever you choose, make sure you give enough thought to the seller type before you embark on your online selling journey.
Ending Note
So, these are the types of sellers on Amazon. An Amazon seller account is a great way to have an online business. You can choose to open any type of seller account; however, it is crucial to evaluate your goals, business size, budget, resources, and the pros and cons of each seller type before having your own Amazon seller account. And if all this seems like a task, then consider getting help from a professional seller account management service provider. Selling OS is a reputable brand in Delhi, providing high-quality Amazon seller account management services.
