For growing e-commerce brands, creating an Amazon seller account can bring huge money-making opportunities. With more than 2.4 billion visitors in the US alone, selling on Amazon is often presented as an obvious way to grow your e-commerce business.
While Amazon is a very profitable channel for some, others may be less comfortable with the potential risks. It all comes down to your unique goals and growth model.
So is now the right time to start selling on Amazon?
Whether you’re already a successful Amazon seller or a new brand looking to use Amazon as part of a broader multichannel strategy, here’s what you need to know about Amazon seller accounts today.
So you’ve decided to ramp up your presence on Amazon — or dip your toes in the water for the first time. As a soon-to-be member of one of the world’s most powerful e-commerce marketplaces, the world of online shopping is your oyster.
If you’re here, you likely already have your business basics nailed down, including which products you sell and how (and where) you source them.
To prepare for the Amazon seller account creation process, you have some additional decisions to make regarding your relationship with Amazon.
If you’re already selling your products on other e-commerce marketplaces, you probably have an idea of which business model you’re operating with.
Some popular e-commerce business models include:
One of Amazon’s greatest differentiating features is its fulfillment options.
Amazon allows new sellers to choose how they’ll get products to customers, using these two options:
Fulfillment by Amazon (FBA): Amazon FBA spans the globe, thanks to the Global Selling program which allows sellers to fulfill orders internationally by shipping goods through Amazon’s expansive network.
With FBA, sellers ship their goods to a fulfillment center assigned by Amazon. As orders roll in, Amazon will take care of the picking, packing, shipping, and returns for a fee that depends on the item’s size, height, and category. This frees up your time to focus on other important tasks, like marketing and product development.
Fulfillment by Merchant (FBM): FBM puts sellers in the driver’s seat. You get more control over shipping times and products — e.g., you can conduct a final inspection before sending goods out and can use custom packaging instead of the classic Amazon box.
Since Amazon won’t be involved in your fulfillment process, you’ll have one less fee to pay to them. If you secure good deals with shipping carriers or a 3PL partner, you can increase your profits and pass the savings on to customers to make your items more appealing.
During the application process, you’ll need to choose which type of account fits your business.
As a growing brand on Amazon, you have two main options — individual and professional.
This is an important decision, though you can change it later. Let’s explore the pros and cons of each type of account.
Both individual seller and professional seller accounts are considered third-party sellers’ accounts. They’re similar to most marketplace accounts and are suitable for both registered businesses and self-employed business owners ready to set up shop on Amazon.
With third-party accounts, you’ll be responsible for your stock, listings, account health, and advertising. You can also set your own product prices. If you choose to self-fulfill (vs. the FBA fulfillment option), you can set your own shipping rates.
The individual plan includes:
If you sell more than 40 units per month, a professional selling plan is your best bet. It includes:
With either type of third-party account, selling on Amazon is going to cost you.
Here are some of the selling fees Amazon charges:
In addition to third-party sellers’ accounts, established manufacturers and distributors may qualify for a vendor account. These invite-only accounts mean Amazon takes ownership rights over your inventory, including managing your product portfolio, marketing, and selling your items.
It makes selling a little more hands-free than the third-party sellers’ accounts — but the reduced workload comes at a price.
Amazon charges three core fees for vendor accounts:
Ready to create your Amazon seller account?
Before you sign up, you’ll need:
Now that you’re all set, let’s get started creating your account.
The setup and verification process is extensive, but it’s all meant to keep Amazon’s ecosystem a safe and enjoyable place to do business for both sellers and shoppers.
If you’re looking to set up more than one Amazon seller account, we’ve got good news. It is possible to get approval for a second account or more. However, you must get approval from the big boss — Amazon.
Signing up for multiple accounts without Amazon’s consent is a big risk, even if done accidentally. It can get your account suspended or even result in being banned for good.
Amazon will assess requests for multiple accounts on a case-by-case basis. You must have a genuine business need and a healthy existing account.
Managing multiple Amazon seller accounts can be tricky. It’ll create more work in your business and increase your financial obligations, which can quickly complicate your Amazon business if you’re not on top of your game.
It’s not about how many Amazon seller accounts you can have, but how many your business needs (and can handle). If you decide to pursue another account, develop a plan for maintaining your existing store while expanding.
To assess whether you should go down the multiple account route, here are some scenarios in which taking on another store might make sense:
Once you meet the requirements, applying for another seller account is simple.
Here are the steps to take:
Customer experience and brand building are more important than ever for Amazon sellers, and Amazon Brand Registry is a potential game-changer for your revenue potential.
With a registered Amazon brand and eye-catching Amazon Storefront, you can rise above the noise with branded content and get access to brand analytics tools to guide your business decisions.
Brand Registry is vital for long-term success and sustainability in today’s hyper-competitive e-commerce market. It helps you showcase your brand’s unique personality and offers you protection from unruly, counterfeit sellers.
For example, some sellers may partake in listing hijacking, undercutting your product listings with a lower price to win the Buy Box and steal your sales. As a registered Amazon brand, you can report these sellers, get them booted off your listing, and restore your rankings.
To qualify for Amazon Brand Registry you must have a:
Once you’ve attained registered brand status, a new world opens up. You’ll have new options to present your store through images, videos, and text.
Amazon offers three main features for registered brands:
To maintain a top-quality platform for buyers and sellers alike, Amazon has strict guidelines.
Here are the answers to your top questions to help you get things right from the outset.
The short answer is every two weeks — but the long answer is far more complicated.
Amazon is notorious for delaying payouts due to its extensive returns policy, strict rules on changing bank accounts, and multi-step payment schedule — all of which can hold up your disbursements.
Amazon also requires an account level reserve for all sellers to cover any potential returns and chargebacks which can further delay your payout. To protect your store, you may want to establish a relationship with a reliable e-commerce funding provider in case you don’t receive funds from Amazon on your predicted payout day.
The IPI score is a metric Amazon uses to keep standards high on its platform.
The Amazon IPI assesses sellers in four key areas related to inventory management:
The highest attainable IPI is 1,000. A high IPI score will get you better rankings and more inventory space. However, you could experience limitations if your IPI score slips below the “threshold” — which changes regularly but usually ranges from 400 to 500. A below-threshold IPI could leave you with slashed inventory limits, suspended listings, and dropped rankings.
There are several ways to sell on Amazon without physically managing inventory yourself:
For many e-commerce sellers, Amazon is a key sales channel. Whether you’ll see a healthy ROI comes down to having a clear understanding of the costs and benefits.
Some of the benefits of selling on Amazon are:
If you want to sell on Amazon, you have to play by Amazon’s rules.
Some of the potential drawbacks could include:
We think that the pros of selling on Amazon far outweigh the cons. If you’re not already selling on Amazon, learn more and start selling in the Amazon Store.
Running a successful Amazon store can be a great way to reach your topline goals, but it’s hard work.
When you need a partner you can rely on for consistent cash flow when selling on Amazon, our team at SellersFi is here to help.
With the Amazon Revenue Advance, you get your Amazon Marketplace earnings paid to you in full without having to wait for Amazon’s 14-day disbursement. Funding comes in the form of short-term working capital of 1-3 months and fees as low as 1.5%.
Explore our growing library of Amazon insights and resources or reach out to our team today to learn how you can get started with zero-commitment.
