Amazon Individual Seller vs Professional – Which One Is Better?

When starting your journey as an Amazon seller, one of the first crucial decisions you’ll face is selecting the right seller plan. Amazon offers two distinct options: Individual and Professional. 

This choice will significantly impact your selling experience, available features, and bottom line. Understanding the key differences between these plans will help you make an informed decision aligned with your business goals and sales volume.

What Are Amazon Individual And Professional Seller Plans?

Amazon’s selling platform accommodates businesses of all sizes through two primary seller plans. These plans are designed to meet different seller needs based on sales volume, business goals, and required features.

The Individual seller plan is tailored for casual sellers with lower sales volumes. It’s perfect for those testing the waters of e-commerce, clearing out household items, or running a small side hustle with limited inventory.

The Professional seller plan is designed for established businesses or entrepreneurs committed to building a scalable Amazon presence. It caters to sellers expecting higher sales volumes and those needing advanced tools to manage and grow their operations.

The fundamental difference between these plans lies in their fee structure and the range of features available to sellers. Your choice should align with your sales projections, business ambitions, and immediate needs.

Amazon Seller Plan Fees: Breaking Down The Costs

Understanding the fee structure is essential when choosing between Individual and Professional plans:

Feature	Individual Plan	Professional Plan
Monthly subscription	None	$39.99/month
Per-item fee	$0.99 per sale	None
Break-even point	Best for <40 items/month	Cost-effective at >40 items/month
Referral & fulfillment fees	Standard rates apply	Standard rates apply

The pricing structure creates a clear decision point: the 40-item threshold. If you sell 40 items in a month as an individual seller, you’ll pay $39.60 in per-item fees (40 × $0.99). At 41 items, your fee would be $40.59, exceeding the Professional plan’s flat $39.99 monthly subscription.

For high-volume sellers, the savings become substantial. Selling 100 items monthly would cost $99 in per-item fees under the Individual plan versus the fixed $39.99 with the Professional plan, representing a 60% cost reduction.

It’s important to note that both plans are subject to the same referral fees (category-specific percentages of the selling price) and fulfillment fees if using Amazon FBA. These additional costs should factor into your overall business calculations regardless of plan choice.

Which Amazon Seller Plan Is Right For You?

Selecting the appropriate Amazon seller plan requires an honest assessment of several factors:

• Sales Volume Expectations: The 40-item monthly threshold is your primary decision point. If you confidently expect to exceed this number, the Professional plan offers immediate cost advantages.
• Business Scale and Growth Potential: Consider not just your current sales but your near-future projections. If you’re launching with a small inventory but planning rapid expansion, the Professional plan might be worth choosing from the start.
• Feature Requirements: Beyond cost calculations, evaluate which seller tools and capabilities your business needs to operate efficiently. The Professional plan unlocks several advanced features that could prove essential depending on your business model.
• Budget Considerations: New sellers with limited capital might opt for the Individual plan to minimize upfront costs, especially if sales volumes are uncertain. The Individual plan allows you to pay as you go without committing to a monthly fee.

When evaluating these factors, remember that you can switch between plans as your business evolves. Many successful Amazon businesses start with an Individual plan and upgrade to Professional once their sales consistently exceed the 40-item threshold.

Selling in Restricted Amazon Categories

Category access represents a significant difference between the two seller plans:

Both Individual and Professional sellers can sell in approximately 20 standard categories, covering most common product types. However, Professional sellers gain access to an additional 10+ restricted or “gated” categories, including:

• Automotive Parts & Accessories
• Business-to-business (B2B) products
• Collectible Coins and Sports Collectibles
• Fashion and Fine Jewelry
• Fine Art
• Grocery, Food & Gourmet
• Industrial & Scientific
• Professional Services
• Video, DVD & Blu-ray
• Watches

These restricted categories often represent higher-margin opportunities with less competition. Many sellers upgrade to the Professional plan specifically to access these categories.

The “ungating” process (gaining permission to sell in restricted categories) requires a Professional account as the first step, followed by category-specific approval procedures that may include submitting invoices, quality documents, or additional fees.

Certain product variations within standard categories, such as Collectible Books, may also require a Professional account regardless of the broader category accessibility.

Winning The Amazon Buy Box: Professional Seller Advantage

One of the most compelling reasons to choose the Professional plan is Buy Box eligibility. The Buy Box is the prominent “Add to Cart” button on Amazon product listings, and it drives approximately 82% of all Amazon sales.

Individual sellers cannot compete for the Buy Box—even if they offer the best price or fastest shipping. This means buyers must take additional steps to purchase from Individual sellers, dramatically reducing conversion rates.

Professional sellers, conversely, can win the Buy Box based on their performance metrics, pricing, fulfillment method, and other factors. For products with multiple sellers, winning the Buy Box can mean the difference between consistent sales and virtual invisibility.

This advantage alone justifies the Professional plan’s monthly fee for many sellers, particularly those selling competitive products where Buy Box placement directly impacts revenue potential.

Access To Amazon Advertising And Promotional Tools

Professional sellers gain exclusive access to Amazon’s powerful advertising platform. These promotional capabilities include:

• Sponsored Products: Pay-per-click ads that boost visibility in search results
• Sponsored Brands: Custom headline ads that showcase your brand and multiple products
• Promotional tools: The ability to offer coupons, discounts, and special deals
• Lightning Deals participation: Featured limited-time offers with prominent placement

Individual sellers cannot create advertisements or run promotions for their products. This limitation significantly handicaps their ability to drive traffic and conversions, especially for new listings that lack organic search visibility.

For sellers seeking to build a brand or launch new products, these advertising capabilities are often essential for gaining initial traction and scaling their business.

Advanced Seller Tools And Features Comparison

Beyond the core differences, Professional sellers have access to numerous advanced tools:

• Inventory management: Bulk listing tools, inventory reports, and feed capabilities
• API integration: Connect with third-party software to automate operations
• Detailed sales reports: Access comprehensive analytics for business decisions
• Multiple user accounts: Grant specific permissions to team members
• Custom shipping rates: Set your shipping fees for merchant-fulfilled items
• Tax calculation services: Automated sales tax calculations

Individual sellers have access to basic listing and order management tools but lack these advanced capabilities. For sellers managing substantial inventory or requiring automation, these additional features can dramatically improve operational efficiency.

Why Choose An Individual Amazon Seller Plan?

Despite the Professional plan’s advantages, the Individual plan remains appropriate in several scenarios:

• Testing the Platform: For new sellers unsure about their long-term commitment to Amazon
• Occasional selling: For those selling just a few items each month without growth ambitions
• Minimal inventory: For sellers with a limited product selection unlikely to exceed 40 monthly sales
• Budget constraints: For entrepreneurs, minimizing initial costs while validating their business model
• Marketplace research: For experienced sellers exploring new niches before full commitment

The Individual plan provides a low-risk entry to Amazon selling. With no recurring subscription fee, it allows sellers to experiment without significant financial pressure, paying fees only when items sell.

Building A Business With The Professional Seller Plan

For those committed to building a sustainable Amazon business, the Professional plan offers the comprehensive toolkit required for growth:

• Scalable operations: Advanced inventory management and bulk tools support expansion
• Brand building: Advertising capabilities and Brand Registry access enhance visibility
• Competitive positioning: Buy Box eligibility ensures maximum conversion opportunity
• Diversification options: Access to restricted categories enables product portfolio expansion
• Business analytics: Detailed reporting facilitates data-driven decision-making

The $39.99 monthly fee becomes increasingly insignificant as sales volume grows, while the advanced features become increasingly valuable for managing complexity.

How To Switch Between Amazon Selling Plans

Amazon allows sellers to switch between plans as their needs evolve:

1. Log in to Seller Central and access your account settings
2. Navigate to Account Info through the gear icon in the top-right corner
3. Locate the Selling Plan section in “Manage Your Services.”
4. Select the desired plan (Individual or Professional) and confirm the change

When upgrading to Professional, the subscription begins immediately, with tools becoming available right away. Some billing features may take up to two days to activate fully.

When downgrading to Individual, ensure you’ve disenrolled from any services requiring a Professional account first. Otherwise, you may be unable to complete the downgrade process.

Consider timing your plan switch to align with your billing cycle to avoid unexpected prorated charges. After switching, closely monitor your account to ensure all necessary features function correctly with your new plan.

Related Reads:

• Is Selling on Amazon Worth It
• How to Sell on Amazon FBA
• How Amazon Sellers Can Use AI To Grow Sales

Conclusion: The Individual Plan Is Best For Small Sellers, And The Professional Plan Is Used By Growing FBA Sellers

The choice between Amazon’s Individual and Professional seller plans ultimately comes down to your business goals, sales volume, and feature requirements.

The Individual plan offers a low-risk entry point with pay-as-you-go pricing ideal for casual sellers or those testing new concepts. The Professional plan provides the comprehensive toolset needed for serious business building, with cost advantages for sellers exceeding 40 monthly sales.

Many successful Amazon businesses start with the Individual plan to validate their concept before upgrading to the Professional plan as sales increase. Alternatively, ambitious sellers with clear business plans often start directly with the Professional plan to access its full feature set from day one.

Whichever plan you choose initially, remember that you can switch as your needs evolve. The most important step is beginning your Amazon selling journey with clear objectives and a willingness to adapt your approach as your business grows.