As the world’s largest e-commerce platform, Amazon has attracted countless sellers. In this huge market, sellers can choose to become individual sellers or corporate sellers to meet different sales needs and business goals. So, what are the differences between individual sellers and corporate sellers? This article will conduct a detailed analysis from the following aspects.
1. Account type and fees.
Individual seller accounts are mainly aimed at smaller sellers with limited sales, and are suitable for those who want to try selling products on Amazon. Individual sellers pay no monthly subscription fees and only pay a flat fee per item. In contrast, enterprise seller accounts are suitable for merchants with larger scale and sales volume and require a fixed monthly subscription fee. In addition, when enterprise sellers sell products, Amazon will charge a certain percentage of transaction fees.
2. Product release quantity.
There is a limit to the number of products that individual sellers can publish on the Amazon platform. For this type of seller, they may encounter the problem of limited sales volume, which affects the speed and scope of their business expansion. Enterprise sellers can publish an unlimited number of products, which will help them increase sales and market share.
3. Sales channels and operational tools.
Enterprise sellers can enjoy richer sales channels and operational tools. For example, corporate sellers can use Amazon’s advertising services to promote products and increase their exposure and click-through rates. In addition, corporate sellers can also use Amazon’s brand registration service to strengthen brand protection and management. In contrast, individual sellers have relatively few resources and support in these areas.
4. Warehousing and logistics.
Amazon provides sellers with a wealth of warehousing and logistics solutions. Among them, both individual sellers and corporate sellers can use Amazon logistics services. However, enterprise sellers usually enjoy more favorable logistics rates due to their larger sales scale. In addition, enterprise sellers can also use Amazon’s multi-channel delivery service to quickly deliver products to buyers around the world.
5. Customer service and after-sales support.
Amazon differentiates between individual sellers and corporate sellers in terms of customer service and after-sales support. Enterprise sellers typically receive a higher level of customer support, including a dedicated account manager and priority after-sales processing. These advantages help enterprise sellers better maintain customer relationships and improve customer satisfaction. In contrast, individual sellers may be somewhat limited in customer service and after-sales support and need to rely on the Amazon platform’s standard customer service.
6. Payment and settlement.
Amazon’s payment and settlement methods are different for individual sellers and corporate sellers. Individual sellers usually have a longer settlement cycle and need to wait for a while to receive payment. Corporate sellers can enjoy a shorter settlement cycle, which helps improve capital turnover efficiency. In addition, enterprise sellers can also apply for Amazon’s loan services to meet their funding needs for inventory, marketing, and expansion.
7. Data analysis and reporting.
Enterprise sellers can obtain richer data analysis and reporting functions to better understand sales and market trends. These data reports help corporate sellers optimize product strategies, develop marketing plans, and improve competitiveness. In contrast, individual sellers have relatively few features in terms of data analysis and reporting.
There are obvious differences between individual sellers and corporate sellers on the Amazon platform. From the perspective of fees, number of product releases, sales channels, operating tools, warehousing and logistics, customer service, after-sales support, payment settlement, and data analysis, corporate sellers enjoy more advantages and resources than individual sellers. However, for those smaller sellers who are just starting out, a personal seller account is undoubtedly a lower-cost and convenient option. In actual operations, sellers need to reasonably choose the identity of individual sellers or corporate sellers based on their own needs and development stages to achieve the best operating results.