Detailed explanation of Amazon platform account types and fee structure analysis

On the Amazon platform, sellers can choose different account types to sell products according to their own needs. This article will detail the main account types on the Amazon platform and their associated fee structures.

Amazon platform account types

1. Amazon Seller Central (SC)

Amazon Seller Central, referred to as SC, is an operating account for third-party sellers on the Amazon platform. It allows retailers to sell goods on Amazon as third-party sellers, which is a typical B2C model. Almost all Chinese sellers choose to do business on Amazon as SC. SC accounts are divided into two sales plans: Individual Selling Plan and Professional Selling Plan.

• Personal Selling Plan: The platform usage fee is USD 0.99 per item. When uploading products, you can only upload them individually and there is no data report in the background, and you cannot use the promotion tools provided by the platform.
• Professional Sales Plan: Monthly fee is $39.99/month. You can upload products individually or in batches, download data reports, and use the promotion tools provided by the platform.

The conversion between the two sales plans is relatively flexible, but it is generally recommended that sellers choose the professional sales plan from the beginning to better develop their business.

2. Amazon Vendor Central (VC)

Amazon Vendor Central, referred to as VC, is the supplier system of the Amazon platform. Only brand sellers invited by Amazon can register as VC accounts. The characteristic of a VC account is that Amazon purchases and stores the seller’s products and is responsible for transportation, pricing, customer service, etc. This approach is similar to the self-operated model of the domestic JD.com platform.

3. Amazon Vendor Express (VE)

Amazon Vendor Express, referred to as VE, is similar to VC, but it is mainly for sellers in the United States and needs to meet specific conditions, such as having a U.S. tax ID number. However, the program is currently closed to new applications.

4. Amazon Business Seller (AB)

Amazon Business Seller, referred to as AB, is an account type specially set up for business purchases, allowing corporate and institutional buyers to access a large selection of products, and provides exclusive prices and fast delivery services.

Fees Structure

The expenses involved in opening a store on the Amazon platform mainly include store rent, sales commissions and other expenses, such as taxes and advertising fees. Specifically:

• Professional Sales Plan: Cost = monthly rent ($39.99/month) + sales commission
• Personal Selling Plan: Cost = per piece ($0.99/item) + sales commission

Conclusion

Choosing the right Amazon account type is crucial for sellers. Different types of accounts have their own advantages and limitations. Sellers should decide which account type is most suitable for them based on their business scale, target market, and long-term planning. In addition, familiarity with the fee structure of each account type can help you plan your budget appropriately and achieve higher profit margins.