To start a business, firstly you have to understand how it works. You have to research it and accumulate all the resources required for the business. After deep research and resource collection, you start the business. The same goes for Amazon but there are some other major and distinctive factors that you should keep in mind while starting an Amazon business.
Amazon Business Models
At first, you have to decide what model you choose for your business. Every online E-commerce business works on one of the two types of business models, which are
FULFILMENT BY AMAZON
Fulfillment by Amazon (FBA) is a service that allows businesses to outsource order fulfillment to Amazon. Businesses send products to Amazon fulfillment centers and when a customer makes a purchase, they pick, pack, and ship the order. they can also provide customer service and process returns for those orders.
FULFILLMENT BY MERCHANT
Fulfilled by Merchant, popularly known as FBM, is when sellers list their products on Amazon and choose to ship products to each buyer by themselves. In other words, sellers are responsible for fulfilling their orders and do not rely on Amazon for the same. While it is a rather advantageous method for products with lower margins, FBM Amazon is rather overlooked owing to easy shipping, handling, and other benefits that come with Amazon FBA.
After choosing the business model for your business you sign up on Amazon as a seller but some people get confused while choosing between which account to create on Amazon.
Types of Seller Accounts
As a seller on Amazon, you have two options to choose from
INDIVIDUAL ACCOUNT
On the off chance that you are a small vendor with not many things to sell or simply trying things out, this type of account is appropriate for you. It is a pay-as-you-go framework and incorporates no month-to-month account charges. You just have to pay a $0.99 expense each time a unit is sold and it gives you access to some basic tools which help you in the management of your inventory and ordering.
But there are some conditions from Amazon like you cannot sell cannot create a new product listing on Amazon you can only sell products that already have a listing on Amazon. Additionally, you are bound to sell in any domain except the restricted domains by Amazon such as health, personal care, grocery, clothing, footwear, watches, beauty items, etc. You can’t offer free delivery to draw shoppers, Amazon is going to set the shipping charges for you. You may, in any case, update your Individual Account to a Professional one, at whatever point you want.
PROFESSIONAL ACCOUNT
If you have 40 or more products to sell, then you can choose this plan. It incorporates a month-to-month subscription of $39.99 but you can also enjoy a waiver of $0.99 attached with selling each product in an Individual Account.
In this account, you will have premium tools for the management of your inventory and you can easily create a new product listing. You will have the right to sell any kind of product whether it belongs to the restricted category or not and you can decide the shipping charges of your product yourself.
Both of these accounts have their specific pros and cons but if you are a startup I will recommend you to go with an Individual Account and whenever you expand your business you can convert your Account into Professional Account Otherwise Professional Account has its privileges and if you are planning to launch a whole list of product you can go with it.
