The type and volume of products you sell, plus your sales target for a specific time frame, are factors you need to consider before you sign up to an Amazon selling account.
Amazon has two different types of account, namely Sell a little (Basic) and Sell a lot (PRO).
This tutorial shows you what comes with each of these Amazon account types, how much each costs and why it’s cheaper to sell on Amazon than it is on eBay.
What is the Basic (Sell a little) Account?
The Sell a little or Basic account on Amazon seems to be the practical choice if you only plan to sell less than 35 products a month.
It will cost £0.75 per-item fee, which is VAT-exclusive, for each product that you sell.
It’s worth noting that if you are a VAT-registered business in the UK or in a European country, just enter your VAT number into Amazon to reduce the VAT rate from your Amazon fees.
The percentage of sale Amazon gets from every sale you make is based on the product category the item you sold belongs to.
With this account, you get to use Fulfillment by Amazon (FBA), which means you can send your products to the Company’s warehouse and leave them to pick, pack and ship these products to your customers.
In addition to that, this type of account allows you to list your products in 20 categories.
What is the Pro (Sell a lot) Account?
The Sell a lot or PRO account is a monthly subscription that costs £25.00 per month VAT exclusive. With this amount, you can sell as many products as you like on Amazon.
Like the Basic account, Amazon will charge you a percentage of sale for every item that you sell.
It’s also FBA-enabled and you can sell in 25 product categories on Amazon.
However, the PRO account offers extra perks that you won’t get from the Basic account.
You can load and track inventory in bulk and you are eligible for the featured seller status and the Jumpstart catalogue service likewise.
The list below shows the price of the PRO account for each of the Amazon sites.
Monthly Cost of the “Sell a lot PRO”
How Much Does Amazon Get from Your Sale?
Every time you make a sale on Amazon, they will deduct a percentage from it.
That percentage of sale vary depending on the category your product belongs to and the Amazon site that you’re selling on.
The table below shows different product categories on Amazon and the corresponding percentage of sale that the Company charges sellers in the UK, USA, Canada and Germany.
|Accessories for Amazon devices||35%||25%||25%||35%|
|Books, CDs & DVDs||15%||15%||15%||15%|
|Car & Motorbike||15%||12%||12%||15%|
|DIY & Tools||12%||12%||12%||12%|
|Electronics Accessories||12%||15% or 8%||15%||12%|
|Large Appliances||7%||15% or 8%||–||7%|
|Musical Instruments & DJ||12%||15%||15%||12%|
|Toys & Games||15%||15%||15%||15%|
|Video Games Consoles||8%||8%||–||8%|
Comparing eBay and Amazons Percentage of Sale
If you glance at the table below, you’ll probably be quick to conclude that selling on eBay will save you more dough.
In reality, it’s the opposite because eBay’s percentage of sale does not include transaction fees yet; these are added separately.
Amazon, on the other hand, has included a payment processing fee in the percentage of sale that it charges sellers for each product they sell.
Taking that fact into consideration, it’s obvious that it’s way cheaper to sell on Amazon than it is on eBay.
|Accessories for Amazon devices||8%||35%|
|Books, CDs & DVDs||9%||15%|
|Car & Motorbike||8%||15%|
|DIY & Tools||11%||12%|
|Musical Instruments & DJ||10%||12%|
|Toys & Games||10%||15%|
|Video Games Consoles||9%||8%|
How to Access Restricted Categories
If the products you are selling fall into any of the categories below, you need to sign up to Amazon’s PRO account and get approved before you can go on and sell them.
Amazon does this to ensure their customers that only legit business owners sell in these categories.
Amazon Account Type
|Beauty||Pro Account only|
|Clothing||Pro Account only|
|Electronics Accessories||Pro Account only|
|Grocery||Pro Account only|
|Jewellery||Pro Account only|
|Watches||Pro Account only|
|Health & Personal Care||Pro Account only|
|Personal Care Appliances||Pro Account only|
This tutorial has extensively explained what you can get from Amazon’s Basic and PRO selling accounts.
If you wish to explore Amazon’s account types further, click on the link below that corresponds to your country.