How to sell on Amazon as an individual seller (successfully)

Amazon Individual accounts get a bad rap. Most guides treat them like training wheels. Something you use until you graduate to the “real” Professional plan. That’s completely wrong.

Individual seller accounts can also be strategic business choices. They work perfectly for certain types of sellers and specific business models. The key is understanding when they make sense and how to maximize their potential.

Amazon individual seller accounts

The Individual selling plan operates on a pay-per-sale model instead of a monthly subscription. You pay Amazon $0.99 each time you sell an item, plus the standard referral fees that all sellers pay.

This creates a fundamentally different cost structure than the Professional plan’s $39.99 monthly fee. 

Amazon designed Individual accounts for sellers who move fewer than 40 items per month, seasonal sellers, and those testing new products without committing to ongoing monthly costs.

Here’s the reality: about 60% of Amazon’s third-party sellers use Professional accounts, but Individual accounts still represent a significant portion of the seller base. Many successful sellers deliberately choose Individual accounts because the economics work better for their specific situation.

When to sign up as an Amazon individual seller

The math is straightforward. Individual accounts cost less than Professional accounts when you sell fewer than 41 items monthly ($40.59 in per-item fees versus $39.99 monthly). Though the calculation gets more complex when you factor in the advanced tools Professional accounts provide.

Seasonal sellers often thrive with Individual accounts. If you sell holiday decorations, summer gear, or back-to-school items during specific months, why pay $39.99 year-round? Pay only during your selling seasons.

Product testers and new sellers benefit from the lower barrier to entry. Testing product viability without monthly overhead lets you validate ideas before committing to larger investments.

Hobbyist sellers and liquidators clearing out personal items find Individual accounts perfect. You’re not building a scalable business—you’re moving specific inventory with minimal ongoing costs.

Single-product specialists running simple business models can succeed with Individual accounts. If you’re selling one product line without needing bulk listing tools or advanced advertising, Individual accounts provide everything necessary.

Cash flow matters for new businesses, too. Individual accounts let you start selling without monthly fixed costs eating into your budget before you generate revenue.

How to create an Amazon individual seller account

Setting up an Individual seller account follows the same process as any Amazon seller account. You’ll need a valid email address, phone number, tax information, and bank account details.

The key difference happens during plan selection. Choose “Individual” instead of “Professional” when prompted about selling plans. You can always switch later if your business grows.

For a complete walkthrough of the account creation process, including required documents and common setup mistakes to avoid, check out our detailed guide on creating an Amazon seller account.

Advantages and disadvantages of choosing the individual seller account

Advantages

• No monthly fees create immediate cash flow benefits. You only pay Amazon when you actually sell something, making it easier to manage expenses during slow months or when testing new products.
• Perfect for testing product viability without ongoing financial commitment. Launch a product, see how it performs, and decide whether to scale up—all without monthly overhead eating into your margins.
• Lower barrier to entry means you can start selling immediately. No need to justify $39.99 monthly before you’ve proven your business concept or generated any revenue.
• Simplified account management eliminates many complex features you might not need. Fewer tools mean less overwhelm and easier day-to-day operations.

Disadvantages

• Limited bulk listing capabilities slow down catalog management. You’ll create listings one at a time instead of uploading spreadsheets with hundreds of products simultaneously.
• No access to advanced advertising tools restricts your marketing options. Professional sellers can create sophisticated ad campaigns while Individual sellers rely primarily on organic visibility.
• Restricted promotional options limit your ability to run deals, coupons, and other sales-driving promotions that Professional sellers use to boost visibility and sales.
• Higher per-item fees at scale make Individual accounts expensive once you consistently sell more than 40 items monthly. The economics flip quickly as volume increases.

What are Amazon’s individual seller account fees

As we mentioned a while ago, individual sellers pay $0.99 per item sold plus referral fees ranging from 8% to 15%, depending on product category. Amazon also determines your shipping rates and keeps those fees.

Books, music, and video carry 15% referral fees. Electronics typically charge 8% referral fees. Most other categories fall somewhere between 10-15%.

Hidden costs include return processing fees, high-volume listing fees if you exceed certain thresholds, and potential long-term storage fees for FBA inventory.

The critical calculation: if you sell 41 or more items monthly, you’ll pay more in per-item fees ($40.59+) than a Professional account costs ($39.99). This makes Professional accounts more economical at higher volumes.

For detailed fee breakdowns and category-specific costs, see our comprehensive guide to Amazon seller fees.

What are the best options for order fulfillment?

Fulfillment by Amazon (FBA) works perfectly with Individual accounts. Amazon handles storage, packing, shipping, and customer service. You send inventory to Amazon warehouses, and they handle the rest when orders come in.

Individual sellers can use FBA for all the same benefits Professional sellers enjoy: Prime eligibility, faster shipping options, and Amazon’s customer service handling returns and issues.

Merchant Fulfilled Network (MFN) means you handle fulfillment yourself. Pack and ship orders from your home, office, or warehouse. This gives you more control but requires more time and effort per order.

Hybrid fulfillment approaches combine both methods strategically. Use FBA for fast-moving, lightweight items that benefit from Prime shipping. Use MFN for oversized items, fragile products, or anything with special handling requirements.

Most Individual sellers start with MFN to minimize upfront costs, then gradually move popular items to FBA as sales volume justifies the investment.

For detailed comparisons of fulfillment methods, check out our guides to FBA shipping and MFN strategies.

Managing your individual seller operations

Order management becomes your daily routine. Amazon sends “Sold, Ship Now” emails for each order. You’ll also check the Manage Orders page in Seller Central to print shipping labels, confirm shipments, and track order status.

Inventory tracking requires more manual effort without bulk tools. Use the Manage Inventory page to update quantities, adjust prices, and monitor listing performance. Many Individual sellers track inventory in simple spreadsheets.

Customer service demands quick responses to maintain good seller metrics. Amazon requires responses within 24 hours for buyer messages. Keep response templates ready for common questions about shipping, returns, and product details.

Performance metrics matter just as much for Individual sellers. Monitor your:

• Order defect rate (target: under 1%)
• Late shipment rate (target: under 4%)
• Cancellation rate (target: under 2.5%)

Poor metrics can lead to account suspension regardless of the selling plan.

Basic Seller Central tools provide everything Individual sellers need for day-to-day operations. The Reports section shows sales data, payments, and fee summaries. The Help section answers common questions and policy updates.

For deeper dives into performance optimization and Seller Central navigation, explore our guides to Amazon seller metrics and Seller Central basics.

When and how to switch from an individual to a professional account

The 40+ items monthly threshold triggers the financial tipping point. Once you consistently sell more than 40 items monthly, Professional accounts cost less than Individual per-item fees.

Advanced features signal upgrade time even before hitting volume thresholds. Need bulk listing tools? Want to run advertising campaigns? Ready for detailed analytics and reporting? These require Professional accounts.

Switching takes minutes through your Account Settings. Log in to Seller Central, navigate to Account Info, find “Manage Your Services,” and select Selling on Amazon. Choose Professional and apply changes.

Billing transitions happen immediately. Your Professional subscription starts right away, and you’ll see new tools appear in your account within hours. Some billing features take up to two days to fully activate.

Most things stay the same. Your existing listings, feedback, metrics, and inventory remain unchanged. You simply gain access to new tools and different fee structures.

Important consideration: Some services require Professional accounts. If you’re enrolled in programs like Brand Registry or certain advertising tools, you can’t downgrade to Individual without first leaving those programs.

Grow your Amazon business in no time

Individual seller accounts aren’t limitations—they’re strategic choices that work perfectly for specific business models. Seasonal sellers, product testers, hobbyists, and single-product specialists can build successful, profitable businesses without ever needing Professional account features.

The key is understanding your business model and matching it to the right account type. Start with Individual if it fits your current situation. You can always upgrade when volume or feature needs justify the change.

Most successful sellers focus on fundamentals first: great products, optimized listings, excellent customer service, and smart pricing. These matter more than account type for building a sustainable Amazon business.

Ready to scale beyond Individual account limitations? Try Seller 365 free for up to 14 days and get the complete toolkit that sellers use to source products, manage inventory, optimize pricing, and maximize profits. When you’re ready to grow, we’ll help you get there faster.