Can I sell on Amazon as an individual?

Can you sell on Amazon as an individual, without a formal business entity to represent you? The simple answer is, yes, you can!  

Amazon isn’t only considered the most popular retail website in the U.S., it’s also a global marketplace that’s rapidly expanding. The site averages a whopping 183 million unique monthly visitors, putting it way ahead of eBay, Walmart, and other retail giants.1 So establishing an online seller account on Amazon is a no-brainer, and it’s never been easier.
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The perks of selling as an individual

Amazon offers two plans for those who wish to sell on the Marketplace: Individual and Professional. An Individual account is best for sellers operating on a smaller scale, such as those selling less than 40 items per month.   

This system is a basic pay-as-you-go process that makes it easy to list inventory and manage orders. And you won’t have to pay the monthly subscription fee that comes with a Professional account.   

When you sign up for an Individual Seller account:

  • Listings can be created for free.
  • You can only create one listing at a time.
  • You can sell in over 20 open categories.

Prepare to pay the following fees:

  • A fixed per item fee on every item sold.  
  • A referral fee, which is a percentage of every sale. This fee varies by category, but many categories also have a minimum referral fee, so you’ll be charged whichever is greater.
  • When you sell a product from a Media category, such as DVDs, music, and books, you’ll be charged a closing fee for each item sold. 

To sign up for an Individual Amazon Seller account:

  1. Visit Amazon.com. Click on “Sell on Amazon” under “Make Money with Us” to visit the Amazon Services page.
  2. Click on “Start Selling” and follow the prompts to create an Individual Seller account.
  3. To complete the registration, provide required details, such as contact information, credit card, billing address, phone number, and tax identity information. 
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Selling internationally

After setting up your Individual Seller account, you can easily tweak your settings so you can sell your products internationally too. But to be even savvier, consider signing up for an OFX Online Seller account to transfer your profits from international sales. By doing so, you could save up to 75% on margins and transaction fees.*

Overall, Amazon offers an alternative to those who wish to sell online but don’t want to set up their own e-commerce website, and establishing an Individual account is a great way to get your feet wet when it comes to running an online business.

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16.  Quoted savings are not indicative of future savings. Occasionally, third-party banks may deduct a fee from your transfer before paying your recipient. This fee may vary and OFX receives no portion of it.

Sources:

  1. https://www.statista.com/statistics/271450/monthly-unique-visitors-to-us-retail-websites/
  2.  https://www.amazon.com/gp/help/customer/display.html?nodeId=200306550
  3.  https://services.amazon.com/selling/faq.htm
  4.  https://sellercentral.amazon.com/gp/help/200336920/ref=id_200336920_cont_201535680