Have you finally decided to create an Amazon Seller Account? Do you have questions about Amazon that need answers? Excited to start selling on Amazon and becoming successful, but don’t know where to start?
No worries! We’re here to help you out!
In this Got Suspended Clients article, we are going to walk you through the process of setting up an Amazon seller account, what risks it has, and talk about a couple of questions, which you might have buzzing in your brain.
So, let’s get going!
If you plan to sell on Amazon, you probably already know that you have to set up an account first. However, what you might not know, is that opening a brand new Amazon seller account comes with risks. Why? Because if you’re not careful with where and on which device you open the account on, you’ll be hit with what we call an Amazon suspension. Let us explain why:
- If you open your Amazon account in a public location, your Amazon account might get linked to the account of another seller (or even worse, more Amazon sellers!) who is located in the same place, and your accounts will be linked. Ouch!
- If you open your new Amazon seller account on the same computer that another Amazon seller opened an account on, the same thing will happen. Amazon’s algorithm will link and suspend you. Why? Because Amazon does not like each seller to have multiple Amazon accounts on its platform.
- If you’ve had another Amazon account previously, and use the same device to create a new one, we are getting redundant! Same thing will happen.
- You will get your Amazon suspended if your information does not match, or is the same with someone else’s. Yes, even before you make a single sale!
But don’t get discouraged!
Even though creating a new Amazon seller account comes with its risks, it’s actually not that hard to create one if you know what you are doing. So, let’s get to the bottom of it, shall we?
Step 1: Pick A Selling Plan
There are two types of Amazon seller accounts, and the primary difference between them is the pricing, but let’s leave that for later.
First off, you’ve got the Individual seller account. This type of seller account is free. The individual seller account has some limitations (which is why it’s free!). For example, you can’t manage inventory using feeds, spreadsheets, or reports, and you can’t manage orders with order reports. Also, you can’t use Amazon Marketplace Web Services. Amazon sellers who up for the Individual Seller account are also not eligible to place their listings in the Buy Box, which is a big deal on Amazon.
The individual account is a great option for newcomers to the platform who will not start selling products left and right when they create the account. You’d better not! Because even though this type of seller account is free, Amazon will collect $0.99 from each item you sell, and that’s just one fee!
Professional Seller Account
On the other hand, we have the professional seller account, which, as the name suggests, is a more refined type of Amazon seller account. The pricing is also different. For the type of account, Amazon requires you to pay $39.99 a month selling through its platform, instead of charging the $0.99 fee it charges individual seller accounts.
Here are the perks of a professional seller account on Amazon:
- You can manage orders using reports
- You can manage inventory using feeds and spreadsheets
- You can do promotions and gift services
- You are eligible for having your products in the Buy Box
- You can use Amazon’s automated tax calculation system
- You can access user permissions, and you can allow others to access your account
As you can see, it has a lot of advantages. If you plan on having relatively high sales on Amazon and want to become a professional when you sell on the platform, the professional seller account is the best fit for you. If you have high sales, the monthly fee should not be that big of a problem.
The good news is that after you’re done with the registration process and the account is actually created, you can switch between a professional and an individual account at any time with the same information, depending on your needs.
Once the registration process is gone and done, it’s time to focus on the next issue:
Selling on Amazon as FBA, or FBM?
As you know, Amazon has two order fulfillment models. The FBM, or fulfillment by Merchant (a fancy name for an Amazon seller) and FBA (fulfillment by Amazon). You can easily find this option on Amazon seller central.
Let’s talk about the risks of FBA and FBM, shall we?
FBM: Everything’s on the Amazon Seller
And by everything, we do mean everything! In Amazon FBM, you are the one handling the product prepping, packing, and shipping processes. Even though FBM is more cost effective, it is still risky. The reason for that is because if something happens to the products, or if customers are not happy with their orders, you’ll be the one taking the heat.
When customers complain, Amazon acts! And that comes in form of Amazon account suspension. You don’t want to deal with that, especially if you are a new seller on the platform!
FBA: What the Pros Choose
Almost any professional seller you talk to will tell you that they are using fulfillment by Amazon (FBA) to fulfill the products to sell on the platform. The reason for this is that Amazon FBA lets Amazon do the heavy lifting. The products go from your supplier either to an Amazon FBA prep center, or to Amazon’s warehouses, where Amazon takes care of the entire product packing and shipping process. Of course, all of this requires fees, but at least there is much less risk of suspension!
However, you can still run into trouble under Amazon FBA. For example, if you haven’t picked products which sell well, those products are going to sit in Amazon’s warehouses, and Amazon will charge fees and after fees for keeping them there. They might expire (if they are perishable products), which can be very financially draining for your business.
As you can see, there are various risks associated with Amazon businesses, from the type of seller account you pick, to choosing how to fulfill orders. However, this should not discourage you from selling on the platform. Even if you do het suspended, there are ways of getting your seller account reinstated. As for items that have been sitting in Amazon’s warehouses or are expired, there are solutions such as liquidation companies which are currently very popular among Amazon sellers. Like they say, if there’s a will, there’s a way! Amazon can be a very successful marketplace if everything is done by the book!
If you ever get your seller account suspended on Amazon, do not hesitate contacting us at Got Suspended Clients. With our proven track record, we can confidentially say that we can reinstate any seller account, and on top of that, we will teach you how to proceed with your business on Amazon in the safest possible way, whether you’re using fulfillment by Amazon, FBM, as a professional seller, or a newcomer!