Amazon Business vs Seller Account: Which is Best for You?

Amazon is now the most significant global online marketplace, selling everything under the sun and is open to anyone looking to take their business to the next level. The platform is convenient, so millions buy and sell products daily, making it the go-to place.

Amazon offers tremendous opportunities for sellers to engage a global audience, something a local business can never achieve.

When creating an Amazon account, you’ll come across Amazon business accounts and Amazon seller accounts. Both accounts are different from a typical Amazon account that shoppers use.

You may find it challenging to differentiate the accounts Amazon presents you, especially Amazon business vs seller account: which is best for you? There is no need to struggle to distinguish them since we got you. We’ll explain what each account is, what it’s used for, and which is preferable for business owners.

Understanding Amazon Business Accounts

Enterprises use an Amazon business account to purchase goods in bulk at subsidised prices. You can also monitor spending through an Amazon business account and get customised pricing.

Only some people are eligible for an Amazon Business account; whoever is eligible must have a valid tax ID number. With a valid tax number, you can create an Amazon business account and purchase products at discounted prices.

An Amazon business account differs from the usual Amazon account in various ways.

1. The account offers discounts on many products when purchased in bulk. Besides the discounts, the prices are also lower than the retail prices on the Amazon website.
2. Entrepreneurs can also use an Amazon business account to buy from other businesses on Amazon. You need a business account to sell products from different companies.
3. A business account is what you use to manage your company’s spending on Amazon: set spending limits, monitor purchases, and get customised pricing according to your company’s buying mannerisms.

Amazon Business vs Seller Account

As the titles suggest, the difference between these two accounts is clear: an Amazon business account is for buying, whereas a seller account is for selling. Now that you know the main differences don’t leave yet. We have more information for you about the two accounts.

Business and selling accounts are unique from regular Amazon accounts, such as the ones you use for personal shopping. Let’s look at each account in-depth to help you understand what suits you.

What is Amazon Business Accounts?

As the name dictates, an Amazon business account is used to buy products for your business. The account comes with several benefits depending on your business type.

You get many benefits when you create an account for a business rather than an individual. Similar to the regular Amazon accounts, there are two Amazon business accounts:

• A regular business account
• A prime business account

Features of a Regular Business Account

A regular Amazon business account is a free package accessible to most businesses, and it comes with multiple features you can’t get with personal accounts. The features are:

1. Business-only prices - You can access special business-only prices on particular products when ordered in bulk.
2. Single sign-on - Unlike a personal Amazon account you only use once a month, a business account needs constant attention. For convenience, set up a Single Sign-On (SSO) to allow you to log in with a single tap.
3. Integrated workflows - To prevent you from overspending or making unauthorised purchases, the feature allows you to set approvals and restrict spending in adherence to your company rules.
4. Account management - A business account can be overwhelming, and you may need more than one person on the job. You can add multiple users to your business account to help you manage account permissions.
5. Amazon Tax Exemption Program - Purchasing products for a business can accrue several tax exemptions. Amazon has a Tax Exemption Program that you can apply to all eligible purchases.
6. Convenient delivery options - From your account, you can decide how and where your business purchases will be delivered.

Amazon Business Prime Accounts

Like the regular Amazon Prime accounts, there are also Amazon Business Prime accounts, which are paid and have additional features.

Amazon Business Prime accounts annual price range is $69 to $10,099. The price is determined by the features you need for your business. These are the key Amazon Business Prime account features:

1. Advanced Business Analytics - The feature lets businesses monitor spending and get insights into buying patterns. The data helps companies to make better procurement decisions. An Amazon business account gives businesses better spending insights than a regular business account.
2. Guided Buying - Businesses get recommendations on the products they might need. As a result, businesses save time and finances when procuring goods and services.
3. Free Shipping - You have a two-day shipping offer anytime you purchase through an Amazon Prime account. Goods are delivered fast without incurring extra charges.
4. Progressive Discounts - Businesses that use Amazon Prime accounts can access progressive discounts on products they purchase in bulk. From the discounts, businesses save money when procuring bulk goods and only rise when buying the same products.
5. Amazon WorkDocs - Purchasing in bulk for a business can involve a lot of paperwork. However, Amazon Business Prime members can access Amazon WorkDocs, where employees can work together to update purchase documents.

Understanding Amazon Seller Accounts

Besides Amazon allowing businesses to purchase goods for sale in bulk, the platform also gives entrepreneurs a market to sell their products. That’s where the Amazon seller account comes into play.

To open a seller account, you must have a purchasing account: regular business or Business Prime to connect to.

The same goes for Amazon business accounts. There are two seller accounts you can choose for your company. Here’s an in-depth look into these accounts to help determine which is best for your business.

• Individual seller account
• Professional seller account (pro seller account)

Individual Seller Account

The simplest way to sell anything on Amazon is through an Amazon individual seller account. These accounts are not only for businesses but can also be used by individuals to sell several old items they don’t use. Small businesses can use an individual seller account if they don’t want to sell for the long term. Although individual seller accounts are cheaper, they lack the most valuable professional tools.

If you aren’t interested in trading on Amazon, an Amazon individual account is ideal for testing the waters of online business. You can experience what selling on Amazon feels like without making a significant financial commitment to go for the pay-per-sale system on individual accounts.

Features of an Individual Seller Accounts

Regardless of what you want to sell on Amazon, an individual seller account is what you need. So, what features come with a particular seller account? They include:

1. A per-item sale fee is set up on individual seller accounts, which means you only pay a fee after a sale, which is $0.99.
2. Product page creation - is an essential feature that allows individual seller account holders to create pages in the Amazon catalogue. The pages contain all the products you upload to your inventory, including images and descriptions.
3. Listing deactivation - when you cannot attend to your account for some time, you can set your account to “inactive”. The feature prevents customers from buying when you can’t send the product to them.
4. Shipping assistance - With each sale, Amazon will notify you “Sold, Ship Now” via email. The email details the shipping process from the platform to the customer and provides a shipping label and packing slip that you should print out.
5. Amazon-set shipping rates - Amazon automatically sets shipping rates for individual seller accounts.
6. Secure transfers - Amazon doesn’t require you to provide third-party payment methods. Why? They directly transfer the profits to a bank of your choice using Amazon Pay, a secure transaction tool.

Professional Seller Account (Pro Seller Accounts)

Businesses that want to sell on Amazon in large quantities need a Pro seller account. The account is better than an individual seller account as the fee rises as the sales on your account grow.

You subscribe for a professional seller account @ $39.99, allowing you to make unlimited sales. Besides the subscription, you’re charged a per-item sale fee, which varies as per the product category. Here are the features that come with a professional seller account:

1. Unlimited product listings - You can list unlimited products with a pro seller account on Amazon. A business with many products to sell can list products in different categories.
2. Dedicated customer support - Amazon sellers enjoy dedicated customer support using the professional seller account. They can get in touch with Amazon customer support whenever issues arise.
3. Business reporting - The feature lets you monitor the sales and performance of your business.
4. Buy Box eligibility - The BUY Box Amazon feature lets buyers purchase products from a particular seller.
5. Inventory and order management - You can manage your product inventory, customer orders, feeds, and reports on custom spreadsheets.
6. Amazon Marketplace Web Service - enables you to perform several API functions on your account, such as uploading feeds and receiving reports.
7. Seller-set shipping rates - Business owners get to set their price catalogue instead of Amazon. The setup gives you more control over the costs of your products.
8. Promotions and gift services - The account allows you to run promotions for your products, like Amazon pay-per-click (PPC) ads.
9. Tax calculation and application - You calculate sales tax and add it to your orders.

A professional seller account is ideal for any serious seller on Amazon. Although you must pay a subscription fee for the pro seller account, it has several benefits. The individual and pro seller accounts use a central login to manage them.

Amazon Business vs Seller Account: Which is Best for You

Now that you understand Amazon's business and seller accounts, it’s time to decide what your business needs. The best question might be lingering in your mind.

You don't need a seller account if you’re not interested in selling on Amazon. In this scenario, you should opt for a business account.

However, you need both accounts to sell on the platform since you need a business account to open a seller account.

As for which plans to get for each account, it mainly depends on the specific needs of your business. Compare the fees charged and weigh them against your business budget. Consider getting a pro seller account to sell unlimited products unless your business is small.

Frequently Asked Questions

Can I upgrade to an Amazon business account?

You can upgrade to an Amazon business account to enjoy more features you can’t have with personal accounts. Some products are discounted at “business price only”. Only a business account can access them, meaning you save money.

Can I change my Amazon business account to personal?

You can change your Amazon business account to personal if you stop trading. Once you’re not selling anymore, your business account will be closed and converted to an individual account.

Can Amazon hold my money?

Amazon can hold your funds for up to three months (90 days) when a seller is suspected of fraud or broken Amazon rules. The platform can also keep your payment for over 14 days as an account-level reserve.

Conclusion

Your business needs will dictate the Amazon accounts you need. As a beginner, an individual seller account is ideal to help you experience what it feels like to trade on Amazon, the most potent marketplace in the world. However, anyone who wants to sell large quantities on the platform needs a professional seller account.

Once your Amazon accounts are set up, you must try to market your business.

Amazon business accounts have many benefits, like subsidised prices and free shipping, meaning you don’t have to spend more after buying products.

Now, enjoy trading on Amazon after creating the correct account for your business.

If you need any help with the best Amazon account for you, kindly contact one of our Incorpuk experts here.