Many people who want a business turn to Amazon to help them get started selling their products. Amazon is particularly useful to small businesses because it can improve a seller’s exposure/visibility, minimize the cost of launching a business and build credibility in the online marketplace. Here are some things to consider before becoming an Amazon seller.
Do I want to be an “individual” or a “professional” Amazon vendor?
The first thing that somebody who is registering with Amazon must consider is if they want to be an “Individual” or “Professional” seller. Individual Amazon vendors are not required to pay a monthly fee but must pay a listing fee of $0.99 for every item they sell. Professional Amazon vendors must pay $39.99 a month. Professional sellers pay no listing fee and have the ability to list products under multiple categories. Professional sellers have access to Amazon’s bulk listing tool. Upgraded access also makes is possible for sellers to offer special promotions and discounts on their products. Amazon recommends that a certified Amazon vendor who anticipates selling over forty a month should become a professional seller. People from outside the EU and US who wish to become professional sellers should register a company.
Does my business meet Amazon’s requirements?
Amazon requires that any new Amazon vendor must disclose the businesses’ name and address, tax identification information (EIN number) and a valid phone number. Amazon also requires that you provide an internationally chargeable credit card.
In our experience, Amazon is usually more demanding of Non-US and Non EU citizens. Amazon prefers companies to have a physical address (not a post office box), maintain a registered company in the US or EU, and also operate a business bank account in one of those jurisdictions. Amazon is usually more willing to conduct business with registered companies which maintain business bank accounts. Amazon knows that government regulations in the EU and US force banks to follow security compliance and due diligence protocols that eliminate potential fraudsters from the pool of businesses that they evaluate. This screening process reduces the number of fraud cases that Amazon is forced to deal with.
Small businesses looking to gain a foothold in the US market should look to see if their products are right for Amazon. If you require help obtaining a corporation, a tax id number (EIN), an address in the US or chargeable international credit card please contact Inc. Plan (USA)