The Time is now for international sellers

There has never been a better time for the international market to consider branching out to Amazon customers in America. The overall reach is immense, and Amazon needs the merchandise to stay competitive and satisfy its hungry clientele.
Non-U.S. based wholesale companies (non-residents and non-corporations) do not need resale certificates. However, international companies must be able to prove their Business to Business status; this can be accomplished by producing documentation from your country. Tax professionals based in the United States can advise as to the pros and cons of registering as a U.S. based business to help you make the best decision for your company.
While there are a few steps for non-citizens to take to sell on Amazon.com, it is a pretty clear-cut process.
  • You must sign up for an Amazon account.
  • Provide a credit card (i.e. Visa or Mastercard) that allows international charges.
  • Locate a local bank in your own country that accepts electronic transfers and supports ACH (Automated Clearing House). Or, handle all electronic transfers yourself by setting up a U.S. based bank account. Sellers will often choose this route to save money.
  • Provide your local address and phone number with the international prefix. Or, set up a U.S. based phone number.
  • Provide an Employer Identification Number (EIN), which is obtained by filling out the online form, 10-BEN, on the irs.gov website. An EIN is available to non-residents.
  • Hire a U.S. based tax professional who can advise which forms need to be filled out with the IRS to avoid problems down the road.
Whereas signing up for an Amazon account is fairly straightforward, now you must consider where to store and ship your inventory. Amazon FBA is highly recommended for all sellers, regardless of origin. With this option, you’re tasked simply with shipping your product to the Amazon Fulfillment Center. Please note that Amazon’s fees for any “prep required” items are steep. In the event that a supplier will not ship to Amazon, it is recommended that the company locate a prep center, such as Prime Zero Prep (located on the East Coast) or Prep It Pack It Ship It (located on the West Coast).
Returns are a necessary evil of the business, and impossible to avoid. In many cases, the merchandise can be resold, and Amazon is willing to make that determination if you select the appropriate setting in your Amazon account. For products that cannot be resold, consider donating them to a reputable U.S. charity that accepts the international merchandise. The process is easier and is potentially a tax write-off depending on your country’s tax laws. Another option is allowing Amazon to destroy the product. The charges are approximate $.10 per item, and the business won’t be charged a storage fee. Lastly, you can consider shipping the returned items to a returns center.
More than ever, the time is certainly now for international sellers.

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