Beginner’s Guide: How to Sell on Amazon

6th July 2021

Many novice entrepreneurs who have decided to sell goods on Amazon are stopped by not having information about the procedure for paying taxes and the principles of the platform. SageSeller Company will provide you with the entire detailed tax information Amazon seller needs to know.

If you are researching Amazon tax information, remember this: the taxation of sellers on the marketplace depends on the country of residence. Status plays an important role — whether you are registered as a legal entity or an individual.

Taxpayer Memo

Once you understand all the intricacies of seller taxation, you will understand that everything is quite simple. The main thing is to study the rules in advance, avoiding unpleasant surprises in the form of penalties.

The process of paying taxes for sellers who have partnered with Amazon under the FBA program is much easier. It allows you to reduce the cost of inventory management and VAT.

Important Pros of Doing Business on Amazon

Amazon is the world’s largest marketplace for goods and services, where anyone can become a buyer or seller. Amazon is headquartered in the United States, the main audience is Americans, but you can sell even from Costa Rica or Antigua and Barbuda. The main thing is to have access to the Internet.

Of course, you should understand that Amazon is a highly competitive online platform, and you need start-up capital to do business there. No less important is one more point — strict rules (Selling Policies and Seller Code of Conduct), for violation of which, your account can be blocked.

But having overcome all these difficulties, you can start making big profits. Your income can easily reach $5,000, $10,000, and even $25,000 per month; the main thing is to use the features of this platform correctly:

  •  The uniqueness of Amazon as a brand. It is the most popular resource for online shopping.
  •  Hot audience. The marketplace is visited by people who want to buy. The average conversion is about 13%.
  •  Amazon performs many tasks for you. By automating many processes, doing business is easier. Automation includes contextual advertising, free promotions in the publishing business, a complex rating system, an FBA program, and much more.
  •  Remote control. Do you want to trade on the site from anywhere in the world? Not a problem! Focusing on US time and having Internet access, you can do business from anywhere.

Steps to Start a Business

If you are not afraid of possible difficulties, and you decide to start earning a lot, you make the right decision. But where do you start?

  1.  Do not save time familiarizing yourself with the rules of working on Amazon. You must understand how to create an account, choose the sales scheme that suits you, and know the ways to withdraw money. At the moment, two payment systems are available to you — Payoneer and TransferWise. SageSeller experts advise you to carefully read the principles of these systems and register in the chosen payment system before creating an account on Amazon.
  2.  Decide which product you will “present” to Amazon. The marketplace offers products in thirty categories.
  3.  Buy the selected product (start with samples to assess the quality of the product).
  4.  Deliver it to warehouses: Amazon (if you are going to work according to the FBA scheme) or other warehouses (if you are going to work according to the FBM scheme).
  5.  Register a product and complete a listing.

After these important and slightly time-consuming steps, you can start selling on Amazon while promoting and developing it with SageSeller’s tools to help you grow your business faster and more confidently.