What should a first time Amazon seller know?
The decision for a business owner to begin selling their products on Amazon is one that they are probably equally nervous and excited about. Selling your products on Amazon can result in a huge jump in revenue for your company and bring you the success you had hoped for at the inception of your company. If this is an option that you are considering, you should know as much information as possible about Amazon selling before going through with the process.
First things first, you should have an idea of what category you would like to sell your products in. Amazon’s categories for selling include anything from handmade goods to professional services or even wine and fine art. Some of these categories have restrictions on them that you should be aware of. For example, only professional sellers (as opposed to individual sellers) can sell automotive products and they must be approved by Amazon before being sold. On the other hand, items such as outdoor sports gear don’t need to go through an approval process.
You will also need to determine whether you are going to start as a Professional Seller or an Individual Seller. Amazon has guidelines that will determine which type of seller you will be considered. Also, you should know that these two categories pay different monthly fees to maintain their status as an Amazon seller. You will be considered an Individual Seller if you plan on only selling less than 40 items per month. The fees associated are $0.99 per sale, along with a few other selling fees. Professional sellers are those who plan on selling upwards of 40 items each month and will face a monthly fee of $39.99, as well as a few other fees. If you are considering selling your products on Amazon, you should speak with an experienced Amazon Seller CPA who can assist you in turning this idea into a reality.
If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation.