Amazon Seller

An Amazon Seller is a person or company that is permitted to sell goods on Amazon.com while adhering to U.S. marketplace regulations, taxes, and compliance requirements.

What does it mean to be an Amazon Seller in the USA?

An Amazon seller in the United States runs a personal or corporate account that offers and sells goods on Amazon.com, the company's U.S. marketplace. To reach American consumers, sellers leverage Amazon's vast customer base, robust fulfillment infrastructure, and extensive advertising resources. Actively managing pricing, marketing, logistics, and compliance—treating the account like a legitimate operational business rather than a source of passive income—is essential to success.

How do I start the registration process?

To register for a Seller Central account, go to sell.amazon.com. To confirm your identity and business status, you will need to present certain documentation:

• Identity: A legitimate ID from the government, such as a driver's license or passport.

• Payment: Methods include a bank account for payouts and a charged credit card for fees.

• Tax Information: completion of the U.S. Tax Identity Interview (Form W-8 for foreign sellers; Form W-9 for US citizens).

Do I need a business license or permit?

In general, there isn't a special "Amazon license." But:

• Local Level: A normal business license might be necessary in your state or city.

• Restricted Categories: To "ungate" food, topicals, or medical devices on the platform, certain FDA paperwork and invoices are frequently needed.

What documents are required to sell on Amazon USA?

Key documents required to sell on Amazon USA — based on Amazon’s registration and identity verification process:

1. Government-Issued Photo ID, such as a passport, driver’s license, or national ID, to confirm your identity.

2. Proof of Address - A recent bank statement or credit card statement showing your name and address that matches.

3. Business Identification Documents - If you’re registering as a company rather than an individual

• Articles of incorporation

• Business license

• Certificate of formation or equivalent

4. Billing & Payment Info - A chargeable credit card and Bank account details for receiving payouts.

5. U.S. Tax Information - U.S. sellers: SSN or EIN and International sellers: W-8BEN / W-8BEN-E.

6. Additional Documents (If Requested) - Amazon may ask for further documentation depending on your business type and verification needs

How should I visualize this business model?

Consider the marketplace as a huge mall:

• Professional Plan: You pay a set rent to gain access to premium foot traffic and signage, just like when you rent a permanent storefront.

• Individual Plan: You only pay a tiny cost when you actually complete a transaction, much like when you set up a temporary pop-up table.

• Fulfillment by Amazon, or FBA, is similar to employing employees from the mall to stock your shelves and deliver goods to customers.

• Fulfillment by Merchant, or FBM, is similar to personally delivering the products to the consumer at the door. 

What are the fulfillment methods (FBA vs. FBM)?

You have to decide who will manage your orders' logistics:

• Fulfillment by Amazon (FBA): Shipping inventory to Amazon's facilities, and they take care of client service, packing, shipping, and storage. Your purchases are now qualified for Prime Shipping.

• Fulfillment by Merchant (FBM): You list the item on Amazon but handle inventory storage. You pack and send the goods straight to the consumer after a sale.

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How do Amazon USA sellers get paid?

Sellers on Amazon USA receive payment via prearranged disbursements that are transferred straight into their bank accounts. After deducting selling fees, refunds, and reserves from customer payments, Amazon releases the leftover amount—usually every 14 days. While Amazon checks the health and compliance of its accounts, new merchants may have to wait longer.

How much commission does the platform take on sales?

The Referral Fee, which is essentially a commission paid for "referring" a buyer to your product, is the main factor that determines this.

Rate: Usually between 8% and 15% of the entire sales price.

For instance, consumer electronics are normally subject to an 8% tax, whereas home products and books are frequently subject to a 15% fee.

Do I need an LLC to sell on Amazon USA? (In a Box)

• US citizens: No. Using your Social Security number, you can begin as a sole proprietor. To safeguard personal assets and take advantage of tax advantages, it is advised to later incorporate an LLC.

• Non-Residents: Creating a US LLC is strongly advised in order to obtain an EIN (Employer Identification Number) and streamline banking and tax compliance, even if it is not strictly required to open the account.