#339 How to launch on Amazon USA (Sales Tax, prep centre, launch method) (Q & A Tuesday) - a podcast by Michael Veazey

How to Launch on Amazon USA for UK Amazon sellers

"I am planning to launch my product on Amazon.com in the coming months, in connection with this I have a few queries…"

Answers by Ashley Pearce (10K Collective mastermind member and $1 million per year Amazon sellers) and Michael Veazey, host of Amazing FBA podcast.

1. Is there a sales tax levied once turnover reaches a certain level etc on sales made on Amazon.com?, I have read this is charged on a state by state basis, therefore I assume Amazon calculates this for sellers (who use FBA) and sends an invoice each month? 

Ashley

Answer: oh by gosh no. Mixed answers on how to deal with this one. Be prepared to accept you’re going to take on some level of financial liability and account for it. Listen out also to Michael Veazey’s new podcast - the 10k collective podcast, he’s got some guests coming up who give you the 411

Michael Veazey

 You're lucky Dan to be getting a nice long reply from a 7-figure Amazon seller who is also a very sharp cookie...so I have a few things to add

For what it's worth: 

Sales tax is an enormously disputed area right now. It is nothing like as simple as your Q implies, I'm afraid. 

However, We do indeed have new 10K Collective podcast episodes coming out on this topic, starting on 30 July with Paul Rafelson (who was in house counsel on tax for Microsoft and GE among others, ie a VERY big hitter in tax law in America). 

Paul's view is very clear CAVEAT: I am clearly not a lawyer and this can only be the most general advice. It is not a substitute for individual legal advice. 

Broadly speaking: do not register for sales tax as an individual seller or as a small business. Period.

Amazon is already being required to collect and remit sales tax by some states (eg NY) and is going to be made to do so by other major states by the autumn of 2019 (eg CA). To get the detail, listen to the upcoming podcast and/or read the show notes:  10kcollective.com.



US Prep centres for Amazon sellers

2. Can anyone recommend any US based prep centres who can receive my shipments and forward onto Amazon? Is there certain states which are more favourable to choose for a prep centre to be located in?

Ashley

Are you looking for a prep centre or a forwarder?

I send direct from China, through a US provider who then just forwards to Amazon directly - Flexport.

They also have a great onboarding process which will help you make sure you get reasonable warehouse locations for your deliveries by playing a sensible game when setting up shipments. Saving you $thousands

Michael

Flexport is indeed wonderful but they generally deal in serious volumes ie several pallets up to containers. 

If you're looking to send say 20-25 cartons (so not yet at the palletized level), you might be looking for something as simple as FBA Inspection.

I've used them several times and they generally know their business. Not absolutely perfect (eg they have a facility quite a distance from LAX airport/Port of LA) but at least it's near to the main port that most goods from China come into - either by air or sea. Just google them.

EZPrep is also similar - possibly a bit pricier but maybe better located relative to LAX/Port of LA.  I've not used them personally, but have heard from seller friends that they are good. 

Further episodes of Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners, and other e-commerce sellers and digital entrepreneurs.

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