How to pay zero taxes selling on Amazon

How to pay zero taxes selling on Amazon

Amazon is among the most used selling platforms on the planet. In practice, Amazon could be defined as a sort of gigantic virtual window where users from all over the world can make their own purchases every day, choosing from this vast choice of enormous virtual shops.

From a structural point of view, every marketplace on Amazon refers to a precise nation, which is why, for example, Amazon.fr is the marketplace for France, Amazon.it is for Italy, and so forth. From a general point of view, Amazon is an agora, where supply and demand can happily get together.

There are obviously other platforms besides Amazon where you can use the same selling system.

How can I sell online?

Undoubtedly, online selling is fascinating and, at the same time, makes it much easier to reach optimal results. It’s no coincidence that, according to recent statistics, more than forty percent of web users around the world buy online products. So, the option of being able to also sell their own products online is considered more and more as a great solution for exercising their own activity.

However, even though interest in this option has grown considerably, many users still don’t know how to initiate an online sales activity. Essentially, online selling encompasses two faces of the same coin, or rather, in understanding how to sell online you’ll be facing both the technical as well as the bureaucratic aspects.

In the technical aspect, elements such as, for example, selling techniques are included; in the bureaucratic area, questions tied to legal, administrative and tax aspects are included. One of the best solutions that every user can easily turn to for getting around the multiple technical aspects inherent to online selling, is the one offered  by Amazon, the number one in online selling.

There are two specific types of vendors on Amazon. The first is the Individual Seller, who doesn’t need to use Amazon warehouse and inventory services. The other, instead, is the Pro Seller who need warehouse and inventory control services, and so accesses the instruments for control made available by Amazon for making consultations, report and whatever else against payment of the fixed monthly fee of $39.99.

Instead, it should be remembered that, regarding bureaucratic, legal and fiscal questions concerning commerce of electronics, they are the same rules as in traditional commerce. In practice, this means that anyone deciding to sell online will necessarily have to complete the same steps and procedures that are required for traditional commerce. 

Therefore, to conclude, you will need a vendor’s license and fulfil the normal practice communications, all of which depend on your country of residence. Don’t be afraid and continue reading.

What is Amazon, the pearl of electronic commerce?

Headquartered in Washington State, in Seattle to be precise, Amazon is considered to be the largest e-commerce business, the most important Internet company in the world.

Every vendor who proves to be registered, can sell his own products on Amazon, whatever it is, as long as it is in the list of products allowed by Amazon; meanwhile, every user will be able to find whatever he is looking for in Amazon’s dynamic marketplaces. Absolutely practical, convenient and fast! But that’s not all.

It’s no coincidence that Amazon’s multifaceted marketplaces aren’t just virtual places where it’s possible to sell and purchase products. In fact, the precious and useful presence of complete, detailed product files — which are accompanied by many photos of the product as well as descriptions and specific technical practices — should be noted. An unquestionable aid for an excellent purchase.

So, no one can deny that Amazon’s various marketplaces represent an excellent example of a practically infinite catalogue through which you can make online purchases safely and very simply.

So then, it’s interesting that it was launched as an online bookstore in 1995, after Jeff Bezos founded it on July 5, 1994, under the name Cadabra. A short time later, the range of goods being sold was expanded to include DVDs and music CDs, toys, food, electronics, videogames, software, furniture, clothing, and even more. On the other hand, these days, who has never made at least one purchase on Amazon?

What are the advantages for sellers who open a shop on Amazon?

There are multiple advantages for sellers who decide to open a store on Amazon. Without a doubt, one of the most evident is given precisely by the possibility offered by Amazon to sell your own products to a large public, quickly and without having to create your own website.

So, one of the main points regarding the advantages for sellers opening a shop on Amazon is precisely the fact that Amazon is a dynamic and multifaceted marketplace with infinite users spread around the Earth. To prove this indisputable advantage, you should consider the fact that, these days, Amazon is the absolute number one eCommerce for offers, visits and, obviously, for its business volume.

Another important advantage for sellers who open a shop on Amazon is that there are numerous regional platforms. In other words, there are platforms dedicated to specific geographical areas. This means that we refer to Amazon.com (for the U.S.), Amazon.co.uk, Amazon.ca, Amazon.co.jp, Amazon.in, etc.

So, this way Amazon grants the seller the opportunity of opening a virtual shop and let his products be seen exclusively in the market in his specific zone, or else in other marketplaces in other zones. Thus, another advantage offered by Amazon to all sellers is being able to manage their own market, utilizing a single account, in any marketplace.

In even simpler terms, it means that, taking advantage of this immense opportunity given by Amazon the seller can have the possibility of expanding, and not just by a little, their own catchment area. Regarding the advantages offered to the sellers who decide to open a shop on Amazon, there is a further aspect that deserves attention, and that is the logistics.

In fact, entrusting them to Amazon, you can hand over your products to one of Amazon’s logistical centers and have them manage aspects such as, for example, delivery, packaging, sorting the orders and possible returns. And last, remember that you can also take advantage of the advantages offered by Prime shipping.

How can a private individual open a virtual shop on Amazon?

Seeing the overall economic situation, it’s obvious that many families are looking for a lawful means for supplementing their meager paychecks. As a consequence, one of the first questions they ask is “can a private person open a virtual shop on Amazon?”. Providing a brief premise is fundamental for correctly answering this complex question: the question must be divided into two different aspects.

In fact, from a practical procedural point of view, for a private person to sell on what is considered to be the online selling giant, all he needs is to go to Amazon’s homepage. Here, clearly and simply, he will be directed to the specific page where he will find all the main information reserved for private individuals who want to sell on Amazon.

When he goes to registration, all he needs is:

  • To have a valid credit or debit card;
  • Enter a phone number, which should be entered with the international prefix which, for the US, is (+11);
  • Enter personal information;
  • Enter the activity’s name;
  • Enter banking information related to his checking account, so that the earnings from sales can be accredited.

As can be seen, a private individual can easily sell any type of object on Amazon. On the other hand, the discussion on taxes is a bit more complex. In fact, if you have an online shop structured as a real activity, with a site, tools and, perhaps, personnel and a warehouse, they will need to have a vendor’s license.

If, instead, this e-commerce activity is only part-time, the private individual can sell on Amazon without any problems with the Treasury. Concerning the concept of occasional activity, a private individual might potentially be a bit confused. In fact, for the Treasury in some countries, the concept of part-time doesn’t regard so much the annual limit of earnings as it does the frequency of carrying out this e-commerce activity.

In conclusion, in order to avoid any type of legal and taxation problems, it’s always best to get the suggestions of a good business manager.

What are the limits and expenses selling as a private individual on Amazon?

If I wished to sell on Amazon without having a seller’s license, what would the limits and expenses be? Regarding this, it should be remembered that, as a general rule, that both e-commerce and traditional commerce follow the same steps. So, if you want to go ahead and sell on Amazon, it’s always advisable to turn to the experience of a qualified and serious professional exactly so you can avoid every kind of unpleasant surprises in the future.

This being said, we must underline that Amazon, the marketplace with the most visits in the world, allows even private individuals, which means those individuals without a vendor’s license, to sell. Without a doubt, this gives the opportunity, to anyone, of a great advantage, since Amazon’s virtual shop windows offer countless benefits, beginning with the fact that it is the number one in e-commerce.

It’s not by chance that the Amazon marketplace, besides offering the chance of letting people know about and selling your products — even if they’re completely new and not well-known — it let’s every probable purchaser to know the object on sale through appropriate descriptions. Therefore, besides the price, there are also various reviews left by other users which allow an expansion of your sales horizon.

Another positive aspect is that even a private user with the intention of selling their own products without having a vendor’s license can benefit from an adequate publicity campaign. These are just some of the advantages that Amazon offers also to private individuals.

But now let’s see what the expenses are. Let’s start by underlining that they aren’t prohibitive. In fact, for those who want to sell their objects as a private individual, Amazon proposes a proverbial Account Base, that is something that has been especially studied and carried out by a do-it-yourself seller.

Precisely, the price of this Account Base foresee a sales commission plan as follows: 0.99 € per article + Sales Commission. For an Account Base, there is no monthly subscription amount foreseen. So, in closing, in substance, a private individual who sells on Amazon won’t have to pay anything until a sale has been made.

What can a private individual sell on Amazon?

Every day, the Amazon e-commerce platform is visited by millions of customers. Every day, the Amazon e-commerce platform offers the opportunity to sell every kind of objects and this is for both those who have a vendor’s license as well as for those who don’t.

So, like a fantastic agora, the Amazon e-commerce platform is the place par excellence where supply and demand meet. This is also a reason why private individuals selling various types of merchandise, both new and used, are on the rise. Undeniably, in fact, Amazon offers an absolutely privileged visibility, which increases the possibilities for selling any type of object. In short, this worldwide e-commerce giant lets private individuals put every type of product, allowed by Amazon on sale.

There’s maximum freedom with, however, some buts. In fact, regarding these, we must point out that, while it doesn’t make much difference for Amazon whether a private individual selling anything on the site has a vendor’s license or not, it’s a completely different story when referring to the situation with the Treasury.

In fact, while Amazon, on the one hand, doesn’t stop a private individual from selling, on the other hand, it’s a good idea for the private individual to take into account the tax laws in their country, since the Treasury, as it is well-known, is in charge of making controls and assessments. Therefore, if a private user wants to put any type of item for sale on Amazon, they will have to deal with their country’s Treasury Department. In these cases, it would be a good idea, before doing anything else, to get the advice of a good business manager, in order to avoid fines and other provisions of the Law.

Even though, up to now, there haven’t been any news about fines or otherwise, it’s never a good idea to tempt fate and luck when referring to the Treasury Department. In practice, let’s avoid confusing and unclear situations. So, in conclusion, the Amazon platform grants the opportunity even to those who don’t possess a vendor’s license to become an Amazon Seller.

How can I pay zero taxes on Amazon?

Among the many varying dreams that most of us have is, without a doubt, that of paying less taxes. Something that could become, however, also a concrete reality someday.

For example, when we think about how we could pay zero taxes on Amazon, several problems come into play; first among these is where we live. In fact, if our country’s laws don’t preclude the possibility of having a company abroad, there is, however, the possibility that our country’s tax laws will obligate EVERYONE to pay taxes on both the earnings and profits that are produced even on companies found abroad.

So, when considering how to not pay taxes on Amazon, you must not only hypothesize about setting up a company abroad, obviously with a preference for a place lavish with special tax terms, but you must also consider and evaluate the subject of your present residence. Therefore, in just a few words, even though you have a company in a tax haven, if you reside in certain countries, you have to pay taxes.

And so, just because you have established an offshore company, regarding the Treasury and taxes, in the end, you haven’t changed things all that much.

Obviously, this kind of choice are never made lightly and, even less, from one day to the next. In fact, even though you could move your residence out of the country on paper, that is, fictitiously — and there truly a lot of more or less famous cases of this — you should keep in mind that this would preclude always remaining in your present country of residence.

It’s no coincidence that the center of your life would be substantially divided between your country and the foreign country, since you could remain in your country of origin for less than 6 months annually. So on the one hand, although it seems like a great opportunity from a taxation point of view, on the other it requires radically modifying your present lifestyle. Generally, then, before adopting the decision to move your residence abroad, it’s a good idea to consolidate your business on Amazon, meaning that it ‘s a good idea to reach a certain volume of business.

Regarding this, it should be emphasized that selling on Amazon you could reach considerable amounts of money in just a few months. Therefore, in conclusion, paying zero taxes on Amazon becomes tangible through two factors: the first is by establishing a company abroad, preferably in a tax haven, and the second by setting up your residence.

Anyway, there’s a solution to everything, and even if you don’t want to move your residence you can use a fiduciary for your offshore company.

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Can I operate on Amazon with an offshore company?

Selling on Amazon unquestionably offers enormous advantages such as, for example, that of easily reaching diverse markets. But can I operate on Amazon with an offshore company?

Without a doubt, to escape from what could be taxation and any other type  of fulfillment regarding tax subjects, many people have dreamed of setting up an offshore company, obviously in a tax haven! However, it’s one thing to fantasize and another to become an entrepreneur of an offshore company. Therefore, to understand whether you can operate on Amazon with an offshore company, the first essential thing to do is to discover just exactly what you are dealing with.

With offshore company, we mean an entity whose legal headquarters are in a country which is different from the one where its main business is carried out. Usually, when you hypothesize about establishing your legal headquarters in another country, you think about doing it in what is considered to be a tax haven.

To be precise, tax haven refers to any country where the average taxation is inferior by at least half of most countries or even none at all. In practice, to enjoy the advantages deriving from setting up an offshore company, transferring your wealth isn’t always requested; it will be sufficient that the country prechosen for the legal headquarters also has the structure of the company.

Furthermore, among the various benefits offered by tax havens, the fact that local administrations impede a complete exchange of information with authorities belonging to other countries stands out; and even if there are information exchange agreements, they have left an emergency back door.

Continuing with the subject, can I operate on Amazon with an offshore company, it’s useful to know just how solidly an offshore company works. Mainly, the work mechanism that regulates the activity undertaken by an offshore company is identifiable in the separation between the property and the detention of all goods that, basically, you want to safeguard, or you want to take advantage of economically.

The fact that the market referred to with Amazon is the world, this does not automatically imply the fact that it is multinational. To enjoy tax facilitations, therefore, it will be necessary to have a company legally headquartered based in, let’s say, Dubai or Hong King.

So then, Amazon, in conclusion, allows you to sell, through its Marketplace, to nations in practically almost the whole world.

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How to create captivating insertions for selling products on Amazon

Once you’ve finished all the steps needed to create your own Amazon account you can proceed with creating your personal virtual shop window. Logically, one of the first fundamental passages is that of going to clearly and uniquely identify the product you intend to sell on Amazon. In fact, selecting the right category, you can facilitate filtering the results to the various users.

And then, you need to indicate whether the item put on sale on Amazon is new or used. In the latter case, it’s a good idea to indicate its state and condition. Another greatly important aspect regards the description. In fact, since it’s a huge marketplace, it’s almost a surety that there’s another similar, if not the same, item on Amazon. Therefore, you will have to provide a description that, besides being comprehensive, will also respond to the SEO viewpoint.

To increase the chances of selling an item on Amazon, you will also have to look after the part regarding the images of the product. Actually, the more attractive they are, the better the chances of catching attention. This being done, you can begin thinking about the part regarding promotion. To do this, there is no question about the lack of means. In fact, you can use blogs, social networks, forums and so forth to promote sales on Amazon.

Amazon, as a powerful and effective marketplace, undoubtedly offers infinite advantages and possibilities for sales, but, meanwhile, you should remember that the competition is fierce. Because of this, you have to be professionally dedicated in order to increase sales. This is the only way to be noticed by the millions of users who, every day of the year, search and make their purchases on Amazon.

Basically, in conclusion, among the various things to do to sell on Amazon, you will have to offer the best price, which entails monitoring the competition, create detailed descriptions and captivating titles, use the appropriate keywords, present what you are selling with professional photographs, without forgetting the importance of professionally managing all customer services.


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The views and opinions expressed in the web site are subject to change based on the laws, market and other conditions. The information provided does not constitute legal advice and it should not be relied on as such. All material(s) have been obtained from sources believed to be reliable, but its accuracy at the time you read is not guaranteed. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.

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