The United States is the largest and most dynamic e-commerce market in the world, and Amazon.com is its undisputed king. For international entrepreneurs, gaining access to millions of high-spending American consumers is a game-changing opportunity. While the process involves navigating some unique US regulations, this guide will walk you through every essential step to successfully launch and grow your brand on Amazon.com from anywhere in the world.
1. The First Big Decision: Your Business Structure
Before you do anything else, you must decide how you will operate in the US. This choice has significant tax and legal implications.
- Selling as a Foreign Individual/Entity: You can register on Amazon using your personal name or your existing foreign company. This is the simplest setup. You will need to provide Amazon with an IRS Form W-8BEN (for individuals) or W-8BEN-E (for businesses) to certify your foreign status and potentially claim treaty benefits to reduce or eliminate US tax withholding on your revenue.
- Forming a US LLC (Limited Liability Company): This is the most recommended path for serious sellers. Creating a US LLC (Wyoming and Delaware are popular states for non-residents) provides liability protection, separating your personal assets from your business. It also makes many other steps—like opening a US bank account and appearing more credible to US suppliers and partners—much easier.
2. Navigating US Tax and Import Requirements
This is the most critical area for international sellers to get right.
- Federal Income Tax: As a non-resident selling online, you generally only pay US income tax if you have "Effectively Connected Income" (ECI) tied to a "US Trade or Business" (USTB). This is a complex area, but for many FBA sellers, a properly structured business may not have a US tax liability. You must consult with a tax professional who specializes in e-commerce for non-residents.
- Sales Tax: The US does not have a national VAT system. Instead, sales tax is collected at the state level. Thanks to marketplace facilitator laws, Amazon is responsible for calculating, collecting, and remitting sales tax on your behalf for all sales made on its platform. This is a huge relief for international sellers.
- Customs and Duties: When you ship your products to the US, you are the Importer of Record (IOR). You are responsible for ensuring your shipment clears US customs and for paying any applicable import duties (tariffs). Amazon will not act as your IOR. It is highly recommended to hire a professional customs broker to handle this process for you, ensuring your paperwork is correct and your inventory doesn't get stuck at the border.
3. Setting Up Your Amazon.com Seller Account
Once your business structure is in place, you can register for an Amazon.com seller account. You will need:
- A passport or national ID from your country of residence.
- A valid credit card that can be charged internationally.
- A bank account that can receive payments from Amazon (see next section).
- A phone number and proof of address (like a recent utility bill).
Amazon's verification process is thorough, so ensure all your documents are clear, valid, and match the information you provide exactly.
4. Getting Paid: Banking and Currency Conversion
You need a way to receive your USD earnings from Amazon. You have three main options:
- Amazon Currency Converter for Sellers (ACCS): This is the easiest option. Amazon converts your USD earnings to your local currency and deposits them into your home country bank account. However, the convenience comes at a cost, as the exchange rates are often less favorable.
- Third-Party Payment Services: Companies like Wise (formerly TransferWise), Payoneer, or WorldFirst are extremely popular with international sellers. They provide you with virtual US bank account details (an account and routing number) which you can enter into Seller Central. They offer much better exchange rates, saving you a significant amount of money on fees.
- A US Business Bank Account: If you formed a US LLC, you can open a genuine US business bank account. This is the best long-term solution, offering the most flexibility and lowest costs.
5. Logistics: Why FBA is Essential
For international sellers, Fulfillment by Amazon (FBA) is the key to success. Managing your own storage and shipping from another country (FBM) is not practical for meeting US customers' expectations for fast, reliable delivery.
With FBA, you ship your inventory in bulk to Amazon's US fulfillment centers. Amazon then handles all the storage, picking, packing, and shipping for every order. Your products also become eligible for Amazon Prime, which is a massive driver of sales in the US.
6. Product and Listing Optimization
- American English: Ensure your listings are written in natural, fluent American English. Pay attention to spelling ("color" not "colour," "organize" not "organise") and local slang or idioms.
- Keyword Research: Use tools like Helium 10 or Jungle Scout to find the exact keywords US shoppers are using. Don't assume they are the same as in the UK or other English-speaking markets.
- Product Compliance: Ensure your products meet US safety standards, which are enforced by bodies like the Consumer Product Safety Commission (CPSC), especially for children's products.
- Liability Insurance: Once you reach $10,000 in monthly sales, Amazon requires you to have commercial liability insurance.
Conclusion
Entering the US market on Amazon.com is a journey that requires careful planning and a commitment to doing things correctly. By establishing the right business structure, understanding your tax and import duties, and leveraging the power of FBA, you can unlock the world's most lucrative e-commerce market and build a truly global brand.
Useful Resources
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