What Amazon sellers need to know: registration, store purchase, insurance and VAT precautions

In the current highly competitive e-commerce environment, just like the challenges faced by sellers on the Amazon platform, it is gradually becoming more difficult to register a new store, and many beginners encounter obstacles in the review process. Therefore, more and more sellers choose to purchase registered stores, but they must be cautious during this process to avoid stepping into traps.

1. Notes on Amazon store registration and purchase

Difficulties in registration

In recent years, Amazon has increased its intensity of review and qualification standards for new stores, which is reflected in the following aspects:

• Personal ID documents will no longer be accepted for registration;
• The approval rate of new stores has dropped significantly;
• There are strict requirements on the type and service scope of registered companies.

Due to these factors, many sellers are turning to buying directly from registered Amazon stores.

Purchase instructions

When purchasing an Amazon store, sellers need to keep the following key points in mind:

1. Sign a contract: A contract can clearly define the rights and responsibilities of both parties and avoid later disputes.
2. Information transfer: Ensure that store, product and company information are transferred together to avoid future audit troubles.
3. Store Qualification: View your store’s review status and history to learn about its qualifications and security.
4. Data replacement: When changing store information, you should do it in batches to avoid triggering audit alerts.

2. Conditions for purchasing Amazon merchant insurance

Buying business liability insurance is necessary for Amazon sellers. Insurance companies need to meet the following conditions:

• Each accident compensation and cumulative compensation shall be at least US$1 million;
• The policy must include “Amazon.com Services LLC and its affiliates and agents” as additional insureds;
• The policyholder must match the legal entity name provided to Amazon.

Choose an insurance provider that works with Amazon to reduce your risk.

3. VAT tariff on Amazon UK site

When shopping on Amazon UK, VAT (Value Added Tax) is an important factor that must be considered:

• VAT is a consumption tax applicable to the EU and other countries. Buyers should pay attention to the tax-included price when shopping.
• Consumers in non-EU countries can apply for VAT refund, and the specific process must follow local regulations.

Therefore, when purchasing products on Amazon UK, buyers need to understand the applicable scope of VAT and the additional charges that may be incurred.

4. Purchase Amazon service tools from Taobao or Xianyu

Sellers can find the Amazon tools and services they need through Taobao or Xianyu. Choosing these channels can guarantee you price and service quality. In addition, you can also get more reliable tool recommendations by joining communities in related industries.

5. Risk of self-purchase and refund

On the Amazon platform, sellers are not allowed to refund after purchasing their own products. This not only violates the platform regulations, but may also cause the seller to face the risk of damage to his reputation. Such behavior may be regarded as false orders and affect the fair competition of other sellers.

In general, Amazon sellers need to remain vigilant during operations, follow platform policies, and reasonably conduct store registration, purchase and insurance to ensure the smooth progress of business.