As a global e-commerce giant, Amazon provides sellers with a variety of flexible business models. Among them, the holiday model has become the first choice for many sellers to adjust their operating strategies within a specific period of time. However, many sellers are confused about the cost issues under the holiday model. This article will conduct an in-depth analysis of the monthly rent and VAT fees under Amazon’s holiday model to help sellers better understand and reasonably plan their operating costs.
1. Amazon’s holiday model and monthly rent
First of all, we need to make it clear that Amazon’s holiday model does not exempt sellers from the obligation to pay monthly rent. Monthly rent is a fee that sellers must pay to maintain the normal operation of their stores, regardless of whether the store is in holiday mode. As long as the store is still in operation, sellers need to pay the monthly rent on time.
This fee exists to ensure that sellers’ stores on the Amazon platform can continue to receive support and maintenance. By paying the monthly rent, sellers can enjoy the platform services, technical support, marketing and other resources provided by Amazon, thereby better improving store exposure and sales performance.
Of course, for some special circumstances, such as sellers needing to temporarily close their stores or adjust their operating models for some reason, they can apply to Amazon to suspend the payment of monthly rent. However, this needs to comply with Amazon’s relevant regulations and procedures, and the store will not be able to carry out normal sales activities during the suspension period. Therefore, before applying to suspend the monthly rental fee, sellers need to fully evaluate their business needs and market conditions and make wise decisions.
2. Amazon Holiday Mode and VAT Fees
In addition to the monthly rental fee, sellers still need to pay VAT fees in Amazon’s holiday mode. VAT (value added tax) is a type of tax levied on the value added of goods. Its collection is closely related to factors such as the place of sale of the goods, the value of the goods, and the transaction relationship between the seller and the customer.
On the Amazon platform, sellers need to calculate and pay VAT fees in accordance with the tax laws and regulations of their country. The holiday mode does not exempt this responsibility. In fact, regardless of whether the store is in holiday mode or not, as long as the seller conducts sales activities on the Amazon platform, VAT fees must be paid in accordance with normal procedures.