The first thing most people realize when deciding to set up an online store is that there are many choices. And while each option has its pros and cons, your circumstances will dictate which one is right for you.
The scale of Amazon’s targeted audience is probably the most obvious advantage, but it’s still worth highlighting. When you put your products on Amazon, you gain access to a large pool of buyers who have already purchased from you. In reality, independent merchants using Amazon’s platform account for more than 40% of all products sold on the site.
Independent eCommerce businesses must spend a ton of money on advertising to let customers know they exist. Still, Amazon has an in-built customer base that no independent site can match. Repeat buyers are attracted to Amazon sellers who provide excellent customer care.
Amazon makes it simple for vendors who don’t want to deal with packaging and shipping. They provide Fulfillment by Amazon (FBA), which saves time and money by handling all storage, packing, and shipping (including free shipping for Amazon Prime members). FBA also makes international export, refunds, and customer service more accessible.
When you sell in numerous sales tax jurisdictions, Amazon’s back-end infrastructure provides everything you need to run your business, including inventory monitoring, credit card processing, and sales tax collection (but not sales tax filing), which can be intimidating. If you already have an independent ecommerce site and use Returns for Small Business, you know how critical this is.
Customers on Amazon can view a list of recommended products when they’re on the site, and your product might grab their eye even if they’re not shopping for it. Furthermore, Amazon has a vast network of affiliates that may refer customers to your products by displaying Amazon adverts on their own websites.
Amazon would win a contest for the best site for sellers. It listed several benefits, including providing a familiar, trustworthy shopping experience for its customers, access to Amazon’s world-class fulfilment resources and expertise, acclaimed customer service, and trusted shipping options.
According to him, sellers can also list products in over 40 categories (including speciality, handcrafted goods through Amazon Handmade), use free reporting and analytics tools, and take advantage of Amazon’s negotiated delivery costs.
Economic nexus regulations in most states now mandate out-of-state retailers to collect and remit sales tax. In most jurisdictions, marketplace facilitator regulations mandate that marketplaces collect and pay sales tax on behalf of third-party sellers. However, marketplace vendors may be required to register with the IRS and file taxes.
Both facilitators and sellers can benefit from sales tax automation.
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