Legal and Business Setup Requirements for Selling on Amazon’s International Marketplaces

To sell on Amazon’s international marketplaces, you must meet several legal and business setup requirements focused on account registration, tax compliance, and product regulations.

Key requirements include:

• Seller Account Setup: You need to create a dedicated seller account for each Amazon marketplace you want to sell on, or use a unified account if available (e.g., North America unified account for Canada, US, Mexico, Brazil). This account must have a valid business address and a bank account in a supported country for currency conversion.

• Tax Registration and Compliance: You must understand and comply with the tax obligations of the target country. For example, if your sales exceed certain thresholds (e.g., $30,000 CAD in Canada over 12 months), you must register for and remit applicable sales taxes such as GST/HST. If you do not register, Amazon may collect and remit taxes on your behalf, but it is your responsibility to ensure compliance with local tax laws.

• Product Compliance and Safety: Each marketplace has specific product regulations, safety standards, and listing requirements. Sellers must review and comply with these rules, which can be navigated using Amazon’s compliance tools and expert service providers.

• Fulfillment Options: You can fulfill orders yourself by shipping directly or use Amazon’s Fulfillment by Amazon (FBA) service, where Amazon handles storage, packing, and shipping. FBA can simplify logistics but involves fees.

• Legal Entity: Generally, you do not need to form a local legal entity in the target country to sell on Amazon, but depending on your business model and strategy, it might be beneficial.

In summary, selling internationally on Amazon requires setting up a compliant seller account, registering for and managing local taxes, ensuring product compliance, and choosing a fulfillment method. Amazon provides tools and resources to assist, but the seller is ultimately responsible for legal and tax compliance in each marketplace.