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Amazon News : Seller Fee Taxability

Below is an update from Amazon about changes to seller tax policy.

Dear Seller,

We are reaching out regarding the possible tax implications on some seller fees beginning June 1, 2019. 

Some states consider specific Selling on Amazon fees such as per item, order, and refund fees as a taxable electronic service. Similarly, some states consider FBA inventory prep fees such as bubble wrap, polybag, taping and labels as taxable. Seller fees is not increasing however; you might see tax applied to some seller fees.

For more information regarding this change, refer to the FAQ below:

- What fees are taxable?

Selling on Amazon fees (based on your business location):
•       Referral Fee
•       Subscription Fee
•       Variable Closing Fee
•       Per-item Fee
•       Promotion & Merchandising Fee
•       Refund commission Fee
•       Checkout by Amazon
•       Sales Tax Collection Fee

FBA service fees (based on order fulfillment center):
•       Labeling Fee
•       Polybagging Fee
•       Bubble wrap Fee
•       Taping Fee
•       Opaque Bagging Fee
•       Repackaging Fee

The above list is some common seller fees. For a complete list of seller fees, refer to the following Help pages:
Selling on Amazon Fee Schedule: https://sellercentral.amazon.com/gp/help/200336920 
FBA features, services, and fees: https://sellercentral.amazon.com/gp/help/G201074400

- How will tax be calculated on my seller fees?
For Fulfillment services, the fulfillment center performing the taxable service will determine the tax rate. 
For Selling on Amazon fees, the location of your business in a taxable state will determine the tax rate calculated.  

- When does this begin and where can I see any tax collected on my seller fees?
Beginning June 1, 2019, Amazon will start collecting sales tax on taxable seller fees. Tax collected will reflect with the order fee on the transaction details of your Payments Reports. Date range payment reports will continue to reflect the sum of fees per order. 

- Can I opt out of using FBA fulfillment services that may be taxable?
FBA services are performed on your items when you elect to purchase these services from Amazon or when the packaging and prep requirements are not met. To manage your FBA settings and minimize FBA service fees by prepping your items before sending to an Amazon fulfillment center, visit Fulfillment by Amazon settings at https://sellercentral.amazon.com/gp/ssof/configuration/index.html/ref=xx_fbasettings_dnav_xx.
To learn more about packaging and prep requirements, refer to the Help page available at https://sellercentral.amazon.com/gp/help/200141500.

For more information on Amazon fees, please visit the Selling on Amazon Fee Schedule at https://sellercentral.amazon.com/gp/help/200336920.

Regards,

Amazon Seller Services

Fba Fox Wholesale Login Instructions

1) Travel to the site and click the login tab under my accounts

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2) if you are logged in it will say “My account” in the center of the page , if you aren't it will say “login”

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3) All the data paid members have access to is on the left under the my accounts tab.

-Quote request is the form you use to submit a inventory order

-Inventory files is where you will download the most current weekly inventory files

-Resources is where we post extra info for members

All the above tabs aren't accessible by non paid members or if you aren't logged in.

Amazon News April 3 2019

Below is an email announcement from Amazon fba about seasonal inventory policy changes.

“Hello from Fulfillment by Amazon,
 
We are writing to let you know that meltable inventory will not be fulfilled or accepted by Amazon fulfillment centers starting May 1, 2019. Meltable inventory will be accepted again starting October 1, 2019.

Removal orders for this inventory must be submitted before May 1. If a removal order is not submitted before that date, your meltable inventory will be disposed of.  

“Meltable” refers to heat-sensitive grocery and health and personal care products that are eaten or swallowed, including chocolate, gummies, and probiotics.

For more information, visit Remove inventory from a fulfillment center.

Thank you.

The Fulfillment by Amazon team “

Home & Kitchen - This Day In History

Amazon popular products are always an interesting top when selling through Amazon FBA. Below compares the top sellers in Amazon’s Home & Kitchen category for February 2012 and February 2019.

Important Takeaways-

1) Slow cookers sell - Even seven years apart a slow cooker still hits int he top 4 slots.

2) Price points - In 2012 all top sellers were at price points below $40. By 2019 2 asin over $100 dollars appear as popular products.

3) Review Count - The start rating may be the same but the review count is astronomically different ! Number 2 spot in 2019 with 50k reviews !?!?

When the time comes to grow your own Amazon fba inventory, Fba Fox offers an ever growing inventory of direct to Amazon wholesale goods. 500,000 sku and growing!

Register Today

7 year Amazon top Home & Kitchen Feb 19 .png

Amazon Fba Fee News

Below is a message from Amazon describing their upcoming fee changes.

“Hello from Amazon,
 
We want to thank you for your collaboration in better managing aged inventory, which has helped us improve efficiency across our fulfillment network. While the costs to fulfill, transport, and deliver orders increased last year, our continued investment in supply chain innovation allows us to limit the fee changes for 2019. Certain fulfillment fees will be increasing, while many storage and referral fees will go down. Our goal was to minimize the impact of these adjustments for as many of you as possible, and we expect over 40% of FBA units shipped to experience no change—or even a decrease.
 
Please review the fee change highlights, as well as each fee detail page linked below. The storage fee changes will take effect February 15, 2019, and the fulfillment and referral fee changes will take effect February 19, 2019. We are notifying you now so you can plan accordingly.
 
Fulfillment fees

  • We will make no changes to fulfillment fees for small standard-size and large standard-size items with a shipping weight of 10 oz or less.

  • We will implement small increases in fulfillment fees for products in other size tiers to reflect fulfillment and transportation cost changes.

  • We will change the dimensional billing weight calculation for oversize items. We will apply a minimum width and height of 2 inches when calculating dimensional weight for oversize items, to align with packaging costs.

  • We will introduce separate fulfillment fees for dangerous goods that contain flammable or pressurized aerosol substances and items that contain lithium-ion batteries.

  • We will simplify the Subscribe & Save fee structure starting in September 2019. You will be able to fund a flat discount of 5% or 10% for each new item you add to the program.

See all 2019 US fulfillment fee changes, definitions, and examples

Storage fees

  • We will eliminate long-term storage fees for units that have been in a fulfillment center for 181-365 days. The last long-term storage fee charge for inventory we store for 181-365 days was January 15, 2019. We will continue to charge long-term storage fees for units in a fulfillment center for more than 365 days.

  • We will reduce the minimum long-term storage fee on units in a fulfillment center for more than 365 days from $0.50 per unit to $0.15 per unit. The last charge at $0.50 per unit was January 15, 2019.

  • We will introduce a higher monthly storage fee for dangerous goods that contain flammable or pressurized aerosol substances. This change will first be reflected in April 2019 charges for storage that occurs in March 2019. We will not change the monthly inventory storage fees for other products.

See all 2019 US storage fee changes, definitions, and examples

Referral fees

  • We will reduce the referral fee percentage for Beauty, Health & Personal Care, and Baby products (excluding Baby Apparel) from 15% to 8% on items with a total sales price of $10 or less. We will continue to charge a fee of 15% on items with a total sales price above $10.

  • We will reduce the referral fee percentage for Grocery & Gourmet products from 15% to 8% on products with a total sales price of $15 or less. We will continue to charge a fee of 15% on products with a total sales price above $15.

  • We will reduce the per-item minimum fee across 30 categories from $1 to $0.30 per item, and from $2 to $0.30 per item for Jewelry and Watches.

  • We will reduce the referral fee percentage for Furniture items from 15% to 10% on any portion of the total sales price above $200. This does not apply to mattresses.

  • We will reduce the referral fee percentage for Jewelry items from 20% to 5% on any portion of the total sales price above $250.

See all 2019 US referral fee changes, definitions, and examples
 
For a directory of all fee changes in this announcement, visit amazon.com/selling-fee-changes. We welcome your feedback on these changes at fba-fee-announce-feedback@amazon.com and will review each comment.”

FbaFox International Sellers Quick Start Guide

Fbafox.com Is you top source for direct to fba wholesale inventory!

How to Sell on Amazon US Internationally

It is possible to sell from Amazon US Marketplace from all areas of the planet, provided you have a fantastic online connection! Many successful sellers on Amazon US spend their time traveling and living across the globe. In this guide you will find all the info you will need to set up and get started in no time!

 

Do I Have to Be in the USA to profit from the Amazon US Marketplace?

You do NOT have to reside in the USA to be qualified to sell on Amazon's US.

 

Why You Should Sell on Amazon's U.S. Marketplace?

But, Amazon's most advanced solutions, for example Prime are so nicely utilized in America, that so as to execute this type of logistically intensive performance, Amazon must have a compact network of distribution facilities and warehouses manufactured in the States.

 

How Do I sell on the Amazon US Marketplace?

Amazon’s largest region is North America. Most of these sales are fueled by the US marketplace. Amazon relies on an extensive network of distribution centers, warehouses, and third-party seller (Like You!) to supply the need for goods in the States.

 

Set Up

To set up your Amazon Seller Central Account you will need few essential pieces of information.  Have these items ready when creating your account.

 

·         A charge card which could be charged globally (Visa or Mastercard)

·         A telephone number (You can purchase a Skype US telephone number HERE)

·         Banking Option 1) US bank accounts info. This is the most crucial part, because Amazon needs a place to send your profits. One solution is Amazon's Currency Converter for Sellers.  ACCS permits you to market in overseas Amazon marketplaces without opening a bank account in this nation. Rather, you're paid straight on the regional bank in the regional currency. The only little caveat is that you may only receive payment into a bank account at a country and money supported by ACCS. There's also a listing of all of the states and currencies supported by Amazon's Currency Converter for Disbursement.

·         Banking Option 2) Payoneer or Worldfirst both offer solutions for international banking.

 

Optional Items

US business. You can create a US business with sites like Legalzoom. A US company will give you the ability to buy good without paying sales tax on each item.  This will make you additional profits on each purchase but isn't necessary to create your Amazon Seller Central account. 

 

Get Started Today!

Create My Amazon Seller Account

 

Amazon Seller Central Contact Info

Amazon has great customer support!  They are always ready to answer any quest you may come across as well about the necessary info you need to create your account or any changes to their program.

Amazon Support