Is there any risk in registering an Amazon store? What are the potential risks?

It is getting harder and harder to open a store on Amazon, because the Amazon platform has stricter management of store registration. So now some people are recruiting people who can register stores on the Amazon platform, and they can give generous rewards after successful registration. So are there any risks in registering an Amazon store?

Is there any risk in registering an Amazon store?

There is no problem in registering an Amazon store, which is equivalent to a Taobao store in China. Many large companies have already started opening stores, but the price of 500 is a bit low.

Let's talk about the risk issue: it will involve a business license and an ID card issue. Many people get scared when the ID card is mentioned. In fact, there will be no problem as long as a formal contract can be signed (don't believe what is said verbally). The contract is very important because it involves personal information, but it's ok as long as there is a contract. If the information is leaked, you can sue him.

Let me talk about the tax issue here: the store needs to pay taxes when selling goods, but this is handled by the operating company and has nothing to do with individuals. Secondly, the tax issue of the business license, this is not clear to many people. I can say fairly: there is no problem if the newly registered business license does not open the tax;

But now there is a one in ten chance that it will be automatically activated for you, which involves whether the operating company is responsible. Generally, there will be special tax personnel to help you every month. If it is activated, they will help you with your taxes (if you don’t sign a contract, don’t help with registration, no matter how much money you pay).

What are the potential risks?

1. Avoid or avoid following others’ sales

Currently, there is basically no profit margin for the listings that can be copied. As more and more sellers take brand protection measures, copy selling is no longer feasible. From the perspective of account security and long-term development, sellers should try to follow selling as little as possible or even not at all.

2. Register a brand and file a trademark

Amazon is a platform that "focuses on listings rather than stores". As a seller, it is not easy to create a hit listing. It is recommended to register your brand on Amazon as early as possible and take brand protection measures from the beginning to avoid making wedding clothes for others after working hard to build it.

3. Use FBA for delivery

Currently, there are about 65 million Amazon Prime members, and about 50% of all orders on the Amazon platform are shipped using FBA. As a seller, not using FBA means that you have fallen behind more than half of the sellers. At the same time, Amazon's traffic is prioritized to listings shipped using FBA, so using FBA is definitely a good choice.

If you open a store yourself and register an Amazon store, there is no risk. However, if you register a store for others to use, you will face great risks. For example, if someone uses the store you registered to sell illegal goods, you will be involved in criminal activities.

Recommended reading:

How to get tax-free shopping on Amazon? Introduction to common overseas tax issues

How about Amazon online shopping? What are the advantages of Amazon?

How to check Amazon delivery fees? How to calculate?