How to Register a Company to Sell on Amazon

Selling on Amazon can be a lucrative venture, but it all begins with registering your company. Whether you're an individual or a business, understanding the steps involved in setting up your company to sell on Amazon is crucial. This guide will walk you through the process from start to finish, ensuring you're ready to start selling your products to millions of potential customers.

Step 1: Choose Your Business Structure

Before you register your company on Amazon, you need to decide on the legal structure of your business. The most common structures include:

• Sole Proprietorship: This is the simplest form of business, where the business and the owner are considered the same entity. This means you are personally responsible for all business debts and liabilities.
• Partnership: If you're starting the business with someone else, you might consider a partnership. Here, profits and losses are shared between partners.
• Limited Liability Company (LLC): An LLC offers protection from personal liability for business debts, making it a popular choice for small businesses.
• Corporation: A corporation is a more complex structure, providing the most protection from personal liability, but it also comes with more regulations and higher costs.

Tip: It’s advisable to consult with a legal advisor to determine the best structure for your business based on your specific needs and circumstances.

Step 2: Register Your Business Name

Once you've chosen a business structure, you need to register your business name. This is also known as a "Doing Business As" (DBA) name. The process for registering your business name varies depending on your location. In the U.S., you can usually register your business name with your state government or local county clerk’s office.

Tip: Make sure to check the availability of your chosen business name to ensure it’s not already in use. Amazon requires that your business name is unique and does not infringe on any trademarks.

Step 3: Get an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is like a Social Security number for your business. It's required if you plan to hire employees, open a business bank account, or apply for business licenses and permits. You can obtain an EIN for free through the IRS website.

Important: Even if you’re a sole proprietor without employees, it's often beneficial to get an EIN to separate your business finances from your personal finances.

Step 4: Open a Business Bank Account

A business bank account is crucial for managing your business finances and separating them from your personal funds. It’s also essential for tax purposes and when handling transactions on Amazon. To open a business bank account, you will generally need:

• Your EIN
• A copy of your business registration documents
• A copy of your operating agreement (if applicable)
• Identification documents

Tip: Consider a bank that offers business-friendly features like low fees, good customer service, and integration with online platforms like Amazon.

Step 5: Register Your Business on Amazon

Now that your business is legally established, it's time to register on Amazon. Follow these steps:

1. Create an Amazon Seller Account: Go to the Amazon Seller Central website and click "Register Now." You will need to choose between an Individual Seller account and a Professional Seller account. The Professional account comes with more features and a monthly subscription fee.

2. Provide Business Information: You will be asked to provide details about your business, including your business name, address, phone number, and EIN.

3. Set Up Payment Information: Enter your business bank account details where Amazon will send your payments.

4. Verify Your Identity: Amazon will ask you to verify your identity by submitting documents such as a passport, driver's license, or utility bill.

5. Tax Information: You will need to fill out tax information. If you're a U.S. seller, you'll fill out a W-9 form. International sellers may need to fill out a W-8BEN form.

6. Choose Your Product Categories: Select the categories in which you wish to sell your products. Some categories may require additional approval from Amazon.

Step 6: Understand Amazon’s Fees

Amazon charges various fees, including referral fees, fulfillment fees, and subscription fees. Here's a quick breakdown:

• Referral Fees: A percentage of the sale price, which varies by category.
• Fulfillment Fees: Charged if you use Amazon’s fulfillment services (FBA).
• Subscription Fees: The Professional Seller account has a monthly subscription fee, while the Individual Seller account charges per item sold.

Important: Make sure you understand all the fees associated with selling on Amazon to price your products competitively while maintaining profitability.

Step 7: Prepare to Sell

With your company registered on Amazon, you can now start listing products. Here are a few things to keep in mind:

• Product Listings: Ensure your product listings are detailed, with high-quality images, clear descriptions, and accurate pricing.
• Inventory Management: Keep track of your inventory to avoid stockouts, which can negatively impact your seller rating.
• Customer Service: Provide excellent customer service to maintain a good seller rating and avoid negative reviews.

Tip: Take advantage of Amazon's advertising tools to promote your products and increase visibility.

Conclusion

Registering your company to sell on Amazon requires careful planning and attention to detail. From choosing the right business structure to understanding Amazon's fees, each step is crucial to your success. By following this guide, you'll be well on your way to becoming a successful Amazon seller.