Do I need a business license to sell on Amazon?
If you're selling products on Amazon, then you need a business license. But what is a business license? And how can you get one? We'll explain it all!
What Is an Amazon Business License?
An Amazon business license allows you to sell products on Amazon. It gives you permission to use the Amazon name and logo, as well as to sell items through their website. If you don't have a license, your account could be suspended or closed by Amazon.
If you are planning to sell products on Amazon, you will need to get a business license. After getting your license, your can start Amazon ppc management campaigns and listings. This is an easy process and can be done through the Amazon Seller Central website.
To obtain a business license, first, log into your seller account and select "apply for a business license" from the "business settings" page. This will bring up a page that explains what information is required to complete your application. You will need to provide:
-Your name, address, and phone number
-Your bank routing number
-A copy of your driver's license or passport photo page
-Information about your business (this includes the state where your business is located)
You can also take the help of an ecommerce consulting agency to help you get the amazon business license as well as amazon account management.
Different types of Amazon Business licenses
Amazon offers three different types of licenses:
- A Professional Seller License: This is for businesses that want to sell products on Amazon.com. It costs $39 per month unless you have less than $10,000 in sales volume per year, in which case it’s free!
- An Individual Seller Account: If you don’t want to open a business entity but still want to sell on Amazon.com, then this is the right choice for you! This type of account only costs $0.99 per month (plus credit card processing fees).
- A Vendor Central Account: If you’re an existing vendor or supplier who wants to sell products through Amazon Marketplace, then this option is right for you!
Requirements for getting an Amazon Business License
If you are thinking about starting an Amazon business, you may be wondering what the requirements are for getting an Amazon business license.
The requirements for getting an Amazon business license depending on the state where your business is located. In most states, you'll have to register as a corporation or LLC, and you may also need to register for sales tax. If you're selling products in multiple states, you may need to get a license in each state. There are some requirements that you need to satisfy in order to get an Amazon Business License:
-You must have a physical address in the state where you want to register your business. You can't just use a PO Box or something similar; you have to have a real address.
-You must be at least 18 years old in order to register as an Amazon seller.
-You must have a bank account with funds in it that are sufficient for paying taxes and other expenses associated with running your business.
-Provide proof of identity with your application form (driver's license or passport).
- You must have a US tax identification number (EIN) issued by the IRS.
How Do I Get an Amazon Business License?
You can apply for an Amazon business license by filling out the application form and submitting it with your application fee ($40).
If you're looking to get an Amazon business license, the process can be a bit confusing at first. The following steps will help you navigate the process and get your license in no time!
Step 1: Find Your Local Licensing Authority
The first thing you'll need to do is find out which agency handles licenses for your specific area. You can find this information online by searching for a "business license" in your city or county. Make sure you choose the correct agency—there are often multiple ones that deal with different types of businesses.
Step 2: Complete an Application
Next, complete an application form for the required license type (for example, if you want a food service permit, look for one specifically labeled as such). This application will ask questions such as who owns the business and what type of products they sell. Provide accurate answers so that they match up with what's listed on Amazon when it comes time to apply.
Step 3: Pay Fees and Receive Approval
Once all of this information has been collected and reviewed by staff members at your local licensing agency, they'll let you know whether or not they approve of your application. If they do approve it, they'll send over paperwork that needs to be filled out and signed before proceeding any further.
Once you have been approved, they will send you a letter letting you know that they have received your application and will send out your official license within 14 days of approval. You should receive this letter by email or mail (depending on which option you choose when applying).
Benefits of Amazon Business License
The benefits associated with Amazon Business are enough to make any seller rethink the idea of operating their business on a personal account.
- If a seller uses a tax resale certificate and fails to submit a tax form, they can lose their seller privileges.
- The seller has the ability to list items that are not allowed to be sold on Amazon.com (such as brand owner, gray market, and unlicensed products).
- Items sold using a third-party FBA label will continue to count towards the seller's total monthly sales revenue.
- All sellers who want/have an Amazon Merchant account can sell on Amazon Business without having to pay Amazon any out-of-pocket fees or charges (including listing fee and variable closing costs).
- Merchants will have access to large buyer groups via the centralized buy box, which could prove beneficial for moving larger volumes of inventory.
- Merchants will have access to wholesale pricing for certain products such as small appliances and hardware, which means lower overall selling prices for all selling units that are sold via Amazon Business Licensing.
- Merchants will have the ability to upload their own images via Seller Central or use product images from other 3rd party websites like Google Images (in addition to Product Advertising API).
- Sellers will be able to create custom error pages for customer service purposes for
Conclusion
Being organized and showing attention to detail while getting a license are two keys to success. Well, now you have a full understanding of how to get an Amazon Business License. If you want to run your online shop smoothly and fulfill orders with ease, this is the best option to go for. You might also want to make use of Amazon Seller Central, as it will help you manage your inventory and track sales. While the requirements vary by state, Amazon sellers should not be daunted by the task of applying for an Amazon business license.