Learn from one seller’s mistakes made selecting, sourcing and importing products from China, to sell on the Amazon marketplace.
This post is by the author of the Garlic Press Seller blog, and is written anonymously to protect their business.
I have been an Amazon FBA seller for three years now. I am a big believer in sharing knowledge, and that you can learn everything you need to start selling online from freely available articles.
Based on that perspective I started my web blog and in this post, I want to tell you about my three biggest FBA fails. Hopefully people can learn from my errors and it might even prevent you from making the same mistakes that I made.
You shouldn’t be paying for Amazon’s mistakes. Here’s how to check if you are paying more than you need to, and recover what you’re owed.
For Amazon sellers, FBA is hugely important. It lets you store your inventory in Amazon’s fulfillment centers while Amazon take care of shipping your orders and providing customer service. This streamlines your operation, making your business more streamlined and efficient. It also makes your products eligible for Prime, helping you grow sales.
Amazon are known for their industry-leading processes and sophisticated technology, so you are in good hands with FBA. But even Amazon make mistakes. With more than 2 billion marketplace items shipped through FBA per year, even a tiny percentage of errors really adds up. Those could be overcharging of FBA fees, lost inventory, incorrect customer refunds and more.
Amazon pick up some of those mistakes themselves, but others slip through the cracks. You could be owed money for issues that you know nothing about.
So how do you go about finding them and getting a refund? There are a number of methods, and we will cover them all here, including third-party services that automate the whole process for you.
Tejraj is looking for a company to help him expand to Europe. How can he find a distributor… and is that even the right option?
We are a women’s lifestyle sneaker manufacturer based in India, but we also have our own registered company in France. Our products are pure leather, and range from €100 to €125. Currently, we are selling on Amazon India, through an online distributor, and have our product in stores in india.
I am more interested in the European market though. Our product will soon be available in stores in France and I want to sell on Amazon UK and France through FBA. But because we are based in India, I am looking for a third party vendor to assist us, and do it on our behalf.
— Tejraj P., India
Alex Knight interviews attorney Paul Rafelson about US sales tax for Amazon FBA sellers, and the MTC’s amnesty. Should you opt in?
As you may have seen, sales tax is a rather hot topic for Amazon sellers at the moment, following the Multistate Tax Commission’s decision to hold a US sales tax amnesty for online sellers.
With the October 17th deadline looming, there is much debate about whether Amazon sellers are even liable for sales tax, and whether they should make a voluntary disclosure under this amnesty. This week, I spoke to Paul Rafelson, a state and local tax attorney, to get his opinions on both of these topics.
What Paul said surprised me, as it was very different to the orthodox view of FBA and sales tax. Ultimately, he believes that Amazon sellers who fulfill their orders using FBA may not be liable for sales tax at all. His contention is that sales tax “nexus”, usually the key consideration for Amazon FBA sellers, is actually irrelevant, because Amazon itself is the “retailer” under sales tax law and should be responsible for collecting sales tax themselves.
We also talked about the MTC amnesty, which Paul believes Amazon sellers should not comply with because, in his opinion, it is a bad policy, based on a weak understanding of the realities of selling on Amazon. He also fears that if sellers comply, they could be hit with further taxes, such as income tax and franchise tax, and end up crippled by a huge compliance burden.
You can watch the full interview with Paul above, and we’ve also included a full transcript of the conversation.
Alex Knight looks at FBA prep: why it’s important, why sellers decide to outsource, and how to choose the right FBA prep service
Preparing your inventory for FBA can prove frustrating. You’re running low on stock at the Fulfillment Center, orders are pouring in but you’ve hit a bottleneck – you can’t prepare your inventory quick enough to meet demand.
At this point, you decide it’s time to outsource your FBA prep to a third party but there’s so many factors to consider that you’re a little lost. You’re essentially handing responsibility for part of your business over to a third party, so you want to be absolutely sure you’ve considered everything and made the right decision.
To help you decide, we’ve explained what FBA prep is, identified why many sellers choose to outsource it and explored some of the most important factors to consider when choosing an FBA prep service.