{"id":4250,"date":"2024-02-08T10:16:48","date_gmt":"2024-02-08T10:16:48","guid":{"rendered":"https:\/\/www.zonwizard.com\/blog\/?p=4250"},"modified":"2024-02-08T10:16:48","modified_gmt":"2024-02-08T10:16:48","slug":"ultimate-guide-to-selling-on-amazon-north-america-conquer-new-markets-with-zonwizard","status":"publish","type":"post","link":"https:\/\/www.zonwizard.com\/blog\/ultimate-guide-to-selling-on-amazon-north-america-conquer-new-markets-with-zonwizard\/","title":{"rendered":"Ultimate Guide to Selling on Amazon North America: Conquer New Markets with ZonWizard!"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Lots of European Sellers seeking our support, often express their concerns about how to take the first steps towards expanding their sales in the North American marketplace, which, although it seems too distant and challenging, is too rich and tempting not to try.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re interested in learning about the initial steps needed to enter the Amazon market with the highest sales, then this article is for you.<\/span><\/p>\n<p><!--more--><\/p>\n<p><span style=\"font-weight: 400;\">In ZonWizard, we also support the North American market and can assist Amazon sellers in maximizing profits and tax management, even for sales made on marketplaces like amazon.com, amazon.ca, amazon.com.mx.<\/span><\/p>\n\t\t\t\t\t<script type=\"text\/javascript\">\n\t\t\t\t\t\tvar gCaptchaSibWidget;\n                        var onloadSibCallbackInvisible = function () {\n\n                            var element = document.getElementsByClassName('sib-default-btn');\n                            var countInvisible = 0;\n                            var indexArray = [];\n                            jQuery('.sib-default-btn').each(function (index, el) {\n                                if ((jQuery(el).attr('id') == \"invisible\")) {\n                                    indexArray[countInvisible] = index;\n              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alt=\"loader\"><\/div>\n\t\t\t\t<input type=\"hidden\" name=\"sib_form_action\" value=\"subscribe_form_submit\">\n\t\t\t\t<input type=\"hidden\" name=\"sib_form_id\" value=\"4\">\n                <input type=\"hidden\" name=\"sib_form_alert_notice\" value=\"Please fill out this field\">\n                <input type=\"hidden\" name=\"sib_form_invalid_email_notice\" value=\"Your email address is invalid\">\n                <input type=\"hidden\" name=\"sib_security\" value=\"74a10c2082\">\n\t\t\t\t<div class=\"sib_signup_box_inside_4\">\n\t\t\t\t\t<div style=\"\/*display:none*\/\" class=\"sib_msg_disp\">\n\t\t\t\t\t<\/div>\n                                            <div id=\"sib_captcha_invisible\" class=\"invi-recaptcha\" data-sitekey=\"6LcMN7gUAAAAAD-_qJb0nFTTZqsPjxY-UjJ2aAoa\"><\/div>\n                    \t\t\t\t\t\r\n<div class=\"form-container\">\r\n        <h2 class=\"form-title\"><strong>Subscribe to Newsletter<\/strong><\/h2>\r\n        <p>Articles, mini-guides and updates on 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<\/div>\t\t\t\t<\/div>\n\t\t\t<\/form>\n\t\t\t<style>\n\t\t\t\tform#sib_signup_form_4 {background-color: #727cf5;padding: 30px;border-radius: 30px;margin: auto; -moz-box-sizing:border-box; -webkit-box-sizing: border-box; box-sizing: border-box; color:white; margin-bottom:20px } form#sib_signup_form_4 input[type=text],form#sib_signup_form_4 input[type=email], form#sib_signup_form_4 select { width: 100%; border: 1px solid #bbb; height: auto; margin: 5px 0 0 0; background-color:#e7e9fd;} form#sib_signup_form_4 .sib-default-btn { width:100%; margin: 5px 0; padding: 10px 12px; color:#727cf5; background-color: #fff; border: 2px solid #fff; font-size: 14px; font-weight:400; line-height: 1.4285; text-align: center; cursor: pointer; vertical-align: middle; -webkit-user-select:none; -moz-user-select:none; -ms-user-select:none; user-select:none; white-space: normal; border-radius: 500px; } form#sib_signup_form_4 .sib-default-btn:hover { background-color: #727cf5;color: #fff;border: 2px solid #fff;} form#sib_signup_form_4 p{ margin: 10px 0 0 0; } form#sib_signup_form_4 .sib-LANGUAGE-area{ display: none; } .form-input { width: 47%; margin-bottom: 10px; display:inline-block; } .text-white{color:white} .form-container { max-width: 400px; margin: auto; color: white; text-align: center } .form-title { margin-bottom: 0px; margin-top: 0px }form#sib_signup_form_4 p.sib-alert-message {\n    padding: 6px 12px;\n    margin-bottom: 20px;\n    border: 1px solid transparent;\n    border-radius: 4px;\n    -webkit-box-sizing: border-box;\n    -moz-box-sizing: border-box;\n    box-sizing: border-box;\n}\nform#sib_signup_form_4 p.sib-alert-message-error {\n    background-color: #f2dede;\n    border-color: #ebccd1;\n    color: #a94442;\n}\nform#sib_signup_form_4 p.sib-alert-message-success {\n    background-color: #dff0d8;\n    border-color: #d6e9c6;\n    color: #3c763d;\n}\nform#sib_signup_form_4 p.sib-alert-message-warning {\n    background-color: #fcf8e3;\n    border-color: #faebcc;\n    color: #8a6d3b;\n}\n\t\t\t<\/style>\n\t\t\t\n<p>&nbsp;<\/p>\n<h2><strong>What are the tax requirements for selling on Amazon North America?<\/strong><\/h2>\n<h2><\/h2>\n<h3><strong>1. EIN &#8211; Employer Identification Number<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The first thing you have to do to sell in North America is to obtain the EIN, the federal <strong>tax identification number for businesses<\/strong>, issued by the IRS. The IRS (Internal Revenue Service) is the American revenue agency and is the national tax authority of the United States that issues this 9-digit code.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In general, you need to apply for the EIN if you have employees, operate as a company, or if you need to file specific tax returns. So if you are an international ecommerce seller who wants to sell on online platforms in the United States, <strong>you<\/strong> <strong>need to obtain an EIN to expedite your tax obligations<\/strong>. Additionally, this code is essential for importing and clearing your goods in the United States.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To obtain an EIN, you can fill out Form SS-4 (Application for Employer Identification Number) provided by the IRS and submit it by mail, fax, online, or by calling directly.<strong> It takes 2 to 4 weeks to obtain\u00a0 the EIN<\/strong>, and for more information, you can visit and follow the IRS instructions at this link:<\/span><a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/how-to-apply-for-an-ein\"> <span style=\"font-weight: 400;\">IRS Link<\/span><\/a><span style=\"font-weight: 400;\"> Alternatively, you can get assistance from your international tax advisor to complete the entire registration process.<\/span><\/p>\n<p><span class=\"colour\"><span class=\"x_-1164479834size\"><span class=\"font\"><span class=\"size\"><a href=\"https:\/\/www.zonwizard.com\/features?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=Discover_AccountingTool#accounting\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2418 size-large\" title=\"Simplify VAT and OSS reporting for your Amazon sales \" src=\"https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng-1024x250.png?resize=650%2C159&#038;ssl=1\" alt=\"For Amazon seller. Automate fiscal reports you need to communicate to your accountant. VAT and OSS declarations in one click.\" width=\"650\" height=\"159\" srcset=\"https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=1024%2C250&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=810%2C198&amp;ssl=1 810w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=1140%2C278&amp;ssl=1 1140w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=700%2C171&amp;ssl=1 700w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=300%2C73&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=768%2C187&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=1536%2C375&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?resize=1200%2C293&amp;ssl=1 1200w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?w=1640&amp;ssl=1 1640w, https:\/\/i0.wp.com\/www.zonwizard.com\/blog\/wp-content\/uploads\/2023\/02\/Banner-ZW-Accounting-Tool-Eng.png?w=1300&amp;ssl=1 1300w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\" \/><\/a><\/span><\/span><\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>2. Nexus<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The <strong>&#8220;nexus&#8221; is the significant connection with a US state<\/strong> that requires the company to collect and remit sales tax in that state.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are three categories of Nexus: physical, economic, or marketplace, and each state decides which types of nexus to apply and what factors determine implementation.<\/span><\/p>\n<h4><strong>2.1 Economic Nexus:<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">This type of Nexus takes into consideration\u00a0 <strong>economic sales thresholds or a certain number of transactions<\/strong> to assess the substantial connection between the company and the State. Over the years, almost all states have aligned with the annual sales threshold of $100,000, but there are exceptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, in Texas, the annual sales threshold without the obligation to register for sales tax is $500,000. Or for Hawaii, the threshold is set at $100,000 in annual sales in the state and 200 transactions. In this case, when you exceed one of the two parameters, you will be required to register for sales tax in that state.<\/span><\/p>\n<h4><strong>2.2 Physical Nexus:<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">In this type of nexus, sales thresholds or transactions are not relevant, but only <strong>whether the merchandise is stored<\/strong> or if there is a physical presence in a warehouse, office, etc. For example, if you store goods in a state that applies a physical nexus, you must register for sales tax.<\/span><\/p>\n<h4><strong>2.3 Marketplace Nexus:<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">This type of nexus occurs when sales are made through a marketplace (such as Amazon or eBay). In states that apply this nexus, the responsibility for collecting and remitting sales tax is attributed to the marketplace rather than the seller.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>3. Sales Tax<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If you have a nexus in a particular state, for sales shipped to that state, you have to apply and remit Sales Tax.<\/span><\/p>\n<div class=\"box info\"><div class=\"boxInside\"><i class=\"fa fa-info-circle boxIconStyle\"><\/i> <span style=\"font-weight: 400;\">&#8220;On amazon.com, the price displayed in the listings is always net, and the Sales Tax is calculated and applied at the time of payment, based on the State and city where the product was purchased.&#8221;<\/span><\/div><\/div>\n<p><span style=\"font-weight: 400;\">Sales Tax is the equivalent of the European VAT, but this sales tax varies not only at the state level but also at the local level. So for 50 states, we could have 50 rates and 50 different legislations, in addition to the peculiarities that could be added by local authorities. Fortunately for Amazon sellers, the <strong>Marketplace Facilitator Legislation<\/strong> has been introduced in many states.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">&#8220;The Marketplace Facilitator legislation is a set of laws that shift the obligations to collect and remit sales tax from a third-party seller to the marketplace facilitator. As a marketplace facilitator, Amazon will now be responsible for calculating, collecting, remitting, and refunding state sales tax on sales made by third-party sellers for transactions destined to the states where legislation has been enacted for collection through a Marketplace Facilitator. In certain states, local taxes are not included in the Marketplace Facilitator Legislation; Amazon is not responsible for those taxes.&#8221;<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Essentially, instead of collecting sales tax from sales to customers in the state where the marketplace nexus is located, <strong>Amazon automatically calculates the sales tax<\/strong> based on the shipping location and withholds it on your behalf.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can check for which US states Amazon applies the marketplace facilitator at this link:<\/span><a href=\"https:\/\/www.amazon.com\/gp\/help\/customer\/display.html?nodeId=202211260\"> <span style=\"font-weight: 400;\">Amazon Link<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite this facilitation, <strong>there are still some scenarios that are not covered<\/strong> by the marketplace facilitator, so it may be necessary to obtain a Sales Tax Permit and file tax returns independently in some states.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, some US states may follow physical nexus legislation, and if you ship through FBA, Amazon can move your products to a fulfillment center, making it necessary to register for sales tax in that state (even if it is the marketplace that collects and remits the sales tax).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another peculiarity is that not all states adhere to the Marketplace facilitator legislation, and it is the direct responsibility of the seller to make the declaration, without the intermediary of the marketplace. So you will need a Sales Tax Permit, collect and remit sales tax to the state in question.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given the many scenarios possible, we recommend that you seek assistance from an experienced tax advisor who can assist you in regularizing your position and in fulfilling the requirements for your specific case.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>4. Physical Address<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Once you have obtained the EIN and the sales tax permit based on the criteria defined above, you will need to provide a physical address t<strong>o receive immediate communications from the IRS<\/strong>. This entity also sends letters overseas, but since the payment deadline is usually within 2 or 3 weeks from the mailing of the registered letter, it is not certain that the mail will arrive in time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you rely on international tax consultants (e.g., Avask_look at our bonuses here), this address will be provided to you by the same consultants, who will act as your tax representatives, and you will be able to have an address to receive mail, without delay.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>5. Sales and import permits for products<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Before importing your goods into the United States, it is essential to know if the products you will be selling are <strong>subject to restrictions or specific certifications for the US market<\/strong>. In particular, if we are talking about food, supplements, sunglasses, or anything that can be ingested or worn by people and animals, these products are subject to <strong>FDA (Food and Drug Administration) registration<\/strong>, which is the US government agency that regulates food and pharmaceutical products. In this case as well, you will need specialized consultancy in order to know the product requirements and obtain the necessary certifications before importing.<\/span><\/p>\n<div class=\"box info\"><div class=\"boxInside\"><i class=\"fa fa-info-circle boxIconStyle\"><\/i>\n<p><strong>Tip. No duties under $800 for your US market micro-tests.<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">When shipments enter the United States and are valued at less than $800, they are considered &#8220;low-value goods&#8221; and are exempt from customs duties. This policy is known as the &#8220;de minimis threshold&#8221; and has been established to simplify international shipments of small goods and reduce the bureaucracy associated with the customs process for relatively low-value imports.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Essentially, for shipments to the United States, no duties apply to goods valued at less than $800. By checking the duties at the time of import, you can conduct market micro-tests without paying customs duties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is important to note that this duty exemption does not apply to all types of goods, and there may be exceptions or specific restrictions for certain items. Therefore, it is advisable to ask your tax advisor (see Avask) about\u00a0 the customs policies and any additional taxes before making international shipments to the United States.<\/span><\/p>\n<\/div><\/div>\n<p>&nbsp;<\/p>\n<h3><strong>6. Other Things You Need to Know<\/strong><\/h3>\n<h3><\/h3>\n<h4><strong>6.1 NAF Program<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Through the Amazon NAF &#8220;North America Unified Account&#8221; program, sellers can use Amazon&#8217;s infrastructure in the United States to store goods and benefit from Amazon FBA (Fulfillment by Amazon) for logistics management and order fulfillment. This <strong>allows you to sell on Amazon&#8217;s marketplaces in Canada and Mexico<\/strong> without the need to open fiscal positions or warehouses in those countries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Great for checking if there is demand for your product in the initial phase of selling in these two countries. Then, based on the volume of orders, you can consider opening fiscal positions in these countries as well and storing the products locally.<\/span><\/p>\n<h4><strong>6.2 Form 1099-K<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">At the beginning of each new year, Amazon provides the IRS and the seller with Form 1099-K, which summarizes all sales made in the previous year from January 1st to December 31st in the United States. Revenues from credit card payments and third-party payment services are reported. Amazon issues Form 1099-K for sellers who exceed certain transaction volumes and earnings through the platform. In 2022, you had to exceed 200 transactions or make sales exceeding $20,000. From 2023 onwards, however, all companies that exceed a $600 turnover in the calendar year must complete the form to report the income generated on Amazon to the IRS.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;Amazon provides the seller with Form 1099-K on the &#8220;Tax Document Collection&#8221; page of the seller central.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This form can be provided to your tax advisor to certify the income obtained from sales in the United States.<\/span><\/p>\n<h4><strong>6.3 W-8BEN-E<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">This IRS form is a self-certification that attests that the company is not a tax resident of the United States of America. It is important to fill it out correctly because it allows you not to be subject to the 30% withholding tax on payments received from American clients. This is in accordance with bilateral agreements against double taxation between European countries and the United States. Therefore, if a European Amazon seller operates in the United States and wants to benefit from these tax advantages, he must fill out this form and give it to Amazon.<\/span><\/p>\n<h2><\/h2>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">You have just discovered <strong>the fundamental steps to successfully start your sales on Amazon North America!<\/strong> Thanks to this article, you now have the knowledge necessary to navigate the complex world of US taxation and regulations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By reading this far, you have learned how to obtain the EIN, how to manage Nexus and Sales Tax efficiently, how to obtain a reliable physical address, and how to address challenges related to product certifications. Additionally, you have discovered that you can leverage Amazon&#8217;s NAF program to sell in Mexico and Canada without further complications and what documents to submit to file your sales declaration in the USA: Form 1099-K and W-8BEN-E.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now the fear of the unknown can no longer hold you back from conquering new markets, and you can fully leverage the potential of Amazon&#8217;s richest market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contact us at <strong>support@zonwizard.com<\/strong> if you have any doubts about how to proceed or if you want our support to start this new adventure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ZonWizard team is here to facilitate the expansion of your business even on Amazon North America, thanks to our suite of innovative services and our international partners!<\/span><\/p>\n<p><span class=\"colour\"><span class=\"x_-1164479834size\"><span class=\"font\"><span class=\"size\"><div class=\"cta-container\">\r\n<h2 class=\"cta-h2\"><strong>Try the Accounting Tool for Free<\/strong><\/h2>\r\n<p class=\"\">It will automatically complete VAT and OSS reports and much more. If you are not yet familiar with ZonWizard's Accounting Tool, you can start your free 14-day trial by clicking on the button below<\/p>\r\n<p class=\"\"><a class=\"button cta-button\" href=\"https:\/\/www.zonwizard.com\/features?utm_source=blog&amp;utm_medium=cta_button_AccountingTool&amp;utm_campaign=Discover+Accounting+Tool#accounting\"> Learn more<\/a><\/p>\r\n\r\n<\/div><\/span><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lots of European Sellers seeking our support, often express their concerns about how to take the first steps towards expanding their sales in the North American marketplace, which, although it seems too distant and challenging, is too rich and tempting not to try. If you&#8217;re interested in learning about the initial steps needed to enter&hellip;<\/p>\n","protected":false},"author":179014711,"featured_media":4265,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[37,1],"tags":[],"class_list":["post-4250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-profit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ultimate Guide to Selling on Amazon North America: Conquer New Markets with ZonWizard! - ZonWizard<\/title>\n<meta name=\"description\" content=\"Sei interessato a capire come vendere su Amazon Nordamerica? quali sono gli step iniziali che devi sapere? 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