Mahnoor

  • US LLC Registration Guide

    Article 1: How to Form an LLC in the USA (For U.S. Citizens)

    Forming a Limited Liability Company (LLC) in the U.S. is a straightforward process, and it offers numerous benefits, including liability protection for owners (members) and flexible tax treatment. If you’re a U.S. citizen looking to start an LLC, follow these steps:

    Step 1: Choose Your LLC Name

    Your LLC’s name must be unique and not too similar to existing business names in your state. The name should include the term “Limited Liability Company” or one of its abbreviations (LLC or L.L.C.). Before you finalize the name, check for availability by searching the state’s business name database and also look at trademark databases to ensure no one else is using the name nationally.

    Step 2: Designate a Registered Agent

    A registered agent is someone or an entity responsible for receiving legal documents on behalf of your LLC. The agent must have a physical address in the state where your LLC is formed. You can either act as your own registered agent or hire a professional service.

    Step 3: File Articles of Organization

    To officially form your LLC, you must file Articles of Organization (sometimes called a Certificate of Formation or Certificate of Organization) with the Secretary of State’s office. This document typically includes:

    • LLC name and address
    • Registered agent information
    • Business purpose (optional in some states)
    • Names of the LLC members or managers

    You will need to pay a filing fee, which varies by state (usually ranging from $50 to $500).

    Step 4: Create an LLC Operating Agreement

    While not required in all states, an Operating Agreement is highly recommended. This document outlines the LLC’s ownership structure, member roles, and the operating procedures. It helps prevent disputes and provides clarity on management responsibilities and profit-sharing.

    Step 5: Obtain an EIN (Employer Identification Number)

    An Employer Identification Number (EIN) is required for tax purposes and is needed to open a business bank account, hire employees, and file taxes. You can obtain an EIN for free from the IRS by submitting Form SS-4 online.

    Step 6: File for State-Specific Licenses and Permits

    Depending on your industry and location, you may need to apply for various business licenses and permits. These could include:

    • Local business licenses
    • Sales tax permits
    • Professional licenses (if applicable)
    • Health or safety permits (for certain industries)

    Check with your state and local authorities to ensure compliance.

    Step 7: Register for State Taxes

    If your state imposes taxes on businesses, you may need to register with the state’s Department of Revenue or equivalent agency. This could involve registering for sales tax, employment tax, or other business-specific taxes.

    Step 8: Maintain LLC Compliance

    After your LLC is formed, you must stay compliant with state and federal regulations. This includes:

    • Filing annual reports (if required in your state)
    • Paying state franchise taxes or annual fees
    • Keeping accurate records of your LLC’s financials

    Article 2: How to Form an LLC in the USA (For Non-U.S. Citizens)

    Forming an LLC in the U.S. as a non-U.S. citizen is possible, and the process is generally similar to what U.S. citizens go through. However, there are some additional considerations, especially regarding taxation and documentation. Here’s a step-by-step guide:

    Step 1: Choose Your LLC Name

    As with U.S. citizens, your LLC’s name must be unique and include “Limited Liability Company” or an abbreviation (LLC or L.L.C.). You should check the state’s business name database to ensure availability, and also confirm there are no conflicting trademarks.

    Step 2: Designate a Registered Agent

    Since you’re a non-U.S. citizen, you’ll need a registered agent who has a physical address in the state where your LLC is formed. A registered agent can be an individual or a service that specializes in providing this function.

    Step 3: File Articles of Organization

    The next step is filing Articles of Organization (sometimes called a Certificate of Formation) with the Secretary of State. Non-U.S. citizens follow the same procedure as U.S. citizens, and the form typically requires:

    • LLC name and address
    • Registered agent information
    • Names of LLC members (can be individuals or entities)

    The filing fee varies by state (generally between $50 and $500).

    Step 4: Create an LLC Operating Agreement

    Although an Operating Agreement is not always legally required, it’s essential for establishing clear rules about the operation of your LLC, especially when you are working with partners. It defines the ownership structure, responsibilities of the members, and profit distribution.

    Step 5: Obtain an EIN (Employer Identification Number)

    As a non-U.S. citizen, you will need an EIN for your LLC. This number is required for tax filing, opening a U.S. business bank account, and hiring employees. Even if you don’t have a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you can still apply for an EIN by submitting IRS Form SS-4. You may be asked to provide your home country’s address and possibly additional documentation.

    Step 6: Open a U.S. Business Bank Account

    To open a business bank account for your LLC, most banks require an EIN. You may also need to be physically present in the U.S. in some cases, although some banks allow remote opening if you meet specific criteria.

    Step 7: File for State-Specific Licenses and Permits

    Depending on the type of business and the state in which you’re forming your LLC, you may need to apply for state or local business licenses, sales tax permits, or industry-specific permits. It’s essential to check the requirements in your state.

    Step 8: Register for State Taxes

    Even as a non-U.S. citizen, if your business will have a presence or employees in a state, you may need to register for various state taxes, such as sales tax, employment tax, or state income tax. Check with your state’s tax authority to determine what’s required.

    Step 9: Stay Compliant with Ongoing Requirements

    After forming your LLC, you must remain compliant with state regulations. This includes:

    • Filing annual reports
    • Paying any required franchise taxes
    • Maintaining good standing with the state

    Additional Considerations for Non-U.S. Citizens:

    1. Taxation: Non-U.S. citizens may be subject to different tax treatment, including potential withholding taxes on U.S.-source income. It’s crucial to consult with a tax advisor familiar with U.S. tax laws for non-resident owners.
    2. Foreign Ownership Restrictions: Most states do not have restrictions on foreign ownership of LLCs, but it’s important to ensure that your state’s laws allow non-U.S. citizens to form LLCs.
    3. Personal Liability: Non-U.S. citizens who own LLCs in the U.S. may need to consider how their LLC fits within their home country’s tax and legal framework, particularly when it comes to foreign income and liability.

    Conclusion:

    Forming an LLC in the U.S. as either a U.S. citizen or a non-U.S. citizen is a process that requires careful attention to legal requirements, tax obligations, and state-specific regulations. Non-U.S. citizens may face additional challenges, such as securing an EIN and navigating tax complexities, but with the right preparation, it’s entirely feasible to set up and successfully operate a U.S.-based LLC.

    For both U.S. citizens and non-U.S. citizens, consulting with legal and tax professionals is highly recommended to ensure full compliance with all applicable laws and to make the most informed decisions regarding your LLC.

  • Amazon Account Creation Guide

    Creating an Amazon account is a straightforward process. Here’s a step-by-step guide you can use for your article:

    How to Create an Amazon Account: A Step-by-Step Guide

    1. Visit the Amazon Website:

    • Open your preferred web browser and go to Amazon’s homepage or the relevant Amazon website for your country (e.g., amazon.co.uk, amazon.in, etc.).

    2. Find the “Create Account” Button:

    • On the Amazon homepage, locate and click the “Account & Lists” dropdown menu at the top right corner of the page.
    • In the dropdown menu, click on “Start here” next to the “New customer?” text to begin the sign-up process.

    3. Enter Your Details:

    • You’ll be directed to the Create Account page. Here, you’ll need to provide the following information:
      • Name: Enter your full name.
      • Mobile Number or Email Address: Provide a valid email address or a mobile number. Ensure this is an email you have access to, as you’ll need it for verification.
      • Password: Choose a strong password (at least 6 characters long, preferably a mix of upper and lower case letters, numbers, and symbols).
      • Re-enter Password: Confirm the password by entering it again.

    4. Verification Process:

    • After entering your details, click on “Create your Amazon account.”
    • Amazon may ask you to verify your email address or phone number. If you provided an email, check your inbox for a verification email. If you provided a phone number, you will receive a one-time password (OTP) via SMS. Enter the OTP or click the verification link as instructed.

    5. Add Your Address:

    • Once your email is verified, you will be prompted to add a shipping address. This is essential for when you make purchases.
      • Enter your name, address, phone number, and delivery preferences.
      • You can add multiple addresses if needed (e.g., home, office).

    6. Enter Payment Information:

    • To complete your Amazon account setup, you’ll need to add a payment method.
      • Credit or Debit Card: You can add a valid card for payments.
      • Amazon Gift Card or Promotional Code: You can also apply gift cards or promotional codes if you have any.

    7. Select Your Preferences:

    • Amazon will ask you about preferences for personalized content, promotional emails, and recommendations. You can choose whether to accept or decline these options.

    8. Complete Your Setup:

    • After filling in all necessary information, your Amazon account will be ready. You’ll be directed to the homepage, where you can start shopping!

    9. Secure Your Account (Optional but Recommended):

    • Enable Two-Step Verification for added security. This requires you to verify your identity using an additional method, such as an OTP sent to your phone.

    Important Notes:

    • Account for Business: If you’re signing up for a business account, choose the “Create a business account” option when prompted.
    • Prime Membership: If you’re interested in Amazon Prime, you can sign up for a free 30-day trial after account creation.
    • Amazon Apps: You can download the Amazon app on your phone for a more convenient shopping experience.

    This guide provides a clear and concise overview of the steps to create an Amazon account. Feel free contact with us for help.

    When creating an Amazon account, you can opt for either an Individual account or a Business account, depending on your needs. Each type of account has specific requirements and features tailored for different types of users. Here’s a breakdown of the key differences and requirements for each:

    1. Individual Account

    An Individual Amazon account is primarily for personal use, such as shopping, making purchases, and accessing Amazon’s services like Amazon Prime or Amazon Music.

    Requirements for an Individual Account:

    • Email Address or Mobile Number: A valid email address or phone number is required.
    • Password: A strong, secure password for account protection.
    • Shipping Address: You must provide a valid address where your orders will be delivered.
    • Payment Method: A valid credit/debit card, or other payment options such as Amazon Gift Cards, are necessary to complete purchases.
    • Phone Number (Optional): While not mandatory, a phone number can be used for account recovery or security purposes.

    Features for Individual Accounts:

    • Personalized Recommendations: Based on your shopping behavior, Amazon suggests products tailored to your preferences.
    • Prime Membership: You can sign up for Amazon Prime (either as a trial or paid membership), which offers benefits like free shipping, video streaming, and more.
    • Wish List & Order History: You can create a wish list, track orders, and save items for later.

    2. Business Account

    A Business Amazon account is designed for individuals or companies who intend to purchase products for commercial use or to manage large orders. It offers additional features to support business needs, such as multiple users, bulk ordering, and business-oriented pricing.

    Requirements for a Business Account:

    • Business Email Address: You’ll need to provide a professional email address associated with your business (e.g., [email protected]).
    • Business Information: You will need to provide details about your business, such as:
      • Business Name
      • Business Type (e.g., Sole Proprietorship, Partnership, Corporation)
      • Tax Identification Number (TIN) or Employer Identification Number (EIN) (if applicable)
      • Business Address: The physical address of the business.
      • Phone Number: A business phone number may also be requested.
    • Payment Method: A valid business payment method, such as a credit card or corporate account, is required for transactions.

    Additional Features for Business Accounts:

    • Multi-User Account: Business accounts can be set up with multiple users, allowing team members to place orders, track purchases, and manage account settings. This feature is useful for companies with multiple employees.
    • Business Pricing & Discounts: Some business accounts get access to exclusive pricing and bulk discounts on certain items, depending on the volume of purchases.
    • Amazon Business Prime: Similar to regular Amazon Prime but with additional features for businesses, including free shipping and enhanced analytics.
    • Business Order Management Tools: Amazon provides tools to help businesses manage inventory, track orders, and generate purchase reports.
    • Tax Exemption: Depending on your region, Amazon may offer tax-exempt purchasing for businesses registered with Amazon.

    Key Differences Between Individual and Business Accounts

    FeatureIndividual AccountBusiness Account
    Account TypePersonal useBusiness and commercial use
    Required InfoName, email, address, payment methodBusiness name, email, tax ID/EIN, business address, phone number
    Multi-User AccessNoYes (multiple users with different access levels)
    PricingStandard retail pricingBulk pricing and business discounts available
    Business ToolsNoOrder management tools, reporting features
    Tax ExemptionNoPossible, depending on region and registration
    Amazon PrimeAvailable (with personal benefits)Available (with business-oriented benefits like free shipping)

    Steps to Create an Amazon Business Account

    1. Go to Amazon Business Sign-up Page: Navigate to Amazon Business or click the “Create a Business Account” link from the regular sign-up page.
    2. Enter Business Information: Fill out the required business details, including the business name, address, and tax identification number.
    3. Email Verification: You’ll be asked to verify your business email to confirm it’s valid.
    4. Add Payment Information: Provide a valid business credit card or another payment method linked to the business account.
    5. Set Up Users (Optional): After the account is created, you can add multiple users by inviting them via email. Each user can have different permissions for accessing account details.

    Important Considerations for Both Accounts:

    • Security: Regardless of the account type, it is highly recommended to enable Two-Step Verification to enhance account security.
    • Tax Implications: For Business Accounts, always consult with an accountant or tax advisor regarding tax-exempt purchases and other financial considerations.

    By clearly differentiating between the individual and business account types, you can guide users to choose the right one for their needs, whether for personal shopping or managing business purchases.

    Amazon FBA Guide

  • UK- LTD company Registration for Amazon FBA

    Creating an Amazon Seller Central account in the UK as a foreign seller (in your case, as a Bangladeshi) involves a few key steps, including setting up a UK-based business entity (a Limited Company or Ltd) to comply with UK laws and Amazon’s requirements. Below is a detailed guide to help you through the process:

    Step 1: Understand the Requirements for Selling on Amazon UK

    To sell on Amazon UK as a foreign seller, you typically need:

    • A UK business address (You may need a physical address or virtual address in the UK).
    • A bank account based in the UK or a valid international payment method (e.g., Payoneer, TransferWise, etc.).
    • A business registration in the UK (typically through setting up a Limited Company or Ltd).
    • A VAT registration (Value Added Tax), depending on your sales volume or whether you store goods in the UK.

    Step 2: Setting Up a UK Limited Company (Ltd)

    As a foreign seller from Bangladesh, creating a UK-based Ltd company is the most common route to establishing a professional business presence in the UK.

    Here’s how you can do it:

    1. Choose a Name for Your Company

    • Your company name must be unique, so you should check if the name is already in use via the UK government’s Companies House website.

    2. Register the Company

    • Online Registration: You can register the Ltd company online through the Companies House website. This is a relatively quick process and costs around £12. The registration can be completed within a few hours if all documents are in order.
    • Documents Needed: You will need to submit certain documents:
      • Company Name
      • Registered Office Address (this can be a virtual office address in the UK if you don’t have a physical office)
      • Directors’ Details (you can be the sole director if you wish)
      • Shareholders’ Information (you can hold all shares yourself)
      • Articles of Association (you can use a standard template)

    3. Appoint Directors and Shareholders

    • If you’re the only person involved in the business, you can appoint yourself as the sole director and shareholder. You don’t need to live in the UK to be a director, but you’ll need to provide a valid email and address.

    4. Get a Certificate of Incorporation

    • After registering, you’ll receive your Certificate of Incorporation from Companies House. This certificate confirms that your company is legally registered.

    5. Get a UK Business Address

    • If you don’t have a physical office in the UK, you can get a virtual office address. Virtual office providers will offer you an official UK address for business correspondence, which you can use when setting up your Amazon Seller Central account.

    6. Open a UK Bank Account or Use an International Account

    • You need a UK-based bank account to receive payments from Amazon. Some online services, like Payoneer or TransferWise, offer virtual UK bank accounts, which are acceptable for Amazon Seller Central.
    • Alternatively, you can open a business bank account in the UK through a bank or digital banking service (e.g., Revolut Business).

    7. Get a VAT Registration Number (if applicable)

    • If you plan to sell products within the UK or store products in Amazon UK warehouses (Fulfillment by Amazon or FBA), you may need a VAT registration. If your sales exceed the VAT threshold, registration is mandatory. If your sales are below the threshold, you can voluntarily register for VAT to reclaim VAT on purchases.
    • You can register for VAT on the HMRC website (HM Revenue & Customs). Amazon will ask for your VAT number during registration.

    Step 3: Register for Amazon Seller Central (UK)

    Once your UK Ltd company is set up and you have a valid UK business bank account, you can proceed to create your Amazon Seller Central account:

    1. Go to Amazon Seller Central: Visit Amazon Seller Central UK.
    2. Sign Up: Click on “Start Selling” and create a new seller account. During registration, you’ll be asked for:
      • Your business details (Ltd company registration number, company address).
      • Your VAT number (if applicable).
      • Your bank account details (UK or international bank account).
      • Identity verification documents: Amazon may ask for identification (passport, utility bills, etc.) and proof of address.
    3. Choose Your Selling Plan: Amazon offers two plans:
      • Individual Seller Plan (pay-per-item sold).
      • Professional Seller Plan (monthly subscription fee, suitable for larger sales volumes).
    4. Payment Method: Provide a payment method (credit card, Payoneer, or other international options). Make sure your payment method can handle Amazon’s fees.
    5. Complete the Verification Process: Amazon will review your application and may ask for additional documents, including proof of your company’s existence, proof of address, and identification.

    Step 4: Start Listing Products on Amazon UK

    Once your Amazon Seller Central account is active, you can start listing products and managing your sales:

    • Product Listings: You can manually create listings or use bulk uploading tools if you have many products.
    • Fulfillment Method: Choose whether you’ll handle shipping yourself (FBM – Fulfilled by Merchant) or use Fulfillment by Amazon (FBA).
    • Product Sourcing: Find suppliers for the products you plan to sell. Many sellers import products from China or other countries, including Bangladesh.

    Step 5: Consider Taxes and Legal Requirements

    • Tax Considerations: As a foreign seller, you’ll need to understand the UK tax system and whether you’ll need to charge VAT on your products. You should consult with a UK tax professional to ensure compliance.
    • Business Taxes: Your UK Ltd company will need to file annual accounts and tax returns. You’ll also need to keep detailed records of your sales and expenses.

    Summary of Steps to Start Selling on Amazon UK as a Bangladeshi Seller:

    1. Create a UK Ltd company via Companies House (includes getting a company name, director, and virtual business address).
    2. Register for VAT (if necessary) with HMRC.
    3. Open a UK business bank account or use an international payment provider.
    4. Create your Amazon Seller Central account.
    5. Start selling products and manage your store via Amazon Seller Central.

    If you need further assistance with any specific part of this process, feel free to ask! Whether it’s company formation, VAT registration, or setting up Amazon Seller Central, I’m here to help.

  • What is FBM for Amazon?

    FBM (Fulfilled by Merchant) is a fulfillment method in which the seller takes full responsibility for storing inventory and shipping orders. When you use FBA, Amazon charges a fulfillment fee and a monthly inventory storage fee.

    What is FBM for Amazon?

    Amazon is the biggest ecommerce site in the world. Having your products listed and sold on the marketplace can get you in front of a large audience. Amazon gives sellers the opportunity to fulfill orders themselves or let Amazon handle fulfillment. 

    In fact, Amazon sellers can use a combination of the following fulfillment methods: 

    • Fulfilled by Merchant (FBM) — also known as Merchant Fulfilled Network (MFN) 
    • Fulfilled by Amazon (FBA) 
    • Multi-Channel Fulfillment (MCF) 
    • Seller Fulfilled Prime (SFP) 
    • Amazon Direct Fulfillment 

    While each acronym is different, all options enable Amazon sellers to get their orders to customers’ doors. Although FBA is the most common method, depending on your business model, needs, and goals, it may be time to rethink your brand’s ecommerce fulfillment strategy. 

    In this post, we’ll go into the details of how Amazon Fulfilled by Merchant works, the pros and cons of Amazon orders that are fulfilled by the merchant, alternatives to Amazon FBM, and whether Amazon Fulfilled by Merchant (or other Amazon fulfillment services) can truly grow your business. .

    What is Amazon Fulfilled by Merchant (FBM)? 

    Amazon Fulfilled by Merchant is a fulfillment method in which an Amazon seller is responsible for fulfilling their products purchased on Amazon. FBM can be managed through a seller directly or by partnering with a third-party logistics service provider. 

    Instead of your products having Prime status and you using either Amazon’s fulfillment centers to store inventory while relying on their team to handle fulfillment, the merchant is responsible for inventory storage and placement, order fulfillment, returns, and customer service. 

    Although your Amazon products lose Prime status with Amazon FBM, there are many reasons why FBM may be the better choice for a business. 

    Amazon is an enormous ecommerce platform – and as a result, merchants are a small fish in a big pond, and are often at the mercy of the platform’s decisions. In the past, Amazon has removed Prime badges and even product listings to cope with unprecedented order volumes. At one point, Amazon even temporarily shut down its merchant support phone number, leaving brands unable to get in touch with Amazon support. 

    To ensure that their orders get fulfilled and arrive to customers on time, many FBA sellers have flocked to Amazon FBM as a more reliable alternative.   

    How does Amazon FBM work? 

    Fulfilled by Merchant works exactly as it sounds: The merchant fulfills orders when their products are sold on Amazon, either through self-fulfillment or a fulfillment service. 

    Amazon FBM is usually the only fulfillment method available to new merchants selling on Amazon, as FBA requires a few approvals, demonstrated inventory turnover, and takes time to set up. Small sellers can often fulfill orders themselves, while larger sellers are more likely to utilize a logistics network to fulfill orders. 

    Here are a few steps to getting Amazon FBM up and running (and be sure to read these common Amazon mistakes you should avoid): 

    List your products on Amazon 

    Once you create an account with Amazon Seller Central, you can begin listing your products. Make sure to include the information needed on your listings to help improve your chances of conversion using the right imagery, videos, copy, and more. 

    Be sure to have the proper Amazon marketing strategy. On such a popular marketplace, you’re bound to have competition – so you’ll need to make strategic decisions about where and how to spend your ad dollars.  

    Warehouse products in your own fulfillment center 

    Depending on the number of fulfillment centers you have at your disposal, you may be able to distribute your products to strategic locations so you can save on shipping costs and reduce your average shipping zone. If your business is still small, a storage center or even your home can be a short-term solution for warehousing. 

    Ship orders out on time 

    Once you receive an order notification, you must ship the product based on the selected delivery timeframe from the customer. Amazon provides an estimated delivery time to buyers on the offer and checkout pages so customers know when to expect an item they have ordered from you. This takes handling and transit times into consideration. You can modify your shipping and handling time and transit time to better set customer expectations. 

    You can buy shipping labels through Amazon or on your own. Either way, you must always provide ecommerce order tracking for the customer. 

    Finally, be sure to update your Amazon selling account with valid instructions for ecommerce returns for all Fulfilled by Merchant orders. When you approve a buyer’s request to return a product, Amazon sends the buyer a return label with your default return address, which must be a valid return address. 

    *These benefits are also achievable through FBM when you outsource fulfillment to a logistics provider.   

    When should I consider Amazon FBM? 

    Amazon FBM may be better for your brand if you: 

    • Have your own warehouse 
    • Are shipping large, heavy, and/or temperature-sensitive items 
    • Want a responsive and dedicated fulfillment partner 
    • Use packaging with your business’s branding (rather than Amazon-branded standard boxes) or are looking to curate the unboxing experience 
    • Don’t want to deal with complex pricing structures and extra fees 

    Amazon FBM drawbacks you need to know 

    There can be some downsides to using Amazon FBM, particularly if you don’t have an experienced fulfillment partner handling your fulfillment for you. Some of the main challenges FBM sellers face include:  

    • Learning curve: Amazon is the best at fulfilling Amazon orders, so giving up their perfected process may be tough. Additionally, FBA sales do not always translate to Amazon FBM sales. 
    • No Amazon Prime badge: Amazon FBM sellers must be prepared to drive organic traffic without the Prime designation that helps them succeed on the Amazon marketplace. 
    • Spend more time on fulfillment (if self-fulfilling): If you’re managing your Amazon FBM orders, you can end up spending a lot of time packing boxes. There are hidden fees in self-fulfillment including the opportunity cost of you not completing higher-value tasks. 
    • Costs of warehousing and in-house fulfillment (if outsourcing): Outsourcing fulfillment to the pros can be costly, especially if you have a lot of inventory sitting and not selling. 

    Benefits of Amazon Fulfilled by Merchant 

    There are also many upsides to using Amazon FBM for your ecommerce fulfillment. When debating between FBA and FBM, don’t forget to consider these benefits. 

    Access Amazon’s customers with fewer fees 

    Amazon FBA fees are extensive, and can be expensive. Amazon Fulfilled by Merchant, on the other hand, only charges sellers a monthly subscription fee, a small fee per order placed, and a referral fee for each order. This way, Amazon sellers can still take advantage of the valuable real estate on Amazon’s high trafficked site, without many extra fees.  

    Avoid Amazon’s strict FBA requirements 

    Amazon is known for changing its FBA requirements without giving sellers enough time to adapt to changes (and they get much higher during Q4). These requirements can be a hassle for merchants fulfilling on Amazon.  

    With FBM, there are fewer rules and penalties for failing to comply with their strict standards for each Amazon order. 

    Retain greater control of your business 

    With Amazon FBA, your branding takes a hit. Customers receive a box with Amazon’s branding — not yours. Customers may associate your products with Amazon and will communicate with Amazon’s customer support if there are issues.  

    When you use FBM for the order fulfillment process, you gain more complete control of your operations and can better ensure you are providing the customer experience you want. 

    Get better support 

    For support, Amazon is known for being hard to get in touch with a human being. If you opt to use Amazon FBM instead, you can partner with a professional fulfillment company that can provide quicker and more thorough support when issues arise.  

    Amazon FBM fees 

    Amazon FBM works on a fee-based structure, and there are three main fees: referral fees, a monthly subscription fee, and a fee for each item sold. 

    Referral fees 

    Since your products are listed on Amazon and not your own site, each sale made is considered a referral. The total referral fee will depend on the type of product you sell, and can range from 6% to 45%. 

    Fee Category Referral fee percentages Applicable minimum referral fee (applied on a per-unit basis unless otherwise noted) 
    Amazon Device Accessories 45% $0.30 
    Amazon Explore 30% for Experiences $2.00 
    Automotive and Powersports 12% $0.30 
    Baby Products 8% for products with a total sales price of $10.00 or less, and  15% for products with a total sales price greater than $10.00 $0.30 
    Backpacks, Handbags, and Luggage 15% $0.30 
    Base Equipment Power Tools 12% $0.30 
    Beauty, Health and Personal Care 8% for products with a total sales price of $10.00 or less, and  15% for items with a total sales price greater than $10.00 $0.30 
    Business, Industrial, and Scientific Supplies 12% $0.30 
    Clothing and Accessories 17% $0.30 
    Compact Appliances 15% for the portion of the total sales price up to $300.00, and  8% for any portion of the total sales price greater than $300.00 $0.30 
    Computers 8% $0.30 
    Consumer Electronics2 8% $0.30 
    Electronics Accessories1 15% for the portion of the total sales price up to $100.00, and  8% for any portion of the total sales price greater than $100.00 $0.30 
    Everything Else3 15% $0.30 
    Eyewear 15% $0.30 
    Fine Art 20% for the portion of the total sales price up to $100.00,  15% for the portion of the total sales price greater than $100.00 up to $1,000.00,  10% for the portion of the total sales price greater than $1,000.00 up to $5,000.00, and  5% for the portion of the total sales price greater than $5,000.00 — 
    Footwear 15% $0.30 
    Full-Size Appliances 8% $0.30 
    Furniture 15% for the portion of the total sales price up to $200.00, and  10% for any portion of the total sales price greater than $200.00 $0.30 
    Gift Cards 20% — 
    Grocery and Gourmet 8% for products with a total sales price of $15.00 or less, and  15% for products with a total sales price greater than $15.00 — 
    Home and Kitchen 15% $0.30 
    Jewelry 20% for the portion of the total sales price up to $250.00, and  5% for any portion of the total sales price greater than $250.00 $0.30 
    Lawn and Garden 15% $0.30 
    Lawn Mowers and Snow Throwers 15% for products with a total sales price of up to $500.00  8% for products with a total sales price greater than $500.00 $0.30 
    Mattresses 15% $0.30 
    Media – Books, DVD, Music, Software, Video 15% — 
    Musical Instruments and AV Production 15% $0.30 
    Office Products 15% $0.30 
    Pet Products 15%, except 22% for veterinary diets $0.30 
    Sports and Outdoors 15% $0.30 
    Tires 10% $0.30 
    Tools and Home Improvement 15% $0.30 
    Toys and Games 15% $0.30 
    Video Game Consoles 8% — 
    Video Games and Gaming Accessories 15% — 
    Watches 16% for the portion of the total sales price up to $1,500.00, and  3% for any portion of the total sales price greater than $1,500.00 $0.30 

    Source: Amazon Seller Central 

    Monthly subscription fee 

    Amazon offers a subscription fee for the Pro FBM service that costs $39.99 per month. By subscribing to this plan, you can waive additional fees when a product is sold. 

    Per-item selling fee 

    The per-item selling fee is $0.99 for each item sold. This fee can be waived if you sign up for the Pro FBM plan. 

    Other fees you’ll encounter 

    If you partner with a 3PL to handle Amazon FBM, there are costs like storage and fulfillment costs. If you do it yourself, you may think you’re saving money, but there are always opportunity costs with the amount of time you’re spending packing boxes and running to the local UPS store. 

     

    Amazon FBM FAQs

    Here are answers to some common questions about Amazon FBM. 

    How much does Amazon FBM cost? 

    Amazon FBM costs will vary for each business. In general, FBM costs include: 

    • A monthly subscription fee to sell on Amazon (either the Individual plan at $0.99 per item sold, or the Professional plan at $39.99 per month) 
    • A small fee per order placed 
    • A referral fee for each order  
    • Fulfillment costs like labor, warehousing space, insurance, and packing materials (though partnering with a fulfillment provider can help you avoid some of these costs). 

    Should I choose FBM or FBA? 

    Your brand should choose the Amazon fulfillment strategy that meets your needs, saves you time, and boosts your profit margins. For some brands, this solution will be FBA, and for others, it will be FBM.  

    Amazon FBA may be a good choice for brands that:  

    • Need warehousing space 
    • Want to outsource fulfillment 
    • Don’t have customer service or returns management in-house 
    • Want to leverage the Prime badge  

    Amazon FBM may be better if you: 

    • Have your own warehouse 
    • Are shipping large, heavy, and/or temperature-sensitive items 
    • Want a responsive and dedicated fulfillment partner 
    • Use packaging with your business’s branding (rather than Amazon-branded standard boxes) or are looking to curate the unboxing experience 
    • Don’t want to deal with complex pricing structures and storage fees 

    Do Amazon FBM sellers need to package their products? Yes, Amazon FBM sellers are responsible for packing items in shipment packaging. This is a plus for many brands, as you are free to use your own branded packaging, instead of Amazon-branded boxes and poly mailers. You can also customize the unboxing experience more easily, and curate a positive experience.

    Is Amazon FBM the same as Drop-shipping? 

    Amazon FBM is a form of dropshipping. Using FBM, a merchant sells their products on the Amazon platform, but the merchant is the one responsible for storing inventory, fulfilling orders, and shipping to the end customer.

    What is Amazon MFN? 

    Amazon Merchant Fulfilled Network (MFN) is another term for Amazon FBM.

  • Amazon FBA [Fulfillment by Amazon]

    January 01. 2025 By Monir Hossain

    If you’re thinking about starting an Amazon FBA business, but are unsure if this business model is for you, or how to get started, you’re in the right place.

    Selling on Amazon is without doubt one of the most lucrative business models online today. It’s also ideally suited for digital nomads traversing the globe as it can be launched and managed entirely online!

    In fact, when I decided to try starting an amazon business, I had no idea that one small and seemingly insignificant product would grow to generate over 1 million dollars in revenue within 1/2 years!

    Seven figures sounds like a lot, but all you need to make that amount of money on Amazon is one product, priced at $30, selling 100 units a day. And with over 300 million paying users on the most trusted ecommerce brand online, that is completely doable.

    I’ll delve more into our story a bit later in the article, for now, if you want to get right to the meat and potatoes of how to start a 7 figure Amazon FBA business, here’s the short version;

    Table of Contents

    • How to Start an Amazon FBA Business in 2024 – TL;DR
    • What is Amazon FBA?
    • How Does Amazon FBA Work?
    • How to Start a 7 Figure Amazon FBA Business in 2024; 8 Actionable Steps
    • Step 1. Choose Your Niche
    • Step 2 – Find Products to sell on Amazon FBA
      • Guidelines for Product Research for Amazon FBA
      • Assessing the Demand of a Product
      • Best Amazon FBA Business Product Research Tools
      • Assessing the Competition
    • Step 3 – Source Your Private Label Products
      • Some Negotiation Tips
      • How to use the Amazon FBA Calculator and Calculate the Financial Viability of your Products
      • Testing Your Products
      • Building Relationships With Your Suppliers
    • Step 4. Establishing Your Brand
      • Your Brand Name
      • Your Brand Design
    • Step 5. Create Your Seller Account
    • Step 6. Shipping Your Amazon Product
      • Using a Third Party Inspection Service
    • Step 7. Launching Your Products on Amazon
      • 1. Optimize Your Listing
      • 2. Focus on Getting Reviews
      • 3. Invest in Amazon Sponsored Ads
      • 4. Create Keyword-Rich FAQ’s on Your Listing
      • 5. Engage in Influencer Marketing
    • Step 8. Building Your ‘Off Amazon’ Audience
      • Influencer Marketing
      • Other ‘Off Amazon’ Methods
    • Is Starting an Amazon FBA Business Still Worth It?
      • Our First Full Year of Growth
    • Some Key Lessons Learned
      • 1. Always remember Amazon is a 3rd party site, you are not in control, therefore it will be frustrating!
      • 2. The later you come into this game, the longer term you have to plan.
      • 3. If you want to play in Amazons Garden, you’ll have to play with their toys!
      • 4. Don’t get caught up in operational tasks and neglect the marketing
      • 1. Images
      • 2. Your Product Listing
      • 3. Reviews
      • 4. Maintaining a High Seller Rating
      • 5. Sales Velocity + Conversions
      • 6. Stay In Stock
      • 7. CANI
    • An Interview With a Successful Amazon Seller and World Traveler
    • How to Start an Amazon FBA Business –  Frequently Asked Questions
      • Do You Need a Business License To Sell Amazon FBA?
      • Do I Pay Taxes If I Sell on Amazon?
      • Do I Need an LLC To Sell on Amazon?
      • Can an Amazon FBA Business Make You Rich?
      • How Much Is Amazon FBA per Month?
      • How Much Does It Cost To Start an Amazon FBA Business?
      • How Much Money Do I Need To Start an Amazon FBA Business?
      • Can I Sell on Amazon Without an SSN?
      • Can You Start an Amazon Business With No Money?
      • Is the Amazon FBA Business Model Still Profitable in 2024?
      • Do I Need an Amazon FBA Business Plan?
      • How Do You Find Existing Amazon FBA Businesses for Sale?
      • How Do You Create an Amazon Storefront?
      • Who Has the Best Amazon FBA Business Course?
      • Thanks For Reading!

    How to Start an Amazon FBA Business in 2025

    1. Choose your niche & build your audience – The landscape has changed since we built our first Amazon FBA business. There are a lot more 3rd party sellers on the platform and consequently the competition has significantly increased. When we started back in 2016, you could get away with finding a product, listing it and letting Amazon do its magic, (a bit like the early days of SEO).

    However, nowadays, I highly recommend building your own audience first. Choose your niche, build an email list and then when you launch your product on Amazon, you have a list of engaged people you can promote your product to. These launch customers will kick start your sales velocity and give you a head start on reviews, which combined will kick into gear the Amazon magic!

    2. Find a popular product within your niche to sell – Start with just one, trust me, one is enough. Use the Amazon bestsellers list to start your product research. Look for something that sells for a decent price point $20 – $50 (for good profit margins). Ideally weighs under 2lbs (to keep shipping costs down) and is in demand on the platform (determined by number of products, reviews, seller rankings etc).

    3. Source your products – Use manufacturing marketplaces like GlobalSources, Alibaba, DHGate etc., or to make your life a whole lot easier, use Junglescouts Supplier Database. With their fingers firmly in all sections of the Amazon pie, these guys are the best at what they do and their supplier database will save you hours of frustrating research. Check it out, you can thank me later.

    4. Create your own brand name & design – Without a doubt, our brand was a major reason for our success. Don’t let this hold you up, but get your creative juices flowing here and come up with a name and logo to help you stand out from the crowd!

    5. Create your seller account – Before you can ship products to Amazon, you’ll need an Amazon seller account, but don’t set it up too early as you have to pay a monthly fee for the privilege. When you place your order for your first batch of products, get your images, listing, keywords and launch strategy prepped and then open your Amazon seller account when they’re ready to ship.

    (NB: Rumor is that it’s taking some time for new sellers to open accounts on Amazon at the moment so it might be worth doing this ahead of time).

    6. Ship your product – For some reason, this is the stage that many new sellers find intimidating. Fear not, your supplier will help you and there are a million Amazon groups you can join to ask for advice through the process.

    7. Launch your product on Amazon – Yippee! You’re live on Amazon! Make sure your listing looks tip-top, with great images, a compelling keyword-rich headline, great bullet points and a detailed product description. Then follow our launch strategy as below.

    Cutting through the fluff, the most important factors for ranking on Amazon and growing your Amazon FBA business are high conversion rates and consistent sales velocity. From Day 1 you need to be generating daily sales. Even if it’s only 5 – 10 sales a day.

    This is where your audience comes in! Promote your launch to your email list. Tell everyone you know your product is available for sale on Amazon. Run Amazon PPC ads. Send your products to influencers to review and send traffic. Whatever you can do to generate daily sales. That’s your goal! NB: Reviews are important as they contribute to higher conversion rates, which contribute to more sales!

    8. Build your ‘off Amazon’ audience – The secret to our success was the marketing we did ‘off Amazon’. The fastest way to get this off the ground is to approach influencers in your niche, with large audiences. Send them a product to review and talk about, and give them a link for people to purchase.

    I can’t express strongly enough how well this strategy works! Even more so in 2024 with the number of influencers looking for brand collaborations. (A good friend of mine has recently increased his Shopify sales tenfold using this very strategy).

    I go into each of these points in much greater detail throughout this post, which I urge you to bookmark and re-read, section by section as you launch your Amazon FBA business.

    So before we get into the nitty gritty, just to be sure we’re on the same page;

    What is Amazon FBA?

    FBA means ‘fulfilled by Amazon’. This means they handle all product fulfillment including packing, distribution, returns, etc. As a seller, you send products to their warehouses (fulfillment centers), market your products to their (and your) audience, and let Amazon handle the rest!

    They do have a service called FBM, which means you sell on their platform but fulfill all orders yourself. This works if you’re a big company already selling all over the world with your own fulfillment centers. But if you’re just starting out I highly recommend FBA.