Selling in the USA
For those of you that do, would you care to share your experiences of setting up over there please?
What are the main pitfalls to watch for?
Any hints and tips on taxation etc?
I’m looking mainly as shipping to and storing goods in the States. AKA FBA.
Selling in the USA
For those of you that do, would you care to share your experiences of setting up over there please?
What are the main pitfalls to watch for?
Any hints and tips on taxation etc?
I’m looking mainly as shipping to and storing goods in the States. AKA FBA.
106 replies
Seller_UUJAfV9h2D90D
I’ve also been thinking the same for a little while now but not yet taken the plunge. I obviously don’t have any experience to share yet however below are a few points that i’ve researched which may help in some way. Are you planning on setting up an LLC over there or trading from your UK business?
- Use a prep centre that’s located in a sales tax free state (Delaware or Wyoming seem to be popular assuming that you’re physically purchasing US stock)
- Accountancy fees over there are quite a lot higher than in the UK as a watchout
- Credit seems to be difficult to obtain without a personal credit score (obviously this is difficult to get without being a US resident)
- The obvious geography of the US in comparison to the UK means that things take a lot longer to process.
The marketplace itself is very appealing. I’d also be interested if anyone has any experience that they’d care to share.
Seller_7VbclcPFFRTnc
I believe Peter had a link to a thread regarding the insurance required too
Seller_2Su3bcJXQR0sO
-US Amazon is easier than selling in Europe. Just apply, verify and you’re good to go.
-They love British brands. If you have a unique product, be sure to put the Union Jack somewhere.
-You can ship straight to FBA, but your carrier must do customs clearance DDP for you. Shipping costs is reasonable. I have account manager at DHL who will set up an DHL account for you, if you want I can provide.
-Taxation is based on which state your stock is stored. Differs for each state.
-Lots of competition. If you think you have a unique product…wrong! There will be at least 50 -100 sellers before you.
-Customers are nicer 
This group is very active, owned by Ed Rosenberg (wolf cloaked in sheep clothing). He has another more active FB group (sorry can’t find it now). But if you go to this group, you will find the other FB group.
Seller_YDtQChf7iSyyu
You don’t need insurance if you are below the insurance threshold:
"Insurance Threshold" means the applicable one of the following:
- Ten Thousand Canadian Dollars ($10,000) (if the Elected Country is Canada),
- One Hundred Thousand Mexican Pesos ($100,000) (if the Elected Country is Mexico),
- Ten Thousand U.S. Dollars ($10,000) (if the Elected Country is the United States).
Under section 9 of the [Amazon Services Business Solutions Agreement, you are required to obtain and maintain commercial liability insurance within 30 days after exceeding $10,000 in gross proceeds in sales in one month.
- Insurance.
If the gross proceeds from Your Transactions exceed the applicable Insurance Threshold during any month if the Elected Country is the United States, or each month over any period of three (3) consecutive months if the Elected Country is Canada or Mexico, or otherwise if requested by us, then within thirty (30) days thereafter, you will maintain at your expense throughout the remainder of the Term for each applicable Elected Country commercial general, umbrella or excess liability insurance with the Insurance Limits per occurrence and in aggregate covering liabilities caused by or occurring in conjunction with the operation of your business, including products, products/completed operations and bodily injury, with policy(ies) naming Amazon and its assignees as additional insureds. At our request, you will provide to us certificates of insurance, the full insurance policy, or other documents we may request for the coverage to the following address: c/o Amazon, P.O. Box 81226, Seattle, WA 98108-1226, Attention: Risk Management.
Seller_wqciCXuQbNS4p
We used to be pretty active in the US, but for a whole host of reasons, pulled out a year ago. At that point, our experience taught us the following:
- It’s pretty easy to ship direct to the US from the UK but be warned, the tariffs are punitive.
- If you’re below the threshold, (which used to be US$2,000,) your courier can clear using their customs number.
- If you’re above this, which you should be aiming to do, to make it worthwhile, then you need to get your own FEIN. This will allow you to clear goods under your own number.
- By getting the FEIN, you will be liable to file federal tax returns in the US. Even though there is a tax treaty in place between the UK and the US, you still have to file a zero return in the US. Failure to do so will attract a fine of US$10,000 for each year not filed.
- Once the goods are in the US, you will need insurance-if you’re going to go for it you wil hit the threshold in no time at all and without insurance, your goods will be quarantined.
- Forget the bit about Maryland etc. This only applies if you’re shipping FBM from an independent fulfilment centre. Amazon will place your stock in any state that they choose, and by doing so, you will be creating a nexus and may be obliged to file returns in those states too. Absolute minefield that is changing all the time so better seek professional advice on this.
- We had an account at the BOA, but you need to have a US address to get one of these. I know companies that can facilitate this, but in the end it;s just as easier to get paid into a dollar account at Transferwise.
- Once the goods are in the fulfilment centres, you’re at the mercy of the bots. We had 2,000 pieces of a product in the US and they decided, (incorrectly,) that the goods were made of pesticides and refused to sell them. We appealed, they agreed but still said that we had to recall the stock and relabel them with new stock codes. This was one of the primary reasons why we pulled out, that and the amount of scammers.
- If you can make it work, then it is very, very lucrative. But be warned. As soon as you get products into the top ten the Chinese will be right on your tail, ripping you off left right and centre.
Hope this helps.
Seller_lYQTbyYYWM9oQ
You may be interested in Amazon Seller Wallet (amazon.com) it lets you manage your global disbursements.
Seller_pEXz19pDzWCEo
We don’t sell to the US because it is against the T&C’s of most of our brand partners. Whatever you’re selling, make sure you are allowed to sell the products there.
Seller_n33KwLeg9XOvi
DOC’s (Declaration of Conformity) are a nightmare as Amazon want from the USA.
Seller_tRuvBEHDedp4q
Getting product insurance for selling into the US is extortionate
I used to sell there (not on Amazon but other sites) but this year I found it impossible to get any insurer to take me on as I also childrens stuff (toys and clothes). No insurer I approached would take me on whilst selling childrens items to the US. Even when I agreed to only sell non children items to the US the costs were very high.
I have instead agreed to remove my US international options in order to just get normal insurance and the price then fell massively.
So before you go that route get some insurance quotes first.
Seller_Hph8PV81TAUBm
Do you manufacture your own goods?
If so, unless you’re prepared to set up your own LLC there is no point. For all DOC’s you will need a physical US entity and address to publish the document. We have children’s products that we know we can do well with in the States but when we tried a very small batch Amazon took down our listings and asked for a CPC - child product certificate. Of course, we have tested the products to both the US ASTM and EU regulations but that is not enough. The document must be published by a US entity. Annnnnd at that point we gave up.
