Amazon is undoubtedly one of, if not the biggest name in the world when it comes to marketplaces and dropshipping, being an excellent opportunity for anyone who wants to increase their audience and sales in a simpler and cheaper way than usual.

What in the beginning was just an online retail of books, in a short time it expanded its catalog and began to offer a greater variety of goods and digital media services, expanding the brand to what is now the largest digital retail store in the entire world. world.

Yes, the biggest in the world. In addition to retail, Amazon also has its own line of electronics, such as the famous Kindle, Fire TV, Amazon Echo and Alexa, and these are the company's biggest highlights, in addition to Amazon prime, individual sites, centers software development, customer service and distribution around the world.

Still not convinced? Amazon is also responsible for more than half of online sales in the United States, adding up to US$1.2 billion a day and shipped more than 5 billion products in 2017 alone.

Now, with all these numbers, we are sure that you must be wondering how to enter this field and be part of one of the most valuable companies in the world. Want to know how? Check out this article that tells you everything you need to know about what Amazon is, how it works, who the company's affiliates are and much more. Good reading!

What is Amazon

Created in 1994, in Seattle, by the current second richest man in the world, Jeff Bezos, Amazon started as a book retailer that operated in a rented garage and did not have many supporters, even being sued by Walmart and Barnes & Noble in the early days of its emergence.

Not long after, Bezos decided to diversify the catalog and, since then, the brand has not stopped growing and innovating, offering the most diverse products, from clothing to toys, from electronics to accessories and, of course, books.
In 1999 the company began to allow third-party companies to offer their products on its domain, with the purpose of helping consumers to find products, rare, personalized or unusual, but of course, again the idea expanded and, in 2005, Amazon Prime was born. , offering fast and free deliveries. From then on, the business took the form we know today.

But what is Amazon anyway? It is nothing more than a company specializing in online retail that acts as a dropshipper and marketplace, that is, offering, most of the time, third-party products that use the company's website to leverage sales and reach a much wider audience. Both dropshipping and the marketplace have already been the subjects of some of our other articles, it's worth checking out.

Among the current areas of activity of this retail giant are food (in some countries), web services, technological products such as Kindle and Alexa, in addition to the aforementioned and well-known dropshipping, retail and marketplace.

How Amazon US Works

American Amazon offers a much greater variety of products than the Brazilian branch and even Amazon Prime in the United States offers several benefits that the one in Brazil does not have, which is understandable, after all, the company's headquarters are in Seattle, which makes deliveries on the same day totally possible in that region and unfeasible in Brazil, you know?

But, in a general context, the operation is the same in both countries. Despite the greater variety of products offered on the site and the benefits that American subscribers have, the theory is the same: both in the United States and in Brazil, Amazon opens space on its site for sellers to present their products and reach a wider audience. vast and diversified and, for the consumer, there is the advantage of comparing prices of the same product with different suppliers without leaving the site, the possibility of finding not so popular products and a huge variety of items in the same place.

And, as we know, Amazon Prime subscribers pay a small annual or monthly fee, get free shipping and two-day delivery in Brazil, while in the United States, subscribers have the option of same-day delivery, they can buy using Alexa, earn cashbacks and access content and products before other users.

In summary, we can say that the American Amazon differs little from the Brazilian branch in terms of operation, after all, the processes are the same: you register, choose the plan that best suits your sales profile and list your products. Depending on the chosen plan, the products will be offered, packaged and shipped by Amazon itself. Its role is basically to keep the product list up to date and focus on marketing strategies.

Is it possible to sell on Amazon US as a Brazilian?

Yes, it is possible to sell on Amazon in the United States as a Brazilian and residing in Brazil and, contrary to what one might imagine, it is quite simple to be part of the American retailer. Check out how to do this in the next paragraphs.

The platform accepts registrations with CPF, CNPJ and also with EIN, the US equivalent of CNPJ. Before registering and starting your activities, keep in mind the taxation of each option, considering that, as a rule, taxes for legal entities are usually lower or less expressive than those for individuals.

Having chosen whether your personal or legal person documentation will be used, you need to register on the website and decide whether you want to pay the monthly fee of $39.99 or $0.99 on each sale made. These fees refer to the Professional and Individual plans, respectively. The individual plan is for sellers who have an estimated monthly sales of up to 40 products and the professional plan for those who will sell more than these 40 products.

An interesting point is that sellers who opt for the professional plan and sell through Amazon FBA (the company's storage and distribution service) are automatically classified as Prime, gaining greater prominence on the site and attracting a larger audience willing to buy more.

Once registered, it's time to catalog your products, create an ad and send the products to the retailer's warehouse, which will be responsible for storing, packaging, shipping and, if necessary, exchanging the product.

When I withdraw my funds from Amazon, do I pay tax?

The tax issue is not applied when you withdraw your funds after reaching the minimum amount for receipt, but the products that will be imported have a tax fee that must be paid by the buyer.

Anyone who purchases a product from Amazon in the US or from any other country is considered an importer and is responsible for complying with the laws and regulations regarding imports, and is also responsible for paying customs duties and taxes - which can vary from 60% to 100% of the value of the imported product – in addition to ICMS, postage by Correios and possible Anatel approval fees.

Orders transported by companies other than Correios may have these fees charged at the time of delivery. Other carriers deliver when the buyer chooses faster shipping.

Now, an important detail for you, future seller: unless you reach a minimum sales value (with Amazon fees deducted), you cannot receive your earnings. The minimum value is around $100.00

Amazon USA Affiliates

Amazon has an affiliate marketing program known as Amazon Associates. This program allows website owners, bloggers and content creators to receive a commission every time someone clicks on a link and makes a purchase on Amazon. Registration in this program is free and the tools are very simple to use, making this association advantageous for the affiliate, for the consumer and for Amazon itself.

Standard commissions range from 7% to 15%, depending on the category, on top of the value of the product purchased by those who accessed the link provided by the influencer. However, the purchase must be made within 24 hours of the click and must be a qualifying purchase, it is worth consulting the conditions on the Amazon website.

For those looking to earn more on the internet through the retailer, this can be an excellent opportunity.

US Tax Taxation for Affiliates

All Amazon associates must provide valid taxpayer information, which during the tax interview will be automatically validated. As we are talking about Amazon in the United States, this information must be related to your IRS records so that you can receive your commissions or even billing for your sales.

THE amazon is required by law to require tax information from all its associates, whether they are US citizens, residents of the country, US corporations or individuals or entities that, even though they are not natural or resident, maintain taxable income in the country.

Income earned as an Amazon affiliate is considered self-employment income, and in the US this income must be reported on your income tax return if you are physically present in the country and spend a certain amount of time doing affiliate service, because just posting links to a country's website doesn't constitute income from that country, you know?

We would like to emphasize a point that was mentioned earlier, but it is worth emphasizing: it is not necessary to have an EIN (US CNPJ) and not even a company in the country to offer its products in this retail giant, however, as we have already mentioned in other content, having an EIN number and a company, even if only digital, in the United States, guarantees you a good reduction of taxes, avoids double taxation and brings many tax benefits. So think carefully and analyze the options available to you, considering the benefits of each.

Are you thinking of start a company in the United States and bank accounts to receive your Amazon funds? Find out about America Expert's LLC and account opening services for individuals and companies. The entire service is personalized, in addition to having highly trained professionals authorized by the government to perform these services. Get in touch with us and present your ideas!