Avoid These 8.5 Pitfalls of Being an Amazon Seller

Why not hitch yourself to Amazon and become an Amazon Seller? It is like the Holy Grail of eCommerce. Enter their eco-system and be a part of their logistics, streaming Prime, and grocery business. 3 out of 4 sales from eCommerce comes from Amazon.

Done correctly your Amazon store can bring you an income in the five or six figures every year. Furthermore, if you just dabble you may find yourself hitting one of the 8 Pitfalls of being an Amazon Seller.

Here are the 8.5 Pitfalls

Pitfall #1 Failure to Set Up an Actual Business:
Amazon sells billions through its independent sellers. But they don’t post their Independent Seller’s failure rate of 96.8%. One of the reasons is that people fail to set up their businesses. They don’t set up a business entity, or get a business license, business banking account, or business tax ID. If you truly want to succeed act like a million-dollar start-up.

Pitfall #2 Proper Tax Set-up:
Someone has to pay taxes. The buyer or seller. Somebody has to pay. At some put when you are making sales the tax man comes to get his money. Depending on where your business is located. State taxes have to be collected. You can avoid this pitfall by having a reseller’s certificate and investing in a tax consultant.

Pitfall #3 Drop Shipping
Drop shipping used to be Taboo with Amazon. Now they have it in their Seller’s University. As long as you…