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Amazon FBA Selling Guide 2022

The document provides an overview of selling on Amazon in 2022, including business models, fees, fulfillment options, product research, account creation, listing products, attracting customers, and automating your business. It details the various options for selling on Amazon such as private labeling, wholesale, retail arbitrage, online arbitrage, and dropshipping. It also outlines the types of fees sellers may encounter like monthly or per transaction fees depending on the account type as well as referral and closing fees.

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danishmumtaz
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0% found this document useful (0 votes)
87 views22 pages

Amazon FBA Selling Guide 2022

The document provides an overview of selling on Amazon in 2022, including business models, fees, fulfillment options, product research, account creation, listing products, attracting customers, and automating your business. It details the various options for selling on Amazon such as private labeling, wholesale, retail arbitrage, online arbitrage, and dropshipping. It also outlines the types of fees sellers may encounter like monthly or per transaction fees depending on the account type as well as referral and closing fees.

Uploaded by

danishmumtaz
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Amazon in 2022
  • Business Models
  • Selling Fees
  • Fulfillment Options
  • Product Research
  • Creating Your Account
  • Listings
  • Attracting and Retaining Customers
  • Automation and Growth
  • Learn More

The Complete Guide to

Selling on
Amazon FBA
in 2022

$2022.00
So you want Contents

to be Amazon 1 Amazon in 2022


seller? 2 Business models
It makes sense. The platform
is synonymous with choice,
3 Selling fees
convenience, and innovation -
everything the modern consumer
wants.
4 Fulfillment options

But there are millions of sellers on 5 Product research


the platform already, so in order to
stand out, it’s best you take a deep
6 Creating your account
dive in.

That’s what this guide will give you. 7 Listing your products
The background, insight, and tools
you’ll need to make an almighty
8 Attracting and retaining customers
Amazonian splash this year.

9 Automating your business

10 Where to learn more…


1 Amazon in 2022

Selling on Amazon is no small undertaking.

In order to beat your competition, you’ll need to understand what


game you’re playing, and how to strategize accordingly.

With ecommerce, that starts with three things: your chosen platform,
its customers, and the other sellers who got there before you.

You’ve landed in the Amazon jungle, what will you find there?

The Platform

In 2020, less than thirty years after its conception, Amazon was
worth a trillion dollars.

How is that possible? Well firstly,


[Link] is just the tip of the
iceberg with this ecommerce goliath.

Aside from owning companies


like Whole Foods, Zappos, and
Kiva Systems (a robotics company),
Amazon offers a few ways into
business with them:

• Amazon Prime
• Fulfillment by Amazon and
Multichannel Fulfillment
• Amazon Web Services (responsible
for $45b of revenue in 2020).
• Amazon Associates
• Amazon Vendors
• Amazon Handmade

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


When you join Amazon, you’re part of a much
wider ecosystem. And these opportunities may be
useful to you in the future.
It’s important to understand as a new Amazon
seller how the company shifted the entire
Amazon is bigger than the nine next largest
ecommerce landscape. Because this impacts
American retailers combined.
why customers come to Amazon, and what they
expect from you as a seller.
It gets around 2 billion diverse visitors every
month, and 63% of customers begin their online
Amazon engineered the unprecedented shipping
shopping search with Amazon.
speeds we see today.

It’s a compelling prospect, but ecommerce is


Launching Prime was a logistical whirlwind for
never a sure thing.
the company, presenting complex challenges in
the pursuit of ultimate convenience.

Here are some of the most common reasons They did it, and from February of 2005, the
that Amazon sellers quit: industry goal posts had changed forever. The
limiting factor of ecommerce shopping - the wait
• Fulfillment by Amazon (FBA) is too expensive.
times - were slashed.
• It’s time consuming or not making a profit
quickly enough.
The top reason customers shop
• There’s too much to learn. on Amazon is for fast and free delivery
(79.8%).

Armed with that insight, you can ensure you


enter the race with your eyes open. There are Third in the list is that they’re Amazon Prime
ways to mitigate these things, and it all starts with members - we’ll talk more about how to make
expectation - yours and your customers’. your products eligible for the Prime scheme
under the FBA and FBM section.

Section takeaways

➔ Amazon remains top dog for ecommerce and is the


largest retailer in the US.

➔ With this size comes opportunity, but also certain


expectations and plenty of competition.

➔ Customers come to Amazon for fast and free delivery.

➔ Amazon Prime members are a huge segment of the


customer base. Missing out on them means missing
out on a significant chunk of the market.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


2 Business Models

Have you thought about how you’d like to buy and


sell your products yet? You have a few options.
Each brings with it different pros and cons, costs, and challenges.
Naturally these will be highly dependent on the seller and
products they choose.

The top five options for Amazon are:

Business Model Description

1 Private Label Renaming or rebranding an existing product.


In general this model can be more expensive, but with
potentially better margins and less costly time-wise.

2 Wholesale Purchasing items in bulk at a discount to sell on.


A key element of this model is finding great suppliers and managing
those relationships. Can be relatively low-cost to get going.

3 Retail arbitrage Buying products from a retailer to sell on.


This option can be quick and cheap, but is potentially tighter for
margins. It may be demanding of your time if you’re the one looking
for deals.

4 Online arbitrage Buying products from an online store to sell on.


This kind of arbitrage has a bit of a murky reputation. It’s
contaminated by sellers buying and selling on the same platform,
or between platforms, and it doesn’t look great to customers.

Platforms may penalize sellers if it appears they’re ripping off


customers.

5 Dropshipping Listing items that are stocked and fulfilled by another supplier.
Relatively inexpensive and straightforward - you don’t need to start
with inventory, or anywhere to store it. It can take longer to get
started, with margins generally between 11-25%.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


When deciding on your business model, think about the following things:

• What’s your starting budget?

• What products do you want to sell?

• How will you store and ship them, if you handle that yourself?

• What kind of timeline would you like to be up and running within?

• What kind of margin would you need to make your business viable?

• How much time do you want to be spending on your business


each day/week?

All of these things should go into your decision.

It’s helpful at this early stage to draft up an Amazon business plan to help
answer these questions. It should shed light on what is a realistic for you
and give you a way to track progress.

Section takeaways

➔ There are a number of ways to sell on Amazon. You can


create your own products, rebrand existing ones, or even
sell without buying inventory via dropshipping.

➔ The method you choose should be dictated by a number


of factors. It’s easier to define and monitor these by
creating an Amazon business plan.

➔ You may consider purchasing from another online store


to sell on Amazon. This is called arbitrage, and can be
frowned upon by platforms. Read up on this separately
to ensure you don’t get penalized.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


3 Selling Fees

You’re probably wondering how much selling on the


biggest ecommerce platform in the US is going to cost you?

Well, there’s no straightforward answer.

It begins with your account type. If you opt to sell on an Individual account
plan, you’ll be charged fees per sale.

If you opt for the Professional plan, you’ll pay a monthly fee instead. FEES

But the buck doesn’t stop there. Here’s a brief overview of the types of fees
you might come across:

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Your Amazon store
After the fees you’re charged by your plan type, you’ll find the following:

Referral fees Closing fees

Amazon’s commission for bringing Applicable on top of referral fees


Description
you a customer on specific categories only

Charged on each sale - a Fixed rate per unit and charged at


When it applies
percentage of the total order value the time an order is shipped

Currently on Books, Computer


Specifications Vary by selling category Games, Software, Music, Video and
DVD.

Typically 8-15% subject to annual


Rate Typically $1.80
changes

Payment processing (Amazon Pay)


Amazon Pay is the platform’s native payment gateway.

Whilst you do have other options to offer your customers, they’ll come at a
cost too. Amazon Pay may be the quickest and smoothest option for them if
they have it set up.

Domestic Cross-border Currency


Authorization
processing processing conversion

A fixed-rate May apply when


Applied to Applied to
Description service fee per currency conversion
US-based sales international sales
transaction is required

Changes based on Also changes based This is the same Fluctuates with
Specifications
selling format on selling format for every order exchange rates

Sales via Amazon. Sales via Amazon. 0.5% above the


$0.30c
Rate com are 2.9%. com are 3.9%. wholesale exchange
Sales via Alexa Sales via Alexa rate applied by the
devices are 4% devices are 5% bank

For the most up-to-date Amazon Pay fees, always check the official pages.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Fulfillment (FBA only)
If you opt for Fulfillment by Amazon, which we’ll explore in the next
section, you’ll have another suite of fees to deal with.

These start with standard fulfillment fees, based on size and weight,
and whether items are “apparel” or “non-apparel”.

You may then be changed for order handling, transport and


processing, storage, chargebacks, returns, weight-handling and more.

Other
The fees listed above are just the tip of the iceberg.

You might also come across high volume listing fees, optional service fees, transport and
processing fees, and more.

There are fee calculator and preview functions in Seller Central, so make sure you’re well
versed on how those work to avoid any nasty surprises later on.

A2X for Amazon also helps lay all your fees out for you, so you don’t have to manually identify
and calculate them all. We’ll explore this further in the Automation section.

FEES

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


4 Fulfillment Options

Customers come to Amazon for fast and free shipping.


And hey, you don’t just
Customers shop online for convenience. Quick and painfree shipping have to choose one.
needs to be one of your top priorities. Many sellers use a
combination of the two.
Unless you choose the dropshipping route for your business,
Where FBA stands out is
you have two options for shipping:
that you can offer that
lightning-fast Amazon
FBA FBM shipping service without
sleeping in your warehouse.
Fulfillment by Amazon Fulfillment by Merchant
The platform stores and ships A fancy way of saying
items on your behalf. it’s all on you.

Here’s a brief overview of how it works:

You send inventory to an Amazon fulfillment center, packaged according to FBA


1 requirements. Depending on how much you pay, you’ll be given the dimensions of
your floorspace that can be used for storage. If you go over, you’re charged extra.

Amazon will process your inventory and store it across the country. Based
2 on what your products are and where they tend to sell, they’ll be shipped to
various locations. This is how those quick delivery times are met.

3
When an order comes in, Amazon picks, packs, and ships the item to your
customer. Any tracking information will be supplied and you don’t need to
lift a finger.

4 If the customer wants to return an item or ask questions, they will


contact Amazon.

On the surface, FBA is simple. You can fully outsource your fulfillment to a platform that dominates the
delivery space.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


To demonstrate just how “quick” customers expect fast shipping to be:

Plus, by using FBA, any eligible items will • Monthly storage fees which change
automatically be available for Prime. In this way throughout the year to reflect busier
you’ll be opening your business up to the maximum seasons.
Amazon customer base and optimum experience.
• Long-term storage fees if your inventory
Of course, all of this comes at a cost. outstays its welcome.

• Overage fees if your inventory is taking up


Unfortunately, there isn’t just one extra fee for more space than allocated.
using Amazon FBA.
• Removal fees if you want to get rid of items
currently stored.
Extra charges for FBA sellers:
• Returns processing fees for items sent back
• The fulfillment charge - based on product by customers.
category, size, and weight.
• Unplanned service fees for unexpected time
• If you use the network for non-Amazon sales. spent on your stock. For example, if you
Yes, this is an option - if you sell on multiple package your orders incorrectly and they
channels, you can use FBA for all of them. But need extra attention when arriving at an
it’ll cost you. FBA facility.

• Export fees on international orders only on


non-Amazon sales. This is not an exhaustive list.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


You can opt to manage your own shipping and many sellers do. There are plenty of third-party
logistics (3PL) companies other than Amazon FBA to help, so it’s a case of weighing up how much of
the responsibility you want for fulfillment.

Here’s a quick comparison:

FBA may be best for… FBM may be best for…

• Sellers keen to outsource fulfillment • Sellers that want more control over
and customer service to Amazon customer experience and fulfillment

• Sellers with quick turnover • Sellers with oversized or heavy


inventory
• Sellers without the infrastructure to
fulfill orders themselves • Sellers with slower turnover

• Sellers dealing with small and light • Sellers that have the logistics set up to
products deal with fulfillment

• Sellers prepared to take on the costs

Section takeaways

➔ By outsourcing your fulfillment to Amazon, your products


are eligible for super-fast shipping and millions of Prime
users.

➔ Amazon handles your inventory storage, packing, and


shipping. You can even use it for non-Amazon sales.

➔ Amazon also handles your customer service.

➔ But there are plenty of fees involved with using FBA.

➔ Many sellers use a combination of FBA and FBM


(doing it themselves).

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


5 Product Research

You may already know what you Do you know whether there’s demand for your supply?
And have you found a profitable niche?
want to sell on Amazon. But if not,
or if you’re keen to validate your In a crowded ecommerce marketplace, niches present
pockets of opportunity. You need to find an untapped,
ideas through some good research lucrative gap in the market.
(smart), read on.
They also help you get your entrepreneurial feet wet
before diving into larger, broader, more competitive
categories.

Ways to find a niche product with potential:

1 Google the category you’re interested in.


It sounds obvious, but you need to dig deep here. Analyze: What is ranking highly?
What are people asking about the category? Any news stories or new developments
for that industry? What about reviews of similar products?

Find anything that can help you understand what customers are looking for and
asking about similar products. Google Trends is a great place for inspiration too.

2 Search social media


Another great way to find out what people are talking about is through channels like
Facebook, Instagram, Quora, and Reddit - wherever your target audience hangs out.
Reddit in particular, is already organized via niche. And hashtags on Instagram and
Facebook help you spot popular categories.

3 Search Amazon
Once you have some idea of what you could sell, see what’s already on the platform.
Who’s selling similar things, and what are they doing well/not so well? Are customers
happy with the product? Anything you can learn and do better for your store?

What you’re looking for: products with interest, some level of longevity, and few competitors.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Section takeaways

➔ Product research is about scoping out the market


before you invest in inventory.

➔ Digitally eavesdrop on your target audience - what are


they discussing, asking, liking and disliking that could
help you with your approach.

➔ You’re looking for a niche with few competitors and


lots of potential.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


6 Creating your account
Now comes the good bit, getting set up on Amazon!

The first choice you’ll make in this process is whether After selecting your account type, follow
to start as an Individual or Professional seller. these steps:

1. Enter your email address and click “Create


Individual Plan (0.99c/sale + other fees): new account”.

2. Verify your email address.


• Better for more casual sellers (40 items or
less/mo) with fees charged per sale. 3. Enter your business location (where you are
located), your business type (most select
• Good for those experimenting and unsure of
“privately-owned”), and your full name.
longer-term goals.
4. Enter your personal information (you’ll need
your passport or a license for this page).
Professional Plan ($39.99/mo + other fees):
5. Choose the Amazon marketplaces where you
want to sell.
• Better for a business (40 items+/mo) with a
6. Enter your billing information.
monthly charge rather than per sale fees.
• Create bulk listings. 7. Next up, you’ll be asked about your Amazon
store. You’ll need to enter:
• Inventory management tools.
• The name of your store.
• Access to on-site advertising tools.
• Whether you’ll use UPC codes for your
• Run promotions. products (you don’t have to).
• Have access for multiple • Whether you own or manufacture
people. your products.
• Whether your products are trademarked.

8. The last step is your address verification.


Amazon will send you a postcard with a
verification code. Once you have entered this
code, you’re in and ready to create a listing!

Here are a few ways to get more out of Seller Central:

• Click and drag the widgets in your dashboard to customize the layout.
• Create pricing rules to track when your competitors change their prices, and adjust yours accordingly.
• If you set up a brand store, the brand analytics section will be available.
This can help you monitor customers, clicks, and conversions. With these
you may find opportunities for cross-selling and up-selling.
• The Amazon Selling Coach offers business tips and prompts
to professional sellers.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


7 Listings

By this stage you should have your inventory How to optimize your
ready to go and your account set up. listings:

When it comes to listing your items, there are the practical Titles: A good title gets all the key
steps and the optimization steps. You don’t just want your information across as seamlessly as
items listed. You want them to stand out. possible. Think about what keywords
you can include that match what your
customers search for. This will help
Let’s start with the practical steps: Amazon sift through relevant listings
and ideally show yours. Here’s what it
might look like:
From Seller Central, open the Inventory

1 drop-down menu, and select Add a


Product.
Samsung S21+ Ultra Phone Case, Lilac
Silicone, Waterproof, Drop Proof, Home
Recyclable. Available in more colors.

2
You can either search for a product from
Bonus tip: Mobile users see
Amazon’s catalog or click Create a new
50-80 characters.
product listing.

Images: Stick to hi-res, high quality


Select your product category, ensuring
3
images. Photos are the quickest way
that it isn’t restricted, and that it’s as to earn trust or lose it. Try using them
relevant to your product as possible. to demonstrate the features and
benefits of your products.

Enter all the required information in Description: If you did some


as much detail as possible. This will
4
thorough product research, you
include a title, price, description, brand/ should have an idea about what
manufacturer, condition, and other customers are looking for from
optional items. products like yours. Here’s an
opportunity to demonstrate that
insight. The description should show
an understanding of the needs of the
customer and how the product fits in.

Pricing: Your strategy on pricing


should encompass a number
of things. You need to fit within
Amazon’s pricing policy, be
competitive, and still make a profit.
BUY NOW
Make sure your numbers add up
before listing any inventory.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


8 Attracting & Retaining Customers

Ok, so you’ve got the basics Next it’s time to learn about how to boost your
performance. This might be organically or through paid
in place. Listings are up, they
advertising.
look good, and you’ve included
Amazon uses rankings to help customers see how certain
keywords that your customers
sellers and items are performing compared to others. Let’s
use to search. check those out first, and then ways you can attract and
retain your customers to boost these rankings.

Keywords
Keywords are words or phrases that people use to search for something
online. It can help your visibility to find out what these are and weave them
into your content. Check out our Amazon SEO Guide for more info.

Platform ranking tools:

Best Sellers Rank (BSR) The Buy Box

Just about every item on Amazon has one or Have you noticed that convenient box on
more BSR. This tells customers how the item the right of every Amazon listing with a big
is performing within its category/categories. yellow “Buy now” button? That’s the buy
box. And the chosen listing scores around
For example, a smartwatch could have a BSR 82% of sales.
of third in the “Watch” category. It might also
be tenth in the “Electronics” category. It’s designed to be as quick and frictionless
for customers as possible, so only the best
BSR improves the more sales are made on performing listings will do. You can check
that item. It is updated hourly, and can help whether your items are eligible for the buy
customers visualize how items compare. The box under Inventory > Manage Inventory
only way you can influence a better BSR is in Seller Central.
through increasing sales of your items.
Typical buy box winners are competitively
priced, new items, often Prime eligible,
have consistently positive feedback, and
1
2 consistent inventory levels.
3
4

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Organic ways to improve Paid options for attracting
customer experience and and retaining customers:
boost retention:
• On-site advertising: Amazon offers sellers a
• Manage expectations: Make sure all your range of advertising options. From Amazon
images are a true reflection of your products. stores, sponsored products, product display
Ensure all information provided is accurate, ads, and brand ads, you can choose what you
accessible, and honest. Provide shipping spend and where from Seller Central.
policy information so delivery expectations • Amazon custom advertising: You can even
are realistic. Take inspiration from other high- outsource your ads to Amazon itself. This is
performing listings. a costly process, but you’ll have an expert
• Be interactive: Answer your reviews from team of creatives, strategists, designers, and
customers. Display the good ones proudly, engineers at your disposal.
and make changes based on feedback. Let • Affiliate advertising: This involves
your customers influence how your business partnering with others off-Amazon who
evolves. display a link to your products on the
• Thoughtful packaging and unboxing: platform. If they generate a sale, they get
Think about the experience you want your a cut. Over 80% of brands use affiliate
customer to have when they receive their marketing, so it’s nothing to be sniffed at.
order. You could include a special offer • Off-site advertising: You also have the
to bring them back - it’s easier to retain option of using social media and influencers
customers than to find new ones. to market your store. The former may not
• Free gifts: Surprise and delight your cost you anything, but you could pay to boost
customers. Why not add something reach for extra visibility.
unexpected to their orders? This could be
for particular order values, or a seasonal
promotion. It could simply be a thank you to
your first few customers.

Section takeaways

➔ You can improve your performance and visibility on Amazon


organically and through paid advertising.

➔ By selling more products, pricing competitively, and keeping


customers happy, you’ll improve your Best Seller Rank (BSR)
and buy box eligibility.

➔ Amazon offers a number of advertising options. You can


manage these from Seller Central.

➔ You can also manage your own social media campaigns


off-site for extra reach.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


9 Automation and Growth

Amazon sellers will likely tell you that accounting for their
stores is one of the most challenging parts.
That’s down to a number of things. The numerous and varying fees are a key
culprit. Then there’s sales tax which, for ecommerce, is a minefield of complexity.
Not to mention income tax, which you’ll likely need to be paying too.

The answer to those problems is automation - both for your accounts


and by extension, your taxes.

Automating the things that could topple your business will not only ensure
accuracy and consistency, but give you the time back to focus on growth.

Accounting
Money is the lifeblood of your Amazon business. In order to keep a healthy, resilient business going,
there are some vital organs you need in place.

Accounting software Connector app

Don’t rely on spreadsheets. They may be When it comes time to pay you, Amazon
free, but they don’t come ready made for will send one payout to your bank. This
running a business. You would need to build single number will encompass multiple
them from the ground up, never miss a value transactions, including money that isn’t yours
or make a mistake with a formula, and be to keep (like sales tax). And money you might
constantly updating them. They are useful be receiving from a returned sale, so don’t
tools but should not be used in place of want to count as new.
purpose-built accounting software.
But you won’t know this without trailing
through records and manually separating
everything out.
Our picks: Xero, Quickbooks, and Sage.
A2X was designed by Amazon sellers to
alleviate this problem. Rather than having
transaction data sent in volume to your
accounting software for you to organize
later, A2X intercepts it and does this for you.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Here’s how it works:
➔ For each Amazon payout, A2X will generate a journal
summary.
“If you’re not using A2X for
➔ The journal summary will list every transaction that went
into the payout. Amazon accounting you’re
doing it wrong!
➔ Each transaction will be mapped to your accounting
software’s chart of accounts so that records are consistent Splitting Amazon deposits
and neat. between months was a
➔ Reconciliation is now a matter of matching journal to brutal exercise and now
payout with the detail calculated for you. A2X handles it all. A2X and
➔ Any payouts spanning months are split automatically [accounting software] is a
with a summary each. no-brainer tech stack for any
➔ A2X also organizes books via the accrual method of
Amazon seller.”
accounting so you have the greatest visibility over the – Catherine F., Accounting Manager.
value movements in your business.

Find out more about


A2X and start your
free trial.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Sales
Ecommerce sellers are very much eligible to pay
where they meet criteria. This criteria, and the rates
Tax chargeable, are relatively new and open to change.
They also differ between states.

As a result, sales tax has become a complicated


If you hope to grow your Amazon minefield of rules and regulations. Since a costly
audit could sink you, it’s important to either get
business in the US, sales tax needs professional help with your taxes or at the very
to be on your radar. least, use a tax app to help you.

Here’s a brief overview of sales tax Other apps


on Amazon.
• What sales tax is: A consumption tax charged on goods There are plenty of exciting apps
sold. It’s paid by the end user and remitted to a particular tax and integrations to take your
jurisdiction. It is not always required, and eligibility criteria Amazon biz up a notch!
varies between states.
You can automate the intrinsic
• How much it is: This depends on the state. There are aspects of your business like:
five states which do not charge sales tax, and others vary • The behind-the-scenes
between 1-9+%. operations

• Who has to pay: If you’re eligible to pay, and your products • Listing products
are taxable, then your customer will pay the sales tax at
You can also automate more
checkout.
extrinsic aspects like:
• How to collect it: Some states require Amazon to collect • Social media
and remit sales tax on your behalf. This obligation was
• Advertising
introduced under marketplace facilitator laws. If you are
required to collect it, you need to register in the appropriate • Marketing
states. Then you can manage your tax collection settings in • Feedback
Seller Central under Settings > Tax Settings.
Just ensure that you prioritize
• How to remit it: Each state requires you to file in different where your investment is going.
ways and at different frequencies. Tax apps can help with It should all start with your
this process. accounts (and inventory) first.

• The apps to automate it: Sales tax apps help simplify all of If you created an Amazon
this for you. The correct tax amounts are put aside as you business plan, you could use it
receive them based on each state’s requirements - even as to predict when you might want
they change. (Alaska changed its rate annually from 2019- to add new apps to your stack.
2021). You can also use many of them to file on time and By adding them gradually, you
accurately, ensuring you’re fully compliant. can remove any redundant costs
and keep only what is generating
results.
Our picks: TaxJar, Avalara, and Sovos Taxify.

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022


Section takeaways

➔ Spreadsheets are not sufficient for managing your


accounts. Use purpose-built accounting software.

➔ A2X will ensure your payouts are split and calculated


accurately, saving you time and giving you reliable
numbers.

➔ Sales tax is complex, and changing. Getting


professional help or using a tax app could save you a
lot of money in the long-term.

➔ There are plenty of other ways you can automate


your business. Include these in your Amazon
business plan for a way to prioritize and ensure
returns.

10 Learn more...

Selling on Amazon is a constant learning experience.


You can find many more free resources that we update regularly in our Ecommerce Accounting Hub.

Interested in networking with fellow sellers and accessing webinars with industry experts? Request to
join our free Ecommerce Back-office Facebook group today.

ECOMMERCE
ACCOUNTING
HUB

THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022

The Complete Guide to
Selling on 
Amazon FBA 
in 2022
$2022.00
So you want 
to be Amazon 
seller?
It makes sense. The platform 
is synonymous with choice, 
convenience, and innovation - 
e
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
1
Amazon in 2022
Selling on Amazon is no small undertaking.
In order to b
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
When you join Amazon, you’re part of a much 
wider ecosystem. And these o
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
2
Business Models
Have you thought about how you’d like to buy and  
sell
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
When deciding on your business model, think about the following things:
•
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
3
Selling Fees
You’re probably wondering how much selling on the 
biggest
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
Your Amazon store
Payment processing (Amazon Pay (https://www.a2xaccounti
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
Fulfillment (FBA only)
Other
If you opt for Fulfillment by Amazon, which
THE COMPLETE GUIDE TO SELLING ON AMAZON FBA IN 2022
4
Fulfillment Options
Customers come to Amazon for fast and free shipping

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