Main Markets and Target Audience

Geographical Spread: Amazon’s market extends worldwide, with the United States being its primary market. Over 60% of Amazon’s total internet traffic comes from the U.S., with a significant number of consumers making frequent purchases.

International Presence: Apart from the U.S., Amazon operates in over 20 countries, with a significant presence in affluent nations like the UK, Germany, Japan, and Australia.

Product Categories:

While it started as an online bookstore, Amazon now sells a wide range of products. The books category still accounts for a significant portion of its inventory, with over 57 million products.

Target Audience Demographics:

Age Group: Amazon targets a broad age range. A significant proportion of its audience is in the 25-34 age group. The average age of an Amazon user is 37 years.

Income Levels: Amazon’s customer base primarily consists of middle to upper-middle class households, with about 45% earning between $40k and $100k, and 35% earning over $100k per year.

Tech Savviness:

Given its nature as an online retailer, Amazon’s audience is highly tech-savvy, with most being regular internet users and online shoppers.

Shopping Behavior and Preferences:

Prime Membership:

A significant percentage of Amazon shoppers are Prime members, with 81% of US adults aged 18-34 having Amazon Prime accounts.

Shopping Frequency:

Amazon Prime subscribers shop more frequently than non-Prime customers, with 48% buying products at least once a week.

Factors Influencing Purchases:

Price is a crucial factor for Amazon customers, with 82% citing lower prices as a primary reason for shopping on Amazon. Other important factors include low shipping costs, positive product reviews, and a flexible return policy.

Account Opening

Required Information and Documents

Business Information:

• Legal Business Name: You will need to provide the legal name of your business entity, which should match your official business registration.
• Business Address: Your business address should be provided accurately. Contact Information: This includes a valid email address and phone number for your business.
  
  

Tax Information:

• Tax Identification Number (TIN): You may need to provide your business’s TIN, EIN (Employer Identification Number), or SSN (Social Security Number), depending on your business structure and location.
• W-9 Form: In some cases, Amazon may request a completed W-9 form to verify your tax details.

Bank Account Information:

You will need to link a bank account to your Amazon seller account for receiving payments. This includes providing your bank account number and routing number.

Product Information:

•  Detailed Product Listings: You will need to create listings for the products you intend to sell on Amazon. This includes product descriptions, prices, and relevant details.
• UPC or EAN Codes: Some categories may require you to have UPC (Universal Product Code) or EAN (European Article Number) codes for your products.

Identity Verification:

Identity documents, such as a driver’s license or passport, may be required for identity verification.

Business Documents:

Depending on your business type, you may need to provide business registration documents, such as Articles of Incorporation or Business Licenses.

Subscription plans

Individual Seller Account:

This type of account is often suitable for smaller sellers who don’t expect to sell more than 40 items per month. It usually doesn’t have a monthly subscription fee, but Amazon charges a per-item fee on each sale, along with other selling fees. This account type has some limitations in terms of inventory management, advertising, and the use of Amazon’s advanced selling tools.

Professional Seller Account:

This account is geared towards more active sellers who plan to sell more than 40 items per month. It has a monthly subscription fee but does not charge a per-item fee like the Individual account. Professional sellers get access to additional features such as bulk listing and inventory management tools, eligibility to sell in more categories, access to advanced selling tools like APIs and reports, and the ability to run promotions and gift services.

Supported Types of Companies

Amazon supports a variety of company types for sellers who wish to conduct business on their platform. The specific types of companies that can sell on Amazon depend on the country’s business laws where the company is registered. However, here are some common types of companies that are typically supported:

• Sole Proprietorship: An individual owner operates the business. It’s the simplest form of business entity and is not legally separate from the owner.
  
  
• Partnerships: This includes general partnerships, where two or more people own the business together, and limited partnerships, where some owners are only financially invested and do not participate in the day-to-day operations.
  
  
• Limited Liability Company (LLC): A hybrid structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
  
  
• Corporation: This can include both C corporations and S corporations. A corporation is a separate legal entity owned by shareholders, offering the most protection from personal liability for the business owners but with more regulatory requirements.
  
  

• Non-Profit Organizations: These are usually organizations that are set up for purposes other than making a profit, and they might also sell items on Amazon, especially if they are related to their mission.
  
  
• Cooperatives: Owned and operated by a group of individuals for their mutual benefit, cooperatives are another type of entity that can sell on Amazon.

Each of these business types has different legal, tax, and financial implications. When setting up an Amazon seller account, you will be required to provide information about your business type, and in some cases, you might need to provide additional documentation depending on the business structure and the laws of the country in which your business is registered.

Account Approval Process and Duration:

• Create an Amazon Seller Account: You start by signing up for an Amazon Seller account. You’ll need to provide basic information such as your business name, address, contact information, bank account details, and tax information.
  
  
• Verification Process: Amazon has a strict verification process to ensure the authenticity of sellers on its platform. This process may require you to submit additional documentation. These documents can include a national ID, bank account statement, credit card statement, and/or a utility bill.
  
  
• Phone Verification: In some cases, Amazon may require a phone verification step. During this step, Amazon will call the phone number you provided to verify your identity. You might receive an automated call where you’ll be asked to enter a PIN number displayed on your Amazon account screen, or in some cases, you might speak to an Amazon representative.
  
  
• Additional Information or Documentation: Depending on the category of items you wish to sell, Amazon may request additional information or documentation. This could include invoices, product images, or certifications, particularly for restricted categories.
  
  
• Approval Duration: The duration for account approval can vary widely. Some sellers report being approved within a few days, while others may wait several weeks. The time frame can depend on the completeness and accuracy of the information provided, the specific category of products, and Amazon’s current volume of applications.
  
  
• Account Review and Activation: Once all required information is verified and approved, your seller account will be activated. Amazon will notify you of this, and you can then start listing products and selling on the platform.
  
  
• Possible Additional Reviews: Even after initial approval, Amazon may conduct periodic reviews of seller accounts. This can include requests for additional information or documentation to ensure ongoing compliance with Amazon’s policies.

Amazon Call Process:

• Purpose of the Call: Amazon may use phone verification to confirm the identity of the person registering the seller account. This is a security measure to prevent fraudulent accounts and ensure the legitimacy of sellers on their platform.
  
  
• How It Works: During the account creation or verification process, Amazon might prompt you for a phone verification step. This usually involves receiving an automated call or text message.
  
  
• Automated Call: In the case of an automated call, you will typically be provided with a PIN on your Amazon account screen. You’ll then receive a phone call from Amazon, during which you’ll be asked to input this PIN using your phone’s keypad to verify your identity.
  
  
• Manual Verification Calls: In some instances, Amazon might conduct a manual verification call. This means you may speak to an Amazon representative who will ask questions to confirm your identity and the details of your seller account. This could include confirming your name, address, or other details you provided during the registration process.
  
  
• Timing of the Call: If a phone verification is required, it usually happens shortly after you provide your phone number during the registration process. Amazon typically allows you to choose when to receive the call, offering a short window of time for your convenience.
  
  
• Missed or Failed Verification: If you miss the call or the verification fails (for example, if the wrong PIN is entered), Amazon usually provides an option to retry. It’s important to ensure that the phone number you provide is correct and that you are available to answer the call.
  
  
• Language and Accessibility: Amazon’s verification calls are generally available in multiple languages, catering to sellers in different countries. If there are accessibility concerns, Amazon might offer alternative verification methods upon request.
  
  
• Privacy and Security: Be cautious about providing sensitive information over the phone. Amazon’s verification calls typically do not ask for sensitive personal information like passwords or credit card details.

Warnings/Notes

Common Errors and Solutions: IP Address and Other Technical Issues

• IP Address Conflicts: Amazon may flag accounts that appear to be connected through the same IP address. This can happen if you’re using a public network, shared office space, or VPN.
  
  
• Solution: Use a dedicated, private internet connection for your seller account. Avoid using VPNs or public Wi- Fi networks when accessing your seller account.
  
  
• Browser Issues: Sometimes, browser-related problems like cache or cookie issues can hinder account access or functionality.
  
  
• Solution: Regularly clear your browser cache and cookies. Consider using a separate browser for your Amazon Seller account to avoid conflicts with other activities.
  
  
• Account Access Issues: Difficulty in accessing your account can be due to forgotten passwords or locked accounts.
  
  
• Solution: Use Amazon’s password recovery options. If locked out due to suspicious activity, contact Amazon Seller Support for resolution.
  
  
• Listing Errors: Errors in listings can occur due to incorrect details, UPCs, or issues with product categories.
  
  
• Solution: Double-check all your listings for accuracy. Use the correct and unique UPCs for each product. Familiarize yourself with Amazon’s listing requirements.

Security Tips and Fraud Prevention Measures

• Strong Passwords and Two-Factor Authentication (2FA): Use complex passwords and enable 2FA on your seller account for an additional layer of security.
  
  
• Regular Monitoring: Regularly monitor your account for any unusual activity, including unrecognized listings, orders, or changes in account information.
  
  
• Secure Computer and Network: Ensure your computer has up-to-date antivirus software and that your network is secure, especially when accessing your seller account.
  
  
• Phishing Awareness: Be aware of phishing attempts. Amazon will never ask for sensitive details like your password or bank information via email.
  
  
• Limited Access to Your Account: If you have employees or assistants, limit their access to your Amazon Seller account. Use Amazon’s user permissions to control what each user can see and do.
  
  
• Educate Yourself on Amazon Policies: Stay informed about Amazon’s policies and guidelines to avoid unintentional violations that could flag your account.
  
  
• Contact Amazon for Suspicious Activities: If you notice any suspicious activity, contact Amazon immediately. Prompt reporting can prevent further issues.
  
  
• Regular Data Backups: Regularly backup your product listings and any important data related to your Amazon Seller account. This practice can be a lifesaver in case of technical issues or account suspensions.

Marketplace Costs

Account Opening Fees

Amazon has different fee structures for its two main types of seller accounts: Individual and Professional. These fees are subject to change, so it’s always best to check the latest information on Amazon’s official site. Here’s a general overview:

Individual Seller Account:

• Monthly Fee: There is no monthly subscription fee for an Individual seller account.
  
  
• Per–Item Fee: Amazon charges a fee for each item sold, which is typically around $0.99 per item, in addition to other selling fees (like referral fees and closing fees). This account type is generally suitable for sellers who plan to sell fewer than 40 items per month.

Professional Seller Account:

• Monthly Fee: There is a monthly subscription fee for a Professional seller account. This fee is usually around $39.99 per month, but it can vary by region.
  
  
• Per–Item Fee: Unlike the Individual account, Professional accounts do not have a per-item fee. However, other selling fees like referral and closing fees still apply. This account type is geared towards sellers who expect to sell more than 40 items per month and who need access to advanced selling tools.

Both types of accounts are subject to additional selling fees, which can include:

• Referral Fees: A percentage of the sale price, varying by category.
  
  
• Fulfillment Fees: Applicable if you use Amazon’s Fulfillment by Amazon (FBA) service.
  
  
• Closing Fees: Applicable on media items, like books, DVDs, music, etc.

Additional Considerations:

• FBA Fees: If you opt for Fulfillment by Amazon, additional fees such as storage and fulfillment fees will apply.
  
  
• Other Fees: Depending on your selling activities, there might be additional fees like high-volume listing fees, rental book service fees, etc.

To get the most accurate and up-to-date information regarding Amazon seller account fees, it’s advisable to visit Amazon’s official website for sellers or contact Amazon’s seller support.

Logistics

Amazon’s Logistics Programs:

Amazon has developed its own logistics and delivery network to ensure efficient shipping and delivery of products. Some key components of Amazon’s logistics system include:

• Fulfillment by Amazon (FBA): With FBA, sellers can store their products in Amazon’s fulfillment centers. Amazon takes care of storage, packaging, shipping, and customer service. FBA allows sellers to use Amazon’s extensive logistics network to reach customers quickly.
  
  
• Amazon Logistics: Amazon Logistics is Amazon’s in-house delivery network. It includes a fleet of delivery vehicles and drivers, as well as partnerships with delivery service providers. Amazon uses this network to handle the last mile of delivery for many products sold on its platform.
  
  
• Amazon Flex: This program allows individuals to become independent contractors and deliver Amazon packages using their own vehicles. It’s a way for Amazon to increase delivery capacity during peak times.
  
  

For detailed information about Amazon’s logistics programs and how they work, you can visit Amazon Seller Central and explore the Fulfillment by Amazon (FBA) page.

VAT and Tax Obligations for Sellers:

Value Added Tax (VAT) and tax obligations for Amazon sellers can vary depending on the country or region where you are selling. Here are some general points to consider:

• Amazon guides how to handle VAT for cross-border transactions, including information on when and how to register for VAT in different countries.
  
  
• Sellers are responsible for ensuring they comply with VAT and tax laws in the regions where they are selling. This includes collecting and remitting VAT when required. Amazon may offer services or tools to assist sellers with VAT calculations and compliance.
  
  
• For detailed information on VAT and tax obligations specific to your seller account and the regions you are selling in, it’s best to refer to the Amazon Global Selling VAT guidance and consult with tax professionals if needed.

Warehouse Management

Local Warehouse Usage and Benefits

Fulfillment by Amazon (FBA): With FBA, sellers can store their products in Amazon’s fulfillment centers located in various regions. Some benefits of using local FBA warehouses include:

1. Prime Eligibility: Products stored in FBA warehouses are eligible for Amazon Prime, which can increase sales and visibility.
   
   
2. Fast Shipping: FBA provides fast and reliable shipping options, improving the customer experience.
   
   
3. Customer Service: Amazon handles customer service, returns, and refunds for FBA orders.
   
   
4. Inventory Management: FBA offers inventory management services, including restocking and order fulfillment.
   
   
5. Seller-Fulfilled Prime (SFP): Sellers can use their own warehouses to fulfill Prime orders, provided they meet Amazon’s stringent shipping and customer service requirements.
   
   
6. Multi-Channel Fulfillment (MCF): Sellers can use Amazon’s fulfillment network to fulfill orders from their own websites or other sales channels.

International Warehouse Options:

• Global Export: Amazon allows sellers to list and sell products on international Amazon marketplaces. You can use local FBA warehouses in other countries to store and fulfill orders. Benefits include expanding your customer base and increasing sales globally.
  
  
• Pan–European FBA (Pan–EU): This program allows sellers to store products in Amazon’s European fulfillment centers, making their products available for sale across multiple European countries. It simplifies cross- border logistics and expands market reach.

Direct Shipping Options and Conditions from Turkey:

• Direct Shipping from Türkiye: Sellers based in Turkey can fulfill orders directly from their location. This means you handle storage, packing, and shipping independently without using Amazon’s warehouses.
  
  

Key considerations include:

• Shipping Costs: Calculate shipping costs to various destinations and consider competitive pricing.
  
  
• Customs and Import Regulations: Be aware of customs requirements for each destination country.
  
  
• Shipping Speed: Offer competitive shipping times to meet customer expectations.
  
  
• Customer Service: Handle customer inquiries and returns directly.
  
  
• Amazon Global Selling: Register your seller account on the Amazon Turkey marketplace (amazon.com.tr) to start selling to local and international customers.
  
  
• International Expansion: If you want to sell to customers in other countries, consider using Amazon’s international marketplaces and FBA services to simplify logistics.

ShopiVerse Dashboard:

1. Marketplace Processes
   
   
2. Product Management and Listing
   
   
3. Order Management and Customer Services
   
4. Reporting and Analysis Tools