Amazon FBA Seller News for the Week of April 19th, 2019 | Jungle Scout

Seller chatter:

In a message posted by Amazon_News, in the Amazon Services Seller Forum, sellers were told that there would be some changes made regarding tax collection. 

These changes apply to orders shipped to the District of Columbia or Nebraska, and took effect on April 1st, 2019:

“Based on changes to the District of Columbia and Nebraska State tax law, Amazon will begin calculating, collecting, and remitting sales and use tax for all orders shipped to customers in the District of Columbia or Nebraska on April 1, 2019.

“Your existing tax calculation settings, order details, and payments reporting will update automatically to reflect Amazon’s responsibility. No action to your tax settings or seller account is required.

“Answers to common questions are available in the Marketplace Tax Collection FAQ. Consider working with your tax advisor to determine any ongoing tax remittance and reporting obligations your business might have.

“For more information, see  Marketplace Tax Collection FAQ 2019

“For more information from Nebraska, click here

“For more information from the District of Columbia, click here” – [Thread]

It appears that Amazon is clamping down on sellers who have multiple Seller Central accounts:

“You have used more than one account to sell on our site. This is against our policies. Sellers on Amazon.com are not allowed to use multiple accounts to sell on our site” – Amazon Seller Performance

“There seems to have been hundreds or thousands of Amazon accounts suspended for running multiple accounts. Many saying they do not have multiple accounts [so] may be a bunch of false positives.” – Amazon Sellers ASGTG

Sellers are concerned about ‘false’ reviews affecting their accounts:

“HELP!!! Amazon deactivated my account today. They said I [was guilty of] “Misuse of Ratings, Feedback, or Reviews,” “Misuse of Sales Rank,” and “Misuse of Search and Browse.” – Raymond

Another one is, AMZ is supposedly clamping down on ‘false’ reviews, this has been exacerbated by findings by consumer group ‘Which?‘ in the UK that caused a media storm. It seems though that many obvious Chinese sellers still have thousands of reviews…” – Graeme

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Amazon apologized for its handling of an email sent to sellers last week, regarding changes to fee taxation for sellers active on Amazon.com.

This is the follow-up email that went out, clarifying the upcoming adjustments (you can read the previously sent email here):

Dear seller,

On April 11, 2019, we sent you an email informing you of upcoming changes to the collection of sales tax on some of the fees you pay on Amazon.com. Based on the feedback we received, we realize that we did not include sufficient details in that email, and we would like to apologize. The purpose of this email is to provide greater clarity on the upcoming changes.

We are not increasing our fees. However, some states consider Selling on Amazon fees, such as per item, order, and referral fees taxable services. Similarly, Fulfillment by Amazon (FBA) inventory prep fees, such as bubble wrap, polybag, taping, and labels are considered taxable in some states. To comply with state tax laws, Amazon.com must begin collecting and remitting sales tax on some of these fees. Though we recognize that these taxes will increase costs for some of our selling partners, we expect that the vast majority of fees paid on Amazon.com will be unaffected by these changes in taxability.

Below, we have included a breakdown of the states where we will begin collecting sales tax on certain fees starting June 1, 2019. The location of your business determines whether tax is applicable on the Selling on Amazon fees. The location of the fulfillment center performing the service determines whether tax is applicable on the FBA inventory prep fees. U.S. tax rates typically range between 4% and 10%. State tax rules can change frequently and the information below may become outdated if states make changes to their laws.

For a list of Frequently Asked Questions on this topic, refer to the following page:
[https://jnglsct.com/2vbEDSr]

You will be able to view the sales tax collected on your fees in the transaction details page of your Payments reports.

For a complete list of seller fees, refer to the following Help pages:

Selling on Amazon Fee Schedule:
https://sellercentral.amazon.com/gp/help/G200336920

Regards,
Amazon Services

In the news this week

Need to know for Amazon FBA Sellers:

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