Remote Fulfillment with FBA
I have a few questions in regards to Remote Fulfillment with FBA. I have 30 days before being enrolled automatically and need a little more clarification before I decide to opt out. From the help page I see the following,
"Eligible sellers will have their eligible products automatically enrolled in the program and will have offers on Amazon.ca, Amazon.com.mx, and Amazon.com.br. Amazon will use your inventory in US fulfillment centers to fulfill orders across the border directly to customers through Amazon.com services LLC."
Does this mean I will be charged $39.99 a month for each of those marketplaces (Amazon.ca, Amazon.com.mx, and Amazon.com.br.) totaling $160 a month just to sell in those market places? When creating my account along with the product listing I only chose to sell in the US to avoid those extra monthly charges as of now until I can be confident and sure my product will do well on Amazon. Also, I didn't have the option for Brazil Marketplace when setting up my seller account nor for creating my product listing.
I also see from the Program fees section the following,
"Program fulfillment fees and surcharges apply only to sales of products on Amazon.ca, Amazon.com.mx, and Amazon.com.br and are different from your US FBA fulfillment fees. Standard US FBA fulfillment fees will apply for sales on Amazon.com. The referral fee will be based on the store where the customer buys the item.
Note: Customers, not sellers, pay import duties and taxes on items bought through Remote Fulfillment."
Overall, I guess I'm just looking to confirm that with this Remote Fulfillment with FBA that I am not charged any additional fee myself for either monthly and or per unit sold when it comes to the other marketplaces. That said fees will be placed on the BUYER and not the seller. I don't know if I'm overthinking but, verbiage is unclear on the help page (for me at least).
I don't want to have to pay anymore that I'm already expected to pay which is my original $39.99 for my monthly seller account in the US along with my estimated fee per unit sold, shipping plan fees and any sponsored/promotional fee I may encounter when wanting to advertise my product. With that being said, is my best option to "opt out" of this program?
Any clarification on the topic would be extremely helpful, I do appreciate and thank you for your time in advance.
2 replies
Seller_NbYSGJ8Tehgbv
Does this mean I will be charged $39.99 a month for each of those marketplaces
No. CA/MX/BR are included with your USA subscription and the cost remains at 39.99 even if you try and take CA/MX/BR off.
That said fees will be placed on the BUYER and not the seller
No. FBA fees will be higher for CA/MX/and BR. You should adjust your pricing in each market accordingly to account for this FBA fee increase for those markets.
Seller_xo4Akj7FBBnfC
I caution anyone who is considering "Remote Fulfillment with FBA" to carefully consider the tax consequences.
HERE is a link to our previous posts detailing how Amazon doesn't include its "Remote Fulfillment with FBA" US Dollar payments - which must be reported to the IRS as income - in either US sellers' 1099-Ks or their US Dollar Summary Reports.
Unless you're willing to manually investigate every US Dollar deposit to match with corresponding entries on different foreign-currency Summary Reports - which isn't easy because of the sparse details provided by Amazon (e.g., no per-deposit currency conversion rates) - you'll be in violation of US tax law and could face heavy penalties in the event of an IRS audit.
It's frustrating that Amazon automatically enrolls US sellers in this program that tripled our accounting overhead and caused us to re-file numerous federal tax forms to avoid a costly IRS audit - all because of inadequate Amazon reporting.
We opted out of "Remote Fulfillment with FBA" once we discovered this enormous bookkeeping overhead.
