Brief about Amazon
Headquartered in Seattle, Washington, Amazon was founded on 5th July 1994 by Jeff Bezos and today is the largest e-selling portal across the world both in terms of market capitalization and market sales. Initially it was started as an online bookstore but later on diversified into other areas as well such as DVDs, Blu-rays, CDs, video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, software, video games, electronics, apparel, furniture, toys, jewellery, kitchen appliances, home furnishings and decorative. Amazon has recently started with the Amazon pantry for grocery items. Apart from the above mentioned lists, it is also one of the largest providers of cloud infrastructure services such as Iaas and Pass.
Started in the year 1994, Amazon has already surpassed Walmart in the year 2015 an das of today own approximately over 40 subsidiaries including Zappos, Shopbop, Dipaers, Kiva systems also known as Amazon Robotics, Audible Goodreads, Teachstreet and IMDB.
Amazon – Favorites Online Shopping Portal
What makes Amazon a popular and favourite online shopping portal is that it has separate retail websites for the countries it cater for such as the United States, the United Kingdom, Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, India, Brazil, Japan, China, Mexico and recently started Dutch,Polish and Turkish versions of its website.
There goes a history behind why the company name was changed to Amazon, replacing the initial name “Cadabra”. It is said that the founder of the company i.e. Jeff Bezos browsed through an English dictionary to find a word starting with “A” considering the importance of alphabetic placement and was looking for a word which means “exotic and different”. Also as a reference to his plan for the company’s size, he wanted the same to reflect the size of Amazon River, famous as one of the largest rivers in the world and thus zeroed down the present name i.e. Amazon.
Amazon decided to test Indian waters in the year 2012 by introducing a website called as Junglee which allowed the user to compare the price of various items, however there was no provision of making a direct purchase from Junglee and progressed further by introducing its Indian counterpart Amazon India in the year 2013 with an investment plan of more than 2 billion US Dollars and Amazon India presently sells millions of goods over its platform.
It was in May 2015 when Amazon launched its global selling program which facilitates easy, simple and convenient access to you to sell your products globally and as of today approx 37,000 Indian manufacturers, sellers and exporting are making the best use of Amazon’s global selling program and using it to explore 10 different marketplaces across the world namely North America, Canada, Mexico, the United Kingdom, Germany, Spain, Italy, France, Japan and Australia. Categories like home décor and handicrafts, tapestries, bedsheets and duvet covers, dinnerware and copper mugs, art supplies and writing instruments, ethnic wear and women dresses, kitchen linen and leather messenger bags are quite popular amongst the natives of these countries. Whereas some Indian sellers prefer to explore both the national and international market, many of them prefer to sell only in the international market whereas few of them are happy to stick to their country’s market.
Why Choose Amazon for Selling Online?
The prime reason why more and more people are opting Amazon’s selling platform is because of the numerous advantages it offers over starting your own e-commerce website when you start your own selling website; you have to take care of each and everything starting from its development and maintenance, maintenance of the online marketplace, logistics handling, marketing etc whereas Amazon is taking care of all the above mentioned activities on your behalf.
Indian regulations are as such that prevents multi-brand retailers from selling their products online directly to the consumers directly and thus Amazon acts a third party seller to India’s online shoppers and third party retailers sell their products using Amazon site using its marketplace model, which is a very familiar retail concept in India where sellers product is stored in Amazon warehouse near Mumbai and then it packs and courier the product as per the order placed on Amazon.
Become Seller on Amazon
In order to become a seller on Amazon, you need to first get yourself registered on the its seller sign up page and in order to do so, it is important that you register yourself either as an Limited Liability Partnership (LLP) or One Person Company (OPC) or Private Limited Company because firstly registering yourself as either of the above firstly provides you with limited liability protection and secondly it is easier to start as compared to other entities and it is always better to cover yourself with limited liability protection because while selling products through e-commerce portals such as Amazon or Flipkart, it is not very unusual to face litigations from the consumers/vendors. Also it offers you with world class logistics solution – Fulfillment by Amazon (FBA) which helps to pack and ship your products to international customers across the globe in a time as low as 2 days. Apart from FBA, it also offers solutions like “Sponsored Products” which along with advertising your products in global world also helps in increasing brand visibility.
How to sell your products globally with Amazon?
Any Questions? Request a callback from our Tax Experts.