Tax and Tariff Management for Sellers
Tax and tariff gutting your Amazon profits?
Stop reacting and start strategizing.
What Tax and Tariff Management Really Means
Think tax and tariff management is just dull accounting work best left for later? Big mistake.
It’s your frontline defense, a strategic plan, to shield your Amazon business from unpredictable government rules and duties designed to carve out a chunk of your earnings.
With import tariffs swinging wildly and sales tax laws constantly shifting across states and countries, just hoping things work out isn’t a business plan; it’s gambling with your margins.
Mastering tax and tariff management means actively planning how to handle these costs, identify savings, and keep more profit in your pocket, regardless of the latest political winds. It’s about taking control where you can.
Why Sharp Tax and Tariff Management is Non-Negotiable for Sellers:
- Guard Your Bottom Line
Stop surprise duties and overlooked taxes from silently shrinking your profits. Know your true landed cost for every product.
- Dodge Expensive Fines & Holds
Getting tax or customs declarations wrong leads to painful penalties, seized inventory, and account headaches. Smart management keeps you compliant and out of trouble.
- Price for Actual Profit
Stop guessing. Understand the full cost, including all duties and taxes, before setting your price, so you know you’re actually profitable on each sale.
- Smooth Out Your Cash Flow
Predictable cost management means tax and duty payments are budgeted, not surprise hits that drain your operating cash when you least expect it.
- Build a Stronger Business
While unprepared sellers scramble to react to every new rule, proactive tax and tariff management gives you stability and a potential edge in pricing and profitability.
Watch these tax and tariff videos
Key Points to learn:
- Use tax & tariff management strategically, not reactively, to protect profits from changing rules.
- Understand full landed costs (including taxes/tariffs) for profitable pricing and compliance.
Key Points to learn:
- Amazon’s Marketplace Facilitator legislation simplifies state tax collection for sellers in most states.
- Sellers may need to manually register for tax in Delaware, Montana, New Hampshire, and Oregon, though the speaker advises against it without a physical presence.
Key Points to learn:
- Amazon sellers, particularly the 65% who manufacture in China, face potentially significant price hikes due to increased tariffs.
- Amazon sellers are advised to initially wait and avoid immediate price changes, but to strategically plan their pricing and consider renegotiating with manufacturers.
Key Points to learn:
- The end of the de minimis loophole means many Chinese imports will face taxes, potentially benefiting US-made goods on Amazon.
- Amazon sellers should prioritize core business tasks amidst tariff uncertainty, as immediate strategic changes are difficult for most.
