As a seller of cross-border e-commerce, if you want to sell products in the most developed countries and regions in the world and seize market share, then the Amazon platform will be the best choice for cross-border sales.
The Amazon platform has a relatively large consumer population and high consumer unit price, making it the world's largest cross-border e-commerce platform.
Looking back on 2021, Amazon’s policies such as a large number of store closures and crazy increases in shipping costs have caused major sellers to complain. Now Amazon has resumed investment promotion, and the policy for opening stores is much looser than before. Many domestic sellers have regrouped and want to join Amazon. Take advantage of the opportunity on the wind to break out of the world.
At present, there are two ways to become a member of Amazon:
1. Register with Amazon Global Store in China
First, you need to register a Chinese company, and then apply for an Amazon account to sell cross-border on Amazon;
2. Register an Amazon store in the United States
In this way, you need to register a US company and then apply to become an Amazon seller through the Amazon platform.
Although it is possible to register an Amazon account directly through Amazon Global Store in China, the pass rate for sellers to apply for a global store by themselves is low, the registration period is long (usually more than two months) , and the supervision is also very strict.
With the gradual increase in the threshold for Amazon registration, more and more Amazon sellers have realized the advantages of registering US companies and have registered US companies to join the Amazon platform.
Advantages of Amazon sellers registering a US company:
1. The account closure rate applied by American companies is less than 1%, and the account closure rate applied by mainland and Hong Kong companies is as high as 30%;
2. As a local company in the United States, Amazon will take care of accounts registered by American companies in terms of titles, promotions, etc.;
3. Consumers on the Amazon platform trust the local products of American companies more, which will help sellers to increase their sales;
4. There are not so many SKUs for products. There are 400 SKUs that need to be classified and reviewed when opening a store in the world. Even electronic products have 100 SKUs that do not need classified review;
5. The time it takes for an American company to apply for an account is shorter than that for a global store;
6. Compared with China, more commodity categories can be applied for;
7. U.S. company registration is more free, registration maintenance is simple, no business scope and registered capital restrictions.
Of course, in addition to the above advantages for sellers who are ready to settle in Amazon, registering a US company also has many benefits for other non-Amazon e-commerce companies:
1. Facilitate cross-border e-commerce payment collection
2. Can create international brands and enhance corporate image
3. Can reasonably avoid tax and reduce corporate tax burden
4. It is possible to set up a joint venture by reverse investment
5. Walmart, Overstock, Sears, etc. also restrict entry to only American companies.
To sum up, for the increasingly competitive cross-border e-commerce industry, the advantages of registering a US company outweigh the disadvantages.