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April 16, 2025by adminUncategorized

Employee purchasing the business. What happens to our account?

I am the only employee for a small business and I am in talks to purchase our company as the owners wish to retire.

We currently sell on Amazon, both FBM and FBA.

The name of the company would stay the same, but the LLC would change from a partnership (the husband and wife who are looking to retire) to just myself and I know this would generate a new EIN number and change the name associated with the business.

The address of the business would also change, though it would still be within the same state.

Is it possible to keep the existing Amazon account, or would I have to start over?

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April 15, 2025by adminUncategorized

Employee purchasing the business. What happens to our account?

I am the only employee for a small business and I am in talks to purchase our company as the owners wish to retire.

We currently sell on Amazon, both FBM and FBA.

The name of the company would stay the same, but the LLC would change from a partnership (the husband and wife who are looking to retire) to just myself and I know this would generate a new EIN number and change the name associated with the business.

The address of the business would also change, though it would still be within the same state.

Is it possible to keep the existing Amazon account, or would I have to start over?

submitted by /u/FromLurker2Poster
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April 15, 2025by adminUncategorized

OTDR Badge has Disappeared

I didn’t have SSA or AHT enabled yet I got the OTDR badge on my shipping options(to suggest using SSA and AHT). I also noticed my OTDR metrics dip below 90% so I looked and the items shipped that had OTDR were still counted as late.

After researching I find that I have to have SSA and AHT enabled for the orders showing OTDR to NOT count against metrics.

So I enable both and then the OTDR badge disappears completely under my shipping options.

It is enabled for standard shipping and yet no badge., Only Claims Protection badge shows.

submitted by /u/thenichethinktank
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April 15, 2025by adminUncategorized

OTDR Badge has Disappeared

I didn’t have SSA or AHT enabled yet I got the OTDR badge on my shipping options(to suggest using SSA and AHT). I also noticed my OTDR metrics dip below 90% so I looked and the items shipped that had OTDR were still counted as late.

After researching I find that I have to have SSA and AHT enabled for the orders showing OTDR to NOT count against metrics.

So I enable both and then the OTDR badge disappears completely under my shipping options.

It is enabled for standard shipping and yet no badge., Only Claims Protection badge shows.

submitted by /u/thenichethinktank
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April 15, 2025by adminUncategorized

Tariffs Are Reshaping Amazon—Here’s Why White Labeling Is 2025’s Smartest Move

With Chinese sellers retreating from the U.S. market, white label sellers are stepping into the spotlight. If you’ve ever struggled to stand out or compete on price, 2025 is the most strategic moment to pivot and profit.

Tariffs have returned to the spotlight in 2025—and they’re hitting harder than ever. With the U.S. hiking import tariffs on Chinese goods to a jaw-dropping 125%, many Chinese Amazon sellers are facing a tough choice: raise prices or exit the U.S. market altogether.

This sudden shift is creating a ripple effect across Amazon’s marketplace. But for U.S.-based sellers, particularly those in white labeling or private labeling, it’s also unlocking an unexpected window of opportunity.

So… what does this mean for you?

Let’s break it down.

Chinese Sellers Are Pulling Back. Here’s What That Means.

As of April 2025, multiple reports have confirmed that Chinese Amazon sellers are scaling back operations or exiting the U.S. due to soaring tariffs and increased scrutiny. This comes on the heels of additional supply chain disruptions and retaliatory trade moves by China.

  • Less hyper-aggressive pricing
  • Fewer “race-to-the-bottom” sellers in certain categories
  • More open space for sellers who understand branding and customer experience

This isn’t a minor policy change. It’s a seismic reset of your competitive landscape.

If you’ve ever felt like you were priced out of your own category, this might be your moment to regain margin, visibility, and control.

2025 Tariffs - What Amazon Sellers Need to Know

Read more about how these tariff changes are impacting sellers in our top blog: Amazon Tariffs 2025: What Sellers Need to Know

White Labeling: The Right Strategy at the Right Time

White labeling allows you to sell existing manufactured products under your own brand. Unlike reselling or dropshipping, white labeling gives you more control over pricing, branding, and customer loyalty—without the complexity of full-scale product development.

With fewer low-cost sellers dominating the Buy Box, U.S.-based white label brands now have a real shot at capturing market share.

Why White Labeling Works in 2025:

  • Faster product launches compared to custom manufacturing
  • Lower upfront investment than private labeling
  • Full brand ownership to build customer loyalty
  • Easier to scale with Amazon FBA, Seller Fulfilled Prime, or hybrid models

Bonus Tip:

If you’re attending the White Label World Expo this October, it’s a perfect opportunity to connect with manufacturers, learn market trends, and build sourcing relationships.

How Seller Labs Helps You Scale Smarter

Whether you’re exploring white labeling for the first time or doubling down to seize the current momentum, you need tools that give you visibility, automation, and control.

Here’s how Seller Labs helps sellers thrive:

📦 Smarter Inventory Management

Avoid overstock penalties and stockouts with our Restock App, built to give you demand-driven restocking recommendations—so you never miss a sale or tie up too much capital.

🎯 Data-Driven Advertising

With fewer sellers in your niche, ad performance becomes a major lever. Our Ad Genius helps you optimize your Amazon PPC with keyword suggestions, dayparting strategies, and real-time insights.

⭐ Automate Reviews & Boost Conversion

Use Seller Labs’ Feedback Genius to build trust with reviews and seller feedback—key for building momentum as a new white label brand.

Real Talk: Selling Smarter > Selling More

With Chinese sellers exiting, ad CPCs may dip, Buy Boxes may rotate more, and underserved niches could suddenly become viable.

But this moment is temporary.

The sellers who win in 2025 will be those who act fast, invest in brand control, and optimize their back-end with real data.

💥 Ready to Make the Most of This Market Shift?

Whether you’re launching your first white label product or scaling up to reclaim market share, Seller Labs is here to help you move faster and sell smarter.

Start your free trial today!

The post Tariffs Are Reshaping Amazon—Here’s Why White Labeling Is 2025’s Smartest Move appeared first on Seller Labs: Amazon Seller Software and Platform.

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April 15, 2025by adminUncategorized

Influencer platforms geared towards Amazon Sellers?

Hi – does anyone know of any self service influencer marketing platforms that are geared toward Amazon sellers? I have been doing PPC but heard influencers can be much cheaper! Thanks in advance!

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April 15, 2025by adminUncategorized

Influencer platforms geared towards Amazon Sellers?

Hi – does anyone know of any self service influencer marketing platforms that are geared toward Amazon sellers? I have been doing PPC but heard influencers can be much cheaper! Thanks in advance!

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April 15, 2025by adminUncategorized

Getting denied for seller approval

Can any anyone- please anyone explain what worked for them to get approval in a category? Do I need to get approval for e dry single dropshipping product- or simply just get one approval?

submitted by /u/This-Pay-9879
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April 15, 2025by adminUncategorized

Getting denied for seller approval

Can any anyone- please anyone explain what worked for them to get approval in a category? Do I need to get approval for e dry single dropshipping product- or simply just get one approval?

submitted by /u/This-Pay-9879
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April 15, 2025by adminUncategorized

Amazon Seller Taxes: A Practical Guide

Amazon Seller Taxes: A Practical Guide

Confused about Amazon seller taxes? You’re not alone.

Whether you’re making your first few sales or scaling toward six figures, tax season catches many sellers off guard. From income taxes to deductions and tracking tools, this guide walks you through exactly what to do—with no fluff.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. The author is not a certified tax professional or attorney. No liability is assumed for reliance on the information provided. Please consult a qualified advisor for guidance specific to your business.

What You’ll Learn

In this guide, you’ll find clear answers to common tax questions Amazon sellers face—especially if this is your first time filing. You’ll learn what taxes you’re responsible for, what expenses you can deduct, which tools simplify tracking, and when to bring in professional help.

 

Common Questions found on Amazon Taxes

Overview

  • New to Amazon Selling? Start Here
  • Do Amazon Sellers Have to Pay Taxes?
  • Does Amazon Collect Sales Tax for Sellers?
  • What Tools Help Simplify Amazon Seller Taxes?
  • What Can Amazon Sellers Deduct?
  • How Should Amazon Sellers Handle Bookkeeping?
  • Do You Need a CPA or Bookkeeper?
  • Can Retirement Contributions Lower Your Tax Bill?
  • How Can You Prepare for Tax Season?
  • FAQs
  • Conclusion

 

New to Amazon Selling? Start Here


Separate your business and personal finances.

If not, you may one day try to find the receipt for your recent purchase of packing tape, only to realize days later that you bought it on your most recent grocery run from Costco. Yeah, not ideal.

Use a dedicated bank account and credit card for all business-related income and expenses. This can help you keep a clear outlook on your business health too.

Register your business.

You can start as a sole proprietor and later switch to an LLC. Although, you dont need an LLC (Limited Liability Company) to sell on Amazon, you can start selling immediately under your name just as a sole proprietor, which is the simplest way to sell products.

The only difference between the two is that you would have more protection with an LLC, which legally separates the business from its owners.If you start a single-person LLC, you will get the same taxes as a sole-proprietor but with more protection (JungleScout, 2024)

Make sure you’re properly registered with your state based on your structure. Although you don’t need a business license when opening an Amazon seller account, it might be required by your local government. If you are a wholesale seller, you would need a business license and a sales tax permit.

If you are a private label or retail arbitrage seller, a business license is not necessary.

Start tracking everything.

From the moment you start selling, log all income, fees, purchases, and software subscriptions, even if it’s a side hustle.

You can either start with tracking on your own using spreadsheets if you’re an excel whiz, or Amazon’s built-in tools like Reports to access your sales data and expenses whenever needed.

The key expenses to track on Amazon include referral fees, shipping and fulfillment expenses, advertising costs, and other ongoing costs. To master the art of control over your profits, you must be diligent in tracking your expenses.

Leverage technology to make expense management a breeze. Check out the best Amazon accounting software for sellers. Accurately calculating your costs would allow you to effectively adjust your pricing strategy.

It goes without saying, that Future You would thank You when you plan ahead and invest in tracking.

Pick a system for your books.

QuickBooks is great for general accounting, their plans start at $307.64/month to track yoour income and expenses.Alternatively,  Inventory Lab is also a good option tailored for FBA sellers starting at $69/month.

Get a CPA early.

Don’t wait until tax season, partnering with an Amazon Accountant or a CPA ahead of time prevents costly errors and ensures you stay compliant from day one. Check out this article if you’re wondering whether you should hire an Amazon Accountant.

 

Do Amazon Sellers Have to Pay Taxes?

Yes. Amazon sellers are required to file income taxes, even if Amazon handles sales tax in your state.

You’re responsible for reporting business income, self-employment tax, and any deductible expenses. This applies whether you’re full-time or just testing the waters.

 

Does Amazon Collect Sales Tax for Sellers?

Yes, in most states and only for sales tax.

However, there are five states with no statewide sales tax, so Amazon does not collect on behalf of sellers in:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon
Note: In states like Alaska, local jurisdictions may still impose their own sales taxes. If you operate or store inventory in a locality with local tax, you may still have obligations.

 

Amazon collects and remits sales tax under Marketplace Facilitator Laws. However, you are still responsible for filing your own income taxes.

You can confirm which states Amazon collects for by going to your Seller Central → Reports → Tax Document Library.

Tax Type Who Handles It Your Role 
Sales Tax Amazon Confirm states, keep records
Income Tax You File federal/state returns annually

 

Real Seller Tip: “I use a prep center to avoid paying sales tax and never file tax exemption paperwork.”

 

For more clarity, check out Amazon Marketplace Tax Collection Policy here.

What Tools Help Simplify Amazon Seller Taxes?

  • QuickBooks. Tracks income and expenses, syncs with your bank, and creates reports for filing.
  • Inventory Lab. Helps Amazon sellers track cost of goods sold (COGS) and generate a clean profit and loss statement.
  • GoToLister. Lets you export your Amazon sales, fees, and inventory cost data—so your CPA can file taxes quickly and accurately.

 

Real Seller Tip: “GoToLister’s net profit reporting is rolling out soon to simplify your full tax view.”

 

 

Looking for the ultimate Amazon pricing tool? Our AI-powered repricer integrates seamlessly with your workflow—track profits, automate pricing, and win the Buy Box effortlessly.

Try Our Repricer Free

What Can Amazon Sellers Deduct?

Here are some of the most common deductions you can claim:

Inventory and product costs

This includes the wholesale price, cost of manufacturing, or any other direct cost related to your products (also known as Cost of Goods Sold).

Shipping and fulfillment fees
Expenses like postage, prep materials, shipping supplies, and fulfillment center fees all count.

Home office expenses

If you have a dedicated workspace, you may be able to deduct part of your rent, utilities, internet, furniture, or business-use electronics.

Amazon seller fees

Referral fees, FBA fees, storage fees, and any platform-related charges are deductible business expenses.

Vehicle use and mileage

If you drive for inventory sourcing, supply runs, or business meetings, mileage and vehicle expenses may be deductible (track your trips).

Charitable donations

Donating unsellable or damaged inventory to charity? You might be able to claim a deduction for those contributions.

Subscriptions and memberships

Deductions may include paid e-commerce tools, business platforms, and seller support services.

Business education

Courses, e-books, webinars, and training materials related to Amazon selling or e-commerce can be written off.

Business software

This includes tax, inventory, and analytics tools—such as GoToLister, repricing software, and other operational tools.

Marketing and advertising

You can deduct expenses for online ads, social media promotions, branded packaging, business cards, or promotional flyers.

Employee compensation

Wages, salaries, and benefits paid to employees are fully deductible.

Professional services

Payments to accountants, consultants, legal advisors, designers, or copywriters hired to support your business qualify as deductions.

Remember to keep receipts and documentation for each of these expenses. Digital records (like email confirmations and statements) are fine, but they must be organized and traceable in case you’re audited.

 

Real Seller Tip: “Your phone can be an expense. Your car can be an expense. Just make sure your CPA understands how to apply that.”

 

 

How Should Amazon Sellers Handle Bookkeeping?

 

Track consistently

Update your records weekly or bi-weekly. Waiting until tax season creates panic and confusion.

Reconcile regularly

Match your income/expenses in your spreadsheet or software to your bank and Amazon payout reports. This ensures no transactions are missed.

Store documentation

Save digital or physical copies of receipts and reports. Keep a record of each product’s cost and corresponding sale for accurate deductions.

Beginner tip

If you’re under $10K in monthly sales, a spreadsheet is okay. But once you scale, automated tools will save hours of time and reduce costly errors.

 

Real Seller Tip: “If your books are clean, taxes are a breeze.”

 

Too much time spent managing pricing manually? Let our smart repricer handle it for you—so you can focus on growing your business, not spreadsheets.

Automate My Pricing

 

Do You Need a CPA or Bookkeeper?

If you’re feeling overwhelmed or unsure if you’re doing it right, it’s time to consider one.

Bookkeepers help track and categorize your finances.

CPAs help you file taxes, find deductions, and avoid mistakes.

It’s best to look for professionals with e-commerce or Amazon-specific experience, since fees, returns, and inventory reporting differ from traditional businesses.

 

Real Seller Tip: “I paid $700 to offload tax stress and focus on sourcing—money well spent.”

 

 

Can Retirement Contributions Lower Your Tax Bill?

Yes. Contributing to a retirement account like a SEP IRA, Solo 401(k), or traditional IRA can significantly reduce your taxable income.

You can open these accounts with providers like Fidelity, Vanguard, or Charles Schwab. A CPA can help calculate your ideal contribution based on income and tax bracket.

 

Real Seller Tip: “I invested in retirement accounts, and it lowered how much I owed in taxes.”

 

 

How Can You Prepare for Tax Season?

 

Start early

Begin organizing your records in Q1, don’t wait until January of the following year.

Keep reports updated
Maintain monthly profit and loss statements and keep your inventory log current.

Meet your CPA in Q4
This gives you time to adjust contributions, clean your books, or plan for deductions.

 

Real Seller Tip: “I file an extension—but only because my books are clean and ready.”

 

FAQs

Do Amazon sellers need to pay quarterly taxes?

Yes. If you expect to owe more than $1,000 in federal income taxes, you’re required to make estimated quarterly payments throughout the year.

What is a 1099-K and when do I get one from Amazon?

The 1099-K form reports income you’ve earned through third-party platforms like Amazon. Prior to 2022, you’d receive one if you made over $20,000 in sales and 200 transactions. Now, the threshold is much lower—if you receive over $600 in gross payments, Amazon will issue a 1099-K, regardless of how many transactions you have.

If you notice any inaccuracies on your 1099-K, contact Amazon to request corrections before filing your return.

How do I file taxes as an Amazon seller?

Most Amazon sellers need to file a Schedule C (Profit or Loss from Business) along with their Form 1040. This applies even if Amazon is just a side hustle. Schedule C allows you to report income and claim deductions like office expenses, supplies, software, education, and professional services.

Can I deduct health premiums and retirement contributions?

Yes. If you’re self-employed, health insurance premiums and contributions to qualified retirement accounts (like a SEP IRA or Solo 401(k)) may be deductible. These deductions can significantly reduce your taxable income.

Does Amazon handle sales tax for me?

Amazon collects and remits sales tax in most states due to Marketplace Facilitator laws. However, it’s your responsibility to ensure that the settings in Seller Central are correctly configured. FBA sellers may also have sales tax nexus in any state where Amazon stores their inventory, which could require additional filings depending on the state’s rules.

What is a sales tax nexus and why does it matter?

Sales tax nexus means having a business presence or economic connection in a state. For Amazon sellers, this can happen when your inventory is stored in an Amazon fulfillment center in that state. If you have nexus in a state, you may be required to register, collect, and remit sales tax there—even if Amazon already does some of it on your behalf.

What if I didn’t track my expenses this year?

Don’t worry—many sellers go back and rebuild their records using Amazon reports, bank statements, and credit card logs. The IRS allows a three-year lookback period, and accurate reconstruction is far better than skipping deductions entirely. Consider hiring a bookkeeper if you need help organizing retroactive data.

Can I deduct my home office if I sell part-time?

Yes, as long as the space is used regularly and exclusively for your Amazon business. Even small, dedicated workspaces may qualify under the simplified or actual expense method.

What’s the best bookkeeping software for Amazon sellers?

QuickBooks is a great general-purpose solution. For Amazon FBA sellers, Inventory Lab is highly recommended because it integrates directly with Amazon, tracks cost of goods sold (COGS), and generates real-time profit reports. Some sellers also use GoToLister for exporting Amazon data for tax prep.

 

Conclusion

Filing taxes as an Amazon seller doesn’t have to be stressful or confusing. With consistent bookkeeping, the right tools in place, and guidance from a qualified tax professional, you can stay compliant, uncover valuable deductions, and protect your profits.

Start early, stay organized, and don’t be afraid to ask for help. Your business (and your future self) will thank you.


Get real seller tips on Amazon Taxes

Our real seller tips can be found here in our most recent video:

🔥 Limited-Time Offer: Get 50% off your first month of the AI Deluxe Plan, just $25 (same price as Basic)

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The post Amazon Seller Taxes: A Practical Guide appeared first on BQool Blog.

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