Amazon has started sending emails out to sellers in the United States marketplace about a new international marketplace opportunity that requires no effort from the Seller in which to take part.
Sellers have known for a while that it’s possible to create listings in multiple marketplaces. Professional sellers have the opportunity to list products for Fulfillment by Amazon in a large handful of different regions. Starting today, U.S. sellers now have the chance to let Amazon sell in other marketplaces on their behalf.
On the outset, it sounds a bit strange, but let’s break it down. The process works like this:
- Buyers in another marketplace want an item that only exists in the United States marketplace.
- The Foreign Buyer clicks the buy button on the listing they see.
- Amazon instantly buys that same unit quantity of your product that resides in the U.S. Mar for the amount the Seller has listed.
- Amazon ships that product overseas to the end customer. The Seller is not responsible for shipping, customs, etc.
For example, a buyer in England is looking to buy a dingus for £29, but it doesn’t reliably and consistently exist in their area. They see the listing on Amazon.co.uk for that price and click BUY. That purchase triggers a sale from a U.S. Seller for their local rate of $36. Amazon pulls that item from the Seller’s stock as it would for domestic purchases and ships it to the English customer. The Seller sees an order that describes the buyer as being Amazon.com, and the English customer sees their product coming from Amazon.co.uk.
The Foreign Buyer never had to go to an international marketplace and pay any fees or taxes, nor did the Domestic Seller have to list their product in a different region.
Domestic Sellers will always receive their listed price for the item as if a local sale took place. Nothing will look different. There are also no additional fees for this service.
By default, every U.S. seller is opted-in to this program. To opt-out, click this link and choose Disable or log into Seller Central and choose Settings > Fulfillment by Amazon and look for the Allow Amazon to buy my products to sell globally header.
There are a couple of caveats that may be dealbreakers for some and require opting out entirely:
- If you, the domestic Seller, have any geographically-restricted distribution agreements in place
- If there’s a desire to be selective on which products are available for this service. (Amazon claims there might be filtering capability in the future)
Also worth noting is that sales tax will still be calculated based on Amazon being the customer. No tax dodging, here.
This program is live and ready to go. Be on the lookout for orders where Amazon is purchasing your goods for money. If these types of orders start appearing, this program is what’s generating them. Looking at my order history, I haven’t seen anything, yet, but I’m sure it’ll surface eventually.
You can read more about the program here (login required).