1. GST guide:
The Goods and Services Tax is a taxation system in India introduced by the Government on 1st July 2017. The main idea behind the implementation of GST was “one nation, one tax”, GST abolishes multiple layers of taxes such as VAT, Service Taxes, Sales Tax etc and integrates all of these taxes under a single indirect tax.
The basic purpose was to reduce the burden of tax on the common taxpayers of India. The Central Government as well as the State Government impose taxes on goods and services, known as IGST or CGST and SGST respectively.
Why do you need GST To start an online business?
It is mandatory for all the online sellers or online businesses to have a GST registration. The taxes have been reduced though. The companies with turnovers less than ₹20 lakh do not have to pay GST. All the businesses which are being executed online, have to register for GST.
Online sellers need to file monthly returns and pay taxes on the required transactions.
Click To know more about Documents Required For GST Registration.
2. Amazon Pricing and Fees:
What are the Different Pricing and Fees?
You do not need to invest a lot to start selling on amazon. Amazon charges the below fees:
Referral fee: Based upon the category of the products that you are selling, there is some percentage that amazon takes from this. There are price tiers according to which this fee is charged.
Closing fee: Based upon the selection of shipment method that the online seller has chosen, the closing fee is decided. The closing fee is a fixed fee as per the price band.
Shipping fee: Depending upon the distance, the regions are divided into zones – Local, Regional & National. Depending on the weight and distance, shipping fee is charged by amazon.
Click To know more about How To Sell On Amazon India with Pricing and Fees.
How much profit will I get After Selling a product?
Depending upon the category and subcategory of the items that you are selling, amazon will charge the fees as described above, so the profit that you will get will depend upon your cost price and the fees that are charged by amazon.
3. Order Delivery:
What are the shipping methods?
Amazon offers three types of shipping methods:
- Fulfilment by Amazon (FBA): This service has various amazon fulfillment centers on selected zip codes. You can check the availability at the time of online amazon seller registration. You just need to drop your products to these fulfillment centers and rest, amazon will take care. Your inventory storage, packing, shipping, all will be taken care of by amazon, once an order is placed.
- Easy Ship: Those sellers who did not opt for FBA, your account is powered with Easy Ship. It is an end to end delivery service. You just need to pack your products and keep them ready. Amazon executives will pick up the order from your doorstep, handle the returns, logistics and customer service.
- Self Ship: The seller needs to store, pack and deliver the orders by himself.
Click To know more about Order Delivery Methods.
4. Global Selling:
How can I enroll in a Global selling program?
Enrolling in the Global selling program enables the amazon sellers to sell their products around the globe. Amazon sellers get an opportunity to reach out to millions of customers. The global selling program launched in May, 2015 is one of the biggest marketplace. The countries included in this global market are – USA, Canada, Mexico, Brazil, United Kingdom, Germany, Spain, Italy, France, Japan, Australia, Singapore and UAE.
Benefits of Global selling on Amazon
- Huge customer base: Selling your products across the globe will increase your customers lists.
- Seamless workflow: The entire process is stress free. The FBA takes care of the shipment to be delivered to the customer safely.
- Increase in sales at festive times: The Indian festivals will grab attention of the Indians which are abroad, by the Indian products that you are selling. Note that, the Black Friday, Cyber Monday, huge sales can be made on these days.
- Earnings in different currencies: Conversions of currency, fund depositing in seller’s bank account etc is all on time and managed by amazon very smoothly.
Click To know more about Amazon Global Selling.
