Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners‪,‬ Michael Veazey

Intro







Let's talk about rhythm, shall we? In your life. Now my background is a musician, and so I naturally think of rhythm. When I was teaching people and still conducting choirs evenings and weekends, I'm always banging on about rhythm. And what does that mean? Well, it's really about having a shape to time, if you will.







And that is something that's very, very important for productivity in life and in business. So today, now that I'm surrounded by a beautiful garden here and talking about seasons and seasonality is very much on my mind. Let's discuss rhythm and how that affects your use of time as an organic way of using and managing your time. Stay tuned.







Seasonality in Nature and E-commerce







Hi, this is Michael Veazey, and today I'm coming to you from our lovely garden. I think it's lovely anyway in Hertfordshire. So about a year ago, in May 2023, I was sent up by my wife to go find ourselves somewhere more peaceful to live. We were in a flat in London, a bit noisy, very urban, not really relaxing. We wanted a house and a garden, and we've got them.







The garden, of course, is a thing that really makes you think about seasonality. And today, I want to talk about rhythms in your business. We can start with seasonality and the overall shape of each year as a very, very good start.







Now, it's not rocket science to say that quite a few businesses or ways of making a living have strong seasonality. So the two that I'm most familiar with, my old profession of teaching and making music (I still conduct choirs in the evenings and weekends and love doing so), and e-commerce both have very strong seasonality.







Some jobs, I guess, you just grind along same old same old week to week and then have your couple of weeks off in the summer, and that's it. That is not the case for education. In education, my wife's still working very, very hard in the summer because lots of institutions have exams. So A-level students are having exams. My wife's off playing the piano for music colleges in London where people are playing very difficult music for their end-of-year exams. E-commerce is no different.







Embracing Seasonal Rhythms







In e-commerce, if you sell something that's giftable, you will find that it becomes crazy in Q4. In other words, November and December, just before Christmas or the holiday season if you wish to call it that. And of course, that changes everything about your year. The rhythm of your year, your week, and your day is really to some extent dictated by others.







To the extent that you recognize that, you get in tune with your market and the way things operate in your industry, then you will find that things work better. If you try and fight it or just ignore it, that's one of the signs that things are wrong. One of the things that is really important is if you do have a strong Q4-centric business.







By the way, a lot of people who are at an early stage or even pre-revenue entrepreneurs (I don't tend to work with those anymore) are obsessed with the idea that they can even out the sales, cash flow, and inventory and have a non-seasonal type business. But the truth is that the businesses that I know that do really well embrace the seasonality and roll with it. They understand that that is the nature of the market they're in.







Planning for Seasonality







Rather than trying to go in three and four different markets that magically balance each other out in theory (one could have that but in practice I don't see that), I see people who successfully manage the seasonality. So, I think you have to roll with the rhythms of your industry, your marketplace,

Hey folks, I have some bad news that I think Amazon third-party sellers need to know based on Amazon's recent earnings call. Stay tuned. 







3 insights for Amazon sellers from Amazon's recent earnings call







So there are three facts in the recent earnings call, which I thought are a little bit scary for Amazon third-party sellers, and we need to join up the dots and think this through as Amazon sellers. Here they are: 







1. Amazon's profits are up - largely due to third-party sellers paying more for ads!







Number one profits on advertising up a metric ton, which means more expensive sales for us. So Amazon should say thank you to the third-party sellers.







And of course, we all know this from experience, but it is a fact, and it's clear that Amazon is, as it has been, continuing to prioritize using advertising as the main way of making not so much revenue as profit from its third-party marketplace and indeed the entire marketplace. That's the first one.







2. Investment in FBA is down - bad news for third-party sellers







Second one. Investment in the FBA system, which has been a big percentage of their capex, the capital expenditure, is going to be less as a percentage going forward. So that means less fulfillment capacity relative to demand, which is not good news for third-party sellers, of course.







It means that also our money is not being spent and being reinvested in the fulfilment system. So where is it going? Is it just going to the shareholders? Well, no, they're not interested in giving away dividends. It's still a growth stock as far as the stock market's concerned. So where is it going?







3. Investment in AWS is up







The percentage of capital expenditure going to AWS is booming. Now that makes sense for Amazon because AWS made about 65 per cent of their operating profits in the past year - and their view is that that is going to grow like topsy because most computing power is desktop. So in other words, it's not on the cloud yet, but that is going to be a huge growth story.







Now that's probably true for Amazon. And if you want to buy a stock market investment, well, I'm not a stock market investor, but there is a little bit of a hint. Well, I don't, I mean, I invest privately, but I advise publicly. There's a bit of a hint there, isn't there? So you might want to consider Amazon as a great stock, not based on it being an e-commerce company, but it'd be in a pure sort of tech play as a platform for other people to do their tech work - famously, even the CIA uses AWS! 







Implications for Amazon 3rd Party Sellers







Now, what does that imply for Amazon third-party sellers? Well, they are taking money from us. They're not giving it to the shareholders, but they're not reinvesting it in the FBA system either.







They are investing it in their most profitable division. And that makes sense, but you should be aware that those are two bad things for us. 







Bad thing 1: We pay more of our revenue to Amazon







Not only is the percentage of money that we're getting taken off. Gonna be bigger as we go because Amazon's squeezing it. 







Bad thing 2: Amazon will invest less in the E-commerce Marketplace 







But quite clearly it's seeing the, the future is AWS and the marketplace as a cash cow to squeeze, which means the investment in that I think going forward is gonna be less as well.







And that's speculation on my behalf. I don't have any in one on the inside of, of Amazon telling me that, but there's a bit of a major hint and that it's certainl...

Welcome to another episode! Today, we're diving into the complexities of Amazon FBA and US sales tax compliance with Jared Smithson of RJM Tax Exemption. Jared's team specializes in helping American, UK, and other international businesses navigate the ever-changing landscape of US sales tax. With over 5,000 businesses under their belt, they're the perfect guide to ensure your e-commerce brand scales smoothly without unnecessary tax burdens.







[00:00:00] - "Need to File Sales Tax Returns"[00:04:55] - "Necessity of Paying Sales Tax"[00:06:04] - "Penalties for Not Paying Sales Tax"[00:13:10] - "Nexus for Non-Marketplace Platforms"[00:15:16] - "Using Resale Certificates with Wholesalers"[00:16:55] - "Corporate Structures and Sales Tax"[00:18:49] - "Mistakes by Established Sellers"[00:22:12] - "Acquiring a Business with Tax Liabilities"[00:23:33] - "Sales Tax for Non-Marketplace Platforms"[00:27:13] - "Managing Sales Tax for New Platforms"[00:30:08] - "Need to File Sales Tax Returns"[00:31:45] - "Special Offer for Listeners"[00:33:33] - "Closing Thoughts"







What is Sales Tax and Why Does it Matter for Amazon Sellers?







Let's break it down. Sales tax, essentially the US version of VAT, is a tax levied on the sale of specific goods and services. The rate varies significantly by state, county, and even city, with over 11,000 jurisdictions to keep track of! But here's the catch: even if you're based outside the US, you can still be liable for sales tax under a concept called "sales tax nexus." Simply put, nexus signifies a substantial connection with a state, which can be established through physical presence or exceeding economic thresholds. Failing to register for sales tax when required can lead to hefty penalties and back taxes.







The Common Misconception and How to Avoid It







Many sellers mistakenly assume Amazon collecting and remitting sales tax in certain states absolves them of all responsibility. While this may simplify things in some cases, it's crucial to remember that individual state regulations vary. Some states might exempt sellers solely on Amazon, while others consider economic thresholds or physical presence (like using an Amazon fulfillment center) as triggers for registration. Additionally, some states, like Washington and Texas, have unique legislation requiring registration even if you only sell on Amazon.







Taking Action: How to Register for Sales Tax







The good news: registering for sales tax is generally a straightforward process. Most states allow you to register online through their Department of Revenue website and obtain a sales tax certificate. This process typically takes 1-2 hours and requires your Employer Identification Number (EIN) from the IRS. Remember, many sellers overlook obtaining an EIN because Amazon allows them to operate without it. However, an EIN is crucial for tax compliance.







Reseller Certificates and US Business Structures







While this episode focuses on private label and custom product sellers, it's important to note that if you purchase inventory from US wholesalers, you can likely obtain a reseller certificate to avoid paying sales tax upfront. This certificate, based on your shipping address, allows wholesalers to recognize you're not the end consumer.







Here's some good news for international sellers: you don't necessarily need a US LLC or Corporation to sell on Amazon USA. Your existing UK Ltd company can suffice, provided you obtain an EIN.







Beyond the Basics: Considerations for Established Businesses







For established businesses with significant sales volume, incorporating a US entity offers advantages. A US corporation allows you to open a US bank account,

Why Brand Registry Needs Chinese Trademarks







E-commerce brands thrive on Amazon's vast marketplace. But for true growth, brand protection is essential. This is where Amazon Brand Registry excels, offering powerful tools to combat counterfeits. However, these benefits are limited by geographical reach. To unlock Brand Registry's full potential and dominate the Chinese market, registering your trademark in China is crucial.







[00:14] - Introduction and overview[00:58] - Conversation with Anita Ma begins[02:01] - Trademarks in different countries[03:17] - Filing trademarks internationally with WIPO[m05:37] - Enforcing trademarks on Amazon[09:55] - Renewing and maintaining trademarks[13:41] - Trademarking in China[19:00] - Importance of trademarking in China[24:25] - Timing of filing in China[26:24] - Filing trademarks in India







Territorial Rights: Understanding Trademark Protection







Unlike the U.S., China operates on a "first-to-file" system. This means whoever files a trademark first owns the rights, regardless of prior use elsewhere. So, even a competitor or manufacturer in China can steal your brand identity if you delay filing a trademark.







The World Intellectual Property Organization (WIPO) offers a streamlined process to file in multiple countries simultaneously. However, ensure your trademark application perfectly mirrors your original registration. Inconsistencies can lead to rejections and delays. Remember, China's trademark laws differ significantly from the U.S. and Europe. Consider seeking help from a local Chinese attorney to navigate the process smoothly.







Brand Enforcement on Amazon: Taking Action Against Infringers







Having a registered trademark (® symbol) empowers you to report infringing listings on Amazon through Brand Registry. This is often the most effective solution. Additionally, a cease-and-desist letter can usually deter potential infringers. However, if these steps fail, be prepared for legal action in Chinese courts.







Important Note: In the U.S., you cannot enforce trademark rights with a pending application ( symbol). The registration process takes about 18 months, while the U.K. boasts a faster turnaround of 4 months.







Maintaining Your Trademark: Vigilance is Key







Protecting your brand requires constant vigilance. Here are some strategies:









* Utilize the registered trademark symbol (®).







* Set up free Google Alerts to receive notifications whenever your brand name is mentioned online.







* Subscribe to a trademark monitoring service like Trademark Angel for comprehensive brand protection.







* Regularly search the WIPO database to stay updated on trademark applications similar to yours.









Remember, trademarks require renewal every 10 years. In some countries, including the U.S., you need to submit proof of use (e.g., product packaging with your trademark) during renewal. In others, simply paying the fee suffices, but someone could challenge your ownership for non-use.







Abandoned Trademarks: Tread Carefully







If you discover an unused trademark, you cannot simply adopt it. Investigate further. Play detective - check websites, make calls pretending to be a customer, and gather evidence of non-use. Consider legal counsel before proceeding.







Buying and Selling Trademarks: Important Considerations







Yes, registered trademarks can be bought and sold as business assets, assuming they are actively used. However, an abandoned trademark can be canceled if someone proves non-use. Similarly,

Building a successful brand on Amazon requires strategic planning. Trademark registration is a crucial step, but the process can seem daunting. This guide breaks down everything you need to know into easy-to-understand steps.







[00:00] - You really need to know what you're going to sell[00:56] - Introduction of guest Anita Ma and topic of trademarks[01:21] - Explanation of what a registered trademark agent is[02:12] - Anita's background and founding of Trademark Angel[02:50] - Defining what a trademark is[04:13] - Why trademarks exist and legal protection they provide[05:51] - Benefits of having a registered trademark[07:03] - Importance of trademarks for e-commerce and online sellers[08:16] - Distinction between having a trademark and registering one







What is a Trademark and Why Do They Matter for Amazon Sellers?







A trademark is a symbol, word, or phrase that identifies the source of a product or service. It acts like a lighthouse, guiding customers to your brand and distinguishing you from competitors. Trademarks offer several benefits for Amazon sellers:









* Exclusivity: A registered trademark grants you a legal monopoly for your specific product or service category for ten years. This deters competitors from using your brand name or logo.







* Increased Brand Value: A strong trademark strengthens your brand identity, fostering customer trust and loyalty. Over time, your trademark becomes an invaluable asset, increasing your business value.







* Brand Registry Access: Trademark registration is a prerequisite for enrolling in Amazon's Brand Registry program. This program unlocks powerful tools to protect your brand from counterfeiters and hijackers, improve product listings, and gain valuable customer insights.









While common law rights exist for unregistered trademarks, enforcing them is challenging and expensive. Registration provides concrete evidence of ownership and simplifies the process of protecting your brand.







Are You Protected by Your Company Name?







Many entrepreneurs mistakenly believe incorporating a business automatically protects their brand name. However, trademarks arise from using a specific brand name for a particular product or service in the marketplace.







When Should You File a Trademark?







Before filing a trademark application, it's crucial to have a clear business plan and conduct thorough market research. Define your product categories precisely. A vague trademark, like "Kitchen Essentials," won't offer sufficient protection. You can't file an "umbrella trademark" to cover a broad range of unrelated products.







The ideal scenario is to file a trademark application before launching your product. However, you don't necessarily need a product already on the market.







Stay tuned for the next episode, where we'll delve into the order of events for trademark registration, market research techniques, and trademark availability checks!

The Roman Empire was famous for being the greatest empire in the ancient world. It lasted hundreds of years. It controlled the then known world, which was around Southern Europe and the Mediterranean, but it's 410 AD, the barbarians sack Rome. What happened? And how can we learn from this as e commerce operators?







Stay tuned.







Protect your Empire!







Hey folks, Michael Veazey here from Amazing FBA. I want to talk about this under appreciated topic. Everyone's obsessed with growth, and of course they should, and the empire building. But once you've got something valuable and desirable, then of course, you're going to get people attacking it in some form or degrading it.







And one of the things that a more mature entrepreneur will do when they move from pure startup phase, where you just growth, growth, growth, revenue, revenue, revenue is to understand that you've got something valuable, and now you need to protect it.







So that's why we're going to talk about it today.







Success invites Attack







You think about the Roman Empire, this fertile ground in Italy where it was was focused and Rome is halfway down Italy. It had costly desirable infrastructure, a whole city with beautiful buildings and they had a reputation. They were famous. They were the kind of tall guy that everyone wanted to take a pop at.







And although you probably don't feel like you're running the Roman Empire right now, you may have in your category a reputation and an obvious desirability of the market so you need to be protecting it.







 If you're working in e commerce or Amazon specifically, if you're running a business for fewer than 10 years, 60-70% percent of all the cash you ever see from the business will come when you sell it. Guess what? If you don't have the proof that you own the things that you sell, like your trademark, If you cannot show that you have dealt with the risks inherent in the business, and we'll talk about those, the business is either not sellable, or you will sell it for hundreds of thousands of dollars or pounds less than you could have sold it for.







And that is a huge loss. That is real money, not in your pocket, that could have been. So reason to take this stuff seriously.







Let's talk briefly about the threats, which is not much fun, and the ways you can protect yourself, which is much better. In no particular order,







Sales Channel risk







The first one is sales channels risk.







The, the Amazon sales channel is a great powerful thing to have access to, but it can be suspended. So there are two ways that can happen.







Listing Suspension







One is your listing gets suspended because you've got some words in it that you shouldn't have. Maybe these days, weirdly can be even put in place by the Amazon artificial intelligence engine at Amazon. One half of Amazon does that. And then the other half of Amazon that monitors things like what you're allowed to say in your listing will shut your listing down, which is insane, but entirely consistent with how Amazon operates, the right hand doesn't know what the left hand is doing.







Obviously you could put something yourself in there naively, and that can suspend a listing for months at the worst.







Check TOS







So first of all. Checked terms of service and do not assume that one half of Amazon isn't doing stupid things. Check your listings very, very regularly. Particularly there's kind of hero product.







If you've got a small set of products,