{"slug":"amazon-seller","name":"Amazon (Selling on Amazon)","category":"selling","workerTerm":"sellers (selling partners)","classification":"Amazon's Business Solutions Agreement says the seller and Amazon are independent contractors, with no employment, partnership or agency relationship. Sellers run their own businesses on an Individual or Professional selling plan and report profit on Schedule C.","taxForms":"Amazon issues Form 1099-K to U.S. sellers with more than $20,000 in unadjusted gross sales and more than 200 transactions in the year (the federal threshold reinstated for 2025 and in effect for 2026); some states have lower reporting thresholds.","platformFees":"Either the Individual plan at $0.99 per item sold or the Professional plan at $39.99 per month, plus a referral fee on each sale that varies by category, from 5% up to 45% for Amazon Device Accessories (for example, 8% for electronics and 15% for home and kitchen), charged as a percentage or a per-item minimum such as $0.30, whichever is greater. Books, music and DVDs also carry a $1.80 closing fee. Fulfillment by Amazon (FBA) and advertising cost extra.","payouts":"Amazon remits your available balance (sales proceeds minus referral, closing, subscription and other fees and any reserve it holds) to your bank account every 14 days, or more often at its option. For Individual-plan sellers registered after October 30, 2011, each remittance holds back sales proceeds from the prior 14 days.","deductions":["Referral fees and the Individual per-item or Professional monthly plan fee","Fulfillment by Amazon fulfillment and storage fees","Amazon Ads (sponsored product) spend","Cost of goods sold for the inventory you sell","Packaging, labels and shipping supplies for orders you fulfill yourself","Software and subscriptions used to run your store, such as repricing and listing tools"],"watchOuts":["The 1099-K reports unadjusted gross sales, which aren't reduced for Amazon fees or refunds, so it will be higher than your deposits.","Inventory is deducted as cost of goods sold when it sells (Schedule C Part III), so stock still on hand at year-end isn't an expense yet.","Amazon calculates, collects or remits taxes on your behalf where the law requires; you remain responsible for any other taxes on your sales.","Your bank deposits won't match your sales because Amazon nets out fees and may hold a reserve, so build your books from Seller Central reports."],"competitors":["walmart-marketplace","ebay","etsy","tiktok-shop","shopify"],"sources":["https://sellercentral.amazon.com/help/hub/reference/external/G1791","https://sell.amazon.com/pricing","https://sellercentral.amazon.com/seller-forums/discussions/t/71784773-6d53-4039-b9a5-9bf83c8b8518","https://www.irs.gov/instructions/i1040sc","https://www.irs.gov/instructions/i1099k","https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000"],"asOf":"2026-10-07","url":"https://gigaverse.ai/platforms/amazon-seller","affiliated":false}