Commercial Law
Legal Considerations When Building An Amazon Business

Legal Considerations When Building An Amazon Business

Amazon is quickly becoming one of the world’s leading online marketplaces, with millions of people throughout the world selling there every day. However, it’s important to realise that starting an Amazon business isn’t as simple as listing a few products and starting to sell.

Instead, there are numerous legal considerations that you need to take into account when you’re building your first Amazon business. Failing to do so could leave you open to a range of penalties in the future.

I’d recommend speaking with your local commercial lawyer to make sure that you’re doing everything you have to. To help you get started I’ve put together a list of the most important things to consider in this article:

Be Wary Of Copyright Infringements

Copyright is something that you absolutely have to be aware of when you’re selling online. Pretty much every aspect of your online store is subject to copyright restrictions, and you will need to pay careful attention to make sure that you’re not breaking any laws.

In particular, be careful what you sell. Make sure that you’re not selling things like artwork reproductions or anything else that could fall under copyright law.

At the same time, make sure that you’re very careful when you’re creating content for your product listings. Make sure that you don’t copy product listings from other places, and make sure that everything you write is unique.

Don’t Sell Counterfeit Products

Unfortunately, the online world is full of fakes and counterfeit products. But, it’s important to make sure that everything that you’re selling is 100% legitimate, otherwise you might find your Amazon selling privileges revoked.

This is especially important in the dropshipping world, where you don’t necessarily lay hands on your products. If you’re considering dropshipping, make sure that you keep in close contact with your supplier to ensure that they’re delivering legitimate goods at all times.

Understand Contractual Agreements

When you’re starting a new online store with Amazon it’s important to realise that you’re actually entering into a binding contract agreement. It’s therefore very important to make sure that you read and understand every aspect of the contract, otherwise you could be faced with nasty surprises in the future.

I’d actually recommend speaking with a commercial lawyer and getting them to walk through the Amazon sellers contract with you. Doing this will make sure that you’re clear on at least the main points of your contract, reducing the risk of mistakes or of you doing anything to break the contract.

Pay Your Taxes

A lot of people fall into the trap of believing that they don’t have to pay taxes because they’re running an online business. Unfortunately, this isn’t true. Make sure that you’re aware of your tax obligations and the countries where you have to pay tax, otherwise you could be facing significant financial penalties in the future.

Final Word

All things considered, selling on Amazon represents a great business opportunity. Ultimately, however, it’s important to make sure that you’re aware of your legal obligations before you get started. Otherwise you could find your whole business crashing down around you.