Amazon are changing the company who are providing the payment component of their services to sellers. Up until now it’s been provided by Amazon Services Europe S.à r.l., but moving forwards Amazon Payments Europe S.C.A. will be the new entity you deal with.
In addition to your current Amazon seller account you now need to open a Selling on Amazon payment account with Amazon Payments Europe.
This is causing a number of issues for sellers. Amazon say that EU regulations require Amazon Payments Europe to collect certain business and personal information from you and take steps to confirm your identity. For businesses selling on Amazon as Limited companies it involves a ton of paperwork, which while tedious to gather isn’t particularly tricky to compile.
Where this is throwing up some issues is for sole traders and limited partnerships as Amazon don’t appear to readily recognise that in the UK, unlike many other parts of the EU, it’s easier to start a business and apart from registering with HMRC for income tax you may not have a whole load of paperwork identifying you as an entity. This means Amazon will want to know pretty much everything about you as an individual.
UK sole traders will need to request a Confirmation of Unique Taxpayer Reference letter from HMRC if they don’t already have one, other information Amazon may request is bank account number, passport details, VAT registration, utility bills etc. In some cases Amazon Payments Europe may need more information to verify your identity and request additional identity information.
Amazon Disbursement Frequency
We’ve also heard from sellers who are seeing more frequent disbursements from Amazon, weekly instead of fortnightly. We don’t know if this will be ongoing, but anything that gets funds into your bank account faster sounds like good news!