As low as 15%! Is Biden going to impose taxes on Amazon sellers?

Recently, US President Biden proposed a proposal to impose a minimum tax rate of 15% on companies with profits of $100 million that pay little or no income taxes .

The plan also includes a proposal to increase the overall statutory tax rate from 21% to 28% , which some say may be more challenging than Biden's other tax plans.

Amazon famously used tax deductions and credits to avoid paying taxes in 2017 and 2018 , then added $ 162 million in 2019 for an effective tax rate of 12% .

Biden seems to be targeting Amazon, so it is also called the "Amazon tax."

If it is really implemented in the future, Amazon will have to pay more taxes to the government. Based on my brother-in-law's usual style, the extra 3% tax will most likely be passed on to the sellers on the platform . Therefore, the sales commission ratio is likely to be increased in the future, so the sellers will be the ones who suffer in the end.

Once the proposal is finalized and passed, Amazon sellers will have to pay taxes for it, so sellers should be prepared.

The United States has not started yet, but Spain has already taken action.

According to foreign media reports, the Spanish government has approved a 3% digital tax on multinational technology giants . Subsequently, it was reported that Amazon will offset this expenditure by adjusting the sales commissions and various fees of sellers on Amazon Spain.

Foreign media revealed that Amazon plans to increase the sales commission and various fees of the Amazon Spanish site by 3% , and this adjustment will take effect on April 1, 2021 .

The move will affect more than 9,000 Spanish sellers and has sparked widespread dissatisfaction, as Amazon's sudden taxation means sellers will have to either raise prices on their products on the Amazon platform or include it in their costs .

However, what is even more perverse is that Amazon is reported to have made the same decision for sellers in France and Italy .

Recently, a seller on Amazon Germany said that Amazon's search mechanism was out of control. Keyword searches were confusing, listing rankings were abnormal, and even search results that were unrelated to keywords were often displayed.

Amazon seller Daniel mainly sells black seed oil. Previously, the listings that could be found on the first page or the first few pages of search results using keywords have now disappeared inexplicably. The scariest thing is that the listing of the seller who was previously at the back of the list is now ranked first in the search results.

In addition, the seller also found that products unrelated to the search terms appeared on the page. He mentioned: "Searching for black seed oil on Amazon, the page showed some products such as sesame oil and MCT oil that were unrelated to the search terms. Amazon's natural ranking was chaotic, which has caused the sales of this product to plummet."

Indeed, when the editor went to the German site to search for "rat poison ( Rattengift )" , the products that appeared were massage machines ( Massagegerät ), salt ( Speisesalz ) and toothpaste ( zwei Zahncremes ) .

For example, if you search for "urinal filter", you may find "yoga mat" in the search results .

It is not clear how the problem occurred, whether there was a problem with Amazon's system or whether Amazon has been adjusting its search pages or search rules from time to time recently.

Sales commissions have increased, and Amazon's system is constantly plagued by bugs. 2021 does not seem to be easy, so sellers must be mentally prepared.