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Last Updated on October 23, 2022 by Chris Panteli
We’ve all heard of and probably used Amazon to purchase all manners of items. It is, without doubt, one of, if not the largest e-commerce marketplace in the entire world.
As of 2021, there were nearly 10 million sellers on the site, with the number growing every year.
In fact, there are over 300 million active users on Amazon, so there is little wonder how Jeff Bezos’ business grossed $201.308 billion dollars in the year leading up to March 31, 2022.
With so many businesses using Amazon, a system has been implemented to ensure each vendor is legal.
And, because of the sheer number, Amazon needs to know a vendor’s EIN before they can sell on the site.
EIN stands for Employee Identification Number, and each vendor requires this information in order to utilize Amazon’s platform.
The EIN is a 9-digit number that is created for businesses to act as a form of ID, so they can deal with financial matters through Amazon. The EIN is most typically in place to provide someone with a tax identity.
Today, we will be discussing Amazon’s EIN in detail, so you can have a better understanding of why it is needed and if you will require this to become a vendor on the site.
What Is An EIN Number?
In the US, all employees require a Social Security Number in order to file their tax returns.
Well, think of an Employee Identification Number as an SSN for Amazon vendors to sell online. The EIN is in place for individuals to file taxes for their business.
The EIN is a federal tax identification number, and it is a requirement, by law, for the majority of Amazon sellers to have in order to manage their Amazon accounts.
The unique 9-digit number allows the Internal Revenue Service (IRS) to find businesses, so they can report taxes.
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Your Amazon EIN: What Is It?
Also referred to as a Federal Tax Identification Number, an EIN is just one section of the US Government’s identification system that is in place.
As stated, it is critical for the Government to identify a business entity.
The IRS is renowned for maintaining a tight ship and being on top of all kinds of matters in the US. One responsibility is to pass out an EIN tax ID to businesses.
These numbers are unique for each and every company and are handed out just once to everyone. But, once a business acquires an EIN, it will not expire nor can it be reused for other businesses.
The IRS provides EINs for many types of enterprises for free. However, there are a few conditions and criteria that individuals and businesses need to meet.
Firstly, the business needs to be located within the US. Secondly, whoever is applying for the EIN needs to have a personal tax identification number, such as a Social Security Number.
Why Does Amazon Require an EIN?
The reason Amazon requires your Employer Identification Number as a vendor is to prevent unlawful activity and malpractice from occurring.
It is essentially a preventative measure, so Amazon sellers can not run more than one Amazon account.
So, even if you have a few Amazon accounts with different emails, in order to be a vendor, you can only acquire one EIN.
Amazon, itself, is a business that also needs to report financial matters to the IRS each year.
Vendors on Amazon make up a huge percentage of Amazon’s profits, so the company needs to have the correct data from each business.
It may sound complicated, but the process is pretty straightforward. Amazon does all it can to help with its vendor’s needs when applicable.
The process of applying for an EIN is made easier by Amazon, as they guide you through each step when becoming a vendor on the site.
Just remember that every vendor will require an IRS-approved EIN before selling anything on the site.
Let’s take a look at how you can apply for an EIN below.
Applying For An EIN Number – Guide
Every registered vendor on Amazon is given a unique EIN. Once you receive this tax number, you can manage it easily through your Amazon account. Without this identification number, however, you will not be able to sell on Amazon.
So, here is a guide to acquiring your EIN.
- Firstly, you need to make sure that your business is based in the US, you have some form of identification, such as your Social Security Number, and a valid mailing address. Once you have all this, you can start to apply.
- The easiest step is to apply for your EIN via the IRS website.
- Once you click on the site, you will be redirected to a new page, where you will be prompted to read the instructions before choosing to accept the conditions or not. (you must accept these conditions to receive your EIN).
- You may be asked some further questions on the website, so answer truthfully.
- Once you have answered all the questions, you will immediately receive your EIN as well as any other necessary documents.
In some cases, there may be some disparities in your application. If so, you might be required to take part in a tax interview with the IRS.
An Employee Identification Number is required in order to become a vendor on Amazon. While the process is easy to apply for one, you need to meet some criteria:
- Your business is based inside the US
- You have a mailing address
- You have identification such as your Social Security Number (SSN)
If you are based outside the US but intend to sell on Amazon.com (i.e., based in the UK but want to sell in the US), then Amazon will ask you to provide some form of tax identity.
Instead of a Social Security Number, you will be asked for some other form of ID to obtain your EIN to become a vendor on Amazon in the US.