Best way to handle sales from 2 companies?

Discussion in 'General Business Forum' started by lumencreative, Oct 10, 2019.

  1. lumencreative

    lumencreative UKBF Regular Free Member

    184 12
    My wife and I have two limited companies and could do with some advice.

    Our primary company (Company A) makes and sells products on amazon, as well as having business to business sales outside of amazon.

    Our second company (Company B) makes and sells similar products but only in a specific niche.

    Both companies are vat registered as we were advised they were too closely linked to not register Company B.

    We would like to sell products from Company B on Amazon but Amazon have a rule that states you are only allowed one seller account per household. We have sought permission for a second account but are still waiting months later, so our only option would be to sell Company B’s products via Company A.

    The only way I can think of doing it is for Company B to sell the products to Company A, so Company A can sell them on Amazon, but I was wondering if there’s any other way (for example, can Company A just pay Company B the full sale value whenever an item sells?)

    I’m also wondering whether it would be easier to merge the two companies together and just run it as Company A, and have Company B as a brand instead of a separate company. Any thoughts on this would also be appreciated.
     
    Posted: Oct 10, 2019 By: lumencreative Member since: Sep 17, 2014
    #1
  2. lumencreative

    lumencreative UKBF Regular Free Member

    184 12
    Does anyone have any thoughts on this please :)
     
    Posted: Oct 12, 2019 By: lumencreative Member since: Sep 17, 2014
    #2
  3. GraemeL

    GraemeL Pain in the neck? Full Member - Verified Business

    5,080 1,091
    Hello
    Amazon don't actually limit a household to one sellers account, they limit a seller to one account:-

    Multiple seller accounts:
    Operating and maintaining multiple Seller Central accounts is prohibited. If you have a legitimate business need for a second account, you can apply for an exception to this policy: (etc)

    If you have two Ltd companies, then I would interpret that as being two sellers. (Have you tried and failed?) Obvioulsy they two companies need to be distinct, not just with separate bank accounts but also with different email addresses, phone numbers and so on.

    I believe the intention of their rule is to avoid non limted companies or soole traders to have multiple set ups.

    You difficulty might turn out to be how the products are listed, if company 2 "makes and sells similar products" as company 1 themn Amazon may combine the listings. Then you have a problem!

    Best wishes
     
    Posted: Oct 12, 2019 By: GraemeL Member since: Sep 7, 2011
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    16,751 1,869
    Get permission from seller performance for a 2nd account in the other company name.
    Usually if you give them reason they will do it - there's even companies out there with 2 amazon accounts for one company.

    Only after permission got then open up the new account.

    Alternately get one company to sell the other the particular items sold on amazon.
     
    Posted: Oct 12, 2019 By: Mr D Member since: Feb 12, 2017
    #4
  5. lumencreative

    lumencreative UKBF Regular Free Member

    184 12
    Thanks guys. We requested permission for a second account back when we launched the second company but keep getting monthly automated replies saying they are ‘investigating our issue’. I’ve submitted a second request today and now waiting for a reply.

    We want to grow the sales (and product range) of the second company and want to list on Amazon.com as well as Amazon UK but it just seems like a lot of hassle if we have to sell Company A the products every time a sale is made on Amazon.

    We have got 6 ‘Company B’ products on Amazon UK so far and opted to sell the stock to Company A at wholesale price so Company A can send the stock to FBA, but it obviously affects the profit margins that Company B makes as we never intended for it to sell at wholesale pricing.
     
    Posted: Oct 12, 2019 By: lumencreative Member since: Sep 17, 2014
    #5