Amazon, one of the world's largest marketplaces, provides huge opportunities for sellers, including Russian entrepreneurs. However, starting in 2022, political and economic sanctions have made it more difficult for businesses from Russia to work with Amazon.
In this article, we will look at how to successfully withdraw money from Amazon despite all the obstacles.
Challenges of working with Amazon for businesses from Russia
The sanctions imposed against Russia in 2022 have made life much more difficult for Russian entrepreneurs working with international platforms, including Amazon. The main problems include the absence of Russia in the list of countries when registering new users, making it impossible to provide truthful information about oneself. In addition, Russian banks are no longer supported for withdrawing funds from Amazon, which creates significant difficulties for entrepreneurs. Technical restrictions due to political sanctions also limit the ability to use international payment systems, many of which have suspended their operations in Russia.
These problems are forcing Russian entrepreneurs to find alternative ways to work with Amazon and withdraw money in order to maintain access to the global market and continue successful sales.
Problem solving: registering a business in the USA
In order to continue working with Amazon and bypass sanctions restrictions, Russian entrepreneurs need to register a company in the USA. This step opens up many opportunities and makes it possible to conduct business officially on Amazon, legally creating a seller's account that meets all the platform's requirements. Registering a company in the US also increases buyer confidence, which can lead to increased sales. It also opens up access to international payment systems that do not work with Russian companies.
Advantages of opening a company in the USA for Russian entrepreneurs
- Reputation Enhancement: A company incorporated in the U.S. inspires more trust among both U.S. and international customers.
- Expanding your customer base: Doing business in the US opens up access to a huge market as well as other international markets through platforms such as Amazon.
- Tax incentives: Some states offer incentives for foreign entrepreneurs (e.g., Wyoming, Delaware, Florida).
- Utilization of advanced technology: the U.S. is a world leader in innovation and technology.
Need to open an online bank account
To successfully withdraw funds from Amazon, you must have a bank account registered overseas. Traditional banks require personal presence, which is difficult. The solution is online banks or neobanks, which allow remote account opening and management via web or mobile app. This simplifies interaction and provides 24/7 access to financial transactions.
Description and benefits of the three best neobanks
Payoneer
- Support for more than 150 currencies
- Favorable exchange rate
- No commissions within the system
- Fast transaction processing
- No registration and maintenance fees
As of 2022, Payoneer has suspended service in Russia. Use is possible if you have legal residence abroad or a foreign business.
Wise
- Выгодный курс обмена валют
- Fixed and variable tariffs
- Free account opening
- Multi-level security
- Transfers by email
- Russian language interface
It is important to consider the banks' schedule to avoid delays with weekend transfers.
Revolut
- Multiple currencies
- Additional assets: metals, cryptocurrencies
- Favorable exchange rate
- Cost management tools
- Issuance of foreign cards
- Different tariffs for business and personal use
Step-by-step instructions for opening an account and linking to Amazon
- Sign up for Amazon: Enter your legal entity, country, business type, and contacts.
- Choosing a neobank: Determine the appropriate service.
- Registration in neobank: Provide documents (ID, address).
- Verification: Complete the verification, possibly via video call.
- Linking your account to Amazon: Enter your bank details in your personal cabinet.
- Confirmation: Accept test transactions from Amazon and confirm the account.
Peculiarities of work with international payment systems
- Commission: Variable depending on the service, amount, frequency of transfers.
- Exchange rates: Choose services with minimal difference from the market rate.
- Transfer deadlines: Plan transfers for weekdays to avoid delays.
Conclusion
Working with Amazon provides great business opportunities, despite the difficulties. Registering a company in the USA and using online banking allows you to bypass restrictions and successfully develop your business internationally.
For assistance in company registration and account opening you can contact TaxFreeCorp. We help entrepreneurs set up and run their business abroad without bureaucratic complications.