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Global Expansion with AWS Marketplace

Best practices for AWS Marketplace Sellers to expand globally

Whether you represent a globally established enterprise or a fast-growing company exploring new territories, establishing localized go-to-market strategies is critical when building your product listings.

Careful alignment with your stakeholders – from Finance and Tax to Legal and Operations – ensures each new market entry is supported by the necessary operational foundation. By taking the time to understand the AWS Marketplace tools, features, programs, and requirements in each market, you can tailor your solutions to better meet the needs of local customers. 

Check out the best practices to global expansion on AWS Marketplace below. 

Account IDs and Listings

Best practice for AWS Marketplace Sellers is to set up different AWS Accounts for each region. Check out how to set up different AWS accounts and listings to transact products globally. 
    • Your business entity, not AWS Marketplace, is the seller of record for your transactions.
    • Only business entities in approved countries can sell in AWS Marketplace. AWS refers to these approved countries as “eligible jurisdictions” in the AWS Marketplace Seller Guide. Always refer to this Guide for the most up-to-date eligible jurisdictions. 
    • If you reside outside of an eligible jurisdiction, check out these companies who can support AWS Marketplace Management and Business Entity Registration. 
    • To register as a seller on AWS Marketplace, you need an AWS account that will be used to publish and manage your products. You can either use an existing AWS Account or create a new one specifically for your AWS Marketplace business. 
    • We typically recommend creating a dedicated AWS account to keep your AWS Marketplace activities separate from your other AWS accounts, which can be helpful when you start receiving disbursements and require reporting access. Note, for this account, you should use a generic inbox (aws-marketplace@yourcompany.com). 
    • The number of seller accounts you create depends on the scope of your business. Some sellers prefer a single global account for simplicity, while others may want to register multiple seller accounts based on the countries and regions they operate in.

    AWS Tip: Consider using an email alias for any new AWS accounts created specifically for your AWS Marketplace activities. This allows you to easily add or remove email addresses from the AWS Marketplace notifications and communications related to your marketplace listings.

    • Each AWS account can have only one registered seller account and address.
    • The AWS account country address in the AWS Marketplace Management Portal (AMMP) must match the country address in the AWS account billing console. For AWS accounts that are member accounts of an AWS Organization, it must match the country address the management account.
    • Be sure that the team who created the account checks for any pre-existing IAM policies that may be enforced on this account. Check out details on IAM policies for AWS Marketplace here
    • Sellers can have only one disbursement bank account tied to their Seller account.
    • All product listings are associated with a specific seller account and cannot be transferred to another Seller account.
    • IT teams can create roles within a single Seller account to enable cross-functional collaboration. For example, think of one Seller account you have today. Within this account, you can have multiple roles and users so different teams can access what they need. Finance teams can use the role/user that allows them to see reports, or Product teams can use a different role/user that allows them to modify products within that seller account.
    • Each Seller account must register a unique legal business name, but can have a different display name on your listing. For example, if your legal business name registered in Mexico is "Company XYZ, Mexico", the public-facing name on your Marketplace listing can be simply "Company XYZ.

    AWS Tip: Decisions around creating seller accounts and submitting banking information should be made in collaboration with your operations, finance, and product teams to ensure alignment.

    • If you decide to use different business entities to sell in different countries or require different disbursement banks for different products, you can create multiple AWS accounts and register them as individual seller accounts. For example, a seller may not want to use their US business entity to sell to buyers in the European Union (EU) and want to use the EU business entity instead.
    • Note: If you do use separate accounts for different business entities, these accounts cannot be combined, and products cannot be moved between them.

    AWS Tip: Consider a phased approach to setting up business entities. Start by defining targets, taxes and pricing considerations in your most successful GEO.

    • Carefully manage access to your AWS Marketplace seller account over time, including passwords, permissions, and email aliases. This will help prevent you from getting locked out of the account if someone leaves your company.
    • Visit this checklist for more information on how to successfully register as a seller in AWS Marketplace.
    • Create a Standard Operating Procedure (SOP) that outlines what roles/personas within your organization require visibility and access to marketplace transactions. For example: Finance and sales teams often need view only permissions instead of admin.
    • If you leverage a third-party tool to list and manage your offerings in AWS Marketplace, be sure to consult with them as well when setting up your seller account and publishing processes.

     

AWS Marketplace Operators

Best practice for AWS Marketplace Sellers to leverage AWS Marketplace Operators (MPOs) to support Sellers' localized business needs, including tax, reporting, disbursements, and compliance.
    • AWS Marketplace has established regional Marketplace Operators (MPOs) to support Sellers' localized business needs, including tax, reporting, disbursements, and compliance. Current MPOs include AWS entities in the US, EMEA, Australia, Japan, and Korea (launching Q4 2024).
    • AWS Marketplace China is an independent MPO operated by Ningxia Western Cloud Data Technology Co., Ltd. For more information on AWS Marketplace China, visit this link.
    • If you are selling into a country without a dedicated MPO, transactions will default to the Amazon Web Services, Inc. as the regional Marketplace Operator, which is based in the United States.
    • Sellers do not need to sign any addendums to sell through available MPOs.MPO details are outlined in section 20.1.6 of the AWS Marketplace Seller Terms, referenced as "AWS Processing Party".

    AWS Tip: Leveraging AWS Marketplace Operators can give you a competitive edge and drive faster adoption of your products and services. Consider the customer segments you are focusing on how you can leverage this in your discussions.  

    • To confirm which MPO was used for specific transactions, refer to the Billed Revenue Dashboard in your AWS Marketplace seller console. To access dashboards, ensure you have the right permissions by clicking here.
    • Local MPOs may be a strong preference or even a requirement for some buyers, particularly in sensitive industry segments such as Public Sector, Financial Services, or Insurance. Catering to these localization needs can make your offerings more attractive and accessible to key customer groups in certain countries.
    • Check out details on the different AWS Marketplace Operators in the "Sales on AWS Marketplace" section of the Tax Help Guide. 

Know Your Customer (KYC)

Best practice for AWS Marketplace Sellers to comply with the Know Your Customer (KYC) legal requirement that verifies the identify of customers and assesses potential risk factors. 
    • KYC is a legal requirement that verifies the identity of customers and assesses potential risk factors. Certain AWS MPOs (e.g., AWS EMEA, AWS Korea) require Sellers to complete KYC before listing, registering, or receiving disbursements.
    • To sell with AWS EMEA, you must go through the KYC process. If you have entities in multiple EMEA countries and want to sell locally, you'll need to complete KYC for each one. Alternatively, using a single EMEA entity can streamline the process to just one KYC verification.
    • To sell with AWS Korea, you must go through the KYC process.  If you already completed the AWS EMEA KYC process and wish to use the same entity for AWS Korea, you will not need to complete the AWS Korea process as we use the same process for both MPOs.
    • To sell with AWS Japan, there is a manual process with a 3rd party provider to validate your companies CEO information and Tax related info, but this is not considered KYC.

    AWS Tip: If your goal is international expansion, it is worth undergoing the KYC process. As AWS Marketplace adds more MPOs, there will be more countries that require KYC. Undergoing the KYC process once will allow you to sell to additional regions in the future. 

    • If KYC is required in a country or region you want to sell in, Sellers can still sell into these markets through the US-based Marketplace Operator, forfeiting localized benefits. It is your responsibility to determine your tax and compliance liability.
    • It is very important to note that Sellers who do not complete KYC for Korea will be unable to receive disbursements for sales to Korean buyers. You will still be able to execute offers, however disbursements will be held by a third-party payment processer, Korea Cyber Payments (KCP), which is mandated by Korean law. Once KYC is completed, AWS Payments will send an update to the payment processor and disbursement will happen.
    • If you choose to not go through KYC to leverage the local Marketplace Operator, another option is to partner with an approved AWS Distributor who can act as the Designated Seller-of-Record, so long as they have executed the KYC process themselves. This will not work for Korea but will work in other GEOs.
    • Since KYC is an identity verification process, personal information from your company’s beneficial owner(s) is required by Amazon Compliance to verify the information. While this information is not shared outside of Amazon Compliance, some Sellers may find this requirement challenging. We recommend aligning with your Legal team before starting the KYC process.
    • This is not an overnight process. If you wish to sell in KYC-mandated locations, you must successfully complete the verification process, which can take 2-3 weeks per step when all information is accurate. We recommend budgeting 2-3 months to complete.
    • Check out the AWS Markertplace KYC workshop to get started. 

Tax

Best practice for AWS Marketplace Sellers to manage sales tax collection and remittance in certain locations where Seller is responsible. 
    • AWS Marketplace manages sales tax collection and remittance in certain locations, but in others, the Seller is responsible. It is your responsibility to review the AWS Marketplace Tax Help resources to understand your specific tax obligations based on your product offerings and target markets.
    • The tax information you provide in your Seller Tax Settings is used by AWS to calculate any applicable taxes. Ensure this data, including your seller entity details, remains accurate and current in the AWS Billing Management Console. It must match the seller entity information you submitted when you registered your seller account. If it does not match or you are changing your seller entity, you must re-complete the tax interview in the AWS Marketplace Management Portal.
    • Review the AWS Marketplace Tax Help page for details on tax management tools, reporting, and more. 
    • While it is Seller responsibility to proactively understand tax obligations when entering a new market, AWS Marketplace offers a tax dashboard to retroactively report tax. This includes situations where AWS was the legally liable party and charged/remitted tax, as well as cases where AWS charged tax on the Seller’s behalf so the Seller can remit to the local authority. We recommend reviewing this tax dashboard to understand tax obligations. 
    • If a Seller needs AWS support, reach out to your Partner Development Manager (PDM) with the minimum information included: 1/ What are you selling? Software or Services? 2/ Which AWS MPO are you selling off of? 3/ Where is the Buyer located? Note: Calls must be attended by tax/legal/finance teams of Partners. A call with only the ISV/CP sales/alliance lead will not be accepted.

Geo-Fencing

Best practice for AWS Marketplace Sellers to manage products globally and restrict access to specific countries where you might lack language support, tax capabilities, or other operational readiness. 
    • By default, AWS Marketplace products are available globally, but Sellers can choose to restrict access to specific countries. This may be necessary if you lack language support, tax capabilities, or other operational readiness in certain regions. Geo-fencing allows you to control which customers can view and purchase your product listings.
    • When a buyer attempts to access your product, AWS checks their tax location against your defined geo-fencing rules. If the buyer's location is outside your allowed countries, they will be prevented from viewing or subscribing to your offer. This ensures you only enable purchasing access for the specific markets you've operationally prepared for.
    • The payer account location of the AWS account used to accept the offer will determine their location. For example, if an AWS account set up in Germany rolls up to a parent AWS account in the United States, it will be a United States buyer location.
    • Geo-fencing can only be activated for Public Offers. Since Private Offers and Channel Private Offers are managed directly by ISVs, it is the responsibility of the seller to confirm the buyer’s location before sharing the offer link. You can do this by asking the Buyer to confirm their AWS account that is used to accept the offer is tied to the specific country.
    • When considering Geo-fencing, consult your tax and sales ops teams to ensure they are able to support software sales in the regions you set up.
    • Review the details on how to set up geo-fencing controls for AWS Marketplace. 

Local Currency

Best practice for AWS Marketplace Sellers to mitigate exchange rate risk and leverage local currencies. 
    • Since 2020, while AWS Marketplace provided the benefit to buyers to pay invoices in preferred local currencies, buyers have faced FX risk when purchasing multi-year contracts due to fluctuations between transacting a private offer and receiving invoices as FX is determined at receipt of invoice.
    • Work closely with your finance team to understand if local currency disbursement aligns with your localization strategy. Some sellers may prefer to receive their AWS Marketplace payouts in US dollars, consistent with their overall disbursement preferences off AWS Marketplace. 

Optimize your Global Expansion

Establishing a successful GTM strategy on AWS Marketplace requires a strong operational foundation. Be sure to align with your Finance, Operations, Tax, and Legal teams before pursuing growth opportunities, and create a communication plan regarding marketplace activity and reporting.

There's no one-size-fits-all approach - carefully evaluate the features and programs that best suit your business as you expand into new markets. By prioritizing these critical elements upfront, you'll be positioned for meaningful growth on AWS Marketplace.