Amazon Comparison
Amazon Seller vs. Broker – Sell Yourself or Use a Broker?
Overview
When you want to sell on Amazon as a brand or manufacturer, you face a fundamental decision: Do you open your own Seller account and handle everything yourself – from compliance and VAT to customer service? Or do you partner with an Amazon Broker who acts as Merchant of Record (MoR) and sells your products through their established Seller account? The Broker model is a B2B2C setup: You sell B2B to the broker, who sells B2C to Amazon end customers. You retain control over pricing and brand strategy while the broker handles all operational complexity – marketplace compliance, FBA logistics, customer service, and advertising. SPACEGOATS as a broker provides instant access to 12+ Amazon marketplaces across EU, UK, US, and Canada. Both models have clear advantages and disadvantages. This comparison helps you make the right decision for your business.
Own Seller Account
You open your own Amazon Seller Central account and sell directly to end customers. You are responsible for all aspects of selling – from product listings to compliance, VAT, customer service, and returns. You have full control but also carry all operational and regulatory risk. This model typically requires 3-5 full-time employees for listings, logistics, customer service, advertising, compliance, and international expansion.
Pros
- +Full control over pricing, listings, and ad campaigns – you decide every detail of your Amazon presence
- +Direct brand building under your own name – your brand appears as the official seller, building long-term trust
- +Access to sales and advertising data through Seller Central and Brand Analytics – order data, search terms, and conversion data for data-driven decisions
- +Full margin – you only pay Amazon fees (referral fee 7-15% + FBA costs) without additional broker commission
- +Independence from third parties – you are not dependent on a broker's performance or availability
- +Long-term asset building – an established Seller account with sales history has standalone business value
Cons
- -High compliance complexity – CE marking, GPSR, EPR (VerpackG, WEEE, batteries), Importer of Record obligations, and EC Rep requirements must be fulfilled individually per country
- -VAT registration required in each country – including ongoing tax filings and local tax obligations. OSS only applies to cross-border shipments, not for FBA storage countries
- -Customer service in the local language of each marketplace required – Amazon expects language-competent support for every active marketplace
- -Significant upfront investment – for a single marketplace approx. 3,000-8,000 EUR (account, tools, initial advertising). For multi-country rollout with VAT registrations, legal counsel, and compliance quickly 10,000-25,000 EUR+
- -Risk of account suspension – violations of Amazon policies or poor KPIs can lead to immediate suspension, jeopardizing all revenue
- -High resource requirements – typically 3-5 full-time employees. From account opening to first sale in multiple countries, 3-6 months often pass
Amazon Broker (e.g. SPACEGOATS)
An Amazon Broker like SPACEGOATS acts as Merchant of Record (MoR) and sells your products through their own established Seller account on Amazon. The model works as B2B2C: You sell B2B to the broker, who sells B2C to end customers. The broker handles complete marketplace responsibility – VAT, EPR, invoicing, customer service, fulfillment coordination, and advertising. You supply the goods and determine pricing and brand strategy. SPACEGOATS offers two cooperation models: Auto-Pilot (Hands-Off, for brands without an e-commerce team) and Captain Seat (Brand-in-Control, for brands with their own marketing team). Through the Galaxy platform, you maintain full transparency on sales, inventory, and finances.
Pros
- +Instant access to 12+ Amazon marketplaces across EU, UK, US, and Canada – SPACEGOATS is active and established in all relevant markets
- +No own Seller account needed – you save yourself the account opening, verification, and risk of account suspension. The broker carries the account risk
- +Marketplace compliance handled by the broker as MoR – VAT, EPR (VerpackG, WEEE), invoicing, and marketplace obligations. Product safety (CE, GPSR) remains the manufacturer's responsibility, but the broker supports with compliance checks
- +No own VAT registration required – the broker sells on their account and handles all tax obligations as MoR
- +Fast market entry in approx. 30 days – instead of months of preparation, you are live on Amazon within weeks
- +Minimal resource requirements – typically only 0.5-1.5 full-time employees for strategy and coordination. Full transparency through the Galaxy platform (sales, inventory, finances)
Cons
- -Lower margin due to broker commission – the broker receives a percentage of revenue for their services. At very high volumes, individual terms can be negotiated
- -Less direct control – decisions on listing changes or ad campaigns go through the broker. Depending on the cooperation model (Auto-Pilot vs. Captain Seat), the degree of influence varies
- -Dependency on broker performance – the quality of customer service and account management depends on the broker. It is important to choose an established partner with a proven track record
- -Seller name is the broker's – on Amazon, the broker appears as the seller, not your company name. Your brand remains visible on the product page, but you don't appear as the selling party
- -Limited direct access to Amazon dashboards – performance data is available through the broker's Galaxy platform, but no direct access to Seller Central or Brand Analytics
Comparison Table
| Criterion | Own Seller Account | Amazon Broker (e.g. SPACEGOATS) |
|---|---|---|
| Time to Market | Single marketplace: 4-8 weeks. Multi-country (5+ countries): 3-6 months (account, verification, VAT registrations, compliance) | Approx. 30 days (onboarding, listing creation, shipping goods to FBA) – instantly available on 12+ marketplaces |
| Internal Resource Requirements (FTEs) | High – typically 3-5 full-time employees for listings, logistics, customer service, advertising, compliance, and expansion | Minimal – typically 0.5-1.5 full-time employees for strategy, content creation, and coordination with the broker |
| Compliance Burden | High – VAT registration per FBA storage country, EPR obligations (VerpackG, WEEE, batteries), product safety (CE, GPSR), Importer of Record, and EC Rep to manage yourself | Marketplace compliance (VAT, EPR, invoicing) handled by the broker as MoR. Product safety (CE, GPSR) remains the manufacturer's obligation, but the broker supports with checks |
| Number of Marketplaces | Gradual expansion – each country requires separate VAT registration, EPR enrollment, and compliance setup | Instantly 12+ marketplaces across EU, UK, US, and Canada available through the broker's existing network |
| Upfront Investment | Single market: 3,000-8,000 EUR. Multi-country: 10,000-25,000+ EUR (legal counsel, tax advisors, tools, compliance registrations, ad budget) | Low – mainly product costs and onboarding. No VAT registration, no compliance setup, no tool licenses needed |
| Margin Structure | Full margin minus Amazon fees (referral fee 7-15% depending on category + FBA costs for storage and shipping) | Margin minus Amazon fees and broker commission. Commission-based rather than fixed retainers – broker only earns when you sell |
| Risk | High – account suspension, compliance violations, and tax errors can be existentially threatening. Payout limits and rolling reserves for new accounts | Low – broker carries the account risk and marketplace compliance responsibility as MoR. Established processes and SAS Enterprise access for faster escalations |
| Scalability | Scales well, but each new country significantly increases administrative overhead (VAT, EPR, customer service, compliance) | Scales very well – new products and countries without additional administrative overhead. Expansion through the broker's existing network |
| Brand Ownership | Full brand control – your company name as seller, own Brand Registry, full access to Seller Central | Brand is visible on the product page, but seller name is the broker's. Brand Registry possible through broker. Transparency through Galaxy platform |
| VAT Handling | Own registration and ongoing filings required in each FBA storage country. OSS only for cross-border shipments, not for FBA | No own VAT registration needed – broker as MoR handles everything through their account. You receive simplified B2B settlements |
Our Recommendation
Both models have their merit – the right choice depends on your starting position. An own Seller account is ideal if you already have Amazon experience, have the internal resources (3-5 FTEs) for compliance, tax law, and account management, and want to build a standalone marketplace presence long-term. For brands that want to enter the Amazon market quickly and with low risk, a broker like SPACEGOATS is the significantly more efficient solution. You benefit from instant access to 12+ marketplaces across EU, UK, US, and Canada, don't have to worry about marketplace compliance or VAT, and are live in approximately 30 days – with only 0.5-1.5 FTEs internally. The broker acts as Merchant of Record (MoR) and assumes all operational and regulatory burden on the marketplace. Especially for brands outside the EU that want to sell without their own European legal entity, the broker model is often the only practical path – no VAT registration, no EPR setup, no Importer of Record needed. SPACEGOATS offers two cooperation models: Auto-Pilot (for brands without an e-commerce team) and Captain Seat (for brands that want to maintain control). Through the Galaxy platform, you maintain full transparency on sales, inventory, and finances. Many brands start with a broker, validate their market potential, and later switch to their own Seller account if needed – an approach that SPACEGOATS actively supports.
Frequently Asked Questions
What exactly is an Amazon Broker and what does Merchant of Record mean?
An Amazon Broker is a company that acts as Merchant of Record (MoR) and sells other brands' products through its own Amazon Seller account to end customers. As MoR, the broker is the legal seller to end customers and responsible for invoicing, VAT/EPR obligations, marketplace compliance, customer rights (returns, refunds), and disputes. The brand sells B2B to the broker and remains the owner of the brand and products but does not appear as the seller on Amazon. SPACEGOATS is such a broker with a focus on international Amazon markets.
What cooperation models does a broker like SPACEGOATS offer?
SPACEGOATS offers two cooperation models: (1) Auto-Pilot (Hands-Off): The broker handles operations, advertising, listings, logistics, and compliance. The brand provides product data and approves key decisions. Ideal for B2B companies or brands without an internal e-commerce team. (2) Captain Seat (Brand-in-Control): The brand defines pricing, campaigns, content, and launch strategy. SPACEGOATS handles all operational execution in the background. Ideal for companies with their own marketing team that want control without infrastructure. In both models, the Galaxy platform provides full transparency on performance, inventory, and finances.
How does the margin structure work with the broker model?
With the broker model, the broker sells your product on Amazon and receives a commission – typically a percentage of net revenue. From the selling price, Amazon fees (referral fee 7-15%, FBA fees) are deducted first, then the broker commission. The remaining amount is paid out to you. Compensation is commission-based – no fixed retainers or minimum purchase quantities. The broker only earns when you sell. Although the margin per unit is lower than with your own account, you save the significant fixed costs for VAT registrations, EPR, compliance, tax advisory, tools, customer service, and personnel (3-5 FTEs) – so the total profit is often comparable or even higher.
Can I switch from a broker to my own Seller account later?
Yes, switching is generally possible and is actively supported by SPACEGOATS. Many brands use the broker model as an entry point to test the market and collect sales data. Existing ASINs, reviews, and organic rankings are preserved – they are tied to the product, not the seller. The transition should be carefully planned to minimize temporary Buy Box losses. SPACEGOATS offers this transition process as part of its service offering.
Do I need my own European legal entity to work with a broker?
No, this is one of the biggest advantages of the broker model. Since the broker as Merchant of Record sells through their own European Seller account, you don't need your own EU legal entity, no European VAT registration, no Importer of Record, and no local business address. This makes the broker model particularly attractive for brands from the USA, UK, China, or other non-EU countries that want to sell on Amazon EU without establishing their own European presence.
What happens to my products if the broker goes out of business?
This is a legitimate risk when choosing a broker. With an established broker like SPACEGOATS, years of market presence and a solid corporate structure significantly minimize this risk. Contractually, it should be agreed that in case of business closure, you receive your FBA inventory back and can transition to your own account or another broker. SPACEGOATS offers corresponding contractual safeguards and fair notice periods.