The situation
The client was an Amazon merchant operating out of Vietnam and sourcing from manufacturing companies in Asia, mostly selling his merchandise to clients in the United States.
As his business expanded, handling payments from Amazon and conducting business with his suppliers using the current system was becoming harder. He needed a better organizational structure that could distinguish between marketplace sales and sourcing operations.
What we set up
Having considered the client's business model, OCC suggested a dual-entity model consisting of a US LLC to be used in Amazon marketplace and a Hong Kong company for the activities of sourcing from Asia.
The US LLC would be responsible for selling via Amazon and receiving marketplace payments, whereas the Hong Kong company would be the separate entity dealing with regional suppliers.
OCC assisted the client in all procedures related to the incorporation of entities such as business account facilitation and corporate documentation.
This structure was completed within 18 days.
The result
Once the structure was established, the client would be able to get his payments from Amazon via the US LLC, while all his sourcing in Asia can be controlled via his Hong Kong company.
The structure helped to clarify the operation of the business and made the client's process for handling marketplace payment, supplier transactions and documentation simpler.
Within three months since implementing the structure, the client has:
- moved 100% of his Amazon payments into the new structure with US LLC;
- handled over US$85,000 worth of supplier transactions in Hong Kong structure;
- cut costs on transaction and administrative fees by about 18%; and
- built a structure that is able to handle further expansion in other marketplaces and suppliers.
Year-1 cost of setup and services: US$9,298
“We needed a structure that will handle both our Amazon payments and sourcing in Asia. The OCC structure made it very simple for us.”
Online Retail Business, Vietnam
