5 Things You Need To Know Before You Sell Products On Amazon Australia (2025 Updated)

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Are you thinking of selling products on Amazon Australia but not sure where to begin in 2025?

Before jumping in and starting your own Amazon business in Australia, there are some important considerations you need to address first.

In this post, we will go through 5 key things you need to know before launching your Amazon business in Australia – updated for 2025.

What Are Amazon’s Key Policies?

Before you start selling on Amazon, you must familiarise yourself with Amazon’s key policies and agreements. These include the Amazon Services Business Solutions Agreement (Business Solutions Agreement), the Amazon Seller Code of Conduct, and Amazon’s Product and Listing requirements. It is worth also reviewing our Intellectual Property Guide for clarity on protecting your brand online.

Amazon Services Business Solutions Agreement

In a nutshell, the Business Solutions Agreement is a contract between you (the seller) and Amazon that outlines the terms and conditions governing your use of the Amazon marketplace. Staying current with its provisions is crucial.

Key provisions in the Business Solutions Agreement that every Amazon seller should note include:

Term and Termination: Amazon may terminate the agreement immediately if it detects breaches, such as engaging in deceptive, fraudulent, or illegal activity using your seller central account.
Indemnification: The seller’s indemnity clause is very broad. This means that if a claim is made against Amazon – for example, if a customer is injured by a defective product – you may be required to compensate Amazon under certain circumstances. For more insight, check out our post on indemnity clauses.
Limitation of Liability: Amazon limits its liability under the agreement to six months’ worth of fees paid by you. In contrast, your liability under the Business Solutions Agreement remains unlimited, meaning that in a worst-case scenario you could be liable for substantial sums. It’s important to understand these provisions before signing on.
Insurance: If your business regularly makes $15,000 or more per month, Amazon requires you to have comprehensive insurance in place at your own cost. This insurance should cover product liability, personal injury, and property damage.

Remember that Amazon periodically updates the terms of the Business Solutions Agreement. Staying up to date with these changes will help you avoid any breaches that might lead to suspension or even a ban of your Amazon seller account.

Amazon Seller Policies

In addition to formal agreements, Amazon enforces several seller policies. These policies cover fee payments, communication guidelines, customer reviews, supply chain standards, protection of intellectual property, shipping protocols, tax obligations, and more. For sellers operating under the “Fulfilment by Amazon” (or FBA) program, additional policies also apply. To ensure compliance, consider reviewing our handy resource on online legal essentials for eCommerce.

Which Business Structure Should I Choose For Selling On Amazon?

Your choice of business structure for your Amazon operation will depend on several factors, including:

the size and nature of your business;
your personal circumstances; and
your long-term goals for growth and expansion.

There are four main types of business structures available for Amazon sellers:

Each structure offers its own benefits and obligations. For a more detailed discussion of your options, see our article on whether business structure matters.

Let’s walk through what these structures involve and how to choose the most appropriate one for your Amazon venture.

Sole trader

As a sole trader, you are personally responsible for all aspects of the business – from day-to-day operations to funding and any liabilities incurred. This means you operate under unlimited liability.

This option suits a one-person operation where simplicity and low start-up costs are priorities. With fewer administrative burdens and quicker setup compared to a company or trust, sole trader status remains a popular choice for many starting out on Amazon.

Partnership

A partnership is similar to operating as a sole trader, except that responsibilities are shared between two or more partners. If you’re starting a business with family members, friends, or business associates, this might be a practical choice.

When forming a partnership, it is vital to document the rights and obligations of each party in a Partnership Agreement. For added guidance, refer to our insights on defining business roles clearly.

Company

A company is a separate legal entity from its owners (the shareholders), meaning that personal assets are generally protected from the business’s liabilities. While forming a company can be more costly and involve greater ongoing compliance – including corporate governance and reporting obligations – it provides a higher level of personal liability protection and is typically better suited for businesses expecting significant growth.

If you anticipate entering high-risk transactions or significant expansion, a company structure might be the most appropriate option. Our Company Set-Up guidelines offer further insights into the process and requirements.

Trust

A trust involves an arrangement where a trustee (either an individual or a company) holds the business’s assets for the benefit of the beneficiaries. Similar to a company, using a trust can provide protection for your personal assets; however, trust structures can be considerably complex. It is advisable to consult with a lawyer and a tax advisor to determine if a trust is the most advantageous option for your specific circumstances.

How Do I Protect My Intellectual Property On Amazon?

In Australia, the best way to protect your business’s intellectual property (IP) is by registering the relevant rights with IP Australia. This is especially important in today’s competitive market where brand recognition is key.

For most Amazon sellers, the primary forms of IP protection needed are a trade mark and, where applicable, design registration. Our trade mark registration service can help safeguard your logo, business name, catchphrases, and other brand elements.

Trade Marks

In a competitive online marketplace like Amazon, building and protecting a strong brand is essential. Trade mark registration helps ensure your unique logos, business names, taglines, and even packaging designs are legally protected. Trade marks are generally registered for 10 years and can be renewed indefinitely, offering ongoing protection as your brand evolves.

Designs

If you are selling products with distinctive designs, it may be beneficial to register these designs with IP Australia. A registered design protects the visual appearance of new and distinctive products – including shape, colour, configuration, pattern, and ornamentation. Note that while design registration can secure protection for up to 10 years, it cannot be renewed beyond this period.

What Is The Australian Consumer Law and Does it Apply to Amazon Sellers?

The Australian Consumer Law (ACL) is a national law designed to protect consumers when purchasing goods and services. The ACL applies to all Australian businesses – including those operating on Amazon – and covers critical areas such as unfair contract terms, product safety, misleading or deceptive conduct, and consumer guarantees.

The ACL also entitles consumers to request a refund or exchange if they are dissatisfied with their purchase. As an Amazon seller in 2025, it is crucial that you understand your obligations under the ACL to avoid breaches and ensure compliance with current consumer protection standards.

Do Amazon Sellers Need A Supply Agreement With Suppliers?

Although it is not a legal requirement to have a Supply Agreement in place with your suppliers, having one is highly recommended. A well-drafted Supply Agreement sets out the obligations and expectations of both you and your suppliers, helping to prevent misunderstandings or disputes.

A typical Supply Agreement will cover key aspects such as:

Product details: clear descriptions and specifications of the goods to be supplied.
Pricing: whether prices are fixed for the duration of the agreement or subject to periodic adjustments (e.g. based on the consumer price index).
Exclusivity: whether you have exclusive rights to the supplied goods in specific territories – a factor discussed in our Exclusivity Clause article.
Order and payment process: details regarding purchase orders, minimum order quantities, payment terms, and fulfilment timelines.
Shipping: clarifications on which party is responsible for shipping logistics and costs.
Title to goods and passing of risk: when title and risk for the goods transfer from the supplier to you.
Dispute resolution: procedures for addressing any issues with the goods or service, including remedies available if disputes arise.

Emerging Trends for Amazon Sellers in 2025

The Amazon selling landscape is evolving rapidly. In 2025, trends such as sustainability, customisation, and enhanced digital marketing are at the forefront. Sellers are increasingly leveraging advanced data analytics and customer insights to customise their offerings, while a focus on ethical and sustainable practices is becoming essential. Staying informed with policy updates and technological advancements – for instance, through insights from our online business legal guides – can give you a competitive edge.

Moreover, integrating social media and omnichannel strategies can further extend your reach. As consumer habits shift and technology advances, ensure your legal and business frameworks are adaptable to emerging best practices.

How Do I Get Started As An Amazon Seller?

Launching an Amazon business can be a highly rewarding endeavour, but the complexities of compliance and strategic planning mean you must begin on the right foot. Establishing robust legal foundations – from choosing the appropriate business structure to ensuring your intellectual property is protected – is paramount.

Our team of expert eCommerce lawyers is here to guide you through every step of the process, whether that means setting up solid terms and conditions for your online store (learn more here) or advising on the best business structure for your operations. For additional support on issues such as supplier agreements and intellectual property, our comprehensive resources – including our Australian Consumer Law for Businesses guide – can be invaluable.

Feel free to reach out to us at team@sprintlaw.com.au or call us on 1800 730 617 for a free, no-obligation chat about launching and growing your Amazon business in Australia in 2025.

Luke Pigram

Luke is a content writer with Sprintlaw. When he is not solving tricky legal issues in his day job, he is hard at work on lukesguide.com, a blog that helps entrepreneurs find the right software and tools to turn their business ideas into reality.

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