What is a Merchant of Record (MoR)?
Expanding your brand across global marketplaces like Amazon comes with many challenges. Managing taxes, compliance, and understanding marketplace fees can quickly become overwhelming. At Sawa, we offer a Merchant of Record (MoR) service that handles all the complex legal and financial responsibilities of selling your products. With our MoR solution, you can focus on growing your brand while we take care of the intricate details, making global expansion easier and more scalable.
A Merchant of Record (MoR) is the legal entity responsible for processing transactions, including compliance with local regulations such as VAT, EPR (Extended Producer Responsibility) in the EU, and sales tax in the US. As your MoR, Sawa assumes responsibility for fulfilment, managing marketplace fees, customer service, resolving disputes, acting as the intermediary between your brand and the end customer.
Our MoR service removes the need for you to set up local entities in each market or deal with the complexities of tax registration and product compliance. Whether you’re selling in the EU, where VAT and EPR are crucial, or in the US, where sales tax comes into play, Sawa ensures full compliance across regions, giving you peace of mind.
Why Brands Need MoR
Selling internationally introduces layers of complexity that can slow down your growth. Brands often face the challenge of managing:
- VAT and EPR in the EU, or sales tax in the US.
- Product liability and compliance.
- Foreign exchange risks and customer refunds.
- Marketplace-specific guidelines and policies
With Sawa as your MoR, you no longer need to handle these complexities. We provide end-to-end support, ensuring your business is fully compliant with local regulations and that all transactions are managed smoothly. Our MoR service allows you to focus on growing your brand across multiple regions without getting stuck in operational or legal hurdles.
Our model is driving by partnership and trust, with you we run the business with a consignment model where you retain ownership of your goods while we manage the inventory, simplifying your operations and allowing you to focus on scaling.
Advertising Partnership: A Real Collaboration
We take a collaborative approach to advertising, focusing on true partnerships with our clients. Before we begin any work, we agree on an advertising strategy and budget with you, the brand owner. This strategy is reviewed monthly, or more frequently, to ensure that your goals are met and adjustments are made as needed.
Our partnership goes beyond just advertising on marketplaces. Where possibly we could incorporate your brand’s social media channels to drive traffic to your Amazon listings, taking advantage of Amazon’s Brand Referral Bonus. A bonus that rewards brands for bringing external traffic to Amazon, which directly benefits you by lowering your overall fees and increasing profitability.
Scalability for Growing Brands
Sawa’s MoR service is designed to grow with you. Whether you’re starting small or expanding to multiple international markets, we provide the operational, legal, and financial infrastructure to support your brand at every stage. From VAT and EPR in Europe to sales tax compliance in the US, we ensure your business can expand seamlessly and compliantly.
Focus on building your brand, and let us manage the details that make global expansion a reality.
