A Seller of Record (SoR) is a legal entity that sells goods or services to end users. The SoR is especially useful for businesses that do not have a local presence but sell to interstate or global customers. A brand can grant an SoR the legal authority to identify as the original seller and sell products under their name if wanted; otherwise, the SoR will act as a third party.
Create & maintain payment infrastructure with SOR
SoR service providers exist to relieve companies who would rather focus their internal resources on more stimulating aspects of business growth, such as product development and client acquisition, of the burden of payment processing and compliance.
In addition to the ability to outsource the burden of creating and maintaining a payments infrastructure and calculating, filing, and remitting sales tax to comply with tax regulations, appointing a seller of records affords the brand the opportunity to outsource the burden of creating and maintaining a payments infrastructure.
Additionally, the SoR can ease the enormous financial and legal administration burdens associated with cross-border sales. The appointed SoR will also be responsible for establishing local business entities, as they must register the brand and product so that they can be legally sold in the country, provide the import license, facilitate the merchant accounts and payment relationships, including currency conversion payments made by international customers, and open multiple merchant bank accounts in countries with a large customer base in order to accept payments.
Conclusion
In conclusion, a Seller of Record can conduct end-to-end sales activity on behalf of the brand with their direct monitoring to achieve the goals together. Additionally, the SoR offers market expansion services, market development, and market management based on their expertise and experiences.
