Becoming a Home Depot supplier: store, online drop-ship, direct import and Pro routes, product compliance, tariffs and tax structure (2026)

As of November 2026, there is no open, self-serve third-party marketplace. The route is to become a supplier: Home Depot buys from you, sets the retail price and owns the customer relationship, and you deliver or drop-ship under the supplier agreement. New suppliers usually submit products through Home Depot's New Product Submission site, and the merchant team responds in about 60 days.

Some service-provider articles describe a "Home Depot Marketplace" where approved sellers list on homedepot.com and ship themselves. We checked Home Depot's own materials. The Supplier Hub "Becoming a Supplier" page (updated August 6, 2026) lists only merchandising suppliers, non-merchandising suppliers and the supplier pipeline program. The fiscal 2025 Form 10-K (filed March 2026) describes the website as an extended aisle for the stores and mentions "reseller marketplaces" only when describing competitors. A retail integration software company, on a page reviewed in November 2026, quotes Home Depot's supplier page as saying it does not offer a marketplace but has established onboarding paths. Most of what is called a marketplace is the online drop-ship supplier program (2P), where Home Depot is still the seller. If Home Depot formally opens a third-party platform, we will update this page.

each row is a route, with the seller to the customer, how to apply, how goods move and the tax character.

Route	Seller to the customer	How to apply	How goods move	Tax character
Store supplier	Home Depot	New Product Submission site; merchants respond in about 60 days; annual category line reviews	Delivered to Home Depot distribution centers or stores under routing rules and EDI	Sale for resale; Home Depot collects sales tax; no 1099-K
Online / drop-ship vendor (DSV)	Home Depot	Usually become a supplier first, then enable drop-ship; EDI or a provider platform	Customer orders on homedepot.com; you ship from your own or a 3PL warehouse	Same; keep resale certificates by ship-to state
Direct import (mostly private label)	Home Depot	Home Depot's sourcing offices in China, Vietnam, India, Taiwan and elsewhere approach and order from factories; not a public application	Usually delivered at the export port; Home Depot is importer of record	Factory exports from China; usually no U.S. filing; W-8BEN-E
Pro channels	SRS, GMS, HD Supply	Each buys through its own purchasing team, not homedepot.com's process	To distribution branches, then to job sites	Sale to a distributor, also wholesale
Small-business events	Home Depot	E.g., The Orange Exchange (held 2026-02-19; applications 2025-11-21 to 12-15) for U.S. small businesses	Leads into one of the routes above	Same
Third-party marketplace	—	Not opened by Home Depot as of November 2026	—	Provider "marketplace" talk usually means drop-ship supply

• Why it is worth it: Home Depot is the world's largest home improvement retailer, with fiscal 2025 net sales of $164.7 billion, 2,359 stores and 30,000 to 40,000 items in a typical store. Online is 15.9% of sales, with a far wider assortment than the stores. Shelf space brings volume and brand credibility no marketplace offers.
• The cost: suppliers carry far more compliance, insurance, delivery and chargeback responsibility than marketplace sellers. Home Depot sets the price; you quote a cost. Line reviews can replace you.
• Where to apply: "Apply to be a Merchandising Supplier" on Home Depot's Suppliers and Providers page (homedepot.com/c/suppliers_and_providers) and the prospective Supplier Hub (supplierhub-prospective.homedepot.com). Non-merchandise suppliers (store supplies, IT, logistics, marketing) send a template by email and may resubmit after 90 days without a reply.

Store supply puts you on physical shelves: high volume and the highest bar, with line reviews and replenishment rules. Online drop-ship puts you in homedepot.com's extended aisle: you hold the stock, receive orders and ship, which suits bulky, long-tail and many-SKU products. Direct import means Home Depot's overseas sourcing offices order from the factory, mostly for private label, and the factory needs no U.S. company.

each column is a route; each row is an aspect to compare.

Aspect	Store supply	Online drop-ship (DSV)	Direct import
Products that fit	High-volume standard items: tools, hardware, bulbs, bath accessories	Bulky or many-SKU items stores can't stock: lighting, vanities, flooring, furniture, outdoor	Home Depot private label or custom items
Who holds inventory	Home Depot after delivery	You or your 3PL	Home Depot after delivery at the export port
Importer of record	Depends on terms: under delivered-duty-paid, you or your U.S. company	You or your U.S. company	Usually Home Depot
Systems	EDI: orders, acknowledgments, ship notices, invoices	EDI or a provider platform; daily inventory and on-time tracking uploads	Sourcing office ordering and factory audits
Main risks	Chargebacks for late or non-compliant deliveries; losing a line review	Late or wrong shipments and bad inventory data hurt scorecards; returns	Audits, inspections, price negotiation
U.S. tax	U.S. company files 1120 etc.; state tax where stock sits	Same, often more inventory states	Factory usually has no U.S. filing

• On drop-ship, Home Depot is still the seller: the customer pays Home Depot, and Home Depot pays your invoice at the agreed cost. Your revenue is wholesale revenue, not retail.
• Direct import is not a public application: Home Depot's 10-K says it keeps sourcing offices in Mexico, Canada, India, Vietnam, Taiwan and China and runs risk-based factory audits of non-U.S., non-Canada suppliers of private brand and direct import products. Chinese factories are usually found through those offices, trade shows or existing relationships.
• One factory can run several routes: for example, some designs direct-imported as Home Depot private label and others sold under the factory's own brand through a U.S. subsidiary as drop-ship. Keep the books, prices and contracts separate.

A new product submission asks for company details, the product pitch, unit cost and suggested retail, images, category and country of origin. If merchants are interested, supplier setup follows: the Supplier Buying Agreement, proof of insurance, a tax form (W-9 or W-8), bank details, EDI, barcodes and item data. Insurance limits, payment terms and chargeback schedules are in the agreement and on the Supplier Hub, not published.

1. New product submission: explain how the item differs from what is on the shelf, its unit cost, suggested retail, origin and the volume you can supply. U.S. small businesses can also watch for events such as The Orange Exchange and the Supplier Pipeline Program (since 2003).
2. Merchant review and line reviews: merchants look at the market, price, capacity and innovation; many categories are reviewed annually, so a submission may wait for the next cycle.
3. Supplier setup: company name, TIN and address must match IRS records. U.S. companies give a W-9; foreign companies give a W-8BEN-E. Insurance is generally commercial general liability including products liability, with Home Depot as additional insured, at the limits in the agreement.
4. Item data and barcodes: each item needs a GS1 UPC / GTIN; item data (dimensions, weights, certifications, images, manuals, warranty) goes in on Home Depot's templates. Provider materials say a GS1 Global Location Number (GLN) is often requested too.
5. Systems: common EDI transactions are the purchase order (850), acknowledgment (855), advance ship notice (856), invoice (810) and inventory (846). Many suppliers connect through an EDI provider or drop-ship platform. Home Depot's specifications control.
6. First orders and scorecards: ship under the routing guide, packaging and labeling rules. On-time rates, ship-notice accuracy, inventory accuracy and returns are all measured.

• Can a Chinese factory apply directly? The New Product Submission page addresses prospective U.S. suppliers. For store or drop-ship supply, a Chinese factory generally needs a U.S. company, U.S. inventory or a U.S. agent; direct import runs through Home Depot's overseas sourcing offices.
• Don't fill in tax forms on autopilot: a foreign-owned single-member LLC is disregarded for tax, so W-9 versus W-8 matters. See below and yclcpa.com/walmart.

The supplier agreement requires compliance with every applicable federal, state and local law. Common home improvement rules: electrical products need listing by a nationally recognized testing laboratory (NRTL) such as UL; composite wood and finished goods containing it need TSCA Title VI (and California CARB) formaldehyde certification; California sales need a Prop 65 review; appliances and lighting must meet DOE efficiency standards and FTC labeling, with ENERGY STAR as a voluntary plus; CPSC-regulated products need certificates. Testing labs and lawyers confirm these; we record certification, recall and claim costs correctly.

each row is a category, with common certifications or rules and points to watch.

Category	Common requirements	Watch for
Power and cordless tools	NRTL safety listing (UL, ETL, CSA); lithium battery transport testing (UN 38.3); FCC authorization for wireless features	Batteries ship under hazmat rules; Prop 65 warnings
Lighting and LED lamps	NRTL listing; FCC Part 15 for LED drivers; DOE efficiency standards for lamps and FTC Lighting Facts labels; ENERGY STAR voluntary	California Title 20 database listing; wireless rules for smart lights
Bath and kitchen (faucets, showerheads, vanities)	Lead-free rules for drinking-water products (commonly NSF/ANSI 61 and 372); WaterSense voluntary	Vanities and cabinets with composite wood: see next row
Flooring, cabinets, vanities, furniture	TSCA Title VI formaldehyde: MDF, particleboard, hardwood plywood and finished goods containing them certified by an EPA-recognized third party and labeled; TSCA import certification; Lacey Act declarations for some wood products	CPSC tip-over rule for clothing storage units; keep records 3 years
Appliances	NRTL listing; DOE efficiency standards; FTC EnergyGuide labels; ENERGY STAR voluntary	Refrigerators, washers and similar items also face Section 232 metals duties
All categories	California Prop 65: from 2025 the short-form warning must name at least one chemical, with a transition to January 1, 2028; CPSC certificate eFiling at import from July 8, 2026; UFLPA supply-chain evidence	Home Depot's responsible sourcing standards and factory audits

• Listings are a retail gate: UL-type listing is often not a direct federal requirement for consumer products, but local electrical codes, insurers and retailers generally require it, and Home Depot's item data templates ask for it.
• TSCA and CARB: California's composite wood formaldehyde rule (Phase 2) and federal TSCA Title VI are aligned; finished goods containing composite wood imported after March 22, 2019 must be labeled "TSCA Title VI compliant."
• Efficiency: DOE standards are mandatory and non-compliant products can't be sold; ENERGY STAR is EPA's voluntary label that helps with selection and some state and utility rebates.
• Price compliance in: testing, certification, labels and recall reserves belong in your cost before you quote. Legal conclusions on product compliance come from testing labs and lawyers.

Supplier margins are often eroded less by the cost price than by deductions: late shipments, wrong ship notices, non-compliant labels and pallets and inaccurate inventory trigger chargebacks under the agreement; returns and defects run through return-to-vendor (RTV) or a defective allowance; co-op advertising and promotional allowances come on top. These are netted from payments on Home Depot's remittance advice, so reconcile line by line.

• The agreement decides: chargeback schedules, defect handling and payment terms sit in the supplier agreement and on the Supplier Hub, not in public. Read them before you sign and ask whether defects come back or are covered by a percentage allowance.
• Routing rules: distribution centers require delivery appointments, pallet, label and ship-notice standards; bulky building materials go through dedicated facilities, including flatbed distribution centers. Direct import follows the sourcing office's shipping instructions.
• Drop-ship scorecards: ship within the promised window, upload tracking and sync inventory daily; cancellations for stockouts and late shipments reduce your online visibility.
• Bookkeeping: chargebacks, defective allowances and co-op allowances are generally recorded as reductions of sales, not expenses; for tax they are generally deductible as allowances or expenses when supported by the remittance advice and the agreement. Match remittances to invoices and shipments, and dispute errors within the dispute window.
• Returned goods: resalable returns go back into inventory; scrapped goods reduce inventory cost, with return and disposal records.

Home Depot has been investing heavily in professional customers. It closed the SRS acquisition on June 18, 2024 (enterprise value about $18.25 billion; roofing, landscape and pool distribution), and in September 2025 SRS acquired GMS (wallboard, ceilings, steel framing; enterprise value about $5.5 billion). At the end of fiscal 2025, SRS including GMS had more than 1,250 locations. Supplying these distributors means working with their own purchasing teams.

• What it means for suppliers: roofing, landscape and pool products, wallboard, ceilings and steel framing are bought by pros at SRS and GMS branches, not on homedepot.com. A Chinese building-products factory targeting this channel needs the distributors' buyers and job-site logistics.
• HD Supply: Home Depot's subsidiary for maintenance, repair and operations (MRO) products for multifamily, hospitality, healthcare and government housing, with its own supplier portal and EDI rules.
• Services for pros: Pro Xtra loyalty, Pro pricing, trade credit (Pro Trade Credit), dedicated sales teams and delivery.
• Contractors buying materials at Home Depot: most states (including North Carolina) treat a contractor's materials for real property improvements as consumed by the contractor, so sales tax is paid at purchase and a resale certificate does not apply; contractors who also resell materials at retail may use a resale certificate under state rules. Home Depot has a tax-exempt account registration process; its current requirements apply. For designers and contractors reselling furniture and materials, see yclcpa.com/houzz; for North Carolina, see yclcpa.com/salestax.

The key difference is who sells to the customer. Amazon, Walmart, Etsy and TikTok Shop are marketplaces: you are the seller, the platform collects sales tax and issues 1099-Ks to U.S. sellers. Home Depot and Wayfair are retailers: you are a supplier, they set retail prices and collect tax, and you get no 1099-K. Home Depot adds stores and Pro channels to what Wayfair offers, with a higher bar.

each row is a channel, with the model, who can join, fees, logistics, sales tax, 1099 and payment. Figures are typical.

Channel	Model / seller to customer	Who can join	Main fees	Logistics	Sales tax	1099 and payment
Home Depot	Retailer buys; Home Depot sells	Suppliers, by application; no open marketplace	No commission: you quote cost, Home Depot sets retail; chargebacks, defect and co-op allowances	DCs or stores; online drop-ship; direct import	Home Depot collects; you keep resale certificates	Invoices paid on agreed terms; no 1099-K
Amazon	Marketplace; you sell	Individuals or businesses, self-registration in the U.S. and most countries	Professional plan $39.99 a month; referral fees mostly around 15% (8%–15% common)	FBA or merchant-fulfilled	Amazon collects	U.S. sellers (W-9) get a 1099-K at $20,000 and 200 transactions; foreign sellers give a W-8
Walmart	Marketplace; you sell	U.S. companies (EIN) or companies from listed countries; sales history needed	No monthly fee; referral fees 6%–20%, mostly 15%	WFS or own U.S. warehouse	Walmart collects	Via payment provider; 1099-K for W-9 sellers at the federal threshold (see yclcpa.com/walmart)
Wayfair	Retailer buys; Wayfair sells	Furniture and home suppliers, by application; international suppliers accepted	No commission: you quote wholesale, Wayfair usually sets retail	Supplier drop-ship or CastleGate	Wayfair collects	Paid as purchase invoices; generally no 1099-K (see yclcpa.com/wayfair)
Etsy	Marketplace; you sell	Handmade, vintage and craft-supply sellers	$0.20 per listing; 6.5% transaction fee; U.S. payment processing 3% + $0.25	Seller ships	Etsy collects in marketplace-facilitator states	U.S. sellers (W-9) get a 1099-K at the federal threshold
TikTok Shop	Marketplace; you sell	Local stores need a U.S. company or U.S. person; cross-border usually by invitation	About 6% in most categories, plus creator commissions	Platform logistics or approved warehouses	TikTok collects	1099-K for W-9 sellers at the federal threshold (see yclcpa.com/tiktok)
Lowe's	Marketplace (since late 2024) plus traditional supply	Marketplace sellers by application; suppliers through merchants	Marketplace commissions; supply on agreement terms	Seller-fulfilled; supply to DCs	Marketplace collects in facilitator states	See yclcpa.com/lowes

• For Chinese manufacturers: factories in tools, lighting, bath and kitchen, flooring and furniture with solid quality, certifications and steady capacity can win large orders through direct import and drop-ship. To test the market first, Amazon, Walmart and Lowe's Marketplace have lower bars and faster payouts.
• One U.S. company can do all of it: supplying Home Depot and selling on Amazon and Walmart can sit in the same U.S. company, with books split by channel and the same W-9 or W-8 everywhere.

Generally no to both. Your sale to Home Depot is a sale for resale, and Home Depot collects sales tax when it sells to customers. The exemption needs evidence: in states where you are registered or have nexus, keep Home Depot's resale certificates. A 1099-K is issued by payment platforms that settle customer payments for sellers; Home Depot pays its own purchase invoices, and merchandise payments are outside 1099-MISC and 1099-NEC reporting.

• Resale certificates: ask Home Depot for a multistate certificate or state forms and keep them; North Carolina's is E-595E (see yclcpa.com/salestax). Some states don't accept the multistate form.
• Which state a drop-ship sale belongs to: generally the customer's ship-to state. A shipment from a North Carolina warehouse to California is usually a California sale to Home Depot, reported as exempt resale in states where you are registered.
• Where to register: states where your inventory sits (your own or a 3PL warehouse) usually; economic nexus is $100,000 a year in most states, and some count wholesale sales toward it.
• No 1099 doesn't mean less income: every Home Depot payment is business income reported from your own books; chargebacks and allowances need remittance support to reduce it. For 1099-K reconciliation on other channels, see yclcpa.com/1099k.
• W-9 or W-8: U.S. companies, multi-member LLCs and LLCs taxed as corporations give a W-9. Foreign companies give a W-8BEN-E, or a W-8ECI with effectively connected income. A foreign-owned single-member LLC that hasn't elected corporate status is disregarded, so the owner gives a W-8 rather than a W-9 under the LLC's EIN (see yclcpa.com/w8ben).

A U.S. resident with a brand can use an LLC, S corporation or C corporation. A Chinese factory doing only direct import generally needs no U.S. company. A Chinese factory supplying stores or drop-ship with U.S. inventory usually uses a U.S. C-corporation subsidiary. A foreign-owned single-member LLC looks simple but is where filings and tax character most often go wrong.

each row is a situation, with the tax form given to Home Depot, annual filings, where profit is taxed and points to watch.

Situation	Give Home Depot	Annual filings	Where profit is taxed	Watch for
U.S. resident with own brand	W-9	Schedule C, 1120-S or 1120; state tax where stock sits	U.S.	S corporations can't have foreign owners; importing from China is ordinary, you are the importer
Foreign-owned single-member LLC (no election)	Owner's W-8, not a W-9	Pro forma 1120 + 5472; with ECI, the owner files 1040-NR or 1120-F	As if the Chinese person or company operates in the U.S. directly	$25,000 per missed 5472; U.S. stock and staff point toward ECI; analysis at yclcpa.com/walmart
Chinese factory + U.S. C-corporation subsidiary	Subsidiary's W-9	1120 + 5472; BE-13; 1042 / 1042-S on dividends	U.S. at 21% federal; dividends withheld at 30%, 10% under the treaty	Arm's-length factory price, §1059A customs cap (see yclcpa.com/subsidiary)
Chinese factory, direct import only (delivered at export port)	W-8BEN-E	Generally no U.S. federal filing	Mainly China	A U.S. office, U.S. negotiators or U.S. delivery change the answer
Multi-channel seller (Home Depot + Amazon / Walmart)	Consistent W-9 or W-8 everywhere	One entity, one set of books split by channel	Depends on the entity	File marketplace-collected tax and your own resale exemptions separately

• Foreign-owned single-member LLC: disregarded for federal tax; files pro forma 1120 + 5472 by April 15 each year (see yclcpa.com/5472). Ongoing supply through it with U.S. inventory and U.S. delivery likely means a U.S. trade or business and effectively connected income (ECI), so the owner files 1040-NR or 1120-F. A Chinese tax resident can look to the U.S.–China treaty's permanent establishment article but must file on time to claim it.
• Form 8832 corporate election: the LLC can elect to be taxed as a C corporation, filing 1120 + 5472 and paying 21% federal tax, with 30% withholding on dividends to foreign owners (generally 10% under the U.S.–China treaty). Under Treas. Reg. §301.7701-3(c)(1)(iv), after a change in classification the LLC generally can't change again for 60 months; an initial election at formation doesn't count. Full analysis at yclcpa.com/walmart and yclcpa.com/ccorp.
• U.S. subsidiary: filings for a foreign-owned U.S. company, BE-13 (within 45 days of a new U.S. company formed by a foreign person) and dividend withholding are covered at yclcpa.com/subsidiary.
• Self-manufactured goods are sourced where produced: under IRC §863(b), income from selling goods a Chinese factory makes is sourced by where production happens. Goods made only in China, delivered at a Chinese port, with no U.S. office or agent generally don't produce ECI. More at yclcpa.com/wayfair.
• State tax: inventory in a state generally takes you outside P.L. 86-272. Wholesale sales solicited in a state and shipped from outside may be protected from state income tax, but not from gross-receipts taxes such as the Texas franchise tax (no-tax-due threshold $2,650,000 for 2026 and 2027 reports; 0.375% rate for retail and wholesale) or Washington B&O. Corporations and LLCs doing business in California owe at least $800 a year.

The price decides whether profit stays in China or the U.S., and it drives the duty: a higher price means less U.S. profit and more duty; a lower one means the reverse. The IRS can adjust prices to arm's length under IRC §482, and under §1059A the U.S. company's income-tax cost of imported goods can't exceed customs value. Whoever is importer of record pays duties, answers for the entry and is the only one who can claim refunds.

• Arm's length: a U.S. subsidiary that imports, warehouses, works with Home Depot and bears inventory and chargeback risk is a distributor, and comparable independent distributors earn steady returns. A subsidiary that always loses money, or earns far below comparables, invites adjustment, and understatements from §482 adjustments can draw 20% or 40% penalties under IRC §6662(e) unless qualifying documentation exists when the return is filed.
• Who absorbs chargebacks and defects: Home Depot's deductions land on the subsidiary. The contract should say which can be charged back to the factory (quality defects, for example) and which are the distributor's own business risk.
• Form 5472: a U.S. company 25% or more foreign-owned reports purchases from the Chinese affiliate, loans and service fees every year; each missed form starts at $25,000.
• Importer choice: under delivered-duty-paid terms with a forwarder or the factory as importer, duties and compliance sit with them, and you need their documents to cost inventory accurately. A subsidiary acting as importer needs CBP importer registration and a customs bond for formal entries (generally over $2,500). In direct import to Home Depot, Home Depot is usually the importer.
• Both sides must match: Chinese tax authorities also review export prices; the same transaction needs consistent pricing, contracts and entries on both sides (see yclcpa.com/subsidiary).

As of November 2026, Chinese-origin home improvement goods may face ordinary duty, Section 301 (mostly 25% or 7.5%, plus a 12.5% action from July 24, 2026) and Section 232. Section 232 matters most: from April 6, 2026, steel, aluminum and copper articles and derivatives pay on full value, 50% for articles made essentially of these metals and 25% for derivatives made substantially of them; kitchen cabinets and vanities pay 25% (with the scheduled rise to 50% pushed to January 1, 2027) and softwood lumber 10%. IEEPA tariffs were stopped by the Supreme Court in February 2026, and importers can claim refunds.

from top to bottom, the layers that can stack, with status, content and impact on home improvement categories.

Layer	Status	Content	Impact on home improvement
Ordinary (MFN) duty	In effect	By HTS code	Most tools, lighting and hardware rates are modest
Section 301 (China)	In effect	Lists 1–3 generally 25%, List 4A 7.5%	Most home improvement goods are listed
Section 301 (forced-labor action)	In effect (from 2026-07-24)	12.5% on Chinese-origin goods; Section 232 goods excluded (see yclcpa.com/aigo)	Another layer on goods outside Section 232
Section 232 steel, aluminum, copper	In effect; new regime from 2026-04-06, adjusted from June 8	On full value: 50% for articles essentially of metal, 25% derivatives, 15% for some equipment through 2027; 10% if made entirely with U.S. metal; out if 15% or less metal by weight; only one rate for multi-metal goods	Check metal tools, hardware, lighting, racks and appliances code by code
Section 232 timber and wood products	In effect (from 2025-10-14)	Softwood lumber 10%; upholstered wooden furniture 25%; kitchen cabinets, vanities and parts 25% (rises to 30% and 50% deferred to 2027-01-01)	Cabinet and vanity factories hit hardest
IEEPA tariffs	Stopped (Supreme Court, 2026-02-20)	Refunds of amounts paid through CBP's CAPE function	Only the importer of record or its broker can file
$800 de minimis	Suspended (since 2025-08-29)	Small parcels are entered and pay duty	Direct-mailed parts and accessories affected

• From "content value" to "full value": in 2025, Section 232 on steel and aluminum derivatives applied only to the value of the metal content. The April 2, 2026 proclamation moved to full value, excluded goods with 15% or less metal by weight and ended the derivative inclusion process. For a steel-heavy tool, 25% of full value and 50% of the steel value can differ a lot, so recost under the new rules.
• Check each HTS code: which codes fall in the 50%, 25% or 15% tiers is set in CBP's annexes, with additions and removals from June 8, 2026. Have your broker confirm by code before entry rather than guessing by category.
• Duties go into inventory: duties, inbound freight and brokerage are inventory costs that reach cost of goods sold when the goods sell, not a deduction in the year paid (see yclcpa.com/fba).
• The importer pays and claims: on direct import, duties are Home Depot's cost but show up in price negotiations; when your subsidiary imports, duties hit its margin directly, and transfer pricing has to account for them.

Example (hypothetical numbers, to show the method): a Chinese lighting manufacturer plans a year of Home Depot business. Route A: some private-label designs go direct import, delivered at Ningbo, $1,000,000 of sales, with Home Depot as importer. Route B: its own-brand designs are sold through a U.S. C-corporation subsidiary as online drop-ship; the subsidiary imports, buys from the parent and ships from a U.S. 3PL.

• Route A: made in China, delivered at a Chinese port, with no U.S. office or agent, the $1,000,000 of profit is generally taxed in China with no U.S. federal filing; the factory gives Home Depot a W-8BEN-E.
• If the fixtures are Section 232 aluminum derivatives: at 25% of full value, duties rise by $800,000 × 25% = $200,000 and the subsidiary goes from a $100,000 profit to a $100,000 loss. Cutting the parent's price to "save duty" isn't a free fix; it must satisfy §482 and §1059A, so price the risk into the quote.
• Chargeback sensitivity: moving from 4% to 7% in deductions cuts revenue by $45,000 and nearly halves profit. Reading the chargeback terms before signing beats disputing them later.

Start with who you are (a U.S. brand, a Chinese factory, a seller already on marketplaces), then the route you want. Common situations:

• Situation A: a U.S. resident with a brand who wants stores or online. Submit through your existing LLC, S corporation or C corporation; prepare certifications, insurance, UPCs and EDI first and model margins after chargebacks; handle sales tax registration and resale certificates for inventory states at the same time.
• Situation B: a Chinese factory aiming for Home Depot private label. Work through Home Depot's overseas sourcing offices and trade shows on a direct import basis; a U.S. company is usually unnecessary, and you give a W-8BEN-E. If you also want own-brand drop-ship, plan a U.S. subsidiary.
• Situation C: a Chinese factory using a U.S. company for drop-ship or store supply. Usually a U.S. C-corporation subsidiary, with the importer, the parent's price (§482, §1059A) and contracts settled, and 1120 + 5472 every year. Use a foreign-owned single-member LLC with care, and evaluate Form 8832 if you must.
• Situation D: already selling on Amazon or Walmart and adding Home Depot. Use the same U.S. company with books split by channel, consistent W-9 or W-8 everywhere, and marketplace-collected tax kept separate from your resale exemptions.
• Situation E: a contractor or designer buying materials at Home Depot. Materials used in real property improvements are generally taxed at purchase in most states; resale of materials follows state resale-certificate rules (see yclcpa.com/houzz).