Can Chinese sellers join Best Buy Marketplace directly?

Best Buy said on August 27, 2026 that it would begin adding international sellers that quarter, and its July 2026 seller terms include an international addendum. As of November 2026 the accepted countries and categories aren't public; the Seller Hub and your account manager decide. A U.S. company applies under the U.S. seller rules.

Do international sellers on Best Buy have to be the importer of record?

Yes. The terms make the international seller the importer of record in all cases; Best Buy is never the importer or consignee. Products ship from a U.S. warehouse, and duties and import charges are the seller's and can't be added to the customer's bill.

Does a Chinese company selling directly on Best Buy owe U.S. income tax?

It depends on the facts. U.S. inventory sold continuously to U.S. customers can amount to a U.S. trade or business. Under the U.S.–China treaty, business profits without a permanent establishment are generally not taxed in the U.S., but the company generally still files Form 1120-F and discloses the position on Form 8833. State taxes are separate.

What does a U.S. subsidiary selling on Best Buy file each year?

A C corporation files Form 1120 at 21% federal, with Form 5472 if 25% or more foreign-owned and a $25,000 starting penalty per missed form. The factory's price must be arm's length under section 482 and the imported cost can't exceed customs value under section 1059A. Dividends to the parent carry 30% withholding, generally 10% under the treaty.

Best Buy International Sellers 2026: W-8, Importer, Entity

When Best Buy's U.S. marketplace opened on August 19, 2025, every seller needed a U.S. physical presence. On its August 27, 2026 earnings call, Best Buy said it would begin adding international sellers that quarter, and the July 2026 seller standard terms already carry an international seller addendum: give a W-8, act as importer of record, ship from a U.S. warehouse, and keep a U.S. return address and toll-free number. A Chinese brand can now onboard directly or through a U.S. company, and the U.S. tax results are very different, so work them out before you apply.

Who can sell on Best Buy Marketplace now?

Best Buy Marketplace runs on Mirakl and is curated. You apply through BestBuy.com/Marketplace in four steps (contact information, business information, product information, and fulfillment and delivery), Best Buy reviews the application before offering a seller agreement, and then come know-your-customer and credit checks, registration with the payment provider, and a certificate of insurance. By the end of fiscal 2026 (late January 2026) the marketplace had more than 1,100 sellers.

For its first year every seller needed a U.S. physical presence. On the Q2 fiscal 2027 call (August 27, 2026), management said it would begin adding international sellers later in the quarter, opening the platform to a materially new group of sellers. As of November 9, 2026 Best Buy had not published which countries or categories are accepted, and Q3 results are expected in late November. Before applying, rely on the Seller Hub (partners.bestbuy.com/seller-hub) and your account manager's written answer, and don't buy inventory first.

What do the international seller terms require?

The international section of the seller standard terms (footer version 07012026V002) applies to sellers that are neither resident nor incorporated in the U.S. The main points:

Payouts: a bank account that accepts USD wires, and registration with Best Buy's payment provider.

Importing and shipping: the seller is the importer of record in all cases; Best Buy is never the importer or consignee and may not appear on bills of lading or entry documents. Products must ship to customers from a U.S. warehouse, and Best Buy provides no storage. Duties and import charges are the seller's, and customers can't be charged anything beyond their invoice. Title passes to the customer only on delivery.

Returns and service: a U.S. return address, with no shipping of returns abroad, plus a U.S. toll-free number and English-language service.

Warranty and support: a manufacturer's warranty valid in the U.S., or an equivalent warranty from the seller. Any warranty, logistics or support services performed in the U.S. must be done by a third party that is a U.S. resident or U.S. company.

Taxes: the seller registers where required, provides a valid W-8, and accepts that Best Buy may report seller information and transaction data to tax authorities.

Compliance and brand: Best Buy can ask for proof of brand ownership or authorization, a supplier code of conduct self-assessment and, if needed, an audit; environmental and recycling levies are the seller's, including any U.S. registrations.

Onboarding the Chinese company directly: what about U.S. income tax?

A direct seller gives Best Buy a Form W-8BEN-E, generally needs no U.S. company, and files no Form 5472. That doesn't make U.S. tax go away.

U.S. trade or business: inventory in a U.S. warehouse sold continuously to U.S. customers through a U.S. platform can put a foreign company in a U.S. trade or business. For purchased goods, the source of sales income generally follows where title passes, and these terms pass title on delivery to the U.S. customer, which points to U.S.-source income that can be effectively connected income (ECI). For goods the company manufactures itself, section 863(b) sources the income by place of production, which can change the answer.

The treaty: under the U.S.–China income tax treaty, a Chinese company's business profits are generally not taxed in the U.S. without a permanent establishment. Selling through a platform from an independent 3PL generally doesn't create one on its own; U.S. employees, a dependent agent who habitually concludes contracts, or your own U.S. premises can. The requirement that U.S. services be performed by U.S. third parties points the same way.

Filing: a foreign corporation with ECI files Form 1120-F. One that claims treaty protection because it has no permanent establishment generally still files Form 1120-F and discloses the position on Form 8833; not filing can cost deductions and credits.

State tax: the treaty doesn't bind the states. Income tax, franchise tax and registration in each inventory state need their own review.

Onboarding through a U.S. company: W-9, Form 1120 and Form 5472

A U.S. company gives a W-9, which keeps banking, insurance and multi-platform records simple, but brings fixed annual filings.

C corporation: Form 1120 at 21% federal; a corporation 25% or more foreign-owned attaches Form 5472, with a $25,000 starting penalty per missed form. Dividends to a Chinese parent carry 30% withholding, generally 10% under the treaty.

Foreign-owned single-member LLC: disregarded for income tax, it files pro forma 1120 + 5472 each year; under the W-9 instructions the foreign owner gives a W-8 rather than a W-9 under the LLC's EIN, and U.S. inventory and sales raise ECI questions for the owner. The LLC can elect corporate treatment on Form 8832, generally locked for 60 months after a change.

Intercompany pricing: what the factory charges the U.S. subsidiary must be arm's length under section 482, and under section 1059A the subsidiary's cost of imported goods can't exceed customs value. Income tax and customs need to line up.

How to choose

Example (hypothetical numbers, to show the method): a Shenzhen earbud factory with its own brand expects to sell 12,000 pairs a year on Best Buy at about $18.46 pre-tax profit per pair. Through a U.S. C corporation, taxable income after $40,000 of operating costs is about $181,520 and federal tax about $38,119, with Form 1120 + 5472 and pricing documentation every year. Onboarding directly skips the U.S. company and Form 5472, but the factory becomes the importer with CBP registration and a bond, the permanent establishment and state tax positions need documenting, and it depends on Best Buy accepting the application.

As a rule of thumb, a brand testing the market with no plans to hire in the U.S. should evaluate direct onboarding; a brand selling on Amazon, Walmart and other platforms, keeping profit in the U.S. or planning U.S. hires is usually clearer with a U.S. subsidiary.

Three things to do before applying

First, decide the role: direct or through a U.S. company, with the tax and cost math above. Second, settle imports: the importer of record, HTS codes and Section 301 duties, and which state the U.S. warehouse is in. Third, make records match: company name, address and tax ID must agree across formation documents, tax forms, bank and insurance.

The full onboarding requirements, commission table, electronics certifications and state fees are in our guide. For Form 5472 see this guide, for W-9 versus W-8 this guide, for whether a foreign-owned LLC should elect corporate treatment this guide, and for parent-subsidiary pricing this guide. To run the numbers for your case, book a free 15-minute call or add WeChat YCLUSA.