How to Pick a Merchant of Record Provider: 12 Questions to Ask

The picking problem

Most MoR sales conversations sound the same. Slick decks, names of impressive brand partners, claims of "end-to-end commerce solutions," and a quick pivot to pricing. The hard work — figuring out which provider actually fits your specific scenario — falls on you.

This guide gives you 12 questions that cut through the marketing. Asking these in order, and pushing for specific written answers, will tell you within a single 30-minute call whether a provider is a fit, a partial fit, or not the right tool for your problem.

Section 1: Scope questions (the deal-breakers)

1. Are you registered as Merchant of Record AND Seller of Record in every market I want to enter?

If they're registered in some markets and not others, you're going to end up with a hybrid setup where you're MoR in some countries and they're MoR in others — operational nightmare. Get the list in writing.

2. Do you handle Importer of Record duties?

For physical goods crossing borders, IoR is non-negotiable. Customs clearance, duty payment, HS codes, EORI numbers — if the MoR doesn't handle this, you'll need to hire a separate IoR partner per market.

3. Which sales channels do you actually operate?

D2C only? Amazon? Other marketplaces (Bol, Walmart, Allegro, Kaufland, Zalando)? TikTok Shop? Retail B2B? Each channel has its own legal and operational stack. A D2C-only MoR can't help you launch on Amazon EU.

4. Do you own or operate fulfillment in my key markets?

Some MoRs sub-contract fulfillment to third parties, which adds margin and reduces operational control. Others operate their own warehouse network. Ask specifically: "Whose warehouse will my inventory sit in?"

Section 2: Compliance questions

5. Are EPR registrations included or extra?

Extended Producer Responsibility for packaging, electronics, and batteries is mandatory in EU markets. Costs €5,000–€20,000 per market per year if you handle yourself. Make sure it's in scope.

6. Who handles product safety compliance — CE marking, REACH, country-specific labeling?

If they say "you do," that's a red flag. A real consumer brand MoR handles product compliance as standard scope.

7. What about Amazon's Responsible Person requirement for EU listings?

Mandatory since 2021 for non-EU sellers on Amazon EU. Your MoR should automatically serve as your Responsible Person for all EU Amazon listings.

Section 3: Pricing questions

8. What's the full pricing structure — and what costs are passed through at cost vs marked up?

The right answer: a monthly retainer + performance commission (6–10% of order value) + setup fees per channel/market, with operational costs (advertising, fulfillment, warehousing) passed through at cost with zero markup. Anything else means hidden margins. Demand line-item transparency.

9. Are there any fees not in the proposal?

Ask explicitly. Common hidden fees: per-SKU listing setup, per-market compliance setup, exit fees, data export fees, integration fees. Get a comprehensive fee list in writing before signing.

Section 4: Ownership and exit questions

10. Do I retain 100% ownership of my brand, IP, inventory, and customer data?

The right answer: yes, on all four. If they hedge on inventory ("we hold title to inventory in our warehouses for operational simplicity"), walk away. That's a distributor, not a MoR.

11. What does the exit process look like? How long does it take? What's returned to me?

The right answer: a defined transition period (typically 60–90 days), during which all channel access (Amazon Seller Central, Shopify admin, marketplace accounts), inventory, listing content, customer data, and operational assets are transferred to you or your nominated successor. No exit fees beyond reasonable transition costs.

Section 5: Operational reality check

12. What's your typical onboarding timeline from signed agreement to first live sales?

The right answer: 14–28 days, with onboarding running in parallel with inventory shipping (so the MoR setup overlaps with transit time, not adds to it). If they say "3–6 months," they don't have process maturity. Move on.

Bonus question: Do you operate any of your own brands?

Some MoRs (like eBrands) operate both first-party owned brands and third-party brand partners on the same infrastructure. This is actually a positive signal — it means the platform has been battle-tested on real brands they have skin in, not just service-managed for clients.

How to use this list

Send the 12 questions to every MoR provider on your shortlist before any call. Ask them to respond in writing. The quality and specificity of their answers will tell you more than any sales call.

If a provider can't or won't answer all 12 in writing, that's your answer.

Next step

Want to put eBrands through this checklist? Book a discovery call — we'll walk through every question on the list and give you direct, written answers.