Originally Posted by crimson12

I think you're confused about two different things.

I could send you a million dollars through AP. Doesn't make you an independent contractor, employee, or anything else to Amazon. (AP won't let me send you a million dollars because it will cost them money, but not because it's illegal or otherwise prohibited.)

The employee, contractor, whatever relationship is between you and me, not you and AP. Now, the IRS may suspect (rightly?) that people are using these payment services to evade taxes which is why they might require the 1099. But that's not related to whether you are an independent contractor of Amazon.

Think of it this way. When a guy mows my lawn, he's my contractor. If I give him cash, he's my contractor. If I pay him through AP, does he suddenly become AP's contractor? No.

They're two unrelated concepts: I could send you ten grand and you're not a contractor, or I could send you fifty bucks and you are, but it's not a function of how much money you receive.

Edited to add: yes, you can send money on Amazon without selling anything there. Several times I've paid for trips, dinners, etc., and my friends will send me money on AP to reimburse their portion (or vice versa).