Amazon UK Guide for New Sellers – A Complete Guide To Selling on Amazon UK from the USA
If you are looking forward to expanding your business and currently running an Amazon USA account, registering on Amazon UK is a great option to consider. It has been great news that the UK online market is soaring high amid the rising threat in the economy.
Amazon UK is continuously rising with an estimation of 350 million online users. Not only does it allow you to start a business in the United Kingdom, but once you are registered in Amazon UK, you can penetrate the market in Spain, France, Germany with a total of 27 European countries.
Amazon UK opens the gate to a vast head of consumers waiting for your store to open without the difficulties to market across the border in Europe with the unified marketplace. You can benefit from the ramping business revenue as you can have the chance to sell in most European Amazon stores while you are registered in one.
The question that might pop up in your mind is – How can I start selling on Amazon UK while living in the USA? Get a chance to market European marketplaces
Before reaching out to your computer for your registration, you must read some important notes about the process and tips on managing the marketplace. If you are currently on LLC registration, you can register as your existing name if you want.
Registering as an LLC
If you register as an LLC at Amazon UK, keep in mind that you also need to be registered for Value Added Tax or VAT, which requires you to pay sales tax immediately as your seller’s account gets approved.
This is your opportunity to link your Amazon US account to your Amazon UK and sell widely in Europe.
There are pros and cons in linking your accounts together. Given as the two selling accounts are bound, any activities that might cause suspension in one marketplace will impact all sales on both accounts.
Amazon offers two selling plans to anyone who wants to sell on Amazon UK. They are offering Basic or Individual plans and Professional plans. Let’s find out more about their benefits.
If you are new to selling and want to explore the market, you may choose to start as an individual plan. If you think you can only make few sales a month or below 35 pieces, registering for a basic plan is your best option.
This basic plan is a no-obligation and has no monthly subscription, but Amazon collects a completion and referral fee for every item you sell.
If you are a highly established online store in the US and want to venture on Amazon UK, you should take this selling plan. It is the option for medium-sized businesses allowing them to pay monthly subscriptions regardless of the number of items they sell.
New UK business account or UK Ltd company
If you want a separate account or a new UK business name on the Amazon UK marketplace, you don’t need to register immediately for VAT. Your business in the US will work separately within its existing marketplace, and your new business in the Amazon UK marketplace will work in its specific areas.
Import and Taxes
Since we are moving across the border of the United Kingdom, there are some rules and administrative hurdles that we need to know for the business to operate legally.
Amazon and the UK government came up with equally comprehensive guides on how to start selling even if your location is in the USA.
EORI number – it is also known as the Economic Operation Registration and Identification number.
You need to obtain this online if you are to import goods into European and UK territories. It usually takes around 3 business days to be released after you apply for the EORI number.
EORI is presented in customs whenever you declare importing goods to the UK. It will give the authority to UK officers to check if you import legal goods in Europe and calculate customs tax.
Import Duty is the amount you pay the UK government before your goods reach the UK’s ground. The courier of your choice can take care of these documents for you.
Whether you opt for LLC or a new business, you need to pay European taxes. The present VAT is set to be 20% of the eligible sale you made on Amazon UK. You can claim back the VAT on some business cost, once you are registered as LLC on Amazon UK.
Receiving an increasing amount of payment from numerous clients in Europe is overwhelming; however, you need a reliable business account. You can register your international payment option and link it to your Amazon UK account. It will switch any currency into USD automatically.
Amazon FBA UK
‘Fulfilled by Amazon’ is the best fulfilment option when doing business with Amazon UK. Europe has its fulfilment centre for sellers who opt for the FBA fulfilment model. If you live in the USA and want to extend your business within Amazon UK, you should switch to FBA for quicker fulfilment and better customer service. This fulfilment method is your best option when you also sell in other marketplaces in Europe.
How to do business and sell on Amazon UK from the USA?
There are steps on how you can start selling on the Amazon UK website.
- Amazon USA and Amazon UK have almost the same processes in registration. Create your selling account at the Amazon.co.uk website. If you opt to link your US selling account with an Amazon UK account, you can connect them here in Seller Central.
- As a legit seller, you need to provide the documents which prove your identity as a seller. You can present your government-issued IDs like a passport, driver’s license, bank documents, and business registration certificate for identity verification.
- Apply for a VAT number depending on your business registration. Do a little research about VAT in Europe and apply for your VAT number online. Your VAT certification will be processed and immediately sent to you.
- Protect your account by setting up a two-step registration. Open and apply for a seller central account in your chosen marketplace and present your identification card for approval.
- Enrol in FBA in your chosen marketplace if you select this fulfilment method.
- Prepare the inventory of your listings. You can use your EORI number for your items to be shipped in your chosen Amazon warehouse.
- Upload and build your listing on your Amazon UK Seller’s account. Amazon has a Built International Listing tool available readily to access 5 EU Amazon marketplace to synchronise your listings with these European marketplaces.
- Fulfilment of European orders – you can have 2 options for fulfilling your customer’s orders: you ship directly or use Amazon FBA options.
If you want an even wider market, you can also check this blog: 5 Rules on How to Sell on Amazon Canada from the United States.
What is the best fulfilment method when selling on Amazon UK from the US?
There are two ways to fulfil your customer’s orders. You can use the Amazon FBA and no longer worry about the distribution or logistics of your account. Amazon will take care of it.
How to sell on Amazon UK from the USA
There are great steps for US sellers to expand their market in the Amazon UK.
1. Create your selling account by visiting Amazon.co.uk. Link your Amazon US account and pay the VAT immediately. Separate your UK and US accounts if you want to register as a new business.
2. Provide your proof of identity as a seller. It should be government-issued IDs or clearances and bank certifications.
3. Set up a two-step registration method. It could be via SMS or an app.
4. Upload and build your listing on the marketplace.
5. Pick a fulfilling process you are comfortable with.
What are the advantages of selling on Amazon UK from the USA?
1. You only need one seller account to access all marketplaces in Europe.
2. You can use your current company name.
3. Amazon UK has 250-300 million users that could access your listings.
4. It gives you the opportunity of infinite earnings.
5. It has a known proven system that sellers widely use all over the world.
Conclusion and additional tips
Indeed, like in any business routine, we need to know rules and administrative hurdles for the business to operate legally. Aside from the steps provided above on how to sell on Amazon UK from the USA, here are some spoon-feeding tips and techniques for you to use when you build your listings and upload them on Amazon seller central account:
1. Sell only allowed products in the UK and EU. Do your homework and find the specific regulations in those areas where you plan to import and deliver your products. They have different strictly implemented regulations on medical, cosmetics, electronics, and foods.
2. Support services are there to help sellers grow their businesses. Make use of them to help you with your business expansion.
3. Set up your international payment account such as Paypal, Transferwise, etc. Check their exchange rates and service fees to maximise your income.
4. Get a full list of dates of key sales periods in Europe.