Features of Amazon Trading in the UK
November 02, 2018
Amazon offers great opportunities for e-commerce, and the more marketplaces a business covers, the more loyal customers it will get throughout the world. In fact, starting an online business on Amazon UK is the same for people from different countries from the UK itself to the US, Canada, and other.
There is a couple of options for doing this, so let’s talk about both of them.
How to Sell on Amazon UK?
You can work with this marketplace even if you are not a resident of Great Britain.
Note, that we don’t provide official legal advice on the business question and our article is not a call to action. So please visit a lawyer before continuing to expand your business to the UK market and make sure you do everything correctly from the legal point of view.
1. Use your already existing LLC
The simplest and fastest decision is expanding your existing business to new markets. For acting in the UK legally, you will have to:
- Register for VAT (Value added tax) for obtaining an EORI number. After that, you can start importing. All international sellers need to collect and pay VAT in case your inventory is stored in the EU. Amazon just won’t let you register without registering for VAT and getting an EORI number that allows sellers to import products to the UK.
- Your seller accounts for the US and the UK will be linked as for the one seller, so if you had privileges, they will be removed.
So bear in mind that if you lose one of your seller accounts, others may be affected as well. Explore carefully what products are prohibited in Europe in order not to wake up someday and find out that Amazon closed all your accounts.
So, if this didn’t scare you, let’s go on with how to sell on Amazon UK. There is another option for foreigners (as well as for the UK citizens, but this is natural for them).
2. Registering a UK Limited Company.
The second option of how to sell on Amazon UK is setting up an LTD company. The main benefits of this approach are:
- Your seller account won’t be linked to other marketplaces, so if Amazon suspends one of them, other accounts won’t be affected.
- You won’t have to register for VAT at the start. You’ll need to do that if only your sales amount exceeds the level.
How to Start Selling on Amazon UK with FBA
You ship your inventory to Amazon warehouses in the UK, and further you may choose from 2 options:
- European Fulfillment Network that allows Amazon sellers who are working with Italy, Germany, France and the UK to store products in one FBA center, and fulfill orders from other countries.
- Multi-Country Inventory allows sellers to store products in different countries, so you will have some inventory in every country.
Let’s see the details of how to sell on Amazon UK
- Choose one option from above.
- Apply for VAT. In the UK, this is possible to do on their official government site: www.gov.uk. Find the relevant links and apply for a unique number. Your certificate will be sent to you in 14 days (note, these are usually working days).
- After receiving your VAT number, apply for a seller account. You will also need a valid credit card, a phone number (of any country), tax data, a valid bank account that supports the currency of the chosen marketplace.
- Register as an FBA participant in the chosen marketplace.
- Order and prepare your products for importing them to Europe. Remember that you need to have an EORI number.
- Create a plan for the return cases. Amazon offers re-selling those repackaged items, so you can use this option/
In any case, the further plan is pretty much similar to selling on other Amazon marketplaces. The UK has their own market peculiarities, so respect them and your legal business will flourish.