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By miguel-ingles
- In Uncategorized
As the world’s largest sale platform, Amazon offers many advantages to both buyers and, above all, sellers. In this article, I explain the process of selling on Amazon UK to expand a business.
Why Should a Company Sell on Amazon UK to Expand a Business?
Amazon UK is the buying and selling portal with the most registered users in the UK. Therefore, it will be easier to get good sales numbers. In addition, it offers many benefits to companies in matters such as logistics and shipment of products, expansion to foreign markets or ways to advertise its assets within the platform itself.
For all of the above, opening an online shop on Amazon can serve to expand a brand globally and to build and improve the business image and reputation of an e-commerce.
Steps for Selling on Amazon UK to Expand a Business
Creating a Seller Account
The first step to selling products in the UK on Amazon will be to create a seller account. To do this, you will have to complete the registration process through this website.
There are two plans to choose from: individual and professional. In the first type, Amazon will charge the business 0.75 GBP for every item it trades. It is especially relevant for small sellers who have little inventory of goods or who are evaluating what to sell. In the second, you will be required to pay 25 GBP per month. This option is recommended for companies that trade more than 35 items per month, want to use Amazon sales tools or are looking to advertise its products within the platform.
In the event that a corporation already has a seller account in another country, it will not be necessary to create a new one in Amazon UK. Simply add the UK region to the existing account and meet the requirements set out in the following point.
Other Requisites
To complete the registration process, the company will need.
- A valid shipping address in the UK. Amazon UK does not allow you to ship packages directly from other countries.
- A credit card to which they will charge you the monthly payments.
- Company registration details, such as VAT number.
- A valid passport or ID.
Conducting a Market Analysis
The UK is one of the most competitive markets and this moves to Amazon. You should study which products are most in demand. Additionally, you should assess which market opportunities are not covered on the platform or the maximum prices that customers are willing to pay, among other issues.
Amazon UK Fulfilment Methods
On the one hand, Amazon offers sellers the so-called Fulfilment by Amazon (FBA). The sellers send their products to a logistics centre of the platform itself. Amazon will handle the shipment of the package to the customer. This is a more practical option that allows the company to save time.
On the other hand, with the Fulfilment by Merchant (FBM) option, the businesses themselves will be responsible for sending their consumers the envelopes. Some sellers prefer this alternative as it allows them to minimize costs.
Elements to Consider when Selling on Amazon UK
Elements to Consider when Selling on Amazon UK
In addition to individual or professional plan subscriptions, Amazon will also require the payment of other rates. Firstly, we have the referral fees. The platform will retain a percentage of between 8 and 15% (depending on the item) of the final sale price of the product.
Secondly, to use Amazon logistics, you will have to pay a price that will vary depending on the dimensions and weight of the package. You can make the calculations in this webpage.
Finally, you will also have to pay other fees according to the space occupied by the inventory of your enterprises in the warehouses of the platform.
VAT as a Seller on Amazon
If a company is going to sell on a sales portal, in the UK it will need to register for VAT.
Amazon is not responsible for VAT compliant vendors in their respective regions, but they do provide guidance to help them through this process.
In ukstartcompany, you will find information about how to establish, register and operate companies with different legal structures and business activities in the UK.