Selling on Amazon opens the door to international markets for millions of sellers. With over two million registered sellers, this colossal online marketplace offers a wide array of opportunities for entrepreneurs around the globe.
Entry into Foreign Markets Made Possible by Amazon
Amazon Marketplace allows sellers direct access to the international market, providing them with a vast pool of potential customers worldwide.
Two Modes of Selling
There are two ways to sell on Amazon: Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA). FBM means that sellers manage the entire ordering process themselves, while FBA indicates that Amazon takes care of logistics and packaging.
A Large Number of Sellers
Currently, there are over 2 million sellers on Amazon, half of whom ship goods from their own warehouses, while the other half utilise Fulfillment by Amazon services.
Benefits of Selling Small and Expensive Items
Selling small, lightweight, and expensive items such as jewellery, watches, precious stones, and luxury brands has many advantages. These products take up minimal space, have low transportation costs, and fetch high prices.
VAT Challenges in Selling on Amazon
Sellers must tackle the issue of VAT registration in the countries where they sell their goods. This can be complex and demanding, as each country has its specificities.
Our company provides expert services in Amazon sales and VAT management within the European Union. We possess deep knowledge of VAT rules in individual member states and specialise in registering European sellers for VAT in countries like the Czech Republic, Germany, Poland, France, Italy, Spain, and the United Kingdom. Our goal is to offer you comprehensive support throughout the entire registration process. We help you obtain all necessary documents and provide templates essential for acquiring a VAT ID in the EU and the UK.
Advantages of Fulfillment by Amazon (FBA)
Sellers using the FBA service benefit from fast and efficient delivery, enhancing customer satisfaction and increasing the likelihood of repeat purchases.
The One Stop Shop (OSS) Tax Regime
From 1st July 2021, a special OSS tax regime applies within the European Union, simplifying VAT management for sellers on an international level.
Complications and Variability of VAT on Amazon
Overall, selling on Amazon is an enticing way to reach the international market and acquire new customers. However, sellers must carefully consider the advantages and disadvantages of each option, as well as familiarise themselves with the tax obligations that this mode of selling entails. A well-planned strategy can lead to success and business growth on a global scale.
VAT and tax reporting rules are continually changing and can vary between countries. Sellers must be constantly vigilant and adapt to current requirements, which can be challenging.