The world's largest marketplace offers sellers endless possibilities. If you're a UK seller looking to start an Amazon FBA business, this guide will help you build a successful venture. We'll explain each step and highlight key points to focus on.
Amazon FBA UK: Getting Started
Starting an Amazon FBA business involves diverse tasks fro, sourcing products and product research to accounting and day to day administration work. Amazon UK has also just changed its UK VAT potion ans VAT will be payable on fees from 1st August 2024 so there will have to a understanding on VAT also and whether or not you choose to register for VAT from the off.
- Storing goods in the UK
- Selling to UK consumers
- Exceeding the £85,000 VAT threshold in the next 30 days or in the past 12 months
You may also need to register in other EU countries depending on your sales and storage locations.
Register Your Business in the UK
To start an Amazon FBA business, you must register your business and pay taxes. Choose the business type that minimise taxes and keeps personal assets separate. You’ll need:
- Company name
- Business address (can be your home address for small FBA participants)
- Business owner and manager details (can be the same person)
Open a Business Account
A separate business account is highly recommended for transparency and professionalism. Opt for a free account initially, considering conditions and restrictions.
Get Your VAT ID and Tax Number
A VAT identification number and tax number (UTR) are necessary for issuing invoices. Even if not liable for VAT due to small business status or exempt goods, applying for a VAT ID is advisable. This simplifies future operations and importing products.
Apply for an EORI Number
An EORI number is essential for importing goods, whether from the EU or outside. This free number helps customs track shipments and ensures order legality. Even if purchasing domestically, having an EORI number is recommended to avoid delivery confirmation hassles.
Create an Amazon FBA UK Account
After business registration, create an Amazon FBA account. Choose between a Basic (free with £0.75+VAT per product sold) or Pro Seller account (£25+VAT/month) based on your sales volume. The Pro account is recommended as transferring accounts can be a long process and cause issues which could lose you sales.
Warehousing and Storage Costs
Amazon FBA sellers pay storage fees: £0.48 per cubic foot (Jan-Sep) and £0.68 (Oct-Dec). Avoid long-term storage fees (£882.50 per cubic foot after 12 months) by managing inventory wisely. Opt to outsource to a Amazon Prep Centre UK and utilise their service for FBA prep and storage.
Amazon FBA Fees Calculator UK
Amazon retains a portion of your revenue as FBA fees. Use the Amazon FBA Calculator UK to estimate your net profit per item and the exact fees deducted by Amazon. Use Profit Runners free tool to calculate all of your costs.
VAT Filing in the UK
UK businesses typically file VAT returns quarterly, though monthly or annual returns are possible under certain conditions. Returns are due by the 7th day of the second month following your accounting period.
Conclusion
To succeed on Amazon, follow these steps carefully. From business registration to product selection, attention to detail is crucial and selling on Amazon successfully is not a easy task and requires a lot of work and commitment.
By understanding and implementing these steps, you can build a successful Amazon FBA business in the UK.
Amazon Prep Centre UK For A Helping Hand
Blue30 is an UK Amazon Prep Centre, offering a product preparation service for Amazon FBA sellers. This includes bundling items and oversize shipping. We're here to save you valuable time and energy so that you are able to focus on other aspects of the business. Find out more about our pricing. As an Amazon Prep Centre, we receive your products, inspect them, create the shipping plan, prepare them as required and dispatch them. Find out more about Our Services here.
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