We live in the US and sell wholesale in the Amazon US marketplace and are looking to expand our business into Amazon UK. We will still be living in the US.
Has anyone made the transition from the US to the UK?
What are the steps one must take to make this transition as easily as possible?
You need to register for Vat in the Uk then you are good good to start … You will be paying Vat on purchases like everyone else unless they are vat exempt , then you will need to claim vat back …Nothing complicated , just hire an accountant to do everything for you .
Already selling in UK market… we launch a product with our own brand in 2023 and running well.
My recommendation to go towards private label in UK market as a mon UK residents.
For UK residents their is some advantages in VAT and taxation but for non uk residents… assume double taxation. To amazon and to the supplier.
But private label is amazing in UK … low competition and very Hot selling. In Dec and Jan we made around 8kGBP on net profit and after that we launch another variation of the same product which is going v well
Hello,
Thank you for reaching out with your question about expanding your Amazon business from the US to the UK marketplace. While transitioning to a new marketplace can present challenges, with proper planning and execution, it can also offer exciting opportunities for growth and expansion.
Here are some steps to consider to make the transition from the US to the UK marketplace as smooth as possible:
Market Research: Start by conducting thorough market research to understand the UK marketplace, including customer preferences, competitive landscape, and regulatory requirements. Identify potential opportunities and challenges specific to selling in the UK.
Legal and Tax Considerations: Familiarize yourself with the legal and tax implications of selling in the UK as a US-based seller. Determine whether you need to register for VAT (Value Added Tax) in the UK and comply with other regulatory requirements. Consult with legal and tax professionals to ensure compliance with all applicable laws and regulations.
Logistics and Fulfillment: Evaluate your logistics and fulfillment strategy for selling in the UK. Decide whether you will fulfill orders from the US or establish fulfillment centers or partnerships in the UK. Consider factors such as shipping costs, delivery times, and customer expectations.
Product Localization: Adapt your product listings, descriptions, and marketing materials to cater to the UK market. Consider cultural differences, language preferences, and local regulations when customizing your product offerings for UK customers.
Account Setup: Create a separate seller account or expand your existing Amazon seller account to include the UK marketplace. Follow Amazon’s guidelines and requirements for setting up a seller account in the UK, including providing accurate business information and verifying your identity.
Inventory Management: Determine your inventory strategy for selling in the UK, including sourcing products, managing stock levels, and optimizing inventory turnover. Consider factors such as demand forecasting, seasonal fluctuations, and supply chain logistics.
Customer Service and Support: Provide excellent customer service and support to UK customers to build trust and loyalty. Consider offering localized customer support, including UK-based phone numbers or email addresses, to address customer inquiries and concerns promptly.
Marketing and Promotion: Develop a marketing and promotion strategy to increase visibility and drive sales in the UK marketplace. Utilize Amazon PPC advertising, social media marketing, and other channels to reach UK customers and promote your products effectively.
Stay Informed and Adapt: Stay informed about changes and updates to Amazon’s policies, marketplace trends, and consumer behavior in the UK. Be prepared to adapt your strategies and tactics based on new information and insights to optimize your performance in the UK marketplace.
By following these steps and proactively addressing key considerations, you can increase your chances of successfully expanding your Amazon business from the US to the UK marketplace. If you have any further questions or need assistance along the way, please don’t hesitate to reach out. We’re here to support you in your expansion efforts.
Get yourself a uk accountant. Ltd company and vat registration.
I’m no expert but I get a sense the capital you put into the UK will make you a better return in the USA.
You only need to register for VAT and then every 3 months (which is standard) or you can even opt for monthly payments, you will be paving VAT to the government.
In short, everything in the UK is taxed or most things are. When you go to a retailer and buy batteries for 10 GBP, upon checking the invoice, you will see the total price as 10 GBP, and below, you can see the breakdown: Net price 9 GBP + 1 GBP VAT (20%). By the way, I’m making up the numbers, but the standard VAT rate is 20%, reduced VAT is 5% (I don’t think you’ll deal with these unless you’re selling condoms) and VAT exempt which is 0% (most groceries).
So, if you sell the batteries on Amazon for 20 GBP, from that 20 GBP, you need to pay 20% VAT to the government, which is 4 GBP. You paid 1 GBP VAT when you purchased the batteries, which you, as a business, are entitled to claim back.
But you need to pay 4 GBP VAT from the sale. So now, what you or the accountant will do is make the difference 4-1 and pay only 3 GBP to the government. But for this, you need to save every single invoice.
I hope this made a bit of sense… but again, get an accountant, and he will handle all this for you.
Does it make sense so sell in all of Europe rather than just the UK?
Only you can decide that. There is a lot of red tape so you need to decide it you can do it.
If it helps, I am uk-based and only sell to uk.
Well, we are deep in a number of brands that we are no longer able to sell in the US market but these brands are perfectly viable in the UK.
Thank you for the detailed explanation. So you’re saying vou need to send 20% of the selling price to the government and not 20% profit? That seems like a massive difference. Do the ROl’s therefore have to be insanely high to even consider selling a product to begin with?
If you want to do FBA from any European country you will have to register for VAT in that specific country where you store goods. You can not store goods in any country without having VAT.
The rules are similar to those in the UK, though the VAT rate might differ-for example. It’s 20% in the UK and 1% in Germany.
If you are registered for VAT in any European country, let’s say Germany, then you have several benefits you can take advantage of.
If you buy stock from another European country and have it shipped to Germany, you don’t pay VAT on the purchase because of the cross-border transfers. This VAT is reclaimable anyway but it’s better not to pay and wait to reclaim it (it helps with cash flow).
Another advantage is that you can receive orders from Europeans all over Europe (where Amazon ships, There are a few other programs like Pan-EU).
You will have to register your business in UK first.
Can u plz explain what do you mean by .
The capital we put in UK will make better return in USA?
Looking forward
Many thanks
You have to create your LTD for UK marketplace, then create your account on the basis of your LTD and it your US listing is PL, then you will shift your listings with reviews on that store…btw
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Overall, without additional context or specific information about the investment strategy or market conditions, it’s challenging to provide a more precise interpretation. However, the statement suggests that the person sees the UK as a more attractive destination for capital investment compared to the USA.
If you need further clarification or have additional questions, please feel free to ask!
I hope this explanation bellow will help:
When you’re running a business that is VAT registered, you’ll deal with two types of VAT: the VAT you charge on your sales (output VAT) and the VAT you pay on your purchases (input VAT).
The actual selling price without VAT can be calculated as £100 / (1 + 0.20) = £83.33.
Thus, the output VAT is £100 - £83.33 = £16.67.
The actual purchase price without VAT is £50 / (1 + 0.20) = £41.67.
Thus, the input VAT is £50 - £41.67 = £8.33.
In this corrected example, you would pay £8.34 to the tax authorities because the VAT collected on sales (output VAT) is higher than the VAT paid on purchases (input VAT).
Key Points:
Output VAT is based on the VAT rate of your selling price.
Input VAT is what you’ve paid on your purchases.
You pay the difference to the tax authorities it your output VAT exceeds your input VAT. Conversely, you may reclaim the difference if your input VAT exceeds your output VAT.
Please note this is a simplified explanation, and actual VAT calculations might involve more specific rules depending on local VAT legislation and the nature of goods or services.
Thank you everyone for the information!
How is Amazon UK market in terms of selling point of view? Good potential market?
Thanks