Amazon allows you to sell products on any market in the world through the Internet.
Many people who are exporting to Amazon sell in the United States, but if you are used to the American market, it may be a good idea to expand into a new market.
The next most recommended market after Amazon in the US is Amazon in Europe
In particular, Germany is said to have the largest Amazon market after the United States, and the United Kingdom is also said to have the largest market after Japan (fourth in the world).
Germany and the UK have similar commercial customs, so even among European Amazons, there are many exporters to these two countries.
Please note that sales on Amazon Europe are for intermediate and advanced users, so if you are a beginner, it may be better to export on Amazon US first.
Here, I would like to explain how to export to Europe and sell on Amazon (Germany and the UK), as well as some points to be aware of when exporting.
If you would like to further expand your market or expand into Amazon export sales to Europe, please use this as a reference.
Related: [Amazon Export] Reasons for receiving a warning for copyright infringement and how to deal with it
What is the European market for Amazon exports?
Amazon's market is expanding all over the world, but this time we will the European market and explain it.
The European markets where Amazon is expanding include the following countries:
- United Kingdom (Amazon.co.uk)
- Germany (Amazon.de)
- France (Amazon.fr)
- Spain (Amazon.es)
- Italy (Amazon.it)
Being able to expand our market to up to five countries in Europe alone is attractive.
There is actually a market in the Netherlands (Amazon.nl), but Amazon in the Netherlands currently only sells Kindle-related products, so we are unable to enter the market.
In order to succeed in Amazon export sales to Europe, the most important thing is to decide which market to focus on.
For example, if you look at Amazon's market share in each country, the top three are the UK, Germany, and France
Therefore, it is best to consider this market share when deciding on the main sales country.
Among the European Amazon markets, the UK and Germany have especially large markets, so if you want to export to Europe, it would be best to focus on these two.
Benefits of Amazon export Europe sales (Germany/UK)
Next, I will explain the benefits of Amazon export Europe sales.
Let's think together about why you should export to Amazon Europe and how it is different from exporting to Amazon in Europe and the US.
- Amazon export Europe sales can be managed with one account
- Amazon Europe's FBA is advanced and convenient
- Blue ocean becomes a barrier to entry with VAT
Amazon export Europe sales can be managed with one account
If you want to sell on Amazon UK or Amazon Germany, you don't need to create an account on each Amazon.
If you create an account in one European country, Amazon will automatically create accounts in all countries within Europe.
(For buyer accounts, you must create an account in each country.)
In addition, Seller Central itself ``amazon seller central europe,'' and all sales management on Amazon Europe is consolidated into one place.
Since you can easily understand the sales status of each country, it is easy to manage even if you sell in multiple countries.
In addition, you can now manage the United States (Amazon.com), Canada (Amazon.ca), and Mexico (Amazon.mx) all at once.
Amazon encourages global selling.
Amazon Europe's FBA is advanced and convenient
What makes Amazon Europe so advanced and convenient is that it is possible to ship to all Amazon Europe countries from one FBA warehouse
For example, even if a product is stored in Amazon's FBA warehouse in the UK, it can be listed on Amazon Germany.
Although there are regulations and laws that differ from country to country, this type of service may be possible precisely because of the EU.
However, if you are shipping across countries, such as from the UK to Germany, you should be careful as you may be required to pay taxes under VAT.
In addition, all listings for each country on Amazon Europe are centrally managed
Amazon Europe has a listing tool called Build International Listings
Compared to Amazon in the US and Amazon in Japan, Amazon Europe can be said to be a more advanced and much easier market to sell in.
Blue ocean becomes a barrier to entry with VAT
Amazon Europe is said to continue to grow, making it an e-commerce market with very high expectations.
However, the reality is that there are currently not that many entrants into cross-border e-commerce sellers.
If you search for cross-border e-commerce know-how, you will find that most of them are focused on sales in the United States and China.
Amazon Europe has very high expectations and is a large market, so why are there so few entrants?
This is probably because the existence of a value-added tax called VAT is complicated and is a barrier to entry for Amazon exports.
VAT (value added tax) is similar to consumption tax in Japan, and when selling in the European e-commerce market, VAT registration is required depending on the sales method.
Furthermore, this VAT registration can only be registered locally, so you will need to ask an agent to apply for it.
There are some cases where you do not need to register for VAT tax, but it is currently very difficult to understand as it has become complicated.
Therefore, I thought that I would be fine without registering, and even though VAT registration is required, I exported it to Amazon Europe.
There have also been reports of companies receiving additional taxes or penalties from local tax authorities.
In Europe, the handling of VAT has become extremely strict, and this difficulty in handling VAT can be considered to be a barrier to entry for Amazon export sales to Europe.
Thanks to the barrier to entry called VAT, the European Amazon market is said to be a blue ocean, and if you can enter it, you might be able to make a lot of money.
Compared to exporting to Western countries and Amazon, where there are many participating sellers, we can sell in a much larger market, so we can expect higher sales.
Please note that VAT is a complex system that cannot be understood just from the information posted on the internet.
You should consult a VAT expert and understand the laws and regulations of European countries before exporting to Amazon.
How to receive sales proceeds from Amazon export Germany/UK
If you are already exporting to Amazon in the US or Canada, you may know that a local overseas account is required for Amazon sales.
The currency for Amazon in the UK is the pound (£) , and for other countries the the euro (€) , so any overseas account that can be used by both parties is OK.
Payoneer and World First particularly famous overseas accounts for Amazon export .
All of them support pounds (£) and euros (€), so you can use them without any problems.
What you need for Amazon export Europe sales
What you need for sales is different when you use Amazon in the US and when you use Amazon in Europe.
Please check carefully in advance to ensure smooth Amazon export sales to Europe.
- Amazon seller account
- VAT registration
- EORI registration
- overseas bank account
Amazon seller account
As mentioned above, Amazon Europe allows you to create an account in any country and sell in other countries using a common account.
Therefore, if you create a seller account on Amazon UK or Amazon Germany, you can manage your sales with one seller account.
The process of creating a seller account is almost the same as when acquiring an account on Amazon Japan, so it is not difficult.
You can get an account in no time by entering the required information.
VAT registration
VAT is similar to Japan's consumption tax, and is a value-added tax that is levied when purchasing goods and services in countries such as the EU and Asia.
Therefore, if you want to export to Amazon in Europe, you will need to register for VAT.
If you do not complete this tax registration, you will not be able to export or list your products on Amazon.
It is clearly written in Amazon Europe's terms and conditions , so if you sell without registering for VAT, it will be a violation of the terms and your account may be suspended or frozen.
If you sell on Amazon in the UK or Germany, be sure to register for VAT.
EORI registration
EORI refers to the registration and identification number within the EU for companies importing or exporting goods to or from the EU.
" Economic Operators R egistration and Identification and when translated into Japanese, it is the Economic Registered Business Number
This EORI is required when passing through customs, so it must be registered.
overseas bank account
When selling on Amazon Europe, the proceeds must be received in an account that accepts local currency.
Therefore, if you want to export to Amazon in the UK or Germany, you will need an overseas account that can receive pounds or euros.
Even though it is an overseas account, there is no need to go to the country and create an account. an overseas account rental service that , you can receive sales proceeds without any problems.
In addition, if you are already using the overseas account rental service for exporting from Amazon in the US, there will be no problem using the same account.
Points to note when selling on Amazon export to Europe
Even when exporting to Amazon, there are different points to keep in mind when listing on Amazon US and Amazon Europe.
From here, we will explain the points to be aware of when exporting to Europe and selling on Amazon (Germany and UK).
- Strict enforcement of trademark rights, patent rights, design rights, etc.
- Knowledge about VAT (value added tax) is required
- Profit calculation that takes into account VAT registration and declaration costs is required.
- About VAT refund
- delivery delay
- Disclosure of seller information
Strict enforcement of trademark rights, patent rights, design rights, etc.
European Amazon has particularly strict laws and regulations regarding exclusive rights to reproduce and sell copyrighted materials.
you need to be more aware of trademark rights, patent rights, design rights, etc. than when selling in Japan, Europe, and America
Of course it protects the rights of brands and manufacturers, but there is a problem in that does not explicitly allow parallel imports
This creates an environment where it is easy for brands and manufacturers to file claims of intellectual property infringement, and in fact this is often the case.
Since we are selling on the same platform, Amazon, it is natural that we follow Amazon's own rules.
Of course, you must also comply with the laws and regulations of the country where you sell.
If you want to sell on Amazon in the UK or Germany, but are worried about violating laws or regulations, it's a good idea to get permission from the brand or manufacturer before listing.
Knowledge about VAT (value added tax) is required
VAT registration is required when selling on Amazon Europe
VAT is similar to consumption tax in Japan, but unless you have a thorough knowledge of it, you will almost certainly face VAT problems.
Also, please refrain from exporting through Amazon Europe without registering for VAT, as this may expose you to tax risks.
Amazon Europe requires sellers to register for VAT from December 2016.
As a result, sellers selling without VAT registration will be subject to stricter enforcement, and if discovered, their accounts will be suspended or frozen.
Depending on the sales method, there may be cases where VAT registration is not required by law, but registration is definitely required when exporting to Europe.
In order to enter the European market through Amazon export, it is necessary to register for VAT and acquire knowledge about VAT.
Profit calculation that takes into account VAT registration and declaration costs is required.
I found out that VAT registration is required in order to sell on Amazon in Europe such as the UK and Germany.
Furthermore, VAT registration and declaration costs are incurred , these must be taken into account when calculating the profits of exporting to Amazon to Europe.
What kind of costs are actually incurred for VAT registration? First, there is an initial registration fee paid to a local tax accountant corporation
In addition, will be charged each time a VAT declaration is filed
Therefore, when exporting to European Amazon countries such as the UK and Germany, you will not only have to pay the VAT itself, but also the fees associated with these VAT registration and declarations.
If you do not take these factors into account when calculating profits, you may end up in the red even though your products sell.
In addition, although all sellers are charged the same amount for the VAT itself, the VAT registration and declaration fees vary depending on which agency you use.
Since the frequency of declaration differs depending on the country, it is important to avoid spending as much money on VAT registration and declaration fees as possible.
When registering as a seller, it is important to decide in which country you register first.
This will significantly change the cost of VAT registration and declaration fees that will be incurred in the future, so be sure to think carefully before making your selection.
About VAT refund
VAT has the same role as consumption tax in Japan, so if you apply, you can get a refund of the amount you paid.
However, it is decided that you will receive the refund within 6 months to 1 year after applying, so if you are thinking of it in terms of a consumption tax refund, you will not have enough cash flow to make it in time, so please be careful.
delivery delay
It is not limited to exporting to Europe, but when exporting to Amazon, you must also consider the possibility of delivery delays
In particular, on Amazon, if an item is not shipped after the estimated shipping date, it will be counted as a shipping delay in the order defect rate.
If the rate of defective orders increases, there is a risk of account suspension or freezing, so shipping delays should be avoided as much as possible.
Countries such as the UK, Germany, and France are relatively free of delays, but are said to be more prone to delays,
It is a good idea to take measures such as allowing a longer lead time when listing products in anticipation of delays, or suspending listings in countries where delays are likely to occur.
Disclosure of seller information
Amazon requires disclosure of seller information
Since these items must be displayed correctly and without falsehood, personal information will be posted on the Amazon store page.
If you are afraid of posting personal information, it is a good idea to use a virtual office.
Even if you sell in Europe, you should be careful especially if you are exporting to Amazon as a side job.
How to sell in Europe using Amazon?
From here, we will explain in detail how to sell on Amazon Europe.
There are three main ways to sell in Europe (UK and Germany) using Amazon.
- How to ship directly from Japan by international mail (for beginners)
- How to use FBA warehouses to sell only in FBA countries (for beginners)
- How to sell across Europe using FBA warehouses (for intermediate users)
How to ship directly from Japan by international mail (for beginners)
Create a European Amazon seller account, and when we receive an order, we will ship the product directly from Japan by international mail.
With this sales method, there is no problem in selling without registering for VAT.
This is the easiest and easiest method as it will be shipped directly from Japan.
please note that this method may violate Amazon's terms and conditions
When shipping goods from Japan to a customer in Europe, the customer is obligated to pay import VAT.
This means that payments that you may not have expected at the time of purchase end up occurring when you receive the item.
If this happens, it may violate the "prohibited activities and conduct of sellers" listed in Amazon's terms and conditions.
Therefore, keep in mind that this method is gray and the risk of account freezing is very high.
How to use FBA warehouses to sell only in FBA countries (for beginners)
This is a method of registering an account in one European Amazon country and using FBA warehouses to sell only in the country where FBA is located.
For example, if you use Amazon Germany's FBA warehouse to sell to customers in Germany, you will be using the German FBA warehouse, so you will need to complete the VAT registration in Germany.
Please note that in Germany, if you register for VAT, you will be required to file a tax return.
If you use a UK FBA warehouse, you will need to complete VAT registration in the UK.
Unlike the above-mentioned self-shipping, if you use FBA, it is unlikely that you will violate Amazon's terms and conditions.
This is the safest method as you can sell while strictly following Amazon's terms and conditions.
With FBA sales, you can sell in any country where FBA is located, but it is better to first focus on selling in one country within Amazon Europe.
It would be a good idea to expand your sales channels to other countries once you are able to check sales trends and grasp trends in the European market.
If you are about to start exporting to Europe from Amazon, please use this as a reference.
How to sell across Europe using FBA warehouses (for intermediate users)
This is a method to open an Amazon Europe account, use an FBA warehouse in one country, and sell FBA products throughout Europe.
For example, you use Amazon Germany's FBA to sell to Amazon customers in Europe such as the UK and Franc.
With this sales method, as long as you register for VAT in the country where you use the FBA warehouse, you can sell by FBA in any country.
If you want to use an FBA warehouse in Germany, it is OK as long as you have completed German VAT registration.
Please note that the handling of VAT differs from country to country
By simply registering for VAT in one country, you will be able to sell across Europe, making it easier to sell in a larger market than the United States.
Europe has become a blue ocean due to the barrier of the VAT issue, so if you can sell in such an e-commerce market, you will be able to earn more money.
If you would like to further expand your European Amazon export sales, please give it a try.
However, the tax treatment will be more complicated than selling in only one country, so consult an expert before expanding your sales channels.
How to research Amazon export Europe sales
In particular, just because we are exporting to Europe does not mean that our research methods will change.
The research method is basically the same as when exporting to Europe and America .
European Amazon has particularly strict regulations regarding trademark rights, patent rights, design rights, etc., so be sure to omit products with such potential when doing research.
Countries with such strict regulations are not limited to European countries, so I would like to be careful in my daily research.
Please note that purchasing certificates are often required, so basically you will be purchasing wholesale.
How to ship to Amazon's FBA warehouse in Europe
The FBA shipping method is the same as shipping to FBA warehouses in the United States and Japan.
As for shipping to an FBA warehouse, you can use the standard shipping method to an FBA warehouse.
Therefore, when shipping to Amazon Europe's FBA warehouse, you will mainly use one of the following two methods.
- How to obtain a courier account and have the purchaser ship your items
- How to request shipment from an Amazon export agent
Products that sell on Amazon Export Europe
I think most of the people who export to Amazon Europe are already selling on Amazon America.
Hobby products that are popular in America are also popular in Europe, but other products such as audio equipment, stationery, and home appliances also sell well.
You don't have to be particular about the categories that sell, but if you're a beginner and don't know what to sell, you might be able to find it by researching the categories that are easy to sell.
lastly
We explained how to export to Europe and sell on Amazon, as well as important points to keep in mind when exporting.
The basic research and sales methods are the same as when exporting and selling to Amazon in the US, so there is nothing difficult.
Another big advantage is that once you register in one country, you can sell on Amazon in all of Europe.
However, as VAT is very complex and confusing, it is best to seek the help of an expert.
Ultimately, each country in Europe has slightly different strategies, so let's learn the know-how of each country.
