Expanding your business into Amazon Europe provides many opportunities for sellers and vendors. It provides the potential of reaching 28 EU countries while using Amazon’s logistic systems and tools.
Market Considerations
There is a lot to consider when branching out into Amazon EU. There are five European Marketplaces: UK, Germany, France, Italy, and Spain. Depending on what programs you select, you will need to consider distribution, fulfillment, applicable taxes, and local competition.
Additionally, because of Brexit, there are now more fees and paperwork involved with getting products into and out of the UK.
Fulfillment Options
FBA means you pay to store the product in Amazon fulfillment centers and Amazon handles fulfillment and customer service.
FBM means you must fulfill all orders and handle returns and customer service. When shipping out of the country, this can lead to some steep prices.
The Pan-EU scheme is a program allowing sellers to store inventory in Amazon fulfillment centers across Europe and be sold across the European marketplaces, but managed through one Amazon seller central account.
Preparations Needed for Amazon Europe
If you are planning to sell your products on Amazon Europe, you need to prepare some things before you start. Here are some of the steps you need to take:
Register for a seller account on Amazon Europe
You have the option to select either an individual or a professional plan depending on your sales volume and objectives.
Choose the countries where you want to sell your products
Decide on the countries where you intend to market your products. It is possible to sell in all five marketplaces (UK, Germany, France, Italy and Spain) using a single seller account. However it is important to ensure that you adhere to the laws and regulations of each country.
Set up your product listings and prices
You can use the Build International Listings tool to create and manage your listings across multiple marketplaces. You can also use the Amazon Currency Converter to receive payments in your local currency.
Fulfill your orders and provide customer service
You can also use the Amazon Seller App to manage your orders and inventory on the go. You need to provide customer service in the language of the marketplace where you sell your products.
Legal Requirements and Safety Rules in EU countries
If you’re selling products or services through Amazon in the EU it’s important to understand the taxation and regulations regarding health and safety for your business. Here are some key considerations:
Value added tax (VAT) is a consumption tax that is applied to goods and services, within the EU.
It’s necessary to register for VAT in the country where your inventory is stored, and charge VAT to your customers based on their country’s VAT rate. Additionally, when shipping your inventory to the EU, you’ll need to pay import VAT.
Please note that these guidelines ensure compliance with tax requirements and protect consumer well being, within the European Union. Amazon offers VAT services to help you comply with VAT obligations in different EU countries .
VAT Registration and Different VAT Rates
You can register for VAT numbers on the EU’s official VIES websites. Different countries apply different VAT rates however, so it may be in your best interest to hire a local accountant to ensure VAT compliance at the beginning.
You can also use Amazon’s VAT services for a monthly fee, but Amazon will then manage all VAT registration, filing, and submission providers.
Registering for Economic Operator Registration and Identification
This is necessary for importing or exporting goods out of the EU. You can apply for one on government websites.
Product safety and compliance
You have to ensure that your products meet the relevant standards and regulations in the EU, for product safety, labeling, packaging, and certification. It is essential to ensure that you offer reliable details regarding your products.
Additionally it is crucial to adhere to Amazon’s rules and regulations, for selling on their platform along with any criteria for product categories such as toys, electronics, cosmetics or food.
Also, it is your responsibility as a seller to ensure that your products meet all safety standards and comply with EU regulations regarding labeling, packaging, certification and overall product safety. Additionally you must also adhere to requirements for product categories such as toys, electronics, cosmetics or food items
Manufacturer/importer information
As, per the regulations in the EU, it is mandatory for Amazon sellers to disclose the name and address of the manufacturer or importer when selling their products. This requirement ensures that buyers have access to this information in case they encounter any issues with the product..
Consumer rights cover various aspects of online shopping, such as delivery, returns, refunds, warranties, and complaints
When selling on Amazon, it is crucial to respect your customers rights. This includes providing them with customer service and adhering to their rights regarding delivery, returns, refunds, warranties and addressing any complaints they may have. If you sell internationally outside of the EU region you should also familiarize yourself with consumer rules, in those countries.
Payment Options
While you can pay for services like PayPal, you can still have direct deposit into your bank account, and the bank does not have to be located in the EU.
Product Pricing
Considering Additional Costs
- VAT is the Value Added Tax, which is both payable upon import, and included in the sales price.
- The costs of shipping should be factored into the cost of the product if utilizing FBA, since Amazon cannot fulfill orders to the European marketplace with inventory stored in the US
- The costs of customs should also be considered
Analyzing Competition’s Pricing for Similar Products
Like selling anywhere else in the world, doing market research to determine the costs of similar products will need to factor into your pricing structure.
Language Considerations
Amazon requires that listings as well as customer support be offered in the local language of the marketplace.
Using Amazon’s Build International Listings Tool
Amazon regularly translates listings from one language to another. Additionally, FBA means Amazon is handling customer service.
Importance of Native Translators for High-Quality Translation
For some items, paying a translator to translate the listing page will offer a more authentic depiction of the product, which can lead to more sales.
Optimization and Market Entry
There are several factors that affect the performance of a listing, such as keywords, images, price, reviews, and fulfillment options.
To maximize the performance of a listing in the market, sellers should conduct research on the local demand, competition and regulations. Additionally, it is crucial for them to tailor their listing to the language, culture and preferences of the target audience. By taking these steps they can enhance their visibility, boost conversions and drive sales in markets.
FAQs
What countries can you sell on Amazon Europe?
A short list of countries you can sell to through Amazon EU includes: Germany, France, Italy, Spain, Netherlands, Sweden, Poland, and Belgium.
Is Amazon FBA possible in Europe?
Yes. Amazon FBA can be a profitable and convenient way to sell products in Europe.
Which European country is best for Amazon?
There isn’t a cut answer to determine which European country is the choice, for Amazon as several factors come into play. Each country has its advantages and drawbacks.
These factors encompass the size and expansion of the e-commerce market, the accessibility and expense of labor, the regulatory landscape and tax policies, the infrastructure and transportation network, as consumer preferences and behavior patterns.
Conclusion
For people living in the EU, selling on Amazon EU is a breeze. It is also completely possible to branch out into selling in the EU to expand the viable market.
Expanding your market and reaching customers is an opportunity for online sellers who are looking to sell on Amazon Europe.
To get started with selling on Amazon Europe, the first step is to register your account. After that you can choose the marketplace where you want to sell and list your products accordingly.
Once your listings are up, it’s important to optimize them effectively, manage your inventory, fulfill orders promptly and consistently provide top notch customer service.
By following these steps, you can sell on Amazon Europe successfully and achieve your business goals.
