Tips for Amazon Sellers in the EU

If there’s one marketplace every European knows, it is Amazon. Covering vast geography and popular in the UK and Germany, Amazon collects one of the largest online selling revenue and volume shares. Since Amazon’s popularity is still growing, we have prepared a set of tips for European and foreign sellers that want to make the most of their presence on Amazon.

But first, let’s take a look at the main reason for joining Amazon Europe:

1. More customers

Last year, European branches of Amazon operating in 28 countries generated over EUR 51 Bn. This means that access to millions of Europeans can be a significant boost to any online seller.

2. Global ratings

If you are already selling on Amazon, you know that reviews are the most important aspect of success, and all sellers depend on their number and quality. International Amazon accounts allow sellers to transfer existing ratings, thus helping them build on older accounts.

3. FBA scheme

Fulfilment by Amazon gives sellers the opportunity to use Amazon’s warehouses, expanding their geography without worrying about warehousing or shipping options.

And here are some tips for your growth on Amazon

Expanding your online business

If you already have an Amazon store in a non-European market, your operations will not dramatically change, but there are still some serious aspects to keep in mind.

Firstly, your business expansion should start with thorough market research as trends and customer habits in Europe might be dramatically different from those in your home country. Also, Europe is a very heterogenous (diverse) market, so take that into account when considering your next steps.

Opening an account in Amazon EU

To begin selling in the European Amazon markets, a company has to set up a new seller account, following Amazon’s general rules. Just like when opening any other account, you will have to fill in information like company details, contacts, bank information, product identifiers, VAT registration number and other tax-related information.

Make sure that all accounts you own follow the Amazon terms and regulations so that your activities are not suspended and continue in all markets.

Localisation

Since the European Union itself has 24 official languages, the multilinguistic aspect is very important on Amazon EU, too. According to various sellers’ experiences, it is worth adapting the content and translating it to target languages, communicating in consumers’ native languages accordingly. Do not forget to localise your keywords in order to leverage this promotion feature.

VAT compliance

Amazon sellers have to report VAT in countries where their customers are located. However, a new, deemed supplier model is currently applied, lifting the responsibility of tax remittance from the sellers and transferring it to the platforms. Make sure you understand which VAT reporting requirements you have to follow.

Product sponsoring

Sponsored ad campaigns are as important on Amazon EU as on every other online marketplace. These ads allow your listings to be featured and reach more potential customers, even when the competition is fierce.

In summary

Amazon EU opens many new opportunities for sellers all over the world. Following your intuition, together with Amazon’s terms and best practices in the market, can make your online store on Amazon attract millions of new customers and generate revenue. Among other essential steps in managing your store is tax compliance. It helps you keep your accounts secure from closing and receiving fines from national tax authorities.

For the latest updates on Amazon ending its Call-Off Stock program on August 1, 2024, which impacts VAT registration and inventory management for sellers in the EU, you can read the full article on the changes and their implications here.