Introduction
Starting UK Business and Amazon FBA Account a service can be a lucrative venture. This guide will walk you through the step-by-step process, from business registration to setting up your Amazon Seller account.
Starting UK Business and Amazon FBA Account Setting the Foundation: Business Registration
Choosing Your Business Address
One of the initial decisions you’ll face is whether to use your home address or opt for a virtual address. While using your home address is permissible, it’s worth considering a virtual address for added privacy and professionalism.
Document Requirements for Amazon
To register on Amazon as a seller, you’ll need a limited company and specific documents for verification. These include a valid UK driving license and proof of address. Ensuring you have these documents in order will streamline the registration process.
Starting UK Business and Amazon FBA Account Registering a Limited Company: Simplifying Liability
Establishing a limited company is not only a legal requirement but also aligns with Amazon’s terms and conditions. This structure limits your personal liability and provides a solid foundation for your business.
Choosing a Registration Service
Opting for a service like “osub” can expedite the registration process. It involves a nominal cost of £12 to Company House and an additional £12 to osub. This streamlined approach is recommended for efficiency.
Starting UK Business and Amazon FBA Account Direct Registration with Company House
While using a service like “osub” is convenient, registering directly on Company House’s website is also an option. However, it may entail a more complex process, and you’ll need to navigate their interface independently.
Starting UK Business and Amazon FBA Account Navigating Amazon: Account Setup
Selecting Your Selling Plan
Amazon offers two selling plans: Personal and Professional. While the Personal plan is suitable for casual sellers, we recommend the Professional plan for those seeking potential cost savings in the long run.
Starting UK Business and Amazon FBA Account Understanding VAT Requirements
UK residents generating less than £85,000 in annual sales are exempt from obtaining a VAT number initially. Non-UK residents, on the other hand, are required to have a VAT number to sell on Amazon.
Fees and Financial Considerations
Various fees come into play when utilizing Amazon’s FBA service. These include referral fees, fulfillment method charges, and storage/shipping costs. Understanding these financial aspects is crucial for making informed business decisions.
Starting UK Business and Amazon FBA Account Setting Up Your Amazon Seller Account
Choosing the Right Platform
It’s imperative to register on Amazon Seller Central, the dedicated platform for sellers, rather than the customer site. This will grant you access to the tools and features necessary for managing your business effectively.
Email Verification
You can use any email provider, such as Gmail or Yahoo, to create your Amazon Seller account. This flexibility ensures you can use an email service that you’re comfortable with.
Document Submission for Verification
To finalize your account setup, you’ll need to provide certain documents for verification. This typically includes a valid ID, a recent bank statement, and a chargeable credit card. Ensuring these documents are readily available will expedite the process.
Starting UK Business and Amazon FBA Account Completing Your Profile: Business Details
Providing Essential Information
Fill in your business location, select the appropriate type (limited company), and enter your chosen business name. Accuracy and consistency in this section are vital for compliance.
Preparing for Verification Call
Amazon may conduct a verification call to confirm your details. Be sure to have your phone on hand and be prepared to provide any additional information requested during the call.
Selecting Best Selling Model
First you need to decide on which Amazon selling model you want to start with..
There are alot of models to start selling on Amazon.
Like Amazon Private Label, Wholesale, Arbitrage.
✅For Wholesale you need about $2K plus a registered company, resale certificate, website and professional email. We get reselling rights from a distributor or brand in your home country and sell their items for a profit.
✅For Arbitrage you need upto $1000. You need to find discounted online products on online retailers and Walmart etc. Becareful to check IP complaints and required approvals beforehand.
✅For Private Label, you can get started in $8000+.. but first you need to have a high margin, high demand, low competition product and then source from China.
Having said that, it is very important to find the right product and take account several factors like IP complaints, trademarks, seasonality, competition, form and weight etc.
Which Selling Model is Recommended?
Arbitrage is recommended if you have less budget to start with..like $500 to 1000
Wholesale is recommended if you have LLC and resale certificate
Arbitrage and Wholesale are pretty much alike where you jump on already listed items and resell name branded products
Private Label is recommended if you want to create your own brand and looking to source from China
In long run, private label product will have more life. Arbitrage and Wholesale products have shorter lifespan or they become saturated quickly, or Amazon will jump on the listing or sellers will tank the price leaving others in loss.
I will highly recommend to sell a mid to high ticket product in private label. Also saturation and consistent demand is the most important part to take care in private label.
Conclusion
Embarking on the journey of starting a UK business and integrating it with an Amazon FBA account can be a game-changer for aspiring entrepreneurs.
By following this comprehensive guide, you’ll navigate the process with confidence and set the stage for a successful venture.
FAQs
1. Do I need a VAT number if I’m a UK resident with sales under £85,000 annually?
No, if your sales remain below £85,000 per year, you are not required to obtain a VAT number initially. However, it’s advisable to monitor your sales and be prepared to register for VAT if your business surpasses this threshold.
2. Can I change my business address after registration?
Yes, you can update your business address after registration. Simply log in to your Amazon Seller Central account, navigate to the settings, and make the necessary changes. Ensure the new address is accurate and complies with Amazon’s guidelines.
3. What happens if I don’t provide the required documents for verification?
Failure to provide the necessary documents for verification can result in a suspension of your Amazon Seller account. It’s crucial to ensure all required documents are submitted promptly to avoid any interruptions in your business operations.
Read our full guide here: Private Labeling Secrets 2024: Unraveling the Secrets to Success
