Selling in Amazon UK is worth exploring. Even if a lot of American sellers don’t want to jump through the hoops to sell in international marketplaces.
Helps people grow their Amazon e-commerce businesses internationally.
Also the host of a podcast and Youtube Channel with the same name.
Does a launch service for people – helps people figure things out.
People in the USA are often afraid.
Amazon world tour from US perspective
If you’re already in Europe, it makes sense!
If you’re in North America, it seems like an intimidating thing!
Maybe start in Canada if you’re based in the USA.
When you’ve launched on Amazon.com
Kevin did it early on – 1 SKU, 4 coming in, registered for Amazon Canada.
Tried Etsy, Shopify etc.
We think in terms of diversification but Amazon usually gives more growth.
He tacked on 30% revenue with Canada.
Shopify is all about affordable traffic.
Forms and money!
If someone has a driver’s licence and a passport and has passed 6th Grade maths.
The forms to get a VAT (Europe) or GSTN (Canada) is no more complex than that.
The general flow of how you register for things is pretty similar when selling in Amazon UK.
The symbol for the pound or dollars looks different, but it’s just numbers.
His sister overseas Kindergarten math.
If you asked a child, “Say $1 in the US=£0.75 So what would $20 be?”.
That is literally 6th Grade Math.
Sales tax and income tax. Generally speaking, if you have a company in your home company, you can usually register in the other companies.
You’ll owe the income tax based on sales to your home government when selling in Amazon UK.
And the sales tax is owed to the country the sales are made in.
In Canada, it’s just once a year, you file and both countries US and Canada, you add in sales tax to the sales price.
How do you deal with VAT personally?
Americans mostly go into the store, buy things -whatever it says on the shelves – we will pay 6 or 8% on top of that. They are used to that.
If you buy an $8 beer, included in that is some form of sales tax – if you buy a beer for $8, that technically is not $8 that the stadium keeps when selling in Amazon UK.
You should think of it as “everything is like buying something in a stadium.”
If there is cash involved, the retailer just adds sales tax to keep it simple.
If you go to the doctor, you’re not going to go to a foot doctor if you need heart surgery.
Your accountant is similar.
Kevin uses a CPA (Certified Public Accountant) for most stuff.
Uses Avask to handle VAT.
Uses an accountant who understands the Canadian system (based in Texas)
Fear is that it will cost you a lot of money to do.
Amazon talked Kevin into it!
The simplest way to say if you have VAT requirements, if you’re outside Europe and you’re shipping goods in from outside Europe and you’re STORING goods there, you’re required to register for VAT.
You could send in your goods into the UK.
You pay at the border to UK government.
Then if you had the goods sold in Italy, Amazon can ship from the UK to Italian customer.
Amazon wants to be able to send goods to near the end customer because of the quick delivery.
If you store in a European country, you’re responsible for VAT.
You need to be registered in 7 countries (the 5 marketplaces plus Poland and the Czech Republic)
In France, Poland, Czech Republic, you have to file every month.
In Europe, it’s about where the product is dispatched from (shipped from) – rather than where the consumer lives (US way of doing things).
The cost of the Pan European VAT registrations is high and it’s complex.
In the US “Scheme” means they are about to get arrested!
In the UK, it means the method of accounting.
Say you’re selling a product for £12, so you would take £10 price, £2 is the VAT (20% more), then you owe the £2 to the government, minus what you paid at the border and maybe prep company costs.
Possibly VAT on your PPC (Amazon ads).
But the flat rate scheme (under the right SIC code) can mean you only owe 7.5%
The USA is generally the most competitive marketplace.
That’s where everybody is going after.
A lot of North American sellers don’t want to jump through the hoops to sell in international marketplaces.
But once you’ve factored in VAT, your margins might be less – but you’re taking MONEY to the bank – you’re casting a wider net, so you’ll catch more fish!
UK or Canadian customers don’t go on Amazon.com
If you live in the UK, you could shop on Amazon.com, but it would take 2 weeks to get the products.
People do all these giveaways in the USA – but sometimes you just turn on PPC and go in other countries. Launching a product can be a lot easier.
Amazon.com reviews also carry over generally – it seems mixed whether it shows up.
Once you get reviews in the home country, they will take precedence.
People in other countries are used to seeing amazon.com reviews
amazingfba.com/checklist forward to? TBC by the guest.
This is a helpful checklist for international expansion.
It walks through step by step what to do to sell in international marketplaces.
Print it out! It’s about 16 pages – it’s like a mini-guide.
On the thank you page – if interested, can apply for a free 30-minute strategy session.