How to start selling on Amazon UK: Everything about EORI and VAT numbers

If you’ve finally decided to turn your brick-and-mortar store into an online business, you will want to know how to start selling on Amazon UK. 

With the UK ecommerce market projected to have an annual average growth rate of 12.6% by 2025, expanding your business is a no-brainer. 

As the founder of Forceget, Burak had stated, “Amazon is encouraging their brands and sellers to go to different marketplaces such as Canada, UK, Europe, Australia followed closed by Germany, then France has the largest storefronts on Amazon, to gain additional presence for your brand.”

However, trying to understand how international trade works, especially when it comes to tax can somehow feel challenging 


Is It Complicated To Start Selling In Amazon UK?

Contrary to popular belief, selling on Amazon UK doesn’t have to be an overwhelming experience. 

Tom Meek, hosted by Forceget’s founder Burak had stated, “Ultimately, the answer is no [it’s not complicated]. You need to work with some strategic partners…to be compliant and be as efficient and profitable as possible.”

Understanding regulations and logistics like international shipments demands some research. However, Amazon’s seller resources and available support systems assist in the process, not to mention your reliable supply chain and logistics provider, Forceget. 

Following the established procedures and aligning with Amazon’s guidelines can help you set up your online store and reach UK customers efficiently, further assisting you in your global expansion.

Is It The Right Time To Expand In Amazon UK?

The simple answer is yes. 

As mentioned, the UK ecommerce market is booming, with a population that is growing specifically in the digital community, making it the perfect opportunity to cater to your online audience and for online shopping. 

Amazon is considered to dominate the online marketplace in the UK, accounting for almost a third of all online sales.  

Where To Start?

“So much of the global population is based in Europe and the UK specifically being a large English-speaking market, it’s a great opportunity for US sellers to expand their business…it’s not just about the UK market, it’s about the gateway to Europe as well”  stated Burak. 

To simplify the process for first-time sellers, here’s a step-by-step guide on how to sell on Amazon UK:and gain an advantage in growing globally. 

Choose Your Selling Plan

Based on your selling point, Amazon offers two options. You can either choose individual or professional. 

Individual Plan: Ideal for sellers with low-volume expectations. This plan comes with basic selling features and is perfect for testing the waters or focusing on niche products. 

Professional Plan: Designed for ambitious sellers or businesses anticipating higher sales volumes. This plan offers advanced features like bulk product uploads, detailed sales reports, and API access, scaling your business efficiently. 

Choose the plan that best aligns with your projected sales volume. 

Register for A Seller Account

Opening a seller account marks the start of your Amazon UK store. To register, you’ll need the following: 

  • Business Information: Company name, address, contact details, and legal paperwork. 
  • Verification Documents: Proof of identity (passport or driver’s license) and, if possible, business registration details. 
  • Payment Information: A valid credit card or bank account is needed to receive your sales proceeds. 

Listing Your Products

Creating accurate and compelling product listings is crucial for attracting customers and boosting sales. 

Provide detailed product descriptions, clear images, and relevant specifications. Ensure all information presented is accurate and compliant with Amazon’s guidelines. 

Use relevant keywords using Amazon’s keyword research tools for guidance throughout your listings to help customers discover your products through search. 

Align your product listings, sizes, weight restrictions, prohibited items, and image requirements to Amazon’s listing guidelines. 

Deciding on FulFillment

Are you considering handling order fulfillment and shipping or using Amazon FBA? 

Amazon FBA, or Fulfillment by Amazon, is a program that allows you the opportunity to outsource orders.

Fulfillment by Yourself: Provides control over packaging and branding but requires managing inventory, packing, and shipping yourself. 

Fulfillment by Amazon (FBA): Amazon stores, packs, ships, and provides customer service for your products, freeing you to focus on other aspects of your business.

What Is VAT?

Value Added Tax, or VAT is a sales tax application for most goods and services in the UK. 

Basically, when you sell a product, you charge the customer VAT in addition to the base price set. You then collect this VAT and offer it to the UK government. 

If you register for  UK VAT, you can reclaim the VAT you paid on certain business purchases, improving cash flow, as well as signaling professionalism and legitimacy to UK customers. 

Should I Register A Company In The UK To Get VAT? 

Whether you need a VAT number depends on your business structure and sales volume. 

The following are reasons to register: 

If your UK sales exceed £85,000 per year, then you should definitely register for VAT. Also, using Amazon’s FBA service in the UK automatically triggers VAT registration, regardless of your sales volume. 

Registering also allows you to recover VAT paid on eligible business purchases, improving cash flow. 

Being VAT-registered can place your business as professional and established to UK customers, potentially boosting trust and sales. 

What is the VAT percentage in the UK?

The standard rate of VAT in the UK is 20%

This means that for most goods and services sold in the UK, businesses must charge an additional 20% on top of the base price, after which it is collected by the business and remitted to the UK government. 

Tom Meek (Taxually) stated that: “Tax can be quite a confusing point and can put a lot of people off. But the main reason people are expanding is because you’re selling to tens or hundreds of millions of more people and diversifying your risk. It’s a big market out there, and a lot of people are scared, mainly due to taxes. There are companies like Taxually that take all of that off you.”

What Is An EORI Number?

An EORI number is essential for identifying your business in international trade transactions. 

Every business importing or exporting products with a combined value exceeding £1,000 per month needs an EORI number.

So, if you ship to the UK, include your UK EORI number on all customs declarations and shipping documents aligning with Amazon’s global logistics regulations.

How To Ship To The UK?

Choose the best shipping solution for your needs based on the following factors:

  • Package Size and Weight: Different carriers have varying limitations. Consider Amazon FBA if you require warehousing and fulfillment in the UK.
  • Cost: Compare rates from postal services, couriers, and freight forwarders like Forceget for larger shipments. Remember to factor in potential import duties and VAT.
  • Speed: Prioritize delivery speed based on your product and customer expectations. Express options are available but come at a cost. 
  • Tracking and Insurance: Make sure your chosen service offers tracking and insurance for safe measures. 

Forceget: Amazon UK Freight Forwarders

So what are the ways of fulfilling in the UK? 

From air freight to ocean freight, Forceget offers tailored solutions for your cargo, ensuring efficient and cost-effective delivery to the UK. Forceget eliminates the hassle of FBA fulfillment with our door-to-door delivery directly into Amazon centers. 

Real-time tracking, shipment consolidation options, and data-driven insights offer you complete transparency and control over your logistics, helping you make informed decisions.

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