Amazon’s platform is the undisputed leader in online sales with global reach amounting to over 5.2 billion visits monthly and estimated generated annual sales of over $450 billion. In total, Amazon consists of 18 local marketplaces, which you can use simultaneously. The dedicated platform for the Polish market has also been available since 2021. So how can we sell on Amazon?
Amazon offers more opportunities than platforms such as eBay or Allegro, is growing faster, and evokes positive associations with customers. Therefore, the question is not “is it worth selling there?” but rather “how to sell there?” After all, selling on Amazon is not the easiest thing to do!
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How to sell on Amazon
The first step is of course to set up your account. What are requirements to sell on Amazon?
Registration and plan selection
Often you need to be patient – Amazon may lock your account when it is unable to verify your documents.
Problems most often relate to:
Once the account has been verified, you will need to provide all your billing information. The seller’s VAT number must be uploaded in order for Amazon to determine how to account for tax on the products sold.
The VAT-OSS procedure is helpful for sales in the FBM model. With this procedure, you will only need to register for VAT in the country from which the goods are being shipped. This greatly simplifies the filing of returns and the making of payments – everything is done in one office.
Step 1: Selection of Amazon sales model
Once you have set up and correctly verified your account, you can move on to conduct sales.
One of the first issues to consider is the choice of sales plan. Sellers can choose between an individual and a professional plan.
Step 2: Selection of logistics model – Amazon FBA and FBM
A significant issue is the choice of the logistics model in which the seller will offer its products. This decision should be made before the listing is implemented.
The choices are Amazon FBA – Fullfilment by Amazon and FBM – Fullfilment by Merchant.
The sales model can be changed at any time by switching from FBM to FBA and vice versa. It is also possible to use a mixed model, i.e. place some products in Amazon’s logistics centres and ship some products from your own warehouse.
Interesting fact: Products sold through the FBA program are labelled Prime. The “Prime” filter is the most frequently used filter on the German marketplace on Amazon.
Fees in the FBA model can sometimes be high, but this depends greatly on the product being sold. Do you wonder what the FBA costs are going to be in case of your company?
Contact us, and we will help you to calculate which option is more profitable in your case!
Step 3: Preparation of images and listings
Every product must have images and a description that meet certain requirements. Amazon is committed to delivering quality and clear communication of information to the customer, and among the requirements are:
Amazon is governed by its own rules, and failure to follow these rules can result in your account being locked.
You need to remember that:
Unfortunately, natural persons cannot sell on Amazon.
In theory yes – as from any other European country. We are obliged, among other things, to register for VAT in each of the countries in which we want to sell. In addition, it will be necessary to have a barcode for each product.
It is worth remembering that by selling from Poland, we are not able to deliver goods in a short period of time. Due to this, we are losing a lot of orders to sellers from e.g. Germany. However, you can try to have shorter shipping times available. Not sure how to do this? Contact us >>
See webinar with CEO Gonito: Damian Wiszowaty, who talks about how to sell on Amazon / Amazon sales
Despite the numerous requirements, selling on Amazon is very profitable. It is the largest e- commerce platform in the world and has helped to develop thousands of businesses on a global scale. Amazon is associated with high quality, a solid approach to customer service, and fast order fulfilment.
Do you want to start selling on Amazon? We can help you with this – contact us and start selling with professional support!