How to Sell Internationally on Amazon from the UK?

Why Should UK Citizens Choose Amazon US 

UK citizens may consider to sell internationally on Amazon from UK because of the incredible opportunities the American market offers. The United States is home to one of the largest e-commerce markets in the world, with millions of active shoppers looking for a wide variety of products. This vast customer base allows sellers to tap into a high demand for goods, often resulting in higher sales volumes compared to the UK market.

Additionally, product categories that may be saturated in the UK often have more potential in the US, which gives sellers a chance to diversify and test new strategies. The exchange rate can also be beneficial, allowing UK sellers to maximize their earnings when converting US dollars back to pounds. 

Lastly, Amazon US provides various programs and tools, like Fulfillment by Amazon (FBA), to simplify international selling and logistics, making it easier for UK-based businesses to scale across borders.

Amazon.com vs. Amazon.co.uk: Pros & Cons 

Before you decide to sell on Amazon US from UK, you must consider the pros and cons of this process to make an informed decision. Here are the advantages and challenges of selling on Amazon US from the UK: 

Pros:

• Access to a Massive Market: Amazon US is the largest of Amazon’s marketplaces, with over 112 million Prime members and millions of active shoppers. This provides UK sellers with immense potential for higher sales volumes and increased visibility.
• Strong Earning Potential: Many people that sell on Amazon US from UK report significant earnings. About 45% of US-based sellers have earned over $250,000 in lifetime sales, and 75% make more than $1,000 in monthly revenue. This makes the US market highly lucrative compared to other regions.
• Simplified Logistics with Amazon FBA: Amazon’s Fulfillment by Amazon (FBA) program is a major advantage. It allows sellers to store their inventory in Amazon’s warehouses. Amazon then handles picking, packing, and shipping, simplifying the logistics for international sellers and reducing shipping complexities.
• Fewer Language Barriers and Tax Complications: Unlike the European Amazon Network, which requires listings in multiple languages and self-managed VAT, selling in the US is more straightforward. Sellers only need to list in English, and tax management primarily involves collecting sales tax from buyers, making operations easier.
• Low Barriers to Entry: Starting a business on Amazon US is relatively simple. Around 60% of Amazon US sellers get their business up and running in less than three months, and 67% see profits within their first year. This makes it appealing for new and experienced sellers.

Cons:

• Exchange Rate Challenges: Conducting business internationally means dealing with currency conversions, which come with fees and commissions. Fluctuating exchange rates can impact your profit margins, so you must manage currency exchanges wisely.
• Potential Complications with Payments: Since revenue is generated in US dollars and may need to be converted to pounds, sellers must be strategic to avoid significant financial losses. 

Fulfillment Methods for Amazon US

When you want to sell on Amazon US from UK, you can choose from a few different fulfillment methods to manage how your products are stored, packed, and shipped to customers:

Fulfillment by Amazon (FBA)

This method allows you to send your inventory directly to Amazon’s fulfillment centers in the US. Once your products are stored there, Amazon handles everything: picking, packing, shipping, and even customer service and returns. FBA is particularly convenient for international sellers because it simplifies logistics and ensures fast, reliable shipping for customers. However, there are fees associated with storage and fulfillment that sellers need to factor into their costs.

Fulfillment by Merchant (FBM)

With FBM, you as the seller are responsible for storing your inventory and managing the shipping process. When a customer places an order, you handle the packaging, shipping, and any necessary customer service. FBM gives sellers more control over their fulfillment process and can be cost-effective for those with efficient logistics. However, it requires more effort and resources, especially for international shipping to the US.

Seller Fulfilled Prime (SFP)

This option is a hybrid model that allows you to fulfill orders yourself while still offering Amazon Prime benefits, like two-day shipping. To use SFP when you sell on Amazon US from UK, you must meet Amazon’s strict shipping and performance standards, and it’s often used by sellers who can manage fast and reliable delivery. While it gives you the advantage of reaching Prime members, it demands robust logistics capabilities.

Financial Accounts Need for Start Selling on Amazon US 

To sell on Amazon US from UK, you’ll need to have your financial accounts set up to handle international transactions smoothly. Here’s what you should consider:

US Dollar Bank Account or Multi-Currency Account

Since Amazon US pays out in US dollars, having a bank account that can receive payments in USD without high conversion fees is crucial. A multi-currency account, like those offered by Wise Business or Payoneer, can be very helpful. It allows you to hold and convert currencies at favorable exchange rates, minimizing fees when transferring your earnings to a UK account.

Credit or Debit Card

Amazon requires sellers to have a valid credit or debit card on file for payment processing and to cover fees. When you want to sell on Amazon US from UK, ensure the card allows international transactions, as Amazon will charge this card for monthly subscription fees (if you choose a Professional selling plan) and other applicable charges.

Tax Identification Information

You’ll need to provide accurate tax information for both the UK and the US to comply with regulations. Amazon may request details like your UK VAT number and personal or business tax identification numbers. Additionally, depending on your business structure, you may need to fill out tax forms such as the W-8BEN to confirm your status as a non-US resident for tax purposes.

How to Set Up Amazon US Seller Account 

To set up an Amazon US seller account and sell on Amazon US from UK, follow these steps and make sure you check out our guide on how to sell internationally on Amazon:

1. Create a New Account for North America

If you’re already selling on Amazon UK or other European marketplaces, you’ll know that your account is unified across European regions. However, to sell on Amazon US, you need a separate account because North American marketplaces (Amazon US, Canada, and Mexico) are not linked to the European system. Note that this account will still be connected to your existing profile but will function independently. 

2. Sign Up on Amazon US

1. Visit the Amazon US Seller Central and select “Register Now.” It can be quite helpful to know how to use Amazon seller central before using this platform. 
2. Choose the type of seller plan that suits your business needs. For professional sellers, the subscription fee is $39.99 per month. Keep in mind that this fee is separate from your European account.
3. Go through the verification process to sell on Amazon US from UK. You’ll need to provide various documents for verification. These typically include:

• Proof of ID (such as a passport or driver’s license)
• Company registration certificate (if applicable)
• Bank account details and a credit or debit card that supports international transactions
• Accurate and up-to-date information about your business and tax details

If you already have a verified Amazon UK account, you can expedite this process by linking your existing account. This will likely simplify verification, as Amazon can refer to your UK data, making the process quicker. Be prepared to provide any additional documentation if requested.

3. Set Up Brand Registry (if applicable)

If you have a Brand Registry account in the UK, you don’t need to start from scratch in the US. You can add your US account as an additional user to your existing Brand Registry. If you’re registering for the first time, you’ll need to provide your trademark information, logo, and product images. The good news is that Amazon accepts UK trademarks, so there’s no need to register a separate trademark in the US.

4. Ensure All Information is Accurate

Accuracy is crucial when setting up your account. Double-check that your documents are up-to-date and that there are no inconsistencies. Playing by the rules and providing legitimate information will make the process smoother and help you avoid delays.

Where Can You Find Inventory in the UK ?

Finding inventory to sell on Amazon US from UK requires sourcing products from reliable and profitable channels and depends on your business model. Here are some common options:

• For Retail Arbitrage: This involves buying discounted or clearance products from local retail stores, such as Tesco, ASDA, or Argos, and reselling them for a profit on Amazon. 
• For Online Arbitrage: Similar to retail arbitrage, but done online. You can browse UK-based e-commerce websites like John Lewis, Currys, or Boots to find products at a lower cost and ship them directly to an Amazon fulfillment center. You can also find discounted or surplus stock from liquidation sales and auctions. Websites like B-Stock or liquidation auctions in your area may have items that can be resold profitably on Amazon.
• For Wholesale: Partnering with UK-based wholesalers allows you to buy products in bulk at lower prices. Websites like WholesaleDeals.co.uk or The Wholesaler UK can connect you with suppliers. You can negotiate deals and order larger quantities.
• For Private Labeling: If you want to sell unique products, consider contacting manufacturers directly to produce your items under a private label. This method allows you to customize products and create a brand, making your products more competitive on Amazon. 

Keep in mind that some Amazon categories will be “gated” or restricted, requiring approval to sell. For these categories, make sure you know how to get ungated on Amazon UK. 

How to Ship Inventories from the UK to Amazon Warehouses? 

To ship inventory from the UK to Amazon warehouses in the US and sell on Amazon US from UK, follow these steps:

1. Choose a Reliable Shipping Method

Since Amazon cannot act as the importer or clear customs for you, you’ll need to use a third-party shipping company or freight forwarder. Companies like DHL, UPS, or specialized freight forwarders (such as the Woodland Group) can help with customs clearance and ensure your goods are delivered to Amazon’s fulfillment centers.

2. Arrange Import and Customs Clearance

Ensure the shipping company offers services on DDP (Delivered Duty Paid) terms, which means they handle everything, including customs duties and registration as the Importer of Record in the US. This can simplify the process for you.

You’ll need to provide the shipping company with a Power of Attorney, allowing them to act on your behalf to manage customs paperwork.

3. Label and Prepare Your Inventory

When you want to sell on Amazon US from UK, your inventory must meet Amazon’s requirements, including proper labeling and packaging. You can either have your supplier label the items correctly or ask your freight forwarder to handle this.

If shipping from China to the US directly, consider a pre-shipment inspection to ensure quality and compliance with Amazon’s requirements.

4. Store Inventory Strategically

The US is a vast country, so it’s wise to store inventory in a location that best serves your target customer base. Options include Amazon’s warehouses (if using FBA), or third-party fulfillment centers like ShipBob or FedEx warehouses.

Bulk shipping and local storage in the US will minimize shipping times and costs, making your products more appealing to US customers.

5. Use Fulfillment by Amazon (FBA)

If you prefer a hassle-free option to sell on Amazon US from UK, use Fulfillment by Amazon. With FBA, Amazon will store, pick, pack, and ship your products. They also handle returns and ensure your products are eligible for Prime benefits, such as expedited shipping, which can increase sales.

Ensure that your products are shipped according to Amazon’s standards to avoid any penalties.

6. Consider Duties and Import Costs

In the US, there is no VAT, but you will need to pay import duties, typically around 3% of the goods’ value. Your shipping company can provide detailed information on these fees and invoice you accordingly.

How to Sell on Amazon.Com from the UK With OABeans ?

Selling on Amazon.com from the UK becomes significantly easier with OABeans, a trusted provider of curated sourcing lists that cater to multiple marketplaces, including the UK, US, and Canada. OABeans uses a team of experts equipped with specialized software and years of online arbitrage experience to handpick quality leads. They source products from over 1200 websites in the US and more than 360 websites in the UK. Each lead is meticulously vetted against essential criteria like IP complaints, sales rank, price history, and profitability, making sure Amazon sellers receive top-notch opportunities.

When you want to sell on Amazon US from UK, you can use OABeans’ US leads and streamline your process by having inventory sent directly from US suppliers to Amazon US warehouses using Fulfillment by Amazon (FBA). This simplifies logistics and ensures faster delivery to your customers. Alternatively, if you prefer to ship inventory from the UK, OABeans provides arbitrage deals in UK, giving you flexibility in how you fulfill orders, whether through FBA or another preferred method. These features make OABeans an excellent resource for scaling your Amazon business across borders.

Conclusion 

Selling on Amazon US from the UK can be an incredible opportunity to tap into the world’s largest online marketplace and reach millions of potential customers. While there are logistical challenges, such as managing shipping and understanding currency exchange, the rewards of expanding your business can be substantial. 

By leveraging tools and services like Fulfillment by Amazon (FBA) and sourcing leads from reputable providers to sell on Amazon US from UK, you can simplify the process and set yourself up for success. With the right strategy and preparation, expanding to Amazon US can help you grow your business and increase your revenue.

FAQ 

What Are Amazon Seller Fees in the UK? 

Amazon seller fees in the UK include a monthly subscription fee of £25 (for a Professional account), referral fees ranging from 6% to 45% depending on the product category, and fulfillment fees if using Fulfillment by Amazon (FBA). Sellers may face other charges, such as high-volume listing fees or long-term storage fees if inventory remains unsold for an extended period.