Beginner’s Guide To Selling on Amazon UK

summary

• Leverage Amazon's 90% UK market share for huge customer potential.
• Start as an Individual Seller to test the waters, then upgrade to Professional.
• Expand globally and sell internationally with ease using Fulfilled By Amazon (FBA).
  

🎧 Listen Now: Sidehustles.co.uk One-Minute Podcast: Beginners Guide to Selling on Amazon UK.

Transcript available below.

In today's rapidly shifting retail landscape, where digital storefronts are overtaking physical retail spaces, Amazon.co.uk emerges as a beacon of opportunity for side hustlers and small businesses. With its vast reach – nearly 90% of UK shoppers frequent this online marketplace – Amazon offers a powerful platform to launch and grow your business, especially in light of the recent shift in consumer behaviour accelerated by the pandemic.

But diving into Amazon's expansive world brings up crucial questions for beginners: How do you start selling on Amazon UK? What costs are involved in setting up and operating an Amazon store? And importantly, how does Amazon's retail setup facilitate earning and managing your profits?

Our guide, 'The Complete Beginner’s Guide To Selling on Amazon UK,' is crafted to answer these questions and more. Based on the experiences of our network of side hustlers, we'll guide you through the essentials of establishing your own Amazon business, from registration to product listing, and discuss strategies for pricing, fulfilment, and expanding your reach both locally and internationally.

Whether you're contemplating if Amazon is the right fit for your business or you're set to embark on this e-commerce journey, this guide is your comprehensive resource for navigating the lucrative yet competitive landscape of Amazon UK.

Let’s get to it immediately. To start selling on Amazon UK, here’s a basic rundown of what you need to do.

1. Register as a seller. If you don’t already have an account, make one before registering as a seller.
2. Start listing your products. We’ll discuss further below the finer details and best practices for this step.
3. Set your prices. Keep in mind the additional costs of selling on Amazon UK to ensure profits.
4. Choose the best fulfilment method.
5. Receive payment for your sales!

Why sell on Amazon Marketplace in the first place? Well, there are many benefits to using this platform.

First, Amazon is an established brand with all the features and tools you need to operate your storefront. Almost everything is taken care of, especially if you use Fulfilment by Amazon (FBA).

Another major benefit of selling on Amazon is how you can sell to international audiences. The platform has ways to ensure that your products appear to those who need it, wherever in the world they are. You just have to know how to use these methods to optimise your listings.

Yes. So long as you’re of legal age in the UK and meet the basic requirements, you can open a virtual storefront on Amazon Marketplace. There are two classifications for sellers: Individual and Professional. The biggest difference for each is how much fees you’re going to pay to Amazon for each sale.

Individual Sellers

You’ll fall under this category if you sell 35 items or less within a month. As an Individual seller, you will only need to pay a completion and referral fee for every sale you make. The former is currently £0.75 (excluding VAT).

Professional Sellers

To become a professional seller, you will need to sell more than 35 items a month. Under this classification, you will have other tools that can help you boost sales, such as bulk listing features. The caveat is that you’ll need to pay a £30 or £25 monthly subscription fee along with the completion and referral fees. Make sure to set prices that account for these expenses.

You can sell a wide range of products on the Amazon Marketplace. These include the following and more!

• Baby products and apparel
• New fashion items
• Kitchen gadgets
• Home improvement products
• Office and stationery
• Electronics and peripherals
• Toys, games, and musical instruments

Amazon has prohibited certain items on the marketplace. According to the company’s guidelines, you cannot sell illegal items, alcohol, prescription medicine, and many types of animal-derived products.

You also cannot sell used clothing on the Amazon Marketplace. However, you can still sell items you’ve never used provided that these products are in perfect condition and with original packaging. If you’re planning to sell second-hand or vintage clothing, other sites like Vinted may be the more convenient option.

Yes, it's absolutely possible to start internationally on Amazon! Going beyond the UK also allows you to capitalise on the large consumer market of the EU. There’s a rising trend of international spending, making it more lucrative for UK sellers to market to other countries.

dont FORGET brexit

However, there is another thing you have to consider. Fulfilment is not as straightforward as it was once because of Brexit. There are more restrictions, and you cannot use FBA for UK to EU orders. So, if you do have a demand from an international audience, it might be worthwhile splitting your business between the UK and the EU. When you do, make sure that you remain compliant with regulatory requirements, which could include customs charges and additional VAT.

To make things quicker during registration, make sure to have the following ready.

1. Identification (Passport, ID, etc.)
2. A UK credit card. You can use an internationally-chargeable credit card so long as it has a valid billing address. Through this card, Amazon will charge your monthly fee as a Professional seller.
3. Bank account information for payments.
4. Business email address. Amazon and your customers can also use your customer account to facilitate communication.
5. Phone number.
6. Company registration details, especially for Professional sellers. Be sure to include your VAT number.

As you can see, there are more requirements for Professional sellers. If you’re not going down this route, make sure to choose the Individual seller classification to avoid the extra requirements.

However, if you do have plans to grow and expand your store, then the Professional seller option is still the more optimal choice.

This process is crucial to get right because Amazon has a few requirements for products, especially ones that aren’t listed on the main Amazon website just yet.

For individual sellers, find the “More Buying Choices” on a product page. You should find the “Sell Yours Here” button, which prompts you to share the details of your item. You’ll need to include the following:

1. Title
2. Images
3. Variations, if applicable
4. Bullet points highlighting the key product features
5. Offers
6. Product description. Make sure to include relevant keywords so your listing appears in search results.

Professional sellers will need to use Amazon’s Seller Central portal, especially if they want to list bulk items. In this case, Amazon requires you to include the following information aside from the product details mentioned above.

1. Product Identifier (ISBN, UPC, GTIN, etc.)
2. Stock-keeping unit (SKU), which helps you track your inventory
3. Keywords and search terms

The above applies to products that are not yet present on the Amazon UK catalogue. If your item is already listed, you only need to add the product name, price, and available stock.

Assigning the right prices can help you be more competitive in your niche. To determine your price, consider things like the condition of your item, the price of similar products, and of course, the loss you’ll incur with Amazon’s fees.

Still unsure? There are ways to gauge a reasonable price for your products. Amazon has built-in pricing tools such as the “Low Price” feature. With this tool, you can compare your listing to similar products and see price differences. When checking your listing’s information, there is a box that says “This Item Also Available To Buy.” Through this section, you can find the lowest-priced items offered by other sellers. Use the information to set your pricing.

If you don’t have time to research and study current marketplace pricing, then simply use Amazon’s automated pricing feature. Not only will this tool help you quickly assign prices but it can also increase your product’s chances of being selected as a “Featured Offer.” This increased visibility will help you improve sales.

As we mentioned above, there are certain fees for both Individual and Professional sellers. Here’s the breakdown of expected costs.

Individual Sellers

• Completion Fee: £0.75 (excluding VAT)
• Referral Fee: Varies; usually ranges from 8% to 15%
• Fulfilment fee if you’re using FBA (flat fee per product type)
• Storage fee

Professional Sellers

• Completion Fee: £0.75 (excluding VAT)
• Referral Fee: Varies; usually ranges from 8% to 15%
• Fulfilment fee if you’re using FBA (flat fee per product type)
• Storage fee
• Monthly subscription
• £30 for regular sellers
• £25 for sellers that qualify for VAT-exclusive fees
  

There are two ways you can handle fulfilment for your orders: working with a third-party logistics company or using Fulfilment by Amazon (FBA). The latter is the company’s own fulfilment service, operating more than 30 fulfilment centres in the UK.

Using FBA is the more convenient and cost-effective option, in our opinion. The services are easy to scale for peak seasons, so you won’t get overwhelmed when there is a huge demand for your product. In addition, FBA is familiar to many customers, which can help increase trust among your buyers.

You will need to pay the fulfilment fee when using FBA, which is different from the shipping fee (paid for by the customer). The rates vary from product to product, with the weight, size, and shipping methods as the biggest determining factors.

To set up FBA, simply select “set up FBA” on Seller Central. Follow the instructions and make sure that products for FBA are specified on your listings. When preparing the products, follow the company’s packing guidelines to avoid issues. Then, send the items to the nearest fulfilment centre.

Dropshipping is an e-commerce model where you sell items without having an inventory. Marketplaces like Amazon will host your storefront and take orders, while third-party suppliers manufacture and fulfil the orders. All you have to do is market your store and gain more buyers. This model is popular because it offers low overhead and a wide product offering.

The Amazon Marketplace does offer drop shipping services, but it has a strict Drop shipping Policy. In addition, you do not have a lot of control over the quality of the product nor the branding. You should only try dropshipping if you have a good grasp of the concept and don’t plan on creating a well-known brand. Otherwise, we recommend following the traditional online selling and shipping methods, such as the FBA.

As we mentioned, it’s important to provide your bank account details because it’s how you get paid. Amazon uses electronic funds transfer to send payments. The process usually takes five days, so keep this in mind to set your expectations. Amazon doesn’t accept PayPal and other online banking methods are not accepted.

If you’re wondering where to keep track of payments, you’ll find the Payments dashboard on the Seller Central page. Find the Statement View to see how much and when you’re going to get paid.

The Amazon Marketplace is a great stepping stone for small businesses and brands that want to reach a bigger and more varied audience. In addition, the platform has all the tools and services to help new sellers become more familiar with how e-commerce works. These features include the FBA, Seller Central, and automated pricing. In our opinion, it is worth it to start selling on Amazon Marketplace.

There are a few drawbacks you’ll have to consider, such as the huge number of competitors and the initial learning curve for the platform itself. However, taking time to build a good reputation and offering good products can help you stand out and earn more sales.

Remember that the journey to successful online entrepreneurship doesn't stop at Amazon UK. If you're looking to diversify your online business or seeking another profitable side hustle venture, our next article is a must-read. Dive into "How to Start a Blog That Makes Money," where we guide you through the essentials of creating a lucrative blog from scratch. We'll cover everything from choosing a niche to monetising your content effectively. Don't miss out on this opportunity to expand your digital empire!

HOW TO START A BLOG THAT MAKES MONEY

🎧 Listen Now: Sidehustles.co.uk One-Minute Podcast

Beginners Guide to Selling on Amazon UK.

Welcome to the Sidehustles.co.uk One Minute Podcast. In the next 60 seconds, we're sharing a real-world insight from our network of seasoned side hustlers. This quick tip is designed to offer you practical advice that you can apply immediately in your side hustle journey.

Today, we're looking at How to Start Selling on Amazon UK. If you're looking to venture into e-commerce, a key tip from our network is to fully leverage Amazon's global reach. Many small businesses hesitate to sell internationally due to the complexities of shipping and regulations, especially post-Brexit. However, Amazon UK simplifies this process, providing a platform to easily reach customers across the globe. By utilising tools like Fulfilment by Amazon, you can efficiently manage international orders, helping to significantly expand your market and sales potential. This approach not only diversifies your customer base but also boosts your business's resilience against local market fluctuations. So, even if you don’t delve into the full article, remember: embracing international selling on Amazon could be a game-changer for your small business.

That's your one-minute real-world insight. Stay tuned for more!

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https://www.webretailer.com/marketplaces-worldwide/online-marketplaces-uk/

https://m.media-amazon.com/images/G/02/rainier/help/legal/Condition_Guidelines_EN_161220.pdf

https://sellercentral.amazon.co.uk/

https://sell.amazon.com/tools/automate-pricing

https://sell.amazon.co.uk/pricing?ref_=sduk_soa_priov_n#referral-fees:~:text=Category%20Referral%20Fees

https://sellercentral.amazon.com/help/hub/reference/external/G201021850?ref_=sdus_fba_main_xscus_201021850&initialSessionID=131-5072453-2602101&ld=NSGoogle&ldStackingCodes=NSGoogle

https://sell.amazon.com/learn/what-is-dropshipping

https://sellercentral.amazon.com/help/hub/reference/external/201808410?ref_=sdus_soa_sov_ds_xscus_201808410&initialSessionID=139-1590125-7288507&ld=NSGoogle&ldStackingCodes=NSGoogle