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The requirements to sell on Amazon are: creating an account on the platform, providing your personal and tax information, adding a payment method, a bank account, and a contact number. Practically anyone can start selling on Amazon, but it is essential to be informed to make the best decisions throughout the process.
I am Jordi Ordóñez, an eCommerce and Amazon consultant, and in this article, I will explain the requirements to sell on Amazon. We will explore who can sell, the process to follow, and whether it's profitable or not so you can make the decision that best suits you.
Who can sell on Amazon?
One of the most common questions when it comes to selling on Amazon is: who can sell on the platform? The answer is quite simple: anyone who meets the basic requirements set by Amazon can sell. Amazon is open to both individual sellers and businesses.
If you're an individual and want to sell on Amazon, you can register as an individual seller. You do not need to have a registered business, but you must meet certain tax requirements, especially if your sales exceed a specific threshold in your country. If you're a business or want to sell on a larger scale, you can opt for a professional seller account, which offers additional tools to manage and grow your business.
Take a Look at Our Ebook: Guide to Selling on Amazon
What do I need to register on Amazon?
To start selling on Amazon, the first step is to register as a seller on the platform. The process is quite straightforward, but it's important to have all the necessary documentation ready to complete the registration. The basic requirements include:
- Amazon Account: You need an Amazon account to start. If you're already a customer, you can use the same account, but if not, you will need to create a new one.
- Personal and Tax Information: You must provide your name, address, and phone number. Additionally, you will need to enter your tax identification number (NIF) or its equivalent in your country.
- Payment Method: Amazon requires you to enter a valid credit card to associate with your seller account. This is necessary to pay the sales fees and other platform-related expenses.
- Bank Account: You also need to provide a bank account where Amazon will send the payments from your sales. Make sure your account is valid and active.
- Mobile Phone Number: This is used to confirm your identity and assist you in the verification process.
Once you complete the registration, you will be able to access your seller dashboard on Amazon and start uploading your products.
Requirements to sell on Amazon Spain
Selling on Amazon Spain is very similar to selling in other Amazon markets, but there are some additional requirements you should consider due to Spanish legislation. Here are some key points to consider:
- Tax Registration in Spain: If you reside in Spain or are a Spanish business, you must be registered in the business register and obtain a tax identification number (NIF). For non-residents, Amazon requires you to have a European tax identification number (such as the NIF for freelancers).
- Electronic Invoices: If you sell products on Amazon, it is important that you issue electronic invoices correctly and store them for at least 5 years, according to Spanish legislation.
- VAT: Depending on your sales, you will need to apply the applicable VAT in Spain. If you exceed the established thresholds, you will need to register for VAT and comply with tax obligations.
- Copyrights and Intellectual Property: If you sell your own products or registered brands, make sure you have the necessary rights to do so. Amazon prohibits the sale of counterfeit products or those that infringe intellectual property rights.
Is selling on Amazon profitable?
One of the big questions entrepreneurs ask is whether selling on Amazon is really profitable. The answer depends on various factors, but in general, yes, it is possible to generate substantial profits if you follow an appropriate strategy.
Amazon has one of the largest audiences in the world, with millions of active buyers every day. This gives you an advantage in terms of visibility and access to a global customer base. However, profitability depends on your ability to choose profitable products, manage your costs, and optimize your advertising campaigns.
Some factors that influence profitability include:
- Profit Margins: The profit margin varies depending on the type of product you sell, the associated costs, and Amazon's fees.
- Shipping Costs: If you use Amazon FBA (Fulfillment by Amazon), you need to consider the fees for storing and shipping products.
- Advertising and Promotion: Amazon Ads campaigns can be effective in increasing visibility, but they also come with costs that need to be properly managed.
Selling on Amazon as an Individual
If you're an individual and do not have a registered business, you can still sell on Amazon. You can do this through an individual seller account. The main difference from the professional account is that individual accounts have a limit on the number of products you can sell per month and do not have access to advanced inventory and sales management tools.
An important point is that Amazon charges a fee for each sale you make, and this cost increases if you're not a professional seller. Additionally, you will need to comply with tax obligations according to the laws of your country, even if you're not self-employed.
Requirements to sell on Amazon FBA
If you want to sell using the Fulfillment by Amazon (FBA) service, which allows you to store your products in Amazon's warehouses and have them handle storage, packaging, and shipping, there are some additional requirements:
- Shipping to Amazon Warehouses: You must ensure that the products you send to Amazon’s warehouses meet their shipping standards and requirements.
- FBA Fees: While FBA makes logistics easier, it also comes with storage and shipping fees. It’s important to carefully calculate your margins to ensure that this model is profitable for your business.
How to sell on Amazon USA step by step
If you want to sell on Amazon USA, you will need to follow a process similar to selling on Amazon Spain, but with some key differences. First, you will need to register for a seller account. Then, you must comply with the tax and customs regulations in the United States. It is advisable to seek local tax and fee advice to ensure that you comply with all legal requirements.
How to sell on Amazon without inventory?
One way to sell on Amazon without having to manage inventory is through dropshipping or using Amazon FBA. In dropshipping, you purchase products from suppliers only when a sale is made, while FBA allows you to delegate all logistics to Amazon.
If you're ready to begin your Amazon selling journey, make sure you understand your country’s regulations and use the right tools to optimize your performance. Contact Jordi Ordóñez, and we can help you navigate this process and guide you in optimizing your Amazon sales strategy. Let us help you take your business to the next level!
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About the author
Jordi Ordonez
I work as an independent eCommerce and Amazon consultant.
Clients
Estrella Damm, Intersport, Bella Aurora, Lladró, Textura Interiors, Nice Things Palomas, Castañer, Due-Home and many other clients.
Lecturer & Teacher
I teach and have been a speaker at: Meet Magento, Prestashop, Prestashop Day, SEMRush, Cambra de Comerç Barcelona, ClinicSEO, Ecommbeers, Ecommbrunch, Ecommercetour.com, Ecommfest, EOI, ESIC-ICEMD, Foxize, Generalitat de Catalunya, Inesdi, Quondos and The Valley. In addition, I have done in-company trainings for brands such as Orange and Adidas.
Writer
I collaborate writing articles for Helium 10 blog, Shopify, SEMRush, La Vanguardia, eCommerce-news.es, Marketing4ecommerce...
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Helium 10, Jungle Scout, Avask, Sellzone, Helium 10 Seller Solutions Hub Partner, SaaS4Marketing, H10-wp.com and FBASuite.com
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