Today I want to talk about a simple change in your account settings that can and most likely WILL increase your Amazon FBA sales with NO extra effort on your part! I’m talking about adjusting EXPORT settings which you can find in your account by going to:
- Fulfilment by Amazon Settings
- Shipping programmes and export settings
There you have an individual settings page for each marketplace you sell on and for this post an example I will use the Amazon.co.uk marketplace.
So first things first – do you have the setting ENABLED or DISABLED? If it currently shows DISABLED, you’re almost guaranteed to lose money on extra sales, on a daily basis.
But even if you have the setting ENABLED, follow next steps as it could be that you have not set it up correctly.
So, click on the EDIT button to access settings page.
There you have 3 options:
1) Domestic – means that export is disabled and you only offer your products to the local market.
2) EU 27 countries.
If your product has no restrictions on selling it in other countries (like food items, supplements that may require special certification, lab reports in each country etc.), you should have this setting set to Worldwide to reach as many customers as possible.
This EXPORT setting means that people from other countries can buy your item from the Amazon UK (or any other country you edit here) and get it shipped to their international destination. It does not cost anything extra to you, as a seller-buyer pays the shipping and import taxes (if any).
And unlike other FBA international programs where goods can be moved to other countries, in local Amazon warehouses, with this program it doesn’t happen. The item gets sent internationally directly from Amazon UK so you won’t have to register for VAT in all those other countries.
The ONLY time when you will have to register for VAT in another EU country is that when you reach DISTANCE sales threshold which triggers VAT registration requirement. But those amounts are not that small, for example:
- Austria – 35k EUR
- Germany – 100k EUR
- Ireland – 35k EUR
- Spain – 35k EUR
- France – 35k EUR
When you do reach such sales levels PER YEAR to those countries, it will be well worth to register for VAT! Even more – if you can sell at such high level to other countries from your UK listings, it’s a clear sign that you should investigate PAN European program or other FBA programs where you can get your stock stored in that country and create a local listing. Then your sales will double or even triple!
Some products will be more suitable than others but 90%+ everyday items will qualify, and you will see an increase in sales from international orders.
There are 27 EU countries but only 5 Amazon marketplaces – United Kingdom, Germany, Italy, France & Spain. Where do you think people from other 22 countries buy from? Exactly!
Amazon UK is especially popular as UK site is the only native site in English – language that most Europeans are familiar with. Amazon DE is popular in Poland and other Eastern European countries so again – if you do use FBA in Germany, make sure to adjust your export settings in the same way I did for UK site in this post example.
We don’t know how this program will work after the Brexit concerning EU countries, but for now, there are no excuses not to use this program to full advantage and offer your products, from local UK listings to customers around the World.