Amazon is not just an online store, but an entire ecosystem, a global marketplace with millions of visitors. It’s rightly called an e-commerce giant: Amazon has 21 localized websites in North America, Europe, Asia, and Australia.
Do you know what you want to offer to customers worldwide? Start a business on Amazon, and DiFFreight experts will show you how to become a successful entrepreneur.
The international marketplace strictly regulates trade — study all conditions, fees, payments, and charges before registering an account. After creating and verifying your profile, a huge market opens up!
For the European market, the platform offers a European Unified Account, which allows managing sales in different European countries (Germany, France, Spain, etc.) from a single account. Note that after Brexit, the UK left this system.
The Pan-European FBA (PAN-EU) program allows storing products in Amazon warehouses across Europe. When a customer places an order, the platform ships it from the nearest warehouse.
In this scheme, Amazon acts as a “conditional supplier” and charges tax from the seller. The main requirement of Pan-EU — the seller must register as a VAT payer in all countries where their goods are stored and file reports independently. This model does not apply to B2B sales.
Selling in Canada is possible with a North America Unified Account (covers the USA and Mexico). Thanks to a unified logistics network, you can ship products to a US warehouse, and they will be available to Canadian customers.
The Canadian market is a great start for new sellers:
Canada applies Goods and Services Tax (GST) and Harmonized Sales Tax (HST), depending on the province. Usually, Amazon automatically collects these taxes from sellers.
The US Amazon market is oversaturated: entrepreneurs often engage in “wars” for customers. This makes starting a business stressful for beginners. Amazon USA is for those ready for high volumes and tough competition.
For selling in the US, you need to understand the local taxation system. Amazon automatically calculates and collects sales tax in most states.
In addition to standard documents, additional certificates may be required for cosmetics, children’s toys, and electronics in Europe, the USA, and Canada.
The main success factor in how to work with Amazon from Ukraine is offering competitive products. They must stand out from competitors in terms of quality, features, or price. Let’s name three first steps:
Amazon is especially complicated because of the hundreds of thousands of sellers. Don’t rely on intuition or personal preferences. Success is built on data!
Is it profitable to sell Ukrainian products on Amazon? Yes, if your product interests not only the diaspora. However, locally manufactured products are more expensive than Chinese-made ones, but it depends on the niche.
Selling on Amazon from Ukraine involves the following expenses:
A helpful tip is to choose products that allow for good margins while maintaining competitive prices. These are often small, lightweight, and durable items that are simple to manage in logistics.
Customers are located worldwide, but there is a service for shipping products to Amazon warehouses in Europe and the USA. From there, packages are shipped to reduce waiting times for customers. How Amazon operates in Ukraine (it doesn't) complicates life for sellers. More details in the next section.
What “Red Flags” to Avoid:
In the beginning, focus on increasing sales to improve your rating. Therefore, it’s better to choose products that are consistently in demand.
How to sell on Amazon from Ukraine — here are the options:
The third option: shipping packages through international postal operators, which is not suitable for business. Delivery takes a week, and customers don't like waiting. Plus, it will cost significantly more, which will hurt your profitability.
What to pay attention to, according to DiFFreight:
We recommend our article on Typical mistakes when working with Amazon. DiFFreight experts invite you to a consultation. We will answer your questions about successful selling on the platform, delivery nuances, and fulfillment. We wish you success in conquering the international market!