How to Start Selling on Amazon FBA, Internationally (The Definitive Guide)

Are you considering becoming an international seller on Amazon FBA? Venturing into the vast market of the USA and beyond? Today, we embark on an insightful journey, so lend us your attention and enjoy our condensed Asia-to-Amazon mini-course.

In our ever-evolving world, convenience is key. The days of trudging to the mall are long gone, as are the times when vendors relied on physical marketing materials. The question lingers: Can one still sell products successfully without the internet?

Related: Check our full Amazon FBA library for more guides and tools.

Let’s delve into a few essential points today: the seamless global selling capability of Amazon and the liberating flexibility that allows you (and your business) to operate from almost anywhere on the globe. What advantages await those who choose to traverse international boundaries while selling on Amazon? Let’s explore.

The internet has revolutionized every facet of life. Through social media, advertisements, and various online channels, marketing and selling have undergone a significant transformation. 

Selling products online not only opens doors to a broader audience and new customers but also provides buyers with a virtual shopping mall at their fingertips. The internet has dismantled traditional geographic constraints, redefining the way people engage in commerce.

Behold, Amazon.com, one of the world’s premier online retailers. It has evolved over the years, offering a vast array of consumer goods, ranging from books to virtually everything imaginable. Beyond its prowess as a consumer hub, Amazon is a potent platform for sellers. 

Boasting over 300 million users, Amazon provides sellers with an extensive pool of potential customers. With comprehensive categorization and millions of users exploring diverse product categories, Amazon is a haven for sellers, effortlessly catapulting products into the limelight.

As of today, Amazon spans 11 marketplaces, including the US, Canada, Mexico, the UK, Germany, France, Italy, Spain, China, Japan, and India. With 120+ fulfillment centers, a presence in 180+ countries, and a diverse range of product categories, Amazon is a gateway to international business expansion. Taking your products global elevates your business to unprecedented heights.

Prefer to check out images? We made a full infographic of this blog post for you to download and enjoy! Check it out now.

First and foremost, select the marketplace that aligns with your product offerings. When venturing into the realm of Amazon, understanding your business and its nuances is paramount. Focus on product viability, profitability, and marketplace appropriateness. 

Be aware of regional regulations, such as Japan’s restrictions on goods violating wildlife protection laws. Language proficiency is crucial for effective customer support unless you opt for the convenience of Fulfillment by Amazon (FBA).

FBA is basically sending your products directly to Amazon’s fulfilment centers where their warehouse would handle shipping, packing and customer service/support for your products. All you need to do is send your products/inventory to Amazon and let them manage the rest. This sort of program allows you to focus on other aspects of running your business (like marketing & advertising) while Amazon handles logistics, packing and customer service.

FBA is ideal for anyone who owns a small business because it could save a lot of time and money. Easy, right? However, this program is not free; you will have to pay for the fulfilment fees (per unit) and monthly inventory storage (per cubic foot). Please refer to this link for the fees.

If you’ve opted for FBA, Amazon will give you the details and shipping address of where to send your inventory and then you can sit back, enjoy a cup of joe, and wait for sales to come in (with a lot of extra effort on marketing, of course).

In addition to storing your products in Amazon’s warehouses, you can also store them in a 3pl, which stands for third party logistics. An example would be Prep It Pack It Ship It, in California. Prep Centers and 3PLS can help you prep or store products for a lower cost than FBA and then you can drip feed into Amazon FBA.

Cross-border e-commerce has evolved over the years, with some tracing its roots to eBay’s entry into the Chinese market. While selling into Mainland China from outside is a facet of cross-border e-commerce, the broader definition encompasses international e-commerce, breaking down borders and facilitating global trade.

Related post – How to get started with Chinese-based cross-border e-commerce

Watch this video with our co-host, Lyka, as she explains to you what Amazon is and how you can start selling on this e-commerce platform:

Embarking on your Amazon FBA journey requires a seamless registration process, a task easily accomplished in under an hour. To initiate this journey, visit the Amazon Seller Central account setup page. The subsequent steps, illustrated below, guide you through five essential stages:

Begin with the basics — your name, email, and a chosen password.

Source: Amazon.co.uk

Provide crucial details, including your company’s registration particulars, primary contact person information, and beneficial owner information.

Expedite the process by preparing your credit card details and a valid phone number.

Furnish necessary tax details to ensure compliance with regional regulations.

Complete the registration by sharing essential information about your products, ensuring a comprehensive and trustworthy seller profile.

To expedite the process, you may want to prepare this information in advance:

Dispelling any concerns about needing a US-based company to sell on Amazon US, international sellers can operate from anywhere worldwide. While a US-based bank account is required for fund transfers, Amazon’s Currency Converter for Sellers alleviates international sellers’ worries by facilitating transactions in local currencies. 

This feature enhances accessibility, enabling sellers to cater to a global audience without the need for a US-based company.

As of today, Amazon provides access to its vast marketplace for sellers from 102 countries, transcending geographic boundaries. This inclusivity ensures that sellers worldwide can tap into Amazon’s expansive customer base.

You can sell on Amazon as a non-US resident. A popular choice for many international sellers is to establish their Amazon Seller Central Account in Hong Kong. If you’re contemplating selling on Amazon from Hong Kong, we delve into the reasons behind this choice in a dedicated blog post, highlighting why Hong Kong serves as an optimal hub for FBA business headquarters.

It’s crucial to consider the implications of cross-border payments and foreign exchange (FX) fees when engaging in Amazon sales. When Amazon remits payments, they do so in the currency associated with the country of your Seller Central account. 

Unfortunately, many sellers overlook alternatives, unknowingly subjecting themselves to unfavorable exchange rates imposed by Amazon.

Explore our comprehensive guide and comparison on cross-border payments, featuring insights into payment provider solutions. This resource will not only guide you through the intricacies of the process but also empower you to make informed decisions, steering clear of potential pitfalls in the realm of FX fees.

Following successful registration, sellers face a crucial decision: opting for a Professional or Individual seller account. Assess the scale of your operation to make an informed choice.

• Professional Seller: For those with a substantial product catalog, a monthly fee of $39.99 unlocks benefits such as customizable shipping rates, promotional opportunities, and eligibility to list in exclusive categories.
• Individual Seller: Catering to smaller inventories, individual sellers incur no monthly fee but pay $0.99 per item sold. Sellers with fewer than 40 products may find this a cost-effective option.

Choosing a Professional Seller account on Amazon unlocks several advantages:

• No fee per product sold.
• Account remains active even during periods of inactivity, albeit with a monthly fee.
• Customizable shipping rates.
• Ability to offer special promotions and gift wrap options.
• Creation of new listings.
• Eligibility for top placement on product detail pages.
• Exclusive access to categories such as Clothing, Shoes, Jewelry/Watches, Beauty, Collectibles, Automotive, and Video.

Sellers can seamlessly transition between Professional and Individual Seller status, adjusting their approach based on business needs and market dynamics.

If you’re still grappling with the decision to sell on Amazon, take a moment to explore Amazon’s comprehensive Ready-to-Sell Checklist. This invaluable resource is tailored to guide you through the essential considerations, aiding in your decision-making process.

Before your products grace the digital shelves of Amazon, there are crucial steps to follow. Begin by selecting an appropriate Amazon category that aligns with your products. Keep in mind that different categories come with specific requirements, such as invoices, images, and questionnaires.

Once you’ve identified your category, meticulously gather essential details about your products. Craft a compelling product description, succinctly convincing potential customers to choose your offerings. 

Strive for brevity while ensuring your products shine through vivid descriptions. When it comes to images, adhere to Amazon’s product image standards by opting for professionally shot photographs. These visuals are your product’s first impression and play a pivotal role in enticing customers.

With your meticulous preparations complete, your product is now poised for its debut on Amazon, ready to capture the attention of online shoppers.

International sellers must navigate the intricacies of US sales tax. If devoid of a physical presence in the US, sellers need only handle customs duties and import taxes. However, a US-based physical presence necessitates compliance with US sales tax obligations.

For those venturing into the European marketplace, understanding Value-Added Tax (VAT) obligations is paramount. Sellers are responsible for collecting and filing VAT, with the need for professional advice to navigate the complexities of VAT in the European Union.

When it comes to establishing a business, the location you choose serves as a cornerstone for success. It’s not merely about finding a place on the map; it’s a strategic decision that warrants careful evaluation. Here’s an in-depth exploration of the factors involved.

Assessing the tax landscape is crucial for financial planning. Different countries have varying tax structures, and understanding the tax implications for your business activities is paramount. 

Consider not only corporate taxes but also other levies and fees that might impact your bottom line. Upkeep costs, encompassing operational expenses, infrastructure, and compliance, play a pivotal role in determining the overall financial viability of your business in a particular location.

If your business extends beyond borders, navigating the tax considerations of overseas markets becomes imperative. Each jurisdiction has its tax regulations, and understanding the international tax landscape ensures compliance and prevents unforeseen financial implications. 

This involves grasping the intricacies of cross-border taxation, transfer pricing, and any tax treaties in place between the countries involved.

The decision on where to centralize your operations is multifaceted. Considerations include the availability of a skilled workforce, labor costs, and the ease of doing business. Evaluate the potential for growth and innovation in the chosen location. 

Additionally, if you plan to hire locally, understanding the labor market and legal requirements for employment is essential. Centralizing operations streamlines efficiency and often leads to cost savings, making it a pivotal aspect of the location decision.

Beyond the business realm, consider the personal aspects tied to the location. Residency requirements, such as obtaining long-term permits or citizenship, may influence your decision, especially if you envision a long-term commitment to the chosen location. 

Lifestyle preferences, including cultural compatibility and quality of life, play a role in ensuring a positive work-life balance for you and your team.

These considerations are not isolated factors; they are interconnected elements that collectively shape the trajectory of your business. The dynamic interplay of taxes, operational efficiency, human resources, and personal lifestyle creates a complex decision-making landscape. 

Our detailed exploration of these considerations in our blogs aims to empower businesses, providing insights that go beyond the surface-level analysis. By delving into these factors, businesses can make informed decisions that align with their corporate structure and global operations, setting the stage for sustained success in an ever-evolving business landscape.

The once-easy days of registering on Amazon FBA have evolved, requiring more due diligence. New sellers often need to submit proof of address documents, bank statements, and other activity proof before listing products. 

While challenges exist, entrepreneurial perseverance remains crucial to overcoming obstacles in the ever-evolving landscape of cross-border e-commerce.

We love getting questions and feedback from our readers especially for this topic. It gives us the validation that more and more people are going into Cross Border E-commerce. Also, we get to learn more about what help our community of e-commerce business owners need.

Here are some that were sent to us:

Saudi Arabia is not on the list of countries accepted for seller registration in Amazon. You can find the list here.

But be on the lookout though for Amazon has plans of expanding its reach and add a Middle East marketplace. Who knows, they might open Amazon selling opportunities too, in Saudi Arabia.

You would only need to set up your Amazon Seller Central Account so you can start selling.

Forming an LLC is not a requisite to selling on Amazon. If you want to keep your business structure under a sole proprietorship, then you can do so. Just check the regulations or permits needed in your country of operations.

A lot though are moving in the direction of forming an LLC. And, this is mainly for financial and legal protection as your business expands, which you may not get in a sole proprietorship structure.

As the world transforms into a global market, the future of selling on Amazon unfolds with exciting possibilities. Embracing cross-border e-commerce, Amazon continues to redefine the landscape, providing sellers with unprecedented opportunities. We invite you to share your thoughts on the future of global selling and cross-border e-commerce in the comments below.

The Global From Asia team offers a network of specialists dedicated to aiding individuals in setting up their Asia-to-Amazon venture. Whether through services or a comprehensive course, we are here to guide you on the fast track to Amazon success. Fill out the form below, and let’s embark on your Amazon FBA journey together.