Do I Need a Company to Sell on Amazon UK?

Do I Need a Company to Sell on Amazon UK? The short answer is no, you are not required to register as a business in order to sell on Amazon UK. You do not need a company or government-registered business to start selling on Amazon in the UK, nor do you need to register for VAT unless you reach the threshold.

Table of Contents

• How to Start Selling on Amazon – Do I Need a Company to Sell on Amazon UK?
• Registering Your Amazon Business as a Company.

Now, you must be wondering: How do I start selling on Amazon then?

In the UK, almost 90% of shoppers use Amazon. Amazon also ranks 5th among the leading retailers in the UK today. This makes Amazon an excellent platform to start a business and sell products online because it offers enhanced exposure and access to millions of potential customers online.

However, you do not need to register as a business with the government to begin selling on Amazon. So here is what you really need to do.

How to Start Selling on Amazon – Do I Need a Company to Sell on Amazon UK?

It is super simple to set up a business on Amazon. This simplicity is what has convinced millions of people—many of which would have never previously considered going into business—to start selling on the platform. Please note, your products that are sold on amazon will be subject to referral fees from Amazon. Depending on your Amazon seller package, this may also have subscription fees (professional selling plan).

All you really need to do to start selling on Amazon is to register an Amazon seller central account. It is that easy! Of course, this is just the start as you will have to choose your business model and methods for sourcing products and fulfilling orders.

Because Amazon is an exceedingly competitive platform, here are a few tips to help get you started on the right foot.

1. Identify Your USP: What is your unique selling proposition? What niche would you sell products from that will prove the most profitable? To start a profitable business on Amazon, you need to do market research and find relevant trends and competitive products that align with your passion and interests.

2. Conduct Market Research: Observe what potential competitors are buying already and think about how you can make your product offers to stand out to them against your competition. In this, it is best to focus on quality and the value your products will offer than to try and penetrate the market with a pricing strategy.

3. Find Funding: You must also consider whether you need any funding to help you achieve your goal of selling on Amazon. Finally setting up your Amazon business can garner costs such as product purchases [How to Sell on Amazon without Buying Product], running ads, and logistics.

4. Find Product Suppliers: After deciding what products to sell, you have to find your product supplier(s) [Where to Buy Wholesale Products to Sell on Amazon]. If possible, it is a good idea to check the quality of the products from your supplier by yourself. You can do this by ordering samples to assess the quality. Otherwise, you can outsource this task to a professional quality inspector.

5. Make Your Products Attractive: When you create your product listings, use keywords to name your products and include clear and high-resolution images to make them more appealing. Also, make sure your products are “Prime eligible” so that the free shipping options are available for Amazon Prime members to enjoy with your products.

It is important to note that after you start selling on Amazon, there is indeed a point where you will need to register your Amazon business with the HMRC.

Registering Your Amazon Business as a Company.

As a seller on Amazon with your amazon seller account, once you start making more than £1,000 a year from online sales, you will need to register a self-employed business and pay taxes depending on your income (this is not just from Amazon, but once you/your business makes more than £1000 in sales). Also, in the UK, if you wish to upgrade your Amazon shop to a legal business (for instance, to access perks such as opening a business bank account), you will need to register with HMRC.

Furthermore, if you plan to make selling online into a large enterprise, you might consider forming a limited company (LLC). An LLC will prevent cost risks from falling on you and all your personal effects in the unfortunate event that your enterprise runs into the ground. However, if selling on Amazon is more of a side hustle for you, you may prefer the sole-trader route.