Amazon Europe
Edited

This chapter will provide you with an outline of what it is like to have an opportunity to be an Amazon seller in Europe and the requirements to get started.

The Opportunity

There are 28 potential countries that Amazon sells in Europe and five marketplaces.

Europe is the second biggest B2C web-based business market, worth $770 billion, and right now has more than 340 million online purchasers.

80% of the consumers in countries like Denmark, the UK, and Germany shop online.

The European Union

Termed as European Union, 28 European countries have together formed a political and economic union. Although these countries have local government and laws in place, laws that eventually apply in their country are the ones enacted by the European Parliament and apply across the union. Apart from legislation, other aspects are not universal, like the EU’s common currency, the euro, has only been adopted by 19 countries.

Not all European countries are a part of the EU. Switzerland, Norway, and Russia are the most prominent exceptions. Since ‘EU’ and ‘Europe’ are sometimes used interchangeably, it can get confusing.

Getting Freight into the EU

Imports that come from generally land at Le Havre (France), Felixstowe (UK), Antwerp (Belgium), or Rotterdam, (The Netherlands), and imports from Chicago dock at Hamburg (Germany) going through Suez Canal. Shipments at that point normally travel inland by canal boat or rail to significant distribution centres. Delivery of urgent shipments is done by truck.

Air cargo comes through major passenger ports such as Frankfurt (Germany), London Heathrow (UK), Paris (France), Milan and Rome (Italy), Madrid and Barcelona (Spain).

Compared to sea freight, air freight comes 10 to 15 days quicker but shipments that weigh, over about 100kg cost a lot more. However, shipping by rail from China is becoming popular because it is a middle ground between sea and air freight in terms of transit time and pricing.

VAT

Value Added Tax is an indirect form of Taxation. Unlike normal taxation, VAT is collected at every stage of production and distribution. Paying VAT can be avoided by registering in a duty deferment program, which beginner importers may find too complicated. You may likewise have the option to recover VAT, contingent upon the nature and level of business you think your business tasks in the EU will extend to.

There is a second way in which VAT in the EU is different from sales tax in the US. Their rates are surprisingly high, which varies from 17% to 25% of the good’s value, depending on the country.

On the positive side, VAT measures are smoothed out and straightforward. All nations have quite clear and available cycles for getting a local tax ID. Setting up for VAT in one EU nation has you secured for bringing into some other nation in the union. Furthermore, when your merchandise is inside the EU, you can openly ship them starting with one nation then onto the next.

Customs Duties

Customs duties (plus VAT on customs duties) have to be also paid depending on the product and the location of its production. However, different from VAT, customs duties on tariff code is similar throughout all the EU countries. Obligation structures are normally around 5% to 10% of the shipment esteem, which incorporates cargo costs among different things, be that as it may, such as bringing into the US, numerous products are sans obligation. Also, again like the US, import levies can surpass 100% if against unloading rules apply.

Other EU Import Preparation

EORI: Economic Operators Registration and Identification number for us is what IOR number is for the US customs. That said, it is used by the customs authorities to identify the shipment’s importer and exporter. The number remains constant across all the countries in the EU. EORI can be applied for before importing with one of the local customs.

COO: called Certificate of Origin, is required depending on the country of origin.

CE Marketing: products like electrical appliances, toys, machinery, and medical devices need CE Marketing which indicates that the products adhere to the European Health and Safety standards. One needs to check with their manufacturer whether the product is CE accredited. The Majority of information covered in the Safety Standards & Labeling chapter applies equally to the US and EU.

US Export Preparation

  • Things you need to do if you are exporting from the US:

  • Electronic Export Information (EEI) needs to be arranged for the Census Bureau.

  • Fix an export license

  • Become a Foreign Principal Party in Interest,

  • Become classified as a “known shipper.”

It is your freight forward who will help with all the points mentioned above. A freight forward that deals specifically in Europe can help you with all the requirements from what you want in particular and what you need to export from the US and import into the EU.

Summary

Amazon has a few standards set up with the goal that they can receive import shipments in the same manner they receive native shipments. This incorporates that they won’t go about as a merchant of record or extreme representative, and they won’t be responsible for any obligations, charges, and so on.

Deliveries that do not adhere to the proper palletizing, labelling, and receiving requirements will not be accepted.