If you’re already selling successfully on Amazon in the US, expanding internationally into the UK is definitely worth looking into. And while there’s obviously a lot that does carry across, don’t make the mistake of assuming the UK is simply a copy and paste version of Amazon US.
But before you start sending stock across the Atlantic, you need to firstly understand whether people actually want your products, what you can potentially sell them for and, more importantly, whether there’s still enough profit left over once all the additional costs are taken into account.
Is Amazon UK a Good Fit for Your Brand?
The best place to start is by looking at what you’re already selling and seeing where those products fit into the UK market. Some of your best-selling US products might have an obvious market here, while others could face completely different competition, pricing or simply not have the same level of demand.
Look at what comparable products are selling for, who you’re going to be competing against and whether there are any obvious seasonal differences you need to account for. Then work backwards from a realistic UK selling price and see what happens to your margin once Amazon fees, VAT, duties, fulfilment and advertising are all taken into account.
Realistically speaking, not every product in your existing catalogue is going to present the same opportunity for an Amazon UK expansion, and that’s totally fine. It actually makes far more sense to initially identify a smaller group of SKUs that look promising and test those first, rather than automatically launching your full US inventory all at once.
Set Up the Right Selling, Tax and Import Structure
You’ll need a European selling account to start listing your products on Amazon UK. But before you start moving stock across, there are a few other things you’ll need to address first.
VAT, EORI registration and customs all come into the equation when you’re importing goods into the UK. You’ll also need to know who will act as the importer of record and handle the responsibilities that come with bringing the goods into the UK.
Understand that product specific requirements can differ as well, but that is largely dependent on what you’re actually selling. But you’ll still need to check if changes to labelling or any additional documentation is required to meet specific UK safety requirements.
Localise the Listing and the Offer
Before your listings go live in the UK market, there are going to be a few adjustments needed. Start with fresh keyword research for the UK marketplace and use British English throughout, then check measurements, compatibility, pack quantities and the terminology customers are likely to recognise.
Have another look at the imagery and any product claims you’re making as well. What works for a US customer won’t necessarily make as much sense to somebody shopping in the UK.
Pricing needs to be worked out again in GBP too. Once VAT, duties, Amazon fees, fulfilment, returns and advertising are taken into account, the margin can look quite different from the one you’re used to in the US.
Choose FBA, a UK 3PL or a Blended Model
If Amazon is going to be your main UK sales channel, Amazon FBA will probably be the obvious place to start. But that doesn’t necessarily mean you want all of your stock sitting inside Amazon.
A UK 3PL fulfilment service gives you somewhere to hold additional inventory and can also be used for orders coming through other sales channels. You can then replenish FBA as stock starts to run down rather than sending everything into Amazon from the get go.
Plan Launch Stock and Replenishment
When you’re sending stock into the UK for the first time, you’ll obviously need to make some assumptions about how quickly those products are going to sell. That’s another reason to start with the priority SKUs rather than bringing over too much stock right at the start.
Look at how long it takes to acquire more inventory, ship it to the UK, clear customs and finally get it received. You can then use those lead times to work out when you need to reorder rather than waiting for stock to start running low and risk potential stock outs.
Build a UK-Specific Launch Plan
What works for you on Amazon US doesn’t automatically mean it’ll work the same in the UK. UK customers might be searching differently and you’ll be competing against a different mix of products. Be aware that the margins you’re currently working with may not be the same either.
After revisiting your keyword research for the UK specific audience, you’ll then be able to build your Amazon PPC campaigns around the searches you’re actually seeing here, rather than simply copying and pasting your US targeting and bids.
Review the First 90 Days
Once you’ve got a few months of UK sales behind you, you’ll have a much better idea of which products are actually working. Look at conversion, advertising efficiency, contribution margin, returns and how much stock you’re holding for each SKU.
You can then use that data to decide which products are worth pushing further and whether it makes sense to start bringing more of your US range into the UK.
Frequently Asked Questions
Do I need a UK company to sell on Amazon UK from the USA?
Setting up a UK company isn’t a requirement simply because you want to sell your products on Amazon UK. Overseas businesses can sell through the marketplace without having a UK company.
Do US sellers need UK VAT registration and an EORI number?
This is something to look at before you start sending any inventory across. VAT will depend on how your goods are being imported, stored and sold, while an EORI number is used when dealing with UK customs.
Can I send US inventory directly to Amazon FBA UK?
You can, although your inventory still needs to go through the normal import process before Amazon can receive it. Customs, duties and import VAT don’t disappear simply because the final destination happens to be an FBA fulfilment centre.
Should a US brand use Amazon FBA or a UK 3PL?
Think about where you’re actually going to need the stock. If most of your UK sales will be through Amazon, FBA is an obvious option. A 3PL starts to make more sense when you also need inventory available for other sales channels or want somewhere to hold reserve stock.
If you’re planning an Amazon UK launch, our US-to-UK expansion service can help you assess the opportunity and plan the move before committing stock and budget.
