Opening an Amazon store in Lithuania can become a very successful business activity for both natural persons who sell their own products over the internet, as well as well-established companies interested in expanding their market. The advantage of an Amazon store is firstly given by the fact that one can easily address to a larger consumer market, but few aspects should be taken into consideration.
Thus, if you want to open a company in Lithuania and you want to sell your products over the internet, entering the Amazon platform can provide certain advantages. First, you should verify the shipping policies applicable in Lithuania and the taxes that might by charged for your products, taxes that are generally payable by your foreign clients.
You should do this in order to estimate whether foreign clients will be interested to purchase goods in the situation in which the taxes charged for the shipping of those goods can be rather high compared to the value of the purchase. Regardless of this, if you will open a Lithuanian company, you should first analyze a set of laws, market regulations and others, and for this, you can always address to our team of specialists in company formation in Lithuania.
What you should know when opening an Amazon store in Lithuania
There are plenty of aspects to consider, and one of them refers to the rules regarding online shopping. The sale of goods on the internet falls under the regulations applicable to the sale of goods in traditional stores, but companies investing in online stores can have plenty of advantages when we refer to the operating costs of the business.
Such costs can be considerably lower, as the company will not have a physical store for which the investors will have to pay rent (generally at large monthly costs), pay employees, and other associating costs, such as utility bills and branding costs. However, when dealing with online shops, investors will have to invest in safe and reputable systems that can safeguard the financial transactions.
There are plenty of aspects to take into consideration and a key factor to a successful business is to have a clear management structure for your inventory and a very good shipping system, especially in the case in which you are shipping a large volume of products. Then, you should maintain a SEO system through which clients can reach your website.
What is the Amazon fee system?
Opening an Amazon store can provide additional possibilities to sell your goods to new clients, who are familiarized with the Amazon system and who purchase products from this platform on a regular basis. If you want to be a part of the Amazon platform, you should take into consideration the following:
- • if you are an individual who registers on the e-commerce platform, you will pay to Amazon a fee of $0,99 per each item you sold through this platform;
- • to this fee, you should also take into consideration other selling fees that might be charged and you should also mind that this fee system is generally recommended for those who have a low sale volume on a monthly basis, of less than 40 items;
- • for professional sellers, regardless if they are individuals or companies, the fee is of $39,99 per month;
- • for the latter, other fees can be charged and Amazon recommends this system for those that sell more than 40 units per month;
- • an advantage of opening a company in Lithuania through an Amazon store is that you will address to a consumer market of more than 300 million clients.
What are the main types of sellers on Amazon?
Currently, Amazon has two types of sellers: entities that are known as sellers, through which Amazon defines parties that are independent and sell their products through the platforms and the platform itself is not considered the seller, but just an intermediary place through which the products can reach other clients, and vendors.
The sellers can be either natural persons selling their own products or small companies that have set up their own Amazon store. On the other side, vendors represent well established companies that have entered a business partnership with Amazon. By this, Amazon purchases the products of such companies and then sells them to the Amazon clients.
In this latter case, Amazon is considered to be the seller of the product and holds the responsibility of the procedure. Vendors can only be companies that have received an invitation for a business partnership, issued by Amazon. For sellers, however, here isn’t any particular prior process to be completed, only the set-up of the Amazon store itself. If you need more details, we invite you to contact our team of consultants in company registration in Lithuania.