📝 Table of Contents
1. Introduction
2. Individual Seller Account vs. Professional Amazon Account
3. Registering as a Limited Company
4. Advantages and Disadvantages of Limited Company
5. VAT Thresholds for Sole Traders and Limited Companies
6. Converting from Sole Trader to Limited Company
7. Wholesale Route and Limited Company
8. Taxes for Individual and Company Accounts
9. The Story Behind Seller Circle
10. Future Plans for Seller Circle
11. Moving from Online Retail Arbitrage to Wholesale
12. Delivering Wholesale Items to Residential Addresses
13. Conclusion
14. Resources
Introduction
Amazon FBA (Fulfillment by Amazon) is a popular business model that allows individuals to sell products on Amazon's platform. However, there are many questions that arise when starting an Amazon FBA business. In this article, we will answer some of the most frequently asked questions about Amazon FBA and provide insights into the world of Amazon FBA.
Individual Seller Account vs. Professional Amazon Account
When starting an Amazon FBA business, you have the option to choose between an individual seller account and a professional Amazon account. An individual seller account is suitable for beginners who want to sell up to 30 items per month without the need for a business entity. However, if you plan to sell more than 30 items per month, it is recommended to use a professional Amazon account. This account requires a limited company or sole trader ship.
Registering as a Limited Company
Registering as a limited company is not necessary when starting an Amazon FBA business. However, it is recommended if you plan to sell more than 30 items per month. A limited company provides legal protection and separates your personal assets from your business assets. It also gives you a more professional image, which is beneficial when dealing with suppliers and manufacturers.
Advantages and Disadvantages of Limited Company
The advantages of registering as a limited company include legal protection, a more professional image, and the ability to separate personal and business assets. However, there are also disadvantages, such as higher costs and more paperwork. It is important to weigh the pros and cons before deciding to register as a limited company.
VAT Thresholds for Sole Traders and Limited Companies
As a sole trader, you can earn up to a certain amount before you need to register for VAT. The current threshold is £85,000. If you plan to sell more than this amount, you will need to register for VAT. As a limited company, the threshold is the same, but you can claim back VAT on your purchases.
Converting from Sole Trader to Limited Company
If you start as a sole trader and want to convert to a limited company, it is possible. However, the process can be complicated. It is recommended to seek professional advice and follow the guidelines provided by Amazon.
Wholesale Route and Limited Company
If you plan to go down the wholesale route, it is recommended to register as a limited company. This will give you a more professional image and make it easier to deal with suppliers and manufacturers. It will also allow you to claim back VAT on your purchases.
Taxes for Individual and Company Accounts
It is important to pay taxes on your Amazon FBA business. If you have an individual seller account, you will need to pay taxes on the profits you make. If you have a professional Amazon account, you will need to pay taxes on the profits your business makes. It is recommended to seek professional advice and ensure that you are compliant with tax laws.
The Story Behind Seller Circle
Seller Circle is a community that teaches new beginner sellers how to get started selling on Amazon. It provides a platform for sellers to learn, network, and grow their businesses. The founder of Seller Circle started the business to fill a gap in the market and provide transparent, legitimate advice for new sellers.
Future Plans for Seller Circle
Seller Circle has many plans for the future, including events, new courses, and partnerships with other Amazon businesses. It is constantly evolving and improving to provide the best possible service for its members.
Moving from Online Retail Arbitrage to Wholesale
There is no set timeline for moving from online retail arbitrage to wholesale. It depends on the individual and their goals. However, it is possible to start wholesaling from the beginning if you have the capital and desire to do so. Seller Circle provides a comprehensive wholesale mentorship program for those interested in wholesaling.
Delivering Wholesale Items to Residential Addresses
It is possible to have wholesale items delivered to a residential address. However, it is recommended to have a commercial address, such as a small storage unit or warehouse, to receive and store the items. Some brands and suppliers may not deliver to residential addresses, so it is important to check their policies before ordering.
Conclusion
Starting an Amazon FBA business can be overwhelming, but with the right guidance and knowledge, it can be a profitable venture. It is important to weigh the pros and cons of each option and seek professional advice when necessary. Seller Circle provides a platform for new sellers to learn, network, and grow their businesses.
Resources
- Seller Circle website: https://www.sellerscircle.co.uk/
- Amazon FBA website: https://services.amazon.co.uk/services/fulfilment-by-amazon/benefits.html
