UK/EU Market

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Nightfly
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UK/EU Market

Post by Nightfly » Tue Jul 10, 2018 8:35 pm

Hey there!

Does anyone here have any experience with the UK/EU market? I'm in the very early stages of my FBA journey but am a UK based seller looking to sell in the UK then branch into EU if it becomes successful. I'm weighing up the pros and cons of US vs UK at the minute and would love to hear others' experience if there is anyone more experienced than me which is pretty easy at this point!

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Crescent
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Re: UK/EU Market

Post by Crescent » Wed Jul 11, 2018 4:31 pm

The pros of selling in the UK markeplace is that it's local to you and you're probably a bit more familiar with the type of products that are popular there. There is also a lot less competition since the marketplace is smaller. The drawback is that the marketplace is smaller compared to the US. There's far less buyers and volume. I would personally recommend selling in the US marketplace simply because the market is so much larger.
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Nightfly
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Re: UK/EU Market

Post by Nightfly » Wed Jul 11, 2018 8:20 pm

Thanks for the response man. Not to mention we pay 20% VAT on imported goods and on the fees themselves (pick and pack and referral fees!) so it can quickly eat into your margins.

At the minute I'm seeing the differences as such:
USA - Massive competition but with equally massive market depth and cheaper import and selling fees.
UK - Limited competition but with equally limited market depth and more expensive import and sales fees (unless you're VAT registered). Then when you are VAT registered (after revenue is over £85k) you then have to give 20% of the sales price to the government but can claim back VAT charged on imported goods.

I've not factored in Sales Tax in the US as it seems that the requirements are fuzzy even for US residents but importing to the US would reduce my COGS massively. Will do some more digging and report back on what I decide to do in case it helps others!

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Crescent
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Re: UK/EU Market

Post by Crescent » Wed Jul 11, 2018 8:23 pm

You're welcome. I'm not sure how VAT works as far as pricing of products but usually, if there are universal fees that affect everyone in the country, you can add that fee to your sales price to make up it.
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