Tips and Advice for New Sellers
I don’t know about everyone else, but I’ve been seeing some definite trends in the sort of questions that are coming up recently.
So thought I’d try and post a bit of a simple summary for many of the repeat questions from new sellers.
1. YES, you have to pay tax.
Before you start selling (unless you’re just selling your grandma’s old slippers), you need to register with HMRC, and declare that you’re a business.
They’ll give you a UTR, and you’ll need to give this to Amazon.
2. You ARE a business.
Even if it’s just you, sat in your PJ’s in your own living room, if you’re buying stuff to sell, then you’re a business. This isn’t an ‘Amazon’ issue, it’s what the law says.
3. VAT isn’t ‘optional’ if you don’t live in the UK
If you’re sat reading this outside the UK, then you’re a NETP.
Even if you own a UK Ltd Company, you’re a NETP.
There isn’t an exemption, a threshold, or a limit before you have to register.
If you have a single item that’s sat in a UK warehouse (Amazon or not), then you need to be VAT registered in the UK.
4. China is not in the UK / EU
If you’re importing stuff, you’re taking 1000% of the responsibility for it.
Also… Google ‘UK Import Taxes’ before you start.
5. The UK isn’t in the EU
GB is England + Scotland + Wales
UK is GB + NORTHERN Ireland (NI)
The UK left the EU… GB is definitely out of the EU now, but NI sort of is, sort of isn’t.
If you’re using FBA, for now, your technically still accessing an EU market (because of NI)
If you’re FBM, there’s more control.
6. Insurance isn’t optional.
See point 2… You are a business. You are liable. You need insurance.
7. Ltd Companies and Sole Trader are completely different things.
Do your research, there’s MUCH more involved in being a Ltd for most people.
8. YouTube and Instagram are not reliable
If I’m making £1,000,000 a year selling on Amazon, why would I be spending any time at all telling you how to do the same, for free?
9. Have a UK-Based accountant, at least on standby.
Unless you’ve been doing your own accounts since you were a toddler, they’re more complicated than you might think.
You can do them yourself, but HMRC are quite unforgiving.
If you’re a Ltd Company, it’s ‘almost’ mandatory, as you won’t be able to get credit/ mortgages etc… Without a statement from your accountant.
If your accountant lives in Venezuela, they know less about UK tax laws than some of our recent Prime Ministers.
10. The people answering your questions on the forums are also YOU.
Unless they are a moderator (which is clear from their username) you are speaking to other sellers, not directly to Amazon. Be civil with them, they’ve got no reason at all to help you apart from goodwill. If you think they’re mistaken / talking nonsense then explain why, as with Social Media, “Joe down the pub” is an unreliable source.
11. NO, you can’t just buy stuff from a retail shop, and sell it to make a profit.
That’s called ‘Retail Arbitrage’, unless you bought the product wholesale you can only sell it as ‘Used’. There’s a whole complicated (and ‘Legal’) bunch of reasons involving warranties, manufacturers, etc… But the simplest reason here is that Amazon WILL NOT ACCEPT RETAIL RECEIPTS. At some point you will be asked to provide proof of authenticity, and you won’t have it.
12. Just because they can, doesn’t mean you can.
It doesn’t matter if there are 20 sellers already doing something, selling something, using a tactic, etc… If you do it, and it’s against any policy, pointing out that others do it will not help your case, at all.
13. ‘Support’ can make things worse.
100% an Amazon related issue here, but you might think that Seller Support will be able to fix / advise / see the logic of your request… They rarely do. Most long term sellers on here consider contacting seller support to be almost a last-resort measure. You may / may not get an understandable answer, and they may / may not just make the problem worse.
14. Check the EANs
Think of the EAN as the barcode. It’s a global ID (literally applies around the entire world). If the product your selling has a barcode on it, then it needs to match the details held by GS1 EXACTLY. If GS1 shows the product is a Hammer, and you’ve got a Rubber Chicken in your hand there’s an issue. Selling that on Amazon is going to cause you a problem (maybe not today, maybe not tomorrow, but soon, and for the rest of your account-life).
15. Know your acronyms
If you don’t recognise / fully understand any of the words used here… GS1, ASIN, EAN, UK, EU, HMRC, UTR, NETP, etc… etc… Look them up. Come back when you know what they mean or you’re probably going to end up in trouble.
16. There is no RESET button
This isn’t a game. You can’t just start over and do it again. If you make a mess, that mess stays with you almost forever. In 50 years time, your grandkids will still be talking about the time you listed a ‘Toy Hammer’ under the ‘DIY’ browse node to try and evade the restrictions. You can’t delete your seller account and create a new one, and you might not be able to ‘fix’ the problem that you’ve caused. Sometimes there isn’t an answer that you’re going to be happy about.
17. Watch out for the Battle of the Brands
‘BrandX’ and ‘Brand-X’ are not the same, whatever you’re selling must be EXACTLY what is shown on the listing (and see point 14). Just because it looks the same, smells the same, and possibly even came out of the same factory, on the same day as that other item, it is NOT LEGALLY THE SAME. An IPO trademark is a legal differentiator, they’re enforceable, and you WILL end up with an account defect.
18. Drop the DropShipping
It’s really just not worth it in the long run. The pitfalls are similar to Retail Arbitrage (see point 11). If you don’t have the product you’re selling in your hand (or in a UK warehouse with you’re name already attached to it, and ready to go) then you can’t sell it.
19. ‘Professional’ doesn’t necessarily mean what you think it means.
When you sing up for your account, you get asked what type of account you need (refer to point 2), don’t pick ‘Individual’ unless you’re not in this to make money. But you’ll also get offered a ‘Professional Selling Plan’ that’s got nothing to do with declaring that you’re a business, and just changes how the fees are applied when you sell something. The two questions aren’t mutually exclusive, pick carefully.
20. Legal / Compliance Ignorance isn’t bliss
As per point 2, you are in business. That means you are taking responsibility for your decisions, actions, customers, legal requirements, etc… etc… AND that you are reading the contracts & policies you signed or agreed to. If something goes wrong and you only have the “I didn’t know” defence, it’s a very weak defence. Most of the rights you may be used to having as a consumer DO NOT APPLY TO BUSINESSES.
15/03: Edited to add 10 - 13
16/03: Edited to add 14 - 20, and improved formatting
…I’m sure there’s still more
Tips and Advice for New Sellers
I don’t know about everyone else, but I’ve been seeing some definite trends in the sort of questions that are coming up recently.
So thought I’d try and post a bit of a simple summary for many of the repeat questions from new sellers.
1. YES, you have to pay tax.
Before you start selling (unless you’re just selling your grandma’s old slippers), you need to register with HMRC, and declare that you’re a business.
They’ll give you a UTR, and you’ll need to give this to Amazon.
2. You ARE a business.
Even if it’s just you, sat in your PJ’s in your own living room, if you’re buying stuff to sell, then you’re a business. This isn’t an ‘Amazon’ issue, it’s what the law says.
3. VAT isn’t ‘optional’ if you don’t live in the UK
If you’re sat reading this outside the UK, then you’re a NETP.
Even if you own a UK Ltd Company, you’re a NETP.
There isn’t an exemption, a threshold, or a limit before you have to register.
If you have a single item that’s sat in a UK warehouse (Amazon or not), then you need to be VAT registered in the UK.
4. China is not in the UK / EU
If you’re importing stuff, you’re taking 1000% of the responsibility for it.
Also… Google ‘UK Import Taxes’ before you start.
5. The UK isn’t in the EU
GB is England + Scotland + Wales
UK is GB + NORTHERN Ireland (NI)
The UK left the EU… GB is definitely out of the EU now, but NI sort of is, sort of isn’t.
If you’re using FBA, for now, your technically still accessing an EU market (because of NI)
If you’re FBM, there’s more control.
6. Insurance isn’t optional.
See point 2… You are a business. You are liable. You need insurance.
7. Ltd Companies and Sole Trader are completely different things.
Do your research, there’s MUCH more involved in being a Ltd for most people.
8. YouTube and Instagram are not reliable
If I’m making £1,000,000 a year selling on Amazon, why would I be spending any time at all telling you how to do the same, for free?
9. Have a UK-Based accountant, at least on standby.
Unless you’ve been doing your own accounts since you were a toddler, they’re more complicated than you might think.
You can do them yourself, but HMRC are quite unforgiving.
If you’re a Ltd Company, it’s ‘almost’ mandatory, as you won’t be able to get credit/ mortgages etc… Without a statement from your accountant.
If your accountant lives in Venezuela, they know less about UK tax laws than some of our recent Prime Ministers.
10. The people answering your questions on the forums are also YOU.
Unless they are a moderator (which is clear from their username) you are speaking to other sellers, not directly to Amazon. Be civil with them, they’ve got no reason at all to help you apart from goodwill. If you think they’re mistaken / talking nonsense then explain why, as with Social Media, “Joe down the pub” is an unreliable source.
11. NO, you can’t just buy stuff from a retail shop, and sell it to make a profit.
That’s called ‘Retail Arbitrage’, unless you bought the product wholesale you can only sell it as ‘Used’. There’s a whole complicated (and ‘Legal’) bunch of reasons involving warranties, manufacturers, etc… But the simplest reason here is that Amazon WILL NOT ACCEPT RETAIL RECEIPTS. At some point you will be asked to provide proof of authenticity, and you won’t have it.
12. Just because they can, doesn’t mean you can.
It doesn’t matter if there are 20 sellers already doing something, selling something, using a tactic, etc… If you do it, and it’s against any policy, pointing out that others do it will not help your case, at all.
13. ‘Support’ can make things worse.
100% an Amazon related issue here, but you might think that Seller Support will be able to fix / advise / see the logic of your request… They rarely do. Most long term sellers on here consider contacting seller support to be almost a last-resort measure. You may / may not get an understandable answer, and they may / may not just make the problem worse.
14. Check the EANs
Think of the EAN as the barcode. It’s a global ID (literally applies around the entire world). If the product your selling has a barcode on it, then it needs to match the details held by GS1 EXACTLY. If GS1 shows the product is a Hammer, and you’ve got a Rubber Chicken in your hand there’s an issue. Selling that on Amazon is going to cause you a problem (maybe not today, maybe not tomorrow, but soon, and for the rest of your account-life).
15. Know your acronyms
If you don’t recognise / fully understand any of the words used here… GS1, ASIN, EAN, UK, EU, HMRC, UTR, NETP, etc… etc… Look them up. Come back when you know what they mean or you’re probably going to end up in trouble.
16. There is no RESET button
This isn’t a game. You can’t just start over and do it again. If you make a mess, that mess stays with you almost forever. In 50 years time, your grandkids will still be talking about the time you listed a ‘Toy Hammer’ under the ‘DIY’ browse node to try and evade the restrictions. You can’t delete your seller account and create a new one, and you might not be able to ‘fix’ the problem that you’ve caused. Sometimes there isn’t an answer that you’re going to be happy about.
17. Watch out for the Battle of the Brands
‘BrandX’ and ‘Brand-X’ are not the same, whatever you’re selling must be EXACTLY what is shown on the listing (and see point 14). Just because it looks the same, smells the same, and possibly even came out of the same factory, on the same day as that other item, it is NOT LEGALLY THE SAME. An IPO trademark is a legal differentiator, they’re enforceable, and you WILL end up with an account defect.
18. Drop the DropShipping
It’s really just not worth it in the long run. The pitfalls are similar to Retail Arbitrage (see point 11). If you don’t have the product you’re selling in your hand (or in a UK warehouse with you’re name already attached to it, and ready to go) then you can’t sell it.
19. ‘Professional’ doesn’t necessarily mean what you think it means.
When you sing up for your account, you get asked what type of account you need (refer to point 2), don’t pick ‘Individual’ unless you’re not in this to make money. But you’ll also get offered a ‘Professional Selling Plan’ that’s got nothing to do with declaring that you’re a business, and just changes how the fees are applied when you sell something. The two questions aren’t mutually exclusive, pick carefully.
20. Legal / Compliance Ignorance isn’t bliss
As per point 2, you are in business. That means you are taking responsibility for your decisions, actions, customers, legal requirements, etc… etc… AND that you are reading the contracts & policies you signed or agreed to. If something goes wrong and you only have the “I didn’t know” defence, it’s a very weak defence. Most of the rights you may be used to having as a consumer DO NOT APPLY TO BUSINESSES.
15/03: Edited to add 10 - 13
16/03: Edited to add 14 - 20, and improved formatting
…I’m sure there’s still more
0 replies
Seller_7VbclcPFFRTnc
Bookmarked 
Maybe @Jessica could add this to quick tips section 
Seller_77IcbQKVGdZo0
I have seen the same trends.
It is worrying that some sellers are coming onto Amazon with no idea of how to run a business. It is also worrying some do not know their responsibilities when setting up a Limited Company.
It is exhausting reading the threads and realising what a pickle some sellers are in.
Seller_DROodOAYHftnc
Yes, and at the end of the day it is us that are giving out much of the advice to help them, as most of the Account Health info is simply cut and paste from Amazon’s own info/Seller University.
Seller_j2BZBNIebhRVl
Let’s hope the new sellers will actually read this post before coming here with the problems! This post should be pinned on the top of “Help for new sellers” section.
For months now every time I open Google, YT, or any social media ( not that I do so often ), there are a few posts/videos/articles on how to start selling on Amazon with low investment and make a ton of money without working much, so you can quit your job within a few months and travel the world.
These boards are full of new sellers without a clue what they are doing and I am amazed at the patience of some of the regular posters.
Seller_wqciCXuQbNS4p
And I absolutely take my virtual hat off to all of the good, frequent posters who have the patience and tenacity to help some of the offenders, I most certainly don’t have the patience.
Without you guys the newbies would really be in trouble.
Seller_wqciCXuQbNS4p
Likewise, Pakistan is not in the UK/EU…
Seller_fMsCVAHNu4txH
Edited the original post, to add a few of 3veryones comments.
Seller_DROodOAYHftnc
All very good, but the main problem I see here is that by the time new sellers are reading these ‘tips’ they have already signed up to an account, very often the wrong legal entity, and the paid selling plan, possibly global, not VAT registered if live overseas, and not registered with HMRC yet already bought their stock from China and sent to FBA etc.etc.etc, so they still come here asking the same old questions and then have endless problems to sort out to get their accounts reactivated.
All this stuff needs to be on the FIRST page BEFORE even clicking on anything to start selling.
Seller_cfezpmKDByqFg
Also might help that you should have an understanding of basic accounting to understand if you are actually going to make a profit.
