Romanians’ sales on the Amazon platform have reached at least USD 50 million; the top 10 sellers performed sales of more than USD 25 million last year .
“Today, the Amazon platform is the simplest way to start an e-commerce business thanks to the resources it provides, since it is the largest retailer in the world. Through the FBA service, you will have a stock in the Amazon warehouses coming directly from the supplier, and the orders will be processed by the Amazon employees. This way, you will be able to manage your business from any place in which you have a computer and an internet connection. However, for the scaling independence and modalities, you will have to diversify your sales channels, but Amazon will be an important part of them” explained Sergiu Nichitean, the founder of the amazon-seller.ro community, for Mediafax.
A simple product launched on Amazon must be small, easy and with few moving parts. The sale price is recommended to be between USD 15 and 70. The situation of the niche is equally important; it has to have an as high as possible demand and a low as possible competition, according to Nichitean. The wrong choice of the niche is the highest risk for those who start a business in this new field. Home and kitchen, sports, outdoors, children, tools and pet products are in the top of the categories providing major business opportunities.
An Amazon seller has three ways of doing business: as an individual, as a Romanian company, or as a US company. The first option is recommended for those who are at the beginning of their business, since it involves less bureaucracy. In this case, listing your products on Amazon is similar with occasionally selling on OLX. Additional income must be declared in the Fiscal Statement 600 and the corresponding income tax must be paid.
The next step, after deciding what the type of your business is, recommended to those who wish to grow their business, is to establish a company either in Romania or in USA. Both options have benefits and disadvantages, and fees are paid to the state in which the company is established.