Similar to any other country in Europe, Slovenia is a place where the e-commerce sector is captivating wider and wider audiences. Thanks to the multiple advantages that it provides in terms of speed and cost reduction, online enterprises increased in popularity in Slovenia.
Businessmen who are considering selling goods through the online environment can start an Amazon store in this country. One of our specialists in company formation in Slovenia can give you details on the way this type of enterprise works, so that you can profit from this attractive facility provided by the large American company.
What to consider when opening an Amazon store in Slovenia
There are several aspects to consider when setting up a store in Slovenia with the purpose of selling goods on Amazon. Among these, we can mention the following:
- it is possible for both local and foreign investors to register a company in Slovenia in order to start an online business;
- compared to other online companies, the future owner no longer requires registering a domain name when selling on Amazon;
- once the company is set up, one will need to create an Amazon account depending on the type of structure selected;
- the creation of a merchant account to allow online payments is mandatory for this type of business.
Having an Amazon business is currently one of the most advantageous ways of doing business, so if you intend to open a company in Slovenia for this purpose, our advisors can help you.
Why open an Amazon store in Slovenia?
Slovenia has already been included for a long time in the list of countries accepted to sell on Amazon. Investors in this country consider very seriously the option to open an Amazon store, not only because of the easiness of the process, but also because of the state policies which encourage the development of the online market.
The Slovenian taxes, which are lower than in other European countries, as well as the huge visibility of the Amazon website determine investors to use the e-retailer platform provided by Amazon and reach their consumers as fast as possible. Our team of consultants in company formation in Slovenia can offer advice on the main procedures that are needed in this case.
Another important aspect you should know about the Amazon store platform is that it provides secure payments. The Paypal platform can be used by your customers to buy your products online. In order to employ this service you need to set up a bank account with a Slovenian bank. Our consultants can give you more details on the steps of setting up a company in Slovenia and can help you open a bank account in this country.
Registering an Amazon business in Slovenia
In order to be able to sell on Amazon you will need first to register your company with the local business register. Our team of consultants can help you choose the appropriate legal structure for your enterprise and to gather the documents for registration, but it is important to know that most of thecommercial businessesset up in this country (which operate as small to medium-sized) usually prefer as a legal entity the limited liability company.
Businessmen who want to open a company in Slovenia through an Amazon store will need to create an account on the company’s website. In order to do so, please note that specific company documents can be requested by Amazon, as well as proof on the business licenses the applicant company has. Depending on the legal entity of the company, Amazon can request the following documents:
- • documents attesting the company’s trading name and thecompany’s registered office;
- • the company’s certificate of incorporation and thecompany’s business plan;
- • in the case in which your Slovenian company operates as a partnership, it is necessary to provide the partnership deed;
- • persons who are registered as sole traders are also required to providepersonal identification documents.
Businessmen should know that Amazon will create an account for your Slovenian business in 3 days, provided that all the required documents do not contain any errors. However, if certaincompany detailsare not very clear, Amazon will send a feedback via e-mail, requesting further evidence on any issue.
The procedure of company formation in Slovenia requires the completion of several steps and, once the company was registered in this country, the documents that can be requested by Amazon should already be available for the investor registering an online store. Please note that there are specific differences in starting an online store on Amazon, based on the tax residence of the company.
For example, in the case of businesses operating in Europe, which is also the case of Slovenia, Amazon requires companies to provide the company’s tax information and the company’s value added tax (VAT) number. It is important to know that the registration with the platform is not bound by the existence of a VAT number (Amazon allows this), but the VAT number will eventually be necessary once the company starts selling its products in Europe.
How can a Slovenian business obtain a VAT number?
In order to sell through Amazon in European countries, the online business must be the holder of a VAT number. Please note that the company must select the European countries where it wants to have its products delivered through Amazon, following the procedures imposed by the online retailer.
According to the Slovenian legislation, businesses that sell their products through the online environment are required to register for VAT in Slovenia once their annual sales reach a value of EUR 35,000 (sold to Slovenian citizens). The VAT registration is necessary for both companies registered in Slovenia, as well as for foreign companies selling their products on the Slovenian market.
The standard VAT number in Slovenia is formed by the country code SI and a code formed from 8 characters (in the form of digits); the VAT rates that will be imposed to online businesses will depend on the types of products that they sell on the local market.
Thus, it is necessary to know that Slovenia imposes a standard VAT rate of 22%, which is applicable to most of the goods traded on the local market, but companies can also benefit from a reduced VAT rate, of 9,5%, applicable to products such as books, foodstuffs, certain types of medical devices, clothes, household goods and other; our team of consultants in company registration in Slovenia can provide more information on the VAT rates applicable here.
As a VAT payer in Slovenia, the company also needs to comply with various accounting procedures, and this is applicable to both natural persons and legal entities liable to this tax. The forms that must be submitted by VAT payers are available at the country’s tax regulator, the Financial Administration. The submission of the VAT returns is free of charge and the delays in submitting the required papers will be charged with a fine, ranging from EUR 2,000 to EUR 125,000.
How to set up an Amazon account for a Slovenian business
One of the important steps to complete when selling goods on Amazon is to create an account with the retailer. There are two types of accounts that can be created, called seller accounts.
A Slovenian business owner can create an Amazon account as an individual or as a company. It should be noted that when selling goods on this platform as a natural person, one is recommended to register as a sole trader in Slovenia in order to obtain a VAT number. Individual accounts are recommended for those who sell less than 35 products per month.
When selling goods on Amazon as a company, a monthly subscription must be paid, however, the amount of money required is quite low, around 25 euros. Also, Slovenian companies have the possibility of selling on the Amazon UK platform or on the European marketplace.
The main ways of selling goods through Amazon
There are two ways through which a Slovenian company can sell goods through an Amazon store. The first one is as a reseller which implies finding the most sought goods on the platform and selling them through their stores. The second one is private labeling which implies selling goods produced by the respective company. Even if privately branded goods imply more investment, it should be noted that these usually thrive on Amazon.
An advantage of selling goods on Amazon is that the Slovenian company can send the goods to the platform which will be in charge of the fulfillment procedures. These imply, storage, packing and dispatching.
If you are interested in starting a business in Slovenia in order to sell on Amazon, our local consultants can guide you.
What are the advantages of starting an Amazon store?
Besides the fact that the company will be able to access a larger consumer market than in the case of businesses carried out through a brick and mortar shop, the customers can purchase your products at any given hour, from basically any location across the world.
Another advantage refers to thebusiness start-up costs that are available in this case, which are considerably lower when compared to a traditional shop. Amazon offers the possibility of creating different types of accounts, which can be selected depending on the volumes estimated for sale through the online shop.
In this sense, persons operating a business in their own name can register as through an individual account, which is a type of account for those who estimate that will sell less than 40 items a month. For businesses which expect larger volumes in sales, Amazon has a special account, created for those selling as professionals. The difference between the two types of accounts is given by the fee system applied by the Amazon platform.
Why sell products through the Amazon platform?
Amazon represents the largest e-commerce platform available at a global level, with annual sales that represent the value of sales of other major e-commerce platforms combined. Having an Amazon store provides the opportunity of reaching the global consumer market and this can help a business expand at a very rapid pace. Businessmen considering to start a company in Slovenia through an Amazon store should know that the platform’s popularity is given by the following data:
- • as a general rule, the Amazon platform is accessed on a monthly basis by approximately 197 million people around the world;
- • the consumers, regardless of where they are in the world, have a high level of trust in this platform (89% of all the buyers included in a US survey formed from more than 2,000 persons);
- • in 2018, the Amazon share in the American e-commerce sector accounted for 49%;
- • in 2018, there were 95 million persons owning an Amazon prime membership (in the US);
- • at the level of March 2019, the number of persons with an Amazon prime membership increased at 103 million;
- • at the level of April 2019, Amazon had a total of 119,928,851 products;
- • the largest category of products is represented by books, accounting for 44,2 million products;
- • electronics represent the second most important category of goods, accounting for 10,1 million.
With regards to the company’s prime members, it is necessary to know that the yearly spending per person is estimated at $1,000 (or approximately EUR 902). Currently, the largest audience of the website is represented by the generation known as Millennials. Another interesting fact about Amazon is that most of the online shoppers (9 out of 10) prefer to check the prices of various products on Amazon first, in order to discover which is the best place from where they can purchase a product they want.
If you are not a resident of Slovenia you will need to obtain a tax number before being able to open your Amazon store in this country. Feel free to contact our experts in company registration in Slovenia, who can explain to you in detail all the provisions regarding companies legislation in this country.