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Open an Amazon Store in Croatia

Open an Amazon Store in Croatia

Placing a business on Amazon, the largest online retail company in the world according to the registered profit, can be an excellent expansion opportunity for investors in Croatia. There are numerous internet users who prefer online purchases today, therefore, investing in this field can be the key to success. Companies interested in expanding their portfolios can set up their stores on Amazon, a matter where our company formation agents in Croatia can help with documents preparation.

Amazon in numbers

Establish in the USA in 1994, Amazon became the largest online mall which serves customers worldwide through the representative offices placed in numerous countries and varied products and services with quality guaranteed. In the beginning, Amazon was an online bookshop but later decided to expand the areas of interest and focus on selling different items like audiobooks, video games, software, electronics, furniture, clothes, jewelry, and even food by acquiring in 2017 Whole Foods Market, an American supermarket chain.

The online platform registered around $316 billion in 2016, a number which was surpassed by the end of 2017 with the help of the shopping sessions dedicated to this time of the year. Numerous companies or entrepreneurs register on a daily basis on Amazon, the account number being over 300 at this moment.

One should know that for placing his/her activities on Amazon, a registered limited liability company is necessary, in order to issue invoices and legally sell the products and services. If you already have a registered company, you can work on a website to promote your services and then focus on how your company can generate revenues on Amazon.

Steps in opening an Amazon store in Croatia

Before setting up an Amazon shop in Croatia, one must register a limited liability company with a minimum share capital of about EUR 2,500 deposited in a Croatian bank account. Even one person can be registered as the owner or shareholder of an LLC in Croatia if all the requirements in this matter are respected.

As soon as the incorporation certificate is issued, alongside the special licenses and permits which allow you to activate in the chosen domain, you can develop your store on Amazon. Our Croatian team of company formation consultants is at your disposal with information and support when registering an LLC in Croatia, in order to set up the Amazon store.

When choosing accounting services, you should know that payroll in Croatia is among the most important. The preparation of salaries, the payment of taxes in this matter, and the distribution of payments come under the attention of our specialists. We thus recommend you discover our services and benefit from personalized offers, depending on the businesses you have in Croatia.

Payment methods for your Amazon store in Croatia

Just like for any type of online shop, one must set up the payment methods for the Amazon store, and provide to the customers the possibility of purchasing the wanted items. A PayPal account can be a suitable option, as it is a well-known trustworthy payment platform worldwide. A business PayPal account is easy to set up and can be connected to your business bank account, meaning that the money for the sold items can be settled instantly through your PayPal.

Another payment method that is extensively used is the merchant account which allows clients to pay for the products by using debit and credit cards. This is also linked to the bank account of your business, and furthermore, it is a secured payment method. Please consider that for opening an Amazon store in Croatia, one needs to offer the clients the possibility of viewing the items in their own currency, as the business can be promoted in many countries around the world.

Short steps to follow when opening an Amazon store in Croatia

There are specific conditions to bear in mind when establishing an Amazon store, and here are the main steps to follow:

  1. Listing the products – the Amazon marketplace offers the possibility of listing bulk items using specific tools.
  2. The bank account – all of the paid orders will be announced via email.
  3. The shipment – you can simply handle the shipping, or you can choose Amazon for this task;
  4. Getting paid – Amazon is entitled to deposit the payment into your bank account.

It is important to have complete support offered by a team of professionals, therefore, do not hesitate to get in touch with our company incorporation representatives in Croatia and find out more about the conditions involved for an Amazon store.

How to advertise your business on Amazon

Once having a business on Amazon, it is important to bear in mind the ways in which your products and services can be advertised. Amazon offers support in this sense and helps businesses reach clients by implementing all kinds of tools and make the products visible on the first page. Sponsored products that appear on search result panels, sponsored brands showing product portfolio, and multipage shopping destinations for individual brands are three important advertising services that Amazon offers. The brand logo, the visibility of the products and the brand history are advertised on Amazon through varied methods and algorithms.

There are numerous chances to grow your business on Amazon as a foreign entrepreneur in Croatia, and you can choose the limited liability company as the simplest form of business with easy registration and fewer formalities. Let our team of company formation specialists in Croatia tell you more about how you can start a business in Croatia through an Amazon store.

What are the benefits of selling your products on Amazon?

Even though there are many companies placed on Amazon, there are many chances for you to find new customers. In this direction, the advertising tools offered by Amazon are extremely important, therefore, you might want to read the general conditions in order to properly use all the advertising methods to increase your awareness on the online store.

Small and medium companies have a wide range of development opportunities while listed on Amazon, and such businesses might grow quite fast, thanks to the well-known and appreciated platform on an international scale. Domestic and foreign entrepreneurs looking for business in Croatia should think of other possibilities too, besides simply opening a company in this country. This means that they can consider opening an Amazon store without thinking of harsh requirements in this matter. Let our company incorporation agents in Croatia tell you more about how to start a business in this country.

Business startup costs in Croatia

Foreign entrepreneurs should weigh the startup costs for opening a company in Croatia and then consider any additional fees for placing the business on Amazon.  Here are a few costs to consider:

  • • The notary fees for opening such an entity like the company registration costs of around EUR 90 plus VAT and EUR 550 plus VAT for drafting and notarizing the Articles of Association are among the startup costs for a business in Croatia. 
  • • EUR 2,500 represents the minimum share capital for establishing a limited liability company in Croatia. 
  • • Approximately EUR 20 are necessary for the company seal and represent another important startup cost. 
  • • Croatia imposes a VAT rate of 25% for most of the goods and services meant for sale purposes and a lower VAT rate of 13% for dairy products, medicines, medical supplies, newspapers, and magazines. As for the corporate income tax, this is set at 18%. Let our team of consultants tell you more about the taxation of companies in Croatia.

Amazon selling plans and fees

Approximately $40 plus specific selling fees are imposed for companies that sell their products on Amazon. You might want to consider the referral fee of around $1 which is applicable to each item sold on Amazon. A variable closing fee is normally imposed for professional sellers on Amazon, plus the shipping credits which depend on the type of the chosen transportation method. All the information consisting of applicable fees for having a store on Amazon can be found on the platform, however, if you want in-depth details, feel free to get in touch with our team.

Choosing Amazon for business development

Even if your company in Croatia is successful, the business direction can expand even more by creating an Amazon store. This will help entrepreneurs gain visibility and awareness on the international market, and also future important clients. Once you have decided for opening an Amazon store, you should also consider the necessity of creating or renting a storage place from which your goods will be shipped. Foreign business persons interested in opening a shop on the largest online retail platform can also direct the attention to the local workforce for the main departments in the company: human resources, marketing, financial, delivery and so on. We remind that the Croatian authorities encourage foreign investments, whether direct or indirect, by offering important and beneficial incentives related to the tax regime in the business environment.

If you want to set up an Amazon shop, please feel free to contact our company incorporation agents in Croatia.