How To Sell On Amazon Globally?-A Solution

Amazon is a fastest growing ecommerce platform. Almost  1 Lac Indians start selling on Amazon Globally. Sell on Amazon globally is now everyone’s cup of tea. Amazon made exporting easy. Because of Amazon You can easily sell on Amazon globally anytime anywhere. It provides various tools and services to reach the Audience world wide.

What is Amazon Global Selling?

It is a selling program started by Amazon. It gives a chance to Amazon sellers to sell their products in the global market. Amazon Provides them an authentic audience in the global market and allows them to earn and grow globally. Many businessmen started sell on Amazon globally.

Steps to sell Product on Amazon Globally

1. Decide Country
The first step to sell on Amazon globally is to select the appropriate country in which to sell your product. You’ll need to invest some time in learning about market demand then only you can hit the right country and potential customers.

2. Register & Product Listing
Register to the sell on Amazon globally account  https://sell.amazon.com/global-selling/  and list your products. Product Listing is the same as you do on a national seller account. You have to keep in mind to include good quality of pictures, use golden keywords in product titles and descriptions and it should be easily accessible to the users.

3. Export Documentation

After deciding on a country, the next step to sell on Amazon globally is to prepare the documents needed to export your product. When it comes to sell on Amazon globally, it becomes a much bigger responsibility. When you sell on Amazon globally, you become India’s representative in the global market, and if you don’t have proper documentation, it will harm not only your business but also the country’s reputation. As a result, you must take care of documentation.

4. Shipment Payment
Trust is essential for any successful business. Furthermore, the step to sell on Amazon globally is to earn your customers’ trust. you must make timely deliveries. Timely delivery not only fosters trust, but also leads to additional and repeat purchases.

Documents Required to Sell On Amazon Globally

As previously stated, proper documentation is required when selling on Amazon globally. Amazon has thoroughly explained each and every document required to sell on Amazon globally.

1. Export Registration

There are certain formalities which you need to fulfill while exporting products.

• IEC Code: The Importer Exporter Code(IEC) is an essential element of any business when it comes to sell on Amazon globally. The Director General of Foreign Trade (DGFT) allocates this code so that exporters can take advantage of the Foreign Export Trade Scheme.
• AD Code: Authorized Dealer(AD) codes are unique 14-digit codes assigned to foreign exchange dealers by banks. RBI assigns the AD code to banks, and sellers must obtain it from the same bank account in which they have their current business account. It must be submitted at the port where the goods will be exported by the customer. This code will help to keep a track of export transactions.
  AD code is necessary for generating shipment invoice and for custom clearance. It also helps to avail government benefits related to exports. AD code has a lifetime validity. It is most important document when we sell on Amazon globally.
• Letter of Undertaking : A letter of undertaking (LUT) is a document that protects business owners from IGST. LUT enables them to sell zero-rated products without incurring any export taxes. Without a LUT exporter, they must pay the IGST to sell on Amazon globally and then strive for a refund when filing returns.

LUT enables exporters a hassle free exporting of goods from tax payments and claim of tax refunds.

2.  Product Documentation

Amazon has specified some product categories to sell on Amazon globally. You have to select your product category from the drop down section. When you select your product, it will describe the mandatory and recommended documentation for your product. To avoid last-minute export issues, you must prepare all documents in advance.

3. Shipping Documentation

There are 2 modes of shipment through which you can sell on Amazon globally.
a. Courier Services: Exporters can use this method if the shipment value is less than INR 5 lac. Exporters can’t avail any benefits of export incentives like duty, EPCG(Export Promotion Capital Good).

b. Cargo service: There is no such limit of shipment value to use cargo services. This shipment service gives a chance to avail export incentives.

In order to ship a product, certain documents must be submitted.

Your product may necessitate the submission of additional documents.

FBA shipment mode is also there to successfully deliver your product while you sell on Amazon globally.

4. Payment Settlements

Several regulations govern export in India while sell on amazon globally, including the Foreign Exchange Management Act of 1999, the Foreign Exchange Management (Current Account Transactions) Rules of 2000, and the Foreign Exchange Management (Export of Goods and Services) Regulations of 2015. Every exporter in India is required to follow such regulations.

Resettlement and Accomplishment of Export Proceeds:

Exporters have been required to disclose the value of the goods to be exported. If determining the full value of the products at the time of export is not possible, the exporter must determine the fair market value of the goods to be outsourced (at the time of export).

Exporters must adhere to the following time limits for the realization and repatriation of goods and services:

The average time for reinstatement and accomplishment of goods is 9 months from the date of export. However, the above timeline would be determined on a case-by-case basis by the RBI. The RBI had also set the following timetables:
1. As soon as goods are exported to a storage facility established outside of India (within India), the RBI must allow the authorized dealer bank to receive the worth of the goods sold as soon as it is made known, but no later than 15 months after shipment (unless the RBI has advised the Government of India otherwise).

2. Exporters must submit the proof of payment received. After receiving all the payment they have to submit their shipment bills or export documents to the bank.

5. Tax Documentation

According to Central Board of Indirect taxes & Customs, some products that are exported from India are free from GST in certain condition:

Exporter has two method of paying GST:

a. With LUT 

To sell on Amazon globally you can apply on the GST portal for LUT every financial year. They generated a GST free portal and letter of acknowledgement and gave it to the logistic partners. You are not required to pay IGST if you have this letter.

b. Without LUT

 Without LUT you have to show you GST on the export invoice and it must be included in the shipment bill. While filing a GST return, exporters can claim it as input tax credited by the exporter.

E-commerce is vast network these day. Now you don’t have to look for an offline store because ecommerce is an emerging global marketplace today.

Conclusion

All the details required to sell on Amazon globally are mentioned below. If you have any issue related to sell on Amazon globally documentation then you can easily find your answer in this blog. Hope this information will be beneficial for you.

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