Open an Amazon Store in Czech Republic

Updated on Monday 27th May 2019

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The Czech Republic is a market full of business opportunities for entrepreneurs worldwide. E-commerce makes no exception in the business field, as numerous companies choose to sell their goods and services on the internet. In addition to the existing website, a business person can expand his/her activities on an international plan by setting up an Amazon store in the Czech Republic. Even though in many cases there is no need for a particular introduction, we mention that Amazon is the largest online shop, with a great success around the world, if we mention that at this moment there are around 300 million account owners and counting. The net sales registered in 2016 was of about $316 billion. If you want to set up an Amazon store in the Czech Republic, please consider that first, you must register a limited liability company through which you may sell products on the internet. In compliance with the legislation in the country, our Czech lawyers can offer legal support in company registration.

Conditions to open an Amazon store in Czech Republic

An Amazon store can be a suitable option for business persons to start their activities and generate money in their area of interests. Legally, a person can place his/her products on Amazon for sale purposes once a company in Czech Republic has been registered. As a suggestion, a limited liability company can be easily set up as soon as a unique name has been chosen, and the minimum share capital of about EUR 8,000 (Czech Koruna 200,000) has been deposited in a bank account in the Czech Republic. LLCs are the preferred form of business in the country, due to less bureaucracy, easy steps of incorporation and varied benefits. Please keep in mind that for selling particular types of goods on your Amazon store, you might have to apply for special permits and licenses with the authorities in Czech Republic.

Payment methods for your Amazon store in Czech Republic

Any business with activities in online retail must provide customers with varied payment methods. Two of the most important solutions recommended for your Amazon store are:

• PayPal;
• a merchant account.

PayPal is a well-known online payment method through which clients can link their bank accounts in different currencies in order to pay online for different goods or services and also receive money. As for the merchant account, this is also an appreciated and used online payment method implemented by all shop registered on the internet. This method offers the buyer the possibility of payment for the chosen products with the help of a debit or credit card. In addition to the information above, we remind that our Czech attorneys can provide support in legal matters.

What is fulfillment by Amazon?

Those who want to start an Amazon store will have to consider a few important aspects regarding fulfillment. This means that retailers can send the products meant for sale to Amazon. The latter is in charge of storing, picking and shipping the products to customers worldwide. It is good to know that specific fees might apply for this kind of services, beside the ones related to the registration of the company on Amazon. Fulfillment by Amazon is considered a major advantage for the type of retailers who would rather skip such responsibilities and direct them to Amazon that can take care of them. All the legal aspects related to opening an Amazon store in Czech Republic can be explained by our Czech lawyers at any time. It is necessary to know all the rules and regulations of business formation in this country, especially if you are a foreign investor who doesn’t know the applicable legislation.

What can I sell on Amazon?

Mostly, you can sell anything on Amazon, but it is important to focus on the products of your company and create awareness about your brand on the internet. It is important to test the market right from the beginning and see the most popular products. Moreover, labeling will play a major role for the future direction of the business, but it is a step to consider at the beginning of company formation, before the business is established on Amazon. You might find interesting the Amazon app that provides information and tips about the most popular products and brands, in order for you to get an idea about the business intentions and future investments. Product reviews are also recommended for study, especially for small or young entrepreneurs who only want to sell on Amazon.

Scaling the Amazon store

Best Seller Rank or BRS as it is known is a very important tool for customers and retailers on Amazon. This involves several business evaluations and company growth direction during several months or years through which business owners can see what’s the best or the most sold product on Amazon. As for the customers, they can see the business development, mentioning that retailers will have to consider more products for sale, even if best sellers are top priority. Moreover, your company can be sustained by a website and can attract more buyers in time.

Selling on Amazon – what you need to know

Selling on Amazon is not complicated if you respect the business conditions. Moreover, there are numerous tips and details for retailers who want to create brand awareness and develop their business on Amazon. Here are a few things to consider when selling on Amazon:

There are no monthly subscriptions and no startup fees on Amazon.
Specific fees apply only for completed sales on Amazon.
Amazon provides advertising services and can include your products in specific categories.
You don’t need to worry about packaging and transportation, as Amazon takes care of such aspects.

All the legal details about how to open an Amazon store in Czech Republic can be provided by our team of Czech lawyers.

Products on Amazon

Retailers can sell pretty much everything on Amazon, as long as they respect the Commercial Code and the Company Act in the Czech Republic, alongside the rules of the online store. Books, CDs, home appliances, electronics, ceramics, clothes, art products, DVDs, cosmetic products, pet supplies, software, toys, games, jewelry, musical instruments, power and hand tools, travel products, auto parts, office electronics and many more. As it is known, it is strictly forbidden to sell firearms, medicines and drugs on Amazon.

As for sale campaigns on Amazon, vendors can benefit from the services offered in this direction, mentioning that most of the products can be promoted with the help of discounts and advertising.

The benefits of opening an Amazon store in the Czech Republic

From a taxation point of view, the Czech Republic offers varied benefits among which we remind the reduced VAT for basic products and a corporate income tax of 5% for investments in the country. Opening an Amazon store in the Czech Republic may represent the proper business choice for both companies registered in the country and willing to expand their portfolios, and for entrepreneurs who want to establish their presence via the internet platforms, in our case, on Amazon.

Why open an Amazon store?

Entrepreneurs in Czech Republic who want to expand their businesses abroad can start thinking of selling on Amazon. This is a great option for small and medium entrepreneurs who would like to make investments and direct the attention to online retail stores like Amazon where the business growth is huge. It is recommended to ask for legal advice and assistance when it comes to the company documents solicited by Amazon and to the regulations involved. No matter the business type you want to develop in Czech Republic, feel free to ask our advisors any questions, if you are interested in opening an Amazon store.

If you want to open an Amazon store in Czech Republic, we suggest you contact our law firm in the Czech Republic.