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Seller Circle | Guides
  • Platform Walkthrough
  • Discord Notification Settings
  • Introduction | Getting Started
    • FBM vs FBA | What Are The Differences
    • Getting Things Set Up
    • Post Amazon Account Set Up
    • Cashback Programme / Discount Extension
    • Hazmat Programme
    • Terms Glossary
  • Sending Inventory
    • Sending Inventory
      • Thermal Printer (Mac)
    • Explaining The Status of Your Products
  • Product Listings
    • Pricing Your Products
    • Amazon Buy-Box
    • Ungating Products
    • Stranded Inventory
  • Miscellaneous
    • Amazon-To-Amazon Leads
    • Amazon 2 Amazon EU
    • Amazon Support
    • Tesco Stock Checker
    • Account Health - Opening a Case
    • Best Sellers Rank [BSR]
    • Calculating Sales On a Variation Listing
    • Customer Returns | Removals | Missing Stock
    • EC Declaration of Conformity
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On this page
  • [1] Choosing Your Seller Plan
  • [2] Registering your business
  • [3] Creating an Amazon account
  • [4] Letter of Authorisation
  • [5] Creating a business bank account
  • [6] Sole trader to LTD conversion

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  1. Introduction | Getting Started

Getting Things Set Up

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Last updated 2 months ago

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[1] Choosing Your Seller Plan

Before you create your business you’ll need to decide which Amazon selling plan you’ll be using. Here you can see the comparison between both individual and professional selling plans.

  • Need to register as a Sole Trader or set up a Limited (Ltd) company

  • Charged ÂŁ30.00 / month (alongside FBA fees).

  • No limit to the number of units you can sell

  • Access to advertising and advanced selling tools

  • Can sell products in restricted categories

  • Access to the Buy Box

  • Don't need to register for Sole Trader or set up a Limited (Ltd) company

  • Only charged 90p per unit sold on Amazon (alongside FBA fees)

  • Can sell a maximum of 35 units per month

  • No access to advertising or advanced selling tools

  • Cannot sell products in restricted categories

  • Do not get access to the Buy Box

We'd advise most people to get started with a professional selling plan; that way you can sell unlimited products on Amazon, this also works out to be slightly cheaper each month.

If you choose to go for an individual plan you will not need to set up as a Sole Trader or Limited company, so you can skip the next step! If you choose to start with the professional plan, you will need to set up as either a Sole Trader or Limited company. You can always start as an individual and convert to a professional plan later down the line if you'd prefer.

Before getting started with setting things up, you must be over the age of 18 - You will not be able to create an Amazon seller account if you are under the age of 18.

[2] Registering your business

As we discussed above, if you choose to sell via a professional plan, you’ll need to register as a Sole Trader or Limited company. Firstly, we'll go over the advantaged and disadvantages of both. It's worth nothing that you are able to convert from being a Sole Trader to Limited company later down the line, however, this can require verification causing temporary account suspensions.

SellerCircle have partnered with Tide to ensure your business set up is as smooth as possible.

  • Costs ÂŁ14.99 through 'Tide' using code 'SELLERCIRCLE2' to set up as a Limited company, a huge ÂŁ35 saving compared to using Companies House directly.

  • A Limited Company can be set up in around a day once you have completed the relevant process via , meaning you’ll be able to start selling sooner, usually within 48 hours.

  • Generally, Limited companies are more tax efficient, especially if you already have a highly paid job.

  • Limited liability - an Ltd protects your personal finances (your personal finances and company finances are separate from one another). If you set up as a Sole Trader, there will be no legal distinction between your personal finances and the business finances. If you are looking to move from Arbitrage to Wholesale, or simply start with Wholesale, you'll want to have a Ltd company.

  • Completely free to register.

  • Can take anywhere from 2 to 4 weeks for your UTR (Unique Tax Reference) to arrive via post. You’ll need this to set up your Amazon account if you choose Sole Trader - hence there can be a delay in opening your Amazon account.

  • Generally, accountancy and taxes are simpler and sometimes cheaper to handle.

[3] Creating an Amazon account

Once you’ve completed the steps [1] and [2], obtained your UTR number via the post (Sole Trader), or your Ltd company registration number via email, you’ll be able to set up your Amazon account. So, let's get the ball rolling!

Make sure you are registering a new account, if you’ve had an account previously use this; Amazon are very strict on sellers having more than one account.

  1. Make sure you create a brand-new Gmail account to register your business. This should be a different email address than any pre-existing addresses which are linked to your personal Amazon buying account.

  2. Make sure you use the same information; addresses, names etc, as the information you've submitted on the Government website when incorporating/creating your business.

You'll be asked for your business type. If you're a sole trader, make sure to choose "Sole Proprietor", or if you're an LTD, make sure to choose "Privately-Owned Business".

Amazon will ask for some form of ID as well as proof of address - for this, you can use anything from a bank statement to utlity bills.

If you are registering your Amazon account using an individual plan, or as a Sole Trader on a professional plan, when Amazon asks for your company name, enter your full name. If you’ve registered as an Ltd company and are therefore using the professional plan, enter your Ltd company name ie. MK Distribution Ltd.

If you’ve signed up for a professional plan, your first selling subscription payment will be taken from the bank account you have linked, with any subsequent payments being taken from your Amazon account balance. Amazon will ask for a “credit card” for this, however, a debit card is completely fine.

From here, you'll be asked you to choose a store name - if you are Ltd make sure to use a different name to your Ltd company, this way you can make sure your Amazon store has a little more privacy and more of a struggle for people to find your specific Amazon store. It's worth noting that you can change your store name at any time.

Amazon will then ask a question in regard to UPCs - make sure to click "Yes".

You'll then be asked if you are "the manufacturer or brand owner" of any of the products you'll be selling on Amazon - make sure to click "No"

Once you've succesfully submitted your details one of the following two things will happen: [1] You'll be approved instantly. [2] You'll be asked to participate in a few minute long webcall within the following 7 days in order to verify your indentity

[4] Letter of Authorisation

Once you’ve successfully created your Amazon selling account, you may be asked to provide a "letter of authorisation". This is generally for larger businesses whereby an employee might have set up an Amazon account rather than a company director themselves. The majority of the time, you will be the company director but also the manager of the Amazon account. Therefore, you are going to need to write a letter of authorisation for for yourself - yes, we know, this makes absolutely no sense, however, Amazon require it...

To do this, you are going to need a company letterhead. This will need to include the following:

[1] The company logo. [2] Name. [3] Address. [4] Contact details.

Once you’ve created the letterhead, please use the following template and send it off to Amazon.

Letter of Authorisation - Template

Dear whomever this concerns,

I, <Your name> the owner of <Company name if you are LTD or your name if you are a sole trader>, Amazon Store Name - <Store name> give <Your name>, full permission and full control of all dealings within the Amazon seller account.

<Your name> will be the point of contact and have full control of the business.

Kind regards, <Your name> <Ltd company name, if you have one>

A business bank account is an essential feature of your Amazon business. It will be used for all your transactions to suppliers/stores alongside receiving funds from your Amazon sales.

Switching to a Ltd company [Click The Arrow]
  1. Once you have incorporated your Ltd company, you will need to inform HMRC that you’re ceasing being a Sole Trader.

  2. HMRC advise you need to send a final self-assessment tax return as a Sole Trader by 31st January. If your Sole Trader company has any assets you’ll need to transfer ownership of these to the new Ltd company - you’ll most likely need to speak to an accountant in regard to this.

Make sure you have completed all of the steps above, and have all of the paperwork ready, before informing Amazon of the change. Do not close your Sole Trader business bank account before the conversion is complete, Amazon may still ask for this.

[Click The Arrow]
  1. Click “Business Tax Account”.

  2. You won’t have an account yet, so rather than signing in click “Create sign-in details” at the bottom of this page. From here, you can create your login and complete the security check. After you’ve created your account you’ll be given a government gateway ID, make sure to save this as it will be used for your login/user.

  3. You’ll then be asked for the type of account you need, for this please click individual. From here you’ll be able to enter your mobile number and you’ll be provided with an access code.

  4. Now you can click “Manage Account” and then click “Get online access to a tax, duty or scheme”. From here, click “Self-assessment, including partnerships and trusts”. You’ll then be asked if you have a UTR number for this click no (unless you’ve already registered before, if so then you can call HMRC to request your UTR to enter here).

  5. Next, you’ll be asked which option describes you best - choose individual or sole trader. From here you’ll be asked if you are self-employed - click yes. If you get the page which says “Register for HMRC taxes”, make sure to click self-assessment.

  6. Next, HMRC will ask for your personal details and security questions. You’ll then need to confirm your identity and confirm how you’d like to receive communications from HMRC.

  7. Once you’ve completed this sign-up process you’ll receive your UTR number via the post in 2-4 weeks. This will be needed before you sign up for an Amazon selling account. Occasionally your UTR number will be added to your HMRC online account before the letter arrives, so make sure to keep logging into your account and checking for this.

Generally, we find that most members will choose to go with a Ltd company due to both a quicker start-up time and better tax efficiency. If you have any questions regarding the two, please either head into the Live Chat within Seller Circle, speak to an accountant or speak to HMRC directly. You can contact HMRC here: 0300 200 3310.

- Make sure you register as a business

is a great place to create company letterheads if you are struggling, there are also templates you can use on Word and Google Docs.

[5]

Revolut has been one of the main bank accounts that Seller Circle members use for their Amazon journey, as such, we have partnered directly with Revolut. Whether you're a Sole Trader or Ltd company, Revolut has both options,

[6]

If you are already set up as an Amazon Seller, changing from a Sole Trader to a can cause issues as the process of moving an Amazon Seller Account to a new entity requires re-verification, which tends to result in significant delays.

Open a business bank account for your new Ltd company, Amazon will require this for the conversion. When registering a Ltd company with , you will automatically have a business bank account set-up.

You can now inform Amazon of the change of entity. The best way of doing this is to open a case log/live chat on Seller Central via the support section. They will most likely ask you to contact with the requested documents and answer a few questions in regard to the change. They will then give you the steps to do the conversion.

Simply head over to Tide linked below and click 'Get Started' to begin your set up. Follow through the steps and after payment, within 24 hours your company should be live.

Tide
Register a Ltd Company with Tide
Registering a Limited Company (Ltd) [Click The Arrow]
Register Your Ltd Company Here
Setup up a Sole Trader
More information can also be found here.
Create your Amazon Selling Account
Canva
Creating a business bank account
alongside various different plans tailored to the features that you want!
Open Your Revolut Bank Account Here
Sole trader to LTD conversion
Limited company
Register a Ltd company with Tide
Tide
seller-verification-enquiry@amazon.co.uk