Everything You Need To Know About Selling On Amazon From Ireland

Amazon’s move into Ireland has given Irish businesses chances they’ve never had before.  The launch of Amazon.ie marked a turning point for local e-commerce.

Irish sellers now have direct access to millions of customers without the complexity of cross-border selling that previously made Amazon less accessible. This shift has particular significance for businesses across Ireland, from Dublin tech startups to Cork-based manufacturing companies looking to scale their operations online.

But opportunity comes with complexity. Selling on Amazon isn’t simply about listing products and watching orders flow in. Success requires understanding fee structures, choosing the right fulfilment model, managing VAT compliance across multiple jurisdictions, and maintaining healthy profit margins in an increasingly competitive marketplace.

The financial implications of getting your Amazon strategy wrong can be severe. Poor margin management, VAT compliance failures, or choosing the wrong fulfilment model can quickly turn a promising venture into a costly mistake. Yet many businesses focus solely on the operational aspects of selling on Amazon, overlooking the critical financial planning and compliance requirements.

This guide will walk you through everything you need to know about selling on Amazon from Ireland. You’ll understand the market opportunities, learn about different fulfilment options, discover how to maintain profitability, and get clear guidance on VAT and tax compliance requirements.

Understanding Amazon.ie’s Position in Your Business Strategy

Getting Amazon.ie to Work for Your Business

Amazon.ie is more than just another place to sell stuff—it’s Ireland’s express lane to the global marketplace. The platform gives Irish businesses easy access to shoppers, both at home and abroad.

Here’s what’s great about Amazon.ie for Irish sellers:

• Easy access to Irish shoppers: No more dealing with cross-border hassles for local sales.
• Simple VAT: VAT compliance is straightforward for sales within Ireland.
• Local currency: No need to worry about exchange rates—transactions are in euros.
• Fast shipping: Happy customers and repeat business are just around the corner with faster deliveries.
• Easy payments: Connecting with Irish banks and payment systems is simple.

Market size and opportunity:

• Ireland’s e-commerce scene is booming, growing by 15–20% each year.
• Amazon.ie is taking an ever-larger slice of the Irish online retail pie.
• Opportunities to sell across the EU without barriers.
• Potential to tap into B2B sales for business customers.

Comparison with EU Marketplaces

Marketplace	Pros	Cons
Amazon.ie	Local VAT, fast delivery	Smaller market size
Amazon.de	Largest EU market	Complex VAT, high competition
Amazon.fr	Big growth, cultural fit	Language & tax requirements
Amazon.es/it	Lower competition	Localisation needed

What about Brexit?

Brexit changed the game for Irish businesses selling online. Now, if you want to sell to the UK:

• You’ll need to register for UK VAT.
• You’ll have to deal with customs declarations and potential duties.
• You’ll face currency fluctuations, which can affect your profits.
• Delivery times may increase, which can make customers unhappy.

The good news is, selling to the EU is still pretty straightforward. With the OSS scheme, you only need to register for VAT in one country, there are no customs hassles, and shipping is relatively smooth.

Lots of Irish businesses are now focusing on EU markets instead of the UK because it’s simpler and less risky.

Smart Financial Planning for Amazon

Cash flow is key. Different marketplaces have different payment cycles. It’s essential to manage currency exposure, working capital needs for inventory, and how you spend your marketing budget across platforms.

Accounting can get complex!
You need to keep track of transactions in multiple currencies, understand marketplace-specific fees, and reconcile VAT across borders. It also helps to have a financial model that shows you the profit potential for each Amazon marketplace.

Amazon.ie vs Other EU Marketplaces: VAT, Fees, and Logistics

VAT: What You Need to Know

The One Stop Shop (OSS) has made VAT easier for Irish businesses selling across the EU, but it’s still important to understand the ins and outs for each marketplace.

Selling on Amazon.ie:

• Just charge the standard Irish VAT rates (23% for most things).
• No need to worry about distance selling thresholds.
• File VAT returns through the Irish Revenue system, which is pretty straightforward.

Selling in other EU marketplaces:

• Register for the OSS and file one quarterly VAT return for all EU sales.
• You only need to register locally if your sales exceed €10,000 in a member state.
• Amazon can automate VAT calculations, but you need to keep detailed records.

Selling to the UK after Brexit:

• You’ll need a separate UK VAT registration.
• You’ll have to pay import VAT on goods shipped from Ireland.
• Expect extra paperwork and costs due to Brexit, and watch out for currency exchange complications.

Amazon Fees: What to Expect

Here’s a general guide to referral fees, but keep in mind they change based on product category. You can check out these fees within Amazon Seller Central.

• Referral fees:
  • Electronics: 8%
  • Home & Garden: 15%
  • Books: 15%
  • Clothing: 17%

• FBA fees:
  • Storage fees: €0.48-2.40 per cubic foot per month, depending on the time of year
  • Pick and pack: €2.30-8.20 per unit
  • Weight handling: €0.45-1.35 per kg

• Subscription fees:
  • Individual selling plan: €0.99 per item
  • Professional selling plan: €39 per month

Remember, fees can shift depending on what and where you are selling. Always double-check to be certain!

Also, it’s good to note that FBA fees for peak seasons in Germany can be quite expensive.

Shipping: Getting Your Goods to Customers

Shipping from Ireland to EU customers:

• You can ship goods to EU customers as you normally would.

Amazon offers fulfilment infrastructure, however:

• Facilities are limited in Ireland
• The bulk of products are held in the UK/EU
• This creates cross-border logistics for sellers

Here’s a more streamlined approach:

• Smart inventory allocation – store your items throughout centres
• Season forecasting – know when to increase products
• Know the costs of where you store your products

At Around Finance, we offer accounting support to ensure that all of your marketplaces are covered in a way that makes sense for you. We are equipped to assist with Xero, Surf Accounts, Quickbooks and Sage.

FBA vs FBM

FBA Explained

With FBA, you are handing your products to Amazon. They will pick, prep, pack and ship it to the customer.

These are some of the reasons to do that:

• Prime eligibility – this means increased viewership
• You don’t have to assist customers, Amazon does that!
• Scaling for global shipping is easy

However, that’s not all that is important. Here are some rules you must follow:

• Labelling and prepping your products
• Removing any inventory that doesn’t sell
• Following Amazon packaging rules

FBM Explained

When you select FBM, you are committing to handling shipping yourself.

These are some things to keep in mind:

• All branding and customer handling are up to you
• Lower costs in some situations
• Better margins on slow-moving products

VAT Considerations for the Irish Seller

There are important tax implications that you must consider as an Irish seller.

Remember that it depends on where you are storing your products, what your volume is, what your product is and your overall setup. VAT is rarely simple and it’s always a good idea to reach out to Around Finance or a similar firm.

Knowing What Model is Right for You

Ask yourself the following:

• Do you have consistent volume?
• Are you ok with losing focus on the backend elements?
• Where do you plan to operate?

With those, it is easy to select the correct plan.

Financial Planning – Selecting a Model

There are some considerations to keep in mind when planning what method you plan to fulfil.

You will want to consider all of the following:

• Cash flow assessments
• Tax obligations
• How to track different sales scenarios

You should seek the support of Around Finance to guide you along this part of the business.

Profitability in Ireland: Taxes, Margins, Fees

Understanding Amazon’s Fees

Amazon’s fees can eat into your profits if you’re not careful. Always factor in:

• Referral fees (by category)
• FBA or FBM costs
• Advertising spend
• Monthly subscription
• Storage, removal, and return fees

Setting the Right Price

• Keep an eye on your competitors and adjust prices as needed.
• Make sure you’re covering all your costs (including VAT and shipping).
• Use bundles or premium listings to boost your average order value.

Managing Margins

• Track your margins by SKU and by marketplace.
• Watch out for hidden costs like returns or currency swings.
• Use accounting software to keep tabs on your real profits.

Cash Flow and Currency

• Amazon pays out every 14 days, so plan your cash flow accordingly.
• If you sell in the UK or EU, manage your currency risk with hedging or by adjusting prices.

At Around Finance, we’ll help you set up your systems so you always know where you stand, and where you can improve.

VAT & Tax: What Irish Amazon Sellers Must Know

Domestic & EU VAT

• Amazon.ie sales: Charge and remit Irish VAT.
• EU sales: Use the OSS scheme for simplified reporting. Register locally only if you exceed thresholds or store stock abroad (FBA).
• Keep detailed records for all cross-border transactions.

UK VAT Post-Brexit

• Separate UK VAT registration required.
• Import VAT applies on goods shipped to the UK.
• Customs declarations and GBP/EUR currency management needed.

Tax for SaaS & Tech Sellers

If you sell digital goods or SaaS via Amazon, VAT rules differ, make sure you’re charging the right rates for B2C/B2B sales across borders.

Around Finance’s tax experts can help you navigate VAT, OSS, and corporation tax, maintaining full compliance and peace of mind. Understanding VAT and logistics is crucial for Irish ecommerce sellers, our e-commerce industry insights covers these topics in detail.

Success Tips: Optimising Your Amazon.ie Sales

Boost Your Product Ranking

• Use keyword-rich titles and descriptions.
• Add high-quality images.
• Make sure your product info is clear and detailed.

Make the Most of Amazon PPC

• Start with Sponsored Products to get noticed.
• Track your ad spend and tweak your campaigns for the best ROI.
• Use Lightning Deals and coupons to drive sales at key times.

Deliver a Great Customer Experience

• Encourage reviews and respond quickly to feedback.
• Keep your fulfilment standards high (especially if you’re FBM).
• Stay on top of returns and customer queries.

Think Strategically

• Regularly review your pricing, fulfilment, and marketplace mix.
• Use your accounting data to spot trends and new opportunities.

At Around Finance, we’re here to help you grow, not just stay compliant.

Conclusion

Selling on Amazon from Ireland is a brilliant opportunity, but it’s not without its challenges. With the right planning, on VAT, fees, fulfilment, and profitability, you can turn Amazon.ie into a real growth engine for your business.

Ready to take your Amazon.ie business to the next level? Contact Around Finance for a free consultation and see how our accounting and advisory services can help you scale with confidence.

FAQs