Expanding into the United States is one of the biggest steps a UK ecommerce brand can take. The opportunity is huge, but it is also easy to complicate the process with unnecessary admin, premature company set ups, or confusing tax advice. This guide is designed to keep your Amazon USA launch simple.
The goal is to focus on the steps that genuinely move your retail business forward and avoid the overwhelm that often comes with cross border selling.
Why the US Market Matters for UK Amazon Sellers
The United States remains Amazon’s largest market in both customer demand and average spend. UK brands often expand there because products that perform well in the UK usually find strong traction with American customers. Some sellers also receive incentives such as fee credits that reduce the cost of early growth and give new listings a useful runway.
The key point is that success in the US does not come from over planning or building a complex structure before you make your first sale. It comes from clarity. When you know what is essential and what can wait, you move faster and avoid unnecessary costs.
Laying the Foundations for a US Launch
Before you set up any accounts or register for anything, confirm that your product meets the requirements of the US market. Some categories have specific rules. Supplements, cosmetics, foods, medical devices, and anything that makes health related claims usually need to meet FDA expectations. If FDA approval applies to your product, plan for it early.
Check that your packaging and labelling meet US standards. Units of measurement, ingredient phrasing, allergen statements, and warning labels may differ from the UK. If your product is electrical, check whether it needs UL certification. These are practical checks that ensure your goods will clear customs and reach FBA without issues.
Once the compliance work is done, adapt your listings for American buyers. Language, tone, benefits, and even colours or sizes often differ. Make sure you have enough stock for the early weeks. New listings can ramp up fast in the US, so plan your first shipment with a margin of safety.
Setting Up Your Amazon US Account
To sell on Amazon USA, you need a North America seller account. This covers the United States, Canada, and Mexico. The account creation process is straightforward. You will use your UK company details and provide identity verification, banking details, and tax information.
Amazon will ask for a W8 BEN form. This form confirms that you are a non US entity and ensures that your payouts are not reduced by withholding tax. Submit the form through Seller Central when prompted. Once approved, you will be ready to list products, connect your bank account, and prepare your first FBA shipment.
Is There a Need for a US Entity?
Most UK sellers on Amazon can launch in the United States without forming a US company. A UK limited company is fully acceptable for Amazon USA. You only need an Employer Identification Number to operate, which you obtain by submitting an SS 4 form to the IRS. In most cases this is done by fax.
A US company may help later if you want US based employees, a US warehouse, or investor activity that requires a domestic presence. It is not required for launching and often creates cost and admin that does not benefit early stage expansion. For most brands, the simplest route is to start selling through the UK company and only consider a US entity once genuine operational needs arise.
How USA Sales Tax Works for UK Amazon Sellers
US sales tax has two key concepts. Physical nexus arises when you have stock stored in a state or staff based in that location. Economic nexus works like a distance selling threshold. Many states set their threshold at 200 orders or 100,000 dollars of sales.
Marketplaces like Amazon collect and remit sales tax in every state. This means Amazon handles the tax at checkout for marketplace sales. If you send stock into FBA warehouses, you technically create a physical nexus in those states. Generally, this means you should register for sales tax, but because Amazon already pays the tax on your behalf, the financial risk of not registering is low for marketplace-only sellers. Many overseas Amazon sellers choose not to register because compliance costs exceed any benefit.
The important point is simple. Amazon handles sales tax collection. You monitor your thresholds and decide later whether registration is practical for your brand.
Figuring Out How You Will Move Stock Into the US
Before you launch, decide how your stock will reach Amazon FBA. A good freight forwarder is essential. They handle the booking of sea or air freight, customs paperwork, duties, and delivery into Amazon’s network. Use them to calculate your landed cost so you know your true margins in the US.
Confirm whether your product needs specific documentation at the border. Some categories require certificates or lab tests. Make sure your packaging is compliant before dispatching anything. A reliable forwarder will help you avoid delays that can occur if customs officers need extra checks.
Choose between sending stock directly to Amazon or sending it to a third party warehouse first. Many brands use a 3PL on their first shipment so they can inspect goods, print final labels, and control replenishment. Either route works as long as the process is planned before you send anything.
Launching on Amazon US
Your launch process begins once your listings are active and your first FBA shipment is booked. Create the shipment in Seller Central, assign your SKUs, prepare barcodes, and confirm the warehouse destinations. Amazon will generate the labels you need.
When your goods arrive, monitor the receiving process. FBA receiving can take a few days. Once the stock is available, turn on your PPC campaigns and track your early conversion. Review customer search terms, pricing, and initial feedback. Early optimisation is important in the US because demand moves quickly and competition adjusts fast.
Your first goal is to generate consistent sales velocity. Keep your listings accurate, keep stock flowing, and avoid running out during the first thirty days.
Deciding If and When to Register for State Sales Tax
Once trading begins, monitor your activity for both physical and economic nexus. FBA stock creates a physical nexus in the states where Amazon stores your goods. Economic nexus depends on your order count or revenue within each state.
Because Amazon collects and remits sales tax, many foreign marketplace sellers decide not to register immediately. Penalties in the US are usually based on unpaid tax. If Amazon has already paid the tax, the risk is low. Registration becomes more relevant when you sell on channels outside Amazon, for example Shopify, because Shopify does not pay the tax for you.
If you expand into multi-channel selling, tools such as TaxJar help track thresholds across all channels. For Amazon only sellers, monitoring your progress and reviewing thresholds every quarter is usually enough.
Your First 30 to 90 Days in the US Market
The first month is about stabilising your listings and understanding your new demand. Review your stock levels often. Identify your best converting keywords. Adjust pricing once you have some early sales history. Track your actual margins with landed cost included, not just your UK margins.
By day sixty, you should be able to see where you sit against competitors. Review your PPC spend, your repeat purchase patterns, and any early performance indicators from customer reviews. If you trigger nexus in any state, review whether registration is required based on your sales channels.
By day ninety, you should have enough real data to forecast sales, plan replenishment cycles, and decide whether you need deeper integrations such as A2X or expanded tax support.
Also see: The Silent Growth Killer: Lack of Financial Visibility in E-Commerce Businesses
How Elver E-Commerce Accountants Help UK Brands Expand Into the US
Launching an ecommerce business into the US is easier when you have a specialist partner. Elver works with UK Amazon sellers to simplify US expansion. We help with sales tax guidance, Amazon accounting, A2X integration, forecasting, and the practical decisions that most brands struggle with when entering a new market.
Instead of second guessing every step, you get a clear plan, accurate reporting, and support from people who have taken hundreds of UK sellers through the same process. The goal is to help you expand with confidence and avoid the common mistakes that slow down international launches. Book a free consultation.
FAQs About Selling on Amazon USA from the UK
Do I need a US company to sell on Amazon US from the UK?
No. A UK limited company is fully acceptable. You only need an EIN which you obtain using the SS 4 form.
Will Amazon handle sales tax for me?
Yes. Amazon collects and remits sales tax in every state for marketplace sales.
If I use FBA, do I need to register for sales tax straight away?
Not usually. FBA creates physical nexus but the financial risk of not registering is low for marketplace only sellers because Amazon pays the tax.
Do I need FDA approval for my products?
Only if your category requires it. Supplements, cosmetics, food, and health related products often need FDA compliance.
Do I need A2X or accounting integrations before I launch?
No. You can start without them. Most brands add A2X once they have regular sales to reconcile.
Will selling in the US affect my UK VAT position?
Your UK VAT responsibilities remain unchanged. US sales do not replace or reduce UK VAT obligations. However, if all of your sales are made on US Amazon and fulfilled from within the US, those sales fall outside the scope of UK VAT. In that case, you would not be required to register for UK VAT.
Some businesses still choose to register voluntarily as this allows them to reclaim the VAT they incur on UK costs.