Set Up an Amazon Store in Montenegro - Legal Advice in Starting a Business
Set Up an Amazon Store in MontenegroUpdated on Tuesday 22nd June 2021
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Amazon, which started operating a small e-commerce shop in 1994, is currently the largest online platform in the world which allows independent sellers to use the platform in order to sell various products.
Amazon registered spectacular growing sales numbers on a yearly basis since it started operating, with the second quarter of 2018 registering an increase of more than 60% compared to the same period of last year.
Foreign and local entrepreneurs operating in Montenegro are also welcome to open Amazon stores and sell directly from this country by using the retailer’s platform. Our lawyers in Montenegro have prepared a small guide on how to open an Amazon store in this country.
Opening an Amazon store from Montenegro
Setting up an Amazon store implies a few more steps compared to creating a traditional Montenegro business. These generally include:
- selecting a business form suitable for the operations;
- registering the business with the Companies House in Montenegro;
- registering on the Amazon website;
- setting up the type of Amazon account you want to use;
- setting up the merchant account which is a mandatory step for this type of business.
So, besides from registering a company in Montenegro, you will also need to create an Amazon account through which you will sell various types of products. With respect to the goods to be sold, there are two important aspects to consider: you can either sell goods on the platform, or you can sell your own products.
The establishment of the Amazon store is not difficult, and the account can be created as soon your business is registered. You can rely on our lawyers in Montenegro for assistance in incorporating the selected business form.
Registering a business for selling on Amazon from Montenegro
In order to open an Amazon store in Montenegro, a businessman must first register a company with the Trade Register here. The sole proprietorship and the limited liability company are the most employed structures for e-commerce shops, however, our Montenegro law firm recommends entrepreneurs to choose the limited liability company because of the limited liability of the shareholders and the minimum share capital of 1 euro.
Steps for setting up the Amazon store in Montenegro
Once the Montenegro company is registered, the seller must go to the Amazon platform for traders and register there by completing the following steps:
- creating and an account and decide for the type of seller they want to be: professional or non-professional;
- choose among the category of products which can be sold and decide how many products they will sell;
- list the products they want to sell – these can be Amazon products or external products;
- create a merchant account with a bank or payment service provider in Montenegro.
It should be noted that the creation of a merchant account is mandatory when opening an Amazon store in Montenegro.
Our Montenegro lawyers can help investors in creating merchant accounts.
How to open a merchant account for an Amazon shop in Montenegro
The opening of a merchant account can be created by submitting information about the company and the website, in this case, Amazon, with the Montenegro bank or local payment service provider. The account is set up in a few days.
How to create an Amazon seller account
If you want to open an Amazon store, you must be aware of the fact that there are two types of accounts that can be created:
- the individual account;
- the professional account.
Each type of account is subject to different monthly payment plans, however, there are also other aspects to consider, among which the most important is the number of products to be sold. The individual account is best for those selling less than 50 articles per month, while the professional one is most suited for those selling large volumes of products. However, it depends on whether you want this to be your main business or not. Also, another difference between the two types of accounts consists in the fact that some products can be sold only through professional accounts.
In the case of individual accounts, the payment will be collected per sold item.
Also, when setting up this type of business, it is important to consider whether acting as a reseller or as a product owner in order to choose the best selling strategy. There is also the possibility of combining the two options for increased market visibility.
In order to create an Amazon account, you need to submit the following information:
- the email address (a business address is required);
- a credit card number;
- your personal information;
- a valid phone number;
- the tax identification number;
- the merchant account number.
Creating an Amazon store in Montenegro is not complicated and neither is registering as a sole trader or incorporating a private limited liability company. If you are a foreign investor, you should know that you must obtain a residence permit if you want to create a sole proprietorship here. If you want to benefit from one of the lowest corporate tax rates in Europe, we recommend using the limited liability company as a business vehicle.
What other aspects you need to consider when opening an Amazon store in Montenegro
Apart from setting up the Amazon seller account, you will also need to consider promoting your products and increase your visibility on what now is the most popular online selling market in the world. By comparison to the Amazon business there is the option of setting up your own e-commerce company.
No matter the choice, you can rely on our lawyers in Montenegro for guidance.
E-commerce business vs. Amazon store in Montenegro
The alternative to an Amazon store is setting up your own e-commerce company, however, this implies registering a domain name and having a website created, whereas for an Amazon business the architecture is already in place for commencing the activities once the seller account is created.
An e-commerce company also implies creating a marketing and promotion strategy and investing more time in sending the products to the buyers. On Amazon, the goods are sent directly from the Amazon storage facilities, if you decide to sell products available on the platform.
If you decide to open an Amazon store in Montenegro, you will also benefit from support from platform administrators and will have a greater reach in terms of clients, your goods being available for purchase on markets you choose.
No matter your choice, you can rely on our law firm in Montenegro for the registration of a business for selling goods online.
Amazon has been on the market for 25 years now and it is the largest online selling platform in the world at the moment. According to statistics provided by Statista.com and published by Oberlo.com:
- 89% of the US population trusts to buy goods sold on Amazon;
- the platform has more than 150 million premium users;
- in the 4th quarter of 2020, the platform had a revenue of 125.6 billion USD.
For assistance in opening an Amazon store, please feel free to contact our law firm in Montenegro.