How To Do Business on Amazon From Pakistan
Globally, Amazon led the charge in the field of e-commerce. Over the years, the platform has made it accessible to thousands of affiliate marketers and sellers to grow their networks of product sellers. You can make money from the Amazon FBA company in Pakistan as a buyer or a vendor.
Colleagues or close friends may have told you about Amazon FBA. There are a ton of video tutorials available on YouTube and other platforms to assist you in launching a local Amazon business. We will explain in this article how to start an Amazon business in Pakistan and get long-term benefits.
If you are about to start a business on Amazon and thinking about How To Do Business on Amazon From Pakistan then think no further. In this article, we will provide an overview of the steps involved in starting a business on Amazon in Pakistan.
How Much is The Total Expense To Do Amazon Business in Pakistan
The belief that it will be prohibitively costly for them to begin selling on Amazon is one of the primary challenges facing Pakistani sellers. What you put in impacts what you get out, as it does with a lot of things. Yet it isn’t always related to money; it can also refer to time, the knowledge you need for making intelligent choices, or just the desire to achieve.
Over one in five (27%) of the most successful Amazon sellers spent no more than 50,000 rupees – if any – to start their businesses.
- Most sellers (58%) spent less than 5 lakh rupees to start selling on Amazon, and 28% spent less than 1 lakh rupees.
- 18% of sellers spent less than 50,000 PK Rs
- PK Rs. 50,000-1 lakh: 10%
- Amounts between 1 lakh and 3 lakh PK Rs: 12%
- 18% of 3 to 5 lakh PK Rs.
- 14% from 5 lakh to 10 lakh PK Rs
- Over ten lakh PKRs: twenty per cent
What is the aim of this money? The sourcing of your goods (including samples), Amazon fees, shipping costs, store upkeep, and listing advertising are usually included in the initial expenses.
Steps Involved in Starting a Business on Amazon In Pakistan
Through the following steps, you can start your Amazon journey from Pakistan. Let’s explore these steps in detail.
1. Market Research
Before you launch your business on Amazon from Pakistan, it is necessary to conduct thorough market research to identify the demands and the winning products. You need to follow the following tips for researching the Pakistani market on Amazon:
- Identify Best-selling Categories: Use resources like Jungle Scout and Amazon’s bestseller rankings to find popular product categories and keyword searches. Books, clothing, beauty products, and electronics are a few of the leading verticals.
- Check Competitors: Look up your desired product category and review the first few pages of competing listings. Consider things like their logo, reviews, and price. This provides details on competition in the market.
- Search Volume and Trends: Utilize Jungle Scout or Google Keyword Planner to figure out the demand and monthly search volume for relevant phrases. Check past trends also.
- Prohibited Categories: Make sure your goods are acceptable because Amazon in Pakistan forbids certain items, such as guns and prescribed pharmaceuticals.
- Localize Branding: Make use of Pakistani flag branding and market products according to local cultural preferences.
Through rigorous market research, once you have identified the winning products, you will be ready to select one of these products and head to the next step in starting an Amazon business in Pakistan.
2. Requirements
To operate your business in Pakistan legally, there are some necessary registration requirements that you need to fulfill for starting a business on Amazon in Pakistan. The following are the key requirements:
Business Registration
- Sole Proprietorship: It is the simplest registration which only requires your ID.
- Partnership Firm: A partnership deed is required.
- Private Limited Company: This is more complex but has higher credibility. It requires articles of association and memorandums.
Tax Registrations
- General Sales Tax Number (GST): If your business has a turnover of more than PKR 10 million, it is compulsory for you. This registration is done online.
- National Tax Number (NTN): If a business has earning potential over PKR 50,000, this is required. Apply online on the FBR portal.
- Provincial Tax Number (PST): You need to apply on the provincial authority revenue site. If you are selling goods and services in Punjab, KPK, or Sindh, this is necessary.
3. Setting up an Amazon Seller Account
Once your business is legally registered in Pakistan, you need to set up your Amazon seller account. Follow these steps:
- Visit the Amazon Services page to create a professional or personal selling account.
- Select your business method: professional or individual based on sales volume.
- Provide required bank account details, tax information, ID documents, and business info.
- Pay your monthly subscription fees for the plan via credit card.
Store Setting
- Select a unique identity and seller name for your online store.
- Create an eye-catching banner and logo.
- Provide complete information about your business’s operation and return procedures.
- Integrate banking and payment information for disbursements.
User Settings
- Assign rules like admin, shipping, etc., and manage permissions.
- Set up 2-step verification for security.
- Install the Amazon Seller app on your phone.
4. Managing Inventory and Shipping
For optimized profitability and efficient operation, inventory management is key. Here are some tips:
Sourcing Inventory
- Locate suppliers on sites like PK Bazar, GlobalSources, and Alibaba.
- Compare production costs, MOQs, delivery, and prices.
- Get product samples before placing large orders to evaluate quality.
Shipping to Amazon Warehouse
- Deliver stock to the US or EU Amazon fulfillment centers (FCs).
- Label and pack inventory properly according to Amazon’s regulations.
Accounting and Inventory Tracking
- Use inventory monitoring tools like SellerCentral or InventoryLab.
- Monitor days in stock, COGS, and inventory value for accounting purposes.
5. Marketing Your Amazon Products
To increase visibility and boost sales on Amazon from Pakistan, you need an effective marketing strategy:
Product Listing Optimization
- Use promoted products to rank higher in searches.
- Identify high-demand, low-competition keywords.
Amazon PPC Advertising
- Integrate keywords naturally across product listings.
- Advertise to raise sales velocity and rank.
Conclusion
In conclusion, now you know about How To Do Business on Amazon From Pakistan. In this digital world, starting a business on Amazon is a worthwhile decision. Initially, you might invest some money, but over time you can make a handsome income from doing business on Amazon. It is not difficult for any Pakistani to start a business on Amazon. By using the right tools and having the right mindset, you can achieve long-term success.