Guide to Selling on Amazon Spain
If you are thinking of expanding your eCommerce business to Amazon Spain, there is a lot to unpack and consider before you offer your products to a new marketplace. PingPong’s Guide to Selling on Amazon Spain will walk you through everything you need to know for a successful expansion.
( We also have additional resources for you including The Ultimate Guide of EU VAT, tips on international shipping, and tools to help you operate your business overseas.
Spain is a very regional country with different cultures, cuisines, shopping preferences, and even languages depending on which region you examine. Sometimes referred to as “the most passionate country on Earth,” Spaniards are often passionate about their specific home region in Spain even more so than the country itself. Due to this variety in culture and expectations, Spain is a country that should not often be generalized (the irony of the statement is not lost on me, but some generalization is necessary to cover the information you will need about the country). To begin, let’s look briefly at some of the largest regions (or communities) in Spain:
The most populated community with over 8.3 million people, Andalusia resides in the south of Spain. With a very traditional capital city, Seville, Andalusia is a historically agriculture-focused community that has experienced a surge in tourism over the past few decades (which also contributed to their large population). Seville is also one of the few cities where you will still find bullfighting in Spain. Despite its large size and population, which has earned it the third-highest GPD of any community, Andalusia actually has the second lowest income per capita.
Located on the northeastern border of Spain, Catalonia is the second largest and perhaps most unique community of Spain given that they have self-designated their own nationality. Its capital is Barcelona, which also happens to be the second most populous city in Spain. Catalonia has the largest GDP of any community in Spain and a population of over 7.5 million people. Catalonia is also unique in that it is the only community to have its own language outside of Spanish,Catalan. Despite some commonalities, Catalan is not a dialect of Spanish and should not be referred to as such.
Located in the center of Spain, Madrid is the third most populous community with over 6.5 million people. Spain is a comparatively small geographic region, with 5 million people living in the city of Madrid itself, and a total of 6.5 in the combined urban area. Madrid is also the capital of Spain as a country. While Madrid has only the second-highest overall GDP, its residents have the highest income per capita.
South of Catalonia on the eastern coast of Spain is the Valencia community. With just under 5 million people, Valencia is the fourth most populated community. As expected, the GDP of this region is smaller than those listed above, but Valencia still has an above-average income per capita. The residents of Valencia also speak Catalan (or Valencian, a dialect of Catalan), and it is a community known for a multitude of sports including Valencia pilota (a handball sport), football (soccer), and motorcycle racing.
The final community we will look at is in the northeast region of Spain, with a very small landscape but a population of over 2.1 million. Officially there is no capital city in Basque, but Vitoria-Gasteiz is treated as such. Basque is a titan of industry in Spain, with a respectable GDP for its size and the second-highest income per capita of any community. Cooking and cuisine is a large part of Basque culture and is one of the largest attractors of tourists for the area.
Understanding Spanish Culture
Understanding a bit about the communities and their cultures can help you target your products and tweak your listings appropriately. Spain is a country modernizing itself while keeping dear some long-held traditions. Many would say that Spain’s way of life is centered around living in the moment and the community, and that shows through its traditions.
Spanish culture is very regional and you should avoid generalizing about Spain as it might come across as culturally unaware. If you think your product might do particularly well in one region, you would be better off tweaking the listing to appeal specifically to that region rather than trying to generalize and appeal to all of Spain in hopes of picking up more sales.
10 Interesting Spanish Cultures
-
Spanish culture is more group-focused, whereas American culture is more individual-focused. High-quality hospitality or bulk utensils and tools that can serve larger groups can be a great place to start evaluating products. Look for niche products that may have less competition, but stay away from competing with products that may have a local, hand-crafted alternative—especially if you’re focused on high quality.
-
Spanish culture is very risk-averse and consumers avoid uncertainty in brands/products, whereas US shoppers are more concerned with price. Having a solid set of reviews will be particularly important, and growing your own brand can help with the success of future products for consumers who have previously purchased from you. Also, don’t waste your time competing with products that have seemingly few listings but one extremely successful seller.
-
Spaniards shop online for speed and convenience. For day-to-day products like groceries, the convenience factor is handled by small local shops which populate every neighborhood. For less common products, online shopping tends to be the way to go. Long shopping trips can interrupt social life, especially when few shops remain open midday. Ordering products online and having them shipped home is much simpler and speedier.
-
Highly environmentally conscious. For example, it’s common practice to leave the lights off all day until they are absolutely necessary in the evening. Spaniards also tend to hang dry clothes instead of using an electric dryer. Keep this in mind when looking at highly disposable products and product packaging. Too much waste could be something that turns Spanish consumers away.
-
Are known to “live in the present,” and are known for fiestas and social gatherings. Understanding the popular Spanish holidays and seasonal sales in order to focus your products and efforts around them. Popular seasons include: Winter – usually beginning on January 7th and running as late as March Summer – often running from July 1st all the way through September . Black Friday – the Friday following Thanksgiving Christmas – like anywhere else, the holiday has it’s own sales season that starts immediately after Thanksgiving.
-
Spanish conversation often starts more casually than you might be used to in the US. Avoid things that are “pesado” or intense when you are crafting your listings. Similarly, when looking through translations, you should avoid using “usted” and other similar language. “Usted” is a formal usage of “you” and is too formal for regular use
-
Traditional hours for small brick and mortar shops are around 9 a.m. to 2 p.m., and then re-opening from 5 p.m. until 8 p.m.. The afternoon gap gives people an opportunity to go home for lunch and spend time with others. but it can also create an inconvenience that online shopping fills. Additionally, shops typically only open on Saturday mornings and never on Sundays. (Note: Large supermarkets and department stores like the ones in the US are often open during more standard business hours.)
-
A siesta after lunch is still common and acts as a quick refresher to allow for the longer days (or later nights) typical throughout Spain. A common misconception is that a siesta is an afternoon nap, but it is a bit more casual than that. You would never have a siesta in sleepwear, rarely in a bed, and never longer than 30 minutes. Otherwise, you run the risk of oversleeping and not feeling refreshed at all.
-
Spanish is still the predominant language throughout Spain, but younger generations in Spain are increasingly more likely to be bilingual (typically with English). This is especially common in urban cities and is reflective of the growing globalization of the economy and community.
Getting Started on Amazon.es
If this is your first international expansion effort into Amazon’s European marketplaces, you will need to create a seller account that will allow you to operate within the EU. While there are some tools and services that will allow you to duplicate the work that you have already done on your US Amazon Seller account, the accounts are not the same and will overall manage different listings, reviews, and financials.
While your North America Unified Account allows you to operate outside of the US (in Canada and Mexico), you cannot use it to operate in Europe.The very first thing to get started is to set up an account. Learn more how to set up account here.
When you create an Amazon Europe Marketplace Account, your seller account automatically enables you to sell on ALL Amazon EU marketplaces:
- Amazon.co.uk
- Amazon.de
- Amazon.fr
- Amazon.it
- Amazon.es
Unfortunately, if you have reviews on your US Amazon Marketplace listings, they will not transfer to your equivalent Amazon European Marketplace listings. There is a small exception to this. If there are no reviews for the product you’re selling, Amazon temporarily displays your reviews until local ones populate.
Why Sell on Amazon Spain
If you’re looking to grow your business internationally, the Spanish market is certainly one worth considering. E-Commerce is a growing industry for Spain, for reference Spain is considered the 4th largest B2C market in the EU, right behind UK, Germany, and France. Spanish consumers are comfortable with the online shopping experience. With a high level of internet user penetration, the potential for eCommerce opportunities for U.S companies is huge.
- Amazon
- Ebay
- El Corte Ingles
- Mediamarkt
- PC Componentes
- Vente-Privee.com
- Zalando
- Zara
- Carrefour
- Fashion is the top online shopping category in Spain, frequented by 65% of online shoppers. Consumer electronics comes in second with 55%, and books/CDs round out the top 3 at 46%. It is worth noting, however, that while these categories dominate online sales, they are also the most frequently returned products for Spanish shoppers.
Considerations When Selling to Spain
You will need to translate your listings to the official language of the marketplace! Amazon offers a service that automatically translates your Amazon US Marketplace listings. There is a common expectation amongst Spanish consumers for customer service to be provided in their local language.
Localization > Translation! Note: Having a computer automatically translate your listing word for word may not be the best option.The goal is conversion of sales, not just translation of text. Having a native speaker who can do local copywriting to the targeted market will create a much more impactful listing.
Informative Product Listing Spanish consumers are more likely to make a purchase when they’re confident about your product. By providing a thorough product information will add more trustworthiness.
When shopping online, Spanish shoppers tend to prefer online payment platforms such as PayPal, the payment method of choice for 77% of consumers. Debit and credit cards are still common though, with about 50% of orders being made by card.
Delivery Expectation The vast majority of Spanish shoppers expect their purchases to be delivered within 3-5 days
Simple Return Policy Spanish consumers expect a simple return process. If they don’t feel confident in a sellers return policy, most likely they will not even consider the purchase.
How PingPong Can Help You Win at Currency Conversion
Have you ever exchanged currency in a foreign country, only to realize you got a really lousy rate? Maybe you stopped at one of those convenient little stations at the airport with all the adorable flags of the world to exchange your money. You weren’t giving the process a lot of thought at the time, you just know you needed money. Later, once you got out of the airport you realized that you could’ve gotten a much better rate somewhere else.
Surprise! It’s no different when you’re selling globally on Amazon. PingPong will offer you a competitive FX rate and you can store all your currencies for the best deal.
PingPong is built for eCommerce merchants designed to simplify and streamline all your global payment needs. When you open a free PingPong multi-currency account, you’re offered a competitive rate where you can store all your currencies. With your balance, you can make free payments to settle VAT obligations, securely pay global suppliers, and more.
Make global payments a breeze!
You’ll need to make sure that you are compliant with Spanish law by officially setting up your business. Spain regulates businesses that operate within their country, and if you are using an Amazon European Marketplaces account, you will be operating as an EU business—not as a US business that simply ships to the EU. There is a short list of things you will need to accomplish. Note: if you already have an Amazon European Marketplaces account, you will be able to use it to sell across the EU, and many of the services associated with the account will likely cover you for Spain as well.
-
Set up either a Sole Proprietorship (empresa individual), Partnership (sociedad civil), or Limited Company (S.L. – sociedad comanditaria) within Spain. For an e-commerce business, a sole proprietorship would likely be enough and would be the easiest to set up. Right now there are no foreign business registrations (such as an LLC) that would be recognized internationally, so if you already operate a business in the US, you will still need to create a Spanish/European entity.
-
-
You will need a Número de Identificación de Extranjero (NIE) which establishes you as a business owner for taxation in Spain. This is a personal number, not specifically tied to your business. If you are in a partnership with anyone else who will be operating at a Director level or above, they will need an NIE as well. You can find a great guide on getting your NIE here.
- Outside of the VAT (value added tax) found throughout the EU, Spain does not have any additional taxes on e-commerce businesses specifically. The rate set by the Spanish government is 21% on most goods. More info on VAT can be found here.
-
Finally, you are going to need an EU shipping and return address to open an Amazon Europe Marketplace store. For sole proprietors who do not reside within the EU, maintaining this can be challenging, but there are vendors who will assist with that as well.
-
As far as advertising, Spain abides by the same laws that govern the rest of the EU, but there are no special considerations needed for operating in Spain.
-
Customs and Shipping in Spain
The final major hurdle to be aware of is shipping to Spain. Like any EU country, you will need to go through customs as well as get your products to Amazon’s fulfillment centers. Being caught unprepared for customs and shipping expenses can be a huge profit margin killer, so it is important to understand Spain’s process inside and out before proceeding. Worth noting, you can ship within the EU without having to pay an import tax (e.g., from the UK to Spain), which is one of the factors that makes scaling to other Amazon European marketplaces so easy.
-
If you are operating outside of the EU or if your products are coming from outside of the EU to Amazon’s Fulfillment Centers, you are going to need to pay an import tax. The actual rate of the import tax will vary depending on your product. You can read more about restrictions for importing here, and import tax rates for the entire EU can be found here.
-
Fortunately, once you have shipping to the EU figured out, it tends to be similar for many countries. Spain is no different, and it has no specific restrictions to note outside of the EU restrictions and import tax rates.
-
Just like operating in Amazon’s US marketplace, you will need to send your product(s) to Amazon’s Fulfillment Centers. There are a handful throughout Spain
Amazon Fulfillment Centers in Spain
BCN1 – Amazon El Prat de Llobregat (Amazon Spain Fulfillment, S.L., Avigunda De les Garrigues 6-8, 08820 El Prat de Llobregat, Barcelona, Spain)
BCN2 – Amazon Martorelles (Amazon Spain Fulfillment, S.L., Carrer De La Vernada, 22, 08107 Martorelles, Spain)
BCN3 – Amazon Castellbisbal (Amazon Spain Fulfillment, S.L, Carrer Ferro, 12, 08755 Castellbisbal, Barcelona, Spain)
MAD4 – Amazon San Fernando De Henares (Amazon EU Sarl C/O Amazon Spain Fulfillment, S.L, Avenida De Astronomía, 24, 28830 San Fernando De Henares, Madrid, Spain)
XESA – XPO Logistics Alovera (XPO Logistics, Avenida Río Henares, 16, 19208 Alovera, Guadalajara, Spain)
XESC – Kuehne & Nagel Constantí (Kuehne & Nagel Warehouse, Amazon Deliveries, Avenida de las Puntas, 10, 43120 Constantí, Tarragona, Spain)
Spain Expansion Example Project Plan
I’m a project manager by trade, and I firmly believe that any task that seems daunting or too big to tackle can be made easy by simply breaking things down into smaller tasks. Your global expansion doesn’t have to be any different. Below is a very simple yet effective template that you can use to map out the steps you need to complete in order to start selling on Amazon Spain Marketplace.
Summary: Spain is a beautiful country with a unique culture and consumers who are eager to explore more prouduct options when it comes to online shopping. Bringing your business to Amazon.es can open up your revenue streams to millions of potential new customers. This first leap can also help you gain experience and make you more comfortable with further international expansion. It is true that there is a lot to learn and consider, but growth isn’t intimidating if you have a solid expansion plan.
When you are ready to tackle Amazon’s Spanish Marketplace (Amazon.es), don’t feel as if you have to go at it alone. Among the business laws, currency exchange, and VAT (just to name a few), there are a lot of business functions to prepare for and understand, and PingPong can help you navigate the world of international expansion. Whether you are a new seller looking to get started or an experienced business owner looking to expand, your first step should be setting up a free account on usa.pingpongx.com today. Our experts are ready and eager to help your business go #movingforward
Psst…More Amazon Guides where that came from. Always be updated with the latest tips!
Guide to Selling on Amazon Spain
If you are thinking of expanding your eCommerce business to Amazon Spain, there is a lot to unpack and consider before you offer your products to a new marketplace. PingPong’s Guide to Selling on Amazon Spain will walk you through everything you need to know for a successful expansion.
( We also have additional resources for you including The Ultimate Guide of EU VAT, tips on international shipping, and tools to help you operate your business overseas.
Spain is a very regional country with different cultures, cuisines, shopping preferences, and even languages depending on which region you examine. Sometimes referred to as “the most passionate country on Earth,” Spaniards are often passionate about their specific home region in Spain even more so than the country itself. Due to this variety in culture and expectations, Spain is a country that should not often be generalized (the irony of the statement is not lost on me, but some generalization is necessary to cover the information you will need about the country). To begin, let’s look briefly at some of the largest regions (or communities) in Spain:
The most populated community with over 8.3 million people, Andalusia resides in the south of Spain. With a very traditional capital city, Seville, Andalusia is a historically agriculture-focused community that has experienced a surge in tourism over the past few decades (which also contributed to their large population). Seville is also one of the few cities where you will still find bullfighting in Spain. Despite its large size and population, which has earned it the third-highest GPD of any community, Andalusia actually has the second lowest income per capita.
Located on the northeastern border of Spain, Catalonia is the second largest and perhaps most unique community of Spain given that they have self-designated their own nationality. Its capital is Barcelona, which also happens to be the second most populous city in Spain. Catalonia has the largest GDP of any community in Spain and a population of over 7.5 million people. Catalonia is also unique in that it is the only community to have its own language outside of Spanish,Catalan. Despite some commonalities, Catalan is not a dialect of Spanish and should not be referred to as such.
Located in the center of Spain, Madrid is the third most populous community with over 6.5 million people. Spain is a comparatively small geographic region, with 5 million people living in the city of Madrid itself, and a total of 6.5 in the combined urban area. Madrid is also the capital of Spain as a country. While Madrid has only the second-highest overall GDP, its residents have the highest income per capita.
South of Catalonia on the eastern coast of Spain is the Valencia community. With just under 5 million people, Valencia is the fourth most populated community. As expected, the GDP of this region is smaller than those listed above, but Valencia still has an above-average income per capita. The residents of Valencia also speak Catalan (or Valencian, a dialect of Catalan), and it is a community known for a multitude of sports including Valencia pilota (a handball sport), football (soccer), and motorcycle racing.
The final community we will look at is in the northeast region of Spain, with a very small landscape but a population of over 2.1 million. Officially there is no capital city in Basque, but Vitoria-Gasteiz is treated as such. Basque is a titan of industry in Spain, with a respectable GDP for its size and the second-highest income per capita of any community. Cooking and cuisine is a large part of Basque culture and is one of the largest attractors of tourists for the area.
Understanding Spanish Culture
Understanding a bit about the communities and their cultures can help you target your products and tweak your listings appropriately. Spain is a country modernizing itself while keeping dear some long-held traditions. Many would say that Spain’s way of life is centered around living in the moment and the community, and that shows through its traditions.
Spanish culture is very regional and you should avoid generalizing about Spain as it might come across as culturally unaware. If you think your product might do particularly well in one region, you would be better off tweaking the listing to appeal specifically to that region rather than trying to generalize and appeal to all of Spain in hopes of picking up more sales.
10 Interesting Spanish Cultures
-
Spanish culture is more group-focused, whereas American culture is more individual-focused. High-quality hospitality or bulk utensils and tools that can serve larger groups can be a great place to start evaluating products. Look for niche products that may have less competition, but stay away from competing with products that may have a local, hand-crafted alternative—especially if you’re focused on high quality.
-
Spanish culture is very risk-averse and consumers avoid uncertainty in brands/products, whereas US shoppers are more concerned with price. Having a solid set of reviews will be particularly important, and growing your own brand can help with the success of future products for consumers who have previously purchased from you. Also, don’t waste your time competing with products that have seemingly few listings but one extremely successful seller.
-
Spaniards shop online for speed and convenience. For day-to-day products like groceries, the convenience factor is handled by small local shops which populate every neighborhood. For less common products, online shopping tends to be the way to go. Long shopping trips can interrupt social life, especially when few shops remain open midday. Ordering products online and having them shipped home is much simpler and speedier.
-
Highly environmentally conscious. For example, it’s common practice to leave the lights off all day until they are absolutely necessary in the evening. Spaniards also tend to hang dry clothes instead of using an electric dryer. Keep this in mind when looking at highly disposable products and product packaging. Too much waste could be something that turns Spanish consumers away.
-
Are known to “live in the present,” and are known for fiestas and social gatherings. Understanding the popular Spanish holidays and seasonal sales in order to focus your products and efforts around them. Popular seasons include: Winter – usually beginning on January 7th and running as late as March Summer – often running from July 1st all the way through September . Black Friday – the Friday following Thanksgiving Christmas – like anywhere else, the holiday has it’s own sales season that starts immediately after Thanksgiving.
-
Spanish conversation often starts more casually than you might be used to in the US. Avoid things that are “pesado” or intense when you are crafting your listings. Similarly, when looking through translations, you should avoid using “usted” and other similar language. “Usted” is a formal usage of “you” and is too formal for regular use
-
Traditional hours for small brick and mortar shops are around 9 a.m. to 2 p.m., and then re-opening from 5 p.m. until 8 p.m.. The afternoon gap gives people an opportunity to go home for lunch and spend time with others. but it can also create an inconvenience that online shopping fills. Additionally, shops typically only open on Saturday mornings and never on Sundays. (Note: Large supermarkets and department stores like the ones in the US are often open during more standard business hours.)
-
A siesta after lunch is still common and acts as a quick refresher to allow for the longer days (or later nights) typical throughout Spain. A common misconception is that a siesta is an afternoon nap, but it is a bit more casual than that. You would never have a siesta in sleepwear, rarely in a bed, and never longer than 30 minutes. Otherwise, you run the risk of oversleeping and not feeling refreshed at all.
-
Spanish is still the predominant language throughout Spain, but younger generations in Spain are increasingly more likely to be bilingual (typically with English). This is especially common in urban cities and is reflective of the growing globalization of the economy and community.
Getting Started on Amazon.es
If this is your first international expansion effort into Amazon’s European marketplaces, you will need to create a seller account that will allow you to operate within the EU. While there are some tools and services that will allow you to duplicate the work that you have already done on your US Amazon Seller account, the accounts are not the same and will overall manage different listings, reviews, and financials.
While your North America Unified Account allows you to operate outside of the US (in Canada and Mexico), you cannot use it to operate in Europe.The very first thing to get started is to set up an account. Learn more how to set up account here.
When you create an Amazon Europe Marketplace Account, your seller account automatically enables you to sell on ALL Amazon EU marketplaces:
- Amazon.co.uk
- Amazon.de
- Amazon.fr
- Amazon.it
- Amazon.es
Unfortunately, if you have reviews on your US Amazon Marketplace listings, they will not transfer to your equivalent Amazon European Marketplace listings. There is a small exception to this. If there are no reviews for the product you’re selling, Amazon temporarily displays your reviews until local ones populate.
Why Sell on Amazon Spain
If you’re looking to grow your business internationally, the Spanish market is certainly one worth considering. E-Commerce is a growing industry for Spain, for reference Spain is considered the 4th largest B2C market in the EU, right behind UK, Germany, and France. Spanish consumers are comfortable with the online shopping experience. With a high level of internet user penetration, the potential for eCommerce opportunities for U.S companies is huge.
- Amazon
- Ebay
- El Corte Ingles
- Mediamarkt
- PC Componentes
- Vente-Privee.com
- Zalando
- Zara
- Carrefour
- Fashion is the top online shopping category in Spain, frequented by 65% of online shoppers. Consumer electronics comes in second with 55%, and books/CDs round out the top 3 at 46%. It is worth noting, however, that while these categories dominate online sales, they are also the most frequently returned products for Spanish shoppers.
Considerations When Selling to Spain
You will need to translate your listings to the official language of the marketplace! Amazon offers a service that automatically translates your Amazon US Marketplace listings. There is a common expectation amongst Spanish consumers for customer service to be provided in their local language.
Localization > Translation! Note: Having a computer automatically translate your listing word for word may not be the best option.The goal is conversion of sales, not just translation of text. Having a native speaker who can do local copywriting to the targeted market will create a much more impactful listing.
Informative Product Listing Spanish consumers are more likely to make a purchase when they’re confident about your product. By providing a thorough product information will add more trustworthiness.
When shopping online, Spanish shoppers tend to prefer online payment platforms such as PayPal, the payment method of choice for 77% of consumers. Debit and credit cards are still common though, with about 50% of orders being made by card.
Delivery Expectation The vast majority of Spanish shoppers expect their purchases to be delivered within 3-5 days
Simple Return Policy Spanish consumers expect a simple return process. If they don’t feel confident in a sellers return policy, most likely they will not even consider the purchase.
How PingPong Can Help You Win at Currency Conversion
Have you ever exchanged currency in a foreign country, only to realize you got a really lousy rate? Maybe you stopped at one of those convenient little stations at the airport with all the adorable flags of the world to exchange your money. You weren’t giving the process a lot of thought at the time, you just know you needed money. Later, once you got out of the airport you realized that you could’ve gotten a much better rate somewhere else.
Surprise! It’s no different when you’re selling globally on Amazon. PingPong will offer you a competitive FX rate and you can store all your currencies for the best deal.
PingPong is built for eCommerce merchants designed to simplify and streamline all your global payment needs. When you open a free PingPong multi-currency account, you’re offered a competitive rate and a place where you can manage all your currencies. With your balance, you can make free payments to settle VAT obligations, securely pay global suppliers, and more.
Make global payments a breeze!
You’ll need to make sure that you are compliant with Spanish law by officially setting up your business. Spain regulates businesses that operate within their country, and if you are using an Amazon European Marketplaces account, you will be operating as an EU business—not as a US business that simply ships to the EU. There is a short list of things you will need to accomplish. Note: if you already have an Amazon European Marketplaces account, you will be able to use it to sell across the EU, and many of the services associated with the account will likely cover you for Spain as well.
-
Set up either a Sole Proprietorship (empresa individual), Partnership (sociedad civil), or Limited Company (S.L. – sociedad comanditaria) within Spain. For an e-commerce business, a sole proprietorship would likely be enough and would be the easiest to set up. Right now there are no foreign business registrations (such as an LLC) that would be recognized internationally, so if you already operate a business in the US, you will still need to create a Spanish/European entity.
-
-
You will need a Número de Identificación de Extranjero (NIE) which establishes you as a business owner for taxation in Spain. This is a personal number, not specifically tied to your business. If you are in a partnership with anyone else who will be operating at a Director level or above, they will need an NIE as well. You can find a great guide on getting your NIE here.
- Outside of the VAT (value added tax) found throughout the EU, Spain does not have any additional taxes on e-commerce businesses specifically. The rate set by the Spanish government is 21% on most goods. More info on VAT can be found here.
-
Finally, you are going to need an EU shipping and return address to open an Amazon Europe Marketplace store. For sole proprietors who do not reside within the EU, maintaining this can be challenging, but there are vendors who will assist with that as well.
-
As far as advertising, Spain abides by the same laws that govern the rest of the EU, but there are no special considerations needed for operating in Spain.
-
Customs and Shipping in Spain
The final major hurdle to be aware of is shipping to Spain. Like any EU country, you will need to go through customs as well as get your products to Amazon’s fulfillment centers. Being caught unprepared for customs and shipping expenses can be a huge profit margin killer, so it is important to understand Spain’s process inside and out before proceeding. Worth noting, you can ship within the EU without having to pay an import tax (e.g., from the UK to Spain), which is one of the factors that makes scaling to other Amazon European marketplaces so easy.
-
If you are operating outside of the EU or if your products are coming from outside of the EU to Amazon’s Fulfillment Centers, you are going to need to pay an import tax. The actual rate of the import tax will vary depending on your product. You can read more about restrictions for importing here, and import tax rates for the entire EU can be found here.
-
Fortunately, once you have shipping to the EU figured out, it tends to be similar for many countries. Spain is no different, and it has no specific restrictions to note outside of the EU restrictions and import tax rates.
-
Just like operating in Amazon’s US marketplace, you will need to send your product(s) to Amazon’s Fulfillment Centers. There are a handful throughout Spain
Amazon Fulfillment Centers in Spain
BCN1 – Amazon El Prat de Llobregat (Amazon Spain Fulfillment, S.L., Avigunda De les Garrigues 6-8, 08820 El Prat de Llobregat, Barcelona, Spain)
BCN2 – Amazon Martorelles (Amazon Spain Fulfillment, S.L., Carrer De La Vernada, 22, 08107 Martorelles, Spain)
BCN3 – Amazon Castellbisbal (Amazon Spain Fulfillment, S.L, Carrer Ferro, 12, 08755 Castellbisbal, Barcelona, Spain)
MAD4 – Amazon San Fernando De Henares (Amazon EU Sarl C/O Amazon Spain Fulfillment, S.L, Avenida De Astronomía, 24, 28830 San Fernando De Henares, Madrid, Spain)
XESA – XPO Logistics Alovera (XPO Logistics, Avenida Río Henares, 16, 19208 Alovera, Guadalajara, Spain)
XESC – Kuehne & Nagel Constantí (Kuehne & Nagel Warehouse, Amazon Deliveries, Avenida de las Puntas, 10, 43120 Constantí, Tarragona, Spain)
Expansion Project Plan Example
I’m a project manager by trade, and I firmly believe that any task that seems daunting or too big to tackle can be made easy by simply breaking things down into smaller tasks. Your global expansion doesn’t have to be any different. Below is a very simple yet effective template that you can use to map out the steps you need to complete in order to start selling on Amazon Spain Marketplace.
Summary: Spain is a beautiful country with a unique culture and consumers who are eager to explore more prouduct options when it comes to online shopping. Bringing your business to Amazon.es can open up your revenue streams to millions of potential new customers. This first leap can also help you gain experience and make you more comfortable with further international expansion. It is true that there is a lot to learn and consider, but growth isn’t intimidating if you have a solid expansion plan.
When you are ready to tackle Amazon’s Spanish Marketplace (Amazon.es), don’t feel as if you have to go at it alone. Among the business laws, currency exchange, and VAT (just to name a few), there are a lot of business functions to prepare for and understand, and PingPong can help you navigate the world of international expansion. Whether you are a new seller looking to get started or an experienced business owner looking to expand, your first step should be setting up a free account on www.pingpongpayments.com today. Our experts are ready and eager to help your business go #movingforward
