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JENS BERGERMANN

When entering international markets, there's no way around Amazon: The e-commerce giant holds an uncontested dominant position in almost every country worldwide, offering access to a vast customer base.

Selling on Amazon works best through Fulfillment by Amazon (FBA). Online retailers can list their products on the Amazon platform without worrying about storage, distribution, or customer management – these business areas are entirely handled by Amazon.

Can I sell on Amazon from Switzerland? This is theoretically possible – Amazon FBA is also available to Swiss sellers if the sale is conducted via a foreign Amazon website. However, this requires exporting goods to an FBA warehouse in an EU country. This comes with significant logistics and organizational costs, which is why Amazon FBA is generally not profitable for Swiss companies.

What about the other way around? Selling from abroad to Switzerland via Amazon FBA is not possible at all. If you want to import your products to Switzerland but avoid the huge import and customs fees, you'll need a strong local distribution partner like SURS. We offer a comprehensive fulfillment solution, including Swiss warehousing, enabling you to enter the Swiss market seamlessly.

What Is Amazon FBA and How Does It Work?

Amazon FBA (Fulfillment by Amazon) is a distribution channel where Amazon takes care of storage, shipping, and customer management for sellers. Online retailers list their products on the Amazon platform, and the e-commerce giant handles all relevant logistical details.

For sellers, this is extremely convenient: they gain access to Amazon's established infrastructure and its vast customer base, without having to worry about storage or product delivery. In addition, the tedious task of handling returns is also outsourced to Amazon.

As such, Amazon FBA is very similar to dropshipping – in both cases, there’s no need for a personal warehouse. However, while product sales in dropshipping continue to be handled through the seller's own marketplace, in Amazon FBA, sales are conducted on the Amazon website. Sellers also benefit from Amazon's brand recognition, with Amazon Prime now also serving as a mark of quality.

To get started with Amazon FBA, online sellers only need to set up a seller account and register for the FBA program. Sellers then send their products to an Amazon warehouse – where they are stored until sold and then shipped to the customer.

Therefore, Amazon FBA is particularly well-suited for businesses looking to expand their reach and enter international markets. In a globally-oriented e-commerce strategy, Amazon FBA can play a key role, as it enables easy internationalization.

What Costs and Fees Are Associated with Amazon FBA?

Note: Amazon does not have a country-specific platform for Switzerland; Swiss customers are always redirected to the German, French, or Italian websites. Therefore, all monetary values are listed in EUR and not CHF.

Online retailers need to consider various cost factors when using Amazon FBA. It starts with setting up the seller account: You can sign up either as an individual seller or as a professional seller. Individual sellers pay a fee of €0.99 per item sold, while professional sellers incur a monthly subscription fee of €39.99, which covers all sales.

For online retailers weighing between these two options, a simple calculation is possible: For a monthly sales volume of up to 40 units, it makes sense to register as an individual seller, otherwise, a professional seller account is recommended.

Additionally, there are sales fees, storage fees, and shipping fees:

The sales fee is charged by Amazon for each sold item. The exact percentage depends on the product category and sometimes the total sale price. For media products (e.g., books, DVDs, or video games), there’s an additional closing fee of €0.81 or €1.01 per item sold. Many product categories also have a minimum sales fee.

Here’s how the cost structure looks for three sample product categories:

• Beauty, Health, and Personal Care: Sales fee of 8% (total sale price ≤ €10) or 15% (total sale price > €10), minimum sales fee of €0.30

• Software: Sales fee of 15% + closing fee of €0.81 per unit, no minimum sales fee

• Electronics: Sales fee of 7%, minimum sales fee of €0.30

The storage fees for Amazon FBA are calculated monthly and depend on the volume used in Amazon’s fulfillment centers. Additionally, it’s important to note that storage costs are higher between October and December than in other months. Similarly, shipping fees are based on the size and weight of the product.

Here is a detailed overview of the cost structure for Amazon FBA.

The sales fees cannot be changed. To optimize costs, it’s especially important to minimize storage and shipping fees. Long-term storage fees, in particular, should be avoided, as they drastically reduce profitability – online retailers who want to sell via Amazon FBA must therefore ensure an efficient inventory management system.

How to Choose the Right Products for Selling on Amazon FBA?

A well-thought-out product selection is crucial for a successful e-commerce business on Amazon. The following factors should be considered, among others:

• Selling Price

• Product Size

• Product Weight

• Shipping Box Size

Light, small, and compact products are ideal for Amazon FBA as they incur low storage and shipping costs. Moreover, it's important that units sell quickly and often. The longer an item stays in the warehouse, the higher its costs. Therefore, units with a fast turnover, such as Fast Moving Consumer Goods (FMCG), are especially attractive.

Here are some examples of product categories that stand out for both stable demand and good profit margins:

• Health Products and Cosmetics

• Books

• Home and Kitchen Items

• Baby Products and Toys

• Jewelry

Despite all the benefits Amazon FBA offers, online retailers must not forget: Due to Amazon's immense popularity as a sales platform, the competition is extremely high. Therefore, it is not enough for a product to belong to a suitable category—it must also rank highly within its category. This can be determined through the Amazon Best Sellers Rank (BSR). A low BSR indicates a high sales frequency.

To select the right products and place them on the marketplace, online sellers should not only rely on their personal expertise but also invest significantly in market research and competitor analysis. It's also worth utilizing Amazon Seller Tools like Jungle Scout or Helium 10: These provide detailed insights into categories and search queries on Amazon. This information offers an objective foundation to identify profitable niches and assess demand and competition levels.

Trends and customer needs can also be identified by analyzing sales data and customer reviews. In this case, it's recommended to use relevant tools, such as Keepa and CamelCamelCamel, which are among the most well-known price trackers. Analyzing price and sales histories will help you make informed decisions and optimize pricing strategies.

Special Case Switzerland: Shipping, Costs, Customs, and Taxes

Every consumer from Switzerland will know all too well: Switzerland is an absolute exception in the global e-commerce world and is one of the few countries that has yet to be captured by the overwhelming market dominance of Amazon. Instead, other platforms like Digitec Galaxus or Manor achieve the best sales figures—on our blog, you can learn more about the most important Swiss marketplaces and their strengths and weaknesses.

Especially important for online retailers: There are no FBA warehouses in Switzerland! In fact, there is not even a country-specific website, which means all sales must be processed through foreign Amazon websites. Due to the lack of warehouses, Swiss sellers must send their products to Amazon fulfillment centers in a neighboring country, with Germany being the most suitable option.

However, this comes with some pitfalls and hurdles. Switzerland is not a member of the European Economic Area (EEA) and has extremely strict customs regulations. This leads to significantly higher export and delivery costs, which can make exporting completely unprofitable.

The regulations regarding VAT are also complicated. Let's take Germany as an example: Anyone generating revenue in Germany must register for tax purposes there and also remit VAT. Swiss companies therefore need a tax number in every country and must also apply for a German VAT identification number. The competent authority for Swiss matters is the tax office in Constance.

What may seem relatively simple on paper is, in reality, often a lengthy process that consumes significant time and organizational resources. Therefore, do not jump into cross-border sales unprepared—it's essential to thoroughly check all legal requirements beforehand and, if necessary, consult a tax advisor or trustee.

How to Start as an Amazon FBA Seller in Switzerland?

Since with Amazon FBA most business operations are outsourced, a lower startup capital is required, compared to starting a traditional business. However, some liquidity is still necessary. The exact amount of required capital cannot be generalized as it depends on the size of the business. For instance, if you're just looking to earn a small side income as a sole seller, you won't need more than a modest four-figure sum.

If, however, you're planning to start a full-time e-commerce business as a professional seller, you need to account for Amazon's large customer base. With its extensive reach, high demand can be generated, so you'll need a substantial product volume—if you can't restock products quickly enough, you risk losing your reputation in the marketplace.

The calculation of your startup capital starts with the cost of acquiring inventory, which is determined by the product's purchase value and the quantity of items. Also, be sure to conduct a thorough competitive and market analysis early on to estimate demand accurately.

Additionally, there are all the FBA fees for sales, shipping, and storage (as mentioned above). To ensure a product ranks well on Amazon, a solid product listing is also necessary—investing in Amazon SEO and professional product photography is highly recommended.

Lastly, don't forget: Since there are no FBA warehouses in Switzerland, all products must be shipped abroad, which is associated with significant additional costs due to Swiss customs regulations. Therefore, it's essential to carefully consider whether Amazon FBA is a viable option given the logistical, legal, and tax challenges involved.

Should Swiss Sellers Consider Amazon FBA?

Amazon FBA offers numerous advantages—and for Swiss sellers as well. Amazon's extensive warehousing and distribution infrastructure allows online sellers to store and ship their products efficiently, without having to manage the logistics themselves.

This lowers the entry barrier and allows you to focus on scaling your business and expanding your product range. Moreover, Amazon gives your products greater visibility and attractiveness, which leads to higher sales. Amazon FBA is particularly beneficial when expanding into new international markets.

Notably, lightning-fast shipping via Amazon Prime is another perk—this is an advantage over Amazon FBM (Fulfillment by Merchant), where sellers sell on Amazon but are still responsible for storage and shipping themselves.

However, all these benefits come with a significant downside that usually outweighs the advantages: the lack of Swiss FBA warehouses. The need to ship products to foreign FBA warehouses results in hefty additional costs. Furthermore, companies are required to register for tax purposes in every EU country once they exceed a certain sales threshold. This creates a significant administrative burden and increases costs even further.

In our opinion, Amazon FBA is generally not recommended for Swiss sellers. The necessary economic efficiency would only be achievable if the company owns a warehouse and a branch (GmbH or AG) in another EU country or if the goods are delivered directly from another seller to a foreign FBA warehouse. Without these prerequisites, Amazon FBA is usually not a sensible option for Swiss companies.

Can I Sell to Switzerland through Amazon FBA?

Selling to Switzerland through Amazon FBA is currently not possible. While selling FBA inventory to other countries is typically not an issue, Switzerland is an exception in this case. For online sellers still wanting to tap into the lucrative Swiss market, the only viable option is selling through a local marketplace. However, this requires a local warehouse in Switzerland, which is not a cost-effective option due to customs and shipping fees.

Instead, it is recommended to collaborate with a strong local distribution partner like SURS. We act as an FBA substitute and handle all the functions that Amazon FBA would typically cover. This includes the entire storage and distribution process—thus effectively resolving all the logistical and legal hurdles of entering the Swiss market.

Our offering goes beyond mere fulfillment: We provide a holistic all-in-one service that also covers key aspects like marketing and product listings. Additionally, we offer reliable connections to all local marketplaces—platforms like Manor or Zalando are known for their highly selective partner criteria, making them almost inaccessible to foreign online retailers. With SURS, you can successfully achieve full market penetration in the lucrative Swiss e-commerce landscape.

Conclusion: Amazon FBA from Switzerland? Possible, but Usually Unprofitable

It is possible for Swiss companies to sell across borders using Amazon FBA. However, the products must be exported to a foreign FBA warehouse, which incurs significant additional costs. Therefore, Amazon FBA from Switzerland is only economically viable if the company has an EU branch.

FAQs

What is the difference between Amazon FBA and Amazon FBM?

Both FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) allow online retailers to sell their products on Amazon’s website. With Amazon FBA, the e-commerce giant also handles storage, shipping, and customer service, whereas with Amazon FBM, these tasks remain the responsibility of the seller. This comes with greater effort but also more control and potentially lower costs.

Why are there no FBA warehouses in Switzerland?

By working with specialized distribution partners familiar with Swiss regulations, you can optimize customs processes and account for local laws and agreements. Amazon has no presence in Switzerland at all. This is primarily due to complex import and customs regulations, which is why Switzerland plays an isolated, special role in e-commerce. This also explains the lack of an online presence—there is no country-specific Amazon.ch website. Therefore, there is no FBA program for Swiss online retailers—they must use fulfillment centers in other countries instead.

Is Amazon FBA even possible in Switzerland?

It all depends on whether the products are being imported into or exported out of Switzerland. Swiss online retailers can sell their goods outside the country via Amazon FBA—this is processed through a foreign FBA program. However, due to high export fees, this is usually not profitable. The reverse direction is not an option: Foreign online retailers cannot use Amazon FBA to sell their products in Switzerland. Instead, they should cooperate with a local distribution partner like SURS to enter the Swiss market.

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