Amazon Comparison
Amazon Seller vs. Broker – Sell Yourself or Use a Broker?
Overview
When you want to sell on Amazon in Europe as a brand or manufacturer, you face a fundamental decision: Do you open your own Seller account and handle everything yourself – from compliance and VAT to customer service? Or do you partner with an Amazon Broker like SPACEGOATS, who sells your products across 11+ EU countries through their established Seller account? Both models have clear advantages and disadvantages. This comparison helps you make the right decision for your business.
Own Seller Account
You open your own Amazon Seller Central account and sell directly to end customers. You are responsible for all aspects of selling – from product listings to compliance, VAT, customer service, and returns. You have full control but also carry all the risk.
Pros
- +Full control over pricing, listings, and ad campaigns – you decide every detail of your Amazon presence
- +Direct brand building under your own name – your brand appears as the official seller, building long-term trust
- +Access to customer data and buyer behavior – you can use Amazon Brand Analytics and other tools for data-driven decisions
- +Full margin – you only pay Amazon fees without additional broker commission
- +Independence from third parties – you are not dependent on a broker's performance or availability
- +Long-term asset building – an established Seller account with sales history has standalone business value
Cons
- -High compliance complexity – CE marking, GPSR (General Product Safety Regulation), EPR (Extended Producer Responsibility) must be fulfilled individually per country
- -VAT registration required in each EU country – including ongoing tax filings, OSS management, and local tax obligations
- -Customer service burden in multiple languages – Amazon requires native-language support in every active marketplace
- -High upfront investment – account setup, legal counsel, tax advisors, tools, and advertising budget quickly add up to five-figure amounts
- -Risk of account suspension – violations of Amazon policies can lead to immediate suspension, jeopardizing all revenue
- -Long lead time – from account opening to first sale in multiple countries, 3-6 months or more often pass
Amazon Broker (e.g. SPACEGOATS)
An Amazon Broker like SPACEGOATS sells your products through their own established Seller account on Amazon. The broker handles compliance, VAT, customer service, and logistics coordination. You supply the goods and set the strategy – the broker takes care of the operational execution on the marketplace.
Pros
- +Instant access to 11+ EU countries – SPACEGOATS is already active and established in all relevant European Amazon marketplaces
- +No own Seller account needed – you save yourself the account opening, verification, and risk of account suspension
- +Compliance is fully handled by the broker – CE, GPSR, EPR, and all country-specific requirements are the broker's responsibility
- +No own VAT registration required – the broker sells on their account and handles all tax obligations across the EU
- +Fast market entry in approx. 30 days – instead of months of preparation, you are live on Amazon within weeks
- +Shared infrastructure and reduced risk – you benefit from the broker's existing account history, customer feedback, and established processes
Cons
- -Lower margin due to broker commission – the broker receives a percentage of revenue for their services
- -Less direct control – decisions on listing changes or ad campaigns go through the broker and may take longer
- -Dependency on broker performance – the quality of customer service and account management depends on the broker
- -Brand appears under the broker account – the seller name on Amazon is the broker's, not your own company name
- -Limited access to Amazon analytics tools – Brand Analytics and other seller-specific data are only available indirectly through the broker
Comparison Table
| Criterion | Own Seller Account | Amazon Broker (e.g. SPACEGOATS) |
|---|---|---|
| Time to Market | 3-6 months (account opening, verification, compliance, VAT registration) | Approx. 30 days (onboarding, listing creation, shipping goods to FBA) |
| Compliance Burden | High – manage CE, GPSR, EPR per country yourself; ongoing updates required | Minimal – broker handles all compliance requirements |
| Number of Countries | Gradual expansion – each country requires separate registration and setup | Instantly 11+ EU countries available through the broker's existing account |
| Upfront Investment | High (EUR 10,000-30,000+) – legal counsel, tax advisors, tools, ad budget | Low – mainly product costs and onboarding fee |
| Ongoing Effort | High – customer service, tax filings, listing maintenance, ad campaigns, compliance updates | Low – strategic coordination with the broker, product supply, product development |
| Margin Structure | Full margin minus Amazon fees (approx. 15% referral fee + FBA costs) | Margin minus Amazon fees and broker commission (varies by provider) |
| Risk | High – account suspension, compliance violations, and tax errors can be existentially threatening | Low – broker carries the account risk and has established processes for risk mitigation |
| Scalability | Scales well, but each new country significantly increases administrative overhead | Scales very well – new products and countries without additional administrative overhead |
| Brand Ownership | Full brand control – your company name as seller, own Brand Registry possible | Brand is visible, but seller name is the broker's; Brand Registry possible through broker |
| VAT Handling | Own registration and ongoing filings required in each EU country | No own VAT registration needed – broker handles everything through their account |
Our Recommendation
Both models have their merit – the right choice depends on your starting position. An own Seller account is ideal if you already have Amazon experience, have the resources for compliance and tax law, and want to build a standalone marketplace presence long-term. For brands that want to enter the European Amazon market quickly and with low risk, an Amazon Broker like SPACEGOATS is the significantly more efficient solution. You benefit from instant access to 11+ EU countries, don't have to worry about compliance or VAT, and are live in approximately 30 days. Especially for brands outside the EU that want to sell without their own European legal entity, the broker model is often the only practical path. Many brands start with a broker, validate their market potential, and later switch to their own Seller account if needed – an approach that SPACEGOATS actively supports.
Frequently Asked Questions
What exactly is an Amazon Broker?
An Amazon Broker is a company that sells other brands' products through its own established Amazon Seller account. The broker handles the operational execution – from listing creation to compliance, VAT, customer service, and returns management. The brand remains the product owner and sets the strategy, while the broker provides marketplace expertise and infrastructure. SPACEGOATS is such a broker with a focus on the European Amazon market.
How does the margin structure work with the broker model?
With the broker model, the broker sells your product on Amazon and receives a commission – typically a percentage of net revenue. From the selling price, Amazon fees (referral fee, FBA fees) are deducted first, then the broker commission. The remaining amount is paid out to you. Although the margin per unit is lower than with your own account, you save the significant fixed costs for compliance, tax advisory, tools, and customer service – so the total profit is often comparable or even higher.
Can I switch from a broker to my own Seller account later?
Yes, switching is generally possible and is even supported by reputable brokers like SPACEGOATS. Many brands use the broker model as an entry point to test the European market and collect sales data. When the business grows and investing in your own infrastructure becomes worthwhile, the transition to your own account can be planned. You keep your brand registration and product reviews. SPACEGOATS offers this transition process as part of its service offering.
Who handles product reviews in the broker model?
In the broker model, product reviews are collected on the listing and remain linked to the product – not the seller. This means your reviews can be retained even when switching to your own account later. The broker typically supports you with review generation strategies, such as Amazon Vine or the Request a Review program.
Do I need my own European legal entity to work with a broker?
No, this is one of the biggest advantages of the broker model. Since the broker sells through their own European Seller account, you don't need your own EU legal entity, no European VAT registration, and no local business address. This makes the broker model particularly attractive for brands from the USA, UK, China, or other non-EU countries that want to sell on Amazon EU without their own European presence.
What happens to my products if the broker goes out of business?
This is a legitimate risk that you should consider when choosing a broker. With an established broker like SPACEGOATS, years of market presence and a solid corporate structure significantly minimize this risk. Contractually, it should be agreed that in case of business closure, you receive your FBA inventory back and can transition to your own account or another broker. SPACEGOATS offers corresponding contractual safeguards and actively supports brands in an orderly transition.