Selling on Amazon has opened the opportunity to expand into international markets and grow your e-commerce business. In the US, 74% of shoppers start their product searches on Amazon and in large European marketplaces, up to 80% of consumers shop on Amazon. And 90% of these consumers end their search with a purchase. Leading Amazon markets such as the UK (579M), US (2.45B) and Germany (429.7M) see millions of visits each month, clearly indicating the market opportunity but also high competition and a need for thorough research and planning.

So, what does it take to launch your product to new, foreign markets, and what are the opportunities and the potential pitfalls?

Sales Director, Sean MacMahon, explores expanding into Amazon’s global markets in the BHETA International Expansion webinar.

For a quick overview of the webinar, this blog highlights:  

Foreign marketplaces and competition;

3 things to consider when you’re getting ready to sell internationally; and

Marketing and advertising in international markets

Foreign marketplaces and competition

Selling on Amazon’s international marketplaces allows brands to expand their reach and sell their products to a larger pool of shoppers. International marketplaces like the UK, US and Germany are mature markets and well-populated with buyers who are smart, savvy and well acquainted with online shopping. Although these marketplaces show slower growth, their size, infrastructure and advanced state of e-commerce are still attracting global sellers.

Smaller European marketplaces are an underdeveloped opportunity to enter the market early and to offer products on the Amazon marketplace that does not exist yet or have low competition – and it’s worth exploring where your products might meet demand.

3 things to consider when you sell globally

1. Logistics

Before selling in an international marketplace, it’s essential to have a logistics plan. How will the products be shipped? Where will they be warehoused? And are there any customs considerations or obstacles that you may encounter? A simple solution is to use Amazon FBA and house products in a central warehouse. It lowers the chances of shipping issues: it makes it easier for you to ship to Amazon, mitigate excessive fees, and for Amazon to ship to various international markets. 

2. Legislation and tax

Amazon’s marketplaces are subject to legislation and tax compliance in their operating countries. Therefore, it’s essential to understand the rules around warehousing, shipping, and selling in the marketplaces you’re expanding to and your tax/VAT obligations. Europe has a one-stop-shop rule for e-commerce businesses that allows you to pay tax/VAT only in the country where you warehouse your products while selling in different European markets. 

3. Product offering 

The international market in which you’re expanding may have preferences, and you might find that your products perform differently than your local market. The best practice is to start with your best sellers and then test groups of products in the new marketplace. It will alleviate some of the challenges with deciding which products to sell and dealing with slow movers or products that don’t sell. 

Marketing and advertising in international markets

Marketing and advertising refer mainly to your product detail pages, A+ Content and advertising campaigns on Amazon. When expanding into international markets, your content must be translated to the local language and contextualised to the local market. Localisation has a measurable impact on listings and advertising performance and influences the success rate of your expansion efforts. 

Amazon support for Sellers and Vendors

Finally, Brexit has made a previously simply process more complex and international expansion will take meticulous research, planning, and testing of products and strategies in new marketplaces. Amazon has prepared a wealth of information to support sellers with this transition, including a dedicated support page which is found here.

Move your company from where it is to where it wants to be.

At RT7 Digital, we’re committed to helping you utilise Amazon’s latest platform features and consumer trends. We have first-hand experience from years selling our own products on the Amazon marketplace and bring this knowledge to our clients. Our tried-and-tested methods allow us to guide you in making data-driven decisions about your current and future Amazon business.

Contact us for a commitment-free Amazon audit.