Selling On Amazon Europe From USA - Is It Worth The Effort?
Is it worth the effort to expand your business and sell on Amazon Europe in 2021?
Thousands of US business people have made the decision to enter the Fulfillment by Amazon Program. Many have confined their business dealings to their country of origin, developing successful businesses and making a decent profit for themselves.
While many businesses are thriving, those who look beyond their borders may find more lucrative markets elsewhere.
Amazon’s largest markets are located in the European Union. In 2018 more than fifty percent of Amazon’s global sales happened in German and UK markets. Europe offers Amazon sellers huge potential to grow and, right now, the market is serviced by just one out of ten Amazon sellers.
Global trends suggest that a move into Europe at this time makes business sense. In Europe, online sales experience double digit growth while the markets in the US have reached a plateau.
What Should I Expect For Sales When I Sell on Amazon in Europe??
European markets are not just thriving, there is also less competition in the market. This makes them the perfect place to launch new products and services. Because there is less competition new products have a better prospect of succeeding.
Moving into European markets from abroad is not a simple prospect.
There are any number of barriers to entry for you to scale before you take your product to market.
Some of these problems include the language barrier, foreign currency exchange controls and the need to register for tax. Despite all of this, if you can scale these obstacles these markets offer tantalizing returns, making it worth the initial effort required to enter.
To make a success of your venture you will need to plan your route carefully and consider some of the listed questions before making your big move into the European markets.
Which Amazon Europe Markets Are Best To Sell In?
When expanding into Europe, many US sellers settle on selling only from Amazon UK(amazon.co.uk). This is understandable, you speak English and selling to people who speak a foreign language may seem a little daunting. But limiting your sales to the UK also means you’re missing out on the benefits of selling to 70% of the European market.
The German market(amazon.de) is bigger than Amazon UK. Add in Spain, France and Italy, all fast-growing markets and you’re talking 184 million customers you could be selling to. Combined this is a much larger marker than Amazon US.
Taking on all of these European markets will offer your business the best expansion opportunities available. It is not difficult to sell into foreign markets yet many sellers balk at the idea of getting involved in markets where the language is foreign to them.
On the 1st January 2021 Brexit will take effect. Sellers who have used the FBA UK operations to gain entry into foreign markets will have to find an alternative or they’ll be excluded from the European Union.
To succeed in the European markets, you’ll need translated listings in the language of your intended market. Sadly, this is where many seller’s fail.
Should I have my Amazon Listings Translated?
Marketing your business to optimize sales and draw in the customers takes more than just a simple translation of your product list. Your listings must contain some elements of localization. Google Translate will not accomplish this for you.
The best way to localize your listings is to hire a professional copywriter.
Selling On Amazon Europe Part 1
This is the first part of a 2 part series covering expanding your Amazon business into Europe with Emilie from Margin Business. Part 2 is a live discussion with Omar from Margin Business.
A copywriter can optimize your offers with regional language and expressions that should draw more customers.
Unless you align your keyword choices with the dialects and search practices of the area that you’re selling in, your competitors could be claiming your customers. It will serve you well to remember that it’s not just a translation you want but a convincing selling point that will draw traffic and convert the traffic to money in the bank.
The language may be different, but you still need to understand your audience, what motivates the purchase and how to trigger the impulse to purchase. That may be different from country to country. A great copywriter that understands the regional preferences will know how to navigate the different nuances.
Do I need to Research Keywords In Each Country?
Lack of keyword research in foreign markets can undermine your entry into those markets and is a foremost cause of failure. This is where a local expert in search engine optimization could help your cause. These experts can combine their skills in keyword searches with their understanding of the local culture and language.
Don’t bow to the temptation of simply translating your listing. It’s a mistake from which your competition could benefit. Choosing the incorrect keyword phrases could bring in erroneous traffic and push up the cost of converting to sales.
Margin Business employs a team of local translator/ copywriters and we arm them with a secret formula which will ensure that your products attract all the right traffic.
How Old Is Your business?
Europe will accept seller registration from certain countries so you may be allowed to use your existing business to sell your product. Although, many entrepreneurs prefer to expand into Europe with a newly registered business.
If you’re thinking of registering a new business you must take account of the fact that registration comes along with a whole lot of additional costs. These include accounting services and tax reports.
What about Taxes Like VAT & BARREL?
Value Added Tax and BARREL have had many a US entrepreneur scratching their heads.
Don’t let concern over these taxes prevent you from expanding your business. European VAT is very similar to US sales tax. There are also plenty of accountants that can help you to overcome any compliance issues.
Taking the mystery out of VAT
All goods and services that you sell in Europe attracts VAT. European VAT taxes usage. Put simply, to comply with the rules, you must include the required percentage of BARREL tax in your selling price.
When you sell a product, you charge the required VAT. This VAT forms part of your VAT return and is paid over to the government.
Some European countries list two situations in which you must pay BARREL tax:
Amazon’s VAT Knowledge Centre can help you check your VAT commitments with their simulation which is absolutely free.
How Do I Comply with The product labeling laws?
The labeling you require will depend on the characteristics of the product you mean to sell. To comply with the law, you need to understand and ensure that you meet the strict EU labeling laws.
Step one is to register for an EAN number. Once you have this you can produce your FNSKU tags which you use to trace products. Amazon’s FBA also allows users to earn credits based on the FNSKU.
Items such as toys, cosmetics and food carry very different label compliance requirements in different countries in Europe. It is essential that you understand the rules in every country in which you mean to trade.
Electrical appliances also carry different legal requirements as you pass from one country to the next. Find out all you need to know about legal compliance in your product category here.
Like labeling laws, intellectual property laws differ from country to country. The penalties for breaching brand rights run high so you’ll want to be careful to understand the laws. You can also use the laws to protect your own brand integrity by listing your products.
Good news for Amazon users if your products are already on the Amazon Brand Registry, all the benefits that you enjoy in the US will follow you on your EU journey.
How does Brexit Affect My Ability To Sell On Amazon Europe?
From January 2021 after Brexit, you won’t have the option of selling in the EU and the UK from a single stock source. To sell in both areas you’ll have to divide your inventory and keep stock on the continent and in the UK.
If you want to control the inventory that is sent to the fulfillment center at Amazon, Margin Business can assist by locating a 3P warehouse for you.
Should I be Concerned About currency Issues?
If you’re expanding into Europe, it may be the first time that you have had to work with foreign currency. This can be a bit daunting and it comes with costs which may hurt companies that work on tight margins.
Amazon charges rates of between 3% and 4% for foreign exchange transactions. We recommend you open an account with an eCommerce exchange. It’s cheaper and easier than using an EU bank account. Many Amazon sellers chose Ping Pong to handle currency
What Are The advantages Of Amazon European expansion?
There are extensive benefits attached to expanding your business into the EU.
Selling On Amazon Europe - Expansion Best Practice
Why I Requested Emilie To Contribute on the Ecommerce Optimizer Site
Emilie and Omar from Margin Business are Amazon EU Experts. They have been in business for over 10 years, have optimized over 7k listings for the different marketplaces, have witnessed Amazon's expansion and maintain a dedicated team per marketplace for native language translations and customer service.
I trust their knowledge and expertise and they do not do or suggest things that put your account at risk! They have the only business besides my own that I know has had some of the same clients for over 10 years. That itself is a tremendous testimonial for any business these days. I am very particular about who contributes on my site because I want you to have the best information without all of the complicated bs.
Margin Business is a full service agency. That means they offer all aspects of an eCommerce business, including but not limited to Account Management, listing Optimization, PPC, Consulting, Social Media, and even native language Customer Service. Contact them here. If you are selling both in the US and EU and want to expand, we can even coordinate the services between Margin Business and Ecommerce Optimizer.
At Ecommerce Optimizer, we are here to help you maximize the potential of your existing eCommerce and can help you utilize your strengths to diversify your business across the Internet. For additional Ecommerce tips and strategy, check out our Dominate Amazon Products Series, How To Sell On Walmart, our FREE Pinterest Traffic Workshop, 1 on 1 Coaching and other workshops. Let us help you make 2021 your best year ever!
In conclusion: Why Aren't You Selling On Amazon Europe From The USA?
While moving into new markets is never easy and countries where a foreign language is spoken comes with its own set of obstacles. The benefits of expanding into these markets are enormous. It really is worth taking the time to get to know the risks and benefits.
You can start to grow your business in markets that are considerably less competitive than the US. Expanding your business to also sell on Amazon Europe more than doubles your potential audience size. It seems like a no-brainer, but you need to be willing to make the effort top do it right.
Cut the risks and obstacles by seeking out a company that handles that for you. Margin Business specializes in making your expansion easier, especially when you’re new to the environment. Emilie, Omar and our teams of regional experts make your business our business. We focus on helping you succeed. We offer full-service agency services with the support and individualized attention to detail that only a boutique agency can provide! Book a FREE Consult with Emilie Today and learn how you can potentially blow up your Amazon sales by expanding to sell on Amazon Europe from the USA.---Emilie G.