Embarking on the journey to expand your successful Amazon business to Europe is a commendable endeavour, signalling a strategic move towards even greater growth. Recognizing the potential of tapping into European markets signifies your commitment to reaching new heights in the global e-commerce landscape. However, the road ahead is not without its complexities. Challenges in terms of legalities, market nuances, and logistical intricacies may seem daunting, but rest assured, we are here to guide you through each step. Our comprehensive guide aims to simplify the expansion process, offering insights and strategies to ensure a smooth and prosperous transition into the dynamic and lucrative European market.
As you set your sights on this new frontier, envision the possibilities of not only reaching a broader customer base but also solidifying your brand’s international presence. The challenges may be plentiful, but with the right knowledge and strategic approach, your expansion to Europe can be a transformative step towards sustained success in the competitive world of e-commerce.
Which marketplaces does it cover?
Amazon boasts a global presence, with sixteen marketplace sites worldwide categorised into four regions – America, Asia-Pacific, Middle East, and Europe. For those looking to tap into European markets, the following Amazon marketplaces are available:
- Germany – amazon.de
- United Kingdom – amazon.co.uk
- France – amazon.fr
- Italy – amazon.it
- Netherlands – amazon.nl
- Spain – amazon.es
- Sweden – amazon.se
- Poland – amazon.pl
While the prospect of selling in all these markets is tempting, starting with one or two EU countries is advisable. Germany, often recommended by Amazon itself, serves as an excellent starting point due to its central location and significant English-speaking population.
What Are the Benefits of Selling on Amazon Europe & Why Should You Sell There Too?
1. More Customers:
Expanding to Amazon Europe opens the doors to millions of additional customers. Seller Central allows you to manage all EU marketplaces from a single dashboard, streamlining your operations.
2. Important Markets:
Countries like Germany and the UK represent eCommerce giants, making them crucial markets for your expansion. Additionally, in Italy, Spain, France, Germany, and the UK, Amazon stands as the leading ecommerce platform.
3. Less Competition:
Compared to Amazon.com, Amazon Europe has a smaller pool of active sellers. Many US sellers hesitate to navigate the complexities of the European market, offering you a unique advantage.
4. More Revenue:
Diversifying your revenue stream is a strategic move to safeguard against market fluctuations. Selling on various European marketplaces enhances your financial stability.
5. Reach a Wider Audience:
Expanding to Amazon Europe means reaching 28 additional countries. With 176 million monthly unique visitors to Amazon marketplaces in key European countries, your sales potential experiences a substantial boost.
6. Diversify Your Income Streams:
Diversification is a key principle for Amazon sellers. Expanding to a new European country reduces reliance on a single product in a single marketplace, providing a safety net against unforeseen challenges.
7. Build a Worldwide Brand:
Launching in Europe contributes to building a globally recognized brand. An internationally recognized brand serves as a formidable competitive advantage, setting you apart in the market.
8. Low Friction to Launch:
Expanding to Europe doesn’t require reinventing the wheel. Leverage your existing knowledge and tools, translating successful strategies for the new market. Amazon’s support for global selling further simplifies the process.
In essence, selling on Amazon Europe presents a golden opportunity to substantially increase revenue and establish your brand on a global scale.
How to Sell on Amazon Europe: Where Do You Start?
#1: Analysis of Your Current Situation and Goals:
Before taking the plunge, conduct a comprehensive analysis of your current business situation and outline clear expansion goals. Understanding where you stand and where you want to be is crucial. Ask yourself the following questions:
Can I Already Afford to Expand?
Expansion comes with financial challenges. Assess whether your business is financially ready for the complexities of selling on Amazon Europe. Honesty about your resources and timing is key.
Which EU Marketplace Should I Tackle First?
Choosing the right marketplace is pivotal. If you’re already selling in a European marketplace, consider it as your “home marketplace.” For newcomers, answering key questions about your target market, product distribution, competition, and demand will guide your decision.
#2: Check the Legal, Tax and Product Safety Compliance Requirements
Export to EU: Setting Up a European Company or Hire an Authorised Representative in the EU
When considering the expansion of your Amazon business to Europe, one pivotal aspect is the decision to set up a European company or appoint an Authorised Representative (AR). This strategic move is critical for ensuring compliance with intricate EU legal requirements. The appointed AR plays a crucial role in guaranteeing that your products meet the necessary standards, and navigating the regulatory landscape adeptly. Selecting a knowledgeable and experienced AR is imperative, as they become a key ally in successfully manoeuvring the complexities of the European market, safeguarding your business against potential legal pitfalls.
VAT Registration & Accounting:
In the process of expanding your Amazon business to Europe, a fundamental aspect is gaining a comprehensive understanding of Value Added Tax (VAT). Securing a VAT identification number, along with an Economic Operator Registration and Identification (EORI) number, is crucial for compliance with European tax regulations. Additionally, contemplating trademark registration is advisable for brand protection. To navigate the intricacies of European tax laws effectively, seeking the expertise of professional accounting services is highly recommended. Their familiarity with the nuanced tax landscape ensures a smooth and compliant entry into the European market, safeguarding your business against potential financial challenges.
Product Safety Compliance:
Ensuring compliance with EU product safety regulations is an absolute imperative when expanding your Amazon business to Europe. Manufacturers face the crucial tasks of conducting rigorous conformity assessments, comprehensive risk analyses, and essential tests to guarantee that their products align with European standards. Employing the services of a reputable third-party inspection company becomes instrumental in this process, providing an additional layer of assurance that your products not only meet but exceed the stringent regulatory standards set by the EU. This commitment to product safety not only fosters consumer trust but also mitigates potential legal risks associated with non-compliance in the European market.
Labels and Markings:
Navigating the European market demands meticulous attention to product labelling and markings. Each product category comes with specific requirements, making it crucial to ensure compliance with essential standards such as EU address specifications, CE marking, EU Ecolabel, and energy labels. Adhering to these guidelines is paramount for successful market entry, as failure to comply may lead to regulatory issues. Familiarising yourself with the nuanced product-specific requirements not only ensures regulatory adherence but also positions your Amazon business for seamless integration into the diverse and competitive European market.
Packaging:
Packaging regulations vary by EU country. Adhere to laws governing packaging materials, waste, and size. Failing to comply can lead to legal issues, jeopardising your expansion plans.
This brings us to a critical juncture where meticulous attention to legal, tax, and product safety compliance sets the foundation for a successful entry into the European market.
#3: Explore the EU Freight Forwarding & Fulfilment Solutions
Freight Forwarding to EU:
Navigating freight forwarding and fulfilment is a substantial challenge. If importing products from a third country, choose between shipping directly to Europe or routing through the U.S. Consider Amazon FBA listing service.
FBA vs. FBM:
The choice between FBA and Fulfilment by Merchant (FBM) is pivotal. Starting with FBA in Europe is advisable, given Amazon’s robust support in overcoming logistical challenges.
European Fulfilment Network (EFN):
EFN allows you to store products in one of Amazon’s fulfilment centres, facilitating distribution across Europe. Products fulfilled within EFN are eligible for Prime.
Multi-Country-Inventory (MCI):
MCI lets you distribute inventory across multiple European countries, minimising delivery times and transportation costs. Products stored in local fulfilment centres are eligible for Prime in the respective country.
Pan-European FBA:
Pan-European FBA operates similarly to EFN, distributing products throughout the EU based on expected demand. Products under this program are eligible for Prime across all EU marketplaces.
Understanding the nuances of these fulfilment options is crucial for efficient and cost-effective logistics in the European market.
#4: Localization of Your Listings & Account Management Solutions for EU Marketplaces
Listing Translation Services:
Translating listings into local languages is a necessity. Utilise professional listing translation services to ensure accurate and appealing product descriptions. Recognize the emotional aspects of international buying behaviour and tailor your texts accordingly.
PPC Management and SEO Optimization:
Effective marketing strategies require fluency in the local language. Employ native speakers for the Amazon PPC services campaign and SEO optimization. Carefully select keywords and adapt marketing approaches to resonate with diverse European customers.
Selling on Amazon Europe is indeed a game-changer, offering access to a new clientele and substantial revenue growth. However, the international landscape can be overwhelming initially. Seeking advice from expansion experts and conducting thorough research is imperative. With the right approach and support, venturing into Amazon Europe presents a golden opportunity for business expansion.
Not many consider expanding internationally when growing their brand, but they should. It’s a highly effective means to boost sales, diversify income, and build a globally recognized brand. Amazon provides extensive resources to facilitate international expansion, but seeking professional help in legal, tax, and local market knowledge is essential for maximising success in the new market. Selling on Amazon Europe may seem complex initially, but with meticulous planning and the right support, it could be the next significant step for your Amazon business.
Partner with eStore Factory, your trusted Amazon management agency, for international e-commerce growth. Our team of Amazon experts specialises in guiding businesses through the intricacies of European expansion, from legal and tax compliance to localization strategies and marketplace optimization. By choosing eStore Factory, you’re not just gaining a service; you’re unlocking a pathway to success in the global e-commerce landscape. Let us handle the nuances while you focus on what you do best – growing your business. Take the next step in your Amazon journey with confidence—choose eStore Factory for a tailored approach to conquering the European market.
