From Amazon US to Amazon EU: An opportunity to expand your business and diversify your revenue
If you are thinking of expanding your business and selling worldwide, you should definitely not ignore the European markets. The Amazon Europe Marketplace is the second largest marketplace outside of the United States. Take into consideration that Germany and UK make up 17% of Amazon’s foreign market.
With an Amazon Europe Marketplaces account, you can conveniently switch in Seller Central Europe between Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es seller tools to list products and manage orders in multiple marketplaces.
As an online seller, you’re seeking to explore new markets that will boost business and allow you to reach new potential customers. Launching a product in Amazon EU is becoming common for those selling on Amazon as a non-US resident, so if this sounds familiar to you, take a look at what follows:
Countries that make up Amazon Europe:
One of the main advantages is the level of competition on the European market, which is considerably lower compared to the US market. This means that the cost for launching a product is lower than in the US market.
You should feel confident and secure if you decide to establish a base in Amazon Europe because the company is pretty committed to that area.
Amazon has already invested €15 billion in the European Union since 2010, and doesn’t seem to slow down. It is worth mentioning that over 93 million users currently shop on the EU marketplace, making it a great area to start selling your products. Amazon delivers to over 50 countries in Europe and has made its Fulfillment by Amazon (FBA) delivery eligible in 26 countries. In aggregate, Citi estimates Amazon has grown its global fulfillment property footprint by over six times since 2010.
EU Market: The perfect place to expand
It is generally accepted that the US marketplace is full of numerous common goods and services. But these goods and services are not always available in the European market.
So, if you have found out that your sales are falling, take advantage of this opportunity and try this location instead.
What you need is a solid strategy that will bring fresh new customers. Ready to expand to Amazon Europe?
Below you will find some main points you need to have in mind before starting your business:
How VAT works in Europe
If you sell goods in any EU country, it's likely that you will be required to register for Value Added Tax (VAT). VAT is a tax in Europe on consumer spending (Value Added Tax). The VAT is a tax to keep things fair for home producers. It’s a consumption tax charged to the seller. The key factors that determine if you have an obligation to register for VAT are: your business’ country of establishment, the location of your inventory, and your level of sales.
Each country has its own VAT rate, and you’ll need to register for one in every country that holds inventory. That’s why selling in 5 countries can be pretty complicated. With distance selling, you need to sign up for VAT if you go over the threshold; or expect to go over it within 30 days.
As an option, you can create a business inside the UK. Then you’ll have a threshold of up to 80k pounds to work within.
VAT can be a complicated aspect to your business. Every country is slightly different; A good advice is to practice your due diligence before you set up a business in the country you select.
What products would sell on Amazon Europe?
These online tools can also provide you with information about your competitors. With a convenient Chrome Extension, JungleScout takes all the guesswork out of choosing products.
Save yourself several research hours that you’d had to spend in order to find a profitable product to sell.
The power of language
They say that a picture is worth a thousand words but when selling on Amazon, a good photo is not enough! Consider hiring a translator for your product listings. Google translate can be a helpful tool but only for basic communication, because its mistakes can be critical. Although the words may seem similar to the computer, it can cause awkward and embarrassing misunderstandings.
Beware that your potential customers are suspicious of product listings that are visibly written by a non-native speaker. They will hesitate buying your products if they visit a bad product page.
If you aren’t a native speaker of the country you’re selling, choose someone who has prior experience in translating Amazon listings and some expertise on how to SEO your listings for the keywords your customers will be searching for.
While you are making your keyword research, you can use some great tools to help you. These include Keyword Inspector, Merchant Words and AMZStellar. These tools work by allowing you to quickly assess how much traffic specific keywords have.
It will be much easier for your customers to find your products if you manage to optimize your product listings. A native speaker can create a product listing that will blend the right keywords invisibly into the descriptions.
How giveaways can boost your product
If you want your product to be competitive enough, you need organic reviews to start.
You should remember that even with a 100% discount the EU Amazon marketplace still allows your customers to leave a review. Unlike in other countries, you can create “Money off” codes vs. the percentage off codes the US allows.
Your search engine stats will get a boost by reviews and your product will rise in rankings – keyword and bestseller. As you may understand, it’s important to capture whole-hearted customer reviews anyway possible.
Giveaways can stimulate interest in your products, and get them in the hands of reviewers, those who will do the most to promote your business. Reviews are essential because they will help others decide to buy your product. Do not underestimate the power of an original review, as customers are good at understanding who genuinely loves a product, and who fakes it.
Original, truly happy reviews from real customers will result in more future sales than other methods.
Moreover, a giveaway is an effective way to gain a boost from social media. Customers who are excited about a free product are likely to share the contest with other people in social media. Help people to get familiar with your product and this will improve your branding and get more customers to purchase your products.
Launch a PPC campaign
You should start a PPC campaign once your product has gotten a few sales with reviews and perhaps a small customer base. If you’ve ever launched a business based in the US, you may already know the process. If not, it is not that difficult.
First of all, you need to be sure that your keyword research is done by a native speaker, especially one who is deeply familiar with the keyword research tools we mentioned before.
You will also need a catchy ad that focuses on headline searches. Try different variations and styles, so you can change them up. You can use some programs to keep track of your best ads and make your PPC campaign the most effective you can.
A PPC campaign is indispensable if you want to get the word out about your product. Even with positive reviews and customers talking about you, sales suffer without PPC. A PPC campaign aims to the people who are interested in your product. It helps them notice your product first, before getting caught up by competitor’s product.
To sum up, PPC is the best way to drive new customers to your products and increase your sales.
The importance of customer service
The moment you start having sales is the most accurate time to begin providing the best possible customer service for your clients. You will need again native speakers for the country of your choice. The better their understanding of customer service, the better customers will react.
Bad reviews can paralyze your business. It’s essential that you keep your customers satisfied by replying to your buyer messages. Remove negative seller feedback, and convert positive feedback into reviews.
Ideally, you wouldn’t want anything to go wrong; but mistakes happen. A wrong item gets shipped, a manufacturer makes an error, or a product arrives damaged. The way you handle these possible situations in your customer’s experience can affect tremendously the outcome of your business. If your customers get support in any issue concerning them, such as getting their item replaced or questions answered, it is possible that they will recommend you.
Be careful with general questions and compliments, too, as they can turn into positive reviews, and general questions lead to more sales when you address concerns.
SellerMail™ is an email follow up service provided by ManageByStats. It is an advanced automatic email tool for Amazon Sellers. When a sale occurs on Amazon, SellerMail™ can automatically schedule and send out a sequence of emails to the buyer, while giving you full control of what is sent and when it is sent, with customized email sequences for Brands, product lines or individual products.
Satisfied customers are happy customers and happy customers will probably spread the word about your business. On the contrary, unhappy and unsatisfied customers are even faster and their negative reviews will affect your business. Try to keep everyone happy and satisfied if you want a long-lasting business strategy.
How an EU Seller Can Sell Into Amazon US
If you are an non-US resident and you want to try selling on Amazon US it is pretty easy. It is not necessary to start in your home country’s market to be able to take advantage of the US marketplace.
Note down that you don’t need an importing license to sell in the US. Many sellers start directly in the US market, and then expand to other countries as their business gains traction.
If you start selling in the US you will take advantage of the lion’s share of sales that Amazon generates. At the moment, the majority of Amazon sales come from the North American continent, including the US, Canada, and Mexico. Followed by Amazon Europe with Germany, and the UK, and then Japan. These places make up 95% of all sales on Amazon, a huge share of the market.
You can sell on Amazon from anywhere
The US can seem so far away and the idea of starting a business or expanding there may discourage you.
But if you already have a business in the EU, you can start selling in Amazon US right away. This would be very wise if you feel like your sales are dropping in your home territory.
New customers are waiting for you in the US market. You’ll have access to all the same resources you are used to in the European marketplace. There are even fulfillment prep centers to make sure that the products you’re shipping meet all of Amazon’s requirements.
Need a helping hand? Our pioneer services can support you during the whole process!
If you think you need a little support in getting your business going, we can help make your transition to Amazon Europe a smooth one.
SatiSupp experts can help photograph your products for a professional looking image that sells, research keywords customers use to buy your product, launch your products with a product giveaway, and help with the VAT registration as well.
Native speakers available in every language, can be your voice for customer service, copywriting, and optimization services.
We are here to make selling on the EU Marketplace easy for you, so if you’re not sure about the process or don’t speak the language, get in touch with us today. Sell your products today on Amazon’s most beneficial marketplace.
To receive weekly Amazon Seller News and Tips updates sign up now