Covid confirmed what we already knew. It’s a global world. What happens in one place can affect the other. If a great product is being sold in the US, then someone in the UK also wants it.
Shipping internationally can be successful and heartbreaking. Decide if it’s right for you.
Selling Globally with Amazon:
With Amazon Global Selling, you will have access to 16 marketplaces. Additionally, the program will help you with international taxes, management, fulfillment, and shipping.
Here is a glimpse of the Amazon Global opportunity:
Our Tip: Determine if your brand is ready to go global. Consider if there is enough demand outside your current success territory. Do you already have international customers?
As you expand internationally, you will encounter risks and opportunities. Keep your expectations aligned to minimize the risks and maximize the benefits.
So, if Amazon appears to make this seamless, what really is the challenge in going global?
While most of what you’ve learned from Amazon.com will apply to international marketplaces, Amazon Global Selling tools provide general assistance. Be aware that there are differences in the marketplaces.
- Country and marketplace restrictions. For Example: Health products in Canada are limited to a 90-day supply (for the consumer), and in some countries, Vitamin E is not an over-the-counter product.
- VAT — figuring out each country’s value added tax. It’s a 3 letter word that’s overwhelming enough to send most e‑commerce sellers scurrying back to their local offices. We strongly recommend working with a professional tax adviser so you’re not hit with any surprises of non-compliance.
- Sales-channel-verified shipper – this may be different for each country.
- Product labels. For example in the UK, you’d need a UK address on the label, and in Canada some products may require French instructions in addition to English.
- Local fulfillment centers – so customers can return products.
- Local language fluency. This refers to both, customer support and product listing in the required language.
- Brand Registry. Each country has its own requirements, so you need to apply separately.
Our Tip: Knowing the marketplace differences for the product you are considering will help you prepare for success. Do you need to adjust the price? Do you need to modify the packaging to accommodate the new product size? Do you need additional permission to sell in that category?
More important than the technical differences among the marketplaces, is the social differences among the shoppers.
Knowing customer buying habits and the market demand in each country will help you determine where to expand first. Every market, audience, culture, and vernacular is unique.
Do a competition versus opportunity analysis for each market.
1- Is your brand recognized in a specific market?
2- What is the GDP – the market value of all finished goods – of that market?
3- Does the target market share your culture?
4- Would you require additional approval to sell in that market?
5- What is the buying traffic like in that market? (see above chart)
Our Tip: If you choose a market similar to the US, such as Canada or the UK, you won’t need to translate material or hire foreign language help. And your messaging will likely resonate with buyers in the new market.
What do I gain by going global?
Profit. Plain and simple.
Consider this:
- Canada is around 5-10% of Amazon.com sales volume.
- The UK is approximately 10% of Amazon.com sales volume.
- The EU (France, Italy, Germany, Netherlands and Spain combined) is also around 10% of Amazon.com sales volume.
- Australia is approximately 1% of Amazon.com sales volume.
While these numbers are all estimates, it gives you an idea of what’s available to you. Additionally, you benefit from different countries’ peak seasons and you reduce sales slumps by diversifying your sales.
And, greater publicity for a stronger brand presence. You can connect to over 150 million Prime members and over 300 million active accounts through Amazon. That’s a huge reach.
Conclusion:
Going global requires a long-term commitment and a thought-out strategy. You can leverage Amazon’s marketplaces, to launch your product internationally, and to generate demand, but it will still require a lot of effort and research on your part. Bottom line is good news. Going global — when you’re ready for it — will help you sell more.
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