Although the majority of transactions taking place on Amazon are U.S.-based, with approximately 68% of Amazon's sales from North America, international markets, particularly Europe and Japan, are experiencing faster growth.
Amazon is investing in overseas expansion, prompting many sellers to explore whether they too should list products for an international audience. Germany, the U.K., France, and Japan all represent appealing opportunities, but they come with regulatory hurdles, tax complexities, and distribution challenges. Here’s what you need to know about selling globally on Amazon.
Decide where you want to sell
You will use the Amazon Global Selling program to list and sell your products internationally. Through this program, you can access customers in the Americas, Asia-Pacific, the Middle East, and Europe through Amazon’s 21 stores (the majority of which are in Europe).
To determine the best markets for your product, start by researching market demand. Amazon offers a resource called Marketplace Product Guidance to help you figure out where you can expand based on forecasted demand, as well as insights into customer preferences and existing competition. Couple this analysis with some of your own research using import statistics, trade data, and resources like the U.S. International Trade Administration’s Market Intelligence portal.
Set up your accounts
Once you’ve chosen your international markets, set up your Amazon account properly.
“To sell in the US and other countries, you’ll need a Professional North America and Brazil unified account, which you can use to sell in the US, plus Canada, Mexico, and Brazil. If you want to sell in Europe, the Asia-Pacific, or the Middle East and North Africa, you’ll also need additional regional or country-specific accounts,” said Amazon.
Merchants who already have Amazon accounts can simply use their existing North America and Brazil accounts to expand to other North American countries or create regional/country-specific accounts for destinations outside of North America.
[Read more: A Step-by-Step Guide to Building an Amazon Store]
Amazon offers a resource called Marketplace Product Guidance to help you figure out where you can expand based on forecasted demand, as well as insights into customer preferences and existing competition.
Complete the registration requirements
Each market has specific registration requirements you have to complete before you can sell your products. For example, in the European Union (EU), you must provide a valid credit card, phone number, and value-added tax (VAT) number. However, India is open to international sellers. You can find all the requirements for registering on this page.
Choose the products you want to sell
Next, choose the products you want to offer and make sure they’re eligible to be listed on your Amazon store. “While some of our categories are open to all sellers, some require a Professional selling plan, some require approval from Amazon, and some can’t be sold by third-party sellers,” the platform states.
It’s not just that the platform will block some product listings either. There are laws and product standards in each country that dictate whether a product will be appropriate for that market. For instance, bed sizes in the EU and the U.K. are different from those in the U.S. As a result, mattresses from a U.S. merchant aren’t likely to sell. Check safety and compliance rules too to make sure you won’t be penalized.
Amazon also requires you to list product descriptions in the local language. You can use their native Build International Listings tool or do the translation yourself.
Publish your listings
The process might seem complicated up to this point. And untangling competing international regulations and requirements can be a hassle. But Amazon simplifies things when it comes to publishing your listings. “In most cases, you’ll list products in our US store first, then cross-list to other global Amazon stores,” stated the platform.
Use Amazon’s Build International Listings tool to cross-list your products in global Amazon stores. Not only does this tool translate product descriptions, but it can also synchronize your prices across stores.
[Read more: How Can My Small Business Sell Its Products on Amazon?]
Ship your orders overseas
Getting your product in the hands of customers can be achieved through two means.
Fulfillment by Amazon (FBA) takes care of picking, packing, shipping, returns, and customer service. Or Fulfilled by Merchant (FBM) connects you with Amazon-vetted providers who offer discounted rates on global shipping.
There are pros and cons for each option. FBA is often more expensive, but it comes with fast, reliable shipping and reduces your workload by handling the complexity of shipping overseas. FBM often leads to higher profit margins by circumventing FBA fees, as well as giving you full control over inventory, packaging, branding, and customer interactions. However, FBM is often slower, which can frustrate overseas customers.
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