Expand Your Amazon Business into Europe in 2023

This is a guest contribution from our friends at Margin Business, who will explain how and why to expand your Amazon business overseas, and start selling on European marketplaces.

When you expand your business into the European Union, you can add up to 28 additional countries to your marketplace. These markets are home to tens of millions of potential customers. 

The UK and Germany are two of the biggest markets for online retail in Europe. Both countries are popular as hubs from which to start online retail marketplaces, the UK because it is English speaking and Germany because of its central location. Germany makes the perfect distribution hub to countries across the European Union. 

If you choose to store your product in the UK or Germany, you can use Multi-Country Inventory or the European Fulfilment Network to ensure speedy delivery in Germany and the UK. It will also give you a springboard into other countries throughout Europe using the Pan European option. 

Let Amazon Manage Your logistics

Let the experts manage the logistics while you look after your business. Amazon has been in the business of distribution since 1997. They offer the best in customer service and their distribution network is unsurpassed. You can’t do better than that.

Amazon’s fulfillment network is as highly regarded in Europe as it is the in the US. Using Amazon to fulfill your inventory, you can reach potential customers in a wide range of different countries, without needing to think about the logistics side of your business.

Diversify Your Income When You Expand into Other Countries

When you expand your business across Europe you can make the best of holiday peaks and valleys. Enjoy balanced sales across the year and improve your cash flow.

Further reading: 14 ways to increase your sales on Amazon

How do Processes Differ Between the US and Europe?

Across the globe Amazon’s processes are very similar. This is a big help when companies expand as they can work with familiar systems. There are, however, regulatory, cultural, language and tax differences that you must consider before you make a move. Here are a few considerations.

  • If you sell in European countries, you will be a VAT vendor and will have to register as such
  • Product compliance standards differ from country to country. The product you sell must comply
  • All product listings must be translated into the language of the country where you intend to sell. Amazon also requires local language customer service.

There are far fewer sellers on Amazon’s European markets than in the US. The result is fewer competitors. Less competition means that your business can take advantage of higher demand in some of the product categories in Europe.  

Choosing Which Product to Sell

There are three factors that you should consider when launching your product into Europe.

  • Make sure that your product complies with regulations
  • Translate your listing into the local language
  • Use FBA to distribute your product throughout Europe. You get the benefit of Prime along with quick delivery options.

If you’re unsure about what product to sell you could try a test group of products. You may want to try an approach where you bring in a broad range of products with low stocks of each. In this way you can gauge the popularity of your product line without incurring unnecessary costs. 

You can list all your US products on the European markets through Amazon’s Build International Listings. This tool will help you to list your products and update your price parameters. The only issue is that your listings will be automatically translated, however, you should use native translators for that part and avoid losing conversion and sales.

At Margin Business, we create high-converting Amazon EU listings and provide proven optimization services to kickstart your success in the Amazon European Union space.

With nearly a decade of experience on all Amazon marketplaces, our team of translation and optimization experts craft copy that makes sense. We translate your Amazon listings to speak to your target customers in their native language in a crystal clear delivery.

Handling Vat

Many sellers are afraid of the admin involved in VAT, but it is a lot less complicated than expected. 

  • VAT must be paid when the products are imported. This means that you must register for VAT before you start to import. If you store inventory in an EU country, you must have VAT registration
  • The published sales price must include VAT. You claim the input VAT back on the sale of the product.

Failing to comply with VAT regulations can get you into serious trouble so it is in your best interest to hire a tax professional from the start. 

Understand your markets before you move into new countries. You must be VAT registered before you enter the market, so you’ll have to plan ahead.

Check Amazon VAT center here.

How Difficult Is It to Start In Europe?

Starting up anywhere is never easy, but when you sell with Amazon you have the benefit of understanding the processes which are similar across the globe.

When it comes to the individual markets, research will pay off. Your success will depend on how well you understand the markets and how you match your product to the requirements of the market. 

Amazon makes it easier because you can use a single Amazon account for all your European markets. You can use your European Unified Account to create and manage your online stores across the subcontinent. 

Your European seller account will activate for any market in Europe as soon as you register to sell on that market. Amazon fees differ from country to country. You are responsible for ensuring that you comply with tax laws and product compliance and standards in whichever country you trade. 

If you’ve used BIL to add a product to your European marketplaces it will synchronize your listing if your product already exists on those markets. You can use BIL to set the US as your source market and your chosen European markets as target markets.

Give your product a kick start in the European markets. If it doesn’t already exist in your market of choice, it may pay you to hire professionals like Margin Business. We can also do your country specific market research. So, we can help you to customize your products and packaging to the local requirements. We can also provide you with customer support in the local language.

In Conclusion

The advantages of entering the European markets outweigh the disadvantages. As long as you do your homework and understand the environment along with its risks and benefits you can quickly grow your business in a setting that is a lot less competitive than the US online markets.

You can overcome many of the problems associated with importing and selling in the European Union by taking advice from a company that specializes in the pitfalls and opportunities in these markets and knows how to overcome these, particularly when you’re new to it. 

Do not hesitate to contact us.

We will be happy to give you our best
pro tips and advices to expand your Ecommerce business to any European marketplaces

Happy Sales!!

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