Amazon has launched retail operations in many international markets over the years. As of today, Amazon has 16 marketplaces worldwide, 14 of which allow third-party sellers to list and sell products. The online retail giant also has a digital retail presence in Turkey, Australia, Mexico, and Brazil. It doesn’t seem Amazon plans to stop any time soon. They have officially offered the full Amazon experience and launched a fully operational platform in the Netherlands early this year.
If you are ready to expand and reach more shoppers, the Amazon Global Selling program may be a great way to grow your business. Selling products in international markets with this program offers a few advantages:
- Wide Customer Base
Your products will immediately reach millions of additional customers as Amazon’s 16 marketplaces cover 180-plus countries. While international shoppers may not be familiar with your brand, they are familiar with the Amazon name. Selling in Amazon international marketplaces increases brand engagement and conversions much faster than building the brand from the ground up.
- Increased Sales
By offering your products in various marketplaces, your revenue could diversify. Most of the countries share similar holidays, including Mother’s Day, Valentine’s Day, and Christmas. On the other hand, Father’s Day in Japan is on June 21 and their back-to-school season starts April 1. Selling ties or stationery with the Amazon Global Selling program can help you take advantage of different holiday seasons and peak sales periods throughout the year.
- Another example would be Amazon’s response to overwhelming demand during the COVID-19 pandemic. Amazon temporarily suspended shipments of “non-essential” products to its FBA (Fulfillment by Amazon) warehouses in the U.S. and the E.U. Meanwhile, the other nine international marketplaces were not affected by the announcement, which means the Amazon Global Selling program could protect sellers from sales fluctuations on Amazon.com.
- Compared with the U.S. marketplaces, Amazon’s international marketplaces often have fewer sellers in the categories, meaning more opportunity for you!
- By utilizing FBA for selling products in international marketplaces, Amazon will fulfill orders on your behalf, handle returns, and provide customer service while using the local language. With the FBA network, the seller could easily fulfill orders across all five European marketplaces when sending inventory to a fulfillment center in the U.K.
In terms of operation, FBA in the U.S. is very similar to FBA in Europe. If you are experienced with Seller Central, it will not take much to adjust to other international seller accounts.
The same goes for Amazon Deals and Amazon Marketing Services (AMS); the interfaces are similar across all international Seller Central sites. Since Amazon Marketing is available in 13 marketplaces with similar products and campaign placements, this makes it easier to grow your business and deliver a consistent brand message.
Overall, Amazon global revenue has grown 20% YoY in the each of the last five years. The growth rate is expected to remain the same in the next five years, according to a study from Kantar. This estimate did not take COVID-19 effects into consideration, but the outlook of the Amazon global market remains optimistic. One of the main reasons is that shopping behaviors are changing. Because COVID-19 has accelerated the shift to shopping online, we assume that Amazon will continue to grow post-COVID-19.
To learn more about Velocity Commerce Group and how we can help you identify the opportunities and product assortments, on Amazon, please reach out to us on LinkedIn, or on our website. Let’s Talk!