5 min read

Expanding to Amazon EU Marketplaces: How To Get Started (Steps, Tips, and Best Practices)

Written by
Vanessa Hung
Published on
January 25, 2024

Are you looking to tap into new markets and grow your online sales? Amazon's European marketplaces reach millions of customers, offering a golden opportunity for sellers. This article will guide you through expanding your business across the pond, from legal requirements to fulfillment strategies.

Discover how to thrive in Europe with Amazon!

Why Expand to Amazon EU Marketplaces?

The Amazon EU marketplaces offer a large and growing market with higher revenue potential, less competition, and the opportunity to reach new customers.

Large and growing market

Ecommerce in Europe is on the rise, and Amazon's European marketplaces are at the forefront of this expansion. With small and medium businesses selling over 1.8 billion products in 2020 alone, tapping into Amazon EU provides access to a wide customer base eager for diverse products.

The growth trend isn't slowing down—each day brings new consumers online, making it an ever-expanding platform for ambitious sellers.

Engaging with Amazon's established infrastructure helps you leverage their well-oiled machine to serve millions across Europe. Whether through Germany’s robust economy or Spain’s growing ecommerce space, sellers can benefit from crossborder selling without having to navigate complex logistics independently.

As Amazon has streamlined its services across international lines, your business can scale up effectively within these bustling European online marketplaces.

Higher revenue potential

Amazon EU marketplaces offer higher revenue potential for sellers due to the large and growing consumer base in Europe. With around 185,000 businesses on Amazon Europe selling over 1.8 billion products in 2020, there is significant room for expansion and increased sales.

The European Fulfillment Network (EFN) program allows sellers to store inventory in one marketplace within Amazon EU, providing an opportunity for more streamlined operations and reaching a wider customer base across multiple countries.

SMBs can take advantage of less competition on certain Amazon EU marketplaces compared to their US counterparts, opening up new possibilities for sales growth. Additionally, by leveraging fulfillment options like Fulfillment by Amazon (FBA), sellers can optimize shipping efficiency while tapping into the diverse European marketplace trends.

Less competition

With less competition in some Amazon EU marketplaces, there is a chance to stand out and gain visibility for your products. The lower number of sellers can make it easier to target specific niches or product categories that may be saturated in the U.S. market.

This presents an opportunity for sellers to establish themselves as leaders in their niche, potentially leading to higher sales and brand recognition. Leveraging this advantage alongside effective marketing strategies could help you gain a competitive edge in these markets.

It's important to note that while there may be less competition in certain Amazon EU marketplaces compared to the US, understanding the unique preferences and purchasing behaviors of European consumers is crucial for success.

Opportunity to reach new customers

Expanding to Amazon EU marketplaces offers an enticing opportunity to tap into a vast and diverse customer base. With millions of active users across Europe, sellers can access new customers who may not be reached through their current sales channels.

This expansion presents the chance to engage with European consumer behavior, opening doors for increased sales and business growth.

Selling on Amazon EU also allows access to fulfillment and shipping with FBA, enabling sellers to efficiently reach customers in various countries within the region. Additionally, utilizing a global review system provides an opportunity for businesses to establish credibility and attract new customers based on positive feedback from European buyers.

Use of global review system

Utilize the global review system to build trust and credibility with European customers. Encourage buyers to leave positive feedback, as reviews can significantly impact sales. Take advantage of Amazon's unified review system, allowing sellers to gather feedback from all marketplaces under one account, strengthening your reputation across international platforms.

By incorporating the global review system into your selling strategy, you can leverage positive feedback to boost visibility and attract more customers. As a result, harnessing this tool effectively will help you establish a strong presence in the competitive Amazon EU marketplaces and enhance your overall success.

Steps to Successfully Sell on Amazon EU

Pick your preferred marketplace, understand and comply with legal obligations, analyze fulfillment options, apply for necessary VAT and EORI numbers, and consider currency and sales tax for the EU.

Start by picking your preferred marketplace

Choose your preferred Amazon EU marketplace as the first step in expanding your sales. Consider factors such as language, customer demographics, and shipping capabilities to select the best fit for your products.

Understand the regulations and cultural nuances of each marketplace to tailor your selling strategy effectively. Whether it's Amazon UK, Germany, France, Italy, Spain or another European country, thorough research will help you make an informed decision that aligns with your business goals.

Consider VAT registration in Europe and fulfillment by Amazon (FBA) options when selecting your preferred marketplace. Evaluate the market size and competition on each platform before making a decision to ensure a successful expansion into the lucrative European market.

Understand and comply with legal obligations

To successfully sell on Amazon EU, sellers must understand and comply with legal obligations. This includes adhering to European customs and import regulations, applying for necessary VAT and EORI numbers, and considering currency and sales tax requirements for the EU.

It's crucial to research and comprehend the cultural and legal differences of each European country within Amazon's marketplace in order to ensure compliance with local laws.

US sellers looking to expand to Amazon EU should also be aware of key issues such as labeling compliance. By understanding these legal obligations, sellers can effectively navigate the complexities of international selling in Europe, ensuring a smooth transition into this lucrative market while avoiding potential penalties or setbacks related to non-compliance with European laws.

Analyze and choose your fulfillment options

Assess your fulfillment options carefully by evaluating the benefits and costs of each method. Consider Fulfillment by Amazon (FBA) for its convenience, as it handles storage, packaging, and shipping.

Alternatively, using a third-party logistics provider can offer flexibility in managing inventory and order fulfillment. Be sure to factor in shipping times, customer service capabilities, and overall costs when making your decision.

Compare the advantages of FBA against fulfilling orders yourself or through another vendor to determine which option aligns best with your business goals. Keep in mind that leveraging FBA provides access to Amazon Prime customers and their two-day shipping benefits while offloading logistical concerns.

Apply for necessary VAT and EORI numbers

When selling on Amazon EU, it's essential to apply for the required VAT and EORI numbers. These numbers are crucial for legally conducting business in the European market. The VAT number is necessary for compliance with European Union tax regulations, while the EORI number is needed for customs clearance when importing and exporting goods within the EU.

Obtaining these numbers will ensure a smooth and legal entry into the EU market, allowing sellers to operate their business efficiently without facing any regulatory issues.

Understanding and obtaining these essential numbers demonstrate a commitment to complying with legal obligations in the EU marketplace. This paves the way for successful expansion and growth opportunities in Amazon's thriving European marketplaces.

Consider currency and sales tax for the EU

When selling on Amazon EU, sellers need to consider currency conversion and sales tax implications. Different countries within the EU may use different currencies, so it's important to be aware of exchange rates and potential currency conversion fees when conducting transactions.

Additionally, sellers must be mindful of EU VAT (value-added tax) requirements when selling to European customers. Understanding and adhering to these tax regulations is crucial for a smooth cross-border selling experience on Amazon EU marketplaces.

By staying informed about currency conversion and sales tax obligations, Amazon sellers can ensure that they are pricing their products competitively while also complying with the legal requirements in each European country.

Tips for Selling on Amazon EU from the USA

Assess the market before expanding, register trademarks in other countries, understand currency and sales tax, and choose the right fulfillment method for EU.

Assess the market before expanding

Before expanding your business to Amazon EU marketplaces, it is crucial to assess the market thoroughly. Understand the local demand, competition, and consumer behavior in each specific marketplace.

Conduct research on popular products and current trends to identify opportunities for your business. Utilize available tools such as Amazon’s Seller Central data and third-party research resources to gain insights into customer preferences and purchasing patterns in the European markets.

Furthermore, consider differences in cultural norms and preferences across various European countries. Tailor your product offerings and marketing strategies accordingly to resonate with local customers effectively.

Register trademarks in other countries

To expand your business to Amazon EU marketplaces, it's crucial to protect your brand by registering trademarks in the countries you plan to sell in. Registering trademarks can help prevent others from using your brand name or logo without permission, safeguarding your products and reputation.

By securing trademarks in multiple countries within the EU, you establish legal protection for your brand across different markets, ensuring that you have exclusive rights to use it and mitigating the risk of infringement.

Safeguarding your intellectual property through trademark registration not only enhances brand credibility but also offers legal recourse should infringement issues arise. This step is vital for building a strong foundation for international expansion on Amazon EU marketplaces.

Understand currency and sales tax

Understanding currency and sales tax is crucial when expanding to Amazon EU marketplaces. Sellers need to be aware of the Euro as the primary currency across most European countries, so it's important to factor in exchange rates when pricing products.

Additionally, each country within the EU has its own sales tax regulations that sellers must adhere to VAT (value-added tax) rates vary by country and need to be included in product prices.

Sellers should also consider using a currency conversion service and consult with a tax professional familiar with international eCommerce to ensure compliance and avoid any unforeseen financial complications.

Conclusion: How to Successfully Expand to Amazon EU Marketplaces

Research and plan before expanding to Amazon EU marketplaces, utilize available resources, and work with experts for a smoother transition.

Importance of research and planning

Research and planning are crucial for Amazon sellers looking to expand into the EU market. By conducting thorough research, sellers can gain valuable insights into consumer behavior, market trends, and competition within each European marketplace.

Planning ahead allows sellers to understand legal obligations, tax requirements, and fulfillment options specific to each country in the EU. With careful research and strategic planning, sellers can effectively tailor their business approach to meet the unique demands of the European market, ultimately increasing their chances of success.

Utilizing available resources can significantly aid in comprehensive research and detailed planning for expansion into Amazon EU marketplaces. Sellers should leverage tools such as market analytics, expert guidance from professionals familiar with the European landscape, and established networks of local partners or distributors.

Working with experts for a smoother transition.

Consider partnering with international trade consultants or legal advisors who specialize in European markets. Seek out experts who can offer guidance on compliance, tax regulations, and VAT requirements specific to each Amazon EU marketplace.

Engage with professionals experienced in cross-border e-commerce logistics and fulfillment to streamline the process of shipping products to European customers. Collaborating with industry specialists will help navigate the complexities of expanding your business into Amazon EU marketplaces and ensure a smoother transition while leveraging their knowledge for a successful entry into these lucrative markets.

FAQs

1. What are Amazon EU marketplaces?

Amazon EU marketplaces are Amazon's online shopping platforms available in different European countries, allowing sellers to offer products to a wide European audience.

2. How can I sell on Amazon EU marketplaces?

To sell on Amazon's European sites, you need an Amazon seller account and choose whether to handle shipping yourself or use Fulfillment by Amazon (FBA) for delivery.

3. What is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon (FBA) is a service where you send your products to an Amazon fulfillment center, and they take care of storage, packing and shipping orders for you across Europe.

4. Can I use my products on other websites if I sell with FBA in Europe?

Yes! Multichannel selling in Europe allows you to use FBA while also offering your products through other online channels outside of the various specific country-based Amazons.

Read More