12/02/2022

Expanding To Amazon Europe

Amazon is one of the world’s largest online retailers used worldwide. Because of its dominant position as an eCommerce platform, every brand and business that is considering selling their products on Amazon should ensure they have a strong marketing strategy. 

This is especially important for Amazon Europe due to the differences in language, culture and buyer behaviours that are specific to each local market. 

As beneficial as it may sound to expand a brand or business to Amazon Europe, there are things to consider before making the decision, particularly in regard to the goals for expansion. These goals may include making a company or brand available online, expanding the business scope internationally, or even improving a business or brand based on direct customer feedback. 

While keeping in mind these goals for expanding onto Amazon Europe, it is important for a seller to consider which market will become the main marketplace of the brand or business. Each market has different tax and legal requirements and it is important to keep in mind that the time and energy required to achieve local market success will vary. 

Choosing a marketplace 

Amazon Europe consists of eight different markets. Businesses or brands may choose to sell in only one, some, or all of them. If a seller chooses to sell in one market, they might consider choosing a market that is accessible to other countries as well. For example, selling internationally from the UK might prove problematic due to customs requirements; launching an Amazon business in Spain requires consideration of shipping costs and times. Think about which marketplace would be the most effective for a company’s expansion goals. 

Tax and legal requirements in different markets 

Deciding to expand a business or brand to an international market and creating an image of the business in each country may sound good. However, even if sales go well, profit margins may differ due to taxes and varying VAT rates in each country. This causes a few implications on different levels that must be researched. Each country also has its own laws regarding marketing and campaigns, including such issues as: 

  • Consumer rights 
  • Commercial invoice obligations 
  • Intellectual property rights 
  • Marketing and labelling laws 
  • Product compliance 
  • Environment, health and safety requirements 

Noncompliance, even if it is unintended, can lead to unexpected fees and/or fines.  

Understanding time and energy requirements 

As we can see, each market has different languages, cultural values and buyer behaviour. Any decision to expand to Amazon Europe requires time and energy to achieve a local marketing strategy that take these issues into consideration. Beyond translations of marketing content from one language to another, a seller needs to be able to provide support and customer service in the respective languages and cultures. Being able to receive and understand the reviews left by customers in the local market is crucial for success. 

Benefits of expanding 

Amazon Europe is a great way to make a product or brand more accessible to consumers. A successful expansion of a company or brand via Amazon Europe can lead to many benefits, especially as Amazon Europe is still growing and the business gets to grow along with it. Upcoming markets offer a valuable opportunity to introduce a business to a market early on. This allows companies to take the lead in these markets, which gives them a competitive advantage over other brands that choose to target only the established markets. 

 

If you would like to know more, get in touch with us to schedule a consultation about your brands’ marketing strategy on Amazon!