Amazon Global Selling – The Case For International Expansion

Amazon Global Selling – The Case For International Expansion

People are nervous to sell globally on Amazon.  I get that.  You have tax regulations, language barriers, culture differences, same products that sell well in the U.S.A may not sell as well in that global market, and completely different markets that you’re unaccustomed to.  But in the world of business there are four way to expand (organic growth, product variation, new product markets, and globally (locational) expansion).  Many companies will focus on the first 3 because they know once they get that right, the locational expansion becomes an easier process.  But Amazon makes it possible to go global instead.

amazon global selling
How Amazon Makes Global Selling So Simple

Unlike global expansion of a real brick and mortar business, Amazon provides many advantages for people who want to sell overseas:

  • Amazon Seller Account the same across markets
  • Same Research Process (BSR & Top Selling Products)
  • Amazon Seller Fees Spelled Out
  • Amazon Revenue Calculator The Same Across Markets
  • Minimal startup costs
  • Startup costs the same across markets

If you are an existing seller in the United States and you want to sell in Canada or Mexico, all you have to do is become brand registered on Amazon in those markets, create a new listing, possibly translate your listing, and then send/replenish inventory for the said fulfillment center in that market.  That is all you need to do.

Biggest Inhibitors To Selling Globally

As much as advocates we are to selling globally we understand the inhibitors that people may face.

  • Tax Considerations – You need to pay taxes in those countries which means you must put your business on the map in those countries depending on where your business is located.  If you want ot sell globally on Amazon, you should not let this initial step stop you as this is something you should deal with 3 – 4 months down the road.
  • Shipping Costs In Said Markets – Shipping costs Canada are really expensive so selling products below $15 may not make a lot of sense.  Cross-border shipping in Germany, Italy, Spain, and France are higher than selling in the UK, so that needs to be considered.  This is a consideration but certainly not a show stopper.  Just use the amazon revenue calculator and you’ll know the standard shipping and weight costs in those markets.
  • More To Manage – If you already sell in the US or other markets, it can simply be more to manage.  But in our judgement this is a cop out and not an excuse NOT to expand.
  • Market(s) Smaller than the U.S.A – It is true that all the other markets are atleast 1/4 the size of the U.S.A.  Out of them all the next three largest markets are Japan, UK, and Germany.  But if you are able to find great products, you can still garner up to 50 – 100 sales per day in some of those markets.
amazon expansion
The Case For Global Selling On Amazon

As a global seller, we’ve learned a lot about what works and what doesn’t.  How to translate listings, how to research new products, and how to get approved in specific categories, and how to create the comfort and courage needed to sell in those markets.  Many people think it’s difficult.  And many people think it’s only worth selling in the U.S.  Some believe it is best to create multiple products in the U.S. before selling overseas.  All of these points are valid but we’ve had success in all three.  We have multiple products and we sell overseas and are reaping many rewards for the leap of faith we took.

Credit Amazon to creating a system that can create global ecommerce sellers.  If you want to sell globally obviously selling on Amazon is the best place to start, but if you currently sell on Amazon expansion needs to be part of your planning process and future considerations for growth as an ecommerce store owner.

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