As an online seller, you may be overlooking the sizable opportunity of the Amazon Europe Marketplace. Many entrepreneurs don’t realize that with 33% of the world’s GDP combined the United States and Europe have a deep-rooted economic friendship.
By examining the size of the Amazon Europe marketplace and considering the needs of specific European countries, you can discern whether your business is a right fit for taking global.
Before you begin selling in Amazon Europe, it is worth considering what makes it worthwhile.
A staggering 2,700 items were sold every minute in Europe in 2020 according to Amazon’s reports. The United Kingdom and Germany were especially notable as eCommerce giants.
These numbers were likely influenced by the pandemic with many individuals shopping online during lockdowns and quarantines. However, the impressive success of eCommerce in Europe is likely to carry on in a post COVID-19 climate.
The Amazon Europe marketplace is a compelling opportunity for you to sell to a significant customer base and create diverse revenue streams.
You will not be taken aback to find out that Amazon is the largest eCommerce platform supplying Europe’s customer bases.
The Amazon Europe marketplace was first launched back in 1998, starting with the UK and Germany. A plethora of European countries followed in the next several years including France, Italy, the Netherlands, and Spain. More recently, Turkey, Sweden, and Poland also were added to the roster.
It is worth noting that when you join the Amazon Europe marketplace, you do not gain access to just these countries, but — through the EU and other trade agreements — 28 additional markets as well.
Keeping your eye on local regulations is crucial as you explore Amazon Europe. For example, in the post-Brexit climate, there are new standards to be met when operating a business in the UK and Europe.
Meanwhile, you will find a variety of taxation requirements and product regulations depending on the European country you are selling in. Although this might seem intimidating, taking the time to ensure your business is up to snuff can be well worth it to gain access to Amazon Europe marketplace’s customers.
Language diversity is another stumbling block for newcomers to the European marketplace. Your product descriptions must appear in the local language of the country you are selling in. Some sellers may seek out professional translation services to ensure that their copy is sharp no matter the location.
One look at some basic numbers begins to reveal the colossal size of the Amazon Europe marketplace.
With 1,300 warehouses, 31 fulfillment centers, and about 50,000 permanent employees throughout Europe, the European marketplace is a force to be reckoned with. A company press release estimated a total of more than 1.8 billion products sold during 2020, particularly in the categories of apparel, toys, beauty, home, and health and personal care.
According to a 2020 Amazon Europe SMB Impact report, European selling partners made up the majority of sales on Amazon with more than half of everything sold.
As the numbers make clear, the Amazon Europe marketplace is immense. This sizable opportunity need not be only for European sellers, but also those looking to expand their business from across the Atlantic.
This is where you and your business can become part of the action.
Before you dive into Amazon Europe, you should learn more about the countries included within its boundaries.
Some might expect this regional classification to consist only of countries in Europe, however, it also includes some Middle Eastern and Asian countries such as the United Arab Emirates and India. This is only good news for your business as it means more potential customers.
With a 2020 revenue of $26.5 billion, the United Kingdom is a notable country in the Amazon Europe marketplace. It may be a little less intimidating for US sellers to join thanks to the shared English language. Keep a sharp eye on your product descriptions just the same – the British use slightly different spellings for some words, for example, ‘color’ rather than ‘color’.
Germany shines as the biggest Amazon marketplace in Europe with a 2020 revenue of $29.6 billion. This can make it an especially good target for your expanding business.
Coming third for size in the European marketplace in France bringing in $6.9 billion in revenue in 2020. Neighboring countries such as Belgium will also sometimes use Amazon.fr for online purchases, giving you a broader customer base.
Italy, Spain, and the Netherlands all joined the Amazon marketplace within the last decade. Amazon only began offering the Netherlands products beyond books in 2020, but boasts a high internet user rate among the population.
Sweden, Turkey, Saudi Arabia, the United Arab Emirates, and Poland are all even more recent additions to the Amazon Europe marketplace, but add promising diversity to the customer base.
With its population of one billion, India offers a huge number of potential customers to the Amazon Europe marketplace. Though Amazon was launched in India only in 2017 the 2020 revenue was $1.12 billion.
When expanding to Europe, Amazon suggests the following four steps:
- Choose what products you will sell and which countries you will sell in. Evaluate the taxation costs and the appeal your products will have with the country’s customer base.
- Complete your registration in your countries of choice and list your products, ensuring your descriptions are in the local language.
- Choose a method of shipping and fulfillment, selecting either Amazon FBA (fulfillment by Amazon) or FBM (fulfillment by merchant).
- Maintain and manage your listings, supply good customer service, and scale yourself to suit the sales you see coming in.
Many of these activities will be familiar if you have been running your business in the US market, except for the need to translate descriptions and stay up to date on different national regulations.
You may still have misgivings about selling in the Amazon Europe marketplace. This prudence is valid as expanding into a global marketplace is not the right fit for every business.
Take the time to rigorously research your particular product’s position in each of the regions you wish to sell in. Understanding how your business will fit into the existing market is crucial to your success as a global entrepreneur.
Ensure that you have a firm grasp of any product standards, legal regulations, and tax requirements of your European markets of choice. This will allow you to move forward with peace of mind.
Taking your business into the Amazon Europe Market place is a big step, with big potential rewards.
If you prepare yourself and claim your niche in transatlantic eCommerce, you may discover a new horizon for yourself as an entrepreneur in the Amazon Europe marketplace.
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