How to Expand to Amazon EU with Amazon Global Selling

December 15, 2021 in Ecommerce Tips

Written by Erika Sharma, Content Creator at SellerMetrics.

Introduction

In 2021, Amazon now has nearly 20 marketplaces to choose from. It’s no surprise that many Amazon Sellers choose to expand the pie! If you’ve got a big store and you’re still selling on Amazon US, why not take a leap over the pond? 

With the right tools and resources at your disposal, selling in Amazon EU is easy. Keep reading for a quick guide to rapid expansion… 

Amazon’s Best Marketplaces

So where are all of Amazon’s marketplaces? Right now, Amazon groups their marketplaces into 4 regions: 

  • Americas –  United States, Canada, Mexico, Brazil
  • Europe –  UK, Germany, France, Italy, Spain, Netherlands, Sweden, Poland 
  • Middle East – United Arab Emirates, Saudi Arabia, Turkey
  • Asia-Pacific – Japan, Australia, Singapore, India

Most Amazon Sellers tend to expand further within the same region. For example, Amazon US sellers tend to expand to Canada or Mexico.  This is actually called a unified account, but an unified account only goes so far. Compared to the 3.1 billion that frequent Amazon.com US,  Amazon.ca and .mx have barely 300 million visitors… 

For a proper expansion to your business, you should turn your eyes towards Amazon Europe.

Why Sell on Amazon EU?  

The first reason is a no-brainer; Amazon EU sellers can sell in 8 countries with one unified account! After Amazon.com,  Amazon.eu is Amazon’s next biggest selling region, and it’s still growing. In 2020, two new marketplaces – Poland and Sweden were launched, and led to 17% further growth in Amazon EU’s global market share. 

With about 500 million in traffic it’s still small compared to Amazon US, but it’s still a far cry bigger than the rest of the Amazon marketplaces. Most importantly though,  it’s very easy to expand to Amazon EU!

One way to do this is through AGS, short for Amazon Global Selling.

Using AGS to sell on Amazon EU

Due to its vast international network, Amazon provides a program called Amazon Global Selling or AGS for short. Sellers who sign up for AGS can list and sell their products all over the world. It’s very straightforward, all you need to do is go to the AGS webpage and click “Expand internationally

This will direct you to a very intuitive and simple dashboard that tells you the requirements for every single region. 

The best part of being in the AGS program is that you can unify all your accounts into one single Global Account. This means if you sell in the Americas, Europe, and even the Asia Pacific you can unify all of those to be under one account. 

This is by far the fastest way to expand to Amazon EU that we know of!

More on Selling in Amazon EU

Once you’ve followed all the steps on the dashboard we mentioned earlier, you can start selling on Amazon EU. Before you jump in though, there’s some important aspects of selling on Amazon EU that sellers should be aware of:

VAT Tax Regulations

Amazon EU has some tax regulations that US sellers are not used to. You have to register for the VAT tax in Europe because it is a regulatory requirement. Once you do it though, you can sell freely across every Amazon EU marketplace.  You will also have to complete two seller identification checks, one is just a basic KYC and the other is when you surpass €15000 in sales. 

VAT tax regulations can be difficult to navigate, and a lot of sellers let it deter them from expanding to Amazon EU markets. Don’t let it stop you! SimplyVAT.com can fully handle your tax registration and help you with any issues that may arise. 

For more information about the current EU VAT rules, download SimplyVAT.com’s free eBook that unpacks the regulations and it’s implications for international ecommerce businesses.

EU VAT registration shouldn’t be what stands between you and a seven figure business that encompasses two major selling regions!

Inventory & Fulfilment

When it comes to managing inventory and fulfilling orders in the EU, sellers actually have 3 different options: 

Pan-European FBA –  Your products are stored in fulfilment centres all over Europe and you pay standard local FBA fees for each marketplace 

European Fulfilment Network – Your products are stored in the UK inventory pool, to fulfil orders in other European markets you must pay a cross-border fee 

Multi-Country Inventory – You can send your inventory to fulfillment centers in multiple European countries for faster delivery locally (but you may be charged additional VAT tax).

Based on those three options, Amazon Sellers can decide which works best for them. Pan-European FBA is the most cost-effective option, but the other options may also work well depending on your business.

Managing Multiple Marketplaces

So you’ve decided to expand to Amazon EU. Congrats!  The road is sure to be fulfilling, but if you’re an Amazon Seller you already know it won’t be easy. 

Tracking Sales 

You’ll need to track your sales across both Amazon US and also Amazon EU’s many marketplaces. Unfortunately, Amazon doesn’t really provide a unified dashboard for this. You can only see sales, profits and reports when you click into a particular region, and again, ONLY for that region. 

For this reason, we recommend investing in Profit Tracking Tools that consolidate all your marketplace data in one place.

Amazon PPC 

Another task that may begin to seem insurmountable is managing Amazon Advertising for multiple marketplaces!

The elephant in the room is obvious… you can’t just copy paste your ad campaigns across regions! Not only do your keywords need to be translated into a totally new language for some EU marketplaces, but the audience behaviour and keyword search volumes are very different. 

Managing Amazon PPC for one marketplace is hard enough, adding more to the mix means an insane increase in man-hours!  

That’s why when it comes to managing Amazon PPC ad campaigns for multiple marketplaces, we highly recommend using Amazon PPC Software. SellerMetrics is unique in that you can see all your marketplaces on one dashboard, saving you tons of time!

Conclusion

All in all, expanding to overseas Amazon marketplaces may seem like a daunting task but if done successfully, you can have a six or seven figure business. The key to managing an expanding business is having the right tools at your disposal. We hope you find this article helpful for your future endeavours on Amazon!

About the Author

I am Erika Sharma, a Content Creator at SellerMetrics. Our mission is to help Amazon Sellers navigate Amazon PPC, by offering them the knowledge and tools to kickstart their Amazon PPC optimization process without hassle.

SellerMetrics is a next-generation Amazon PPC Software. Our software supports both Automated and Bulk Manual bidding workflows that allow for complex campaign strategies to be deployed with ease.

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