Have you been avoiding opportunities on the Amazon Europe marketplaces? So many sellers start off on an English-speaking market – then expand to Canada, the UK, or Australia. Many sellers are intimidated by the prospect of selling on an international market. Although English is the most-spoken language in the world, only 13% of the world’s population actually speak it (and only 5% speak it natively), so there are massive opportunities waiting in marketplaces where people speak other languages. Selling on Amazon Europe might just be the opportunity you’ve been waiting for. With high sales volume in countries like the UK and Germany, Amazon EU provides access to millions of customers and the potential for increased sales.

But before you dive in, there are important considerations and steps you need to take. You’ll need to provide necessary information and documents, translate your listings into the native language, and conduct localized keyword research. Understanding VAT obligations and fulfillment options, like the FBA program, is crucial. Seeking legal advice can also help you navigate the legal requirements of each EU country.

With careful planning and preparation, selling on Amazon Europe can open doors to success and market expansion.

Why Amazon Europe?

If you’re considering selling on Amazon Europe, it’s important to understand the size and scope of the platform. Amazon EU is a vast marketplace, with millions of customers and a growing market worth billions of dollars.

It consists of multiple marketplaces, including the popular ones in the UK and Germany, providing access to a potential customer base of hundreds of millions across 28 EU countries.

How large is Amazon EU?

There are 28 EU countries that buy from Amazon.

Selling on Amazon EU opens up your business to a vast and growing market, giving you access to hundreds of millions of potential customers. With high sales volume in countries like the UK and Germany, Amazon EU offers a lucrative opportunity for expanding your business and increasing your profit.

According to this article, Amazon was worth more than US$1,105 trillion in 2022, with more than 1.4 million Amazon Europe sellers. Furthermore, sales coming out of Europe make up around 24% of Amazon’s global sales.

Better not ignore Amazon Europe; a large slice of the eCom pie lives there.

How many marketplaces are in Amazon EU?

Eight Amazon marketplaces exist in Europe, catering to a population exceeding 500 million. This vast audience positions Europe as a key destination for US sellers aiming to venture into fresh markets. These Amazon platforms are situated in the United Kingdom, Germany, France, Italy, Spain, Netherlands, Sweden, and Poland. Each marketplace offers a unique customer base and presents a great opportunity for expanding your business.

The Amazon app is one of the Top 20 most downloaded shopping apps in the iPhone app store across around 30 countries in Europe, but it has competition from several local players, such as:

• Allegro in Poland
• Asos (UK, Europe, USA, Australia)
• Cdiscount in France
• El corte Ingles in Spain
• Emag in Romania
• Flubit in the UK
• OTTO in Germany
• Real.de, also in Germany
• Zalando, also in Germany

Check out this blog for a complete rundown of other popular eCommerce sites.

Benefits of Selling on Amazon Europe

Selling on Amazon Europe offers you access to a large and growing market with millions of potential customers. With the Fulfillment by Amazon (FBA) program, you can easily handle shipping and fulfillment, allowing you to focus on growing your business.

Additionally, Amazon Europe’s global review system allows you to leverage your existing reputation and build trust with European customers.

Large and growing market

Expanding your business to Amazon Europe opens the door to a vast and thriving market, giving you access to millions of potential customers across multiple countries.

The European market for Amazon is worth billions of dollars and continues to grow. Since 2010, Amazon has invested 142 billion euros in Europe, growth that was boosted by COVID-19 and the need to shop online. According to this report from Reuters, Amazon plans to open new warehouses and fulfillment centers, priming Europe’s marketplaces for even more growth.

Fulfillment and shipping with FBA

With all this infrastructure, shipping to and selling in Amazon Europe marketplaces is easier. There are several different shipping models available for sellers:

1. Fulfillment by Merchant (FBM)
2. Fulfillment by Amazon (FBA)
3. European Fulfillment Network (EFN)
4. Pan European FBA
5. Multi-Country Inventory (MCI)

For beginners, FBA is the most straightforward choice. After navigating the initial challenges, you might contemplate switching to FBM to reduce costs, even though this transition means forgoing Amazon Prime benefits associated with storing items in Amazon’s warehouses.

European Fulfillment Network

Amazon EFN refers to Amazon’s European Fulfillment Network. This service benefits sellers affiliated with Amazon Europe Stores and enrolled in the Fulfillment by Amazon (FBA) program, permitting them to house their inventory in nearby fulfillment centers.

Under the Amazon EFN umbrella, sellers can place their stock in any of Amazon’s European fulfillment hubs. These centers then process and dispatch orders, regardless of which European nation the purchase originates from.

The European Fulfillment Network encompasses the following nations:

• United Kingdom
• France
• Germany
• Italy
• Spain
• Netherlands
• Sweden

For shoppers, Amazon EFN delivers a premier buying experience. It grants them access to a vast array of products with swift delivery, enabling them to pinpoint their desired items promptly.

Moreover, the Enhanced Fulfillment Network showcases a broad range of competitively priced goods, ensuring customers receive top-notch value. Amazon EFN also boasts diverse shipping alternatives, guaranteeing timely deliveries in pristine condition.

Pan European FBA

Within this framework, your company’s logistics process remains largely unchanged. You’ll send your items to one nation, and Amazon takes care of the rest.

By utilizing this program, you bypass international charges and only address local fulfillment expenses.

After dispatching goods to your primary market, Amazon smartly and automatically spreads your inventory throughout various European fulfillment centers.

Leveraging this system means Amazon houses your items in different European centers, making your products eligible for Prime. For instance, if an order comes from a nearby German customer, it can be promptly dispatched.

When contrasted with the EFN network, your associated costs will be notably reduced, but it does come with a price, in the name of tax ramifications.

To be eligible for Pan-European FBA, a VAT registration in the five main European nations is essential, namely:

• United Kingdom
• Germany
• France
• Spain
• Italy

Before activating the “Join PAN EU” feature, ensure you possess a VAT registration for each of these central countries – you can spend up to £4000. Also, it’s advisable to get advice from a specialist, because the process is hefty with documentation requirements.

Multi-Country Inventory MCI

Amazon’s Multi-Country Inventory (MCI) is a strategic approach for sellers aiming to extend their e-commerce reach internationally. This system enables sellers to stock and vend products across countries, cutting down on shipping costs and ensuring quicker delivery to Amazon Prime members.

Advantages of Amazon MCI include swifter delivery times via Amazon FBA and Prime eligibility.

Moreover, MCI equips sellers with the capability to access new European markets, promoting their listings in countries such as the UK and Germany.

To get started with MCI, simply create listings in the appropriate languages, and Amazon handles the subsequent steps.

Advantages of Employing MCI on Amazon:

• Enhance your Amazon operations
• Monitor inventory across different nations
• Efficiently manage shipments
• Dodge excessive shipping fees
• Decrease product returns
• Foster stronger customer relations

Despite its merits, MCI comes with its set of challenges. A notable concern is that sales might predominantly come from just one nation.

Amazon typically directs orders to a seller’s main country, even if the product garners sales from multiple countries. Nonetheless, many sellers navigate this by diligently monitoring country-specific orders, ensuring optimal fulfillment.

Another consideration for MCI users is proper planning. Without a robust strategy, unexpected complications might arise. For instance, if employing MCI to vend products in various languages, make sure you have a reliable system to translate product details into the respective target languages.

Global review system

Leverage your existing reputation as an Amazon US seller by utilizing the global review system on Amazon EU to boost your credibility and attract more customers.

The global review system allows customers from all over Europe to see and evaluate the quality of your products and services. Positive reviews can greatly increase your sales and make your brand more trustworthy.

So, make sure to encourage your customers to leave feedback and respond promptly to any negative reviews.

Legal obligations

When selling on Amazon Europe, it’s important to understand the legal obligations that come with it. This includes complying with customs regulations, fees, laws, VAT implications, consumer rights, intellectual property rights, and commercial invoice obligations.

By ensuring that you’re aware of and following these legal requirements, you can avoid potential issues and operate your business smoothly in the European market.

Customs regulations, fees, laws

To successfully sell on Amazon Europe, you need to understand the customs regulations, fees, and laws of each country. This will help you avoid any potential pitfalls. Customs regulations vary from country to country, so it’s important to research and comply with the specific requirements of each market.

Also, the things you list on your product detail page may change from country to country. For example, “fiberglass” is considered a brand name in Germany, so any listing containing “fiberglass” is likely not to be published.

Additionally, be aware of any fees or duties that may apply when importing goods into Europe. Understanding the legal landscape will help ensure smooth operations and compliance with local laws.

VAT implications

Understand the impact of VAT on your business and navigate the complex tax landscape in Europe. VAT implications are a crucial aspect of selling on Amazon Europe.

As a seller, you need to be aware of the VAT rates in each country and ensure that you’re registered for VAT. Properly managing VAT payments and compliance is essential to avoid penalties and maintain a successful business in the European market.

It’s advisable to communicate with a specialist for this sort of stuff, but here’s a helpful guide for the meantime.

Consumer rights

Now that you understand the VAT implications of selling on Amazon Europe, let’s dive into the importance of consumer rights.

When selling in the European market, it’s crucial to be aware of the strong consumer protection laws in place. These laws ensure that customers have certain rights, such as the right to return goods within a specified period and the right to receive a refund if a product is faulty.

In fact, 2 years ago, a Norwegian consumer rights group took action against Amazon over the Prime design feature, which they claim “manipulates users into sticking to paid memberships.” The initiative was backed by consumer protection groups in Greece, France, and the USA. More about that in this article from the New York Times.

In short, it’s absolutely essential to understand and adhere to consumer rights. Showing your European customers that you understand where they’re coming from and what’s important to them helps you build trust with your consumer base, and establish a positive reputation for your Amazon business.

Intellectual property rights

Protecting your brand and creativity is essential in the competitive world of e-commerce, and that’s where intellectual property rights come into play.

When selling on Amazon Europe, it’s important to understand and safeguard your intellectual property. This includes trademarks, copyrights, and patents.

Registering your intellectual property can help prevent unauthorized use or infringement by others. Amazon provides tools like Brand Registry to help protect your brand and take action against potential violations. In 2020, Amazon launched the Intellectual Property accelerator to help small and medium-sized enterprises to get trademarked, manage counterfeited goods, and protect their brands further. The program is available for any brand selling on Amazon.

Businesses leveraging the IP Accelerator will gain early access to Amazon’s comprehensive brand protection services, potentially months or even years ahead of their formal trademark issuance. Amazon’s Brand Registry equips SMBs with robust tools to oversee and safeguard their brand and intellectual property within Amazon’s marketplace. The Brand Registry is a complimentary service, with over 350,000 brands registered in 2020 alone. Those enrolled benefit from Amazon’s automated defenses, which utilize brand information to proactively eliminate potential infringements or incorrect content. Furthermore, brands can utilize advanced tools to identify and report potential infringements. They also have more sway over product data showcased on Amazon’s product pages, ensuring customers receive accurate information for informed buying choices.

This report says that small enterprises are less likely to sign up for the IP Accelerator due to lack of awareness – putting themselves at great risk. Don’t be one of them.

Commercial invoice obligations

To ensure a smooth selling experience and avoid any complications, you’ll need to familiarize yourself with the commercial invoice obligations when expanding your business to European marketplaces.

A commercial invoice is a document that provides details about the products being shipped, including their value, quantity, and description. It is required for customs clearance and serves as proof of the transaction.

Make sure to accurately complete and include the commercial invoice with your shipments to comply with European regulations.

Product compliance

Expanding your business to European marketplaces requires ensuring that your products comply with local regulations and standards. It’s important to understand the product compliance requirements specific to each country in which you plan to sell.

This may include safety standards, labeling requirements, and certifications. Conduct thorough research and work with a local expert or consultant to ensure that your products meet all necessary compliance obligations.

Failure to comply could result in legal issues and harm your reputation in the market.

Labeling and marketing laws

Make sure you follow labeling and marketing laws when selling your products in European marketplaces to ensure compliance and avoid any legal issues.

It’s essential to understand the specific requirements for each country you plan to sell in. Ensure that your product labels contain all the necessary information in the local language and meet the safety standards.

Additionally, abide by the marketing laws, including restrictions on claims and advertisements, to maintain a trustworthy and compliant business.

It’s a good idea to localize your product packaging and inserts to comply with local laws, and to make sure the information contained on your physical assets is customized to every culture you sell in. Create the perfect packaging with proper translations – more on that in this blog.

Health, safety, and environmental requirements

Now that you’re aware of the labeling and marketing laws, let’s dive into the next crucial aspect: health, safety, and environmental requirements.

Selling on Amazon Europe requires compliance with the specific regulations of each country. You must ensure that your products meet the necessary standards to protect consumers’ health and safety and minimize environmental impact. Understanding and adhering to these requirements will help you establish trust with your European customers and avoid any legal issues.

Getting set up

To get set up for selling on Amazon Europe, you’ll need to apply for VAT and EORI numbers. These numbers are necessary for selling in Europe and managing tax responsibilities.

Additionally, you’ll need to consider payment options for your European Amazon account, such as using Amazon’s payment services or other online platforms.

Lastly, make sure to price your goods correctly for the European market, taking into account additional fees like VAT, customs, shipping, and fulfillment commissions. Properly pricing your products will help you be competitive and maximize profit on Amazon Europe.

VAT and EORI numbers

Pricing goods correctly and managing VAT payments is crucial when selling on Amazon Europe. To sell in Europe, you need to apply for VAT (Value Added Tax) and EORI (Economic Operator Registration and Identification) numbers.

These numbers are necessary for importing goods into Europe and complying with tax regulations. It is important to hire a local accountant who can help you with VAT registration and ensure that you’re fulfilling your tax obligations in each country you sell in.

Payment options

When it comes to selling on Amazon Europe, you’ll want to consider your payment options to ensure a smooth and convenient transaction process.

Amazon offers payment tools like Amazon Payment, but you can also explore other online apps and platforms for payment processing.

Keep in mind that when pricing your products, you should consider additional costs like VAT, shipping, fulfillment, and customs.

Choosing the right payment option will help you manage your finances effectively and provide a seamless buying experience for your customers.

Price your goods for Amazon Europe

Now let’s talk about pricing your goods for Amazon Europe.

When selling on Amazon Europe, it’s important to consider extra fees such as VAT, customs, outbound shipping, and fulfillment commissions. These additional costs can impact your pricing strategy.

Make sure to accurately calculate and account for these fees to ensure you’re setting the right prices for your products. Proper pricing is crucial for success in the European market.

Localization Considerations

When selling on Amazon Europe, it’s important to consider the differences in buying styles between Americans and Europeans. Conduct new keyword research for each market to ensure your listings are optimized and reaching the right audience.

Localize your listings to avoid confusion and adapt your customer service and external marketing efforts to cater to the preferences of European customers.

American vs. European buying style

The buying style of American customers differs from that of their European counterparts in terms of preferences and shopping habits.

European customers tend to prioritize quality and value over price, while Americans often focus more on competitive pricing and discounts.

Additionally, European customers are more likely to research products and read customer reviews before making a purchase.

Understanding these differences is crucial for American sellers looking to succeed in the European market.

More on that in this blog.

New keyword research per market

Unlock the potential of your European sales by conducting new keyword research tailored to each market’s unique preferences and language. This will allow you to reach and connect with a wider audience of potential customers.

Researching keywords specific to each market will help you optimize your product listings and increase your visibility in search results. By understanding the buying habits and language nuances of each European market, you can effectively target your audience and improve your chances of success.

Many sellers wonder why they’re not converting in new European marketplaces – chances are, they made errors in their keyword localization. Here are the top tips to consider and why new keywords per market are a non-negotiable.

Localize listings to avoid confusion

More than just conducting new keyword research per market, you’ll want to localize the text and images of your product listings as well.

This way, you communicate with every new culture using the idiomatic expressions, pop culture references, and ideas that they subscribe to. You’ll want to use a combination of localization and transcreation to get your message across. This will help you avoid confusion or offense, employ culturally-relevant messaging, and boost emotional engagement. More on that in this blog.

Localize customer service & external marketing efforts

Now for the marketing and promotion of your Amazon business. So much of your success comes from external traffic – so if you’re selling in Germany, you might want to consider employing marketing efforts in German, as well. The idea is to tap into the German market using language that your ideal German customer would use – which is likely quite different from the language that your French, Polish, Spanish, Italian, and American customers use.

The same goes for customer service. You don’t want to answer customer inquiries on your Amazon page in English. Similarly, avoid machine translations to translate your answers – you might inadvertently say something that will cause offense.

Check out these blogs for a good guide on external marketing and customer service localization.

Conclusion

So there you have it, a comprehensive guide to selling on Amazon Europe. Now that you understand the benefits and legal obligations, it’s time to get set up and start expanding your market reach.

Remember to consider localization factors, such as translating your listings and conducting keyword research. And don’t forget about VAT obligations and fulfillment options like FBA programs.

With careful planning and preparation, selling on Amazon Europe can lead to increased sales and success for your business.

Planning to expand, but unsure which Amazon Europe market is the best one for you? Check out YLT’s AMOR report – we take out the guesswork through a data-driven approach!

Happy selling!