Expanding on Amazon: The Importance of Due Diligence and Choosing the Right Market

Mar 23, 2023



Expanding to new markets? It can be both exciting and nerve-wracking. Think about it. The potential for increased sales and exposure is great. What other markets out there can you reach? Who else can you serve? Which households will enjoy your product? Nevertheless, it’s terrifying. The risks of failure and wasted time and resources are enough to set any ambitions on the back burner. That’s why it’s crucial to make smart choices. Don’t expand to every single market out there. And do your due diligence first! Many brands expand without a plan, not knowing if their product will be a good fit or not. The result is wasted time, energy, and resources. Take the guesswork out by doing your due diligence – here’s how.

Risks of expanding to a new market without doing due diligence

One of the biggest mistakes Amazon sellers make is assuming that their product will do well in a new market simply because it does well in their home market. For example, if your product is a hit in the US, you might assume it will be just as popular in Japan. However, cultural differences and preferences can make or break your product in a new market. In Japan, for example, consumers are known for being very selective about the products they buy. Either they really like it, or they really hate it. Without doing proper market research, you could be wasting your time and money on a market that will not generate the returns you expect.

This is a rather common mistake. Sellers get caught up in the excitement of expansion, and choose a country per continent – amazon.ae, Amazon Japan, Amazon Mexico, and Amazon UK or Amazon Germany. Whereas these are all fantastic and viable markets to expand to, you absolutely must check the market first. Don’t rush head-first into expansion without seeing if these markets – albeit healthy – are ready for your product in the first place.

Which market to expand to?

Now that you know the risks of randomly expanding to a new culture, it’s time to consider which culture to expand to. Many sellers expand to Amazon UK simply because it’s another English-speaking market, but they don’t consider Amazon Germany, Amazon Japan, or Amazon.ae, which also have big potential. It’s crucial to look at sales data and trends in each market, as well as the competition, before deciding where to expand. Your sales might be better elsewhere, so it’s important not to limit yourself to English-speaking markets.

That said – let’s say the UK market is absolutely the best place for your product. Don’t make the mistake of copy-pasting your US keywords into your UK listing. For example – don’t use “diapers” when selling baby diapers in the UK, because you’ll be targeting senior citizens; “diapers” refers to adult diapers. “Nappies” is the correct keyword to use. Which brings us to our next point…

Who is your target market?

Another important factor to consider before expanding to a new market is who your target audience is. You might assume that you’re selling to the same demographic as on Amazon.com, but that age and gender might not be interested in your product in a new market. This is where market research comes in. By doing your due diligence, you can identify your new customer and tailor your marketing efforts to appeal to them. For example, something sold to little girls in the USA might be considered “kawaii” in Japan, and be bought by adult women. Cultural differences are so important to consider.

Also consider the customer journey. Not all cultures want to be sold to the way Americans want to be sold to. Americans prefer an emotional approach to selling. They’re interested in images that feature the lifestyle you’d achieve through the product. Consider it suggestive selling or aspirational marketing; US listings feature the subtle implication that your life would be improved by the purchase of this product. That approach does great on US soil because that’s the American customer journey. Germans, for example, have a very different approach. They prize quality and product features over aspirations and inspirational messages. They don’t want to hear that your product is the best; they want to come to that conclusion on their own.

In other words, before you’ve decided on a country to expand to, get to know your new customer base first, and gauge the best way to communicate with them – and if they’re even the right target market for your product, to begin with.

Take the guesswork out of your Amazon expansion with YLT Translations’ AMOR service

Expanding to a new market can be a complex and time-consuming process, especially if you’re not familiar with the language, keywords, people, and culture. That’s where YLT Translations’ AMOR service comes in. Our team of experienced translators and researchers can help you navigate the complexities of a new market and make data-driven decisions based on market research. We can provide you with valuable insights into your target audience, as well as help you optimize your product listings and marketing efforts for maximum impact.

Frankly, expanding to a new market without doing due diligence can be a costly and time-consuming mistake for Amazon sellers. By considering the risks of expanding without a plan, choosing the right market, and identifying your target audience, you can increase your chances of success. And if you need help navigating a new market, YLT Translations’ AMOR service can provide you with the insights and support you need to make data-driven decisions. You’ve made the right decision by choosing to expand; now, make sure you make the right decisions, and save valuable time and resources, by heightening the probability of success even before you start budgeting for your expansion.

Good luck; we’re here for you! Head on over to https://ylt-translations.com/amor/ to reach out. The world is, quite literally, your oyster; let’s find out which country is dying to experience your product first, shall we?