Expanding your Amazon business to other countries can seem overwhelming, but it can also be incredibly profitable. The potential for growth and revenue can be substantial, and missing out on emerging markets can hinder your business’s potential. In fact, given today’s business landscape, expanding your Amazon business to other countries – in other words, diversifying your business – is crucial to reduce risk and increase opportunities for growth and revenue. Furthermore, you can tap into new revenue streams and expand your customer base. There might be a customer somewhere across the world that will fall in love with your product!
However, many sellers make the huge mistake of sticking to familiar markets. It’s easy to get caught up in the English-speaking markets like the US and the UK. However, ignoring the potential of emerging markets such as Germany, France, and Spain could mean missing out on a significant revenue stream. As you consider expansion into new markets, it’s essential to evaluate and understand the cultural nuances and regulations unique to each market.
Expanding to the Germany Marketplace
The German marketplace, referred to as the “5 star marketplace,” services countries that don’t have Amazon marketplaces of their own. This includes countries like Austria and Switzerland. By selling on the German marketplace, sellers can access a vast pool of customers from neighboring countries who may not have access to an Amazon marketplace of their own. Many sellers avoid Germany and prioritize the UK instead – which is a fantastic marketplace for sure, but not as large as Germany.
One seller’s sales for a portable air conditioner weren’t too high in the USA. He was rather surprised to see his sales skyrocket in Germany – which wasn’t prepared for the onset of global warming, and didn’t come with ways to combat excessive heat. If he’d stuck to English-speaking markets, he wouldn’t have discovered this success!
Expanding to the French Marketplace
The French marketplace is another emerging market to consider. It has a population of 65 million, and is the 3rd largest marketplace in Europe. It services France, Belgium, Luxembourg, and Switzerland. By selling on the French marketplace, sellers gain access to a customer base that prefers products in their native language. This preference for the French language extends beyond France, as French is the second-most-spoken language in Europe.
Many sellers assume that the sophisticated and discerning French consumer prefers to buy French products. If Samsung bought into this belief, it never would’ve become the top-selling electronics brand in France. Effective localization, by appealing to the distinct French culture, will help your brand do well in France.
Expanding to the Spanish Marketplace
Spain is another emerging market with significant potential for growth. The Spanish Amazon marketplace services Spain, Portugal, and Andorra. It offers an excellent opportunity for sellers to expand into a market with a unique culture and language. As with any new market, sellers should research and understand the market’s unique regulations, customs, and culture.
One seller was making a killing with his wooden wine rack in Spain. He had such a strong following that in a year, he had amassed enough profit to pour into US expansion. He was so confused – the Americans didn’t like his wine rack as much as his countrymen did! It just goes to show; even when localizing from a European market to the larger American one, due diligence and localization are still key.
Which Market to Expand To?
Expanding into new markets is not without its challenges. Many sellers make the huge mistake of bringing their English keywords through machine translation in an effort to save costs; oftentimes, the result contains keywords that are totally useless for the new market, and language that is misunderstood – and sometimes even offensive.
Furthermore, each market has its own unique set of regulations, laws, and customs. As such, it’s essential to research and understand the potential risks and opportunities associated with each market. In addition, it’s essential to understand the cultural nuances and adapt marketing strategies accordingly. This way, sellers can build trust and credibility with local customers, which can help increase sales and grow their business.
Expanding into new markets requires a comprehensive approach, including research, understanding cultural nuances, evaluating competition, and considering logistics and infrastructure. Take the time to research and understand potential new markets – yes, even emerging ones. You’ll avoid costly mistakes and increase your chance of success. By exploring emerging markets, sellers can tap into new revenue streams and grow their Amazon business beyond their existing customer base.
Who knows, you might even be surprised by what you’ll find. You might discover an all-new customer base that you never considered before.
It’s a big wide world out there; it quite literally is your oyster!