You’ve read about the about the benefits of using Amazon Services or outsourcing some of your operations in our previous post. Continue reading to find out what most merchants mistakenly assume when deciding to expand to a foreign Amazon venue.
Read about common misperceptions Amazon sellers have about international expansion.
The seven most common misperceptions about international expansion on Amazon are:
- Regular sales abroad are a sign of great sales to come.
Sellers believe that constant sales on other venues indicate a great demand for the product. So, listing in foreign markets is bound to bring sales and profits many times over. What sellers usually forget is that once local VAT charges are applied and reflected into the price of the item sold on the foreign marketplace, customers may choose cheaper options.
If you’ve already sent your products to FBA, you’re also faced with the issue of covering return costs. That’s why the price calculation samples that some third-party expansion experts can provide are so important.
- It’s better to expand to Amazon Canada or UK first.
Most sellers seem to think that Amazon UK and Canada are the most interesting options when it comes to expanding internationally, because they have the largest inventories after Amazon.com, and the transition for customer support representatives is the easiest. However, they may find that their best-selling items are sought-after in Japan, not in Europe. Or that the level of taxes they’d pay in the UK is higher than elsewhere in Europe. Only an in-depth market analysis will tell.
- The sooner you list, the better.
If you’re creating new catalog pages for these foreign products, translating your product listings properly is of the utmost importance. It’s not just about writing in the native speech and overcoming language barriers, but also about speaking to customers in a way that they can relate to, and one which inspires familiarity and trust. Your product descriptions and condition notes all need to reflect this for maximum appeal and visibility.
- The more new venues, the merrier.
It’s important to focus on one market at a time, and not get ahead of yourself trying to move inventory around and cover several selling opportunities at once. You will only know where and how much you sell once you start selling, so give it time.
- Amazon’s services are paid.
Qualifying sellers receive invitations from Amazon Services to join certain venues and pay the merchant fees associated with the new account. However, the Business Development team handling the transition does not charge.
- You can count on Amazon Services to deal with all your questions and issues.
If you set up your account on a foreign venue and enlist the help of a Business Development expert, then the moment your listings are up, you’ll need to find answers to your questions elsewhere. We find that sellers are overwhelmed with issues like VAT being charged on Amazon’s commission, or to difficulties using the European Fulfillment Network.
- Customer communication is not an issue for foreign FBA sales.
If you use Amazon fulfillment on your foreign account, you may find that the workload for customer support is far lighter than with FBM. Still, you need someone who is either a native or a fluent speaker of the local language to tend to customer issues, few as they may be on FBA. In fact, one of Amazon’s basic requirements is that you provide email and phone support in the local dialect.
For more on what international expansion could mean for you, check out SellerEngine’s service package and download the free Global Selling eBook.
Irina is part of the Business Development Team at SellerEngine Software. She’s an expert in bringing back to life Amazon Selling Accounts. Her motto is: everything will be alright in the end, and if it’s not alright, then it’s not the end.