Mark Brohan, the Director of Research for Internet Retailer has been posting some great articles on international e-commerce. A Tale of Two Continents is about Europe and the European Union and The European e-commerce sun also rises for U.S. web merchants is great, too!
Today we’ll be taking a closer look at these articles and seeing what they mean for you as Amazon sellers.
The Biggest E-commerce Market
You might not realize this, but Europe as a whole (made up of 45 countries, 27 of whom make up the European Union) is the largest e-commerce market in the world.
In 2012, European e-commerce was estimated at $302.20 billion, compared to $225.54 billion for the United States.
If you’re selling on only Amazon.com, you’re falling behind.
Cross-Border Trade
This amazed me. Of that $302 billion in e-commerce sales, only 9% take place across national borders. This means that Italians aren’t buying from Amazon.co.uk and the French aren’t buying from Amazon.de.
Customers want to buy from websites specific to their location. Look at this graph showing how quickly Italian customers took to Amazon.it after it launched and how quickly they left Amazon.co.uk and other marketplaces to shop at home.
This proves the point that we’ve made in the past: It isn’t just enough to be selling on one international marketplace. You need to be on as many as possible in order to reach the most customers. Otherwise, you’re just leaving money on the table.
Regional Growth: Italy & Spain
While e-commerce in France, Germany and the United Kingdom grew by nearly 17% in 2012, sales in Italy, Portugal and Spain shot up by over 26%!
It’s no coincidence that Amazon just opened marketplaces in Italy and Spain in the past few years. Amazon realized that those markets were ready for their own e-commerce shopping sites and the results have been staggering.
Now’s the time to get on board and take advantage of sales in these growing markets.
Overall Amazon Growth
Amazon increased its European sales by nearly 20% to over $16 billion in 2012. And this is in the face of competition of from more traditional European chains, including Tesco and Otto. Amazon’s growth should make you realize that there’s money to be made selling in Europe.
Your Next Steps
If you’re ready to start selling globally today here’s what you should do:
- Pick a venue to start with. For most US-based Amazon Sellers, Amazon.co.uk will be the logical choice, due to the lack of a language barrier and an established marketplace.
- Learn your responsibilities with regards to VAT and taxes. These will vary from country to country, and if you have questions, email us!
- Create your account, set up a bank account and start selling!
If you want to know more about why selling internationally is important, subscribe to the SellerEngine Newsletter. Every week we’ll send out the results of that we’ve conducted into Amazon’s worldwide presence. Later this week, we’ll be talking about the BRIC countries (Brazil, Russia, India and China) and Amazon’s strategy for reaching those growing markets.