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How to Sell on Amazon Marketplaces and Why You Should Consider It

By Bubuy Balangue | 28 May 2022 | 11 mins read

How to Sell on Amazon Marketplaces and Why You Should Consider It

Amazon operates 19 marketplaces worldwide, each of which allows third-party merchants to list and sell items. Amazon provides approximately 350 million items through these marketplaces.

How can you sell internationally on Amazon’s marketplaces?

Except for a handful of Amazon’s marketplaces, buyers may locate and purchase various goods from electronic books to kitchenware to appliances. Amazon sends the item to the consumer via its fulfillment network following a purchase.

While Amazon offers a number of their products (for example, the Echo and Kindle), most items on the site are offered by first- or third-party suppliers.

With first-party merchants, Amazon acquires goods wholesale from the vendor and resells them.

On the other hand, third-party suppliers have two ways to sell on Amazon.

Fulfillment by Amazon (FBA) sellers store their products in Amazon’s fulfillment centers and market their products on the Amazon platform. When a transaction occurs, Amazon picks, packs, and ships the product on the seller’s behalf.

Sellers that use Fulfillment by Merchant (FBM) display their items on Amazon but store and ship their own merchandise.

You should consider expanding to other marketplaces after you’ve mastered the following:

How to Sell on Amazon Marketplaces and Why You Should Consider It
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What are the characteristics of all Amazon marketplaces?

The Jungle Scout team surveyed thousands of Amazon sellers globally to learn about their Amazon selling experiences for the “2021 State of the Amazon Seller Report.” And while many of the world’s markets exhibit dramatic variances, they also have some surprising similarities.

54% of all sellers polled had sold within the last two years. Saudi Arabia’s marketplace, in particular, has a high proportion of new merchants, with 92% of respondents selling for less than two years.

In comparison, Japan has the greatest proportion of seasoned sellers. 17% reported selling for five years or longer.

Worldwide, Fulfillment by Amazon (FBA) is the favored way of selling.

Almost half of all sellers across all marketplaces favor the private label business model above any other. Private label is a term that refers to the process of creating and rebranding current items in order to sell them on Amazon.

At least 37% of all Amazon sellers surveyed, regardless of the marketplace, sell items in Amazon’s Home & Kitchen category.

Turkey is the sole exception to this trend, with Beauty & Personal Care being an equally popular sector to trade-in.

At least 57% of respondents across all marketplaces said that they would prioritize improving their product listings in 2021. And 66% of respondents indicated that they are concentrating their efforts on product development.

At least 50% of respondents across all marketplaces stated that their primary issue is finding a product to sell on Amazon.

The second most significant problem identified by vendors was obtaining help from Amazon or adjusting to Amazon-related changes.

Top 10 Amazon Marketplaces in the World

Amazon North America

Amazon North America is comprised of three subsidiaries: the United States (amazon.com), Canada (amazon.ca), and Mexico (amazon.mx). 

Through an Amazon Unified Account, you may sell on all three marketplaces. In contrast to other areas, a Unified Account enables you to manage listings and inventory across all three North American marketplaces. 

Create a listing on one of the three markets, and it will display on the remaining two. The drop-down option at the top of your Seller Central dashboard allows you to switch between marketplaces. It is unnecessary to maintain accounts in each North American marketplace. If you do, each of them will have their own Unified Account, which will complicate matters.

You may customize your listings and prices for each marketplace, as each marketplace’s listings are unique.

US: Amazon.com 

Amazon.com was the first Amazon marketplace in the United States, having been founded in 1994 as a bookselling platform. It is the most established marketplace in terms of vendor count and traffic. Amazon.com was the first marketplace to provide all of Amazon’s advertising offerings, and it’s an excellent spot for any new seller or brand owner to get started. The primary disadvantage is that it is extremely competitive, and reaching the first page might be challenging if you are not a known seller.

Canada: Amazon.ca 

While Amazon’s Canadian marketplace is smaller than the.com marketplace, it is frequently the natural next step for a seller or brand owner who sells only on the US marketplace. Canada has around 10% of the population of the United States, but the marketplace is far less competitive than Amazon.com. If you register to sell on Amazon.ca, you will be responsible for importing merchandise, but through the North American Remote Fulfillment service, products are transported directly to Canada from the United States. While others argue that you may earn more money by exporting products to Canada, the convenience of Amazon handling shipping, taxes, and tariffs make NARF an obvious decision for many firms.

Mexico: Amazon.mx 

While a NARF account allows consumers in Canada and Mexico to view your listings, many shoppers prefer to purchase directly from the marketplace. It’s undoubtedly simpler to manage your Mexico listings from your North American unified account, and because the listing copy may be changed, you can even convert it into Spanish. Ascertain that you are utilizing competent translation services. Google Translate is insufficient. Another advantage of having a genuine Amazon.mx account is the ability to ship things directly to FBA in Mexico, which eliminates delays and damaged deliveries. 

How to Sell on Amazon Marketplaces and Why You Should Consider It

Amazon Europe

Prior to January 1, 2021, Amazon.co.uk was a member of Amazon’s Pan-European initiative, which allowed sellers and brand owners to sell across all EU marketplaces while holding their inventory in a single nation — and many vendors and brand owners picked the UK. 

Due to the fact that the Amazon UK marketplace separated from the European Union following Brexit, the UK is technically not a member of Amazon Europe, which we will cover further down the post. The remainder of Europe may be fulfilled by a single EU nation. 

However, Amazon encourages maintaining a unified account, and many experts advise just splitting your inventory between the UK and another EU country. To sell in EU nations, you’ll need a European VAT, and determining where to obtain your VAT is a matter for another discussion. Consider the European markets and the prospects that exist there.

Germany: Amazon.de 

Amazon’s marketplace in Germany began operations in 1998 and is one of the largest in Europe. German buyers are accustomed to the way Americans promote and communicate, but bear in mind that your items must be labeled and instructed in German. While Amazon.de was one of the first markets to which companies expanded, competition remains low, and demand is high. Over 80% of Germans use Amazon to make purchases. Bear in mind that German customers dislike flowery marketing language and listings. Therefore utilize expert translation services with native German speakers to translate and localize your listings successfully.

Italy: Amazon.it 

Amazon’s Italian marketplace, launched in 2010, is smaller than others, yet there is a significant possibility for items created in Italy. Indeed, it has its own “Made in Italy” marketplace. Naturally, listings must be translated into Italian. A few points to keep in mind — Italian internet buyers are notoriously sluggish to make purchases, preferring to use a wishlist or even their shopping cart to examine products and decide whether to purchase. They are, however, patient and do not demand lightning-fast shipment as long as it is free or extremely inexpensive.

Spain: Amazon.es 

Amazon’s Spanish marketplace began in 2011 and is quite tiny in comparison to other Amazon marketplaces. Additionally, Spain’s VAT registration process is reputed to be the most onerous of any European market. Spanish culture is highly regionalized, and you should make an effort to become familiar with the customs of the various regions of Spain before traveling there. Translations of listings should be made into Spanish. As of 2019, fashion was the most popular category of online buying in Spain, in contrast to the majority of European markets, where consumer electronics are the most popular category.

France: Amazon.fr 

Amazon’s French marketplace, launched in 2000, is the third largest in Europe, behind the United Kingdom and Germany. All listings, labeling, and packaging must be in French, and French consumers are extremely picky. Conducting research on French purchasing habits and hyper localizing your items are the only ways to succeed on Amazon.fr. Belgian consumers may purchase on Amazon.fr.

Netherlands: Amazon.nl 

Amazon Netherlands began in 2014, originally selling Kindle devices and ebooks solely. In March 2020, a larger Amazon marketplace launched, freeing consumers in the Netherlands from their reliance on Amazon.de. On Amazon.nl, there is less competition, and many experts advocate beginning in the Netherlands, despite the smaller volume, because pan-European delivery may be easier in the less congested market. Translations of listings should be made into Dutch.

Sweden: Amazon.se 

Amazon launched its Swedish marketplace in 2020 to a populace that was already technologically literate. Along with the country’s thriving economy, a newly “fully connected Sweden” made it an obvious candidate for a new Amazon marketplace. Fashion and consumer electronics are the most popular categories in Sweden, and listings must be translated accordingly.

Poland: Amazon.pl 

Amazon’s Polish marketplace, which launched in March 2021, holds a lot of potential for cross-border retailers. Fashion companies typically perform very well on Amazon.pl. Polish customers want inexpensive delivery costs, free returns, competitive pricing, and promotional discounts. Naturally, listings should be translated, even if many Polish consumers purchased on Amazon.de previous to the Polish marketplace’s introduction. Bear in mind that Poland has a more established eCommerce marketplace named Allegro, as well as another marketplace called Ceneo, which you should examine before to opening your Amazon.pl business. Take note that, while Poland is a member of the European Union, its currency is the Polish Zloty.

Turkey: Amazon.tr 

Amazon established its Turkish marketplace in 2018. Customers could shop on a translated version of Amazon.de prior to the establishment of Amazon Turkey. Prior to starting on Amazon.tr, it is critical to conduct thorough research. We discovered during a webinar with Jana from YLT Translations that along with the typical Home and Kitchen and Consumer Electronics categories, Shoes and Clothes and Personal Care/Cosmetics are hot categories. Additionally, Turkish customers prefer to buy on desktop computers or tablets, so optimizing for that experience rather than mobile is prudent.

That concludes the EU, but what about the United Kingdom?

How to Sell on Amazon Marketplaces and Why You Should Consider It

United Kingdom: Amazon.co.uk 

Due to Brexit, the UK is no longer a member of the EU and hence is not a part of Amazon’s Pan-EU marketplace, in contrast to the several previous marketplaces we mentioned. This shook up the marketplace significantly since it affected a huge number of cross-border merchants and brand owners who were selling throughout the EU and completing orders from the UK, the main European Amazon marketplace.

Sellers and brand owners cannot use Amazon’s FBA warehouse operations in the United Kingdom to store items for international sales, making a dedicated.co.uk presence vital. This necessitated the establishment of a separate VAT register in the United Kingdom.

One of the primary advantages of Amazon.co.uk is that you are not required to convert your listings into another language; nevertheless, you may choose to adjust them somewhat depending on your study of UK purchasing habits. As of 2019, about 90% of UK consumers utilized Amazon, which means that if you optimize your listings and run the appropriate advertising, you may be quite successful there.

How to Sell on Amazon Marketplaces and Why You Should Consider It

Middle East Amazon

Until Amazon opted to establish a presence in the Middle East, the favored e-commerce marketplace was Souq.com. In 2017, Amazon purchased Souq and began establishing markets in the United Arab Emirates, Saudi Arabia, and, most recently, Egypt. According to Amazon, firms that use FBA in the Middle East can feature in the International Brand Pavilion, which the company describes as a “dedicated storefront to assist worldwide brand owners in marketing, selling, and delivering creative items to Amazon consumers. In the Middle East.” Consider the markets of the Middle East.

United Arab Emirates: Amazon.ae 

There are no language hurdles in the Amazon marketplace in the United Arab Emirates. There is no need to translate your listings. Amazon.ae, which launched in 2019, is mostly focused on consumer electronics, although many luxury companies thrive there due to the country’s wealthy populace. There are already a large number of vendors on Amazon.ae, making brand protection all the more critical in this rapidly increasing marketplace.

Saudi Arabia: Amazon.sa 

Amazon’s Saudi Arabian marketplace, which launched in 2020, is a renamed version of Souq.com. Saudi Arabia is one of the twenty wealthiest nations in the world in terms of purchasing power and has a high rate of internet use. The site is bilingual in Arabic and English, which means you may post English ads and use Seller Central in any language. However, it is prudent to convert your listings into Arabic. Individuals who had previously sold on Souq were able to transfer their accounts to Amazon.

Egypt: Amazon.eg 

Amazon.eg began as Amazon’s twenty-first worldwide marketplace on September 1, 2021. As Souq’s final local business, merchants were allowed to sign up for an Amazon.eg account using their Souq credentials. Amazon Egypt first operated FBA in a limited market without Prime. Amazon Egypt is a smaller market, battling with Noom and Jumia, but analysts are confident Amazon will win the market.

Advantages to Selling in the US Amazon Market

Amazon United States is Amazon’s largest marketplace.

Amazon’s United States website (Amazon.com) is the world’s largest e-commerce site. Amazon.com receives roughly three times the monthly traffic of eBay, the second largest worldwide e-commerce site.

Additionally, Amazon’s website in the United States has the following benefits over its overseas counterparts:

An Easier Way to Sell in the US versus EU

The unified European Amazon network is the only other Amazon marketplace that comes close to the scale of Amazon.com. However, EU still has a few more hurdles to clear before you can begin selling on their site.

For example, merchants in the European Union must account for Value Added Tax (VAT). In the United States, merchants collect sales tax from customers, which is imposed when a transaction is completed.

However, in the European Union, merchants are required to include VAT earlier in the supply chain. As an additional cost of goods supplied, this complicates the process of pricing products competitively in the EU.

Additionally, items marketed in the EU must cater to a broader audience than English speakers. In the United States, the majority of retailers list their items only in English.

By contrast, the EU has markets in Spain, Germany, France, Italy, the Netherlands, and the United Kingdom. This requires them to make their items and listings legible in up to six different languages. (Of course, supporting a greater range of languages is more inclusive and may help you attract new and diverse consumers; it simply takes a little more time and work.)

While Fulfillment By Amazon is available in all countries with an Amazon marketplace, it’s worth noting the ease it provides to foreign vendors.

Without FBA, foreign merchants would either have to ship their own items internationally to their consumers or locate third-party fulfillment solutions, which can be extremely costly and time-consuming.

A merchant may easily begin selling on the Amazon United States with minimal barriers.

There are low entrance hurdles to selling on Amazon. Indeed, 54% of merchants on the Amazon US marketplace were up and operating in less than three months.

Additionally, 64% of Amazon sellers in the United States made a profit in less than a year.

How to Sell on Amazon Marketplaces and Why You Should Consider It

Takeaway

There you have it! All the major Amazon marketplaces that you can explore as well as detailed information on how to start selling in different parts of the world. Read more of our articles to understand more about anything and everything Amazon.

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