Did you know that Amazon has more than 100 million Prime members from 180 countries?
However, there are only four Amazon marketplaces that you need to be familiar with in order to start a life-changing Amazon business.
When you first begin selling on Amazon, the first decision you must make is where to begin. It might appear intimidating. Because Amazon does not simply divide their sales by country. Instead, they've created what they call marketplaces, which serve customers in a variety of countries (180 to be exact).
There are 12 different Amazon marketplaces to choose from, but we recommend starting with one of four. And here's why: The reason for this is that these four have the most customers.
Every seller central layout is little different for each market place.
Those four marketplaces are as under.
1. Amazon.com (United State)
2. Amazon.co.uk (United Kingdom)
3. Amazon.de (Germany)
4. Amazon.co.jp (Japan)
How do you pick the right one? Well, read this blog you will end up on market selection.
There are 17 Market Places in the world.
1. United State 66%
2. Germany 11%
3. United Kingdom 8%
4. Japan 8%
5. Others all market have 7% market share.
If you are selling only in the U.S. market and not Europe, you are missing out a significant opportunity in the Amazon Europe marketplace.
You can make an Amazon account from Pakistan Passport for Europe countries.
I also recommend you in start go with the Europe Market. Why Europe, because Europe is neither very competitive and nor very low in revenue like new market places.
You can also source the products from Europe and sell them there as your private label brand unless, you can’t find the good opportunity regarding sourcing from China or Pakistan.
There is very good opportunity in Europe for Pakistanis.
But if you are the manufacturer and have good amount in hand then you can go in start with the US market.
Market Shares of the Europe countries are below listed.
1. Amazon.de Germany 11%
2. Amazon.co.uk United Kingdom 8%
3. Amazon.it Italy 1%
4. Amazon.es Spain 1%
5. Amazon.nl Netherlands 0.5%
6. Amazon.fr France 0.5%
7. Amazon.se Sweden
The number of European marketplaces is increasing all the time, and Amazon is expanding into more countries.
Remember that Germany has a population of 83 million people, while the United Kingdom, France, and Italy each have 60-65 million, and Spain has only 46 million. So, with a 22 percent share of the total European market, this will be the second largest and "richest" market. Private labelling has a lot of potential in Europe.
You can look at the product listings and images for the United Kingdom and Germany. Many of the products have only one image and a simple listing. However, if you look at their monthly sales, you'll notice that even though they have poor listings and images, they have a lot of sales and revenue. Why? Because it isn't as competitive as other markets.
To summaries, you can easily differentiate yourself with a good listing and beautiful photos at this point to get in the game.
Another point worth mentioning is that once your products are in a 3PL in the UK, there are many good opportunities to sell them. You can also ship them directly to these businesses without the need for a middleman.
It does not appeal to many sellers, primarily due to the language barrier. German is a difficult language to learn. Once you've figured that out, there's no end to the possibilities. What you'll find on amazon.de will astound you.
You can't sell a low-quality product in Germany.
However, if you put together a great product, clearly explain what it does and how it can help them, show them what it does and how it works in photos, and provide decent (at least adequate) customer service, you'll see miracles happen.
True, Germans take great pride in their culture, traditions, and language. As a result, make sure your packaging includes German writing, as well as translated instructions. In fact, these details are critical in any country where you plan to sell. Europeans are extremely proud of their history and culture, and your product will always outperform a competitor's product that only shows English (or Chinese).
Those who are enamored with PPC but do not sell in Europe will be pleasantly surprised. You can get sales at CPCs as low as 0.2 and 0.4 in Europe and have campaigns perform extremely well.
This is due to the fact that there aren't as many knowledgeable sellers as there are in the United States. By far, it is far easier to advertise and achieve extraordinary results.
Another thing to consider is the distinction between American and British English.
For instance, you could say
“Soccer” in the US, but in Europe you need to say “football”
“Candy” in the US, “sweets” in Europe
“Closet” in the US, “wardrobe” in Europe
“Diaper” in the US, “nappy” in UK
“Crib” in the US, “cot” in UK
And there are plenty more. These are all fundamentals, but they can significantly improve your listing and indexing.
After you set up your selling account for Europe, you can still start selling in any or all of these marketplaces.
Fortunately, doing is so simple and can be done from your existing seller account; simply submit a request to amazon, provide all requested information and documents, and wait for approval. You'll be able to manage all of your marketplace accounts from a single seller account, which is fantastic!
For many Amazon sellers, the next step is a challenge... and only a few people get it right.
The VAT – Value Added Tax – is an additional TAX (included in the product price) in all EU marketplaces.
1. 20% in the UK
2. 19% in Germany
3. 20% in France
4. 22% in Italy
5. 21% in Spain
6. 21% in the Netherlands
7. 25% in Sweden
This must be collected and paid in the country in which you do FBA, not the country in which you sell, because you can send your inventory to the UK in FBA but sell on all existing marketplaces. Amazon will ship orders from your UK FBA inventory all over Europe. Isn't this fantastic?
For starters, I recommend keeping the FBA in Germany. At least until you've grown to the point where you can afford to hire a different company in France to handle everything, and so on.
What I'm trying to say with this story is that these taxes are critical (need to be paid). Remember that Amazon has access to all of your personal information and will provide it if requested in order for the Fiscal Institutions to receive their share of the pot.
However, you should be aware of Amazon's restrictions, which state that you can only keep your FBA inventory in one of the countries, sell in all seven, and pay VAT only in one (the first, where the products are located), subject to certain restrictions.
Seller Central is where you'll find all of this information.
Take this into consideration. Finding a single company to manage all of the countries and handle all of the rules and regulations is extremely difficult. Each European country has its own set of rules that must be adhered to. As a result, when you begin selling in the EU, you must keep this in mind!
If you decide to use FBA in multiple marketplaces, you may be able to find a company that will handle all of the accounting and paperwork for you, but even these services are prone to errors. They may also demand exorbitant fees.
When imported into the EU, all products with a purchase value of less than 22 Euros are exempt from customs taxes and VAT. This is a per expedition, and it is currently taking place.
For example, there are many sellers who ship directly from Asia (FBM), There are no taxes, no fees, nothing. The 22 Euro Rule applies to them. The rest of us, on the other hand, are responsible for paying taxes.
When imported into the EU, all products, regardless of value, will be held in customs for inspection and will be subject to customs duties and VAT.
This is not a minor issue because the time it takes for products to reach Amazon will significantly increase, and the additional fees will be reflected in the price. No one will be able to enter the EU without paying taxes and VAT.
This will be a significant benefit for sellers who already have inventory in the EU or have found suppliers for their products in the EU. All of the others will experience significant delays and will be forced to pay money out of their own pockets in order to play fairly!
Others market places have low market share so, rather we do private label on there we can do drop shipping. Because, it’s not risky and we can do that in the small market places. We don’t want to invest on small market places, where we don’t get customers to buy our product.
Always invest on that site where we can see the numbers before, we going on any market. Never invest on any market which is being develop.
You can invest depend on your budget min in those markets
$20k for USA
$15k for UK
$10k for Canada
$5k for Australia, France, Italy
You can do PL in both USA and UK
Both markets are good for PL
But the thing is that UK Market is less competitive and need less budget
And USA is bigger and more competitive and you need lot of budgets in ranking as well.
Well, it depends on your budget and mindset. If you are willing to invest more so, you'll get more revenues as like your input.
The US is suitable market.
But if you want to start with not much investment so, Europe is 2nd largest market place.